Legislature(2023 - 2024)SENATE FINANCE 532
02/20/2023 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB40 || SB41 || SB42 || SB54 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 40 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
| += | SB 42 | TELECONFERENCED | |
| += | SB 54 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 40
"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."
SENATE BILL NO. 41
"An Act making appropriations, including capital
appropriations and other appropriations; making
supplemental appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
SENATE BILL NO. 42
"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."
SENATE BILL NO. 54
"An Act making supplemental appropriations,
reappropriations, and other appropriations; amending
appropriations; capitalizing funds; and providing for
an effective date."
9:02:40 AM
Co-Chair Stedman noted that there were some cases of COVID-
19 within the building, and encouraged people to get a test
for the virus, and follow individual office or committee
mitigation recommendations.
9:02:53 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, discussed the presentation, "State
of Alaska; Office of Management and Budget; Amended Budget
SB40, SB41, SB42 and SB54; Senate Finance Committee;
February 20, 2023" (copy on file). He looked at slide 2,
"FY2024 Amended Budget Overview."
9:05:08 AM
Mr. Steininger pointed to slide 3, "FY2023 and FY2024
Fiscal Summary Update."
Co-Chair Stedman queried the significance of the K-12
education forward funding deposit.
Mr. Steininger replied that any surplus up to $1.2 billion
would be deposited into the K-12 fund in order to forward
pay for K-12 education for the formula distributions to
school districts. He stated that at the time the budget was
signed, there was an estimated surplus of about $2 billion,
so there was an estimated deposit of $1.2 billion in the
fund. He explained, however, that due to the reduced price
of oil the $2 billion surplus has "effectively evaporated."
Co-Chair Stedman surmised that if the number went to zero
or less than zero, there would be a supplemental needed to
cover the costs.
Mr. Steininger replied that there was a small mechanism in
the FY 23 budget that created more of a buffer if oil
prices were to further decrease. He stated that the budget
included access to the statutory budget reserve (SBR) of
$20 million. He remarked that $20 million was not much in
terms of the volatility of oil.
Co-Chair Stedman surmised that a dollar change in oil was
approximately $70 million.
Co-Chair Hoffman wondered what other revenue sources could
be used besides the CBR the department has under
consideration.
Mr. Steininger replied that there would be an examination
of the existing appropriations in the agencies that could
be considered unnecessary.
9:10:06 AM
Senator Bishop wondered whether $120 million was available
for cash flow.
Mr. Steininger replied that the number was correct without
the proposed supplemental requests of $114 million.
Co-Chair Stedman surmised that that the prediction was
adjusted for less than $2 in oil price.
Mr. Steininger agreed.
Co-Chair Stedman felt that the state was "at the tipping
point for all practical purposes."
Mr. Steininger addressed slide 4, "Administration Legal
and Advocacy Services":
Office of Public Advocacy:
• Contractor Rate and Cap Increase
• Increase Capacity for Public Guardian Program
Public Defender Agency:
• One-time Backlog Contractor Support
• A Training Director to Improve Recruitment and
Retention
• Serious Felony Caseload Stabilization
Co-Chair Stedman queried the definition of a "fast track
supplemental".
Mr. Steininger replied that it was a colloquial term for a
supplemental appropriation bill that would be considered
significantly more urgent that other supplemental budget
items.
9:15:10 AM
Co-Chair Stedman stressed that the committee was hesitant
to add another appropriation bill without an agreement to
keep costs under control.
Mr. Steininger pointed to slide 5, "Department of Health
Public Assistance Backlog":
FY2023:
Transfer from Medicaid Services for Medicaid
Eligibility Redeterminations and Public: Assistance
Program Application Processing: $3,088.7 UGF
Medicaid Eligibility Redeterminations and Public
Assistance Program Application, Processing: $3,733.0
Federal
FY2024:
Medicaid and Public Assistance Program Eligibility
Redeterminations (FY24-FY25): $8,917.2 UGF / $8,917.3
Federal / Total $17,834.5
Full Mainframe System Replacement: $17.18 million UGF;
$6.9 million reappropriation; and $30.15 million
Federal / Total $54.23 million
9:20:01 AM
Senator Wilson wondered whether the slide referred to all
systems.
Mr. Steininger replied that it was to cover the disparate
eligibility systems.
9:20:53 AM
JOSEPHINE STERN, ASSISTANT COMMISSIONER, DEPARTMENT OF
HEALTH, JUNEAU (via teleconference), explained that the
proposal would bring all the systems into one system.
Senator Wilson wondered whether an eligibility technician
would still need to examine screens in the process if the
upgrade was complete.
Ms. Stern replied "no", and stated that it would be one
system.
Senator Kiehl asked about the non-appropriated federal
funds.
Mr. Steininger replied that the funds were matched by the
general fund from the Medicaid program.
Senator Kiehl queried the matching percentage.
Mr. Steininger deferred to Ms. Stern.
Ms. Stern replied that it was the traditional FMAP.
Senator Wilson wondered whether the Medicaid administering
department was fully funded in the request.
Mr. Steininger replied that there were items in the FY 24
budget to bring additional staff into the unit of tribal
reclaiming.
9:25:32 AM
Mr. Steininger looked at slide 6, "Alaska Marine Highway
System Federal Grant Match":
Six grants for the Alaska Marine Highway System (AMHS)
totaling: $285.6 million Federal
$44 million for operations
Supplemental operating amendment of $18.4 million in
AMHS receipts for match
$68.4 million for Tustumena replacement is being
matched with an existing FY2018 appropriation of
vessel replacement funds
$8.6 million design for another replacement vessel
Capital amendment for $2.1 million in match from the
vessel replacement fund
$163.7 million remaining is for electric ferry, dock
infrastructure upgrades and existing vessel
modernization
Capital amendment for $40.9 million in match from
Federal Highway Administration (FHWA) Ferry Boat
Funding using Toll match credits
Co-Chair Hoffman noted the two appropriations to amend the
match of $2.1 million for vessel replacement and the $40.9
million for FHWA. He queried the breakdown of all the $100
million state match for the capital budget.
Mr. Steininger agreed to provide that information.
9:30:11 AM
Co-Chair Olson wondered whether the federal money was
considered a match to acquire more federal money.
Mr. Steininger replied in the affirmative.
Co-Chair Olson wondered whether the credits from the toll
booth were considered a dollar for dollar match for federal
money.
Mr. Steininger replied in the affirmative.
Co-Chair Olson queried other uses of those funds.
Mr. Steininger replied that the money could be used to
match federal grants for the toll and highway system.
Co-Chair Stedman remarked that it was a new program for the
state, and asked how long it had been available.
Mr. Steininger replied that the program had existed since
the 1990s at the federal level.
Co-Chair Stedman wondered whether there was an opportunity
to look back further than five years.
Mr. Steininger replied in the affirmative, but stated that
he was not fully sure on that response.
Co-Chair Stedman stated that the item would be discussed in
the subcommittee related to the marine highway.
Senator Kiehl wondered whether the industrial use highway
uses counted as tolls for the federal match.
Mr. Steininger agreed to provide that information.
Mr. Steininger stated that there were four spreadsheets
that detailed the other amendments. He began with
Attachment 1 (copy on file). He quickly addressed each item
in the spreadsheet.
Co-Chair Stedman asked that the dollar amounts be announced
with each item.
9:35:10 AM
Mr. Steininger agreed.
Mr. Steininger continued to specify each item in the
spreadsheet.
Mr. Steininger pointed to Attachment 2 (copy on file),
related to capital items. He listed the items within the
spreadsheet.
9:40:35 AM
Mr. Steininger looked at Attachment 3 (copy on file), which
addressed the operating budget amendments. He listed the
items within the spreadsheet.
Co-Chair Stedman asked whether the larger items be
considered in the presentation.
The committee indicated agreement.
Mr. Steininger replied that Item 42 was $5 million for GF
participation in Alaska Seafood Marketing Institute (ASMI).
Co-Chair Olson queried the difference of the effectiveness
of money from the private area versus money from the state.
Mr. Steininger replied that the funds would ensure that the
participants would not need to ask for additional marketing
funds.
Co-Chair Olson commented that there was a significant
impact on seafood from the foreign markets.
9:45:10 AM
Senator Wilson wondered whether ASMI could use the
additional money to market the mariculture industry.
Mr. Steininger deferred to ASMI.
Co-Chair Stedman stated that the answer could be addressed
in the subcommittee process.
Co-Chair Hoffman looked at Item 62, and queried additional
information.
Mr. Steininger replied that Item 62 was in the Department
of Environmental Conservation (DEC), and it was intended to
examine taking some federal activities and move those
activities to the state.
Co-Chair Hoffman stated that the issue had been denied in
the last three years.
Senator Bishop recalled that a study had been commissioned
on the issue.
Co-Chair Stedman asked about the childcare benefits.
Mr. Steininger replied that the $2.4 million in other funds
was a combination of efforts to execute a grant on
preschool development.
9:50:49 AM
Senator Kiehl asked about the appropriation for the single
investigator.
Mr. Steininger replied that it was related to increased
duties for the investigator.
Senator Bishop wondered about the language section.
Mr. Steininger replied that there would be many changes
within the language section.
Senator Bishop surmised that the section was formula driven
by the grant recipient.
Mr. Steininger agreed.
Co-Chair Hoffman asked for information about Item 96.
Mr. Steininger replied that Item 96 was congressionally
designated spending specifically for rural trooping
housing.
Co-Chair Stedman asked about Item 100.
Mr. Steininger replied that the item was related to
depreciation of trooper vehicles and other cost pressures
in the Department of Public Safety (DPS).
9:55:05 AM
Co-Chair Hoffman asked about Item 98.
Mr. Steininger replied that it was the remaining funding
for the Soldotna Public Safety communications center.
Co-Chair Hoffman wondered why it was short funded by the
legislature.
Mr. Steininger replied that he did not know.
Senator Wilson explained that at one time the
administration wanted to consolidate to Fairbanks to
reverse the contract, so the proposal was to return control
to the local power.
Co-Chair Olson looked at Item 100, and wondered whether the
funding was for aircraft.
Mr. Steininger replied in the affirmative.
Senator Merrick asked about Item 108. She noted that it was
a $1.2 million increase.
Mr. Steininger replied that the $1.2 million was the
completion of the phased approach for compensation of
investment officers in the Permanent Fund Corporation.
10:00:29 AM
Co-Chair Olson asked about Item 105.
Mr. Steininger replied that $2.8 million for expansion of
the Village Public Safety Officer (VPSO) program was to add
10 VPSOs, housing allowances, and other non-personnel
issues.
Co-Chair Olson wondered whether it was specific to region.
Mr. Steininger agreed to provide that information.
Senator Wilson wondered whether the 68 positions were
currently filled.
Mr. Steininger agreed to provide that information.
Senator Bishop looked at Item 110, wondered whether it was
to maintain the schedule.
Mr. Steininger replied in the affirmative.
Co-Chair Stedman asked about the issuance.
Mr. Steininger replied that the Department of Revenue (DOR)
Debt Management Section refinanced older bond issuances in
a savings of $600,000 from 2012 and 2013.
10:05:22 AM
Co-Chair Hoffman wondered whether it included extending the
timeframe or only a reduction in interest.
Mr. Steininger agreed to provide that information.
Senator Kiehl wondered whether there was a list of projects
for the money.
10:05:58 AM
Mr. Steininger replied that it would open up a round of
applications.
10:06:14 AM
Co-Chair Stedman asked about the totals on line 193.
Mr. Steininger replied with the totals.
Senator Bishop remarked that there was a fast track
supplemental for the item.
Mr. Steininger replied that the fast track supplemental
would be transmitted that included the items in the
spreadsheet.
Co-Chair Stedman wondered whether the legislation would
"drop this week."
Mr. Steininger replied that the legislation would be
transmitted, so should be introduced in the current week .
Co-Chair Stedman asked about Item 21.
Mr. Steininger replied that Item 21 was the replacement of
the patrol vessel enforcer.
10:10:27 AM
Co-Chair Hoffman noted that the fisheries in western Alaska
were equally important, and he did not see them listed in
the proposal.
Mr. Steininger replied that there were discussions with the
Department of Fish and Game (DFG).
Co-Chair Hoffman queried the timeframe to have the question
answered at the federal level.
Mr. Steininger agreed to provide that information.
Co-Chair Stedman noted the concern that was broad across
the state about potential scientific effect.
Co-Chair Hoffman looked at Item 29, and noted the need for
assistance to additional communities. He queried the reason
for that omission.
Mr. Steininger replied that it was probably an issue of the
title being more specific, but agreed to provide more
information.
10:15:03 AM
Co-Chair Stedman remarked that there was a concern for
Department of Transportation and Public Facilities (DOT/PF)
about weather-impacted communities. He queried the federal
requirements and restrictions for rebuilding the homes in
Alaska.
Senator Bishop agreed that the test fishery vessel should
be included in the appropriation. He asked about
recruitment and retention.
Mr. Steininger replied that the question of recruitment and
retention was a continual concern in the administration.
Senator Bishop wondered whether there would be a contract
for that examination.
Mr. Steininger replied in the affirmation.
Senator Kiehl looked at Item 186, and queried the specific
port on that item.
Mr. Steininger replied that the items were for lining out
the surface transportation program.
Co-Chair Stedman asked about the totals.
10:21:35 AM
Mr. Steininger stated that the net change was an additional
$27.2 million in UGF, and $472.9 million in federal funds.
The total being $546.7 million in total funds.
Mr. Steininger stated that the fast track supplemental bill
would be transmitted as soon as possible to address the
issues outlined in the budget.
Co-Chair Stedman stated that there would be work done on
the issues, but wanted to minimize "political collateral
damage."
Co-Chair Stedman discussed the following day's agenda.
SB 40 was HEARD and HELD in committee for further
consideration.
SB 41 was HEARD and HELD in committee for further
consideration.
SB 42 was HEARD and HELD in committee for further
consideration.
SB 54 was HEARD and HELD in committee for further
consideration.