CS FOR HOUSE BILL NO. 234(FIN) "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." 10:17:52 AM PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, noted a spreadsheet titled, "Supplemental (HB234) as passed by the House" (copy on file). Co-Chair Stedman wanted to address the larger items on the spreadsheet. Mr. Ecklund noted that the UGF total was a little over $298 million for the supplemental bill for FY 20. He noted the $12.8 million in DGF, $7.5 million in other funds, and $207 in federal funds. The total was just over $526 million. 10:20:40 AM Co-Chair von Imhof stressed that the committee had worked closely with the administration in the year prior to seek reductions in Department of Health and Social Services (DHSS), and remarked that there was a significant request in that department. She explained that it was largely due to the difficulty in maintaining the reductions. Co-Chair Stedman noted that there was a supplemental request that was originally vetoed in the operating budget from the year prior. Co-Chair von Imhof agreed. Co-Chair Stedman recalled that there were assurances the year prior that there would not be a supplemental budget, but this was the largest supplemental budget in the history of the state. Mr. Ecklund remarked that the $120 million for Medicaid services was currently evaluated to determine whether that was enough to cover the costs in the current year. Co-Chair Stedman explained that there could be an adjustment to that number. Senator Hoffman wondered how the $250 million in DEED would be addressed. Mr. Ecklund explained that there was $150,000 of UGF and $150,000 for receipt authority, which would help the facility to stay open in the spring. 10:25:44 AM Senator Hoffman heard that it might be impossible for the school to receive funds. Co-Chair Stedman explained that the project was in a list of bond packages in the state. Mr. Ecklund discussed the Department of Public Safety (DPS) requests. Co-Chair Stedman wanted to know the exact impact of the strike. Mr. Ecklund agreed to provide that information. 10:31:06 AM Mr. Ecklund looked at page 2 of the spreadsheet. Co-Chair Stedman stated that there was work on discussions with the agency. 10:32:54 AM Senator Olson did not see any requests for Village Public Safety Officers (VPSOs). Mr. Ecklund agreed. 10:33:25 AM Senator Wielechowski felt that the biweekly payroll would end up costing the state millions of dollars. Mr. Ecklund noted the largest impacts to the state. Co-Chair Stedman asked for description of the $24 million request. 10:36:47 AM CAROLINE SCHULTZ, STAFF, SENATOR NATASHA VON IMHOF, explained that there was a late amendment for Covid-19 of $4 million to the DHSS. Co-Chair Stedman stated that there would be a joint meeting with the House with Dr. Zink. He stated that there would be ample resources to respond to the virus. Senator Olson wondered whether the $4 million included a quarantine facility. Ms. Schultz replied that the money would be used to fund the new positions, and not for infrastructure. Senator Olson surmised that the money would not be used for hospitals to prepare for a quarantine facility. Ms. Schultz agreed to provide further information. Senator Wilson looked at the first page of the spreadsheet. He wanted more information about the Division of Motor Vehicles (DMV) office location move from the current location, and whether the building was owned by the state. Ms. Schultz replied that the lease costs to the facility had increased, so they were moving to a building that was owned by the university, resulting in a cost savings to the state. 10:40:14 AM Senator Bishop wondered what the "fleet" referred to. Ms. Shultz replied that DPS requested money for 32 new trooper cars. 10:40:43 AM Co-Chair Stedman explained that Senator Bishop was the chair of the DPS subcommittee. Mr. Ecklund clarified the money related to the strike. Ms. Schultz stated that there was some funding for Covid-19 quarantine. 10:41:46 AM Co-Chair Stedman OPENED public testimony. 10:42:17 AM NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE, JUNEAU, felt that the supplemental budget presented some issues important to local government. He supported the increases to the Alaska Marine Highway System (AMHS). He felt that many communities relied on those services. He spoke in support of the state's response to fire suppression. He spoke in support of Alaska Land Radio. He highlighted the lack of response to recapitalizing community assistance and not following up on fully reimbursing municipalities for school bond debt. He noted some unanticipated expenses related to the repeal of SB 91 for community and regional jails. He explained that those levels were at 2002 funding levels. He expressed support for providing reimbursement funding who have charter boats to fill the gap of cancelled ferry service. He noted that first responders would feel the impact of coronavirus, and they were gearing up for the virus emergency. 10:46:49 AM VIKKI JO KENNEDY, GRAMMA BRIGADE, JUNEAU, stated that her home is Kodiak. She thanked the committee for their work in the legislature. She expressed her appreciation for the explanation of acronyms. She spoke in support of more funding the AMHS. She was upset with what was going on in the state. She wanted to see the legislative per diem be reduced and a portion given back to the state. She remarked that more people died of diseases that were already in hospitals than the flu or other viruses. She spoke against the adjustment to biweekly payroll. She testified in support of funding for the Pioneer Home. She shared that she had heard many stories from seniors in the state. Co-Chair Stedman explained the definition of "BRENT." Co-Chair Stedman CLOSED public testimony. Co-Chair Stedman hoped to conclude the discussion on the bill within the upcoming days. Co-Chair von Imhof further explained the definition of "BRENT." CSHB 234(FIN) was HEARD and HELD in committee for further consideration.