HOUSE BILL NO. 69 "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; making reappropriations; making supplemental appropriations; 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." HOUSE BILL NO. 71 "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." 1:57:43 PM ^SUBCOMMITTEE CLOSE-OUT REPORTS 1:57:56 PM JAMIE JONES, STAFF, REPRESENTATIVE KELLY MERRICK, would be presenting three agency FY 22 House Finance budget subcommittee narrative reports. She would begin with reviewing the subcommittee close-out report for the Department of Military and Veterans Affairs (DMVA) (copy on file). She read directly from the report: DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS: RECOMMENDATIONS: The House Finance Budget Subcommittee for the Department of Military and Veterans' Affairs submits the following recommended operating budget for FY 22 to the House Finance Committee: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF) $22,066.3 Designated General Funds (DGF) $178.4 Other Funds $12,061.2 Federal Funds $31,377.3 Total $65,683.2 Positions: Permanent Full-time 281 Permanent Part-time 0 Temporary 0 Total 281 BUDGET ACTION: The House Finance Budget Subcommittee for the Department of Military and Veterans' Affairs held four meetings, reviewing, and accepting the FY 22 Governor's budget request, no member amendments were offered. Ms. Jones moved to the subcommittee close-out report for the Department of Natural Resources (DNR) (copy on file). She read directly from the report: DEPARTMENT OF NATURAL RESOURCES: RECOMMENDATIONS: The House Finance Budget Subcommittee for the Department of Natural Resources submits the following recommended operating budget for FY 22 to the House Finance Committee: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF) $63,376.6 Designated General Funds (DGF) $39,198.2 Other Funds $36,089.5 Federal Funds $17,483.4 Total $156,147.7 The only difference between the FY 22 Governor's Request and the FY 22 House Subcommittee recommended budget is $200.0 in General Fund Program Receipts, adding six temporary positions. Positions: Permanent Full-time 623 Permanent Part-time 247 Temporary 58 Total 928 BUDGET ACTION: The House Finance Budget Subcommittee for the Department of Natural Resources held six meetings with the Department analyzing the Governor's Budget. The Subcommittee accepted 12 of the 12 Budget Action Items proposed. The following member amendments were also adopted: No. 2 Parks Management and Access DEPARTMENT: Department of Natural Resources APPROPRIATION: Parks and Outdoor Recreation ALLOCATION: Parks Management and Access ADD: $200.0 GF/Prgm (fund code 1005) ADD POSITIONS: 6 Temporary Positions ADD Intent Language: It is the intent of the legislature that the department only fill the additional Alaska Conservation Corps positions authorized by the legislature if fee collections enable this expenditure to occur without using carryforward revenue. No. 4 Geological and Geophysical Surveys DEPARTMENT: Department of Natural Resources APPROPRIATION: Fire Suppression, Land and Water Resources ALLOCATION: Geological and Geophysical Surveys ADD Intent Language: It is the intent of the legislature that the Department of Natural Resources Division of Geological and Geophysical Surveys submit to the Finance Co-Chairs and Legislative Finance Division by December 1, 2021, a proposal to conduct large geophysical, geochemical, and geological data collections over mineral-rich portions of the state, and to develop fee schedules to charge for the raw data, once collected, while publishing low-cost hardcopy maps, and providing free access to visual representations of the data through the division's website. Co-Chair Foster asked about item 2 regarding parks management and access and 6 temporary positions. He suspected that the positions would exist as long as they were paid for through fees without using carry-forward revenue. He asked if he was correct. Ms. Jones responded in the affirmative. Representative Rasmussen commented on budget action item 10, a request for $250,000 for additional law enforcement in the parks. She opined that it was an appropriate request and hoped the full finance committee would have a discussion about program receipts. Alaskans paid relatively low fees for parking lots and park access. She thought it was a way to collect additional funds without having to use additional UGF. 2:04:04 PM Ms. Jones relayed the subcommittee close-out report for the Department of Public Safety (DPS) (copy on file). She read the report: DEPARTMENT OF PUBLIC SAFETY: RECOMMENDATIONS: The House Finance Budget Subcommittee for the Department of Public Safety submits the following recommended operating budget for FY2022 to the House Finance Committee: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF) $180,264.6 Designated General Funds (DGF) $8,663.6 Other Funds $12,223.2 Federal Funds $28,033.9 Total $229,185.3 There is a decrease of $238.6 in Unrestricted General Funds from the FY22 Adjusted Base to the House Subcommittee budget recommendation, which is a -0.1 percent change. Positions: Permanent Full-time 873 Permanent Part-time 18 Temporary 20 Total 911 BUDGET ACTION: The House Finance Budget Subcommittee for the Department of Public Safety held six meetings with the Department to analyze the Governor's Budget. The Subcommittee accepted 20 of the 23 proposed Budget Action Items. The following three items were not accepted: ? Budget Action Item No. 4: Alaska State Troopers, Alaska Bureau of Judicial Services, fully fund Office Assistant II position added at 75 percent funding in FY21. ? Budget Action Item No. 6: Alaska State Troopers, Alaska State Trooper Detachments, continue one-time capital outlay funding for positions added in FY21. ? Budget Action Item No. 8: Alaska State Troopers, Alaska State Trooper Detachments, fully fund 28 new positions added at 75 percent funding in FY21. The subcommittee also adopted the four intent language amendments listed below: Amendment No. 1 DEPARTMENT: Public Safety APPROPRIATION: Fire and Life Safety ALLOCATION: Fire and Life Safety ADD INTENT LANGUAGE: It is the intent of the legislature that the Department of Public Safety's Plan Review Bureau allocate appropriate resources to ensure that the review time of building plans be kept under 30 days. It is the intent of the legislature that the Department of Public Safety add to its measures of core services the average review time of building plans on a monthly basis. Amendment No. 2 DEPARTMENT: Public Safety ADD INTENT LANGUAGE: It is the intent of the legislature that the Department of Public Safety prioritize the deployment of law enforcement resources to non-urbanized areas that lack organized government. Amendment No. 3 DEPARTMENT: Public Safety APPROPRIATION: Alaska State Troopers ADD INTENT LANGUAGE: It is the intent of the legislature that no funds shall be moved outside of the personal services line of any allocation within the Alaska State Troopers appropriation. Amendment No. 4 DEPARTMENT: Public Safety APPROPRIATION: Alaska State Troopers ADD INTENT LANGUAGE: It is the intent of the legislature that the Department of Public Safety increase efforts to fill vacant positions within the Alaska State Troopers appropriation and reduce overtime in order to better manage within the authorized budget. The Department should provide two reports to the Co-Chairs of Finance and the Legislative Finance Division, the first no later than December 1, 2021, and the second no later than July 1, 2022, that details monthly hiring and attrition, as well as premium and overtime costs by category, and describes any contributing factors from the start of the fiscal year to the month preceding the due date of the report. Ms. Jones concluded her presentation of the subcommittee reports for DMVA, DNR, and DPS. 2:07:08 PM AT EASE 2:09:13 PM RECONVENED Representative Josephson turned to page 2 of the narrative pointing to item 3 that was not adopted. The item was for full funding of 28 new positions added at 75 percent. He asked for further explanation. Ms. Jones replied that in FY 21 the department received 75 percent funding for 36 new positions, the majority of which had not been filled to- date. The subcommittee did not approve the remaining 25 percent funding for 2021 for those positions. She continued that the positions she knew were filled were reflected in items 11 and 12. The subcommittee funded the positions that were filled. Co-Chair Foster asked if cuts were made to the Village Public Safety Officer (VPSO) Program. Ms. Jones confirmed that there were no cuts made to the VPSO Program. Representative Carpenter thought he heard that there were no cuts but there was a decrease in UGF. He asked if the money was made up somewhere else. Co-Chair Foster clarified that his question was whether there were cuts made to the VPSO Program. Co-Chair Foster indicated his staff would present the reports for the Office of the Governor and the Legislature. PATRICK FITZGERALD, STAFF, REPRESENTATIVE NEAL FOSTER, presented the subcommittee close-out report for the Office of the Governor (copy on file). He read from the report: OFFICE OF THE GOVERNOR: RECOMMENDATIONS: The House Finance Budget Subcommittee for the Office of the Governor submits the following recommended operating budget for FY 22 to the House Finance Committee: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF) $23,215.9 Designated General Funds (DGF) $ 000.0 Other Funds $3,087.9 Federal Funds $229.0 Total $26,532.8 The Unrestricted General Fund difference from FY 22 Adjusted Base to the House Subcommittee budget recommendation is an increase of $950.3 thousand of Unrestricted General Funds, which is 4.3 percent above FY 22 Adjusted Base. Positions: Permanent Full-time 151 Permanent Part-time 0 Temporary 23 Total 174 ? Approves 2 PCNs transferred from DCCED to the Office of the Governor and increased receipt authority for Statewide Economic Development. ? Created the Administrative Services Director's Allocation within OMB. ? Replace Inter-Agency receipts (I/A Rcpts) for Budget Analysts (200.0 UGF) and reduced receipt authority within OMB. BUDGET ACTION: The House Finance Budget Subcommittee for the Office of the Governor reviewed the FY 22 budget request, including amendments, and recommends the following actions: Accept the Office of the Governor's budget proposal, which includes these highlights: ? Approves 2 PCNs transferred from DCCED to the Office of the Governor and increased receipt authority for Statewide Economic Development. ? Created the Administrative Services Director's Allocation within OMB. ? Replace Inter-Agency receipts (I/A Rcpts) for Budget Analysts (200.0 UGF) and reduced receipt authority within OMB. OTHER SUBCOMMITTEE ACTION: The House Finance Budget Subcommittee for the Office of the Governor also took the following actions: ? Deleted hollow receipt authority and authorized UGF for expected costs within the Division of Elections (706.7 UGF). ? Provided intent language stating the following: o It is the intent of the legislature that the director of OMB conducts a review of FY 21 Single Audit Costs, as identified in the Division of Legislative Audit memo billings, to determine the extent the single audit costs were billed to the federal government as well as the extent the costs were reimbursed. A report showing the results of the review shall be provided to Co- Chairs of Finance and the Legislative Finance Division by December 1st, 2021. Co-Chair Foster asked Mr. Fitzgerald to summarize the bulk of the changes. There were two items primarily affected. Mr. Fitzgerald responded that the bulk of the increase came from the Division of Elections for voting cards and maps and costs related to the new rank-choice voting system currently being implemented. Representative Wool asked about the two positions transferred from Department of Commerce, Community and Economic Development (DCCED) to the Department of Education and Early Development (DEED). Mr. Fitzgerald deferred to Kelly Cunningham. Representative Edgmon answered that the two positions with the Alaska Development team housed in DCCED were transferred from DCCED to the Office of the Governor. The item completed the transaction. Representative Wool thanked Representative Edgmon. He noted the question had arisen recently as to whether the transfer had been completed. 2:16:15 PM Mr. Fitzgerald reviewed the subcommittee report for the Legislature (copy on file). He read from the report: LEGISLATURE: RECOMMENDATIONS: The House Finance Budget Subcommittee for the Legislature submits the following recommended operating budget for FY 22 to the House Finance Committee: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF) $64,921.1 Designated General Funds (DGF) $341.5 Other Funds $1,462.4 Federal Funds $00.0 Total $66,725.0 The Unrestricted General Fund difference from FY 22 Adjusted Base and to the House Subcommittee budget recommendation is an increase of $393.7 of Unrestricted General Funds, which is 0.6 percent above FY 22 Adjusted Base. Positions: Permanent Full-time 258 Permanent Part-time 288 Temporary 28 Total 574 ? Approved the Legislature Budget and Audit Committee's requested budget. ? Approved the Legislative Council's requested budget. ? Approved the Replacement of Restorative Justice Fund with UGF (232.5 Rest Just/UGF). BUDGET ACTION: The House Finance Budget Subcommittee for the Legislature reviewed the FY 22 budget request, including amendments, and recommends the following actions: Accept the Legislature budget proposal, which includes these highlights: ? Approved the Legislature Budget and Audit Committee's requested budget. ? Approved the Legislative Council's requested budget. ? Approved the Replacement of Restorative Justice Fund with UGF (232.5 Rest Just/UGF). OTHER SUBCOMMITTEE ACTION: The House Finance Budget Subcommittee for the Legislature also took the following actions: ? Denied Performance Reviews for Legislative Audit (1,395.2 UGF). SUBCOMMITTEE RECOMMENDATION: ? The House Finance Budget Subcommittee recommends that House Finance Committee consider amending the Redistricting Boards multi-year appropriation for FY 21 through FY 22 of $2.5 million, by increasing the appropriation by $1 million (totaling $3.5 million) and extend until the end of FY 2023. The Subcommittee further recommends that the action be taken in the Language Section of House Bill 69. ? Fund Source change in Legislative Audit for statewide single audit to replace an RSA with the Division of Finance in the Department of Administration ($1,000.0 Fund Source Change I/A Receipts to UGF). This item is related to a decrement in the Department of Administration's budget and would ensure that Legislative Audit is fully funded without the RSA. Mr. Fitzgerald concluded his presentation of the subcommittee report. Representative Wool asked where he could find the terms of the Beacon contract. He assumed the budget increased due to COVID-19. Mr. Fitzgerald responded that the contract fell under the Legislative Council's budget. Representative Wool asked if the increase in the Legislative Council's budget was due to Covid. Mr. Fitzgerald responded affirmatively. He expounded that the Legislature budget subcommittee approved Legislative Council's request in full. Representative Edgmon added that it was FY 21 and was related to Coronavirus Aid, Relief, and Economic Security (CARES) Act money and would not be seen in FY 22. Co-Chair Foster noted an affirmation from the back of the room [Ms. Kelly Cunningham, Analyst, Legislative Finance Division] Vice-Chair Ortiz asked where the bulk of the $393,000 increase in UGF could be found. Mr. Fitzgerald responded that the increase was related to the approval of the Legislative Budget and Audit's and the Legislative Council's requested budgets. 2:20:47 PM Representative LeBon asked for further detail on the additional $1 million appropriation related to the Alaska Redistricting Board budget. Co-Chair Foster provided further detail. He indicated in the budget subcommittee the Alaska Redistricting Board had submitted a request for an additional $1 million because of the National Census being slowed down. The costs covered additional rents and other operational costs. He continued to provide additional detail. He indicated that in the previous census, the Alaska Redistricting Board spent $7.5 million which included money for a lawsuit. The board was concerned with having to make an additional request. The board was also asking that the request extend into FY 23. The request had not been accepted by the subcommittee and would be taken up by the full committee. Representative LeBon thought Co-Chair Foster's response made sense. He asked if the Alaska Redistricting Board would need more time, as the date was extended a year on the use of the money. Mr. Fitzgerald responded that the because of the Covid-19 pandemic, census data had been delayed. The Alaska Redistricting Board wanted to make sure to have a viable map. The extension would weigh heavily on the deadlines the board needed to meet in order to complete its duties before the 2022 election. Representative Edgmon indicated that the Alaska Redistricting Board had 30 days after receipt of census data to put together a draft plan. The board would have 90 days to put together a plan that would have an even higher likelihood of being challenged. He reported that a challenge was expected in state and federally because of the U.S. Census Bureau's collection of census data. The additional $1 million was much smaller than the $7 million 10 years prior and would be used to provide counsel to fend off any potential litigation. It was a significantly different litigation atmosphere than ten years prior. Co-Chair Foster indicated the committee had concluded all of its subcommittee reports. HB 69 was HEARD and HELD in committee for further consideration. HB 71 was HEARD and HELD in committee for further consideration.