Legislature(2023 - 2024)SENATE FINANCE 532
04/10/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Governor's Amendments: Office of Management and Budget: Department of Transportation and Public Facilities | |
| 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
April 10, 2024
9:22 a.m.
9:22:17 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:22 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;
Dom Pannone, Director of Program Management and
Administration, Department of Transportation and Public
Facilities.
SUMMARY
^GOVERNOR'S AMENDMENTS: OFFICE OF MANAGEMENT AND BUDGET:
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
9:23:59 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; March 14, 2024" (copy on file).
She pointed to slide 2, "FY2025 Updated Fiscal Summary":
Footnotes:
1. Percent of Market Value (POMV) from the Earnings
Reserve Account (ERA).
2. The Constitutional Budget Reserve (CBR) Cash
Balance per Department of Administration, Division of
Finance.
Co-Chair Stedman remarked that there was not an intent to
run a $860 million in the current year, and stressed that
the committee would work to balance the budget.
Co-Chair Hoffman noted that there would not be a
utilization of the CBR.
Co-Chair Stedman agree.
Ms. Sanders addressed slide 3, "Updated 10-Year Fiscal
Outlook."
9:30:53 AM
Co-Chair Stedman noted that there was interest in working
with OMB to minimize future supplemental requests.
Ms. Sanders replied that OMB was available to assist in
providing accurate information for the upcoming years.
Co-Chair Stedman remarked that it was important to not
utilize supplemental requests as adequate management of the
state's budget.
Ms. Sanders looked at slide 4, "Operating Governor Amend
Requests."
Co-Chair Stedman noted that there was a need to address the
upgrade for the delivery of the Permanent Fund Dividend
(PFD).
9:36:56 AM
Co-Chair Stedman noted that there was work on the statewide
transportation for the upcoming few years. He remarked that
the committee needed some assistance that may not have been
fully authorized.
9:38:15 AM
DOM PANNONE, DIRECTOR OF PROGRAM MANAGEMENT AND
ADMINISTRATION, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, stated that some of the projects were removed
as a matter of process in which plan they reside. He noted
that there was a significant issue because the metropolitan
planning commissions had planning rights within the
boundaries in the outline.
Co-Chair Stedman requested that there not be used of
acronyms.
Mr. Pannone explained that certain populations were
required to have a metropolitan planning organization
(MPO), that was responsible for planning transportation
projects. He noted that MPOs were required to have a four-
year transportation improvement plan. He remarked that a
conflict was a mismatch of projects.
9:40:27 AM
Co-Chair Stedman asked about advanced construction.
Mr. Pannone explained that advanced construction was
authorized in federal law to begin work on a project before
an official agreement from the federal government.
Co-Chair Stedman wondered whether the funding for advanced
construction was $500 million.
Mr. Pannone agreed, but would be reduced by using revenue
and adjusting to an official obligation.
Co-Chair Stedman wondered whether the goal was to reduce
"over authorization."
Mr. Pannone replied that it was the impact of tying
legislative authority to the amount of revenue received by
the Department of Transportation and Public Facilities
(DOT/PF).
Co-Chair Stedman queried the risk by producing a match in
the event that the project not receive authorization.
Mr. Pannone responded that the current governor's request,
which was the match, was for the amount of revenue. He
explained that there could only be advanced construction on
a project on the list.
Co-Chair Stedman surmised that there would not be excess
match money in DOT/PF.
Mr. Pannone agreed.
9:45:29 AM
Senator Bishop noted that there would be a limit on
advanced construction.
Mr. Pannone stated that the limit on advanced construction
was based on legislative authority and match funds.
Senator Bishop remarked that $50 million was the limit
until there was official authorization.
Mr. Pannone stated that it was the current expenditure
balance on the authorization.
Co-Chair Stedman asked for an explanation of the August
redistribution.
Mr. Pannone replied August redistribution happens toward
the end of the federal fiscal year when the balance of
remaining project funds from various states is
redistributed across the states.
Co-Chair Stedman wondered whether Alaska could receive a
redistribution in August.
Mr. Pannone replied that Alaska still had the authorization
that could be applied for the August redistribution.
Co-Chair Stedman requested a list of the projects
categorized by House district.
Mr. Pannone agreed to provide that information.
Senator Bishop hoped to work to examine the list of
projects.
9:49:49 AM
Senator Wilson wondered whether adjusting the number of the
project changes the timeline.
Mr. Pannone remarked that there were several program
groupings, but the federal government asked that those
projects be ungrouped in the list.
Co-Chair Stedman stated that he already had the list of
projects by House district.
Senator Bishop wondered whether there was an agreement for
funds to be spent in the Yukon Territory.
Mr. Pannone agreed.
Co-Chair Stedman asked for an explanation of that project.
Mr. Pannone replied that it was funding for a portion of
the Alaska Highway in the Yukon.
Senator Bishop remarked that the agreement went as far back
as World War II.
9:53:54 AM
AT EASE
9:56:18 AM
RECONVENED
9:57:09 AM
Co-Chair Stedman asked about the transportation plan, and
the amendments' impact on fiscal constraints for existing
projects.
Mr. Pannone stated that fiscal constraint was a requirement
in federal regulation that each year was constrained to
predictable and fairly certain revenues. He shared that
there had been some margin of about 30 percent, so there
was more projects than revenue.
Co-Chair Stedman wondered whether there was a plan for the
unapproved projects to move forward without alteration.
Mr. Pannone replied that the funding would be spread across
over four years, and it may go beyond four years. He stated
that there would be work on what that would look like with
the federal government.
10:01:58 AM
Co-Chair Stedman asked about the timing on the
authorization, and whether there needed to be an amendment.
Mr. Pannone responded that the $184 million was across the
four-year plan. He noted that the amount in FY 25 allowed
for six months to make the amendment.
10:04:26 AM
AT EASE
10:05:29 AM
RECONVENED
10:05:36 AM
Ms. Sanders discussed slide 5, "Capital Governor Amend
Requests."
Senator Kiehl asked about the 12-year-old ratification.
Ms. Sanders replied that that the Senior and Disabilities
Services system upgrade was initially appropriated in 2012,
but there were system issues that resulted in a shortfall
in anticipated revenue.
Co-Chair Stedman queried the impact on not ratifying the
project.
Ms. Sanders replied that it resulted in an audit finding,
so ratification was required to fix the audit finding.
10:10:08 AM
Senator Kiehl remarked that there may be an issue in the
courts to settle a constitutional question.
Co-Chair Stedman stated that the committee would take it
under advisement.
Ms. Sanders looked at slide 6, "Capital Supplemental
Requests."
Co-Chair Stedman thanked the presenters.
ADJOURNMENT
10:14:24 AM
The meeting was adjourned at 10:14 a.m.