Legislature(2021 - 2022)SENATE FINANCE 532
05/27/2021 11:00 AM House CONFERENCE COMMITTEE ON HB69 AND HB71
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32ND ALASKA STATE LEGISLATURE
FIRST SESSION
SPECIAL SESSION
CONFERENCE COMMITTEE ON HB 69 and HB 71
May 27, 2021
11:08 a.m.
11:08:03 AM
CALL TO ORDER
Chair Foster called the Conference Committee meeting on
HB 69 and HB 71 to order at 11:08 a.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.
Chair Foster reviewed the agenda for the meeting.
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."
11:08:25 AM
Chair Foster invited Alexei Painter, Director of the
Legislative Finance Division to join the committee at the
table.
Chair Foster 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 May 27th (copy on file) on
the departments of:
FY 22 OPERATING
EDUCATION AND EARLY DEVELOPMENT
GOVERNOR
LABOR AND WORKFORCE DEVELOPMENT
NATURAL RESOURCES
PUBLIC SAFETY
REVENUE
TRANSPORTATION AND PUBLIC FACILITIES
JUDICIARY
LEGISLATURE
DEBT SERVICE ITEMS
FUND CAPITALIZATION
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT:
11:09:28 AM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Education and Early Development budget:
Item 1 Senate Both Items
Item 2 Senate
Item 3 Open
Item 4 Open
Item 5 Open
Item 6 House
Item 7 Senate Both Items
Item 8 Senate
Item 9 Senate
Item 10 Senate Both Items
Item 11 Senate
Senator Olson OBJECTED for discussion. He asked for an
explanation of item 6 related to the Mt. Edgecumbe Boarding
School. He asked how the $638,300 in interagency receipts
had been decided upon. He observed that the House number
had been chosen over the Senate number. He asked for
detail.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION
responded that typically in statute the carryforward amount
for school districts was limited to 10 percent of their
total budget, which was the number reflected in the Senate
item. He explained that HB 76, the disaster declaration
extension, waived the limitation. He elaborated that the
House language aligned with HB 76 that allowed school
districts to carryforward any amount of revenue for the
current year only.
Senator Olson asked for verification that the explanation
provided by Mr. Painter was how the $638,300 had been
determined.
Mr. Painter replied that $638,300 represented 10 percent of
Mt. Edgecumbe's operating budget.
Senator Olson referenced language in the motion sheets
[generated by the Legislative Finance Division (copy on
file)] regarding an unexpended appropriation. He asked if
the unexpended amount was included in the $638,300 or was
separate.
Mr. Painter answered that the $638,300 reflected 10 percent
of Mt. Edgecumbe's budget. He explained that the unexpended
amount the department would be allowed to carryforward was
currently uncertain.
Senator Olson WITHDREW his OBJECTION.
Vice-Chair Stedman stated his understanding the decision
had been made to not cap the number because there was a
likelihood there may be substantially more than $638,300.
Mr. Painter agreed. He elaborated that with the passage of
HB 76, not capping the increment was in line with statute
for the current year.
Vice-Chair Stedman WITHDREW his OBJECTION.
Senator Olson asked what the upper limit of the unexpended
funds may be.
Mr. Painter believed there was another item in the
supplemental capital that appropriated federal funds to Mt.
Edgecumbe that he estimated to be around $5 million. He
explained that if none of the federal funds were expended,
that would be the upper limit. He suspected a portion of
the federal funding would be spent, meaning the amount
would somewhere less than that.
Senator Olson asked if the increment related to FY 20 or FY
21.
Mr. Painter replied that the item pertained to FY 21
carrying forward into future years.
Senator Olson asked if the federal capital funding was for
FY 22.
Mr. Painter answered that the funds referred to by Senator
Olson were an FY 21 through FY 24 multiyear in the
supplemental motion sheet.
There being NO further OBJECTION, items 1 through 11 for
the Department of Education and Early Development were
ADOPTED.
^OFFICE OF THE GOVERNOR
11:13:57 AM
Vice-Chair Stedman MOVED to ADOPT the following within the
Office of the Governor budget:
Item 1 Open
Item 2 House
Item 3 Senate
Item 4 Senate
Item 5 Senate
There being NO OBJECTION, items 1 through 5 for the Office
of the Governor were ADOPTED.
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
11:14:30 AM
Vice-Chair Stedman MOVED to ADOPT the following items
within the Department of Labor and Workforce Development
budget:
Item 1 Senate
Item 2 Senate
Item 3 Senate
Item 4 Open
Item 5 Open
There being NO OBJECTION, items 1 through 5 for the
Department of Labor and Workforce Development were ADOPTED.
^DEPARTMENT OF NATURAL RESOURCES
11:15:14 AM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Natural Resource budget:
Item 1 Senate
Item 2 Open
Item 3 Open
Item 4 Open
Item 5 Open
Item 6 Senate
Item 7 House
Representative LeBon OBJECTED to item 1.
Chair Foster noted that item 1 would be set aside.
There being NO OBJECTION, items 2 through 7 for the
Department of Natural Resources were ADOPTED.
Chair Foster returned to item 1.
Representative LeBon stated that the item had been
introduced during the debate phase on the operating budget
by a House minority member and it had received bipartisan
support and a favorable vote. He recommended keeping the
language intact.
Chair Foster read the intent language included on the House
side pertaining to the Department of Natural Resources:
It is the intent of the legislature that the
Department of Natural Resources sell gravel or fill
extracted from state land at cost to any federal,
state, or local agency or public corporation working
on a public project not competing with private
industry.
Senator Olson clarified that the language read "at cost"
and not "at no cost" [Chair Foster inadvertently stated "at
no cost" when reading the intent language].
Vice-Chair Stedman asked for an explanation.
Chair Foster asked Mr. Painter if he had anything to add.
Mr. Painter replied that he did not have anything
additional on the topic.
Senator Bishop asked if the language would be set aside for
the day. He thought the House language may present a
constitutional problem.
Vice-Chair Stedman believed the item was redundant as he
thought it was already imbedded in the system.
Representative LeBon stated it was not his intent or the
intent of the maker of the amendment to go sideways with
any legal language. He recommended leaving the item open.
There being NO OBJECTION, item 1 for the Department of
Natural Resources was set aside.
^DEPARTMENT OF PUBLIC SAFETY
11:18:57 AM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Public Safety budget:
Item 1 House
Item 2 Senate Both Items
Item 3 House
Item 4 Open
Item 5 Open
Item 6 Senate
Item 7 Open
Item 8 Senate
Item 9 Open
There being NO OBJECTION, items 1 through 9 for the
Department of Public Safety were ADOPTED.
^DEPARTMENT OF REVENUE
11:19:54 AM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Revenue budget:
Item 1 Open
Item 2 House
Item 3 Senate
There being NO OBJECTION, items 1 through 3 for the
Department of Revenue were ADOPTED.
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
11:20:20 AM
Chair Foster informed the committee that with the
collaboration of the Department of Transportation and
Public Facilities (DOT) and the Office of Management and
Budget, a deal had been agreed upon that used the available
funds of Coronavirus Aid, Relief, and Economic Security
(CARES) Act and Coronavirus Response and Relief
Supplemental Appropriations Act (CRRSAA) funding along with
undesignated general funds (UGF) to ensure funding for
highways, aviation, and an 18-month funding plan for the
Alaska Marine Highway System (AMHS). He stated that the
work had been a long process that began in the House
subcommittee and was finalized when the Senate closed out
its budget. He relayed that many of the DOT items reflected
Senate conforming changes that better matched the use of
funds. He thanked the Senate for working on the issue with
the House.
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Transportation and Public Facilities budget:
Item 1 Senate Both Items
Item 2 Senate Both Items
Item 3 Senate Both Items
Item 4 Senate
Item 5 Senate Both Items
Item 6 Senate Both Items
Item 7 Senate Both Items
Item 8 Senate Both Items
Item 9 House
Item 10 Senate Both Items
Senator Olson OBJECTED to item 10 both items.
Chair Foster noted that item 10 would be set aside.
Vice-Chair Stedman continued with the motion to adopt items
within the Department of Transportation and Public
Facilities budget:
Item 11 Open
Item 12 Open
Item 13 Open
Item 14 Senate All Items
Item 15 Senate All Items
Item 16 Open
Item 17 Senate Both Items
Item 18 Senate All Items
Item 19 Senate Both Items
Item 20 Senate Both Items
Item 21 Senate Both Items
Senator Olson observed that AMHS was in every one of the
line items. He asked for the total funding provided to
AMHS. He noted that some of the items related to highways
and aviation.
Chair Foster stated that he would consider the objection to
be to all items. He asked Mr. Painter if he had the number
requested by Senator Olson.
Mr. Painter replied that he did not have the number. He
stated there was a tracking sheet available that could be
distributed to members showing where the federal funding
was in both bodies for DOT with the various COVID-related
sources [document titled "Federal COVID-19 Funding in
DOT&PF: House" (copy on file)].
11:24:03 AM
AT EASE
11:36:37 AM
RECONVENED
Chair Foster noted there had been an objection to all of
the Department of Transportation and Public Facilities
items.
Senator Olson WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 21 for
the Department of Transportation and Public Facilities were
ADOPTED.
Senator Olson asked if item 1 related to gravel had been
held over.
Chair Foster clarified that the item related to gravel was
within the Department of Natural Resources and had been set
aside for a future meeting.
Vice-Chair Stedman asked for verification that an item had
been left open.
11:37:53 AM
AT EASE
11:38:19 AM
RECONVENED
Chair Foster clarified that the motion for DOT was to adopt
all items. He explained that the motion as stated had
passed, which left a number of items open.
^JUDICIARY
11:38:56 AM
Vice-Chair Stedman MOVED to ADOPT the following within the
Judiciary budget:
Item 1 Senate
Item 2 House
There being NO OBJECTION, items 1 and 2 for the Judiciary
budget were ADOPTED.
^LEGISLATURE
11:39:20 AM
Vice-Chair Stedman MOVED to ADOPT the following within the
Legislature budget:
Item 1 House
Item 2 Senate
Item 3 House
Item 4 Senate
Item 5 Open
Item 6 Open
There being NO OBJECTION, items 1 through 6 for the
Legislature budget were ADOPTED.
^DEBT SERVICE
11:39:49 AM
Chair Foster stated that the House had passed its budget
prior to the issuance of the federal American Rescue Plan
Act (ARPA) guidelines. He explained that the Senate had
made certain the budget was following the guidelines
according to Treasury. He elaborated that many of the
following debt service appropriations reflected an
acceptance of Senate changes to conform to the federal
guidelines.
Vice-Chair Stedman MOVED to ADOPT the following in Debt
Service Appropriations:
Item 1 Open
Item 2 Senate Both Items
Item 3 Senate Both Items
Item 4 Senate Both Items
Item 5 Senate Both Items
Item 6 Senate Both Items
Item 7 Senate Both Items
Item 8 Senate Both Items
Item 9 Senate Both Items
Item 10 Senate Both Items
Item 11 Senate Both Items
Item 12 Senate Both Items
Item 13 Senate Both Items
Item 14 Senate Both Items
Item 15 Senate Both Items
Item 16 Open
Item 17 Open
Item 18 Senate Both Items
There being NO OBJECTION, items 1 through 18 in Debt
Service appropriations were ADOPTED.
^FUND CAPITALIZATIONS
11:41:08 AM
Vice-Chair Stedman MOVED to ADOPT the following in Fund
Capitalizations:
Item 1 Open
Item 2 Senate Both Items
Item 3 Senate Both Items
Item 4 Senate
Item 5 Senate
Item 6 Open
Item 7 Open
Item 8 Open
Item 9 Open
Item 10 Open
There being NO OBJECTION, items 1 through 10 in Fund
Capitalizations were ADOPTED.
Chair Foster relayed that when the next meeting date and
time had been determined, the details would be noticed on
BASIS on akleg.gov. He anticipated there may be a meeting
the following Tuesday.
Representative LeBon asked if there was a projected meeting
time for the Tuesday meeting.
Chair Foster replied that they were looking at late
afternoon.
Vice-Chair Stedman MOVED to ADJOURN. There being NO
OBJECTION, it was so ordered.
ADJOURNMENT
11:43:08 AM
The meeting was adjourned at 11:43 a.m.
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