Legislature(2021 - 2022)SENATE FINANCE 532
04/30/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB49 || SB50 | |
| University of Alaska Subcommittee of the Whole Budget Close-out | |
| Office of Management and Budget (omb) All Supplemental Requests: Operating and Capital | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 50 | TELECONFERENCED | |
| += | SB 49 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 30, 2021
9:03 a.m.
9:03:00 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:03 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Natasha von Imhof
Senator David Wilson
Senator Bill Wielechowski (via teleconference)
Senator Donny Olson (via teleconference)
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
ALSO PRESENT
Tim Grussendorf, Staff, Senate Finance Committee; Neil
Steininger, Director, Office of Management and Budget,
Office of the Governor.
SUMMARY
SB 49 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 49 was HEARD and HELD in committee for further
consideration.
SB 50 APPROP: CAP; REAPPROP; SUPP; AMEND
SB 50 was HEARD and HELD in committee for further
consideration.
UNIVERSITY OF ALASKA SUBCOMMITTEE OF THE WHOLE BUDGET
CLOSE-OUT
SENATE BILL NO. 49
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; making
supplemental appropriations; making appropriations
under art. IX, sec. 17(c), Constitution of the State
of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
SENATE BILL NO. 50
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
9:03:46 AM
^UNIVERSITY OF ALASKA SUBCOMMITTEE OF THE WHOLE BUDGET
CLOSE-OUT
9:03:47 AM
TIM GRUSSENDORF, STAFF, SENATE FINANCE COMMITTEE, explained
the narrative associated with the University of Alaska (UA)
Subcommittee. The proposal included general funds in the
amount of $577,788,000; federal funds in the amount of
$137,225,000; and other funds in the amount of $75,116,000.
There were only two action items. The first restored half
of the governor's $20 million reduction to UA's main
campuses. The second action was the denial of the structure
consolidation retaining the FY 21 status quo. He concluded
the committee's recommendations.
Senator von Imhof MOVED the FY 22 operating budget for the
University of Alaska from subcommittee with the attached
legislative finance reports: Agency Total; Transaction
Compare FY 22 Adjusted Base to Senate Subcommittee;
Transaction Compare Governor's Amended to Senate
Subcommittee. The Legislative Finance Division was directed
to make any appropriate or conforming technical changes.
There being NO OBJECTION, it was so ordered.
Senator Wilson thanked Senator Hoffmann and his staff for
preparing the report and all their work in subcommittee. He
would have some questions for the University regarding some
of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act funding and how it would coincide with the
additional reduction in the governor's amended proposal.
Co-Chair Bishop adjourned the finance subcommittee for the
University of Alaska.
^OFFICE OF MANAGEMENT and BUDGET (OMB) ALL SUPPLEMENTAL
REQUESTS: OPERATING and CAPITAL
9:06:48 AM
Co-Chair Bishop invited Mr. Steininger to the testifier
table and asked him to walk the committee through the
action items. He noted Senator Wielechowski was in
attendance online.
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, noted the committee had three
spreadsheets before them. He would begin with the document
titled, "Supplemental Operating Items" (copy on file). He
would be reviewing the various supplemental requests
encompassed in different vehicles introduced by the
governor including the fast track supplemental bill, the
operating budget bill, the capital budget bill, the regular
supplemental bill, and the American Rescue Plan Act (ARPA)
bill. He further explained that because the supplemental
requests were spread across several pieces of legislation,
he thought it would be helpful to put them together in a
spreadsheet.
Mr. Steininger noted that some of the items on the
spreadsheet were highlighted reflecting items new since the
previous Office of Management and Budget (OMB) presentation
on supplemental items. The items in white had already been
presented to the committee. If there were any questions on
them, he was happy to respond.
Mr. Steininger turned to page 1, item 1. The supplemental
request would replace interagency receipts to cover an
anticipated shortfall in the Division of Personnel and
Labor Relations. It would offset the increased cost to
other agencies of bi-weekly payroll. Item 2 was technical
in nature within the Department of Administration's (DOA)
Risk Management Division. It would allow for the
implementation of statutory language that deposited excess
general funds into the catastrophic reserve fund to
maintain a balance of $5 million. Item 3 within the
Department of Commerce, Community and Economic Development
(DCCED) in the Division of Business and Professional
Licensing was $411,000 to offset revenue deficits in
professional licensing programs as a result of the
suspension of fee increases. He noted that the suspension
of fee increases made the COVID-related shortfall not
eligible for the ARPA revenue offsets.
Mr. Steininger continued to item 4 within the Department of
Education and Early Development (DEED). There was a FY 21
supplemental request to address the Division of School
Finance and Facilities. The division was inadvertently
short-funded with the veto of school bond debt
reimbursement. Item 5 reflected a reduction in the Alaska
Technical Vocational Education Program (TVEP) funding
within DEED. He indicated the document contained other
items related to TVEP funding. He pointed out that for
every TVEP impact there would be 2 items because initially,
the projection of TVEP funding and the needed adjustment
was projected then revised at a later date.
Mr. Steininger moved to item 7 within the Department of
Environmental Conservation (DEC) in the amount of $70,000
resulting from a delayed energy efficiency project. There
was a one-time cost to ensure that the department would be
able to meet needs as the energy efficiency project was
brought online. Item 8 would accommodate unanticipated
legal expenditures for the Division of Environmental Health
within DEC in the amount of $120,000. Item 9 was for the
replacement of commercial passenger vessel compliance fees
for shellfish testing. He added that there was a column
included in the spreadsheet that noted the House's action
He highlighted that item 9 noted that it was not included
in the House Committee Substitute, however, the spreadsheet
had not been updated for actions taken in the prior day. It
had been addressed through the amendment process.
9:10:47 AM
Mr. Steininger moved to page 2, item 10. The item would pay
for other unanticipated legal expenses within DEC in the
amount of approximately $240,000. Item 11 in the amount of
$590,000 undesignated general funds (UGF) would be used to
match additional federal receipts the state received
through the Help America Vote Act for the Division of
Elections. Item 12 within the Office of Management and
Budget was language allowing the use of lapsing funds from
the prior fiscal year to ensure stabilization of
interagency charge-back rates. Item 13, related to Adult
Public Assistance within Department of Health and Social
Services (DHSS), would help maintain benefit payments for
the Adult Public Assistance Program (the MOE for the
Medicaid Program) in the amount of $1.2 million.
Mr. Steininger continued to item 14 in the amount of
$6 million for the Alaska Psychiatric Institute to support
client services. Item 15 was a language item allowing for
the use of lapsing Medicaid funds to cover the FY 22
Medicaid budget. It would allow for a tapering down to a
lower level. Item 16 was an adjustment to the Permanent
Fund Dividend (PFD) and hold harmless program that worked
in concert with the proposal to complete the FY 21 PFD
payment. Item 17 within DHSS for subsidized adoptions and
guardianships reflected an increased need in adoption and
guardianship subsidies. Item 18 within Department of Labor
and Workforce Development (DOL) was for the Alaska
Vocational Technical Education Center (AVTEC) to provide
operational support for COVID revenue shortfalls. It had
been proposed using Alaska Housing Capital Corporation
receipts.
Mr. Steininger reported that item 19 and item 20 had to do
with TVEP funding adjustments. Item 20 was listed at the
top of page 3. Item 21 and item 22 were also TVEP
adjustments. Item 23 within the Department of Law was a
$4 million multi-year appropriation for statehood defense.
Item 24 within the Department of Military and Veterans
Affairs (DMVA) was $1.2 million in federal receipts for
facility maintenance. Item 25 had not been brought before
the committee previously. The item reflected designated
program receipts for the Alaska Housing Finance Corporation
(AHFC) which would allow them to assist other outside
entities in managing housing programs funded with COVID
relief dollars. Item 26 provided authority for AHFC to
manage the housing programs directly granted to the State
of Alaska.
Mr. Steininger continued to item 27 which was an adjustment
to investment management fees for the Alaska Permanent Fund
Corporation (APFC). Item 28 was a department-wide risk
management position for the Department of Revenue (DOR).
Item 29 had not been before the committee. It fell within
Department of Transportation and Public Facilities (DOT)
for $331,000 to address an extreme winter weather even that
occurred in the Northern Region. Items 30 and 31 were
additional TVEP adjustments. Item 31 was listed at the top
of page 4.
Mr. Steininger continued to address items on page 4.
Item 32 was a deposit of $30 million into the Disaster
Relief Fund. The source of the funding was a
reappropriation of $90 million UGF and Constitutional
Budget Reserve (CBR) monies appropriated to COVID response
that ended up not being needed due to the amount of money
the state received from the federal government. Item 33 was
a deposit of repealed capital projects into the Capital
Income Fund. The funds were used to support deferred
maintenance programs elsewhere in the state budget. Item 34
was the completion of the payment for the FY 21 PFD.
9:15:42 AM
Mr. Steininger continued to highlight the items on page 4.
Item 35 was a technical adjustment to language on the
distribution of cruise ship head tax receipts. The wrong
year was referenced and in updating the year, he also
updated the estimate to reflect the dramatic reduction in
collections. Items 36 and 37 represented judgements,
settlements, and claims against the state. Item 38 was
another settlement against the state, the Morse Settlement
- the Disability Law Center of Alaska, Inc. Judgement and
Settlement (FY 21-FY 22). It was separated out, as it
funded appropriations within DHSS. It was different in
nature than the normal judgement or settlement. Next, he
would address the document titled: "Supplemental Capital
Items."
Senator Wilson referred to items 25 and 26 for the
additional receipt authority for AHFC. He asked if the
items were pass-through items or if they reflected the
recouperation of administrative fees incurred by AHFC.
Mr. Steininger did not believe there would be significant
administrative costs taken out by AHFC. He was unsure of
the exact cost of administering the program. He was aware
that AHFC worked with outside entities who received monies
but did not have the capacity to run the programs. Alaska
Housing Finance Corporation had the capacity to run both
their own program and other outside programs. He would have
to report back to the committee regarding how the
administrative costs were being covered.
Senator Wielechowski requested a detailed list of legal
costs.
Mr. Steininger assumed Senator Wielechowski was referring
to the judgements and settlements listed in the packet. He
agreed to provide the information. He added that DEC legal
costs related to an enforcement case against a public water
system owner/operator were significantly greater than
normal. The Department of Environmental Conservation also
had multiple large permit issues for pollution discharge
exceeding the normal costs paid to the Department of Law.
Co-Chair Bishop directed Mr. Steininger to address the
supplemental capital items.
9:19:12 AM
Mr. Steininger addressed the spreadsheet related to the
supplemental capital items. Item 1 within DOA in the amount
of $230,000 was for a system server replacement for the
retirement system. Item 2 within DCCED was for the
Electrical Emergencies Program. Item 3, also within DCCED,
was an adjustment to the Natural Petroleum Reserve-Alaska
(NPRA) Grant Program. Item 4 in the amount of $2,300 was
for the Blood Bank of Alaska. The source of funding was
from license plate fees when people purchase specialty
license plates. Item 5 was a community block grant program
within DCCED. The department received additional COVID
relief funding from the federal government. Item 6 within
DEED was for a statewide school capital funding forecast
database in the amount of $240,000 from the school fund.
The purpose of the database was to track the condition of
school facilities.
Mr. Steininger addressed item 7 from the school fund for a
Mount Edgecombe High School Master Plan update for
$330,000. Items 8 and 9 were for the Village Safe Water
Program within DEC. There had been an increase in the
amount of federal receipts available which required match
funding. The department had adequate authority to receive
the federal receipts but needed matching funds.
Co-Chair Bishop asked how much the department had in excess
federal dollars.
Mr. Steininger would get back to the committee with the
total amount available in federal receipts from old
projects.
9:21:45 AM
Mr. Steininger continued to item 10 within the Department
of Fish and Game (DFG) for the Sportfish Recreational
Boating and Angler Access Program. He noted there were
several items in the supplemental capital budget that were
normal and recurring but were left off at the end of
session in the prior year because of the truncated
timeline. Item 11 within DFG in the amount of $500,00 was
for facility, vessel, and aircraft maintenance. Item 12 in
the amount of $7.7 million in federal receipts was for the
Pacific Salmon Treaty Chinook Fishery Mitigation.
Mr. Steininger turned to page 3 of the supplemental capital
items. He looked at item 13 within DFG for wildlife
management, research, and hunting access. It was a normal
annual recurring project. Item 14 within the Office of the
Governor was for statewide deferred maintenance in the
amount of $5.9 million. The money was a request that
normally appeared in the capital budget for deferred
maintenance. Item 3 in the amount of $3 million was for the
general election security due to COVID -19. The item might
appear odd because the election already occurred. He
explained that the division utilized other available
funding to cover the need. However, the supplemental was
necessary to continue operations through the remainder of
the year. Item 16 within the Department of law was for
prosecutor recruitment and housing. It reflected a $3
million increase to its operating budget base to address
sexual assault and domestic violence cases.
Mr. Steininger moved to item 17 within DMVA was for a
statewide roof, envelope, and fall protection maintenance
program in the amount of $850,000. Item 18 was for security
upgrades at the Bethel Readiness Center in the amount of
$70,000. Item 19 within DMVA was for the Kotzebue Readiness
Center HVAC system life-cycle replacement of $250,000. Item
20 was for the Bethel Readiness Center Water System for
$125,000. Item 21 was a technical item and a
reappropriation for DMVA's Alaska Land Mobile Radio (ALMR).
He relayed that ALMR was moved from DOA to DMVA. There were
old capital projects that needed to be reassigned to the
new department. Item 22 within the Department of Natural
Resources (DNR) regarding the Land and Water Conservation
Land and Water Conservation Fund Federal Grant Program was
in the amount of $3.5 million in federal receipts matched
by $900,000 UGF.
9:25:02 AM
Mr. Steininger continued to page 4. He began with item 23
within DNR for a new subdivision development within in land
sales. The amount was $750,000 of state land sales
receipts. Item 24 within DNR was for the Geological
Materials Center for multispectral scanning equipment in
the amount of just under $1.3 million from a variety of
fund sources. Item 25 was $49,000 for Exxon Valdez oil
spill outreach. The purpose of item 26 was to enhance
capacity at the Geological Material Center. The amount of
$375,000 would be provided by the entity who was to use the
capcity by leasing space in the center. Item 27 was a new
item for an assessment of Alaska landslide hazards,
particularly in Prince William Sound, to help with warning
system timelines for landslides and resulting tsunamis.
Item 28 within DOR was for a replacement of one of the
information technology (IT) systems that was aged but ran
on the state's mainframe.
Mr. Steininger continued to item 29 on page 5. The item was
a reappropriation of a prior year project for just under
$485,000. The money would be used by DOR for tax expertise,
economic impact analysis, and legal analysis of any newly
introduced tax proposals. Item 30, also within DOR, was an
AHFC item. There was $5 million in federal receipts for
continued COVID relief from the federal government for
homelessness. Item 31 within DOR was for AHFC for home
ownership assistance. The amount of federal funding COVID
receipts was $50 million. Item 32 within DOT was just under
$6 million for deferred maintenance for public buildings.
He explained there was a specific class of buildings owned
by the state - generally office buildings. Item 33 within
DOT was for decommissioning a remediation of classified
injection wells in the amount of $1.7 million.
Co-Chair Bishop asked Mr. Steininger if the state was
getting to the end of the injection well remediation
project in terms of the state's liability.
Mr. Steininger relayed that the required work had to be
completed by December 31, 2021. He could contact the
department for additional information.
Co-Chair Bishop noted that the timeline had been extended
previously.
Senator von Imhof returned to item 31. She asked about the
$50 million for AHFC homeowner assistance. In the notes it
stated that it was part of ARPA for 2021. She was aware
that there was a separate ARPA list that would be reviewed
later in the presentation. She wondered why the item was
not included in the ARPA list.
Mr. Steininger suspected a clerical error.
Senator von Imhof suggested item 31 was on the wrong list.
Mr. Steininger responded that the item was put forward in
April separate from the ARPA list because it had additional
clarity which was the reason it was put forward earlier.
The other items on the ARPA list were items included in the
ARPA bill.
Mr. Steininger continued to item 34. He explained that
certain capital projects were completed under budget. There
were remaining available funds ($4.3 million) that could be
reappropriated back into the general fund. The same applied
for item 35 in the amount of $1,600 to the Alaska Capital
Income Fund. Item 36 reflected remaining available funds
from capital projects coming in under budget in the amount
of $8,600 and going into the commercial passenger vessel
head tax account. The remaining two items were for the
Alaska Court System and could be found on page 6. Item 37
was for court security improvements in the amount of just
over $1.5 million. Item 38 was for deferred maintenance for
court buildings in the amount of just over $1.5 million.
9:30:52 AM
Mr. Steininger looked at the spreadsheet related to ARPA
(copy on file) and included items in the governor's ARPA
bill. The first section of items were related to
non-discretionary programs - items which came directly
through the act to specific state agencies for a specific
purpose. There might be some discretion in the way the
funds were deployed. Generally, the items had federal
restrictions on how they were spent.
Mr. Steininger began with item 1 for the National Endowment
for the Arts for the Alaska State Council on the Arts. Item
2 was for the Institute of Museum and Library Services for
library operations of approximately $2 million. Item 3 was
pass-through funding to communities. The amount of $185
million would be passed through to communities and would
include attached discretionary rules. Item 4 was mental
health block grant funding for the Division of Behavioral
Health in the amount of about $3 million. Item 5 within the
Division of Behavioral Health was funding for substance
abuse block grants in the amount of $4.7 million. Item 6
was pandemic emergency assistance of $3.4 million for DHSS.
Items 7 and 8 were childcare-related grants. One was for
childcare stabilization for $45.5 million and the other was
for childhood development fund grants of $28.4 million.
Item 9 was the Low Income Home Energy Assistance Program
(LIHEAP) in the amount of $23.7 million. The item was a
grant for $1.1 million for Women, Infants and Children
(WIC) benefit improvements. The funding applied to the cash
vouchers that were distributed to beneficiaries. Item 11
was a pandemic Electronic Benefits Transfer (EBT)
administrative grant in the amount of $768,000.
Co-Chair Bishop asked if item 11 had to do with the summer
school lunch program.
Mr. Steininger responded in the affirmative. The grant was
primarily for the school lunch program.
Mr. Steininger continued to item 12 in the amount of
$22 million for COVID testing. The money was supposed to be
used for testing from the reopening of schools, rather than
general testing. Item 13 in the amount of $32.4 million was
for COVID vaccinations. Item 14 in the amount of $290,000
was for child abuse prevention. Item 15 was to support
older Americans and their families in the amount of
$7 million in grant funding.
Senator Wielechowski asked if every student in the school
system would be tested for COVID each week.
Mr. Steininger replied that the funding was for screening
and testing to help schools reopen. He was unsure of the
testing specifics. He could get back to the committee with
additional information.
9:35:26 AM
Mr. Steininger continued to item 16 for higher education
emergency relief funds for AVTEC. The amount totaled
$441,000 and half of the funding had to be spent directly
on students. Item 17 within DMVA was $880,000 for emergency
management grants for the implementation of the national
preparedness system. Item 18 for DOT was $6 million for
federal transit administration grants. He highlighted that
the description outlined how the funds were to be
distributed. Item 19 for UA was $30.8 million from the
Higher Education Emergency Relief Fund. Half of the money
had to be spent on grants going directly to students. He
reported that the one capital non-discretionary program was
in the Department of Labor and Workforce Development and
was anticipated to be $6 million but the department had to
apply for the grant. It would be used to upgrade the
Unemployment Insurance (UI) program systems.
Senator von Imhof asked to confirm that items 1-20 were
direct and pass-through funds. In other words, the funds
went from the federal government to the various different
departments. The legislature had no direction or
appropriation with the funding. She asked if she was
correct.
Mr. Steininger replied that the legislature had the choice
of whether or not to give the department receipt authority
to receive the direct grants. However, the legislature
would not be able to change the rules assigned by the
federal government in terms of how the funding could be
spent.
Senator von Imhof used item 12 as an example. She relayed
that the legislature could decide whether DHSS could accept
the $22 million. However, it could not take the money and
divert it somewhere else such as DFG.
Mr. Steininger agreed.
Senator von Imhof asserted that the money could not be used
to pay a dividend.
Mr. Steininger agreed.
Mr. Steininger turned to page 3. He indicated that the next
set of supplemental ARPA items were discretionary in nature
giving the state significantly more latitude in how the
funds were deployed and used. Substantial policy
discussions between the legislature and the administration
were necessary to deploy the funding. The items listed were
initial allocations providing a starting place for policy
discussions.
Co-Chair Bishop asked if Senator Olson had been able to
join the meeting online.
Senator Olson responded that he had joined the meeting
earlier and had heard the majority of the discussion.
9:39:23 AM
Mr. Steininger addressed item 1 which was an allocation to
protect Alaskans in the areas of health and other. A total
of $80 million had been allocated for items 1 and 2
combined. Item 1 was more general and included health
support for DHSS to continue some of its testing programs
not covered with the other less discretionary grants.
Item 2 was $6 million for grants to sexual abuse, human
trafficking, and domestic violence organizations. Item 3 in
the amount of $325 million was for economic recovery and
innovation such as business relief programs or programs
that could help move Alaska out of the pandemic and shift
the way businesses conducted themselves. It would provide
relief to businesses throughout the state.
Senator von Imhof asked if the administration would be
ready to distribute the funds in a timely and fair manner
if the legislature accepted the funding and added it to the
budget. She wondered whether additional time was needed.
Mr. Steininger replied that the items were being presented
as buckets of money with rough allocations that needed to
be further defined. He indicated that because the federal
guidance was not anticipated until May 10, 2021, it was
difficult to specify how funding would be deployed. He
hoped, through the legislative process, the items would be
better refined prior to the end of session. He provided
various distribution options. The administration did not
have specifics regarding how the funding could be
distributed.
Mr. Steininger continued to item 4, an allocation
specifically for tourism revitalization. While there was
the economic recovery and innovation allocation, the
tourism industry had been hit especially hard, and the
industry was facing another year of reduced tourism in the
following season. A significant allocation would be
necessary. Item 5 had to do with infrastructure investment.
The American Rescue Plan Act included monies for
infrastructure programs, especially for water, sewer, and
broadband projects. More detail regarding infrastructure
activity would be provided in the guidelines to be released
in May by the US Treasury.
Mr. Steininger addressed item 6 in the amount of
$19 million for replacement of lost revenue due to COVID in
designated general funds (DGF) or restricted revenue
sources that supported state programs. He provided a couple
of examples within DFG and cruise ship head tax receipts
which had declined significantly. The funding in item 16
would help to backfill some lost revenues. Item 7 in the
amount of $120 million UGF was for revenue backfill.
Regular state activities would be supported with ARPA funds
allowing the general fund dollars to remain in the state's
general fund treasury.
9:45:21 AM
Senator Olson asked about item 2 regarding the Victim of
Crimes Act (VOCA) funds.
Co-Chair Bishop asked Senator Olson to restate his
question.
Senator Olson restated his question.
Co-Chair Bishop referred to item 2.
Senator Olson indicated his question had to do with the
$6 million for sexual assault and domestic violence
specifically. There was a shortfall currently within the
division. He wondered if the funds could be used to fill
the gap. He asked if money was available presently.
Mr. Steininger explained that the $6 million in item 2,
while not a direct replacement of the loss of VOCA funds,
it provided the Council on Domestic Violence and sexual
Assault with funding to avoid the drop off in grant amounts
to entities that relied on the funding. The money was
intended to replace the reduction in funding.
Senator Olson wondered what kind of shortfall the council
would still face following the receipt of $6 million.
Mr. Steininger replied that the federal grant was reduced
by about $1.4 million. The amount of $6 million would
replace that shortfall and bring the council closer to the
baseline it had received in the past. There had been a
steady decline in VOCA receipts from the federal government
in the previous several years as a result of the complexity
of how the funding was calculated at the federal level. He
thought the $6 million would solve the problem for the
grantees in the short-term.
Senator Wielechowski queried the administration's opinion
regarding using the full $1 billion in the upcoming fiscal
year versus spreading it out over several years.
Mr. Steininger indicated the administration proposed using
the full amount in the governor's bill as a starting place
in order to have such a discussion. An argument could be
made in favor of spreading out the appropriation over two
years. He reported that the $1 billion as proposed was a
multi-year appropriation spread over 4 years but
appropriated up-front. It would allow for some management
of the funds. He also indicated that the legislature could
only appropriate a portion of the funds in the current year
and make another appropriation in the following year. The
federal government might require the state do the latter.
There had been talk of the federal government only
dispersing half of the funds in the current year and
waiting 12 months to provide the other half. The state
might only be able to only appropriate about $510 million.
The issue had to be part of the policy discussions.
Senator Wielechowski queried the administration's position
on giving money directly to individuals or businesses
versus making investments in infrastructure projects in
which businesses would participate.
9:50:36 AM
Mr. Steininger replied that as the administration had laid
out its plan, it tried to create a balance between needs.
There were businesses and individuals that needed direct
relief. However, it was important to think about things
that generated an environment that allowed businesses to
continue to function. The funding was short-term relief. He
thought it was also important to think about stable
economic development in the long-term.
Mr. Steininger continued to item 7 (page 3) and item 8
(page 4) that worked together. The items reflected the
one-time UGF reduction that allowed for revenue offsets.
Item 9 was language "compliance and contingencies" included
in the bill that reaffirmed that any action taken with ARPA
funding needed to be done in compliance with the federal
rules as they were released on May 10, 2021 and possibly
updated. He was aware that under the Coronavirus State and
Local Fiscal Recovery Funds (CSLFRF) the guidelines changed
frequently over the course of the previous summer. The
administration needed to be prepared for the guidelines to
change as the state began to operate some of the programs.
The language attempted to ensure that once a plan was
developed and an appropriation was made, the state could
execute it without disruption. Item 10, the final item on
the list, in the amount of $112.3 million was for the
Coronavirus Capital Projects Fund. It would allow the state
to carry out capital projects directly enabling work,
education, and health monitoring. Since the bill was
submitted, the administration started receiving indications
that the US Treasury would interpret the funding strictly
as it related to broadband.
Co-Chair Bishop wondered if Mr. Steininger had any updates
on the guidelines and whether May 10th remained the
anticipated date of their receipt.
Mr. Steininger replied that he did not have an update on
the release of the guidelines. The administration
occasionally received guidelines on some of the more
specific pots of money. May 10, 2021 was the deadline for
guidance. He hoped the state would receive the information
earlier. It took the US Treasury some time to hire the team
writing the guidelines.
Co-Chair Bishop discussed the agenda for the upcoming
meeting on the following Monday.
SB 49 was HEARD and HELD in committee for further
consideration.
SB 50 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:56:08 AM
The meeting was adjourned at 9:56 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 49 043021 UA 22 Sub Com final close out docs.pdf |
SFIN 4/30/2021 9:00:00 AM |
SB 49 |
| SB 49 Supplemental Operating Spreadsheet 4.30.2021.pdf |
SFIN 4/30/2021 9:00:00 AM |
SB 49 |
| SB 128 Supplemental ARPA Items 4.30.2021.pdf |
SFIN 4/30/2021 9:00:00 AM |
SB 128 |
| SB 50 Supplemental Capital Spreadsheet 4.30.2021.pdf |
SFIN 4/30/2021 9:00:00 AM |
SB 50 |