Legislature(2021 - 2022)SENATE FINANCE 532
02/17/2022 09:00 AM Senate FINANCE
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| Audio | Topic |
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| Start | |
| Presentation: Governor's Fy23 Budget Amendments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 17, 2022
9:03 a.m.
9:03:15 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Natasha von Imhof
ALSO PRESENT
Neil Steininger, Director, Office of Management and Budget,
Office of the Governor.
PRESENT VIA TELECONFERENCE
Kim Guay, Director, Office of Children's Services,
Anchorage; Sylvan Robb, Assistant Commissioner, Department
of Health and Social Services; David LePain, Petroleum
Geologist, Div. of Geological and Geophysical Surveys,
Department of Natural Resources.
SUMMARY
^PRESENTATION: GOVERNOR'S FY23 BUDGET AMENDMENTS
9:03:41 AM
Co-Chair Stedman relayed that the committee would consider
the governor's budget amendments as presented by the
director of the Office of Management and Budget (OMB).
9:04:41 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, explained that he would be
following the spreadsheet that listed out the individual
amendments (copy on file). He shared that he would be
citing primarily the right-hand side of the spreadsheet and
noted that the left-hand side offered the page number in
the backup packet that could be located on the OMB website,
as well as the section, page, and line within the given
appropriation bill.
Co-Chair Stedman asked Mr. Steininger to review an entire
page, and then wait for questions at the conclusion of each
page.
9:06:11 AM
Mr. Steininger addressed the FY 23 Operating Governor
Amended" spreadsheet (copy on file). He spoke to Item 1:
Department: Administration (2)
RDU: Centralized Admin. Services (13)
Component: Retirement and Benefits (64)
Description: Increase Capabilities of the Social
Security Program to Explore Alaska Teachers
Participation: This funding will allow program staff
to travel around the State to provide guidance to
employers, deliver outreach and education to those
interested in entering Social Security / Medicare
programs, and allow for voting at the employer or
possibly the statewide level for entrance into the
Social Security system.
Other Funds: $75.0
Co-Chair Stedman asked for further explanation.
Mr. Steininger relayed that currently Alaska teachers did
not pay into Social Security nor the alternative to social
security, SBS. The item was funding within the Department
of Administration Division of retirement and Benefits for
outreach to ensure that people understood that they could
opt into the social security system.
9:07:24 AM
Senator Olson asked where the other funds were from.
Mr. Steininger replied that the funds were retirement
system funds.
Co-Chair Stedman clarified that the Teachers Retirement
System (TRS) opted out of Social Security many years ago.
It was possible for teachers to opt-in to the program if
requested.
Co-Chair Stedman noted that the committee would hear an
update on the Public Employees' Retirement System (PERS)
and TRS systems the following day.
9:08:32 AM
Mr. Steininger addressed Item 2:
Department: Multiple
RDU: Multiple
Component: Multiple
Description: FY2023 LTC Salary and Benefit Adjustment:
FY2023 Labor, Trades, and Crafts LTC (LL)
UGF: $1,593.6
DGF: $547.2
Other Funds: $2,649.3
Federal Funds: $243.1
Total: $5,033.2
9:08:59 AM
Co-Chair Bishop asked Mr. Steininger to go into more detail
on Item 2. He asked what the total funds were for, and
whether the proposal was for an annual increase or other.
Mr. Steininger agreed to provide the monetary terms sheet
that would break down the cost-of-living adjustment (COLA)
and other details. He noted that the negotiation was a
recent one.
Co-Chair Stedman assumed that it had not been included in
the original budget proposed by the governor.
Mr. Steininger explained that the administration tried to
incorporate any union negotiations that happened prior to
th
Dec 15 in the original budget submission, but often those
negotiations went on after that date. He recalled that the
statutory deadline was day 45 or day 60 of the legislative
session.
9:10:22 AM
Mr. Steininger addressed Item 3:
Department: Commerce (8)
RDU: Corp, Bus & Prof Licenses (117)
Component: Corp, Bus & Prof Licensing (2360)
Description: Amend Revenue Replacement for
Professional License Fee Freeze for FY2023: The
professional licensing fee replacement of $1.5 million
in Gov was an estimate and can be reduced based on
more recent information.
UGF: ($400.0)
9:11:05 AM
Senator Wilson asked about the impact and investigative
cost for license holders.
Mr. Steininger stated that the investigative cost was
included in the licensee fees. He furthered that the
administration was trying to ensure it did not have to
raise the license costs by funding some division activities
with UGF funds.
Senator Wilson thought that investigations were ongoing. He
had understood that the licensees were supposed to pay the
expenses and not the state.
Mr. Steininger stated that the goal was to have a self-
supporting system, and the administration was working with
the division to achieve better understanding as to what was
driving up the fees, to avoid UGF spend in future years.
He mentioned the importance of investigations for the
health of the licensing programs. He deferred further
explanation to the division.
9:13:24 AM
Mr. Steininger addressed Item 4:
Department: Commerce (8)
RDU: Alaska Seafood Marketing Inst (126)
Component: Alaska Seafood Marketing Inst (393)
Description: Correct Trade Promotion Funding from
CSLFRF: Correction to move from numbers to language
section.
Federal Funds: ($7,000.0)
9:13:51 AM
Senator Wilson asked about the intention of the $7 million.
Mr. Steininger explained that there had been a $7 million
in American Rescue Plan Act (ARPA) funding that was
appropriated to Alaska Seafood Marketing Institute (ASMI)
in the FY 22 budget. There had been language for a
technical transaction that would reverse the item out of
the budget, which had been put in the wrong place in the
budget system. He said that the $7 million had been used by
ASMI to support activities in seafood marketing.
9:14:45 AM
Mr. Steininger spoke to Item 5:
Department: Corrections
RDU: Population Management (550)
Component: Impacts multiple Population Management
components in Sec. 1
Description: FY2023 Correctional Officers Salary
Adjustment: FY2023 Correctional Officers 2% COLA
UGF: $4,434.0
DGF: $25.9
Federal Funds: $313.7
Total: $4,773.6
9:15:08 AM
Mr. Steininger addressed Item 6:
Department: Corrections (20)
RDU: Population Management (550)
Component: Pt. Mackenzie, Yukon-Kuskokwim, Ketchikan,
Fairbanks, Lemon Creek, Mat-Su
Description: Add Institutional Support Positions and
Authority Due to Booking and Property Staffing:
Adjustment from FY2023 Gov to update description.
Mr. Steininger noted that the detail had been provided due
to questions that had arisen in the other body.
9:15:55 AM
Senator Wilson asked for an estimated cost savings of the
overtime if the positions were filled.
Mr. Steininger relayed that the cost savings were
effectively offset by the salaries of the new hires. He
said here was not a net cost savings to fill the positions.
He noted that the savings could be realized in retention
and addressing staff burnout.
Senator Wilson thought some of the positions were for a new
booking unit that was already being built before the item
was approved. He asked how the administration would find
funding for the project if it was not approved by the
legislature.
Mr. Steininger shared that the item was a capital budget
request and agreed that the funding had yet to be approved.
He said that if the request were rejected by the
legislature, the department would lose some operational
benefits including safety of the staff and inmates. He
thought that the Department of Corrections could offer
further insight.
Co-Chair Stedman noted that Senator Wilson oversaw the
subcommittee for DOC.
9:18:29 AM
Mr. Steininger addressed Item 7:
Department: Education (5)
RDU: Education Support and Admin Services (677)
Component: Student and School Achievement
Description: Correct Alaska Technical and Vocational
Education Program Funding: Additional TVEP funding is
available and required to be distributed per Statute.
DGF: $6.4
9:19:06 AM
Mr. Steininger addressed Item 8:
Department: Environ Conservation (18)
RDU: Administration (202)
Component: Admin Services (635)
Description: Exxon Valdez Oil Spill Trustee Council
Administration: DEC requires EVOSS authority to cover
the Department's cost to administer, including
accounting and procurement support. During Gov ADFG
cut the funding instead of transferring it to DEC.
Other Funds: $200.0
9:19:37 AM
Mr. Steininger spoke to Item 9:
Department: Environ Conservation (18)
RDU: DEC Bldgs Maint & Operations (531)
Component: DEC Bldgs Maint & Operations (2783)
Description: Operational Costs of the Environmental
Health Laboratory: A recent project to reduce overall
energy costs is in the final stages, but the projected
cost savings were based on utility rates at a point in
time.
Federal Funds: $125.0
Co-Chair Stedman asked why the anticipated costs had not
been included in the original budget request from the
governor.
Mr. Steininger explained that the additional costs for the
lab had been a supplemental request from FY 21 and FY 22.
Initially it was thought to be a temporary increase in
costs, but after the departments supplemental request had
been investigated it had become clear that the cost would
be ongoing.
9:20:56 AM
Senator Wilson recalled that typically the item was funded
through UGF. He wondered what had changed to switch the
funding source to Federal Funds.
Mr. Steininger explained that when it became clear that the
costs would be ongoing, the administration and the
department had explored various funding methods and had
decided to use the federal indirect rate that the
department collected from various federal programs, which
was eligible to be used for these costs.
9:21:45 AM
Mr. Steininger spoke to Item 10:
Department: Environ Conservation (18)
RDU: Spill Prevention and Response (208)
Component: Spill Prevention and Response (3094)
Description: Replace Authority Unavailable due to
Alaska Constitution Article IX Section 17(d):
Adjustment to ensure full program funding post CBR
sweep.
UGF: 43.0
DGF: (43.0)
Senator Wilson thought that if the Spill Prevention and
Response (SPAR) funding had been kept in the CBR, the funds
would be exhausted within 4 years. He wondered whether the
administration had a plan to raise revenue to offset the
programs deficit in the out years.
Mr. Steininger agreed to speak briefly on the matter but
ultimately deferred to the department. He said that the
department had attempted to make reductions to the program
because prior to the issues related to the CBR sweep, the
program had been operating at a deficit and had drawn down
savings.
Senator Wilson asked whether there were any issues with not
having the funds in any particular account and having the
fuel tax funds go directly into the UGF.
Mr. Steininger thought the item was one of the "odder"
problems caused by the sweep. He mentioned that the SPAR
funds sat in a holding account in the General Fund to be
appropriated the following year. He said that the holding
account was swept. He considered that the structure of the
flow of money should be investigated. He said that the
governors budget request had focused on fixing the problem
for this year and not for the long-term.
9:25:14 AM
Senator Wilson asked whether there was any legal risk or
risk of litigation for the SPAR account or any other
accounts that were part of the sweep.
Mr. Steininger deferred to the Department of Law.
Co-Chair Stedman interjected litigation was expected. He
shared that there was an audit currently in progress, and
he expected significant problems related to the audited
financial statements.
9:26:25 AM
Co-Chair Bishop thought he had heard Mr. Steininger
reference 5 cents per gallon that went to the SPAR fund.
Mr. Steininger clarified that he would get the exact
numbers for the committee.
Co-Chair Stedman announced that once the audited
information was available to the public the committee would
walk through the accounts that should have been swept. He
said time would be spent on the SPAR account.
9:27:53 AM
Mr. Steininger addressed Item 11:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Front Line Social Workers (3318)
Description: Workforce Stabilization Bonuses for New
and Existing Staff: Retention bonuses are recommended
to stabilize existing staff, entice new staff, and
provide for a cash bonus at the completion of the
first and second years of employment.
UGF: $2,227.3
Federal Funds: $1,252.8
Total: $3,480.1
9:28:37 AM
Mr. Steininger spoke to Item 12:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Front Line Social Workers (3318)
Description: Manage Secondary Traumatic Stress for
Child Welfare Workers Initiative: Critical incident
stress debriefing provides supportive crisis
intervention following powerful traumatic events. A
Mental Health Clinician will build a critical incident
debriefing program aimed to reduce distress and
restore workforce performance.
UGF: $169.7
Co-Chair Stedman asked why the item was not in the
governor's original budget submission.
Mr. Steininger explained that the issue was being worked on
during the timeframe that the budget was being finalized
and was not ready in time to be included in the budget
proposal.
9:30:03 AM
Mr. Steininger spoke to Item 13:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Front Line Social Workers (3318)
Description: Add Four Long-Term Non-Permanent
Protective Services Specialist 4: To ensure consistent
frontline supervision needs are met in all Office of
Children's Services locations, a new long-term non-
permanent supervisory unit will ensure consistent
supervision for new and tenured staff.
UGF: $620.0
Federal Funds: $292.0
Total: $912.0
9:30:32 AM
Mr. Steininger spoke to Item 14:
Department: Family & Community Services (26)
RDU: Children's Services (486) Front
Component: Front Line Social Workers (3318)
Description: Field Training Compensation Program:
Tenured Protective Services Specialist staff will
provide support for new case workers for the entire
first year of employment by providing structured field
training in addition to carrying a caseload.
UGF: $375.8
Federal Funds: $211.4
Total: $587.2
9:30:48 AM
Mr. Steininger reviewed Item 15:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Front Line Social Workers (3318)
Description: Expand Support Positions to Broaden
Centralized Services and Field Support Services:
Twenty-six positions will ensure appropriate Social
Services Associate and administrative staff ratios to
caseworkers, along with staff to support and train co-
signers of the Alaska Tribal Child Welfare Compact.
UGF: $1,834.0
Federal Funds: $1,017.0
Total: $2,851.0
Senator Wilson observed that the item also supported the
Alaska Tribal Child Welfare Compact. He asked if the
request was in addition to the $1 million already requested
in the budget.
Mr. Steininger responded that that the amount in the
original budget proposal was the grant that went to the
Tribal providers. The supplemental requested funds were for
staff at OCS to increase the number of child welfare
workers and help make the compact relationship successful.
He deferred to OCS for further explanation.
Senator Wilson considered Items 13 through 16 and wondered
how HB 151 [HB 151 passed during the 2018 legislative
session] had impacted the work of the division.
9:32:50 AM
KIM GUAY, DIRECTOR, OFFICE OF CHILDRENS SERVICES, ANCHORAGE
(via teleconference), explained that the bill had allowed
caseloads to be capped. She said that the line item was for
support staff for front line workers, which were leaving
their posts at unprecedented rates because the benefits of
HB 151 had yet to be realized within OCS. She said that the
funds would allow for front line workers to spend more time
working directly with children and families. She spoke to
the compact and said that positions had been identified to
get the information to compacted Tribal partners.
Senator Wilson thought HB 151 also had a retention and
recruitment report requirement that would aid in
understanding the reasons behind the staff turnover. He
asked what the other positions would support if only 4 were
working with the Tribal compact.
Ms. Guay replied that the positions would be spread across
the state to help line staff coordinate family contact, as
well as helping with paperwork. She said some of the staff
would provide administrative support. She said that HB 151
capped cases for workers but that people on the job longer
than 6 months carried extremely high caseloads which led to
employee burnout.
9:35:54 AM
Senator Wilson understood that the department had projected
with the passage of HB 151 the backlog would be caught up
with by August 2020. He wondered what had happened between
2020 and 2022 that stalled the work on the backlog.
Ms. Guay explained that when the pandemic started there had
been a massive drop in OCS calls because mandatory
reporters were not interacting with children. Since that
time the call volume had increased. She shared that were
3,000 children in care, and she said that children were
coming in with more complex needs than had been seen in the
past.
9:38:00 AM
Mr. Steininger addressed Item 16:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Family Preservation (3312)
Description: Vocational Opportunities for Older Youth:
The Office of Children's Services is committed to
supporting youth aging out of foster care while they
participate in vocational or career training programs.
Increased financial support for accredited and non-
accredited programs as well as housing support will
improve outcomes for Alaskan youth.
UGF: $100.0
Co-Chair Bishop suggested that the department reach out to
the Department of Labor and Workforce Development to
leverage funds with federal funds for vocational education.
9:38:53 AM
Mr. Steininger spoke to Item 17:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Family Preservation (3312)
Description: Alaska Impact Alliance - Support and
Evidenced Based Program Development: The Alaska Impact
Alliance promotes community-based action planning
through the development of local prevention
programming to include
evidence based, culturally relevant programs and
services with an emphasis on support to diverse
populations. The alliance will continue efforts to
engage communities in developing community-specific
prevention programming aimed at reducing child
maltreatment.
UGF: $200.0
9:39:09 AM
Mr. Steininger addressed Item 18:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Foster Care Special Need (3317)
Description: Youth with Complex Trauma Placement Support:
Foster care placements for complex youth is often disrupted
if substantial financial support is not in place to address
unique high needs of youth in care. This funding allows for
appropriate compensation for foster care providers caring
for complex youth necessary to secure placements and keep
children in Alaska whenever possible.
UGF: $700.0
Co-Chair Stedman asked why the item was not in the
governor's original budget submission.
Mr. Steininger replied that the line item was part of an
overall package to address needs at OCS and took additional
time to craft.
9:40:20 AM
Mr. Steininger spoke to Item 19:
Department: Family & Community Services (26)
RDU: Children's Services (486)
Component: Foster Care Special Need (3317)
Description: Support for Foster Youth Age 18-21: The
Office of Children's Services is committed to
supporting successful transition into adulthood and
reducing financial barriers for youth ages 18-21 that
are currently in legal custody or have exited foster
care at age 18. These youth will be eligible for a
capped annual amount for needs such as housing,
household goods, employment support, transportation,
utilities, financial management or other identified
needs
UGF: $1,000.0
Co-Chair Stedman asked whether the change would be
permanent.
Mr. Steininger answered "yes."
9:40:46 AM
Mr. Steininger spoke to Item 20:
Department: Family & Community Services (26)
RDU: Departmental Support Services (715)
Component: Administrative Services (3305)
Description: Add Funding for New Dept Tech Officer 2
(02-#179) and Admin Services Director (01-#003) for
Family and Community Services: Necessary positions for
DHSS EO
UGF: $234.4
Federal Funds: $156.3
Total: $390.7
Senator Wielechowski recalled that the previous year the
committee had heard from the Department of Law (LAW) and
the Division of Legislative Legal that the order was
unconstitutional because it made substantive legal changes
through an executive order rather than through legislation.
He thought the same issues continued under the new
executive order and wondered why the governor had not
submitted legislation.
Mr. Steininger did not believe that it was the opinion of
LAW that the executive order was unconstitutional. He
offered to provide a more robust response on the issue.
9:42:24 AM
Mr. Steininger addressed Item 21:
Department: Fish and Game (11)
RDU: Subsistence Research & Monitoring (270)
Component: Subsistence Research (2625)
Description: Subsistence Resources Research: The
federal funding will partially support research staff
in the Northern and Southern Region. Importantly,
these research projects include attention to Yukon and
Kuskokwim River Chinook and chum salmon populations
and their importance to subsistence. Projects also
include research on Arctic fisheries and provide the
foundation for comprehensive subsistence survey work
in Southeast, Southcentral, and Aleutian communities.
Federal Funds: $ 550.0
Senator Hoffman thought that more needed to be done to put
salmon in streams, rather than using outside sources to
provide temporary a supply of fish. He stressed that salmon
was an extremely important staple to the people of the
area. He did not think that relying on the federal
government to conduct a study was the solution to the needs
of the people of the region. He believed that this food
security issue needed more attention.
Senator Hoffman continued his remarks. He thought while the
item was well intentioned, it fell far short of what the
state should do for the people of the state. He asked that
the administration revisit the issue and come up with a
more meaningful solution. He hoped the administration could
craft a proactive request that showed the people of the
state that the issue of important.
9:46:42 AM
Senator Hoffman commented that people in rural Alaska
wanted to provide for themselves and hope that the issue
would be taken seriously.
9:47:09 AM
Senator Olson agreed with Senator Hoffman's remarks. He
remarked that another study was not needed, and people
wanted to see solutions to the problem of lower salmon
returns. He thought it was evident that Department of Fish
and Game (DF&G) had failed the people that depended upon
salmon for life. He thought hatcheries were an obvious
solution rather than another study.
9:48:52 AM
Co-Chair Bishop concurred with Senator Hoffman's and
Senator Olson's comments. He emphasized that Chinook salmon
were important and noted that the Chum salmon return had
been almost non-existent.
9:49:26 AM
Mr. Steininger spoke to Item 22:
Department: Health (6)
RDU: Behavioral Health
Component: BH Treatment and Recovery Grants (3099)
Description: MH Trust: Crisis Now Continuum of Care
Grants: Move this program from BH Prevention and Early
Intervention Grants to Behavioral Health Treatment and
Recovery Grants.
UGF: $900.0
Mr. Steininger spoke to Item 23:
Department: Health (6)
RDU: Behavioral Health (483)
Component: Behavioral Health Administration (2665)
Description: Expand Master of Social Work Degree
Program:
The Department of Health will contribute to a two-year
effort to support expansion of the University of
Alaska's Master of Social Work program from 35 to 85
students per year, including licensure.
UGF: $ 200.0
Senator Wilson recalled that a few years previously the
University had decreased the program. He wondered why there
had been a decrease and then an increase.
Co-Chair Stedman thought the University could speak to the
matter later.
Mr. Steininger deferred the rationale to the University. He
noted that UA had a bit different budget process by which
funding decisions were made. He cited that the DHSS was
working with outside parties to meet the specific needs of
beneficiaries.
Co-Chair Stedman reminded that the supplemental request
from the governor might not be included in the final
budget.
9:52:22 AM
Mr. Steininger spoke to Item 24:
Department: Health (6)
RDU: Behavioral Health
Component: Behavioral Health Administration (2665)
Description: MH Trust: Crisis Now Continuum of Care
Grants: Move this program from BH Prevention and Early
Intervention Grants to Behavioral Health Treatment and
Recovery Grants.
UGF: ($900.0)
Mr. Steininger addressed Item 25:
Department: Health (6)
RDU: Public Health (502)
Component: Chronic Disease Prevention and Health
Promotion (2818)
Description: MH Trust: Open Beds: Open beds is a
secure cloud-based platform that provides real-time
treatment facility availability, two-way digital
provider communication, data analytics, and clinical
decision support.
Other Funds: $ 285.0
Mr. Steininger spoke to Item 26:
Department: Labor & Workforce (7)
RDU: Commissioner and Admin Services
Component: Workforce Investment Board
Description: Correct Alaska Technical and Vocational
Education Program Funding: Additional TVEP funding is
available and required to be distributed per Statute.
DGF: $ 54.7
Senator Wilson asked about Item 25, and whether the DHSS
had the information on their website currently.
Mr. Steininger stated that the item had come as a
recommendation from AMHTA. He thought the commissioner of
DHSS could speak to the item.
9:53:49 AM
SYLVAN ROBB, ASSISTANT COMMISSIONER, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES (via teleconference), relayed that the
program provided a real-time dashboard of availability on
the website. She shared that the line item provided an
additional tool in the toolbox.
Senator Wilson asked whether the department already
required the open beds numbers to be posted daily on the
dashboard.
Ms. Robb stated that the dashboard had existed for several
years, and the funds would maintain availability.
9:54:57 AM
Mr. Steininger spoke to Item 27:
Department: Labor & Workforce (7)
RDU: Commissioner and Admin Services
Component: Workforce Investment Board
Description: Additional federal Authority for Recently
Acquired Federal Grants: AWIB has recently been
awarded two new federal grants: The State
Apprenticeship Expansion, Equity, and Innovations
(SAEEI) award for $3,991.5 over 4 years and the
Community Health Workers for Public Health Response
and Resilient award for $671.3 per year.
Federal Funds: $ 1,669.2
Co-Chair Bishop asked how many years the expansion was
expected to take.
Mr. Steininger agreed to get back to the committee with
more information.
Co-Chair Bishop noted that there was a staffing shortage in
the healthcare industry.
9:56:03 AM
Mr. Steininger spoke to Item 28:
Department: Labor & Workforce (7)
RDU: AVTEC (578)
Component: AVTEC (2686)
Description: Correct Alaska Technical and Vocational
Education Program Funding: Additional TVEP funding is
available and required to be distributed per Statute.
DGF: $ 27.3
Mr. Steininger addressed Item 29:
Department: Natural Resources (10)
RDU: Fire Land and Water Resources (602)
Component: Geological & Geophysical Surveys (1031)
Description: Laying the Foundation for Alaska's Power
Diversification: This increment will form the core of
a renewable energy program within the Division of
Geological & Geophysical Surveys to collect baseline
data critical for geothermal, hydro-electric (in-
river, tidal, and wave), and wind power generating
potential throughout Alaska.
UGF: $ 262.0
Senator Hoffman recalled a presentation on micro-nuclear
power that was given in the Community and Regional Affairs
Committee. He thought the state should continue to pursue
the success of micro-nuclear power. He recalled that 11
years previously the legislature had funded a study on
micro-nuclear, at which the presenters relayed that the
state was on the cusp of a big change that would reduce
energy costs by possibly as much as 90 percent.
Senator Hoffman continued his remarks. He thought the state
could attempt its own demonstration project. He referenced
United States Senator Lisa Murkowski, who had mentioned the
topic in a joint session to the legislature. He suggested
that the technology would be a big game-changer in a state
with some of the highest energy costs in the nation, and
lowest incomes in the nation. He thought that more funding
should be added to ensure real systemic changes in the
improvement of the quality of life for people in rural
Alaska.
10:00:39 AM
Co-Chair Bishop asked whether the funds were in direct
response to a plan the governor had put forward.
Mr. Steininger said that all the governors plans were tied
together. He commented that Senator Hoffman would see later
in amendments there was significant investment with the
University for micro-nuclear power.
Co-Chair Stedman noted the time.
10:01:55 AM
Mr. Steininger spoke to Item 30:
Department: Natural Resources (10)
RDU: Agriculture (603)
Component: Agricultural Development (455)
Description: Sponsor Future Farmers of America: Amend
allocation between line numbers
UGF: ($180.0)
Mr. Steininger continued to Item 31:
Department: Natural Resources (10)
RDU: Agriculture (603)
Component: Agricultural Development (455)
Description: Amended Sponsor Future Farmers of
America: Amend allocation between line numbers and add
1 PCN.
UGF: $180.0
Co-Chair Stedman asked for an estimation of how many new
employees were being requested in total by the
administration.
Mr. Steininger stated that the amendment package signified
30 full-time and 4 non-permanent employees.
Co-Chair Stedman asked how many were requested in the
previously submitted budget proposal.
Mr. Steininger responded that he could get back to the
committee with the information.
10:03:07 AM
Senator Wilson noted that the University was ending its
relationship with Future Farmers of America (FFA) and asked
whether the grant would be transferred to the Division of
Agriculture.
Mr. Steininger replied that the change in the Division of
Agriculture was in response to the University ending its
partnership with FFA. The exact nature of the relationship
would change since it was under new management.
Senator Wilson asked whether there would be an amendment to
move the grant from the University to the Division of
Agriculture.
Mr. Steininger noted that the removal of the grant was a
result of the budget reductions to the University over the
last several years and the money associated with the grant
had already been cut.
10:04:29 AM
Mr. Steininger addressed Item 32:
Department: Public Safety
RDU: Alaska State Troopers
Component: AST Detachments
Description: Add Full Funding for New FY2021 Filled
Positions: Thirty-six new positions were added to
Alaska State Troopers in FY21 but funded at 75%. This
increment is needed to fully fund 16 filled positions.
$460.2 is in FY23 Governor new total is $631.
UGF: $170.8
Mr. Steininger addressed Item 33:
Department: Public Safety
RDU: Alaska State Troopers
Component: AST Detachments
Description: Add Funding to Support Domestic Violence
and Sexual Assault & Missing and Murdered Indigenous
Persons:
Description change only.
Mr. Steininger spoke to Item 34:
Department: Public Safety (12)
RDU: Alaska State Troopers (160)
Component: Alaska Bureau of Investigation (2744)
Description: Fund Change for State Homeland Security
Program Award: Fund change from FY23 Gov because it is
for a capital project. (I/A to CIP)
Mr. Steininger spoke to Item 35:
Department: Public Safety
RDU: Alaska State Troopers
Component: Alaska Wildlife Troopers Aircraft Section
(492)
Description: Add Positions to Increase Staffing and
Operational Capacity within the Aircraft Section:
Adjustment from FY2023 Gov to update description.
Mr. Steininger addressed Item 36:
Department: Revenue (4)
RDU: Agency Unallocated (627)
Component: Unallocated Rates Adjustment (3370)
Description: Reverse FY2023 Office of Information
Technology Mainframe Change: Correct a rate reduction
that was made in both FY22 and FY23 Gov.
UGF: $ 259.9
DGF: $ 1.7
Federal Funds: $ 590.9
Total: $852.5
10:06:10 AM
Senator Hoffman brought up that the United States Attorney
General had expressed outrage with the lack of law
enforcement and staffing support in rural Alaska. He
appreciated the governor putting in additional support
positions in rural Alaska, and he hoped the focus would
continue. He considered that the overall budget the
governor had presented was an overall step forward to
address the lack of enforcement in rural Alaska.
10:07:38 AM
Mr. Steininger spoke to Items 37 - 42:
Department: Transportation (25)
RDU: Highways, Aviation and Facilities (408)
Component: Central Highways and Aviation (564)
Description: Maintenance and Operations Funding for
Silvertip Maintenance Station: This FY22 item should
have been added in FY23 as well to continue to use
federal relief to cover these costs.
Federal Funds: $620.0
Department: Transportation (25)
RDU: Highways, Aviation and Facilities (408)
Component: Central Highways and Aviation (564)
Description: FY2023 Labor, Trades, and Crafts Salary
and Benefit Adjustments: FY2023 Labor, Trades, and
Crafts 3.25% COLA.
UGF: $263.0
Federal Funds: ($263.0)
Department: Transportation (25)
RDU: Highways, Aviation and Facilities (408)
Component: Northern Highways & Aviation (2068)
Description: Funding for Dalton District Shift Change
- Two Weeks On/Two Weeks Off: This FY22 item should
have been added in FY23 as well to continue to use
federal relief to cover these costs.
Federal Funds: $1,298.6
Department: Transportation (25)
RDU: Highways, Aviation and Facilities (408)
Component: Northern Highways & Aviation (2068)
Description: Maintenance and Operations Funding for
Chitina and Birch Lake Maintenance Stations: This FY22
item should have been added in FY23 as well to
continue to use federal relief to cover these costs.
Federal Funds: $794.6
Department: Transportation (25)
Northern Highways
& Aviation (2068)
RDU: Highways, Aviation and Facilities (408)
Component: Northern Highways & Aviation (2068)
Description: FY2023 Labor, Trades, and Crafts Salary
and Benefit Adjustments: FY2023 Labor, Trades, and
Crafts 3.25% COLA.
UGF: $ 494.8
Federal Funds: ($494.8)
Department: Transportation (25)
RDU: Highways, Aviation and Facilities (408)
Component: Southcoast Highways and Aviation (603)
Description: FY2023 Labor, Trades, and Crafts Salary
and Benefit Adjustments: FY2023 Labor, Trades, and
Crafts 3.25% COLA.
UGF: $56.9
Federal Funds: ($56.9)
Co-Chair Bishop commented that the maintenance stations
were important to his district. He whether the state would
use UGF or federal funds in the future. He referenced the
Dalton Highway shift change and the struggle for Department
of Transportation and Public Facilities (DOT&PF) to fill
unfilled positions. He expressed staffing concerns and pay
parity within the department.
10:09:51 AM
Mr. Steininger spoke to Item 43:
Department: Transportation (25)
RDU: Agency Unallocated (724)
Component: Unallocated Rates Adjustment (3371)
Description: Correct FY2023 Rate Changes Fund Source:
Correct rate adjustment fund source from DGF to Other
Mr. Steininger addressed Item 44:
Department: University of Alaska (45)
RDU: Budget Reductions/Additions (233)
Component: Systemwide Reduction/Additions (1296)
Description: Correct Alaska Technical and Vocational
Education Program Funding: Additional TVEP funding is
available and required to be distributed per Statute.
Mr. Steininger noted Item 45:
Department: Judiciary
RDU: Judiciary Unallocated
Component: Unallocated Rates Adjustment
Description: Replace Rate Adjustment Unrealizable Fund
Sources: Courts request a change on rate adjustments
non-UGF fund sources to UGF.
UGF: $1.1
DGF: ($0.2)
Other Funds: ($0.6)
Federal Funds: ($0.3)
10:10:20 AM
Mr. Steininger noted Item 46:
Department: Commerce (8)
RDU: Alaska Seafood Marketing Inst (126)
Component: Alaska Seafood Marketing Inst (393)
Description: Correct Trade Promotion Funding from
CSLFRF: Correction to move from numbers to language
section.
Mr. Steininger addressed the spreadsheet "FY2022
Supplemental Governor Amended" (copy on file).
Mr. Steininger spoke to the Operating Budget items on the
chart.
Mr. Steininger addressed Item 7:
Department: Commerce (8)
RDU: Alaska Seafood Marketing Inst
Component: Alaska Seafood Marketing Inst
Description: Extend FY2022 Trade Promotion Funding
Through FY2024 as Multi-Year Appropriation: This
funding (ARPA-CSLFRF) is available through December
31, 2024.
Mr. Steininger addressed Item 8:
Department: Special Appropriations
RDU: Judgments, Claims Settlements (615)
Component: Judgments, Claims Settlements (3008)
Description: FY2022 Judgments, Settlements, and Claims
DEPARTMENT OF LAW. (a) The sum of $876,601 is
appropriated from the general fund to the Department
of Law, civil division, deputy attorney general's
office, for the purpose of paying judgments and
settlements against the state on or before June 30,
2022.
Co-Chair Stedman asked for more detail in Item 8.
Mr. Steininger explained that there were two judgments or
settlements included in the original Supplemental Budget -
Recall Dunleavy v. the Division of Elections and ACLU v.
Dunleavy. The new settlements were Arctic Village Council
v. Meyer, Lanford v. Dunleavy, Forrer v. SOA, and John Doe
v. SOA.
Co-Chair Stedman asked whether there were dollar amounts
associated with each case.
Mr. Steininger stated that the Arctic Village Council v.
Meyer totaled approximately $200,000 between three payees.
Blandford v. Dunleavy involved two payees receiving
$220,000 and $275,000. He furthered that Forrer v. SOA
totaled $157,000 and the John Doe case was just over
$40,000.
10:13:44 AM
Senator Wielechowski referenced the Blandford case. He
asked whether the court had found the state liable, or if
the court had found Governor Dunleavy and his chief of
staff personally liable.
Mr. Steininger referenced a memo from the Department of Law
(copy on file) dated February 16, 2022. The memo offered
more specific detail on the settlement.
Senator Wielechowski understood that the state had not been
found liable by the court. He recalled that the governor
and his chief of staff had been found liable in a personal
capacity, which meant the state held no liability.
Mr. Steininger suggested that Senator Wielechowski read the
memo from the Department of Law. He relayed that the
appropriation was for the settlement and was not a
judgement from the court.
Co-Chair Stedman thought the matter was a subject of
interest to the committee and other legislators. He asked
Mr. Steininger not to answer questions that made him
uncomfortable. He relayed that LAW had been unavailable for
this hearing but would be before the committee at another
time. He recognized that the issue was a complex legal
matter, and that Mr. Steininger did not represent LAW. He
thought the Department of Law was paying attention and
could be made aware of member's questions before appearing
before the committee.
10:17:02 AM
Senator Wielechowski recognized that LAW should answer the
questions. He asked why the department was paying hundreds
of thousands of dollars for a matter in which it was not
liable.
10:17:35 AM
Senator Olson suggested that the line item be deleted until
there was significant justification from LAW.
Co-Chair Stedman assured the committee that the issue would
be under discussion later.
Co-Chair Stedman handed the gavel to Co-Chair Bishop.
10:18:42 AM
AT EASE
10:21:01 AM
RECONVENED
Co-Chair Bishop relayed that the committee would consider
the Capital Budget items in the FY 22 Supplemental Budget
Amendments.
Mr. Steininger relayed that Item 1 through Item 4 signified
recommendations of items from the Exxon Valdez Oil Spill:
Department: Commerce (8)
RDU:
Component: Capital
Description: Alaska SeaLife Center Facilities Project:
$2.5 million of settlement funds for facilities
replacement for the Alaska SeaLife Center (ASLC) for a
facilities project. Funded with EVOS Fund.
Other Funds: $2,500.0
Department: Commerce (8)
RDU:
Component: Capital
Description: Chugach Region Archaeological Repository:
$6.28 million of settlement funds for facilities
replacement for the Chugach Region Archaeological
Repository and Museum. EVOS Fund.
Other Funds: $6,277.7
Department: Commerce (8)
RDU:
Component: Capital
Description: Alutiiq Museum & Archaeological
Repository:
$7.3 million of settlement funds for purchase and
renovation of the Aluutiq Museum and Archaeological
Repository (AMAR). EVOS Fund.
Other Funds: $7,339.5
Department: Commerce (8)
RDU:
Component: Capital
Description: Prince William Sound Science Center &
Technology Institute Facilities Replacement: $5.95
million of settlement funds for facilities replacement
for the Prince William Sound Science Center &
Technology Institute (PWSSC). EVOS Fund.
Other Funds: $5,950.0
10:22:34 AM
Mr. Steininger spoke to Item 5:
Department: Corrections (20)
RDU:
Component: Capital
Description: Hiland Mountain Intake Administration
Project: Savings if project is managed by DOC rather
than DOT.
UGF: ($1,300.0)
Mr. Steininger addressed Item 6:
Department: Corrections (20)
RDU:
Component: Capital
Description: Yukon Kuskokwim Correctional Center
Recreational Area Renovations: Savings if project is
managed by DOC rather than DOT.
UGF: ($820.0)
Senator Wilson asked whether the project was currently
under construction.
Mr. Steininger detailed that currently the department was
in the planning stages with the intent to start the project
as quickly as possible. He said that full construction had
not yet begun.
10:24:16 AM
Mr. Steininger addressed a spreadsheet entitled "FY 2023
Capital Governor Amended" (copy on file). He spoke to Item
1:
Department: Commerce (8)
Component: Capital
Description: Kodiak Fire Station: Addition to GO Bond
Package.
Other Funds: $15,000.0
Mr. Steininger spoke to Item 2:
Department: Commerce (8)
Component: Capital
Description: Nenana Fire Hall Update description.
Mr. Steininger addressed Item 3:
Department: Commerce (8)
Component: Capital
Description: Kenai River Bluff Stabilization: Update
description.
Mr. Steininger spoke to Item 4:
Department: Commerce (8)
Component: Capital
Description: Seward Freight Dock Expansion and Corridor
Improvements: Update description.
Co-Chair Stedman appreciated the assistance to Kodiak and
Nenana fire halls. He related that he was not supportive of
the GO bond package but was supportive of the including the
projects in the normal Capital Budget cycle. He asked
whether it was safe to assume that the administration was
looking positively towards potential inclusion of funding
for fire hall and safety structures maintenance and new
construction. He thought the Kodiak project was a
replacement due to earthquake damage. He commented on the
dilapidated nature of fire houses around the state.
Co-Chair Bishop echoed Co-Chair Stedman's comments.
Co-Chair Stedman hoped for an opinion from OMB on the
matter.
10:28:01 AM
Mr. Steininger commented that one aspect of the GO bond
package was that it needed to go to voters for approval. He
said that the administration would adjust the package as it
moved thorough the legislative process and the public
weighed in on what should be included.
Co-Chair Stedman emphasized that he did not support a bond
package. He thought the state was able to offer assistance
around the state because of some unanticipated revenue. He
reiterated his support of putting the two items in the
regular Capital Budget.
Mr. Steininger thought the broader discussion of how to
fund the projects was an important one. He commented that
the administration believed that bonding now provided an
opportunity to take advantage of low interest rates and
saving the surplus funds while paying down debt overtime.
He stressed that the administration believed that bonding
was the best way to fund the projects but what those
projects were that should be included in the package should
be determined through the legislative process.
10:31:56 AM
Co-Chair Stedman reminded that the legislature was the
appropriator, and its role was to define the Capital Budget
structure. He urged caution on the issuance of debt.
10:33:01 AM
Mr. Steininger spoke to Item 1:
Department: Commerce (8)
Component: Capital
Description: Alaska Mariculture Alliance Economic
Recovery Mariculture Incentive Grant Program SCOPE
CHANGE: This appropriation provides a $25 million
grant to the Alaska Mariculture Alliance (AMA) for the
purpose of establishing and operating a grant program
for the mariculture industry. The Mariculture
Revolving Loan Fund (MRLF) was established to provide
capital, but additional financial assistance is
necessary to support the industry during its infancy.
Grants made through this appropriation will assist in
the establishment of new mariculture businesses and
the expansion of existing farms.
Mr. Steininger addressed Item 5:
Department: w Environ Conservation (18)
Component: Capital
Description: Alaska Enhanced Air Quality Monitoring:
The Department of Environmental Conservation will
implement a three-year air monitoring project that
expands the Department's existing "AQmesh" air quality
sensor network to fifteen additional communities
across Alaska. The AQmesh network is intended to
provide baseline air quality data for areas not
covered by the State's regulatory monitoring network.
Federal Funds: $650.0
Mr. Steininger spoke to Item 6:
Department: Health (6)
Component: Capital
Description: MH: Deferred Maintenance and
Accessibility Improvements: Move capital project from
DFCS to DOH.
Mr. Steininger addressed Item 8:
Department: Natural Resources (10)
Component: Capital
Description: Cook Inlet Petroleum Potential Lower Cook
Inlet basin and the Alaska Peninsula-North Aleutian
basin have significant petroleum potential, but they
have been lightly explored and critical aspects of
their geology remain poorly known. Much of the
existing exploration data in these basins are
proprietary. This request will help fund an effort to
increase the amount of publicly available data on the
petroleum potential of these basins.
UGF: $1,200.0
Co-Chair Stedman thought it was a good idea to keep an eye
on Cook Inlet, which he thought did not receive enough
attention compared to Prudhoe Bay. He expressed concern
that too much concentration on renewable energy could
disadvantage Cook Inlet, where the state had invested
hundreds of millions of dollars. He thought natural gas was
substantially more environmentally friendly that many other
energy sources.
10:37:22 AM
Senator Wielechowski asked whether the information that the
department sought with the proposed funds already existed.
Co-Chair Bishop noted there was a petroleum geologist
online for questions.
10:38:02 AM
DAVID LEPAIN, PETROLEUM GEOLOGIST, DIV. OF GEOLOGICAL AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), thought that some of the data existed but
was likely lost. He said that the major players active in
the basin over the last 40 years had pulled out of the
basin and some of those companies no longer existed. He
lamented that much of the institutional knowledge was gone.
He asserted that the data that did exists from previous
studies was dated. The department proposed to gather new
highly relevant data to make available to the public domain
and attract investment.
Senator Wielechowski knew there had been huge production
and exploration incentives. He wondered whether previous
studies had been funded by the state.
Mr. LePain recounted that the department had received
capital improvement projects in the past and had used that
money to conduct geological investigations in the area. He
pointed out that because of the work investment had been
attracted to the basin. He commented that by generating new
data sets and being active in the basin the profile of the
area was raised to attract new investors.
10:41:08 AM
Senator Wielechowski understood the rationale. He asked
whether the state would be entitled to the information if
the information came from studies funded by the state.
Mr. LePain relayed that the work that the department had
done with the Division of Oil and Gas was all part of the
public domain. He did not know whether Apache had received
tax credits but knew several companies had received credits
for shooting new seismic data sets, some of which were
publicly available or were slated to become publicly
available within the next 3 to 4 years.
10:42:34 AM
Co-Chair Stedman followed up on Senator Wielechowski's
remarks. He recalled that a decade previously the state had
spent significant money trying to generate additional
natural gas. He recalled that the seismic data done by
investors was to be turned over to the state. He asked that
Mr. LePain check the history of data sets when the
department came to provide an update on Cook Inlet. He
acknowledged the significant funds that the state had
invested in data sets. He referenced the Permian Basin in
Texas, and noted that geologists had gone back into the
cores drilled in the 1800's. He stressed that existing core
samples and data sets should be maintained.
Co-Chair Stedman continued his remarks. He wanted the
department to be prepared to discuss the competitive nature
of Cook Inlet and whether there would be a market to sell
gas.
Mr. LePain made note of Co-Chair Stedman's comments.
10:46:15 AM
Co-Chair Bishop recalled that the last time the legislature
had received a good Cook Inlet update was approximately the
time of Commissioner Tom Irwin in early 2000.
Mr. LePain had not been involved in the last update and
deferred the question to the Division of Oil and Gas.
10:46:52 AM
Mr. Steininger addressed Item 7:
Department: Natural Resources (10)
Component: Capital
Description: Food Security Agriculture Incentive Grant
Program - SCOPE CHANGE: Scope change to add Nenana-
Tochaket This funding would allow the Division to
supplement Agriculture Revolving Loan Fund (ARLF)
programs, provide matching grant funds, and financial
incentives which will support agriculture farmers.
Senator Hoffman supported the scope change in Item 7 to
address the needs of the Interior. He thought to be fair to
all the citizens of the state regarding food security the
rest of the state needed to be considered. He discussed
ongoing replenishment of salmon stocks as a solution. He
thought that people living in the poorest communities in
some of the highest cost of living areas of the state
should be considered. He suggested the possibility of an
amendment to the amount of the item proposed.
10:48:58 AM
Co-Chair Bishop concurred with Senator Hoffman's comments.
Mr. Steininger addressed Item 9:
Department: University of Alaska (45)
Component: Capital
Description: Emerging Energy Opportunities for Alaska:
Investment through the Alaska Center for Energy and
Power (ACEP) at UAF to address important gaps in our
understanding of emerging energy technologies and
applications for Alaska. These funds will be used to
support targeted research in key emerging energy
technology areas. This project includes Micro nuclear
road map.
UGF: $2,500.0
Senator Hoffman had spoken to the item earlier and was glad
to see it in the capital budget. He mentioned tremendous
accomplishments in the last decade, particularly in micro-
nuclear power. He commented on the need to address high
energy costs. He believed the item should be funded on a
reoccurring basis as an item in the yearly Operating
Budget.
10:51:35 AM
Co-Chair Bishop thanked the administration for bringing
Item 9 forward. He was glad to see that the University was
recognized for the work. He agreed with Senator Hoffman's
comments regarding high energy costs, which he felt
transcended legislatures and administrations.
ADJOURNMENT
10:53:25 AM
The meeting was adjourned at 10:53 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 164 FY2023_Capital_Amendments_2-14-22.pdf |
SFIN 2/17/2022 9:00:00 AM |
SB 164 |
| SB 165 FY2022_Supplemental_Amendments_2-14-22.pdf |
SFIN 2/17/2022 9:00:00 AM |
SB 165 |
| SB 165 FY2022_Supplemental_Summary_2-14-22.pdf |
SFIN 2/17/2022 9:00:00 AM |
SB 165 |
| SB 162 FY2023_Operating_Amendments_2-14-22.pdf |
SFIN 2/17/2022 9:00:00 AM |
SB 162 |
| SB 165 Operating Supplemental 2-16-22 Letter to SFIN Co-Chairs.pdf |
SFIN 2/17/2022 9:00:00 AM |
SB 165 |