Legislature(2023 - 2024)SENATE FINANCE 532
02/19/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Governor's Budget Amendments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
February 19, 2024
9:01 a.m.
9:01:22 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:01 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.
SUMMARY
^GOVERNOR'S BUDGET AMENDMENTS
9:02:19 AM
LACEY SANDERS, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
(OMB) discussed the presentation, "State of Alaska, Office
of Management and Budget, FY2025 Governor's Amended Budget,
Senate Finance Committee, February 19, 2024" (copy on
file).
Ms. Sanders addressed slide 2, "FY 2025 Updated Fiscal
Summary":
Footnotes:
1. Includes $61 million for the approved 2023 Fire
Season Disaster Declaration during FY2024.
2. The Constitutional Budget Reserve (CBR) Cash
Balance per Department of Revenue.
3. The Statutory Budget Reserve (SBR) balance reflects
the unobligated balance.
4. Percent of Market Value (POMV) from the Earnings
Reserve Account (ERA).
9:05:17 AM
Co-Chair Hoffman wondered how the shortfall would be
addressed in the amendments.
Ms. Sanders replied that the governor's budget would still
propose a withdrawal from the CBR and SBR.
Co-Chair Hoffman remarked that the legislature was highly
unlikely to approve a withdrawal from the CBR, and wondered
whether there were alternatives to the CBR.
Ms. Sanders replied that the governor recognized that the
budget was a process, and she stressed that the proposed
budget had a draw from the CBR. She remarked that the
legislature may take other actions, and noted that the
governor was willing to have conversations about that
subject.
Co-Chair Stedman wondered how a change to the payout of the
Permanent Fund Dividend (PFD) to 50/50 would change the
deficit number.
Ms. Sanders replied that a 50/50 dividend would change the
deficit by about $450 million, so the deficit would be
reduced to about $500 million.
Co-Chair Hoffman asked how a 75/25 dividend would affect
the deficit.
Ms. Sanders responded that she believed it would change the
deficit to approximately $250 million.
Co-Chair Hoffman remarked that the 75/25 dividend would
still result in a quarter of a million dollars deficit.
Ms. Sanders pointed to slide 3, "Updated 10-Year Fiscal
Outlook." She remarked that the slide was updated to
include the amendments and supplemental requests from the
governor.
Ms. Sanders discussed slide 4, "Operating Budget by Agency
(UGF)." She stated that the slide showed UGF and the
management plan budgets as compared to the prior year. She
noted that the largest appropriation was to the Department
of Education and Early Development (DEED).
9:10:16 AM
Co-Chair Stedman wondered how adjusted the DEED budget to
the previous year would affect the deficit.
Ms. Sanders agreed to follow up with information.
Ms. Sanders looked at slide 5, "Operating Governor Amend
Requests." She stated that the following slides were
divided into operating and capital budgets.
Ms. Sanders began with the Department of Administration
(DOA) budget amendments.
Ms. Sanders addressed the Department of Commerce, Community
and Economic Development (DCCED) amendments.
Ms. Sanders pointed to the Department of Education and
Early Development (DEED) amendments.
9:15:17 AM
Ms. Sanders discussed the Department of Environmental
Conservation (DEC) amendments.
Ms. Sanders pointed to the Department of Family and
Community Services (DFCS) amendments.
Ms. Sanders addressed the Department of Fish and Game (DFG)
amendments.
Co-Chair Stedman wondered whether the administration had
considered bringing forward a response plan for assisting
the fishing industry.
Ms. Sanders replied that the commissioners of both DFG and
DCCED were working on a plan to address those needs.
Co-Chair Stedman wondered whether the plan should be
expected to the legislature.
Ms. Sanders responded that she would follow up on timing
for the plan.
Co-Chair Hoffman stressed that it was particularly
important because the fishing industry provided millions of
dollars of employment to Alaskans.
Ms. Sanders pointed to the Department of Health (DOH)
amendments.
9:20:20 AM
Ms. Sanders addressed the Department of Labor and Workforce
Development (DLWD) amendments.
Ms. Sanders pointed to the Department of Natural Resources
(DNR) amendments.
Ms. Sanders discussed the Department of Public Safety (DPS)
amendments.
Senator Bishop asked for the cost of the classification
study per PCN.
Ms. Sanders agreed to provide that information.
Senator Kiehl noted some proposals using the Restorative
Justice Fund providing valuable resources, especially for
victim services. He wondered whether those requests were
based on the governor's proposed PFD level, and whether a
lesser amount would require replacing the authorization.
Ms. Sanders replied that the Restorative Justice Account
was based on the prior year's PFD.
9:25:37 AM
Co-Chair Hoffman thanked the governor for including
additional Village Public Safety Officers (VPSO) in the
budget, but asked Co-Chair Olson to investigate whether DPS
would provide additional efforts for recruitment.
Co-Chair Olson agreed that recruitment and retention were
major issues, and agreed to examine the issue.
Ms. Sanders addressed the Department of Revenue (DOR)
amendments.
Ms. Sanders pointed to the Department of Transportation and
Public Facilities (DOT) amendments.
Senator Bishop remarked that he supported road maintenance,
and noted that Tanana residents drove on the road that was
in dire need of maintenance. He felt that there needed to
be the same focus on rural roads as more urban roads.
Ms. Sanders remarked that there was a capital project
proposal for completion of the bridges and roads.
9:31:15 AM
Senator Kiehl wondered whether there had been conversations
with the Department of Law about meeting the public purpose
test for non-governmental roads. He also noted a fair
amount of whether the funding for farming roads could be
used throughout the state, or only for specific areas.
Ms. Sanders replied that she had not spoken to the
Department of Law, but would follow up on that issue. She
also deferred to DOT about the areas of funding covered by
the farming roads.
Co-Chair Olson wondered whether there would be an amended
supplemental budget related to Statewide Transportation
Improvement Program (STIP).
Ms. Sanders stated that it was "too premature" to say
whether there would be amendments, because DOT was working
on the STIP issue. She furthered that the STIP would be
addressing future projects.
Ms. Sanders looked at the University amendments.
Co-Chair Hoffman noted conversations about teachers and
employment turnover and whether the University had
addressed that issue. He asked Senator Bishop to summarize
that conversation.
Senator Bishop stated that there was a serious shortfall,
and remarked that he could not speak to the current levels.
He noted that there had been recruitment outreach to rural
Alaska.
9:35:29 AM
Co-Chair Hoffman remarked that the University system should
be examining the shortfalls.
Ms. Sanders displayed slide 6, "Capital Governor Amend
Requests."
Ms. Sanders addressed the DOA amendments.
Ms. Sanders pointed to the DCCED amendments.
Senator Bishop wondered whether the money was coming from
the Alaska Gasline Inducement Act (AGIA) funds.
Ms. Sanders replied in the affirmative.
Senator Bishop asked whether the administration was
concerned about a "run on a bank" and failure to pay.
Ms. Sanders replied that there was not a concern about
utilizing a small portion of the fund.
Ms. Sanders looked at the DEC amendments.
9:40:49 AM
Senator Bishop wondered whether the department employees
had the wherewithal to determine an asset versus a
liability.
Co-Chair Hoffman felt that marine surveys were critical
work.
Ms. Sanders addressed the Department of Law (LAW)
amendments.
Ms. Sanders looked at the Department of Military and
Veterans Affairs (DMVA) amendments.
Ms. Sanders highlighted the DOT budget amendments.
Ms. Sanders pointed to slide 7, "Operating Supplemental
Requests."
Ms. Sanders addressed slide 8, "Capital Supplemental
Requests."
Co-Chair Hoffman discussed committee business.
ADJOURNMENT
9:47:48 AM
The meeting was adjourned at 9:47 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Attachment B - FY2025 Capital Governor Amend Bill Summary Spreadsheet 2.14.2024.pdf |
SFIN 2/19/2024 9:00:00 AM |
Governor's Budget Amendments |
| 021924 Attachment A - FY2025 Governor Amend Operating Summary Spreadsheet - 2.14.2024.pdf |
SFIN 2/19/2024 9:00:00 AM |
Governor's Budget Amendments |
| Attachment D - FY2024 Capital Supplemental Governor Amend Bill Summary Spreadsheet 2.14.2024.pdf |
SFIN 2/19/2024 9:00:00 AM |
Govenror's Budget Amendments |
| Attachment C - FY2024 Supplemental Operating Summary Spreadsheet - 2.14.2024.pdf |
SFIN 2/19/2024 9:00:00 AM |
Governor's Budget Amendments |
| 021924 OMB Senate Finance FY2025 Gov Amend Budget Overview.pdf |
SFIN 2/19/2024 9:00:00 AM |
Governor's Budget Amendments |