Legislature(2023 - 2024)SENATE FINANCE 532
01/31/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Fy 24 Supplemental Request | |
| 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
January 31, 2024
9:03 a.m.
9:03:05 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
Senator Click Bishop
ALSO PRESENT
Lacey Sanders, Director, Office of Management and Budget.
PRESENT VIA TELECONFERENCE
Norm McDonald, Deputy Director, Fire Protection, Division
of Forestry, Palmer; Hannah Lager, Administrative Services
Director, Department of Commerce, Community and Economic
Development, Juneau.
SUMMARY
^FY 24 SUPPLEMENTAL REQUEST
9:05:09 AM
LACEY SANDERS, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
(OMB), introduced herself, and discussed the high level
overview of the FY 24 Supplemental Budget.
Co-Chair Stedman asked for a detail of the consequences of
nonpayment and the committee's flexibility.
Ms. Sanders replied that sometimes the supplemental funding
came from federal receipts for the agencies to address a
federal grant. She noted that there were several items that
were UGF, which would come from the state funds. She
stressed that the administration would need to address the
needs within current appropriations if the legislature did
not approve the supplemental budget.
Ms. Sanders discussed the presentation, "Overview of the
FY2024 Supplemental Budget" (copy on file). She looked at
slide 2, "FY 2024 Supplemental Budget Overview":
Footnotes:
1. Percent of Market Value (POMV) from the Earnings
Reserve Account (ERA).
2. Includes $61 million for the approved 2023 Fire
Season Disaster Declaration during FY2024.
9:10:33 AM
Co-Chair Stedman wondered whether the $204 million was an
average, and wanted to know the magnitude of the number.
Ms. Sanders replied that it would be considered a higher
supplemental, due to the request for fire suppression
activity.
Senator Wilson queried the historical funding from the
federal government for fire suppression.
Ms. Sanders responded that the fire activity varied
depending whether it was federal or state land.
Co-Chair Stedman felt that fire suppression funding should
be addressed in the budget.
Co-Chair Hoffman wondered how close the targets were
Earnings Reserve Account (ERA) from the percent of market
value (POMV) for FY 24.
Ms. Sanders explained that there was a projected UGF of
just under $3 billion, and the POMV draw was $3.5 billion.
She stated that the total available revenue was just under
$6.5 billion. She noted that there was still a surplus of
$375 million after the supplemental budget.
Co-Chair Stedman wondered whether a potential dividend
issue was taken into account.
Ms. Sanders responded in the affirmative.
9:15:23 AM
Ms. Sanders pointed to slide 3, "Operating Supplemental
Requests."
Co-Chair Stedman felt that one item at a time be addressed
before opening the committee to questions.
Senator Kiehl felt that aggregate supplemental was more
than 10 percent of the department's UGF, and queried a
broad strokes issue.
Ms. Sanders replied that the Department of Corrections
(DOC) and the Office of Management and Budget (OMB) had
been working through a projection process to ensure
accuracy.
Senator Kiehl wondered whether there were amendments
expected in the governor's budget to align the FY 25
request.
Ms. Sanders replied that the supplemental request brought
the FY 24 budget to align with FY 25.
9:20:03 AM
Co-Chair Stedman wondered whether the $40 million
supplemental request was already incorporated into the FY
25 budget.
Ms. Sanders replied in the affirmative.
Co-Chair Stedman wondered whether significant supplemental
requests could be made known earlier than the meeting. He
surmised that the $40 million would not have a correction
in the governor's amended budget.
Ms. Sanders agreed.
Senator Wilson surmised that most of the request for
Department of Corrections (DOC) would be repeating the same
cost for other services.
Ms. Sanders replied that the hope was to fully fund DOC
with the request.
Co-Chair Hoffman remarked that the outer years were very
grim, so he felt that there would be an issue unless there
was considerable downsizing or additional revenue.
9:26:49 AM
Senator Kiehl wondered whether there was any increase to
mitigate the issue.
Ms. Sanders replied that the remaining agencies did not
have an increase.
Ms. Sanders explained the requests from Department of
Education and Early Development (DEED).
Co-Chair Hoffman queried the percentage increase of
salaries.
Ms. Sanders did not have the percentage, but stated that
they were negotiated through the union. She agreed to
provide that information.
9:29:10 AM
Ms. Sanders addressed the Department of Fish and Game
(DFG).
Co-Chair Hoffman recalled that there was a request for DFG
to determine enhancements to Chinook. He asked whether the
administration was concerned with that issue.
Ms. Sanders replied that she could not speak for the
department. She stated that there were specific items that
addressed salmon. She stressed that she could not speak to
that issue.
Co-Chair Stedman felt that the commissioner of DFG would
speak to that issue.
9:35:09 AM
Senator Wilson noted that the postpartum funding matched
the fiscal note number.
Ms. Sanders stated that the item was inadvertently left
out.
Senator Wilson wondered whether there were any other fiscal
notes that were left out within the supplemental budget.
Ms. Sanders replied that there was one addressed in the
current budget, but not supplemental.
9:38:09 AM
Ms. Sanders looked at the Department of Labor and Workforce
Development (DLWD).
Co-Chair Stedman asked whether there were any issues with
the sweep.
Ms. Sanders responded that there were a few funds that were
swept.
Co-Chair Stedman queried what would happen in 2022, if the
grantee did not spend the allocation.
Ms. Sanders replied that the grantee returned the funds,
then swept the funds to the CBR.
Co-Chair Stedman queried the actions to minimize the import
of fire personnel and equipment.
9:45:12 AM
NORM MCDONALD, DEPUTY DIRECTOR, FIRE PROTECTION, DIVISION
OF FORESTRY, PALMER (via teleconference), replied that the
intent was to increase the preparedness.
Co-Chair Hoffman asked about who was responsible for fires
on federal and state lands.
Mr. McDonald replied the suppression efforts had an
agreement with the federal government.
Co-Chair Hoffman wondered whether there was a market
increase in fires on federal land, and asked about the
fires in the fire district in McGrath.
Mr. McDonald replied that the ownership of the fires,
varied year to year. He stated that the last two years had
fires on state land. He recalled that it was reversed in
2019. He stated that there was ongoing work to rebuild the
McGrath station to what it was before 2016.
9:51:48 AM
Co-Chair Olson recalled some concerns about the hiring
process of the firefighters. He queried the current
recruitment process of those in smaller communities.
Mr. McDonald replied that the majority of the workforce was
in rural Alaska, which was "call when needed."
9:55:03 AM
Co-Chair Olson stressed that many communities did not have
online capabilities, and asked how those communities
accessed the programs without access to the internet.
Mr. McDonald replied that there was outreach to the rural
communities, and native corporations.
Co-Chair Stedman surmised that there was 80 percent
vacancies.
Mr. McDonald replied in the affirmative.
Co-Chair Olson wondered how a person was put on the list
for federally protected zones.
Mr. McDonald replied that the federal government had a
process that he would submit to the committee at a later
date.
9:59:32 AM
Ms. Sanders addressed Department of Transportation and
Public Facilities (DOTPF).
Co-Chair Stedman asked about the airport accounting system.
Ms. Sanders replied that there was work to close out the
financial books, but were slightly behind, so they
requested resources to timely address the issue.
Co-Chair Stedman asked when that work was expected to be
completed.
Ms. Sanders replied that she did not have a timeline for
that work.
Co-Chair Stedman asked that there be a follow up about that
completion.
Ms. Sanders agreed to provide that information.
Co-Chair Hoffman queried the current status of Statewide
Transportation Improvement Program (STIP) funding.
Ms. Sanders replied that there was no funding to address
STIP.
Co-Chair Hoffman surmised that STIP was running smoothly.
Ms. Sanders replied that STIP was submitted, thanks to an
extension and agreed that there was improvement needed to
meet deadlines.
Co-Chair Hoffman wondered whether any STIP programs were in
jeopardy.
Ms. Sanders deferred to Mr. Pannone,
10:06:03 AM
AT EASE
10:06:20 AM
RECONVENED
10:07:09 AM
Co-Chair Hoffman wondered the reason for the extension, and
its timeline.
Co-Chair Olson looked at item 43, and wondered how the
decision to remove the airport improvement.
Ms. Sanders replied that it was no longer classified as an
international airport.
Co-Chair Olson surmised that it was no longer an
international airport because there was no customs at the
airport.
Ms. Sanders agreed to provide that information.
10:09:58 AM
Senator Wilson wondered when the contractor was awarded for
the services on line 47.
Ms. Sanders replied that she did not have the history, but
agreed to follow up with more information.
Senator Kiehl noted that there was work on maintaining jet
service to Gustavus, and wondered whether that issue was
resolved without supplemental funding.
Ms. Sanders agreed to provide that information.
Ms. Sanders pointed to a request for $375,000 for the
Elected Public Officials Retirement System (EPORS).
Co-Chair Stedman wondered why this request was necessary.
Ms. Sanders deferred to the Division of Retirement and
Benefits.
10:15:00 AM
Ms. Sanders addressed slide 4, "Capital Supplemental
Requests."
Co-Chair Hoffman asked about whether the grants had been
issued on the slide.
Ms. Sanders agreed to provide that information.
Co-Chair Hoffman surmised that the $38 million had not been
distributed.
Ms. Sanders agreed.
Senator Wilson wondered whether there was a federal cost
share for the databases.
Ms. Sanders deferred to Ms. Lager.
10:18:02 AM
HANNAH LAGER, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, JUNEAU
(via teleconference), agreed to follow up.
10:18:25 AM
Senator Wilson wondered whether there was community
assistance budget request.
Ms. Sanders replied that the administration did not include
that request, due to the volume of supplemental requests.
Senator Wilson queried the amount of leftover COVID
assistance funds.
Ms. Sanders agreed to provide that information.
10:19:39 AM
Co-Chair Hoffman remarked that the governor made a strong
case about following the law, and stressed that the
community assistance funding was also state law.
Ms. Sanders continued to discuss the Department of Military
and Veterans Affairs (DMVA) supplemental request.
Ms. Sanders discussed the request for the Alaska Marine
Highway System.
Co-Chair Hoffman felt that the item fell under the
operating budget.
Co-Chair Stedman asked about the accounting for the Harbor
Matching Grant Funding selection process.
Ms. Sanders agreed to provide that information.
10:23:12 AM
AT EASE
10:27:59 AM
RECONVENED
10:28:07 AM
Co-Chair Stedman asked about the federal funding, and other
documents included in the packet.
Ms. Sanders replied that OMB provided a spreadsheet.
10:30:23 AM
Senator Wilson wondered whether there was some flexibility
in the supplemental requests.
Ms. Sanders replied that she would provide balances for the
programs.
Co-Chair Stedman discussed housekeeping.
ADJOURNMENT
10:33:16 AM
The meeting was adjourned at 10:33 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 013124 FY24Supp_Bill_Summary_Spreadsheet_1-30-24.pdf |
SFIN 1/31/2024 9:00:00 AM |
FY24 Supplemental |
| 013124 OMB Senate Finance FY2024 Supplemental Budget Overview.pdf |
SFIN 1/31/2024 9:00:00 AM |
FT24 Supplemental |