SENATE BILL NO. 142 "An Act making appropriations, including capital appropriations, supplemental appropriations, reappropriations, and other appropriations; making appropriations to capitalize funds; and providing for an effective date." 3:26:15 PM Co-Chair MacKinnon reported the bill had been heard on April 26, 2018 when the public hearing had been opened and closed. Vice-Chair Bishop MOVED to ADOPT the committee substitute for SB 142, Work Draft 30-GS2565\R (Martin, 5/7/18). Co-Chair MacKinnon OBJECTED for discussion. 3:26:30 PM AT EASE 3:27:51 PM RECONVENED LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, highlighted the changes in the CS. Page 3, line 18 included $2 million for the Alaska Travel Industry Association for tourism marketing and development. Page 4, line 31 included $2.5 million for the Wrangell junkyard contaminated site cleanup. Page 5, line 19 included $300,000 for vessels and aircraft maintenance, repair, and upgrades for the Department of Fish and Game (DFG). She detailed originally the item had been in the bill's language section and due to incorrect information from DFG the lapsing funds were no longer available; therefore, the item had been moved to the numbers section of the bill. Page 7, line 33 through page 8, line 4 included $750,000 for the Department of Natural Resources for legal and financial due diligence associated with the AKLNG project. Page 8, lines 29 through 31 included $750,000 for the Department of Revenue for legal and financial due diligence associated with the AKLNG project. Page 9, line 23 pertained to the Alaska Housing Finance Corporation (AHFC) Weatherization Program. She elaborated the previous bill version had erroneously left the increment out of the bill's language section; the numbers had been correct, but the increment had not been listed in the bill. Ms. Cramer continued to outline the changes in the CS. She moved to page 10, line 18 that included other federal program match for the Department of Transportation and Public Facilities (DOT). The item had been added to the numbers section due to a reduction in lapsing funds from AHFC in the Home Energy Rebate Program. Originally the item had been located in the language section - a reduction had caused the change in the numbers section of the current CS. Page 10, line 20 included an adjustment to the federal aid highway state match due to some reappropriations that were no longer available. Page 17, lines 10 through 13 included $75,000 for community and neighborhood watch programs to be distributed as grants through the Department of Commerce, Community and Economic Development (DCCED). Page 17, line 14 included $60,000 for the City of Nenana for the financial review and analysis of its city financials. Currently the city was unable to receive some community assistance due to some issues with its financials; the increment would enable DCCED to work with Nenana to ensure financials were in order prior to distributing community assistance funds. Ms. Cramer moved to the next change on page 17, lines 20 through 22 included $250,000 for a study for the Health Care Transformation Project - the next step in the health care authority feasibility study, which would bring along patients, providers, and policy makers. Page 17, line 25 included $500,000 for the Hillcrest subdivision clean water improvement district to help with contaminated water systems. Page 17, line 28 included $2 million to the Anchorage Police Department for crime prevention, response, and equipment. Page 18 included $2 million to the Department of Public Safety for crime prevention, response, and equipment. Page 35 included backstop language for DOT reappropriations for federal aid highway match. The language had been included in the capital budget the last year as well. The language designated that general funds would be used to match federal funds if any project reappropriation balances fell short. 3:33:12 PM Co-Chair MacKinnon asked for the page number. Ms. Cramer replied the change appeared on page 35, lines 10 through 14. Ms. Cramer continued to address changes in the CS. She turned to page 36, lines 3 through 19 that included the reappropriation of funds that had been reappropriated in the previous year to the greater Lynn Canal area. The balance of $21.2 million was reappropriated back to the Juneau Access project. The final change was located on page 37, line 3 through 9, where the remaining balance for the Friends of the Jesse Lee Home to the City of Seward for site remediation. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO further OBJECTION, Work Draft 30-GS2565\R was ADOPTED. 3:34:42 PM Co-Chair MacKinnon shared that it was difficult to be the committee chair when there was no money for communities around the state. She had tried to help the limited requests where possible in the CS. She remarked that the bill contained no personal discretionary spending. She reported the budget prioritized public safety and health in some communities. She noted that the Wrangell [junkyard contamination cleanup] project was $5 million, not $2.5 million. She explained that if the House added the other $2.5 million, the project would move forward. She continued that the budget was funded with Alaska's savings account to provide for the people of Alaska in broad ways. The budget went a long way in using the limited funds to create a budget of over $1 billion in combination with federal and other funds. She would provide the difference to committee members and believed it was substantially lower than the administration's request. She reported there was no joy in passing a budget that was smaller than the administration's request, but it reflected the practical fact that the legislature was having to draw every dollar from savings accounts; there were some things absent from the budget that were important to many people. 3:36:41 PM Vice-Chair Bishop thanked Co-Chair MacKinnon and her staff for bringing the CS forward. He believed the committee had been responsive to public testimony; it had done what it could with the means available. Senator Micciche agreed with Vice-Chair Bishop's comments. He thanked Co-Chair MacKinnon and her staff for their hard work. Co-Chair MacKinnon thanked her chief of staff, Laura Cramer. She felt that Ms. Cramer had succinctly and accurately represented the changes requested in the bill. She acknowledged there were many things requested by the committee that were not included in the bill. She reiterated that the bill did not contain personal recommendations or discretionary money. The bill reflected a fairly straight forward and back to the basics budget. She thanked Legislative Legal Services and the Legislative Finance Division for their work. 3:39:05 PM Vice-Chair Bishop remarked that it was a $1 billion budget, but when accounting for the multiplier effect that went out through the economy and construction projects, it got to be a good-sized number. Co-Chair MacKinnon reported that the budget invested $148,642,900 in projects throughout Alaska and leveraged for a total budget of $1,461,960,200. The budget was $265 million less than the governor's request. Vice-Chair Bishop MOVED to REPORT CSSB 142(FIN) out of committee with individual recommendations. There being NO OBJECTION, it was so ordered. CSSB 142(FIN) was REPORTED out of committee with a "do pass" recommendation. 3:40:28 PM AT EASE 3:42:24 PM RECONVENED Co-Chair MacKinnon reviewed the schedule for the following day.