SENATE BILL NO. 57 "An Act making appropriations, including capital appropriations and other appropriations; making reappropriations; making appropriations to capitalize funds; and providing for an effective date." 9:44:02 AM Senator Kiehl MOVED to ADOPT the committee substitute for SB 57, Work Draft 34-GS1460\T (Walsh, 4/9/25). Co-Chair Stedman OBJECTED for discussion. 9:44:26 AM AT EASE 9:46:36 AM RECONVENED Co-Chair Stedman asked staff to come forward to discuss the changes. 9:46:49 AM DAVID SCOTT, STAFF, SENATOR BERT STEDMAN, explained the changes in the CS. He pointed to the Attachment A, Attachment B, and Attachment C documents (copies on file). He read from a prepared statement: • Before I begin, I'd like to turn the committee's attention to the attachments provided. o These are all posted on BASIS and available to the public. • A little bit about the process? meetings with governor's office, OMB, the departments, the agencies, the university. o With expertise of Legislative Finance square4 data, information, and history o In collaboration with House counterparts. • Very generally Mr. Chairman, I plan to explain what was added to CS1 - the bare-bones match-only budget we introduced on March 31. Then I will explain the maneuvers we are using to fund this budget. • At a very basic high-level view: this budget adds Two tranches of spending. • This budget adds back 26 projects requested by the governor with a total of $89m. • This budget also adds a deferred maintenance package currently totaling $36m. o At your direction and recommendation Mr. Chairman, we engaged with our counterparts in the House and we came to an agreement that deferred maintenance is a serious concern and liability that needs to be addressed. square4 Major Maintenance - $19m square4 University - $5m square4 MEHS - $1.4m not eligible: compete against all other state assets. square4 Courts - $750k square4 Statewide - $10m square4 Collaboration. We should all expect that total to increase when the bill gets to the House. • Returning now back to the Projects added. o As I stated previously there are 27 projects added to the budget totaling $89m square4 $46m in UGF -19 projects square4 $34m in DGF 5 projects square4 $9m in OTHER - 3 projects o Point out that the approved projects are funded at full request. square4 Negotiate with the agencies -- squeeze as much UGF out as we could 9:50:51 AM Mr. Scott continued address his written remarks: o Notable projects are: square4 Dixon Diversion o AEA to get the FERC license for the project. o AEA and the Railbelt utilities are in partnership. square4 AHFC o Rental Assistance for victims displaced b/c of DV. o Senior Housing o Supplemental Housing square4 Several IT (information technology) projects out in the departments - allow government to operate efficiently. Hardware, software, networks. o DOA o LAW uses a reappropriation o Labor and Workforce Dev. o Dept. of Revenue square4 Judiciary Courthouse Security square4 Dept. of Public Safety o Maintenance of Aircraft and Boats o Equipment purchase o Remodel of Fairbanks Post Evidence Building square4 AEA - Port Electrification for Cruise Ship Terminals square4 Dalton Highway Maintenance square4 Renewable energy fund 6 projects o Pelican o Naknek o Skagway o Kwethluk o Quinhagak o Nenana square4 AMHS vessel maintenance and overhaul o $26m of DGF Marine Highway Fund (Farebox revenue) square4 Harbor Matching Grant o Eliason Harbor in Sitka o Aurora Harbor in Juneau o Statter Harbor in Auke Bay • Explain funding mechanisms we used for this budget. o Reappropriations square4 This budget reappropriates old UGF from two sources o Old and stalled projects at DOT $47.1m square4 Section 13 of the bill. Page 44. o Old match highway and aviation. $20.9m o $68m UGF displaced. o Increased the AIDEA dividend to the statutory cap. o AS 44.88.088 states that the AIDEA dividend must be between 25 percent and 50 percent of the net income. o The AIDEA board authorized a $20m dividend this year. That is 30 percent of their net income. o 50 percent of the net income: $12.5m o These actions displaced $80m of UGF • Mr. Chairman, I'll close by stating that this budget has: o $162m UGF $119m less than the Governor's submitted budget. square4 Denied $49m in Administration requests. square4 Of the approved projects we reduced by $10m. square4 Displaced $80m in UGF with the reapprops and AIDEA o Total capital spend is $2,903.0 • Standing by for questions. 9:58:28 AM Co-Chair Stedman noted that there were no additions for individual districts. The concentration had been on K-12 education major maintenance, the University of Alaska, and the courts. The budget removed quite a few of the governor's submitted projects and went back and reappropriated funds from old projects. He explained that the proposed budget changes were "a one-time maneuver," and the budget for the following year would be more challenging. He asked members to review the budget and bring any amendments to his office by four o'clock in the afternoon. 10:00:14 AM AT EASE 10:00:22 AM RECONVENED Co-Chair Stedman REMOVED the OBJECTION. There being NO OBJECTION, it was so ordered. The CS for SB 57 was ADOPTED. SB 57 was HEARD and HELD in committee for further consideration. 10:00:52 AM AT EASE 10:02:25 AM RECONVENED Co-Chair Stedman handed the gavel to Co-Chair Hoffman.