HOUSE BILL NO. 234 "An Act making supplemental appropriations, reappropriations, and other appropriations; amending appropriations; capitalizing funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." 1:42:56 PM Co-Chair Foster explained that the governor's supplementals had been rolled into a committee substitute (CS). Co-Chair Johnston MOVED to ADOPT the proposed committee substitute for HB 234, Work Draft 31-GH2200\M (Caouette, 2/21/20). 1:43:55 PM AT EASE 1:44:40 PM RECONVENED Co-Chair Johnston restated the motion. There being NO OBJECTION, Work Draft 31-GH2200\M was ADOPTED. BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, he highlighted documents in members' packets including the bill, a summary of changes, Legislative Finance Division (LFD) reports, and a spreadsheet listing a description of items. The CS reflected the governor's original supplemental bill with technical and conforming changes to match the Legislative Legal Services drafting manual, along with all of the governor's amendments offered on February 19. He noted that certain items had been removed. The bill totaled $525,222,400 in additional spending for FY 20. Total agency operations were $433,450,200, statewide items were $9,487,600, and capital budget items totaled $83,284,600. He referred to an LFD document titled "2020 Legislature - Operating Budget Agency Summary - House Structure - Numbers and Language," dated February 24, 2020 (copy on file). He explained there was a combined total of capital and operating items because HB 234 was the supplemental budget bill. The bill included $207,201,900 in federal funds, $12,826,100 in designated general funds (DGF), $7,505,000 in "other" funds, and $298,689,400 in unrestricted general funds (UGF). Mr. Anderson explained the changes in the CS with a proposed summary of changes (copy on file): Section 1, starting on page 2. This section is operating supplemental numbers section items. It includes all operating numbers section items proposed by the Governor in his version of HB 234. 1. The only difference in the Section 1 is on page 3, line 11, Medicaid Services. The Governor included $18 million of federal funds for adult preventative dental that had already been restored in HB 2001. This CS removes this unnecessary federal authority and left the UGF portion only. Section 4, starting on page 8. This section is capital supplemental numbers section items. It includes all capital numbers section items proposed by the Governor in his version of HB 234 and his February 19 amendments. 2. The new item in the Governor's amendments is on page 8, line 17, the Alaska Land Mobile Radio Site Refresh project for $24 million UGF. 3. Section 8, starting on page 12, line 15, matches the combined sections in the Governor's original version of HB 234 and the February 19 amendments. The amendments added two additional settlements. 4. Section 10, starting on page 13, line 5, includes an amendment added by the Governor on February 19 to carry forward the bond proceeds for the Tax Credit Bonds to FY21 in case the bond issuance is delayed. 5. Section 11, starting on page 13, line 14, includes a scope change requested by the Governor for Knik- Goose Bay Road. The Governor's prior subsection re- appropriated $3 million of lapsing capital projects to the general fund was removed. These items can be addressed in the capital budget. 6. The Constitutional Budget Reserve language in Section 17, starting page 15, line 11, restricts the CBR access granted in this section to this bill alone. The Governor's language allowed unlimited CBR access in FY20. Mr. Anderson reviewed the governor's items that had not been accepted or included in the CS: 7. The Governor's section 7 was removed. That section re-appropriated $1.1 million of lapsing capital projects in the Department of Commerce, Community and Economic Development to the general fund. These items can be addressed in the capital budget. 8. Three of the Governor's prior subsections for the Department of Revenue were deleted. One section re- appropriated a lapsing capital project totaling $331.9 to the general fund. The other sections re- appropriated a lapsing capital project for the Department of Revenue to the department for consultants and office space planning. All three items can be addressed in the capital budget. 9. The Governor's proposed fund transfer of $1.1 million from the Alaska Housing Capital Corporation was also removed. This can be addressed in the capital budget. 1:52:24 PM Co-Chair Foster stated his understanding that the CS was the governor's original supplemental with supplemental additions submitted in the governor's amendments. He asked for verification the CS did not include any major changes other than technical and conforming changes. Mr. Anderson agreed. Co-Chair Foster relayed amendments were due by noon the following day. He reminded members of the amendment deadlines. HB 234 was HEARD and HELD in committee for further consideration.