Legislature(2015 - 2016)SENATE FINANCE 532
04/11/2016 02:00 PM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB200 | |
| SB210 | |
| SB138 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 138 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 200 | TELECONFERENCED | |
| += | SB 210 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 11, 2016
2:05 p.m.
2:05:52 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 2:05 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
Senator Pete Kelly, Co-Chair
ALSO PRESENT
Erin Shine, Staff, Senator Anna MacKinnon; Senator Mia
Costello, Sponsor; Sorcha Hazelton, Senator, Mia Costello;
Laura Cramer, Staff, Senator Anna Mackinnon.
SUMMARY
SB 138 BUDGET: CAPITAL
SB 138 was HEARD and HELD in committee for
further consideration.
SB 200 MANDATORY PHYSICAL ACTIVITY IN SCHOOLS
CSSB 200(FIN) was REPORTED out of committee with
no recommendation and with one previously
published zero fiscal note: FN 1 (EED).
SB 210 COMM. REV. SHARING;PROP. TAX EXEMPTIONS
CSSB 210(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new zero
fiscal note from the Senate Finance Committee for
the Department of Commerce, Community and
Economic Development
SENATE BILL NO. 200
"An Act relating to physical activity requirements for
students in kindergarten through grade eight."
2:07:00 PM
Vice-Chair Micciche MOVED to ADOPT the committee substitute
for SB 200, Work Draft 29-LS1350\H (Glover, 4/11/16).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
2:07:25 PM
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, highlighted the
changes in the committee substitute (CS). She noted the
technical change on Page 1, line 7; "grades kindergarten
through eight," had been reworded. She said that the second
change could be found on Line 10, where the words United
States Department of Health and Human Services had been
added. She relayed that Pahe 1, line 14, through Page 2,
line 4; Subsections 1 and 2 reworded language that had been
in the bill related to exemptions from participation in
physical activity.
2:08:39 PM
Co-Chair MacKinnon queried comments on the proposed
committee substitute.
2:09:00 PM
SORCHA HAZELTON, SENATOR, MIA COSTELLO, related that the
bill sponsor agreed with the changes in the CS.
2:09:18 PM
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
OBJECTION, the proposed committee substitute was adopted.
2:09:25 PM
Vice-Chair Micciche MOVED to report CSSB 200(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CSSB 200(FIN) was REPORTED out of committee with no
recommendation and with one previously published zero
fiscal note: FN 1 (EED).
2:09:54 PM
AT EASE
2:11:31 PM
RECONVENED
SENATE BILL NO. 210
"An Act relating to the community revenue sharing
program; changing the name of the community revenue
sharing program to the community assistance program;
and relating to the municipal property tax exemption
on the residence of a senior, a disabled veteran, and
a widow or widower of a senior or disabled veteran."
Vice-Chair Micciche moved to adopt the incorrect bill
version.
2:11:58 PM
AT EASE
2:12:12 PM
RECONVENED
Vice-Chair Micciche withdrew his motion.
2:12:20 PM
Vice-Chair Micciche MOVED to report CSSB 210(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
2:12:35 PM
Vice-Chair Micciche OBJECTED for DISCUSSION.
Vice-Chair Micciche commented on his struggle with the new
formula as it related to the distribution of funds between
communities. He felt that some communities would receive
more revenue than others, he announced his intention to
improve the formula.
2:13:28 PM
Co-Chair MacKinnon asked whether it was the percentage of
dropping from a $60 million program, down to a $30 million
program.
2:13:35 PM
Vice-Chair Micciche replied that his concern was not
associated with the drop, it asserted that it was the
difference between the status quo distribution of the $38.2
million, and the distribution of the funds under SB 210.
2:13:48 PM
AT EASE
2:14:11 PM
RECONVENED
Vice-Chair Micciche WITHDREW the OBJECTION. There being NO
further OBJECTION, it was so ordered.
CSSB 210(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
the Senate Finance Committee for the Department of
Commerce, Community and Economic Development.
SENATE BILL NO. 138
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making appropriations to capitalize
funds; and providing for an effective date."
2:18:20 PM
Vice-Chair Micciche MOVED to ADOPT the committee substitute
for SB 138, Work Draft 29-GS2741\E (Martin, 4/7/16).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
2:18:38 PM
AT EASE
2:19:34 PM
RECONVENED
2:19:47 PM
Co-Chair MacKinnon explained that the Capital Budget had
been reduced.
2:20:14 PM
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, relayed that
she had worked with her counterpart on the other boys, as
well as Rob Carpenter from Legislative Finance Division, to
thoroughly scrub the budget and comb through previous
capital appropriations.
2:20:51 PM
Ms. Cramer at page 2, section 1, which contained the agency
capital appropriations proposed by the governor, as amended
in the CS. The first change was located on Page 2, line 18;
Alaska Energy Authority - Bulk Fuel Upgrades (HD 1-40). She
explained that federal funding had been eliminated for the
upgrades, as the project currently had significant
outstanding federal funding. She said that the funding
source had been switched from unrestricted General Fund
(UGF), to Power Cost Equalization (PCE) funds. The second
change was on Page 2, line 20; Alaska Energy Authority -
Rural Power System Upgrades (HD 1-40). She said that the
federal authority for the program had been eliminated and
the funding source had been switched from UGF to PCE. The
next change was on Page 2, line 30; Marine Exchange of
Alaska - Alaska Vessel Tracking System Upgrades and
Expansion (HD 1-40). She noted that the $600,000 request
had been decreased to $400,000. She spoke to the next
change on Page 3, line 16, where intent language for the
Department of Education had been inserted, adding school
major maintenance application criteria that would redirect
applicants to the Alaska Housing Finance Corporation's
(AHFC) Alaska Energy Efficiency Revolving Loan Fund. She
continued to Page 3, line 31; Mt. Edgecumbe High School
Deferred Maintenance (HD 35), which had been reduced from
$1 million to $350,000 due to outstanding appropriations
for deferred maintenance from previous years. She said that
Page 4, line 7, reflected the reduction of the Statewide
Contaminated Sites Cleanup (HD 1-40) from $1 million to
$500,000, also due to outstanding appropriations from
previous years. The next change was on Page 4, line 21;
Sport Fish Recreational Boating and Angler Access (HD 1-
40), the $750,000 UGF had been replaced with Department of
Fish and Game receipts. The next change was on Page 4, line
26; Emergency Medical Services Match for Code Blue Project
(HD 1-40) funding source had been changed from UGF to
alcohol funds. She turned to Page 6, line 9, which
reflected the change of $771,400 in UGF funding for the
NSTAR Re-platforming Project (HD 1-40) to a reappropriation
from a previous capital appropriation for the Department of
Revenue for oil and gas fiscal systems analysis. She noted
that the project was fully funded, partially with the
reappropriation. She spoke to the change on Page 6, line
11; the reduction of the AHFC Cold Climate Housing Research
Center (CCHRC) (HD 1-40) from $1 million to $500,000.
Ms. Cramer directed committee attention to the change on
Page 7, line 5; intent language had been inserted for the
Department of Transportation and Public Facilities to
provide the finance committees in both houses a list of
federal earmarked capital projects expected to be requested
for repurposing from the Federal Highway Administration.
She said that the federal dollars would be reflected in the
FY 18 Capital Budget, and not FY 17, but that the
legislature had requested that the department provide a
list of projects that they planned to submit to the federal
government for repurposing. She continued to Page 7, line
14, which reflected that $3 million of the $12 million for
funding the Alaska Marine Highway System Vessel Overhaul,
Annual Certification and Shoreside Facilities
Rehabilitation (HD 1-40) had been switched from UGF to
Marine Highway Funds. She said that the Federal-Aid Highway
State Match (HD 1-40) listed on Page 7, line 25, showed a
fund source change from UGF to a reappropriation of lapsing
funds in the amount of $20.5 million. She noted that the
Airport Improvement Programs and Statewide Transportation
Improvement Programs (STIP) were itemized.
2:25:46 PM
Ms. Cramer looked at page 7, line 30, where intent language
had been inserted that directed DOT&PF to submit a
quarterly report to the House and Senate Finance Committees
on the Federal Aviation Administration Grant Awards. She
relayed that this would condition the department to share
updates on project advancement and project spending with
the legislature. She turned to Page 12, line 5, which
contained identical intent language pertaining to the
Federal Highway Administration. She stated that the next
change could be found on Page 18, line 9, which showed a
reduction in the Judiciary; Deferred Maintenance, Renewal,
Repair, and Equipment of $688,100. She added that the
current amount in the budget provided for the first 11
deferred maintenance projects. She noted that items that
had been removed from the budget were as follows:
Department of Education and Early Childhood
Development
RN 61010
Kake School Boiler Replacement
$185,944
RN 61011
Petersburg Middle/High School Primary Boiler
Replacement
$49,135
RN 61012
Bristol Bay School Energy Upgrades and Renovations
$11,048,454
Ms. Cramer asserted that the three projects qualified
for the AHFC loan program, and referred back to the
intent language on Page 3, line 16. She added that the
$7 million for the Kivalina K-12 Replacement School -
Kasayulie had also been removed.
Office of the Governor
RN 60987
Primary and General Elections
$3,814,000
Office of Military and Veterans Affairs
RN 61042
Bethel Scout Battalion - Phase 1 of 5
$1,000,000
Department of Transportation and Public Facilities
RN 51320
Deferred Maintenance, Renewal, Repair and Equipment
$8,000,000
RN 52032
Public and Community Transportation State Match
$1,000,000
University of Alaska
RN 45326
Deferred Maintenance, Renewal, Repair and Equipment
$10,000,000
2:29:10 PM
Co-Chair MacKinnon wondered whether the deferred
maintenance requests had been eliminated due to the fact
that those departments had sufficient funds in their
deferred maintenance accounts. Ms. Cramer replied in the
affirmative.
Ms. Cramer responded in the affirmative. She added that all
reductions for deferred maintenance was because of
outstanding appropriations that departments currently had
in their budgets for deferred maintenance.
2:29:49 PM
Ms. Cramer turned to Page 19, section 2, which listed
funding by agency for the appropriations made in Section 1.
She furthered that Section 3, pages 22 through 23, listed
statewide funding for appropriations made in Section 1. She
related that the total UGF spend in Section 1 of the bill
was $79,747,061.
2:30:22 PM
Vice-Chair Micciche pointed out that Ms. Cramer had
researched outstanding funds in all departments in order to
put those funds to best use.
Ms. Cramer replied in the affirmative.
2:31:29 PM
Ms. Cramer turned to Page 24, section 4, which listed
supplemental capital projects and grants. She listed the
supplemental items that had been removed or reduced,
starting with the Department of Administration; the Alaska
Land Mobile Radio System reappropriation request of
$1,274,000 was reduced and $1,000,000 request was removed.
She furthered that the request for reappropriation for the
Alaska Railroad Corporation of $1.6 million had been
removed. She said that the Emergency Repair of Eklutna
Overpass request of $344,500, had been removed. She noted
additional changes in the section; Page 24, line 12, Alaska
Industrial Development and Export Authority (AIDEA)
dividends would be used to fund the $1,600,000 for the Nome
Arctic Deep Draft Port Design. She pointed to Page 24, line
23, and noted that $32,500,000 had been added for the
Anchorage Legislative Information Office Building and Land
Purchase; she noted that UGF funds would be used from the
Alaska Capital Income Fund. She said that Page 25, section
5, listed the funding by agency for the appropriations made
in the previous section. She noted that Section 6 listed
the statewide funding for the appropriations made in
Section 4; $2,684,000 in UGF, $32,500,000 in DGF. She
stated that Section 7, pages 27 through 29, contained the
supplemental operating items proposed by the governor. She
listed the items that had been removed from the section.
She revealed that $450,000 for a state licensing audit
increase had been removed. She explained that the Division
of Legislative Audit was set to lapse some funds and had
agreed to absorb the cost of the increase for FY17. She
furthered that the following items were removed under the
Department of Health and Social Services: $520,000 for
McLaughlin Youth Center Juvenile Justice Facility Staffing;
$75,000 for the Kenai Peninsula Youth Facility Juvenile
Justice Facility Staffing; $105,000 for Nome Youth Facility
Juvenile Justice Staffing; $300,000 for Juvenile Justice
Health Care.
2:35:00 PM
Ms. Cramer looked at Section 8, pages 30 through 31. She
noted that during the process of considering the governor's
supplemental requests for capital and operating items, both
bodies were working together, and that the conversation
continued to evolve. She said that Section 8 listed the
funding by agency for the appropriations made under the
previous section. She stated that Section 9 reflected
statewide funding for the appropriations made in Section 7;
the UGF total for that section was $52,580,500. She relayed
that Section 10 began the language section of the
legislation. She shared that the section began with the
Department of Law, judgements and settlements, for the
amount of $2,388,534. She noted that Section 11 contained
the ratification of certain expenditures for the Department
of Natural Resources for fire suppression in the amount of
$48,849,516. She continued to Section 12, which listed
federal and other program receipts and allowed agencies to
receive authorization of federal funds from the Committee
of Legislative Budget and Audit. She noted that Section 13
contained insurance claims and allowed agencies to collect
insurance settlements and to make repairs. She stated that
Section 14 was related to the National Petroleum Reserve
Alaska Impact Grant Program. The section listed the
projects under the program. She continued to Section 15,
which contained the Department of Administration labor
contracts negotiations and arbitrations support of
$792,000. She turned to Section 16(a), which pertained to
the Department of Commerce, Community, and Economic
Development, the sum of $80,000 was a reoccurring payment
for the Life Alaska Donor Services; Section 16(b) listed
the reappropriation from the Alaska Energy Authority
British Columbia intertie and energy plan implementation.
She continued to Section 17(a) which took a reappropriation
for the Goose Creek Correctional Center start-up furniture
and equipment and redirected it to the electrical arc flash
assessment and remediation required by the Occupational
Safety and Health Administration. She said that Section
17(b) would appropriate $1,250,000 from the alcohol and
other drug abuse treatment and prevention fund to the
Department of Corrections for changes to the time
accounting module of the Alaska Corrections Offender
Management System and Victim Information Notification
System to accommodate new parole and probation incentives.
She stated that Section 18 appropriated $500,000 for a
temporary position, or contract, relating to the federal
Every Student Succeeds Act. She turned to Section 19, which
listed reappropriations of Department of Environmental
Conservation water and wastewater infrastructure projects,
the projects were listed for Haines, Sitka, Kenai, and
Ketchikan. She noted the reappropriation to the Department
of Public Safety on Page 40, line11, section 20, for
aircraft and vessel repair and maintenance, and deferred
maintenance.
2:40:46 PM
Ms. Cramer looked at Section 41, page 40, line 25, which
contained reappropriations in the Department of Revenue.
She noted the reappropriation to AHFC for senior citizen
housing at a total of $1,750,000; $6,600,000 for the
weatherization program; and $774,171 for the NSTAR re-
platforming project. She noted that the project was fully
funded. She turned to Section 22, page 41, lines 18 through
29; reappropriation for the Department of Transportation
and Public Facilities (DOT&PF) funds for the municipal
harbor facility grant fund of $4,442,000, which would
provide grant funding for Kodiak, Alagnak, and Juneau
harbors. Additionally, the section listed reappropriations
to DOT&PF totaling $20,500,000 for the federal highway
match. She turned to Page 47, section 23, line 15, which
contained the request from the Office of the Governor for
the reappropriation to advance state government efficiency
efforts; the committee had added the current structure and
focus of AHFC, AEA, and AIDEA; the amount was not to exceed
$850,000. She relayed that Section 24 contained the
appropriations for the Legislature; $1.5 million was being
expended specifically for Capitol complex security and
renovations, and the remainder would be used for repair of
technology improvements to, and other necessary projects
related to legislative buildings and facilities. She
relayed that Section 25 contained the fund transfer of the
large passenger vessel gaming and gambling tax account to
the Alaska capitol income fund, estimated at $15,721,000.
She continued to Section 26, which contained the project
lapse provision. She concluded with the final sections of
the bill related to retroactivity, contingency, and
effective dates.
2:45:03 PM
Ms. Cramer noted that the total capital specific was
$79,747,100 in UGF funds; $29,455,900 in DGF; $107,643,300
in other funds; and $1,312,231,400 in federal funds, for a
total Capital Budget of $1,529,077,600. She added that the
total capital spend, including operating, capital and
supplemental, was $1,627,919,600. She said that the total
capital reduction, including operating and supplemental,
was $92 million.
2:46:17 PM
Co-Chair MacKinnon asked whether the FY17 Capital Budget
was less than in FY16.
Ms. Cramer replied that FY17 capital spending was lower
than the previous year.
2:47:40 PM
AT EASE
2:47:45 PM
RECONVENED
2:47:47 PM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
OBJECTION, the proposed committee substitute was adopted.
Co-Chair MacKinnon stated that amendments were due at 5pm
the following day. She reminded the committee that the
state was facing a $4.1 billion budget shortfall. She
discussed housekeeping.
2:50:22 PM
AT EASE
2:50:50 PM
RECONVENED
Senator Olson expressed concern over the removal of funds
from the Capital Budget for the school in Kivalina.
2:51:17 PM
Co-Chair MacKinnon said that she was sympathetic to the
request for funds. She reiterated that the state was facing
an economic crisis.
2:52:35 PM
Vice-Chair Miccich recognized Co-Chair MacKinnon and her
staff for their work on the Capital Budget.
2:53:08 PM
Co-Chair MacKinnon said that the bill proposed $1.5 billion
in spending on capital projects.
SB 138 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:53:51 PM
The meeting was adjourned at 2:53 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 200 CS SB 200(FIN) ver H.pdf |
SFIN 4/11/2016 2:00:00 PM |
SB 200 |
| SB 138 work draft version E.pdf |
SFIN 4/11/2016 2:00:00 PM |
SB 138 |
| SB 210 LFD Backup spreadsheet.pdf |
SFIN 4/11/2016 2:00:00 PM |
SB 210 |