Legislature(2023 - 2024)SENATE FINANCE 532
04/19/2023 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB39 | |
| HB41 | |
| SB107 | |
| SB53 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 53 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 39 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| += | SB 22 | TELECONFERENCED | |
| += | SB 57 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 41(FIN) am
"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."
2:04:09 PM
Senator Bishop MOVED to ADOPT proposed committee substitute
for CSHB 41(FIN), Work Draft 33-GH1349\S (Marx, 4/17/23).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund addressed page 7 of the document, which
addressed changes to the proposed mental health bill.
MENTAL HEALTH BUDGET LANGUAGE CHANGES
SB42 (VERSION A) TO SENATE CS FOR HB41 (VERSION S)
There only differences in the Mental Health budget
language are the sections designed to mirror the
operating sections for the salary adjustment language
and for the bonuses. The details are below.
1. Revision of Sec 10, which is language related to
salary and benefit adjustments for bargaining units.
Two additional bargaining units were added to the
language to incorporate additional unions and the
addition to clarify Bonuses for certain employees of
the executive branch.
2. Addition of Section 8 and Section 12. This language
states that funding included in the budget for BONUSES
FOR CERTAIN EMPLOYEES OF THE EXECUTIVE BRANCH is
contingent upon
o the state and the applicable bargaining unit of
the employee entering into a letter of agreement
for the bonus AND that
o the Department of Administration provide a copy
of the letter of agreement to the legislative
finance division in electronic form not later
than 30 days after the department enters into the
letter of agreement.
Mr. Ecklund noted that the changes mirrored proposed
changes in the operating budget.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. The CS for CSHB
41(FIN) was ADOPTED.
CSHB 41(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman relayed that the committee would consider
amendments and set an amendment deadline of 2 o'clock p.m.
for Friday, April 21. He relayed that the director of the
non-partisan LFD would give an update of the state's fiscal
picture. He noted that there were a couple of large items
that were not in the budget, primarily the Permanent Fund
Dividend (PFD) and education funding. He emphasized that
there were items that needed to be included in future CSs
but contended that the state could not have an unbalanced
budget.
2:07:33 PM
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
spoke to a document entitled "LFD 1" (copy on file). He
cited that the simplified document put numbers to what Co-
Chair Stedman discussed. The first line showed the
Department of Revenue's (DOR) Spring Forecast, based on
$73/bbl price of oil. He noted that the Alaska Industrial
Development and Export Authority (AIDEA) dividend was
currently not in the proposed budget, which reduced
revenue. The amount available on line 3 showed about $6.25
billion, while line 4 showed the agency operations numbers
in HB 39 and HB 41. Line 5 had statewide items.
Mr. Painter continued that Line 6 showed the capital budget
from the first CS that was released the previous week, plus
the mental health budget capital items that were also in
the CS that was just adopted. The capital budget was $190.7
million compared to the governor's amended capital budget
that was a bit over $300 million. Line 7 showed total
appropriations of about $4.85 billion, and Line 8 showed
$1.4 billion remaining for the PFD and additional education
or other items as the committee chose.
Co-Chair Stedman asked if Mr. Painter had any slides
prepared that might show what it would look like to pay a
statutory dividend versus a 50/50 or other amount PFD's.
Mr. Painter relayed that he did not have any prepared
slides but could tell the committee the numbers.
Co-Chair Stedman noted that the other body had proposed a
50/50 dividend to total $1.763 billion. He asked Mr.
Painter about the calculations if the budget were to pay
the amount out of the $1.4 billion.
Mr. Painter cited that the dividend level proposed in the
other body would leave a deficit of approximately $360
million based on the CSs in front of the committee.
Co-Chair Stedman noted that the deficit would occur without
including additional education funding or additional
capital budget funding.
Mr. Painter agreed.
Senator Merrick asked if $190 million for the capital
budget captured all federal funds.
Mr. Painter thought that the CS for the capital budget
captured all the federal funds but did not invest in state-
funded projects beyond that amount.
Co-Chair Stedman asked about the roughly projected revenue
if the committee decided to appropriate funds for K-12
education and a 75/25 percent PFD. He asked about projected
revenue for education and capital projects if there was
lower than expected revenue.
Mr. Painter explained that the 75/25 dividend was $880
million, which would leave about $620 million remaining
that could go to additional capital funds or K-12 education
funding. For reference, he cited that the other body had
considered $175 million in funding outside the education
funding formula. The amount was not funded due to the
failure of the vote to access the Constitutional Budget
Reserve (CBR). The bill currently before the committee was
roughly $100 million more.
2:12:10 PM
Co-Chair Stedman asked if Mr. Painter had indicated that
there was no K-12 funding in any currently proposed budget.
Mr. Painter affirmed there was no funding proposed in
addition to the K-12 education funding formula in either
the House or Senate budget. He continued that both the CS
being considered and the House version of the budget funded
the K-12 statutory formula as it currently existed. The
House had included an amendment to include funding outside
the formula funding from the CBR. When the required vote
failed the funding was deleted from the bill. Both the CS
being considered, and the other body's budget only
contained formula funding.
Co-Chair Stedman thought the previous year the legislature
had added $58 million to the formula funding, so if nothing
additional was funded in the current year it would actually
be a reduction.
Mr. Painter affirmed that there had been $57 million funded
outside the formula. He continued that while there was a
$30 Base Student Allocation (BSA) increase in the current
year, it was nowhere near to the size of the previous
year's increase.
Co-Chair Stedman asked Mr. Painter to prepare a summary
sheet for members with illustrated options such as what it
would take to fund a 50/50 or 75/25 dividend. He noted that
members would have to consider a range for funding the BSA.
He thought there was a desire by all committee members to
increase the BSA and have a number in excess of the
previous year's funding to varying degrees. He thought a
summary would also assist in consideration of the capital
budget. He wanted committee members to consider the
possibility of revenue in excess of expectations, as well
as the possibility of a backstop in the case that revenue
fell below expectations. He mentioned a waterfall provision
for the purpose of forward funding of education or other
items. He discussed the possibility of revisiting the
budget in January and February to add additional capital
and maintenance money.
CSHB 41(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman handed the gavel to Co-Chair Olson.
2:15:46 PM
AT EASE
2:20:21 PM
RECONVENED
Co-Chair Olson relayed that the committee would consider
two bills.