Legislature(2021 - 2022)SENATE FINANCE 532

06/12/2021 04:00 PM CONFERENCE COMMITTEE ON HB69 AND HB71

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05:33:55 PM Start
08:50:56 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 8:00 pm --
-- Delayed to 5:30 pm --
+= HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 71 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Operating Budget:
- Dept. of Health & Social Services
- Dept. of Law
- University of Alaska
- Fiscal Notes
Capital Budget
               32nd ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
                      SPEICAL SESSION                                                                                           
           CONFERENCE COMMITTEE ON HB 69 and HB 71                                                                              
                       June 12, 2021                                                                                            
                         5:33 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
5:33:55 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Foster called the Conference Committee meeting on HB
69 and HB 71 to order at 5:33 p.m.                                                                                              
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Neal Foster, Chair                                                                                               
Representative Kelly Merrick                                                                                                    
Representative Bart LeBon                                                                                                       
                                                                                                                                
Senate:                                                                                                                         
Senator Bert Stedman, Vice-Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
Alexei Painter, Director, Legislative Finance Division                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 69     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 69 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 71     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 71 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 69(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  and   making  capital  appropriations,                                                                    
    supplemental appropriations, and reappropriations."                                                                         
                                                                                                                                
SCS CSHB 69(FIN) AM S                                                                                                         
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making    capital    appropriations,                                                                    
     supplemental appropriations,  and reappropriations; and                                                                    
     providing for an effective date."                                                                                          
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 71(FIN) am                                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive    mental    health    program;    making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 71(FIN)                                                                                   
                                                                                                                                
     "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."                                                                                          
                                                                                                                                
Chair  Foster  invited  Alexei   Painter,  Director  of  the                                                                    
Legislative Finance  Division to  join the committee  at the                                                                    
table. He noted that the  committee would be addressing open                                                                    
items  in  HB 69  and  HB  71  based  on the  motion  sheets                                                                    
distributed to  members and dated  June 12th (copy  on file)                                                                    
on the departments of:                                                                                                          
                                                                                                                                
     FY 22 OPERATING BUDGET:                                                                                                  
                                                                                                                                
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF LAW                                                                                                          
     UNIVERSITY OF ALASKA                                                                                                       
     FISCAL NOTES                                                                                                               
                                                                                                                                
     FY 22 CAPITAL BUDGET:                                                                                                    
                                                                                                                                
     DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC                                                                             
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF CORRECTIONS                                                                                                  
     DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                              
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF FISH AND GAME                                                                                                
     OFFICE OF THE GOVERNOR                                                                                                     
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     DEPARTMENT OF LAW                                                                                                          
     DEPARTMENT OF MILITARY AND VETERAN AFFAIRS                                                                                 
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
     DEPARTMENT OF REVENUE                                                                                                      
    DEPARTMENT OF TRANSPORTATIONS AND PUBLIC FACILITIES                                                                         
     UNIVERSITY                                                                                                                 
     JUDICIARY                                                                                                                  
     MENTAL HEALTH                                                                                                              
                                                                                                                                
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                     
                                                                                                                                
5:34:49 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman MOVED to ADOPT the following within the                                                                      
Department of Health and Social Services budget:                                                                                
                                                                                                                                
     Item 35  Open                                                                                                              
     Item 36  Open                                                                                                              
     Item 42  House      Both items                                                                                             
     Item 43  House      Modify intent to read: "it is the                                                                      
                         intent of the legislature that the                                                                     
               department draw up to 70 new                                                                                     
                         individuals from the intellectual                                                                      
              and Developmental Disabilities                                                                                    
                         waiver waitlist in FY22 to receive                                                                     
              services. The department shall                                                                                    
                         submit a waiver amendment to the                                                                       
                         Centers for Medicare and Medicaid                                                                      
                         to ensure costs for this increased                                                                     
                         draw will be matched with federal                                                                      
                         dollars."                                                                                              
     Item 44   Open                                                                                                             
     Item 45   Open                                                                                                             
     Item 46   Open                                                                                                             
     Item 47   Open                                                                                                             
                                                                                                                                
There being NO OBJECTION, items 35, 36, and 42 through 47                                                                       
within the Department of Health and Social Services budget                                                                      
were ADOPTED.                                                                                                                   
                                                                                                                              
^DEPARTMENT OF LAW                                                                                                            
                                                                                                                                
5:36:02 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman MOVED to ADOPT the following within the                                                                      
Debt Service budget:                                                                                                            
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House                                                                                                            
     Item 3    Senate                                                                                                           
     Item 4    House                                                                                                            
     Item 5    Senate                                                                                                           
     Item 6    Senate                                                                                                           
     Item 7    Senate                                                                                                           
     Item 8    Senate                                                                                                           
     Item 9    Senate                                                                                                           
     Item 10   Senate                                                                                                           
     Item 11  House                                                                                                             
     Item 12   House                                                                                                            
     Item 13  House      Modify, Fund source swap 1235                                                                          
                         (AGDC-LNG) to 1004 (UGF)                                                                               
     Item 14  House      Modify, Fund Source swap 1004                                                                          
                         (UGF) to 1007 (I/A Receipts)                                                                           
     Item 15  House                                                                                                             
                                                                                                                                
Chair Foster OBJECTED for an explanation.                                                                                       
                                                                                                                                
5:37:34 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:39:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman clarified the page numbers in the                                                                            
previous motion.                                                                                                                
                                                                                                                                
Representative LeBon looked at  the items for the Department                                                                    
of Law. He asked if any items had been left open.                                                                               
                                                                                                                                
Chair Foster answered that the  motion would close all items                                                                    
within the Department of Law budget.                                                                                            
                                                                                                                                
Chair Foster WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO further OBJECTION,  items 1 through 15 within                                                                    
the Department of Law budget were ADOPTED.                                                                                      
                                                                                                                              
^UNIVERSITY OF ALASKA                                                                                                         
                                                                                                                                
5:40:55 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Fund Capitalization budget:                                                                                                     
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House                                                                                                            
     Item 3    House     Modify, to replace $20 million in                                                                      
                         language with $10 million                                                                              
                                                                                                                                
Representative LeBon OBJECTED to item  1. He stated that the                                                                    
University  was best  suited  with  a single  appropriation,                                                                    
which had been passed by the  House. He elaborated that in a                                                                    
period of  declining budget funding the  method provided the                                                                    
University  with more  flexibility  to  allocate money  more                                                                    
efficiently. He objected to  the two separate appropriations                                                                    
included in the budget passed by the Senate.                                                                                    
                                                                                                                                
5:41:52 PM                                                                                                                    
                                                                                                                                
Senator  Olson  agreed  with Representative  LeBon.  He  had                                                                    
discussed  the issue  with individuals  from the  University                                                                    
who   had  communicated   a   preference   for  the   single                                                                    
appropriation despite the fact there  was less money than in                                                                    
two appropriations.                                                                                                             
                                                                                                                                
Chair Foster  asked if there  were objections to any  of the                                                                    
other items.                                                                                                                    
                                                                                                                                
Representative LeBon OBJECTED to item  3. He objected to the                                                                    
reduction  in  receipt authority  from  $20  million to  $10                                                                    
million.  He believed  the  receipt  authority would  better                                                                    
serve the University  at $20 million versus  $10 million. He                                                                    
recommended the committee consider  increasing the number to                                                                    
$20  million. He  added that  the receipt  authority funding                                                                    
included  federal,  tuition,  and   any  other  sources.  He                                                                    
highlighted  that  during  a period  of  declining  budgets,                                                                    
giving the  University the  added tool  to seek  out funding                                                                    
from  any available  fund sources  showed  support from  the                                                                    
legislature.                                                                                                                    
                                                                                                                                
Chair Foster  noted there had  been no objection to  item 2.                                                                    
There being NO OBJECTION, item 2 was ADOPTED.                                                                                   
                                                                                                                                
Chair Foster  asked Representative  LeBon and  Senator Olson                                                                    
if they maintained the objection to item 1.                                                                                     
                                                                                                                                
Representative  LeBon  and   Senator  Olson  MAINTAINED  the                                                                    
OBJECTION.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion to adopt item 1.                                                                       
                                                                                                                                
IN FAVOR: Representative     Foster,    Senator     Stedman,                                                                    
Representative Merrick, Senator Bishop                                                                                          
OPPOSED: Representative LeBon, Senator Olson                                                                                    
                                                                                                                                
The MOTION  PASSED (4/2). There being  NO further OBJECTION,                                                                    
item 1 was ADOPTED.                                                                                                             
                                                                                                                                
5:44:46 PM                                                                                                                    
                                                                                                                                
Chair Foster  returned to  item 3 to  accept $10  million in                                                                    
receipt authority.                                                                                                              
                                                                                                                                
Representative  LeBon clarified  his desire  to use  the $20                                                                    
million receipt authority figure.                                                                                               
                                                                                                                                
Chair  Foster   explained  that  the   conference  committee                                                                    
recommendation  was to  replace the  $20 million  in receipt                                                                    
authority with $10  million. The proposal was  to accept the                                                                    
$10 million.                                                                                                                    
                                                                                                                                
Representative LeBon OBJECTED to the reduction.                                                                                 
                                                                                                                                
Chair Foster  asked if there  was any further  discussion on                                                                    
item 3.  He clarified  that the  question for  the committee                                                                    
was whether  or not  to accept  the House  position modified                                                                    
from $20  million to  $10 million  in receipt  authority for                                                                    
the University.                                                                                                                 
                                                                                                                                
Representative LeBon  asked for verification that  the House                                                                    
had proposed $20 million in receipt authority.                                                                                  
                                                                                                                                
Chair Foster agreed. He noted  that the conference committee                                                                    
proposal was to reduce the figure to $10 million.                                                                               
                                                                                                                                
Representative LeBon asked if he  could move to amend item 3                                                                    
to  increase the  figure to  $20 million.  Alternatively, he                                                                    
wondered if  he should just  speak against the  reduction to                                                                    
$10 million.  He wanted the  receipt authority to  remain at                                                                    
$20 million.                                                                                                                    
                                                                                                                                
Chair Foster believed an amendment could be offered.                                                                            
                                                                                                                                
5:46:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:48:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Chair  Foster  asked  if Representative  LeBon  had  decided                                                                    
against proposing an amendment.                                                                                                 
                                                                                                                                
Representative  LeBon answered  that  he would  not make  an                                                                    
amendment.  He did  not want  to  lose the  $10 million.  He                                                                    
WITHDREW his OBJECTION.                                                                                                         
                                                                                                                                
Chair Foster clarified that it  sounded like amendments to a                                                                    
motion were not part of the conference committee process.                                                                       
                                                                                                                                
There being NO further OBJECTION, item 3 was ADOPTED.                                                                           
                                                                                                                                
^FISCAL NOTES                                                                                                                 
                                                                                                                                
5:49:55 PM                                                                                                                    
                                                                                                                                
Chair Foster addressed the fiscal  note packet for HB 69 and                                                                    
HB 71.                                                                                                                          
                                                                                                                                
Vice-Chair   Stedman  MOVED   to  ADOPT   the  fiscal   note                                                                    
appropriation packet for HB 69 and HB 71.                                                                                       
                                                                                                                                
Chair Foster OBJECTED for purpose of explanation.                                                                               
                                                                                                                                
Vice-Chair Stedman explained the following:                                                                                     
                                                                                                                              
   1. The packet makes appropriations associated with the                                                                       
     bills listed.                                                                                                              
   2. If a bill is vetoed by the Governor, the                                                                                  
     appropriations associated with that bill are removed                                                                       
     from the operating budget.                                                                                                 
   3. The attached reports prepared by the Legislative                                                                          
     Finance Division list the fund sources and agencies                                                                        
     associated with the bill.                                                                                                  
                                                                                                                                
Chair Foster  noted that one  of the items pertained  to the                                                                    
governor's Public Employees'  Retirement System (PERS) bill.                                                                    
He asked Mr. Painter to explain both bills.                                                                                     
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,   LEGISLATIVE  FINANCE  DIVISION                                                                    
explained that the one complicated  fiscal note pertained to                                                                    
SB 55,  the employer contribution  to PERS. He  referenced a                                                                    
statement  at  the  beginning of  the  fiscal  note  section                                                                    
explaining   that  the   fiscal   notes  were   incorporated                                                                    
throughout  the   bills  because   it  had  the   effect  of                                                                    
decreasing funding  for the retirement line  in the language                                                                    
section  and  increasing  funding  for  state  agencies  all                                                                    
throughout  the  budget.  He  elaborated  that  rather  than                                                                    
listing hundreds  of allocations  in the fiscal  note, there                                                                    
was a report listing the  items, which would be adopted into                                                                    
Section   1.  The   language  portions   dealing  with   the                                                                    
retirement  system  and  the Alaska  Marine  Highway  System                                                                    
would be incorporated into the language section.                                                                                
                                                                                                                                
Chair  Foster  asked Mr.  Painter  to  touch on  the  fiscal                                                                    
impact.                                                                                                                         
                                                                                                                                
Mr. Painter  explained that bill increased  funding to state                                                                    
agencies  to pay  for the  higher  employer contribution  to                                                                    
PERS  and decreased  the state  assistance funding.  The net                                                                    
fiscal  impact in  unrestricted  general funds  (UGF) was  a                                                                    
savings of approximately $23 million between the two bills.                                                                     
                                                                                                                                
Chair Foster WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being  NO further  OBJECTION, the fiscal  note packets                                                                    
for HB 69 and HB 71 were ADOPTED.                                                                                               
                                                                                                                                
5:52:56 PM                                                                                                                    
                                                                                                                                
Chair Foster relayed that the  committee would recess. There                                                                    
was a possibility of returning later in the evening.                                                                            
                                                                                                                                
Senator Olson asked if the  committee could potentially meet                                                                    
again later in the day.                                                                                                         
                                                                                                                                
Chair Foster Agreed. He RECESSED the meeting.                                                                                   
                                                                                                                                
5:53:46 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
8:25:09 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Chair Foster  relayed that the committee  would hear capital                                                                    
budget  items. He  detailed that  the budget  included state                                                                    
matching  funds   to  leverage  federal  funds   for  roads,                                                                    
airports, and  sanitation systems.  The capital  budget also                                                                    
included  some  items  from   the  general  obligation  bond                                                                    
proposal  considered   earlier  in  the   session  including                                                                    
projects   on  the   Statewide  Transportation   Improvement                                                                    
Program  (STIP) list,  the Airport  Improvement (AIP)  list,                                                                    
and a  handful of other  items. He reported that  the motion                                                                    
sheets included items on the departments of:                                                                                    
                                                                                                                                
     FY 22 CAPITAL BUDGET                                                                                                     
                                                                                                                                
     DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC                                                                             
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF CORRECTIONS                                                                                                  
     DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                              
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF FISH AND GAME                                                                                                
     OFFICE OF THE GOVERNOR                                                                                                     
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     DEPARTMENT OF LAW                                                                                                          
     DEPARTMENT OF MILITARY AND VETERAN AFFAIRS                                                                                 
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
     DEPARTMENT OF REVENUE                                                                                                      
    DEPARTMENT OF TRANSPORTATIONS AND PUBLIC FACILITIES                                                                         
     UNIVERSITY                                                                                                                 
     JUDICIARY                                                                                                                  
     MENTAL HEALTH                                                                                                              
                                                                                                                                
8:27:09 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
capital budget:                                                                                                                 
                                                                                                                                
     Item 1    Senate    Both items                                                                                             
     Item 2    Senate                                                                                                           
     Item 3    Senate    Both items                                                                                             
     Item 4-7  Senate    All items                                                                                              
     Item 8    Senate                                                                                                           
     Item 9    Senate                                                                                                           
     Item 10  Senate     Modify, from grants to named                                                                           
                  recipients to grants to                                                                                       
                         municipalities                                                                                         
     Item 11  Senate     Modify, from grants to named                                                                           
                  recipients to grants to                                                                                       
                         municipalities                                                                                         
     Item 12 Open                                                                                                               
     Item 13 Senate                                                                                                             
     Item 14 Open                                                                                                               
                                                                                                                                
Senator  Olson  OBJECTED  to  item 8  related  to  the  West                                                                    
Susitna Road access for $8.5 million.                                                                                           
                                                                                                                                
Chair Foster  set aside  item 8.  There being  NO OBJECTION,                                                                    
items 1 through 7 and 9 through 14 were ADOPTED.                                                                                
                                                                                                                                
Senator Olson addressed  his objection to item  8 related to                                                                    
the  West  Susitna  Road access.  He  asked  for  additional                                                                    
information. He remarked  that the road had  been studied in                                                                    
detail  and there  was currently  only a  small access  road                                                                    
that was closed part of the year.                                                                                               
                                                                                                                                
Senator  Bishop  answered  that  the  $8.5  million  was  to                                                                    
continue the permitting and field work for the project.                                                                         
                                                                                                                                
Senator  Olson  asked  which   project  Senator  Bishop  was                                                                    
referring to.                                                                                                                   
                                                                                                                                
Senator Bishop  stated it was  the West Susitna  Road access                                                                    
project.                                                                                                                        
                                                                                                                                
Mr.  Painter  provided  clarification  on  the  fund  source                                                                    
identified as 1002 federal receipts.  He believed it was the                                                                    
intent  of the  committee to  revisit the  fund source  in a                                                                    
future meeting.                                                                                                                 
                                                                                                                                
Senator  Olson  asked  for   clarification  on  the  funding                                                                    
source.                                                                                                                         
                                                                                                                                
Mr. Painter relayed  that the Senate version  had funded the                                                                    
item  with  federal receipts.  He  explained  that the  fund                                                                    
source was  hollow authorization  with the intent  to change                                                                    
to a different fund source in the future.                                                                                       
                                                                                                                                
Senator Olson thought the method sounded unusual.                                                                               
                                                                                                                                
Vice-Chair Stedman  asked if the forthcoming  adjustments of                                                                    
fund sources should be explained.                                                                                               
                                                                                                                                
Chair Foster  asked if Vice-Chair  Stedman was  referring to                                                                    
something specific.                                                                                                             
                                                                                                                                
Vice-Chair Stedman  explained that  the fund source  for the                                                                    
project would be reviewed and  changed from federal receipts                                                                    
the following day.                                                                                                              
                                                                                                                                
8:30:57 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:32:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Olson  MAINTAINED his OBJECTION  to the  adoption of                                                                    
item 8.                                                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Senator     Bishop,    Representative     Merrick,                                                                    
Representative   LeBon,   Senator  Stedman,   Representative                                                                    
Foster                                                                                                                          
OPPOSED: Senator Olson                                                                                                          
                                                                                                                                
The MOTION  PASSED (5/1). There being  NO further OBJECTION,                                                                    
item  8 within  the  Department of  Commerce, Community  and                                                                    
Economic Development capital budget was ADOPTED.                                                                                
                                                                                                                                
There being NO further OBJECTION,  items 1 through 14 within                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development capital budget were ADOPTED.                                                                                        
                                                                                                                                
8:34:02 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Department of Corrections capital budget:                                                                         
                                                                                                                                
     Item 1 Senate                                                                                                              
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
8:34:14 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department  of  Education   and  Early  Development  capital                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1-3 Senate                                                                                                            
                                                                                                                                
Representative LeBon  OBJECTED for discussion. He  asked for                                                                    
background  on the  Houston  middle  school replacement.  He                                                                    
believed  the school  needed replacement  due to  earthquake                                                                    
damage.  He asked  for a  summary of  the total  replacement                                                                    
funds needed for  the project. He believed  the project cost                                                                    
exceeded the $9 million increment under discussion.                                                                             
                                                                                                                                
Mr.  Painter  answered  that   the  increments  reflected  a                                                                    
portion of  the cost. The  additional portion would  be paid                                                                    
through   FEMA   [Federal   Emergency   Management   Agency]                                                                    
reimbursement  and  insurance. He  did  not  have the  exact                                                                    
amounts of  the other reimbursements. He  explained that the                                                                    
capital budget increment reflected the remaining costs.                                                                         
                                                                                                                                
Representative LeBon  recalled the  discussion in  the House                                                                    
Finance  Committee. He  thought the  school replacement  was                                                                    
closer to $25 million.                                                                                                          
                                                                                                                                
Chair Foster asked Mr. Painter  if he knew the total project                                                                    
cost.                                                                                                                           
                                                                                                                                
Mr. Painter  answered that he  did not want to  speculate on                                                                    
the total.                                                                                                                      
                                                                                                                                
Representative  LeBon   highlighted  that  the   total  cost                                                                    
exceeded $9 million. He WITHDREW his OBJECTION.                                                                                 
                                                                                                                                
There being NO  further OBJECTION, items 1  through 3 within                                                                    
the Department  of Education  and Early  Development capital                                                                    
budget were ADOPTED.                                                                                                            
                                                                                                                                
8:36:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Environmental Conservation capital budget:                                                                        
                                                                                                                                
     Item 1-2  Senate                                                                                                           
     Item 3-4  Senate    All items                                                                                              
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  4 within  the                                                                    
Department  of  Environmental  Conservation  capital  budget                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
8:36:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Fish and Game capital budget:                                                                                     
                                                                                                                                
     Items 1-7 Senate    All items                                                                                              
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  7 within  the                                                                    
Department of Fish and Game capital budget were ADOPTED.                                                                        
                                                                                                                                
8:37:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Office of the Governor capital budget:                                                                                          
                                                                                                                                
     Items 1-2 Senate                                                                                                           
                                                                                                                                
There being  NO OBJECTION, items  1 and 2 within  the Office                                                                    
of the Governor capital budget were ADOPTED.                                                                                    
                                                                                                                                
8:37:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Health and Social Services capital budget:                                                                        
                                                                                                                                
     Items 1-3 Senate                                                                                                           
     Items 4-7 Senate                                                                                                           
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  7 within  the                                                                    
Department  of Health  and  Social  Services capital  budget                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
8:38:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department  of  Labor   and  Workforce  Development  capital                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1 Senate                                                                                                              
                                                                                                                                
Representative LeBon  OBJECTED for discussion. He  asked for                                                                    
more detail  on the  location of  the technical  center that                                                                    
would be upgraded.                                                                                                              
                                                                                                                                
Senator Bishop answered that the  location was in Seward. He                                                                    
elaborated  that the  item was  for  the state's  vocational                                                                    
training center,  which fell under  the jurisdiction  of the                                                                    
Department of  Labor and Workforce Development.  He detailed                                                                    
that the increment was for  housing that had been needed for                                                                    
16 years.                                                                                                                       
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There  being  NO  further  OBJECTION,   item  1  within  the                                                                    
Department  of  Labor   and  Workforce  Development  capital                                                                    
budget was ADOPTED.                                                                                                             
                                                                                                                                
8:38:57 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Law capital budget:                                                                                               
                                                                                                                                
     Item 1 Senate Both items                                                                                                   
                                                                                                                                
There being  NO OBJECTION, item  1 within the  Department of                                                                    
Law capital budget was ADOPTED.                                                                                                 
                                                                                                                                
8:39:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Military and Veterans Affairs capital budget:                                                                     
                                                                                                                                
     Items 1-4 Senate                                                                                                           
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  4 within  the                                                                    
Department of  Military and Veterans Affairs  capital budget                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
8:39:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Natural Resources capital budget:                                                                                 
                                                                                                                                
     Items 1-9 Senate All items                                                                                                 
     Items 10-21 Senate All Items                                                                                               
     Items 22-26 Senate                                                                                                         
     Items 27-36 Open                                                                                                           
                                                                                                                                
There  being NO  OBJECTION, items  1 through  36 within  the                                                                    
Department   of  Natural   Resources  capital   budget  were                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
8:40:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Public Safety capital budget:                                                                                     
                                                                                                                                
     Item 1-9 Senate                                                                                                            
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  9 within  the                                                                    
Department of Public Safety capital budget were ADOPTED.                                                                        
                                                                                                                                
8:40:43 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Revenue budget:                                                                                                   
                                                                                                                                
     Item 1-10 Senate All items                                                                                                 
                                                                                                                                
There  being NO  OBJECTION, items  1 through  10 within  the                                                                    
Department of Revenue capital budget were ADOPTED.                                                                              
                                                                                                                                
8:41:02 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Department of Transportation and Public Facilities budget:                                                                      
                                                                                                                                
     Items     1-9            Senate All items                                                                                  
     Item      10             Open                                                                                              
    Items     11-64          Senate All items with the                                                                          
                              exception of items 24 and 25                                                                      
                   which were duplicate                                                                                         
                              appropriations which would be                                                                     
                   House for the Airport                                                                                        
                              Improvement Program                                                                               
    Items     65-67          Senate All items (federal                                                                          
                              match program)                                                                                    
     Item      68-72          Senate All items (statewide                                                                       
                              federal programs)                                                                                 
    Items     73-207         Senate All items (Surface                                                                          
                              Transportation Program)                                                                           
                                                                                                                                
8:42:27 PM                                                                                                                    
                                                                                                                                
Senator Olson OBJECTED to item  39 related to parking garage                                                                    
repairs. He asked where the parking garage was located.                                                                         
                                                                                                                                
8:42:55 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:45:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman  clarified that  the last portion  of his                                                                    
motion for  items 73  through 207 were  on pages  24 through                                                                    
38.                                                                                                                             
                                                                                                                                
Mr. Painter responded to  Senator Olson's question regarding                                                                    
item  39.   He  stated  the   increment  was  part   of  the                                                                    
international  airports.  He  detailed  that  Anchorage  and                                                                    
Fairbanks  had the  two international  airports  run by  the                                                                    
state.  He  reported  that  only  Anchorage  had  a  parking                                                                    
garage; therefore, he had been  told the increment pertained                                                                    
to Anchorage.                                                                                                                   
                                                                                                                                
Senator Olson  stated that  he had  no further  comments [on                                                                    
item 39].                                                                                                                       
                                                                                                                                
Representative  LeBon  asked  about  item 91  related  to  a                                                                    
project  in  an  intersection  of  the  road  entering  Fort                                                                    
Wainwright. He  had concern about  the project.  He believed                                                                    
the nature of  the interchange would be better  served as an                                                                    
overpass   and   not   a   more   complicated,   interactive                                                                    
intersection. He suspected the  proposed project may be less                                                                    
expensive;  however,  he  believed an  overpass  would  have                                                                    
better long-term  use. He did not  know what good it  did to                                                                    
speak against  the project  design at  the current  point in                                                                    
the process, but he believed  the department was approaching                                                                    
the intersection in the wrong way.                                                                                              
                                                                                                                                
8:47:08 PM                                                                                                                    
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION to item 91.                                                                         
                                                                                                                                
Senator Olson WITHDREW his OBJECTION to item 39.                                                                                
                                                                                                                                
There  being  NO  further OBJECTION,  items  1  through  207                                                                    
within   the  Department   of   Transportation  and   Public                                                                    
Facilities capital budget were ADOPTED.                                                                                         
                                                                                                                                
8:47:44 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
University of Alaska capital budget:                                                                                            
                                                                                                                                
     Item 1-4 Senate all items                                                                                                  
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  4 within  the                                                                    
University of Alaska capital budget were ADOPTED.                                                                               
                                                                                                                                
8:48:02 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Judiciary capital budget:                                                                                                       
                                                                                                                                
     Item 1 Senate                                                                                                              
                                                                                                                                
There  being  NO  OBJECTION, item  1  within  the  Judiciary                                                                    
capital budget was ADOPTED.                                                                                                     
                                                                                                                                
8:48:23 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED to  ADOPT  the  following in  the                                                                    
Mental Health capital budget:                                                                                                   
                                                                                                                                
     Item 1 House                                                                                                               
     Item 2 House both items                                                                                                    
     Item 3 Senate                                                                                                              
     Item 4-7 House all items                                                                                                   
                                                                                                                                
8:48:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:49:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman corrected that item  1 House was only one                                                                    
item.                                                                                                                           
                                                                                                                                
There  being NO  OBJECTION,  items 1  through  7 within  the                                                                    
Mental Health capital budget were ADOPTED.                                                                                      
                                                                                                                                
Chair  Foster  clarified  that   the  items  discussed  were                                                                    
capital budget items.  He noted that the  Senate numbers had                                                                    
been adopted  for most of  the items. He explained  that the                                                                    
capital budget  had been rolled  into the  operating budget.                                                                    
He  thanked Senator  Bishop and  Representative Merrick  for                                                                    
their collaborative work on the package.                                                                                        
                                                                                                                                
Chair Foster indicated the committee  had covered the agenda                                                                    
for the day.                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman   MOVED  to  ADJOURN.  There   being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
8:50:56 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 8:50 p.m.                                                                                          

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