Legislature(2021 - 2022)SENATE FINANCE 532

06/13/2021 09:00 AM CONFERENCE COMMITTEE ON HB69 AND HB71

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Audio Topic
11:42:32 AM Start
05:52:25 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CCS HB 69 Out of Committee
+= HB 71 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CCS HB 71 Out of Committee
Conference Committee motion sheets at:
http://www.legfin.akleg.gov/BudgetReports/LY2021
/Operating/SelectBudget.php
FY 21 Supplemental Operating Budget:
Dept of Public Safety
Fund Transfers
FY 21 Supplemental Capital Budget:
Dept of Commerce, Community & Economic Devlp.
Dept of Fish & Game
Dept of Health & Social Services
Dept of Natural Resources
Dept of Revenue
Executive Branch wide unallocated approp.
FY 22 Capital Budget
Dept of Commerce, Community & Economic Devlp.
Dept of Natural Resources
Dept of Transportation & Public Facilities
FY 22 Operating Budget
Dept of Commerce, Community & Economic Devlp.
Dept of Environmental Conservation
Dept of Health & Social Services
Dept of Labor & Workforce Development
Dept of Public Safety
Fund Capitalization
Permanent Fund
Fund Transfers
               32nd ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
                      SPEICAL SESSION                                                                                           
           CONFERENCE COMMITTEE ON HB 69 and HB 71                                                                              
                       June 13, 2021                                                                                            
                        11:42 a.m.                                                                                              
                                                                                                                                
11:42:32 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Foster called the Conference Committee meeting on HB
69 and HB 71 to order at 11:42 a.m.                                                                                             
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Neal Foster, Chair                                                                                               
Representative Kelly Merrick                                                                                                    
Representative Bart LeBon                                                                                                       
                                                                                                                                
Senate:                                                                                                                         
Senator Bert Stedman, Vice-Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
Alexei Painter, Director, Legislative Finance Division                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 69     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 69 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 71     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 71 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 69(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  and   making  capital  appropriations,                                                                    
    supplemental appropriations, and reappropriations."                                                                         
                                                                                                                                
SCS CSHB 69(FIN) AM S                                                                                                         
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making    capital    appropriations,                                                                    
     supplemental appropriations,  and reappropriations; and                                                                    
     providing for an effective date."                                                                                          
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 71(FIN) am                                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive    mental    health    program;    making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 71(FIN)                                                                                   
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health program;  making  capital                                                                    
     appropriations  and  supplemental  appropriations;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
11:42:57 AM                                                                                                                   
                                                                                                                                
Chair  Foster  invited  Alexei   Painter,  Director  of  the                                                                    
Legislative Finance  Division to  join the committee  at the                                                                    
table. He noted that the  committee would be addressing open                                                                    
items  in  HB 69  and  HB  71  based  on the  motion  sheets                                                                    
distributed to  members and dated  June 13th (copy  on file)                                                                    
on the departments of:                                                                                                          
                                                                                                                                
     FY 21 SUPPLEMENTAL OPERATING BUDGET                                                                                      
                                                                                                                                
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
     FUND TRANSFERS                                                                                                             
                                                                                                                                
     FY 21 SUPPLEMENTAL CAPITAL BUDGET                                                                                        
     DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC                                                                             
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF FISH AND GAME                                                                                                
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF REVENUE                                                                                                      
     EXECUTIVE BRANCH WIDE UNALLOCATED APPROPRIATIONS                                                                           
                                                                                                                                
     FY 22 CAPITAL BUDGET                                                                                                     
                                                                                                                                
     DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC                                                                             
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
    DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                          
                                                                                                                                
     FY 22 OPERATING BUDGET                                                                                                   
                                                                                                                                
     DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC                                                                             
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
     FUND CAPITALIZATION                                                                                                        
     PERMANENT FUND                                                                                                             
     FUND TRANSFERS                                                                                                             
                                                                                                                                
Chair Foster relayed that the  committee would begin with FY                                                                    
22   Operating   Budget   items  for   the   Department   of                                                                    
Environmental Conservation, Department  of Health and Social                                                                    
Services, and Department of Public Safety.                                                                                      
                                                                                                                                
FY 22 OPERATING BUDGET: DEPARTMENT OF ENVIRONMENTAL                                                                           
CONSERVATION                                                                                                                  
                                                                                                                                
11:43:36 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman MOVED that the Committee adopt the                                                                           
following   within    the   Department    of   Environmental                                                                    
Conservation budget:                                                                                                            
                                                                                                                                
     Item 1    Senate    All Items                                                                                              
     Item 2    House                                                                                                            
                                                                                                                                
                                                                                                                                
Representative LeBon OBJECTED. He  spoke to item 2 regarding                                                                    
detailed remediation  plans for contaminated sites  and site                                                                    
identification. He discussed that  there were commercial and                                                                    
residential sites with contamination.  He expected the focus                                                                    
would  be on  commercial sites.  He highlighted  residential                                                                    
properties that  may have a  heating oil tank leak  that was                                                                    
not  considered   material  versus  a  former   gas  station                                                                    
commercial property  that would be material.  He stated that                                                                    
the number of  potential sites totaled in  the thousands. He                                                                    
believed the effort should focus  on commercial sites first.                                                                    
He WITHDREW his OBJECTION.                                                                                                      
                                                                                                                                
There being NO  further OBJECTION, items 1 and  2 within the                                                                    
Department  of Environmental  Conservation  FY 22  operating                                                                    
budget were ADOPTED.                                                                                                            
                                                                                                                                
FY  22 OPERATING  BUDGET: DEPARTMENT  OF  HEALTH AND  SOCIAL                                                                  
SERVICES:                                                                                                                     
                                                                                                                                
11:45:17 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 22 operating budget:                                                                                                
                                                                                                                                
     Item 35   Senate                                                                                                           
     Item 36   Senate    Modify, minus $10 million.                                                                             
                                                                                                                                
There  being  NO  OBJECTION,  items 35  and  36  within  the                                                                    
Department  of Health  and Social  Services FY  22 operating                                                                    
budget were ADOPTED.                                                                                                            
                                                                                                                                
11:45:44 AM                                                                                                                   
                                                                                                                                
Representative  LeBon MOVED  that  the  Committee adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 22 operating budget:                                                                                                
                                                                                                                                
     Item 46 House                                                                                                              
     Item 47 House                                                                                                              
                                                                                                                                
Vice-Chair Stedman OBJECTED.                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Representative     Merrick,     Senator     Olson,                                                                    
Representative LeBon                                                                                                            
OPPOSED:  Senator  Bishop, Senator  Stedman,  Representative                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt items 46 and 47 - House- FAILED (3/3).                                                                      
                                                                                                                                
11:46:57 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 22 operating budget:                                                                                                
                                                                                                                                
     Item 46 Senate                                                                                                             
     Item 47 Senate                                                                                                             
                                                                                                                                
There being NO OBJECTION, items 46  and 47 - Senate - within                                                                    
the  Department   of  Health  and  Social   Services  FY  22                                                                    
operating budget were ADOPTED.                                                                                                  
                                                                                                                                
11:47:17 AM                                                                                                                   
                                                                                                                                
Representative  Lebon MOVED  that  the  Committee adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 22 operating budget:                                                                                                
                                                                                                                                
     Item 44 House                                                                                                              
                                                                                                                                
Chair  Foster  OBJECTED.  Chair Foster  explained  that  the                                                                    
proposal was to accept the  House cut of $350,000 versus the                                                                    
Senate cut of $163,000.                                                                                                         
                                                                                                                                
Senator Olson asked  for the current location  in the motion                                                                    
sheets.                                                                                                                         
                                                                                                                                
Chair  Foster clarified  that  the  committee was  currently                                                                    
considering  item  44. He  explained  that  the item  was  a                                                                    
decrement  to abortions  and the  proposal would  accept the                                                                    
larger cut  of $350,000  passed by the  House. He  noted his                                                                    
objection to the item.                                                                                                          
                                                                                                                                
11:49:00 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:49:26 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Chair Foster MAINTAINED his OBJECTION to item 44.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Senator  Stedman, Representative  Merrick, Senator                                                                    
Bishop, Representative LeBon, Senator Olson                                                                                     
OPPOSED: Representative Foster                                                                                                  
                                                                                                                                
The MOTION  PASSED (5/1). There being  NO further OBJECTION,                                                                    
item 44 within the Department  of Health and Social Services                                                                    
FY 22 operating budget was ADOPTED.                                                                                             
                                                                                                                                
11:50:17 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 22 operating budget:                                                                                                
                                                                                                                                
     Item 45  Senate                                                                                                            
                                                                                                                                
Chair   Foster  OBJECTED.   He   explained   the  item   was                                                                    
conditional language regarding abortions.  He read the first                                                                    
sentence of  the conditional language passed  by the Senate:                                                                    
"No  money   appropriated  in  this  appropriation   may  be                                                                    
expended   for  an   abortion  that   is  not   a  mandatory                                                                    
service..." He MAINTAINED his OBJECTION.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Senator   Olson,  Representative   LeBon,  Senator                                                                    
Stedman, Senator Bishop, Representative Merrick                                                                                 
OPPOSED: Representative Foster                                                                                                  
                                                                                                                                
The MOTION  PASSED (5/1). There being  NO further OBJECTION,                                                                    
item 45 within the Department  of Health and Social Services                                                                    
FY 22 operating budget was ADOPTED.                                                                                             
                                                                                                                                
11:51:44 AM                                                                                                                   
                                                                                                                                
FY 22  OPERATING BUDGET: DEPARTMENT  OF LABOR  AND WORKFORCE                                                                  
DEVELOPMENT:                                                                                                                  
                                                                                                                                
11:51:50 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Department of  Labor  and  Workforce                                                                    
Development FY 22 operating budget:                                                                                             
                                                                                                                                
     Item 4    House                                                                                                            
     Item 5    House                                                                                                            
                                                                                                                                
There  being  NO  OBJECTION,  items   4  and  5  within  the                                                                    
Department  of   Labor  and  Workforce  Development   FY  22                                                                    
operating budget were ADOPTED.                                                                                                  
                                                                                                                                
FY 22 OPERATING BUDGET: DEPARTMENT OF PUBLIC SAFETY:                                                                          
                                                                                                                                
11:52:15 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the Department  of  Public  Safety FY  22                                                                    
operating budget:                                                                                                               
                                                                                                                                
     Item 9    Senate                                                                                                           
                                                                                                                                
Representative LeBon OBJECTED. He  read the last sentence of                                                                    
the intent language passed by the House:                                                                                        
                                                                                                                                
     "It  is   the  intent  of  the   legislature  that  the                                                                    
     Department of  Public Safety submit a  report detailing                                                                    
     options for  boroughs with over 100,000  population and                                                                    
     sufficient tax base  to assume financial responsibility                                                                    
     for  the  state-provided  public safety  services  they                                                                    
     receive."                                                                                                                  
                                                                                                                                
Representative LeBon  supported the  language passed  by the                                                                    
House. He believed  the state needed to look  at some method                                                                    
within  organized boroughs  to assist  in supporting  public                                                                    
safety with  troopers or  some other  form. He  relayed that                                                                    
his district,  House District 1,  was located in  the center                                                                    
of Fairbanks  within the city  limits. He detailed  that his                                                                    
constituents  paid   for  public  safety  provided   by  the                                                                    
Fairbanks  Police  Department.  He  believed  all  organized                                                                    
parts of  the state should  share in the  responsibility. He                                                                    
WITHDREW his OBJECTION.                                                                                                         
                                                                                                                                
There  being  NO  further  OBJECTION,   item  9  within  the                                                                    
Department of Public Safety FY 22 budget was ADOPTED.                                                                           
                                                                                                                                
Chair Foster relayed his intent  to recess the meeting until                                                                    
a later time.                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  asked if there  would be time  for lunch                                                                    
during the recess.                                                                                                              
                                                                                                                                
Chair Foster agreed. He explained  that the goal was to meet                                                                    
again soon  to give time  for Legislative Legal  Services to                                                                    
draft the final bill, which  would take between eight to ten                                                                    
hours.                                                                                                                          
                                                                                                                                
Vice-Chair Stedman  requested a  break of  45 minutes  to an                                                                    
hour.                                                                                                                           
                                                                                                                                
Chair Foster agreed.                                                                                                            
                                                                                                                                
11:54:38 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
5:10:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Chair  Foster  shared  that the  committee  would  hear  all                                                                    
remaining  budget  items.  He  listed  the  departments  and                                                                    
appropriations. He  relayed the  committee would  first hear                                                                    
the FY 21 Supplemental Operating Budget items.                                                                                  
                                                                                                                                
^FY 21  SUPPLEMENTAL OPERATING BUDGET: DEPARTMENT  OF PUBLIC                                                                  
SAFETY                                                                                                                        
                                                                                                                                
5:12:01 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the Department  of  Public  Safety FY  21                                                                    
supplemental operating budget:                                                                                                  
                                                                                                                                
     Item 2 Senate                                                                                                              
                                                                                                                                
There being  NO OBJECTION, item  2 within the  Department of                                                                    
Public  Safety  FY  21  supplemental  operating  budget  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                              
^FY 21 SUPPLEMENTAL OPERATING BUDGET: FUND TRANSFERS                                                                          
                                                                                                                                
5:12:24 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Fund Transfers  FY  21  supplemental                                                                    
operating budget:                                                                                                               
                                                                                                                                
     Item 1    Senate    Modify, estimate to $85.7 million.                                                                     
     Item 2    Senate                                                                                                           
                                                                                                                                
                                                                                                                                
There  being NO  OBJECTION, items  1 and  2 within  the Fund                                                                    
Transfers FY 21 supplemental operating budget were ADOPTED.                                                                     
                                                                                                                                
Chair Foster relayed that the  committee would next hear the                                                                    
FY 21 Supplemental Capital Budget items.                                                                                        
                                                                                                                              
^FY 21 SUPPLEMENTAL CAPITAL  BUDGET: DEPARTMENT OF COMMERCE,                                                                  
COMMUNITY AND ECONOMIC DEVELOPMENT                                                                                            
                                                                                                                                
5:12:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within  the Department of Commerce,  Community and                                                                    
Economic Development FY 21 supplemental capital budget:                                                                         
                                                                                                                                
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate    Modify, minus $190 million.                                                                            
     Item 3    Senate                                                                                                           
     Item 4    Senate    Modify, minus $30 million.                                                                             
     Item 5    House     Modify, minus $10 million.                                                                             
     Item 6    Senate    Modify, minus $3 million.                                                                              
     Item 7    House                                                                                                            
     Item 8    Senate                                                                                                           
     Item 9    Senate                                                                                                           
     Item 10   House     Modify, fund source swap from 1269                                                                     
              (CSLFRF) to 1243 (SBR). Change                                                                                    
              effective date to July 1, 2021.                                                                                   
                                                                                                                                
There  being NO  OBJECTION, items  1 through  10 within  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
FY 21 supplemental capital budget were ADOPTED.                                                                                 
                                                                                                                                
^FY 21  SUPPLEMENTAL CAPITAL BUDGET: DEPARTMENT  OF FISH AND                                                                  
GAME                                                                                                                          
                                                                                                                                
5:14:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within the  Department  of Fish  and  Game FY  21                                                                    
supplemental capital budget:                                                                                                    
                                                                                                                                
     Item 2    Senate    Modify, minus $14 million.                                                                             
                                                                                                                                
There being  NO OBJECTION, item  2 within the  Department of                                                                    
Fish  and  Game  FY  21   supplemental  capital  budget  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
^FY  21 SUPPLEMENTAL  CAPITAL BUDGET:  DEPARTMENT OF  HEALTH                                                                  
AND SOCIAL SERVICES                                                                                                           
                                                                                                                                
5:14:34 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Department   of  Health  and  Social                                                                    
Services FY 21 supplemental capital budget:                                                                                     
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There being  NO OBJECTION, item  1 within the  Department of                                                                    
Health  and  Social  Services  FY  21  supplemental  capital                                                                    
budget was ADOPTED.                                                                                                             
                                                                                                                                
^FY 21  SUPPLEMENTAL CAPITAL  BUDGET: DEPARTMENT  OF NATURAL                                                                  
RESOURCES                                                                                                                     
                                                                                                                                
5:14:53 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of  Natural Resources FY 21  supplemental capital                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1    Senate    Both Items                                                                                             
                                                                                                                                
Representative LeBon  OBJECTED for discussion. He  asked for                                                                    
further  clarification  about  where  the  Alaska  landslide                                                                    
hazards existed.                                                                                                                
                                                                                                                                
Mr. Painter replied that he  did not have the information on                                                                    
hand.                                                                                                                           
                                                                                                                                
Representative  LeBon   wondered  whether  there   were  any                                                                    
landslide hazards  in his district  that he was  unaware of.                                                                    
He did not believe there were. He WITHDREW his OBJECTION.                                                                       
                                                                                                                                
There  being  NO  further  OBJECTION,   item  1  within  the                                                                    
Department of  Natural Resources FY 21  supplemental capital                                                                    
budget was ADOPTED.                                                                                                             
                                                                                                                                
^FY 21 SUPPLEMENTAL CAPITAL BUDGET: DEPARTMENT OF REVENUE                                                                     
                                                                                                                                
5:15:43 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following   within  the   Department   of   Revenue  FY   21                                                                    
supplemental capital budget:                                                                                                    
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There  being  NO  OBJECTION, item  1  within  Department  of                                                                    
Revenue the FY 21 supplemental capital budget was ADOPTED.                                                                      
                                                                                                                                
^FY 21  SUPPLEMENTAL CAPITAL  BUDGET: EXECUTIVE  BRANCH WIDE                                                                  
UNALLOCATED APPROPRIATIONS                                                                                                    
                                                                                                                                
5:16:01 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the  Executive  Branch  Wide  Unallocated                                                                    
Appropriations FY 21 supplemental capital budget:                                                                               
                                                                                                                                
     Item 1    House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, item  1 within  Executive Branch                                                                    
Wide  Unallocated  Appropriations  the  FY  21  supplemental                                                                    
capital budget was ADOPTED.                                                                                                     
                                                                                                                                
Chair Foster relayed that the  committee would next hear the                                                                    
FY 22 Capital Budget items.                                                                                                     
                                                                                                                                
^FY  22 CAPITAL  BUDGET: DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                  
AND ECONOMIC DEVELOPMENT                                                                                                      
                                                                                                                                
5:16:40 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within  the Department of Commerce,  Community and                                                                    
Economic Development FY 22 capital budget:                                                                                      
                                                                                                                                
     Item 12   Senate    Modify, fund source swap from 1269                                                                     
                         (CSLFRF) to 1004 (UGF).                                                                                
     Item 14   Senate    Modify, fund source swap from 1269                                                                     
                         (CSLFRF) to 1004 (UGF).                                                                                
                                                                                                                                
There being NO OBJECTION, items  12 and 14 within Department                                                                    
of  Commerce,  Community  and  Economic  Development  FY  22                                                                    
capital budget were ADOPTED.                                                                                                    
                                                                                                                                
^FY 22 CAPITAL BUDGET: DEPARTMENT OF NATURAL RESOURCES                                                                        
                                                                                                                                
5:17:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within  the Department of Natural  Resources FY 22                                                                    
capital budget related to the long trail project:                                                                               
                                                                                                                                
     Items 27 - 36 Senate     Modify, fund source swap                                                                          
                   from 1269 (CSLFRF) to                                                                                        
                              1004 (UGF).                                                                                       
                                                                                                                                
There  being  NO  OBJECTION,  items  27  through  36  within                                                                    
Department of  Natural Resources  FY 22 capital  budget were                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
^FY  22 CAPITAL  BUDGET:  DEPARTMENT  OF TRANSPORTATION  AND                                                                  
PUBLIC FACILITIES                                                                                                             
                                                                                                                                
5:18:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following  within  the   Department  of  Transportation  and                                                                    
Public Facilities FY 22 capital budget:                                                                                         
                                                                                                                                
     Item 10   Senate                                                                                                           
                                                                                                                                
There  being  NO OBJECTION,  item  10  within Department  of                                                                    
Transportation and  Public Facilities  FY 22  capital budget                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Senator  Olson  requested to  return  to  the Department  of                                                                    
Natural  Resources budget  to ask  questions related  to the                                                                    
long trail project  [items 27 through 36]. He  asked why the                                                                    
project had been broken up into numerous segments.                                                                              
                                                                                                                                
Mr.  Painter replied  that the  numerous segments  reflected                                                                    
the amendment  structure that had  passed in the  Senate. He                                                                    
did  not have  information  on why  the  amendment had  been                                                                    
written the way it had.                                                                                                         
                                                                                                                                
Senator Olson asked  if the governor would  have the ability                                                                    
to veto any segment of the trail.                                                                                               
                                                                                                                                
Mr. Painter  confirmed that the  governor could veto  one of                                                                    
the segments  because they were separate  allocations within                                                                    
one large project.                                                                                                              
                                                                                                                                
Chair  Foster  asked  if  Senator   Olson  was  looking  for                                                                    
information on the fund source change.                                                                                          
                                                                                                                                
Senator Olson  stated his primary concern  was the potential                                                                    
veto of  a specific section  of the long trail.  He wondered                                                                    
how to maintain the full length  of the trail. He stated his                                                                    
understanding that the governor could  veto a segment of the                                                                    
trail.                                                                                                                          
                                                                                                                                
Mr. Painter agreed. He clarified  that the project would not                                                                    
construct   the   entire   trail.  The   funding   was   for                                                                    
improvements  within the  future  route.  He explained  that                                                                    
several hundred  miles of new  trail would still  be needed.                                                                    
The  project increments  in the  budget primarily  reflected                                                                    
connections  between  existing  trails. He  elaborated  that                                                                    
even if all  of the items were funded, there  would not be a                                                                    
complete Fairbanks  to Seward trail.  He detailed  that even                                                                    
if  there were  only some  aspects completed,  it would  not                                                                    
necessarily defeat the purpose of the project.                                                                                  
                                                                                                                                
Vice-Chair  Stedman  asked  whether the  breakout  had  been                                                                    
included prior to the fund  source change when the committee                                                                    
had adopted the Department of Natural Resources budget.                                                                         
                                                                                                                                
Mr.  Painter confirmed  the breakout  existed  prior to  the                                                                    
fund source changes.                                                                                                            
                                                                                                                                
Vice-Chair Stedman  asked what  process the  committee would                                                                    
have had to  undergo in order to consolidate  the items into                                                                    
one appropriation.                                                                                                              
                                                                                                                                
5:21:44 PM                                                                                                                    
                                                                                                                                
Mr. Painter replied  that he was not  certain the conference                                                                    
committee  could take  the action  under  limited powers  of                                                                    
free  conference.   He  thought   existing  powers   may  be                                                                    
required. He stated that the  items would be within the same                                                                    
appropriation;  therefore, he  believed the  committee could                                                                    
make a  structure change. He  advised that the  action would                                                                    
require  making a  motion to  consolidate the  items into  a                                                                    
single item.  He noted  that the  governor would  still have                                                                    
the ability to veto an amount  and specify that the veto was                                                                    
directed at a particular part of the project.                                                                                   
                                                                                                                                
Senator Olson  stated that  he did not  believe it  had been                                                                    
the intent of the maker of  the amendment to cut the project                                                                    
up into segments that could  be subject to veto. He reasoned                                                                    
that the  committee was dealing  with what it had  and would                                                                    
continue on.                                                                                                                    
                                                                                                                                
Vice-Chair Stedman agreed.                                                                                                      
                                                                                                                                
Chair Foster  relayed that the  committee would  address the                                                                    
FY 22 Operating Budget items.                                                                                                   
                                                                                                                                
^FY 22  OPERATING BUDGET: DEPARTMENT OF  COMMERCE, COMMUNITY                                                                  
AND ECONOMIC DEVELOPMENT                                                                                                      
                                                                                                                                
5:22:42 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within  the Department of Commerce,  Community and                                                                    
Economic Development FY 22 operating budget:                                                                                    
                                                                                                                                
     Item 4    Senate    Modify, minus $10 million.                                                                             
                                                                                                                                
There being  NO OBJECTION, item  4 within the  Department of                                                                    
Commerce,   Community  and   Economic   Development  FY   22                                                                    
operating budget was ADOPTED.                                                                                                   
                                                                                                                                
5:23:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:24:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^FY 22 OPERATING BUDGET: FUND CAPITALIZATION                                                                                  
                                                                                                                                
5:24:32 PM                                                                                                                    
                                                                                                                                
Chair  Foster relayed  that item  1  in Fund  Capitalization                                                                    
would remain  open and  would be  addressed in  an amendment                                                                    
later in the meeting.                                                                                                           
                                                                                                                                
^FY 22 OPERATING BUDGET: PERMANENT FUND                                                                                       
                                                                                                                                
5:24:48 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Permanent Fund FY 22 operating budget:                                                                                          
                                                                                                                                
     Item 1    Senate    Modify, per Amendment 1                                                                                
                                                                                                                                
Vice-Chair  Stedman   MOVED  to   ADOPT  Amendment   1,  32-                                                                    
GH1509\A.10  (Marx, 6/13/21)  (copy on  file) pertaining  to                                                                    
item 1.                                                                                                                         
                                                                                                                                
Chair Foster OBJECTED for discussion.                                                                                           
                                                                                                                                
5:25:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:25:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman  explained Amendment 1.  Amendment number                                                                    
1  provided  for  an   approximate  $1,100  dollar  dividend                                                                    
without  overdrawing  the  Permanent Fund  Earnings  Reserve                                                                    
Account  (ERA). The  total cost  of the  amendment was  $739                                                                    
million: $371  million from the  General Fund,  $320 million                                                                    
from  the  Statutory  Budget Reserve  (SBR)  fund,  and  $48                                                                    
million from the Constitutional Budget Reserve (CBR) fund.                                                                      
                                                                                                                                
5:26:49 PM                                                                                                                    
                                                                                                                                
Chair Foster  relayed that he would  maintain his objection.                                                                    
He reasoned  that if  there was  ever a time  to pay  a full                                                                    
PFD,  it  was the  present.  He  supported the  full  Senate                                                                    
number and would vote against the motion.                                                                                       
                                                                                                                                
Senator  Olson  spoke in  opposition  to  the amendment.  He                                                                    
stated  there  were  a number  of  legislators  representing                                                                    
regions of  Alaska where  constituents were  fully dependent                                                                    
on the  money from the PFD.  He remarked that the  idea that                                                                    
the  PFD  was  in  statute  made it  difficult  to  see  the                                                                    
amendment go  through with  a lower  amount. He  thought the                                                                    
reduced PFD would be a disservice to the state's economy.                                                                       
                                                                                                                                
Vice-Chair Stedman  supported the amendment. He  stated that                                                                    
although  an $1,100  PFD was  substantially  lower than  the                                                                    
statutory PFD of  approximately $3,200 and the  50/50 PFD of                                                                    
about $2,300 passed by the  Senate, the $1,100 put the state                                                                    
up against the maximum draw  rate from the ERA. He furthered                                                                    
that not  overdrawing the Permanent Fund,  including the PFD                                                                    
and all  other expenditures,  took the state's  cash balance                                                                    
down to the minimum level of  a little under $500 million in                                                                    
the CBR.                                                                                                                        
                                                                                                                                
Representative LeBon spoke  in support of the  $1,100 PFD in                                                                    
the amendment.  He emphasized  the importance  of protecting                                                                    
of the Permanent Fund, which  the amendment accomplished. He                                                                    
stated that  not overdrawing  the ERA  and respecting  the 5                                                                    
percent  draw   rate  were  additional   considerations.  He                                                                    
believed  the amendment  reflected  a  reasonable effort  to                                                                    
achieve a good  PFD amount. He highlighted  that the average                                                                    
PFD over  time was around  $1,100 give or take.  He believed                                                                    
it would require the legislature  to develop a long-term PFD                                                                    
formula.  He believed  it was  time for  the legislature  to                                                                    
take action on the formula.  He noted that several different                                                                    
bills had been proposed on  the subject. He remarked that it                                                                    
needed to  be the legislature's intention  to accomplish the                                                                    
goal before the 32nd legislature completed its work.                                                                            
                                                                                                                                
Senator Olson  congratulated the  maker of the  amendment on                                                                    
what  he characterized  as an  "ingenious" way  of combining                                                                    
the SBR, CBR, and general funds to try to make it happen.                                                                       
                                                                                                                                
Chair  Foster MAINTAINED  his OBJECTION.  He clarified  that                                                                    
the amendment would  take the Senate position  for an $1,100                                                                    
PFD.                                                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Senator     Bishop,    Representative     Merrick,                                                                    
Representative LeBon, Senator Stedman                                                                                           
OPPOSED: Senator Olson, Representative Foster                                                                                   
                                                                                                                                
The MOTION  PASSED (4/2). There being  NO further OBJECTION,                                                                    
item  1 and  Amendment 1  within  the Permanent  Fund FY  22                                                                    
operating budget were ADOPTED.                                                                                                  
                                                                                                                                
5:32:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:32:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Chair Foster clarified that the  committee was continuing on                                                                    
with items within the Permanent Fund section of the budget.                                                                     
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within the Permanent Fund FY 22 operating budget:                                                                     
                                                                                                                                
     Item 2    Senate                                                                                                           
     Item 3    House                                                                                                            
     Item 4    Senate                                                                                                           
                                                                                                                                
There  being   NO  OBJECTION,  items  2   through  4  within                                                                    
Permanent Fund FY 22 operating budget were ADOPTED.                                                                             
                                                                                                                                
^FY 22 OPERATING BUDGET: FUND TRANSFERS                                                                                       
                                                                                                                                
5:33:04 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
following within the Fund Transfers FY 22 operating budget:                                                                     
                                                                                                                                
     Item 1    House                                                                                                            
     Item 2    House                                                                                                            
     Item 3    Senate    Modify, minus $250 million.                                                                            
                                                                                                                                
There  being NO  OBJECTION, items  1 through  3 within  Fund                                                                    
Transfers FY 22 operating budget were ADOPTED.                                                                                  
                                                                                                                                
5:33:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:34:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman  made comments pertaining to  the PFD. He                                                                    
remarked that the  committee had just discussed  the PFD and                                                                    
the   state's   other   savings  components   being   nearly                                                                    
liquidated  (with the  exception of  the Permanent  Fund and                                                                    
ERA).  He  shared  that  the  House  and  Senate  conference                                                                    
committee  members had  collectively agreed  to transfer  $4                                                                    
billion from the ERA to  the constitutionally protected fund                                                                    
principal in order  to ensure the amount  would be protected                                                                    
in  perpetuity for  future generations  no  matter what  the                                                                    
legislature  did  moving  forward.  He  explained  that  the                                                                    
amount would  be additive to  the symbolic check  [posted on                                                                    
the wall  of the Senate  Finance Committee room]  behind his                                                                    
seat  reflecting  the  transfer  of $4.9  billion  into  the                                                                    
Permanent Fund principal a couple of years earlier.                                                                             
                                                                                                                                
Vice-Chair  Stedman elaborated  that once  the transfer  was                                                                    
complete, the  current and previous legislatures  would have                                                                    
transferred  almost 10  percent of  the total  value of  the                                                                    
Permanent Fund to the principal  of the fund. He highlighted                                                                    
that   the  contribution   was  significant   and  reflected                                                                    
collective work  by both bodies.  He was looking  forward to                                                                    
similar  discussion  the next  year  with  regard to  making                                                                    
another contribution  moving forward through  robust markets                                                                    
to protect the principal for future Alaskans.                                                                                   
                                                                                                                                
5:37:12 PM                                                                                                                    
                                                                                                                                
Chair   Foster  stated   there  were   amendments  for   the                                                                    
committee's   consideration.  He   noted  that   before  the                                                                    
amendments could  be moved the  committee needed  to rescind                                                                    
its action on a previous item.                                                                                                  
                                                                                                                                
5:37:37 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:37:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Stedman  MOVED to RESCIND action  on Debt Service                                                                    
Item  17 related  to school  bond debt  reimbursement. There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
Vice-Chair  Stedman   MOVED  to   ADOPT  Amendment   2,  32-                                                                    
GH1509\S.A.13 (Marx, 6/13/21) (copy on file).                                                                                   
                                                                                                                                
Chair Foster OBJECTED for discussion.                                                                                           
                                                                                                                                
Vice-Chair  Stedman   explained  that  the   amendment  made                                                                    
several appropriations:                                                                                                         
                                                                                                                                
     1.   Lines 5 through 15  replaces Debt Service item 17.                                                                    
     As occurs in the  Senate's budget, this amendment funds                                                                    
     School  Debt  Reimbursement  at   100  percent  of  the                                                                    
     statutory formula                                                                                                          
     a.   but replaces $54.74 million UGF with                                                                                  
          i. $4.15 million from the Statutory Budget                                                                            
          Reserve                                                                                                               
          ii. $48 million 594 thousand and 460 dollars                                                                          
          ($48,594,460) from the CBR                                                                                            
     2.   Page 1, Lines 16 through 23 appropriates $114                                                                         
     million from the CBR to the oil and gas tax credit                                                                         
     fund                                                                                                                       
     3.   CBR Language                                                                                                          
     a.   Page 2 lines 4 through 24 contain the following                                                                       
     CBR language                                                                                                               
          i.   Subsection (a) appropriates the CBR Reverse                                                                      
          Sweep                                                                                                                 
          ii. Subsection b contains the CBR deficit                                                                             
          filling language                                                                                                      
          iii. Subsection (c) clarifies that subsections a                                                                      
          and b are appropriated per constitutional                                                                             
          restrictions.                                                                                                         
                                                                                                                                
Chair Foster WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Foster stated that the action closed out reopened                                                                         
item Debt Service 17 and Fund Capitalization item 1.                                                                            
                                                                                                                                
5:40:45 PM                                                                                                                    
                                                                                                                                
Representative LeBon asked for verification that the oil                                                                        
and gas tax credits were funded at $114 million from the                                                                        
CBR.                                                                                                                            
                                                                                                                                
Chair Foster responded affirmatively.                                                                                           
                                                                                                                                
5:41:14 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stedman MOVED to ADOPT Amendment 3 (copy on                                                                          
file).                                                                                                                          
                                                                                                                                
Chair Foster OBJECTED for discussion.                                                                                           
                                                                                                                                
Vice-Chair Stedman explained Amendment 3:                                                                                       
                                                                                                                                
     There are two fund source  swapping reports in front of                                                                    
     you which make  up amendment 3. The  first packet deals                                                                    
     with  capital projects  and  swaps  out hollow  federal                                                                    
     receipt   authority  and   instead  uses   Unrestricted                                                                    
     General  Funds  (the  Statutory Budget  Reserve  Fund).                                                                    
     Also  included  is  swapping out  Unrestricted  General                                                                    
     Fund  in a  project and  instead using  Federal Highway                                                                    
     Administration (FHWA)  Coronavirus Response  and Relief                                                                    
     Supplemental   Appropriation    Act   (CRRSA)   federal                                                                    
     instead. There is a technical  correction to adjust the                                                                    
     amount  of  the   Alaska  Housing  Finance  Corporation                                                                    
     (AHFC) dividend  so that fund source  is not overspent.                                                                    
     The second  packet deals with the  operating budget and                                                                    
     has  250  million  of  UGF  revenue  replacement  using                                                                    
     American Rescue  Plan Act (ARPA)  funds. There  is also                                                                    
     17.5   million  of   FHWA  CRRSA   used  in   place  of                                                                    
     Unrestricted General  Funds. 800 thousand  of Statutory                                                                    
     Designated Program  Receipt authority was  also swapped                                                                    
     out for UGF.                                                                                                               
                                                                                                                                
Chair Foster WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO further OBJECTION, Amendment 3 was ADOPTED.                                                                      
                                                                                                                                
5:43:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  that  the  Committee  adopt  the                                                                    
Senate effective dates for supplemental items.                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair  Foster  asked  Mr.  Painter  to  walk  the  committee                                                                    
members through the implications of a CBR/reverse sweep.                                                                        
                                                                                                                                
5:44:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:45:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr.  Painter referenced  a document  titled  "Impact of  CBR                                                                    
Vote Failure  on HB69/71," dated 6/13/21  distributed by LFD                                                                    
(copy on file). He explained  that the document outlined how                                                                    
a failure of the CBR vote  would impact the budget. He noted                                                                    
there were several items that  were linked beyond the normal                                                                    
amounts.  He detailed  that without  the reverse  sweep vote                                                                    
the  Power Cost  Equalization (PCE)  program, the  community                                                                    
assistance program  ($12.4 million  in the budget  went from                                                                    
PCE  to   community  assistance),  the   Alaska  Performance                                                                    
Scholarship,  and  the  Alaska   Education  Grant  would  be                                                                    
unfunded. There  were other funds with  smaller impacts that                                                                    
would have  partial underfunding  including the  Tobacco Use                                                                    
and  Education Program  Fund,  Alcohol  and Other  Substance                                                                    
Abuse Fund, Spill Prevention and  Response Fund, and some of                                                                    
the  appropriations  from  the Alaska  Capital  Income  Fund                                                                    
would be unable to occur.                                                                                                       
                                                                                                                                
Mr. Painter explained that fund  source change actions taken                                                                    
by   the  conference   committee   resulted  in   additional                                                                    
consequences  if   the  [reverse  sweep]  vote   failed.  He                                                                    
detailed that  school debt reimbursement  was funded  with a                                                                    
mix of fund sources from  Amendment 2. He elaborated that 37                                                                    
percent  was  funded  with the  School  Fund,  a  designated                                                                    
general  fund (DGF)  that  was not  impacted  by the  sweep.                                                                    
Additionally,  $51.8  million came  from  the  CBR and  $0.9                                                                    
million came  from the  SBR. He  corrected that  the numbers                                                                    
were actually slightly higher.                                                                                                  
                                                                                                                                
Mr.  Painter relayed  that oil  and gas  tax credits  in the                                                                    
amount of $114 million would not  flow out if the CBR direct                                                                    
language in  the amendment was  not agreed to.  He explained                                                                    
that  the  $1,100 PFD  was  comprised  of funding  from  the                                                                    
General Fund, CBR,  and SBR. He expounded that  a failure to                                                                    
pass the  CBR direct  amount and the  SBR direct  amount was                                                                    
not achievable due to the  failure of the reverse sweep, the                                                                    
PFD would be  approximately $525 per person  (using the $371                                                                    
million UGF appropriation).                                                                                                     
                                                                                                                                
Mr.  Painter reported  there were  $86.5 million  in capital                                                                    
budget items funded with the  SBR. He explained that because                                                                    
the SBR  was sweepable, the  funds would  not go out  if the                                                                    
reverse  sweep  failed.  The  list  included,  but  was  not                                                                    
limited  to,  $10 million  for  the  Alaska Travel  Industry                                                                    
Association, $9 million for the  Houston Middle School, $8.5                                                                    
million for West  Susitna Access, and other  projects in the                                                                    
Department  of  Natural   Resources,  Department  of  Public                                                                    
Safety, Pioneer Homes, and so forth.                                                                                            
                                                                                                                                
Mr. Painter  clarified that  with or  without the  CBR vote,                                                                    
the  budget  would  be balanced  because  the  direct  items                                                                    
equaled  the  deficit amount.  He  explained  that the  post                                                                    
transfer  surplus,  with  or   without  the  CBR  vote,  was                                                                    
estimated to  be $700,000. With  the CBR vote,  an estimated                                                                    
$453.9 million would remain in the CBR at the end of FY 22.                                                                     
                                                                                                                                
5:49:19 PM                                                                                                                    
                                                                                                                                
Representative LeBon  asked if  there was  a number  for the                                                                    
Alaska Performance Scholarship and Alaska Education Grant.                                                                      
                                                                                                                                
Mr.  Painter  believed  the combined  number  was  currently                                                                    
about $19 million.                                                                                                              
                                                                                                                                
Vice-Chair Stedman  asked how students would  be notified if                                                                    
they would not receive their scholarships.                                                                                      
                                                                                                                                
Mr. Painter replied  that the last time  the legislature had                                                                    
not agreed  to the  reverse sweep,  letters to  students and                                                                    
PCE  recipients had  gone  out  in the  first  week of  July                                                                    
notifying  them that  until the  reverse sweep  was adopted,                                                                    
the funds would not be distributed.                                                                                             
                                                                                                                                
5:50:26 PM                                                                                                                    
                                                                                                                                
Chair Foster stated there were  backup documents for capital                                                                    
projects funded by the American  Rescue Plan Act in members'                                                                    
packets. He relayed  that after the closure  of the meeting,                                                                    
there was a letter for  members to sign, clarifying that the                                                                    
excluded salary  adjustments were not rejected  and would be                                                                    
addressed in future  budgets. He noted the  item reflected a                                                                    
late submission  to the  conference committee.  He clarified                                                                    
that the committee  did not want anyone to perceive  it as a                                                                    
sign of a rejection of the salary adjustments.                                                                                  
                                                                                                                                
Vice-Chair Stedman  MOVED to  REPORT CCSHB  69 and  CCSHB 71                                                                    
out of  committee with  individual recommendations  and that                                                                    
authorization be  given to the Legislative  Finance Division                                                                    
and  Legislative  Legal  Services   to  make  any  necessary                                                                    
technical and/or conforming changes.                                                                                            
                                                                                                                                
There  being  NO  OBJECTION,  CCSHB 69  and  CCSHB  71  were                                                                    
REPORTED out of committee.                                                                                                      
                                                                                                                                
Chair Foster thanked the members  and the finance committees                                                                    
and staff.                                                                                                                      
                                                                                                                                
Vice-Chair  Stedman   MOVED  to  ADJOURN.  There   being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:52:25 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:52 p.m.                                                                                          

Document Name Date/Time Subjects