Legislature(2021 - 2022)ADAMS 519

03/04/2022 01:30 PM House FINANCE

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01:37:23 PM Start
01:39:31 PM HB281 || HB282
02:16:31 PM Public Testimony: Fairbanks, Kenai, Mat-su, Anchorage, Bethel, Cordova, Kotzebue, Nome, Utqiagvik
04:08:45 PM Adjourn
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+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 4, 2022                                                                                            
                         1:37 p.m.                                                                                              
1:37:23 PM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 1:37 p.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter via teleconference                                                                                 
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Adam Wool                                                                                                        
MEMBERS ABSENT                                                                                                                
Representative Bryce Edgmon                                                                                                     
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
ALSO PRESENT                                                                                                                  
Brodie Anderson, Staff, Representative Neal Foster.                                                                             
PRESENT VIA TELECONFERENCE                                                                                                    
James Low,  Civil Air  Patrol, Fairbanks;  David Guttenberg,                                                                    
self, Fairbanks; Jeanette  Grast, NAMI Fairbanks, Fairbanks;                                                                    
Sherry  Mettler,  Alaska  Assisted Living,  Anchorage;  Lucy                                                                    
Bauer,  Alaska Assisted  Living, Anchorage;  Erin Terry,  AK                                                                    
Assisted  Living,  Anchorage;  Mary  Nicholson,  Nicholson's                                                                    
Assisted  Living,   Kenai;  Greg  Manskie,   ACCESS  Alaska,                                                                    
Wasilla; Gordon Glaser, Self,  Anchorage; Kevin McCoy, Self,                                                                    
Anchorage;   Jean  Holt,   Self,   Palmer;  Trevor   Storrs,                                                                    
President and CEO Alaska  Children's Trust, Anchorage; Helen                                                                    
Howarth,  City Manager,  City  of  Cordova, Cordova;  Daniel                                                                    
Stanton, Administrator  and Owner, Anchorage  Abode Assisted                                                                    
Living,  Anchorage;  Selena   Hopkins-Kendall,  Chair,  Best                                                                    
Beginnings,  Anchorage;  Denice  Gilroy, Arctic  Access  and                                                                    
Independent  Living  Network,   Nome;  Ellen  Ganley,  Self,                                                                    
Fairbanks;  William   Edwards,  Arctic  Access,   Nome;  Jon                                                                    
Erickson, City Manager, Yakutat; Ronda Burnett,   Arctic                                                                        
Access,   Nome; Nicky  Eiseman, Self, Ester;  Lance Johnson,                                                                    
Norton  Sound Health,  Nome; Kara  Moriarty, Alaska  Oil and                                                                    
Gas  Association,  Anchorage;  Amber  Vaska,  Tanana  Chiefs                                                                    
Conference  and Alaska  Regional  Coalition, Fairbanks;  Tom                                                                    
Chard,  Alaska  Behavioral  Health  Association,  Fairbanks;                                                                    
Katie  Bender,  President  of Board,  University  of  Alaska                                                                    
Anchorage Alumni Association,  Anchorage; Randi Sweet, Self,                                                                    
Seldovia; Crystal  Nygard, City of Wasilla,  Wasilla; Keisha                                                                    
Simmons, Self, Fairbanks; Bert  Houghtaling, Self, Big Lake;                                                                    
Brandy  Harty,  Self,  Fairbanks; Garrison  Collette,  Self,                                                                    
Fairbanks;  Mary David,  Kawerik Corporation,  Nome; Theresa                                                                    
Reed,  self,  Fairbanks;  Randy  Griffin,  self,  Fairbanks;                                                                    
Dennis  Boyer,  Self,   Wasilla;  Timothy  Ledna,  Fairbanks                                                                    
Reentry  Coalition, Fairbanks;  Carrie Harris,  Self, Anchor                                                                    
Point;  Darlene   Supplee,  Executive   Director,  Fairbanks                                                                    
Senior   Center,  Fairbanks;   Nicole  Zegiestowsky,   Self,                                                                    
Anchorage; Benjamin  Johnson, President and CEO,  Blue Crest                                                                    
Energy,  Dallas; Marge  Stoneking,  AARP Alaska,  Anchorage;                                                                    
Eric Gurley,  ACCESS Alaska Inc., Anchorage;  SK Son, Anchor                                                                    
House,  Anchorage; Carl  Weisner, Northwest  Arctic Borough,                                                                    
Kotzebue;  Suzi  Pearson,  Abused  Women's  Aid  in  Crisis,                                                                    
Anchorage; Kaleene Lamb, Self, Fairbanks.                                                                                       
HB 281    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
          HB 281 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
HB 282    APPROP: MENTAL HEALTH BUDGET                                                                                          
          HB 282 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
PUBLIC  TESTIMONY:  FAIRBANKS,   KENAI,  MAT-SU,  ANCHORAGE,                                                                    
BETHEL, CORDOVA, KOTZEBUE, NOME, UTQIAGVIK                                                                                      
Co-Chair Foster reviewed the agenda for the day.                                                                                
HOUSE BILL NO. 281                                                                                                            
     "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. 282                                                                                                            
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health program;  making  capital                                                                    
     appropriations  and  supplemental  appropriations;  and                                                                    
     providing for an effective date."                                                                                          
1:39:31 PM                                                                                                                    
Co-Chair  Merrick  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for HB 281(FIN),  Work Draft  32-GH2686\N (Marx,                                                                    
Co-Chair  Foster OBJECTED  for  discussion.  He invited  his                                                                    
staff  to present  the changes  reflected  in the  committee                                                                    
1:39:58 PM                                                                                                                    
BRODIE   ANDERSON,   STAFF,  REPRESENTATIVE   NEAL   FOSTER,                                                                    
reviewed the handouts  in members packets. He  looked at the                                                                    
document  titled,   All  Funds Agency  Summaries   (copy  on                                                                    
file). He read from a prepared statement:                                                                                       
     Before the  committee today  is a  Committee Substitute                                                                    
     for House Bill 281 that  reflects all of the actions of                                                                    
     Subcommittees,  and   changes  made  to   the  Language                                                                    
     section   compared   to    the   Committee   Substitute                                                                    
     introduced  on January  27th, often  referred to  as CS                                                                    
     0.5,  this  committee  substitute  also  includes  ARPA                                                                    
     Revenue Replacement, and some CSLFRF spending.                                                                             
     For FY23: the House Finance Committee Substitute                                                                           
     Reflects   a  total   of     $9,418,028.5  for   Agency                                                                    
     Operations, which is the more  of the "day to day state                                                                    
     government"  a  total  budget   of    $1,568,014.4  for                                                                    
     Statewide   Items,   which   includes   Debt   Service,                                                                    
     Retirement payments,  Special Appropriations,  and Fund                                                                    
     These totals include the following funds                                                                                   
     $3,073,107.4 is federal  -                                                                                                 
     $871,369.2 in Designated General Funds or DGF                                                                              
     $1,662,115.7 in  other funds-  these funds  include the                                                                    
     authorization of  corporate receipts like  AIDEA, AHFC,                                                                    
     and Aerospace,  Interagency receipts  known as  I/A and                                                                    
     airport receipts and more.                                                                                                 
     And $6,294,392.4 in Unrestricted General Funds                                                                             
     Compared  to Adjusted  Base,  the unrestricted  general                                                                    
     funds spend  reflects an increase of  $1,270,663.6 from                                                                    
     the  original FY23  adjusted base  or  an 25.3  percent                                                                    
     increase from Adjusted Base.  The largest increase from                                                                    
     adjusted  base is  the addition  of the  permanent fund                                                                    
     and the energy relief check.                                                                                               
1:48:21 PM                                                                                                                    
Representative Wool queried how much the Permanent Fund                                                                         
Dividend (PFD) total was the additional energy money                                                                            
attached to the PFD.                                                                                                            
Mr. Anderson agreed to provide that information in revised                                                                      
reports, and noted that it was included in Document 1.                                                                          
Mr. Anderson reviewed the changes from the CS. He continued                                                                     
to read from a prepared statement:                                                                                              
     First  off,  this  committee  substitute  includes  all                                                                    
     changes  from subcommittee  close-outs. However,  since                                                                    
     close-outs  some things  have  changed  in the  numbers                                                                    
     section so I'll address them here.                                                                                         
     Department of Corrections (DOC)                                                                                            
     Page 8 Lines 8-10                                                                                                          
     This carryforward  language was moved from  language to                                                                    
     numbers  as  it is  more  appropriately  placed in  the                                                                    
     Numbers   section.   This  carryforward   language   is                                                                    
     intended  to   fully  utilize  federal  funds   in  the                                                                    
     Anchorage  Correctional  Complex  and  even  out  costs                                                                    
     across fiscal  years. The  Department has  expressed no                                                                    
     concern with this change.                                                                                                  
1:50:23 PM                                                                                                                    
AT EASE                                                                                                                         
1:50:50 PM                                                                                                                    
Mr. Anderson addressed the Department of Family and                                                                             
Community Services:                                                                                                             
     Page 14 Lines 23-28                                                                                                        
     In  the  Office  of Children's  Services,  funding  and                                                                    
     intent  language  associated   with  the  Tribal  Child                                                                    
     Welfare  Compact was  transferred from  the Front  Line                                                                    
     Social  Workers' allocation  to its  own allocation  to                                                                    
     ensure  better  tracking  and   reporting  for  the  $5                                                                    
     million  appropriated  for  the  Compact.  This  was  a                                                                    
     subcommittee recommendation.                                                                                               
Mr. Anderson referred to the Department of Labor and                                                                            
Workforce Development (DOL):                                                                                                    
     Page 23 Line 31                                                                                                            
     This  change  moves  open-ended federal  authority  for                                                                    
     unemployment   insurance    benefits   and   associated                                                                    
     administrative costs  from the language section  to the                                                                    
     numbers  section  as  a  $10  million  dollar  one-time                                                                    
     increment. The Department did  not express concern with                                                                    
     the $10 million cap which should be sufficient.                                                                            
Mr. Anderson referred the University of Alaska:                                                                                 
     Page 38 Line 33                                                                                                            
     The  subcommittee  added  $3.75   million  UGF  to  the                                                                    
     Anchorage   Campus  allocation   for  the   purpose  of                                                                    
     expanding the Healthcare worker training program.                                                                          
     The CS  swapped the  UGF funds to  CLSFRF. This  was an                                                                    
     original  request and  intention by  both the  Board of                                                                    
     Regents and the Governor.                                                                                                  
     These  are the  only  differences  to the  subcommittee                                                                    
     actions,  excluding Revenue  Replacement  which I  will                                                                    
     address later.                                                                                                             
Mr. Anderson discussed Supplemental Sections added to the                                                                       
     Section 7 Page 59 Lines 1-5                                                                                                
     Is the $48.5 million  for last year's remaining portion                                                                    
     of  school  bond  debt. This  amount  makes  the  State                                                                    
     payment  100 percent  of  the  obligation required  for                                                                    
     last  year. This  has a  July  1st, 2021  retroactivity                                                                    
     date reflected in Section 41 of the CS.                                                                                    
     Section 8 Supplemental  Commerce Community and Economic                                                                    
     Subsection (b) Page 59 lines 11-14                                                                                         
     Is the  $7.1 million for last's  year remaining payment                                                                    
     to  eligible recipients  for  the community  assistance                                                                    
     program. This  has a July 1st,  2021 retroactivity date                                                                    
     reflected in Section 41 of the CS.                                                                                         
     Section 9 Supplemental Fund Capitalization                                                                                 
     Page 59 lines 15 and 16                                                                                                    
     Is  the  $31.8  million  to  repopulate  the  community                                                                    
     assistance fund up  to the full $90 million,  this is a                                                                    
     supplemental item in  FY22 so the full  payments can be                                                                    
     made in FY23.                                                                                                              
     Page 59 lines 17 and 20 Subsection(b)                                                                                      
     $17.1   million  is   appropriated   to  the   regional                                                                    
     educational attendance  area or REAA fund,  this is the                                                                    
     amount to make the fund whole in FY22,                                                                                     
     Page 59 lines 21 - 22 Subsection(c)                                                                                        
     $60.0 million  is appropriated to  pay for oil  and gas                                                                    
     tax  credits,  this is  the  amount  to make  the  full                                                                    
     payments  for  tax  credits  in  FY22,  last  year  the                                                                    
     payments were short.                                                                                                       
     All of this Section has  a July 1st, 2021 retroactivity                                                                    
     date reflected in Section 41 of the CS.                                                                                    
Representative LeBon asked for the funding source.                                                                              
Mr. Anderson responded that it was UGF.                                                                                         
Mr. Anderson continued to read from a prepared statement:                                                                       
     Supplemental Fund Transfers                                                                                                
     Page   59   lines  23-31   and   Page   60  lines   1-8                                                                    
     Subsection(a and b)                                                                                                        
     This authorization to refill all of the accounts that                                                                      
     were swept when the CBR Reserve Sweep vote failed last                                                                     
     year including the higher education fund.                                                                                  
Representative Josephson  wondered whether Section  10, page                                                                    
59 was referring to swept items.                                                                                                
Mr. Anderson replied in the affirmative.                                                                                        
Representative  Josephson  asked  if  a CBR  vote  would  be                                                                    
required in the current year.                                                                                                   
Mr. Anderson responded in the negative.                                                                                         
Representative Wool asked whether  the numbers were included                                                                    
with  the  expectation that  the  Spring  Forecast would  be                                                                    
reconciled with the numbers.                                                                                                    
Mr. Anderson replied that the  budget used FY 33 surplus, so                                                                    
the funds would be provided for the requests.                                                                                   
Co-Chair Foster redirected the line of questioning.                                                                             
Representative   Josephson    pointed   to    the   Worker's                                                                    
Compensation Benefit  Fund and wondered whether  it would be                                                                    
considered swept funds.                                                                                                         
Mr. Anderson agreed to provide that information.                                                                                
Representative LeBon asked if  the dollars were currently in                                                                    
the CBR.                                                                                                                        
Mr. Anderson  responded that the funds  would be repopulated                                                                    
in the CBR.                                                                                                                     
Representative LeBon asked if they were going to //.                                                                            
2:00:26 PM                                                                                                                    
Mr. Anderson continued to read from a prepared statement:                                                                       
     Supplemental Statutory Budget Reserve Fund                                                                                 
     Page 60 lines 9-11                                                                                                         
     This section takes all  remaining surplus general funds                                                                    
     not spent in FY22 and  deposits them into the SBR. This                                                                    
     amount is estimated to be approximately $340 million.                                                                      
     This section  has a June  30th 2022  retroactivity date                                                                    
     reflected in Section 41 of the CS.                                                                                         
     Page 60 Lines 20-31 thru page 62 line 26                                                                                   
     Section 14 Alaska Housing Capital Corporation                                                                              
     On  the advice  of Legislative  Legal, the  CS reflects                                                                    
     the reappropriations  made by the Governor  in his bill                                                                    
     for standing up  the two new departments  of Family and                                                                    
     Community Services  and Health with funds  from the old                                                                    
     Department  of Health  and Social  Services are  placed                                                                    
     into the Alaska Housing  Capital Corporation account as                                                                    
     a  holding  account  for  the  funds  since  all  three                                                                    
     department  do   not  exist  at  the   same  time.  The                                                                    
     appropriation  made  from  this   account  to  the  new                                                                    
     departments is reflected later in the CS.                                                                                  
     The other change to this  section is the removal of the                                                                    
     words  "including encumbered  amounts",  once again  on                                                                    
     the  advisement of  Legislative Legal  those references                                                                    
     were  removed because  of  a  constitutional issue  and                                                                    
     that Legislature  Legal feels  is resolved  through the                                                                    
     language of  Executive Order.                                                                                              
     This section  has a June  30th 2022  retroactivity date                                                                    
     reflected in Section 41 of the CS.                                                                                         
     Alaska Permanent Fund Section 17                                                                                           
     Page 64 Lines 22-23 Subsection (c)                                                                                         
     This is the  deposit of the POMV $3.3  billion from the                                                                    
     Earnings  Reserve  to  the   general  fund,  which  the                                                                    
     standard practice of the Legislature.                                                                                      
     Lines 24-27 subsection (d)                                                                                                 
     Is  the POMV  split  of  25 percent    for  the PFD  to                                                                    
     Alaskans, taking  $840 million dollars for  a $1250 PFD                                                                    
     payment per person                                                                                                         
2:03:27 PM                                                                                                                    
Representative LeBon asked about the effective draw rate on                                                                     
the $3 billion.                                                                                                                 
Mr. Anderson replied that did not know.                                                                                         
Mr. Anderson continued:                                                                                                         
     At  this  time I  would  like  to  also point  out  the                                                                    
     special appropriation                                                                                                      
     This  is related  to the  disbursement of  the PFD,  so                                                                    
     please turn to:                                                                                                            
     Page 90 lines 18 thru 22                                                                                                   
    Section 38 Special Appropriations for Energy Relief                                                                         
     This section authorizes that  $840.1 million of general                                                                    
     funds  be  used  to  provide a  onetime  energy  relief                                                                    
     payment  of $1300  per  Alaskan.  This onetime  payment                                                                    
     will   utilize   the   PFD   as   the   mechanism   for                                                                    
     Please turn to Page 68 Lines 3-6                                                                                           
     Under  Section 20  Department  of  Education and  Early                                                                    
     Subsection (d)                                                                                                             
     This a  $50 million one-time appropriation  outside the                                                                    
     formula for  school districts, this is  contingent upon                                                                    
     the  failure   of  the  passage   of  a   BSA  increase                                                                    
     The contingent language is later on in the CS.                                                                             
     Page 68 lines 7-10                                                                                                         
     After  Subcommittee   close-outs,  further  discussions                                                                    
     were had  with the Department  and the CS  reflects the                                                                    
     inclusion  of  the  requested   $1.6  million  for  the                                                                    
     expansion  of  WWAMI  program by  10  participants  but                                                                    
     taking  into  consideration  the fact  that  the  funds                                                                    
     might be spent in Fiscal  Year 23, the reflects this as                                                                    
     a multi-year appropriation so they  will have two years                                                                    
     to implement the expansion.                                                                                                
     Page 68 line 11 through Page 73 line 5                                                                                     
     Sections 21  and 22 Department of  Family and Community                                                                    
     Services and Department of Health                                                                                          
     Since  the CS  deposits funds  into the  Alaska Housing                                                                    
     Capital   Corporation,  these   sections  reflect   the                                                                    
     appropriations  going from  the AHCC  account into  the                                                                    
     Not  reflected the  in this  CS is  the removal  of the                                                                    
     Department of Law section  appropriating $4 million for                                                                    
     Statehood  defense, the  department  had reported  that                                                                    
     they had  only spent  $270 thousand  of the  $4 million                                                                    
     appropriated for the same purpose last year.                                                                               
     Additional in the  Department of Transportation, Alaska                                                                    
     Marine Highway appropriation,  UGF backstop language to                                                                    
     cover uncollected  federal receipts was removed.   This                                                                    
     was included  last year  because there  was uncertainty                                                                    
     about the amount of federal  funds that were available,                                                                    
     this  backstop language  is  unnecessary  this year.  t                                                                    
     need in this year's budget.                                                                                                
     Page 75 lines 11-21                                                                                                        
     University of Alaska Section 28                                                                                            
     The three  projects listed  from the  Governor's budget                                                                    
     for the  drone program,  rare earth minerals  and Heavy                                                                    
     Oil are  funded by CSLFRF like  the Governor's original                                                                    
     request, they were initially changed to UGF in CS 0.5.                                                                     
     Page 80 Lines 24 through Page 81 line 9                                                                                    
     Section 31 Federal and Other Program Receipts                                                                              
     Subsections (e) and (f)                                                                                                    
     This  language provides  limits on  large RPL  requests                                                                    
     outside  of  the  typical  limited  scope  of  the  RPL                                                                    
     process,  In particular,  this  excludes flexible  ARPA                                                                    
     CSLFRF  funds, and  funds  made  available through  the                                                                    
     Infrastructure Investment and Jobs Act, IIJA.                                                                              
     This  requires   the  Governor   to  come   before  the                                                                    
     Legislature  for  authorization  before  those  federal                                                                    
     funds can be spent.                                                                                                        
     Page 86 Lines 19-21                                                                                                        
     Fund Transfer  Subsection (m)                                                                                              
     This   subsection  appropriates   an  estimated   $10.2                                                                    
     million  from  Large  Vessel Gaming  and  Gambling  Tax                                                                    
     Account to the  general fund because the  State will be                                                                    
     collecting  the tax  this year  with  a cruise  season.                                                                    
     This  standard  practice when  we  have  a cruise  ship                                                                    
     seasons returning.                                                                                                         
     Subsection (n) Page 86 Lines 22-24                                                                                         
     This  section  is  the   Revenue  Replacement  of  $300                                                                    
     million dollars                                                                                                            
     Reference Document 5 ARPA Rev Replace                                                                                      
     The   committee  will   notice  1/3   of  the   revenue                                                                    
     replacement is  found in  Corrections, this  is because                                                                    
     the  Department  has  large amounts  of  general  funds                                                                    
     available  for  the  fund swap  without  any  necessary                                                                    
     concern for how it might  impact federal match or other                                                                    
     requirements on those general funds.                                                                                       
     Page 90 Lines 8-12                                                                                                         
     Section 36 Shared Taxes Subsection (g)                                                                                     
     This clarifies the backstop  language for prorating the                                                                    
     distribution of  revenue if there  is any  lost revenue                                                                    
     for the seven port calls.                                                                                                  
     Page 90 Lines 23 thru 29                                                                                                   
     Statutory Budget Reserve Fund                                                                                              
     Section 39                                                                                                                 
     Subsection(a and b)                                                                                                        
     This authorizes  the SBR  to be  used for  deficit fill                                                                    
     and deposits any  surplus general funds in  FY23 in the                                                                    
     Page 91 Lines 10-13                                                                                                        
     Section 42 Contingency                                                                                                     
     This section  is the contingent language  mention above                                                                    
     regarding the  $50 million of one-time  funding outside                                                                    
     the formula  if a BSA  bill, House Bill 272  or similar                                                                    
     bill is not passed.                                                                                                        
2:13:20 PM                                                                                                                    
Co-Chair Foster  indicated the initial  plan was to  take up                                                                    
amendments in the  following week and would  get pushed back                                                                    
a week. He indicated members  would have additional time for                                                                    
Representative Josephson thought the date was March 10th.                                                                       
Co-Chair Foster clarified that it had been moved to March                                                                       
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
There being NO further OBJECTION, it was so ordered.                                                                            
2:14:59 PM                                                                                                                    
Co-Chair  Merrick  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for HB  282(FIN),  Work Draft  32-GH2687\I(Marx,                                                                    
Co-Chair Foster OBJECTED for discussion.                                                                                        
2:15:25 PM                                                                                                                    
BRODIE ANDERSON, STAFF,  REPRESENTATIVE NEAL FOSTER, relayed                                                                    
there were no other changes  except what was reported in the                                                                    
subcommittee close outs.                                                                                                        
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
There being NO OBJECTION, it was so ordered.                                                                                    
^PUBLIC  TESTIMONY:  FAIRBANKS,  KENAI,  MAT-SU,  ANCHORAGE,                                                                  
BETHEL, CORDOVA, KOTZEBUE, NOME, UTQIAGVIK                                                                                    
2:16:31 PM                                                                                                                    
Co-Chair  Foster indicated  the committee  would be  hearing                                                                    
public testimony.  He provided  the call-in numbers  and the                                                                    
email for  submitting written testimony.  Official testimony                                                                    
of the budget would end at 3:00 P.M. on Saturday.                                                                               
2:21:11 PM                                                                                                                    
JAMES    LOW,    CIVIL    AIR   PATROL,    FAIRBANKS    (via                                                                    
teleconference), spoke  in support of the  Civil Air Patrol.                                                                    
He  had been  involved  in  the Civil  Air  Patrol for  many                                                                    
years. The  Fairbanks hanger  was the  largest in  the state                                                                    
and the  second largest in  the US. With  technology changes                                                                    
they  did not  due  as  many rescues,  and  shared that  the                                                                    
Fairbanks squadrons supported 17 members.                                                                                       
Representative  LeBon thanked  the  testifier and  indicated                                                                    
the Civil Air Patrol had broad support from the committee.                                                                      
2:24:14 PM                                                                                                                    
DAVID  GUTTENBERG,  SELF,  FAIRBANKS  (via  teleconference),                                                                    
currently sat  on the Fairbanks North-Star  Borough assembly                                                                    
which had  a legislative priority  list. He wanted  to focus                                                                    
on  support Community  Assistance. He  hoped Alaskans  would                                                                    
not get  hit locally. He urged  members to place as  much as                                                                    
possible into revenue sharing.                                                                                                  
Representative Wool was  keeping Representative Guttenberg's                                                                    
"seat warm."                                                                                                                    
2:26:41 PM                                                                                                                    
JEANETTE    GRAST,    NAMI   FAIRBANKS,    FAIRBANKS    (via                                                                    
teleconference),  thanked members  for reversing  behavioral                                                                    
health treatment  and recovery grants, and  spoke in support                                                                    
of the 20 percent increase  over the governor's request. The                                                                    
pandemic  had  increased  the  need  for  behavioral  health                                                                    
services,  and  stress  that  mental  health  treatment  was                                                                    
effective if a person could get it.                                                                                             
2:28:42 PM                                                                                                                    
SHERRY  METTLER,  ALASKA  ASSISTED  LIVING,  ANCHORAGE  (via                                                                    
teleconference),  spoke  in  support of  the  DHSS  assisted                                                                    
living program.  She highlighted  that it  had been  over 20                                                                    
years since  there had been  an increase in the  budget. The                                                                    
rate was all-inclusive which meant  there would be access to                                                                    
food  for three  meals plus  snacks  on a  daily basis.  She                                                                    
remarked that a  large portion of the  population had mental                                                                    
Co-Chair Foster  reminded testifiers they could  also submit                                                                    
their testimony to the email he provided.                                                                                       
2:32:58 PM                                                                                                                    
LUCY   BAUER,  ALASKA   ASSISTED   LIVING,  ANCHORAGE   (via                                                                    
teleconference),  spoke in  support of  funded for  assisted                                                                    
living. She echoed the comments from Ms. Mettler.                                                                               
2:34:37 PM                                                                                                                    
ERIN   TERRY,    AK   ASSISTED   LIVING,    ANCHORAGE   (via                                                                    
teleconference),  operated a  16-bed  assisted living  home.                                                                    
She  thanked members  for their  support. She  would provide                                                                    
written testimony.                                                                                                              
2:35:24 PM                                                                                                                    
MARY  NICHOLSON,  NICHOLSON'S  ASSISTED LIVING,  KENAI  (via                                                                    
teleconference),  owned  and operated  Nicholson's  Assisted                                                                    
Living for 24 years. She  stressed that there were a limited                                                                    
amount of assisted  living facilities on the  Kenai. In 2002                                                                    
when the  rate was set minimum  wage was $5.64 per  hour. In                                                                    
2002 gas price  was $1.64 per gallon a  76 percent increase.                                                                    
She commented  that with  prices going up  she would  not be                                                                    
able to continue with the current rate.                                                                                         
2:37:46 PM                                                                                                                    
GREG MANSKIE,  ACCESS ALASKA, WASILLA  (via teleconference),                                                                    
spoke in  support of the  services ACCESS Alaska.  They were                                                                    
very helpful to him and  he wanted to see additional support                                                                    
head their way.                                                                                                                 
2:38:46 PM                                                                                                                    
GORDON  GLASER, SELF,  ANCHORAGE  (via teleconference),  was                                                                    
the  former chair  for the  Alaska Commission  on Aging.  He                                                                    
spoke in support  of the increase in funding  for the Alaska                                                                    
Commission  on Aging.  The funding  would get  beneficiaries                                                                    
out of a  hospital bed and into a care  facility or home. He                                                                    
stressed the need for a competitive salary in the field.                                                                        
2:41:06 PM                                                                                                                    
KEVIN   MCCOY,   SELF,   ANCHORAGE   (via   teleconference),                                                                    
practiced  law  for  44 years.  He  opposed  the  governors                                                                     
proposed  supplemental  appropriation  to fund  $500,000  in                                                                    
settlement costs. He  stressed that the state  should not be                                                                    
responsible for paying those settlement costs.                                                                                  
2:45:27 PM                                                                                                                    
JEAN  HOLT,  SELF,  PALMER (via  teleconference),  suggested                                                                    
rescheduling  public testimony  in order  for the  public to                                                                    
have  time  to   review  the  changes  made   in  the  bill,                                                                    
particularly  related to  the PFD.  She  thought the  energy                                                                    
relief  check was  a bribe  to  buy the  public's vote.  She                                                                    
stated  the  testimony  the previous  day  involved  special                                                                    
interest  groups  wanting  money.  She  stated  the  bloated                                                                    
budget had not gone down.                                                                                                       
Co-Chair   Foster   indicated   there   would   be   another                                                                    
opportunity to testify tomorrow on Saturday, March 5, 2022.                                                                     
2:48:45 PM                                                                                                                    
TREVOR STORRS,  PRESIDENT AND  CEO ALASKA  CHILDREN'S TRUST,                                                                    
ANCHORAGE (via teleconference),  applauded the commitment to                                                                    
adding frontline social workers,  because they help families                                                                    
on the brink.  He spoke of the benefits  of children's early                                                                    
Co-Chair   Foster  encouraged   people  to   submit  written                                                                    
testimony of it is longer than 2 minutes.                                                                                       
2:52:17 PM                                                                                                                    
HELEN HOWARTH,  CITY MANAGER, CITY OF  CORDOVA, CORDOVA (via                                                                    
teleconference), supported  the states continued  support of                                                                    
funding  for the  Alaska Marine  Highway System  (AMHS). She                                                                    
also applauded the direction of  additional School Debt Bond                                                                    
Reimbursement.  She spoke  in  support  of additional  state                                                                    
investment  of $2  million for  Cordova's construction  of a                                                                    
new harbor.                                                                                                                     
2:55:32 PM                                                                                                                    
DANIEL  STANTON, ADMINISTRATOR  AND  OWNER, ANCHORAGE  ABODE                                                                    
ASSISTED  LIVING,  ANCHORAGE  (via teleconference),  was  an                                                                    
owner  of   an  assisted   living  home  for   mentally  ill                                                                    
individuals.  He  stated that  as  a  five-bed facility,  it                                                                    
supplied five beds for people  who would otherwise be on the                                                                    
street. The only  way the vulnerable people to  be house was                                                                    
through  support,  and  stressed  that people  came  to  his                                                                    
facility with  nothing. He explained the  breakdown of costs                                                                    
in his facility.                                                                                                                
2:59:06 PM                                                                                                                    
SELENA  HOPKINS-KENDALL, CHAIR,  BEST BEGINNINGS,  ANCHORAGE                                                                    
(via teleconference),  spoke in support of  funding for Best                                                                    
Beginnings.  Her  children  benefited from  early  childhood                                                                    
education.  She  hoped  the  funding  would  remain  in  the                                                                    
budget.  She reiterated  the importance  of Pre-K  education                                                                    
funding.  She thanked  the committee  again for  the support                                                                    
for early childhood education.                                                                                                  
3:01:20 PM                                                                                                                    
DENICE   GILROY,  ARCTIC   ACCESS  AND   INDEPENDENT  LIVING                                                                    
NETWORK,  NOME (via  teleconference), thanked  the   members                                                                    
for the  increments for assisted  living. She worked  for an                                                                    
independent  living center,  which was  one of  four in  the                                                                    
3:03:24 PM                                                                                                                    
ELLEN GANLEY,  SELF, FAIRBANKS (via  teleconference), called                                                                    
to encourage  members to  support a  13 percent  increase to                                                                    
senior  services grants.  The  services cost  an average  of                                                                    
$509 per day.  She spoke of support for  family care givers.                                                                    
She relayed that she and  her sister found themselves having                                                                    
to support their  father. She shared that  they had enrolled                                                                    
in  classes that  made a  huge  impact on  their lives.  She                                                                    
remarked  that   they  were  able   to  make   their  father                                                                    
comfortable and  safe, very important elements  at the time.                                                                    
Otherwise, he  would have been  in a nursing home.  She felt                                                                    
the power of the services and asked for continued support.                                                                      
Representative LeBon thanked the testifier for calling in.                                                                      
3:06:11 PM                                                                                                                    
WILLIAM EDWARDS,  ARCTIC ACCESS, NOME  (via teleconference),                                                                    
spoke  in support  of HB  281.  He spoke  of experiencing  a                                                                    
severe  head  injury.  Denise Gilroy  helped  him  with  his                                                                    
situation  through  Arctic  Access.  He  spoke  of  all  the                                                                    
services  provided. He  thought many  people would  not have                                                                    
the benefit of Arctic Access.                                                                                                   
3:08:39 PM                                                                                                                    
JON  ERICKSON, CITY  MANAGER, YAKUTAT  (via teleconference),                                                                    
spoke in  support of the  AMHS and community  assistance. He                                                                    
also asked for  support for the harbor. He  urged members to                                                                    
keep the city's  harbor project alive. He spoke  of the need                                                                    
to extend the city's waterline.                                                                                                 
Co-Chair  Foster noted  he had  mentioned the  harbor budget                                                                    
and he would see it in the capital budget.                                                                                      
Mr. Erickson wanted to make sure he mentioned it.                                                                               
3:11:28 PM                                                                                                                    
RONDA BURNETT, ARCTIC ACCESS, NOME   (via   teleconference),                                                                    
testified  in support  of  funding  independent living.  She                                                                    
remarked that  Artic Access worked closely  with the reentry                                                                    
program for those people being released from jail.                                                                              
3:12:32 PM                                                                                                                    
NICKY  EISEMAN,  SELF,  ESTER (via  teleconference),  was  a                                                                    
librarian and  4th grade teacher.  She spoke in favor  of an                                                                    
increased BSA. She  spoke about the funding  issues that she                                                                    
and others  in the  Fairbanks North-Star Borough  have faced                                                                    
in  recent  years.  She  remarked on  the  lack  of  funding                                                                    
increases, and stressed                                                                                                         
Representative  Wool thanked  the testifier  for calling  in                                                                    
and  appreciated  her  contribution to  the  Fairbanks  News                                                                    
3:16:04 PM                                                                                                                    
LANCE    JOHNSON,   NORTON    SOUND   HEALTH,    NOME   (via                                                                    
teleconference),  thanked   members  for  the   increase  to                                                                    
behavioral  grant funding,  and stressed  that flat  funding                                                                    
was no longer sufficient to fill the needs.                                                                                     
3:18:31 PM                                                                                                                    
KARA  MORIARTY, ALASKA  OIL AND  GAS ASSOCIATION,  ANCHORAGE                                                                    
(via  teleconference),  thanked  members for  including  the                                                                    
governor's  oil  tax credits  and  the  $60 million  in  the                                                                    
supplemental budget. She spoke  in support of supporting the                                                                    
oil and gas industry.                                                                                                           
3:20:00 PM                                                                                                                    
AMBER VASKA,  TANANA CHIEFS  CONFERENCE AND  ALASKA REGIONAL                                                                    
COALITION,  FAIRBANKS (via  teleconference), spoke  in favor                                                                    
of   the  subcommittee   increments  specifically   for  the                                                                    
increase  increment for  Medicaid; supported  the governor's                                                                    
proposal  for full  funding  of  community assistance;  also                                                                    
supported  public  broadcasting;  and supported  the  budget                                                                    
items related to the Village Public Safety Officer Program.                                                                     
Co-Chair Merrick encourage the  testifier to provide written                                                                    
testimony for the remainder of her testimony.                                                                                   
3:23:00 PM                                                                                                                    
TOM CHARD,  ALASKA BEHAVIORAL HEALTH  ASSOCIATION, FAIRBANKS                                                                    
(via   teleconference),   asked   members  to   reject   the                                                                    
governor's cut to behavioral  health treatment and recovery,                                                                    
and  support a  modest increase  to the  programs. He  asked                                                                    
members to look  for ways to continue  to support behavioral                                                                    
3:24:15 PM                                                                                                                    
KATIE  BENDER,  PRESIDENT  OF BOARD,  UNIVERSITY  OF  ALASKA                                                                    
ANCHORAGE     ALUMNI     ASSOCIATION,     ANCHORAGE     (via                                                                    
teleconference),  expressed support  for  the University  of                                                                    
Alaska's budget.  Her company  believed in  hiring Alaskans,                                                                    
because  it  was  important  to look  at  investing  in  the                                                                    
state's future.                                                                                                                 
3:25:18 PM                                                                                                                    
RANDI SWEET,  SELF, SELDOVIA (via teleconference),  spoke in                                                                    
support  of  the  $912  million  to  senior  community-based                                                                    
3:26:38 PM                                                                                                                    
CRYSTAL    NYGARD,   CITY    OF   WASILLA,    WASILLA   (via                                                                    
teleconference),  spoke in  support of  the GO  Bonds, which                                                                    
included  the   development  of  the  Wasilla   Airport  and                                                                    
Co-Chair Merrick  noted that the  GO Bonds were not  part of                                                                    
the operating budget.                                                                                                           
3:28:00 PM                                                                                                                    
KEISHA SIMMONS, SELF,  FAIRBANKS (via teleconference), spoke                                                                    
in  support of  funding  for the  intellectual/developmental                                                                    
disability waiver waitlist. She  hoped the legislature would                                                                    
work to get people off the wait list.                                                                                           
3:29:31 PM                                                                                                                    
BERT  HOUGHTALING,  SELF,  BIG  LAKE  (via  teleconference),                                                                    
spoke of  a "law maker  versus a  law breaker." He  spoke in                                                                    
opposition  of an  increase to  the BSA  of $50  million. He                                                                    
noted the conflicting  laws of the POMV and the  PFD law. He                                                                    
compared  legislators to  drunken sailors.  He noted  gas at                                                                    
the pump had jumped by 50 cents.                                                                                                
Co-Chair  Merrick clarified  that  the  BSA increment  would                                                                    
only pass if BSA legislation did not pass.                                                                                      
3:32:22 PM                                                                                                                    
BRANDY  HARTY, SELF,  FAIRBANKS (via  teleconference), spoke                                                                    
in support  of funding  education. She  reviewed all  of the                                                                    
benefits of robust schools with  proper funding. She had two                                                                    
elementary school-aged  children. She  was a  dual certified                                                                    
teacher.  she  was  aware  of  the  devastating  effects  of                                                                    
teacher  layoffs.  She  urged members  to  effectively  fund                                                                    
Alaska's schools.                                                                                                               
3:33:56 PM                                                                                                                    
GARRISON  COLLETTE,  SELF, FAIRBANKS  (via  teleconference),                                                                    
worked in the energy field.  He provided a brief background.                                                                    
He asked  or an increase  in the tax investment.  The fossil                                                                    
fuel  industry  was  not  being honest,  and  in  Alaska  90                                                                    
percent of energy was reserved for mining.                                                                                      
3:35:56 PM                                                                                                                    
MARY DAVID, KAWERIK  CORPORATION, NOME (via teleconference),                                                                    
spoke  in  support of  VPSO  funding  in the  Department  of                                                                    
Public Safety  (DPS) budget. Her corporation  also supported                                                                    
the increment for the BSA,  and funding for pre-K education.                                                                    
She also spoke in support of public broadcasting.                                                                               
3:37:56 PM                                                                                                                    
THERESA  REED,  SELF,  FAIRBANKS (via  teleconference),  had                                                                    
been  in Fairbanks  since 1964.  She  encouraged members  to                                                                    
support  the  BSA increase.  She  thought  that if  Alaska's                                                                    
education was  not strong,  the state  would not  be strong.                                                                    
She thanked members for their work.                                                                                             
3:39:31 PM                                                                                                                    
RANDY GRIFFIN,  SELF, FAIRBANKS (via  teleconference), spoke                                                                    
in  support of  the  tax credit  payments  to oil  companies                                                                    
because of  the message it  sent to investors in  the state.                                                                    
He reported sending  his check back to  the state explaining                                                                    
why he was sending it. He  was under the impression that the                                                                    
state had  not repaid  the CBR. He  thought that  because it                                                                    
was  a constitutional  requirement.  It be  paid before  oil                                                                    
prices crash  again. He also thought  people should consider                                                                    
changing the  collective bargaining  agreement, as  it would                                                                    
save significant funding.                                                                                                       
Representative LeBon thanked the testifier for calling in.                                                                      
3:42:43 PM                                                                                                                    
DENNIS  BOYER, SELF,  WASILLA  (via  teleconference), was  a                                                                    
retired  teacher.  He  had   seen  significant  changes.  He                                                                    
thought the state had a  problem with Alaska's education. He                                                                    
supported  reinstating a  defined benefits  package. He  had                                                                    
heard feedback  from teachers  in the  Lower 48  that Alaska                                                                    
had the  worst benefits  package in  the system.  He thought                                                                    
teachers  should  be  able to  contribute  to  a  retirement                                                                    
system.  The  state  needed  to   do  something  to  attract                                                                    
3:45:04 PM                                                                                                                    
TIMOTHY LEDNA,  FAIRBANKS REENTRY COALITION,  FAIRBANKS (via                                                                    
teleconference),   called  to   support   funding  for   the                                                                    
behavioral health  grants. He asked  members to  continue to                                                                    
support  the  budget   initiatives  he  mentioned  regarding                                                                    
behavioral and mental health funding.                                                                                           
3:46:55 PM                                                                                                                    
CARRIE  HARRIS,  SELF,  ANCHOR POINT  (via  teleconference),                                                                    
spoke  in  opposition  of the  operating  budget.  She  made                                                                    
several  reduction recommendations.  However, she  supported                                                                    
additional  funding for  DPS and  Department of  Corrections                                                                    
(DOC). She encouraged members to put  AK 47s in the hands of                                                                    
3:48:39 PM                                                                                                                    
DARLENE  SUPPLEE,   EXECUTIVE  DIRECTOR,   FAIRBANKS  SENIOR                                                                    
CENTER, FAIRBANKS  (via teleconference),  supporting funding                                                                    
services for  seniors. She  advocated providing  safety nets                                                                    
for seniors in  the state. She suggested that  if Alaska did                                                                    
not provide  a net of  support in senior services,  the cost                                                                    
would be higher down the line in medical service.                                                                               
Representative LeBon  thanked the testifier for  all she did                                                                    
for the community of Fairbanks.                                                                                                 
3:50:58 PM                                                                                                                    
NICOLE ZEGIESTOWSKY,  SELF, ANCHORAGE  (via teleconference),                                                                    
spoke in support  of the University of  Alaska budget. After                                                                    
3 years  of flat funding,  the university was in  great need                                                                    
of  additional  funds.  The  subcommittee's  recommendations                                                                    
were a great start.                                                                                                             
3:51:55 PM                                                                                                                    
BENJAMIN  JOHNSON, PRESIDENT  AND  CEO,  BLUE CREST  ENERGY,                                                                    
DALLAS (via  teleconference), thanked  members for  the bill                                                                    
for the remaining  payments of oil tax  credits. He remarked                                                                    
that  Alaska  had   a  promising  future  in   oil  and  gas                                                                    
Representative   LeBon  thanked   the   testifier  for   his                                                                    
3:53:57 PM                                                                                                                    
MARGE    STONEKING,    AARP     ALASKA,    ANCHORAGE    (via                                                                    
teleconference),  spoke  in   support  of  restoring  Public                                                                    
Assistance positions in senior services.                                                                                        
3:56:25 PM                                                                                                                    
ERIC   GURLEY,   ACCESS    ALASKA   INC.,   ANCHORAGE   (via                                                                    
teleconference),  spoke in  support  of  funding for  senior                                                                    
based community  grants as listed  in the  operating budget.                                                                    
He asked members to continue support of the measure.                                                                            
3:59:01 PM                                                                                                                    
SK  SON,  ANCHOR   HOUSE,  ANCHORAGE  (via  teleconference),                                                                    
supported  the  proposed   increase  for  behavioral  health                                                                    
grants.  He  spoke  of  the   challenges  he  has  had  with                                                                    
providing services.                                                                                                             
4:00:57 PM                                                                                                                    
CARL  WEISNER,  NORTHWEST   ARCTIC  BOROUGH,  KOTZEBUE  (via                                                                    
teleconference), spoke  in support  of the School  Bond Debt                                                                    
Reimbursement funding  and BSA funding. He  provided details                                                                    
about  what projects  would be  funded. He  also appreciated                                                                    
the included  VPSO intent language.  He thanked  members for                                                                    
their work.                                                                                                                     
4:01:22 PM                                                                                                                    
SUZI PEARSON,  ABUSED WOMEN'S AID IN  CRISIS, ANCHORAGE (via                                                                    
teleconference),  thanked  members   for  supporting  Abused                                                                    
Women's  Aid in  Crisis (AWAIC),  and pointed  out the  full                                                                    
funding of the program. She  asked for continued support for                                                                    
Council  on Domestic  Violence  and  Sexual Assault  (CDVSA)                                                                    
funding. She shared the where  the funding would be directed                                                                    
and personal stories within AWAIC.                                                                                              
4:01:22 PM                                                                                                                    
KALEENE  LAMB, SELF,  FAIRBANKS (via  teleconference), spoke                                                                    
in  support   of  behavioral  health   grants.  She   had  a                                                                    
disability   and  appreciated   the   proposed  budget   for                                                                    
independent living.                                                                                                             
Representative LeBon  thanked the testifier for  calling in,                                                                    
because she "had ended the  public testimony on an uplifting                                                                    
Co-Chair  Foster  reviewed  the  agenda  for  the  following                                                                    
meeting. He  reminded folks they  could also  submit written                                                                    
HB  281  was  HEARD  and   HELD  in  committee  for  further                                                                    
HB  282  was  HEARD  and   HELD  in  committee  for  further                                                                    
4:08:45 PM                                                                                                                    
The meeting was adjourned at 4:08 p.m.                                                                                          

Document Name Date/Time Subjects
HB 281 CS WorkDraft v. N 030322.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 281 - HB 282 #5 HCS1 ARPA Rev Replacement Allocations.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 281- HB 282 #1 HCS1 UGF AgencySummary.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 281-HB 282 #2 HCS1 All Funds AgencySummary.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 281-HB 282 #3 Supp AgencySummary.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 281-HB 282 #4 TransComp.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 281-HB 282 #6 FY21 CBR Sweep from ACFR.pdf HFIN 3/4/2022 1:30:00 PM
HB 281
HB 282
HB 282 CS WorkDraft v. I 030222 .pdf HFIN 3/4/2022 1:30:00 PM
HB 282
HB 281 HF Public Testimony 03.04.22_redacted.pdf HFIN 3/4/2022 1:30:00 PM
HB 281