Legislature(2021 - 2022)SENATE FINANCE 532
04/14/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 55 | TELECONFERENCED | |
| += | SB 89 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 14, 2021
9:01 a.m.
9:01:42 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:01 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Erin Shine, Staff, Senator Click Bishop; Neil Steininger,
Director, Office of Management and Budget, Office of the
Governor.
PRESENT VIA TELECONFERENCE
SUMMARY
SB 55 EMPLOYER CONTRIBUTIONS TO PERS
SB 55 was HEARD and HELD in committee for further
consideration.
SB 89 ASSISTED LIVING HOMES: HOUSE RULES
CSSB 89(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published zero fiscal note: FN 1(DHS).
SENATE BILL NO. 89
"An Act relating to house rules for assisted living
homes."
9:02:40 AM
Co-Chair Bishop discussed housekeeping.
9:03:12 AM
AT EASE
9:03:19 AM
RECONVENED
Senator Olson MOVED to ADOPT proposed committee substitute
for SB 89, Work Draft 32-GS1675\B (Dunmire, 4/13/21).
Co-Chair Stedman OBJECTED for discussion.
9:04:15 AM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, relayed that there
was only one change and read from an Explanation of Changes
document (copy on file):
Page 3, Line 21 Removes Section 4 from version A which
instructed the revisor of statutes to give effect to
the provisions in the Act if the executive order
submitted reorganizing the Department of Health and
Social Services became law. Executive Order 119 was
withdrawn on March 11, 2021.
Co-Chair Stedman WITHDREW his objection. There being NO
further OBJECTION, it was so ordered.
9:05:09 AM
Senator Olson asked the effect of withdrawal of Executive
Order 119 would have on SB 89.
Ms. Shine explained that there was no effect on the
material provisions 1 through 3 on SB 89.
9:06:15 AM
Senator von Imhof discussed the zero-impact fiscal note
from the Department of Health and Social Services. She read
from the analysis:
This bill would align Alaska law with federal
regulations around Medicaid-supported home and
community-based waiver settings. Because the
department has already worked with providers to align
with these federal regulations this bill would have no
fiscal impact to the department.
9:07:09 AM
Senator Hoffman MOVED to report CSSB 89(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 89(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one previously published zero
fiscal note: FN 1(DHS).
9:07:30 AM
AT EASE
9:09:14 AM
RECONVENED
SENATE BILL NO. 55
"An Act relating to employer contributions to the
Public Employees' Retirement System of Alaska; and
providing for an effective date."
9:09:14 AM
Co-Chair Bishop discussed housekeeping.
9:09:57 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, explained that the intent of the
bill was to change the way that the state financed the
state assistance portion of PERS contributions for the
State of Alaska as an employer. He said that the bill
impacted the state assistance payments made in the language
section of the operating budget and transferred
approximately $100 million of those payments into the
agency operations budgets where they could be shared with
other fund sources that paid for state agency payroll. The
move would result in a net savings of approximately $25.7
million of UGF by utilizing other fund sources to cover the
cost. He relayed that under current law the payment into
the PERS system based on payroll was capped at 22 percent
of payroll; the mechanism by which the bill would achieve
savings would be to remove the cap and apply the full
actuarial rate to state payroll. He relayed that the rate
for the following fiscal year would be 30.11 percent. He
shared that the difference in percentage would be added to
state payroll but compensated for with the reduction of the
state assistance portion in the budget.
9:11:54 AM
Co-Chair Stedman asked for commentary on potential impacts
of the legislation at the local level.
Mr. Steininger stated that the bill was intended only to
impact the State of Alaska as an employer and would not
impact municipalities and the like. The bill would not
impact the Teacher's Retirement System (TRS) and would
continue to make the full actuarial contribution and would
not impact retirement payments.
9:13:09 AM
Senator Olson referenced the 22 percent payroll
contribution that had a cap. He wondered what other fund
sources would make up the 30.11 percent.
Mr. Steininger stated that the funds would be primarily
federal receipts.
9:13:54 AM
Senator Olson asked what would happen if there was an
interruption in federal receipts and a shortfall in
contributions.
Mr. Steininger replied that OMB had had discussions with
state agencies about the possibility of delayed funds and
said that any shortfall would be accommodated with UGF.
9:15:03 AM
Senator Wielechowski asked about the proposed effective
date of July 1, 2021. He asked whether the administration
had considered moving the date to as early as possible in
order to take advantage of the infrastructure or Covid-19
funds from the federal government.
Mr. Steininger explained that the date was kept to simplify
the accounting work done by the state. He furthered that
changes would have to be made to profiles that pay the
salaries for state employees and making changes mid-year
would be more work than was necessary.
Senator Wielechowski recognized there could be more work
and asked whether there had been a cost-benefit analysis
done to determine whether the change was truly beneficial.
Mr. Steininger conveyed that most of the money that would
come to the state through a potential infrastructure
package would likely be spent in FY 22 and beyond; very
little of the money would be spent in FY 21. He said that
the effective date would capture the funds because the
effective date would allow for the charge to be for any
st
work done after July 1. Most of the work done of
infrastructure projects would happen after that date.
9:17:17 AM
SB 55 was HEARD and HELD in committee for further
consideration.
Co-Chair Bishop set an amendment deadline for Friday, April
16, 2021 at 5PM. He discussed further housekeeping.
ADJOURNMENT
9:17:50 AM
The meeting was adjourned at 9:17 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 89 Explanation of Changes ver. A to B 4.13.2021.pdf |
HHSS 4/29/2021 3:00:00 PM HHSS 5/13/2021 3:00:00 PM SFIN 4/14/2021 9:00:00 AM |
SB 89 |
| SB 89 Work Draft ver. B 4.13.2021.pdf |
HHSS 4/29/2021 3:00:00 PM HHSS 5/4/2021 3:00:00 PM SFIN 4/14/2021 9:00:00 AM |
SB 89 |