Legislature(2023 - 2024)SENATE FINANCE 532
02/07/2024 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Administration Response to Prior Meetings: Office of Management and Budget | |
| Admnistration Response to Prior Meetings: Legislative Finance Division | |
| SB141 | |
| SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 141 | TELECONFERENCED | |
| + | SB 24 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 7, 2024
9:07 a.m.
9:07:42 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:07 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Lacey Sanders, Director, Office of Management and Budget;
Katherine Keith, Deputy Commissioner, Department of
Transportation and Public Facilities; Alexei Painter,
Director, Legislative Finance Division; Sam Greely, Staff,
Senator Lyman Hoffman; Senator Elvi Gray-Jackson, Sponsor;
Besse Odom, Staff for Senator Gray-Jackson, Juneau;
PRESENT VIA TELECONFERENCE
Dom Pannone, Director of Program Management and
Administration, Department of Transportation and Public
Facilities, Juneau; Jane Gottschalk, Vice Mayor, City of
Aleknagik, Aleknagik; Ann Ringstad, NAMI Alaska, Anchorage;
Jen Griffis, Vice President of Policy and Advocacy, Alaska
Children's Trust, Anchorage; Steven Pearce, Director,
Citizen's Commission on Human Rights, Seattle;
SUMMARY
SB 24 PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION
SB 24 was HEARD and HELD in committee for further
consideration.
SB 141 NAMING RAYMOND and ESTHER CONQUEST BRIDGE
SB 141 was HEARD and HELD in committee for
further consideration.
ADMINISTRATION RESPONSE TO PRIOR MEETINGS:
OFFICE OF MANAGEMENT and BUDGET
LEGISLATIVE FINANCE DIVISION
^ADMINISTRATION RESPONSE TO PRIOR MEETINGS: OFFICE OF
MANAGEMENT and BUDGET
9:08:43 AM
Senator Wilson recalled the issue of the veto explanation
of the Mt. Edgecumbe funding.
LACEY SANDERS, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
(OMB) began with Item 14.
9:09:53 AM
AT EASE
9:10:14 AM
RECONVENED
9:10:23 AM
Ms. Sanders began with item 14 from the letter from the
Office of the Governor dated February 1 (copy on file):
14. Was the Department of Fish and Game research
vessel disposed of or sold? If it was sold, what is
the status of the proceeds? And what is the life
expectancy of the new vessel?
The Department of Fish and Game's (DFG) research
vessel was disposed of for $100.0. The $100.0 received
for the disposal was retained by the division and the
proceeds will be used for deferred maintenance for
other divisional assets.
The life of a large asset can be hard to determine. It
is highly dependent on DGF's ability to do routine
maintenance. The other large vessels in the DFG fleet
were acquired as follows:
• Research Vessel (R/V) Solstice 2005
• R/V Resolution 1971
• R/V K-Hi-C maintained and operated by the
Division of Commercial Fisheries since 1996;
owned by the Kodiak Island School District
• R/V Medeia 1994
• R/V Krestrel 2003
The recommended maintenance required to safely operate
the vessels is a dry dock every three years. The most
recent full dry docks have cost around $750.0. The
Division of Commercial Fisheries has four aircraft in
addition to the vessels listed above that also require
regular maintenance for safe operation.
Senator Wilson wondered why there was a maintenance and
operation of a vessel owned by the school district.
Ms. Sanders agreed to provide that information.
Ms. Sanders looked at item 15:
15. Provide information on the Per- and
Polyfluoroalkyl Substances (PFAS) related truck
replacement budget item.
The Department of Transportation & Public Facilities
(DOT&PF) is seeking $2,533.3 in unrestricted general
fund funding to cover Per- and Polyfluoroalkyl
Substances (PFAS) related costs that are federally
ineligible and to transition Aircraft Rescue and Fire
Fighting (ARFF) vehicles from Aqueous Film Forming
Foam (AFFF) to Fluorine-Free Foam (F3). Additional
information about this project can be found on the
attached document.
• Attachment 5 - FY2025 Capital Project 65234 -
DOTPF Stwd PFAS Fleetwide Foam Replacement.pdf.
Senator Kiehl surmised that the FAA was participating in
early replacement of the trucks through airport
improvements. He wondered whether there was confidence in
"clean" with no clean up of groundwater.
Ms. Sanders agreed.
Ms. Sanders pointed to slide 16:
16. Provide an update on the Alaska Marine Highway
System (AMHS) funding and FY2024 cashflow, to include
receipt/nonreceipt of anticipated federal funds.
On the award that came out November 29, 2023, DOT&PF
received less than they applied for with the operating
grant.
The true impact of the shortfall (or reduced award) is
mitigated by the unlikelihood that DOT&PF would be
able to spend all these funds due to the Marine Vessel
(M/V) Matanuska not being in service and crew
shortages; in addition, DOT&PF only spent
approximately 88 percent of the budget in calendar
year 2023.
The below table also provides information about the
awards and associated projects. Note that $21 million
went to the America Samoa that otherwise would have
gone, presumably, to Alaska. The Secretary of
Transportation has full discretion over the award.
9:15:22 AM
KATHERINE KEITH, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, stated that there was
a reduced allocation for operating funds. She explained
that there was a determination that the funding could meet
the current budget.
Co-Chair Stedman remarked that there was a concern about
low cash flow, and wanted to know about the department
impact.
Ms. Keith replied that she felt that the budget request was
adequate to meet the needs of FY 24 into FY 25.
9:17:04 AM
AT EASE
9:18:03 AM
RECONVENED
9:18:08 AM
Co-Chair Stedman shared that there was a budget for a
schedule. He wondered whether there would be adequate funds
to maintain the Alaska Marine Highway in FY 25.
Ms. Keith replied that Mr. Pannone could address that
question.
9:19:41 AM
DOM PANNONE, DIRECTOR OF PROGRAM MANAGEMENT AND
ADMINISTRATION, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, JUNEAU (via teleconference), replied that the
current calendar year 2024 there was budgeted $66 million
for federal funds, and a received a significantly smaller
amount, creating a shortfall. He explained that the
shortfall was mitigated by some other factors.
Co-Chair Stedman wondered whether the department expected
Samoa to pick up some of the cost.
Mr. Pannone replied that Samoa received some of the funds,
and stated that there was an exception for the Alaska
Marine Highway System outside of the requirements.
Co-Chair Stedman remarked that he would expect Samoa to do
the same as Alaska.
9:25:40 AM
Senator Kiehl recalled that the previous budget included
toll credits, and asked whether there was full approval to
appropriate those credits.
Mr. Pannone replied that appropriation of those credits was
a novel financing concept in the year prior, which resulted
in establishing policies.
Co-Chair Stedman hoped that the toll credits would work as
expected, and asked about dates to factor into the budget
process.
Mr. Pannone replied that there was a current review of the
request, and hoped to have the request at the beginning of
the fiscal year, but was taken longer than expectation.
Co-Chair Stedman asked about an approximate expectation.
Mr. Pannone replied that he would follow up on that issue.
Co-Chair Stedman stated that there would be work on the
question in subcommittee.
Ms. Keith stated that there was typically a thirty-day
turnaround on requests.
Co-Chair Stedman stressed that knowing the date could have
significant impacts on the capital budget.
9:30:07 AM
Ms. Sanders discussed item 17:
17. Clarify the Alaska Statewide Transportation
Improvement Program (STIP) concerns with the Federal
Highway Administration (FHWA) reducing the allocation
to Alaska.
In the past, the Department of Transportation and
Public Facilities (DOT/PF) was allowed to inflate the
projects in the STIP by 30 percent, even knowing there
was only 100 percent worth of funding, the plan showed
130 percent.
This year, the FHWA Alaska Office, and others
involved, took a strict interpretation of the Code of
Federal Regulations (CFRs), between public release of
the STIP in July 2023 and submittal on January 19,
2024, 30 percent worth of the funding in the plan was
pushed to years beyond the STIP or shown as
illustrative; no funding was reduced. There is a new
Municipal Planning Organization, which changed the
distribution of those funds slightly, but did not
lessen the amount coming Alaska.
Ms. Sanders highlighted item 18:
18. Will the contracted statewide salary study compare
State of Alaska employees to employees in other
states?
Yes. This is outlined in the Scope of Work of the
State of Alaska's Request for Proposals on the
Statewide Salary Study (RFP 2024-0200-0142), which can
be found at the State of Alaska Online Public Notices
website. The qualified offeror is to perform a
comprehensive salary survey that collects salary, pay
schedules and structures, retirement and health
benefits, paid holiday, and leave accrual data for
employment positions with the federal government,
other states, municipal government organizations, and
private sector employers that are like a wide range of
State of Alaska employment positions presented in the
State's comparison pool. The comparison pool consists
of benchmark, journey level jobs used to identify
comparable jobs in the market. The qualified offeror
is to administer the survey to a representative sample
of employers across other states, municipal government
organizations, the federal government, and private
sector employers, ensuring a diverse and
representative mix of organizations.
Ms. Sanders stated that there were remaining follow-up
responses forthcoming:
1. Provide information on incentives offered to heavy
equipment operators, especially at airports.
2. Update on recruitment efforts. Some prior
requirements were waived for what level of positions
has this occurred (i.e. skilled, entry level, etc)? Is
it working?
9:34:10 AM
AT EASE
9:34:51 AM
RECONVENED
^ADMNISTRATION RESPONSE TO PRIOR MEETINGS: LEGISLATIVE
FINANCE DIVISION
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
(LFD) discussed a letter dated January 31, 2024 (copy on
file). He pointed to the first question:
Senator Hoffman asked about how other large funds
handle inflation proofing.
Alaska's two-account system is unusual for large funds
of its type; most have a single account with a
spending rule (which may be based on a POMV like
Alaska's, or other rules).
We could find one example that is comparable to the
Alaska Permanent Fund's structure. The North Dakota
Legacy Fund has a similar constitutional structure,
where earnings may be spent by the legislature, but
the principal is protected (although it can be spent
with a two-thirds vote of the legislature). Inflation-
proofing for that fund is subject to appropriation
each biennium; there are no rules for inflation-
proofing.
Co-Chair Hoffman wondered whether other major university
funds had major maintenance funding receiving inflation
proofing.
Mr. Painter replied that most major universities had funds
that had rules to account for inflation.
Mr. Painter addressed question 2 from Co-Chair Stedman
about the historical comparison of production by field.
9:38:29 AM
Mr. Painter pointed to question 3:
Senator Hoffman asked about the total amount of the
Governor's FY24 vetoes.
The Governor vetoed $145.4 million UGF from the
operating budget and $56.8 million UGF from the
capital budget, for a total of $202.2 million UGF.
Mr. Painter looked at the final question:
Senator Merrick asked how long it would take to retire
current school debt.
The current debt schedule shows that debt will remain
outstanding through FY40, although the total per year
falls under $1 million beginning in FY37.
9:42:31 AM
AT EASE
9:44:34 AM
RECONVENED
Co-Chair Stedman handed the gavel to Co-Chair Olson.
SENATE BILL NO. 141
"An Act naming the Raymond and Esther Conquest
Bridge."
9:45:24 AM
SAM GREELY, STAFF, SENATOR LYMAN HOFFMAN, presented the
sponsor statement (copy on file).
Co-Chair Olson asked whether the family was from the area.
Mr. Greely replied in the affirmative.
9:48:59 AM
JANE GOTTSCHALK, VICE MAYOR, CITY OF ALEKNAGIK, ALEKNAGIK
(via teleconference), spoke in support of the bill.
Co-Chair Olson OPENED and CLOSED public testimony.
SB 141 was HEARD and HELD in committee for further
consideration.
9:53:46 AM
AT EASE
9:54:29 AM
RECONVENED
SENATE BILL NO. 24
"An Act relating to mental health education; and
providing for an effective date."
9:54:32 AM
SENATOR ELVI GRAY-JACKSON, SPONSOR, read from the Sponsor
Statement (copy on file):
CSSB 24 amends the existing health education
curriculum statute to include mental health in all K-
12 health classrooms to adequately educate students on
vital information pertaining to mental health
symptoms, resources, and treatment.
The Alaska State Board of Education and Early
Development and the Alaska Department of Education and
Early Development (DEED) will develop guidelines for
instruction in mental health in consultation with
numerous stakeholders. Such organizations include, but
are not limited to, the National Council for
Behavioral Health, Providence Health and Services
Alaska, Southcentral Foundation, Anchorage Community
Mental Health Services, Inc., North Star Behavioral
Health System, and the National Alliance on Mental
Health Illness Alaska. The standards will be developed
in consultation with counselors, educators, students,
administrators, and other mental health organizations
to form effective guidelines for school boards,
teachers, and students.
After standards have been developed, the Alaska State
Board of Education and Early Development and DEED will
be responsible for implementation throughout the
Alaska school system. As with existing health
education curriculum, the DEED, the Department of
Health, and the Council on Domestic Violence and
Sexual Assault will provide technical assistance to
school districts in the development of personal safety
curricula. An existing school health education
specialist position will assist in coordinating the
program statewide.
CSSB 24 aims to decrease the stigma surrounding mental
illnesses and increase students' knowledge of mental
health, encouraging conversation around and
understanding of the issue.
9:57:06 AM
BESSE ODOM, STAFF FOR SENATOR GRAY-JACKSON, JUNEAU,
discussed the Sectional Analysis:
Section 1: The uncodified law of the State of Alaska
is amended by adding a new section to read Legislative
Intent. This section specifies what entities will
develop guidelines for instruction in mental health.
Section 2: This section amends AS 14.03.016(a) which
is the statute that relates to a parent's right to
direct the education of their child, by adding a new
subsection that would allow parents to be notified at
least two weeks before any class or program regarding
mental health is offered.
Section 3: This section amends AS 14.30.360(a) which
addresses health education curriculum and physical
activity guidelines by removing the word "physical"
when referencing instruction for health education and
adding "mental health" and "physical health" to the
list of curriculum items each district includes in
their health education programs.
Section 4: This section amends AS 14.30.360(b) which
addresses health education curriculum and physical
activity guidelines. The section clarifies that
developmentally appropriate instruction in mental
health be developed by the state board in consult with
the Department of Health, Department of Family and
Community Services and other entities. The section
also list the Department of Family and Community
Services as one of many entities that shall provide
technical assistance to school districts in the
development of personal safety curricula upon request.
Section 5: The uncodified law of the State of Alaska
is amended by adding a new section to read Report to
the Legislature. This section clarifies that a report
must be given to the Senate Secretary and Chief Clerk
of the House of Representatives. This report must
include a copy of developmentally appropriate
instruction in mental health developed by the State
Board of Education and Early Development and describe
the process used to develop such guidelines.
Section 6: The uncodified law of the State of Alaska
is amended by adding a new section to read Transition.
Specifically, the section requires that the state
Board of Education and Early Development shall develop
the mental health guidelines within two years after
the effective date of this Act. Section 7: This
section sets an effective date of July 1, 2023
10:00:01 AM
AT EASE
10:01:24 AM
RECONVENED
10:01:39 AM
ANN RINGSTAD, NAMI ALASKA, ANCHORAGE (via teleconference),
spoke in support of the legislation.
10:05:19 AM
JEN GRIFFIS, VICE PRESIDENT OF POLICY AND ADVOCACY, ALASKA
CHILDREN'S TRUST, ANCHORAGE (via teleconference), spoke in
support of the bill.
10:07:48 AM
Co-Chair Olson OPENED public testimony.
10:08:11 AM
STEVEN PEARCE, DIRECTOR, CITIZEN'S COMMISSION ON HUMAN
RIGHTS, SEATTLE (via teleconference), spoke against the
legislation.
Ms. Odom replied that the concerns expressed by Mr. Pearce
were best handled by those in the psychiatric field.
Co-Chair Olson CLOSED public testimony.
Co-Chair Olson discussed housekeeping.
SB 24 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:13:56 AM
The meeting was adjourned at 10:13 a.m.