SENATE CS FOR CS FOR HOUSE BILL NO. 281(FIN) am S "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; making capital appropriations, supplemental appropriations, and reappropriations; and providing for an effective date." SENATE CS FOR CS FOR HOUSE BILL NO. 282(FIN) am S "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." and CS FOR HOUSE BILL NO. 281(FIN) am(brf sup maj fld)(efd fld) "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; and making capital appropriations, supplemental appropriations, and reappropriations." CS FOR HOUSE BILL NO. 282(FIN) "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." ^ADMINISTRATION 4:12:04 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Administration: Item 1 House Item 2 House Item 3 House Item 4 House Representative LeBon OBJECTED to Item 2. He questioned the legality, and wondered whether it was conditional on any action in the House or the Senate. Mr. Painter stated that the bonuses for partially exempt employees required legislation, and remarked that there was legislation in the House that would provide those bonuses. He explained that, for unionized employees, a letter of agreement would be ratified under language in the Senate version of the budget. Representative LeBon surmised that the legality of the bonuses required ratification by the legislature. Mr. Painter replied that taking justice actions would not apply any conditions, but explained that Legislative Legal had surmised that absent of legislation, the funding could not be paid out. Representative LeBon WITHDREW the OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Administration. ^COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT 4:14:17 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Commerce, Community and Economic Development: Item 1 House minus $125,000 Item 2 Senate Item 3 Senate Item 4 Senate Item 5 Senate, all items Item 6 Senate Item 7 Senate Item 8 Senate Item 9 Senate Item 10 Senate Item 11 Senate 4:14:52 PM Representative LeBon OBJECTED to Item 1, and wondered about the background about the nature of the grants. Mr. Painter replied that there was a tie to a federal program that provided small business innovation grants. He remarked that the intent of the funding was to provide technical support to those businesses who had received those grants. Representative LeBon felt that $125,000 was a modest amount, and did not want to stretch the dialog. He wondered how a person benefited from the grant. Mr. Painter explained that the federal program was focused on growing small businesses with technology and similar portfolios. He stated that the money would not provide a match, but rather provide technical support for those businesses that want to apply for the federal grant program. Representative LeBon WITHDREW his OBJECTION. Representative LeBon OBJECTED to Item 10, and asked about the term, "uncertain federal receipts." Mr. Painter responded that the Alaska Seafood Marketing Institute (ASMI) was reliant on a range of federal grants and industry-generated fees. Due to circumstances beyond ASMI's control, there was an uncertain expectation of funds. Representative LeBon wondered how much federal money was included in the Item. Mr. Painter recalled that the legislature appropriated $7 million in the year prior to ASMI as a multi-year item, and he did not know how much of that money was still available. Representative LeBon WITHDREW his objection. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Commerce, Community and Economic Development. ^CORRECTIONS Vice-Chair Merrick MOVED to ADOPT the following in the Department of Corrections: Item 1 Senate Item 2 House Item 3 House minus $284,000 Item 4 House minus $204,000 and minus one position Item 5 House minus $52,800 Item 6 House minus $54,200 Item 7 House minus $66,400 Item 8 House Item 9 House minus $1 million Item 10 House Item 11 OPEN Representative LeBon OBJECTED to Item 9. He noted that the support for community jails was higher than the $4 million in the original budget. He stressed that he objected to the reduction to $3 million. 4:21:07 PM Representative LeBon MAINTAINED the OBJECTION. A roll call vote was taken on the motion to adopt item 9. IN FAVOR: Representative Ortiz, Senator Stedman, Representative Merrick, Senator Bishop, Senator Wielechowski OPPOSED: Representative LeBon The MOTION PASSED (5/1). There being NO further OBJECTION, item 9 was ADOPTED. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items 1-10 in the Department of Corrections budget, and leaves item 11 OPEN. ^EDUCATION AND EARLY DEVELOPMENT 4:22:17 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Education and Early Development: Item 1 OPEN Item 2 OPEN Item 3 Senate Item 4 Senate Item 5 Senate Item 6 OPEN Item 7 OPEN Item 8 OPEN Item 9 OPEN Item 10 House and Senate Item 11 OPEN Item 12 OPEN Representative LeBon OBJECTED to Item 4. He asked for background information about the duties and functions related to the item. Mr. Painter explained that the costs was to provide equipment for the positions outlined in Item 3. Representative LeBon WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items 3, 4, 5, and 10 in the Department of Education and Early Development budget, leaving all other items OPEN. ^ENVIRONMENTAL CONSERVATION Vice-Chair Merrick MOVED to ADOPT the following in the Department of Environmental Conservation: Item 1 OPEN Item 2 Senate, all items Item 3 OPEN Item 4 House, all items Item 5 Senate Item 6 Senate Item 7 OPEN Item 8 Senate Item 9 Senate, all items Item 10 Senate, all items Item 11 Senate There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Environmental Conservation, leaving items 1, 3, and 7 OPEN. ^FAMILY AND COMMUNITY SERVICES 4:25:32 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Family and Community Services: Item 1 House Item 2 House, both items Item 3 Senate Representative LeBon OBJECTED to Item 1. He queried the rational for choosing the House number versus the Senate number. Mr. Painter stated that the item provided cross- appropriation transfer authority to allow the department to transfer money between appropriations. Representative LeBon preferred $5 million over $10 million. Representative LeBon MAINTAINED the OBJECTION. A roll call vote was taken on the motion to adopt item 1. IN FAVOR: Representative Ortiz, Senator Stedman, Representative Merrick, Senator Bishop, Senator Wielechowski OPPOSED: Representative LeBon The MOTION PASSED (5/1). There being NO further OBJECTION, item 1 was ADOPTED. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Family and Community Services budget. ^FISH AND GAME 4:28:44 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Fish and Game: Item 1 Senate, all items Item 2 Senate, all items Item 3 Senate, all items Item 4 Senate, all items Item 5 Senate, all items Item 6 Senate Item 7 Senate Item 8 Senate Item 9 Senate Item 10 Senate Item 11 Senate Item 12 Senate Item 13 OPEN Senator Wielechowski OBJECTED to Items 5, 8, and 9. Mr. Painter deferred to Mr. Ecklund. 4:29:27 PM AT EASE 4:32:05 PM RECONVENED 4:32:30 PM PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, explained that Item 5 was a fund source switch for the Anchorage and Fairbanks hatcheries. He stated that roughly $4.6 million of UGF was added, and roughly $4.6 million of federal receipts related to Dingle-Johnson money was decremented in the Item. Mr. Ecklund explained that Items 8 and 9 were $5 million in the Fish and Game Fund. He remarked that the money was a one-time item for wildlife conservation, which would be revisited the following year. Senator Wielechowski recalled conversations with the Department of Fish and Game who expressed concern that the change could endanger some federal funds. Mr. Ecklund recalled that there were multiple uses of Dingle-Johnson funds, so the action in the budget would free up some of the Dingle-Johnson in the operating budget, replace it with UGF, and take the Dingle-Johnson money for Angler Access. He stated that, if there was an issue, the subject could be revisited the following year. Senator Wielechowski WITHDREW his OBJECTION. 4:36:09 PM Representative LeBon OBJECTED to Item 5. He asked for an explanation of Dingle-Johnson. Mr. Painter replied that the federal Dingle-Johnson funds could be used for a wide variety of angler access projects. Representative LeBon wondered whether they were ready to invest Dingle-Johnson funds into capital projects. Mr. Painter stated that in the Senate version of the capital budget, there was a project that would utilize the funds. Representative LeBon queried the dollar amount of the item. Mr. Ecklund replied that the total amount was $6 million, and $4.5 million of which was Dingle-Johnson money. Representative LeBon queried the project location. Mr. Ecklund replied that he did not know the project location. Representative LeBon removed his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Fish and Game, leaving item 13 OPEN. ^GOVERNOR 4:39:46 PM Vice-Chair Merrick MOVED to ADOPT the following in the Office of the Governor: Item 1 Senate Item 2 Senate Item 3 Senate Item 4 Senate Item 5 Senate Item 6 Senate Item 7 Senate Item 8 Senate Item 9 OPEN Item 10 Senate Item 11 Senate Representative LeBon OBJECTED to Item 2. He asked about the timeline of the funds. Mr. Painter replied that the timeline referred to items 1, 2, 4, and 5. He explained that in items 1 and 2, stated that those in the numbers section were reduced by half. He furthered that the language section was the other half effective January 1, 2023. He explained that, over the fiscal year, the entire budget would be available, but would split it between two halves of the fiscal year. Representative LeBon REMOVED his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Office of the Governor, leaving item 9 OPEN. ^HEALTH 4:42:02 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Health: Item 1 Senate Item 2 House Item 3 Senate, all items Item 4 Senate, all items Item 5 Senate, all items Item 6 Senate, all items Item 7 Senate, all items Item 8 House modified to a temporary increment for FY 23 and FY 24 and replace 20 permanent full-time positions with 20 temporary positions Item 9 House Item 10 House Item 11 Senate, all items Item 12 Senate, all items Item 13 Senate, all items Item 14 Senate, all items Item 15 Senate, all items Item 16 Senate, all items Item 17 Senate, but modified to read: It is the intent of the legislature that the employer entities receiving the increased reimbursement rate for providing services under the Home and Community Based Service Waivers, Personal Care assistant State Plan, Community First Choice, and the Long-term Services and Supports Targeted Case Management programs provide a 10 percent increase to employee wages. Item 18 Senate, both items Item 19 Open Item 20 Open Item 21 Open Item 22 Open Item 23 Open Representative LeBon OBJECTED to Item 1. He stated that he would have preferred the House number was chosen. Mr. Painter replied that it was a policy choice, and noted that the number was still less than the governor's request. Representative LeBon felt the number should be zero. He WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Health, leaving items 19 through 23 OPEN. ^LABOR AND WORKFORCE DEVELOPMENT 4:45:27 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Labor and Workforce Development: Item 1 Senate Item 2 Senate Item 3 Senate Item 4 Senate Item 5 House Item 6 House Item 7 Senate Item 8 Senate Item 9 Senate Senator Wielechowski OBJECTED for Item 6. He queried the rational behind the decision. Mr. Painter explained that the House number was a proposal by the governor to bring the budget authority in line with actual expenditures, so it would not reduce the funding being spent from the particular fund source. Senator Wielechowski surmised that it would not cut positions or reduce worker safety. Mr. Painter agreed. Senator Wielechowski WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Labor and Workforce Development budget. ^LAW 4:47:17 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Law: Item 1 Senate Item 2 House Item 3 House Item 4 House Item 5 Senate Item 6 Senate Representative LeBon OBJECTED to Item 1. He asked for more information about the reference to a case in Texas. Mr. Painter stated that Senator Wielechowski could better speak to the subject. 4:48:20 PM AT EASE 4:51:36 PM RECONVENED 4:51:51 PM Senator Wielechowski stressed that it was a case about not protecting National Guard and Federal Reserve members. Representative LeBon WITHDREW his OBJECTION to Item 1. Representative LeBon OBJECTED to Item 4. He felt that the number could be higher at $2.5 million. He recalled that the House version was for $4 million. Representative LeBon WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Law budget. ^MILITARY AND VETERANS AFFAIRS Vice-Chair Merrick MOVED to ADOPT the following in the Department of Military and Veterans Affairs: Item 1 House Representative LeBon OBJECTED for discussion. He thanked the committee for their support of the civil air patrol. He WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Military and Veterans Affairs budget. ^NATURAL RESOURCES 4:55:52 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Natural Resources: Item 1 Senate Item 2 House as a one-time increment Item 3 Senate Item 4 Senate Item 5 Senate Representative LeBon OBJECTED to Item 2. He asked for more information on the item. Mr. Painter remarked that there was additional money in the capital budget for the project. He stated that the item was for ongoing support for the project. Representative LeBon wondered whether action was required to utilize any balance or whether there would be a carry- over. Mr. Painter explained that without action, any unspent funds would lapse, so the legislature could extend the lapse date of the appropriation. Representative LeBon REMOVED his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Natural Resources budget. ^PUBLIC SAFETY 4:58:18 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Public Safety: Item 1 Senate Item 2 House Item 3 Senate Item 4 House less three positions in Palmer and less four positions in Wasilla, for a total reduction of seven positions Item 5 Senate minus $230,100 Item 6 OPEN Item 7 Senate, both items Item 8 OPEN Item 9 Senate Item 10 Senate, both items Item 11 Senate less $308,800 Item 12 House Item 13 House Item 14 Senate Item 15 House minus $200,000 Item 16 House, both items Item 17 Senate Item 18 House Item 19 House Item 20 House Representative LeBon OBJECTED to Item 4, and asked for explanation. Mr. Painter explained that there had been an addition of 14 positions, but did not provide the funding for the positions. The expectation was that adding those positions would allow for the department to continue the improvement process. Representative LeBon REMOVED his OBJECTION. There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Public Safety budget, except for items 6 and 8, which remain open. ^TRANSPORTATION AND PUBLIC FACILITIES Vice-Chair Merrick MOVED to ADOPT the following in the Department of Transportation and Public Facilities: Item 1 House Item 2 Senate Item 3 Senate Item 4 Senate as an one-time increment Item 5 Senate as an one-time increment Item 6 Senate as an one-time increment Item 7 Senate as an one-time increment Item 8 Senate Item 9 Senate as an one-time increment Items 10 OPEN Items 11 through 13 Senate, all items Items 14 through 16 Senate, all items 5:02:14 PM Representative LeBon OBJECTED to Item 8. He surmised that the item was a seasonal position for maintenance of the Dalton Highway, but he wondered whether that position would be a permanent seasonal position. Mr. Painter replied that it would be a permanent position in the base of the budget. Representative LeBon WITHDREW his OBJECTION. 5:02:49 PM AT EASE 5:06:27 PM RECONVENED There being NO further OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Department of Transportation and Public Facilities budget, except for Item 10. ^JUDICIARY 5:07:06 PM Vice-Chair Merrick MOVED to ADOPT the following in the Alaska Judicial System: Item 1 Senate Item 2 House minus $1 million Item 3 Senate Item 4 Senate Item 5 Senate Item 6 Senate Item 7 Senate There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Alaska Judicial System budget. ^LEGISLATURE Vice-Chair Merrick MOVED to ADOPT the following in the Legislature: Item 1 House Item 2 Senate Item 3 Senate Item 4 Senate Item 5 Senate There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Legislature's budget. ^FUND CAPITALIZATION Vice-Chair Merrick MOVED to ADOPT the following in the Fund Capitalization: Item 1 OPEN Item 2 Senate, all items Item 3 Senate, all items Item 4 OPEN Item 5 OPEN There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items 2 and 3 in Fund Capitalization, leaving items 1, 4, and 5 open. ^LANGUAGE AND OTHER APPROPRIATIONS Vice-Chair Merrick MOVED to ADOPT the following in the Language and Other Appropriations: Item 1 Senate Item 2 Senate Item 3 Senate Item 4 Senate Item 5 Senate Item 6 Senate Item 7 Senate Item 8 Senate, all items Item 9 Senate, all items 5:10:08 PM AT EASE 5:10:31 PM RECONVENED 5:10:51 PM Vice-Chair Merrick MOVED to ADOPT Amendment 1 (32- GH2686\Y.A.1), which is a contingency language amendment regarding bonuses for members of collective bargaining units. to the "Language and Other Appropriations" motion sheet as item 4A. Mr. Painter explained the item added language that related to several of the bonus items in the House version adopted earlier in the meeting. Representative LeBon OBJECTED for discussion. He asked for more background about the letter of agreement. Mr. Painter explained that in the bargaining contract, there was a requirement for the letters of agreement between the executive branch and the union. Representative LeBon WITHDREW the OBJECTION, There being NO further OBJECTION, it was so ordered. 5:14:06 PM Vice-Chair Merrick MOVED to ADOPT Amendment 2 (32- GH2686\Y.A.2), a contingency language amendment regarding bonuses for classified or partially exempt employees who are not members of a collective bargaining unit to the "Language and Other Appropriations" motion sheet as item 4B. Co-Chair Stedman OBJECTED for discussion. Mr. Painter explained that substantive legislation was necessary to carry out the proposed bonuses adopted earlier in the meeting. Co-Chair Stedman WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Language and Other Appropriations. ^OPERATING/SUPPLEMENTAL ITEMS ^ADMINISTRATION Vice-Chair Merrick MOVED to ADOPT the following in the Department of Administration's FY 22 Supplemental budget: Item 1 Senate Item 2 OPEN Item 3 OPEN There being NO OBJECTION, it was so ordered. The action CLOSED item 1 in the Department of Administration's FY22 Supplemental budget, leaving items 2 and 3 open. ^FISH AND GAME Vice-Chair Merrick MOVED to ADOPT the following in the Department of Fish and Game FY 22 Supplemental budget: Items 1 through 7 Senate, all items Items 8 through 10 Senate, all items There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the FY22 Supplemental Budget for the Department of Fish and Game. ^GOVERNOR 5:18:06 PM Vice-Chair Merrick MOVED to ADOPT the following in the Office of the Governor FY 22 Supplemental budget: Item 1 Senate Item 2 Senate There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the in the Office of the Governor's FY22 Supplemental Budget. ^HEALTH 5:18:44 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Health and Social Services FY 22 Supplemental budget: Item1 OPEN Item 2 OPEN Item 3 OPEN Item 4 Senate Item 5 OPEN There being NO OBJECTION, it was so ordered. The action CLOSED the item 4 the Department of Health and Social Services FY22 Supplemental budget, leaving items 1, 2, 3 and 5 OPEN. ^TRANSPORTATION AND PUBLIC FACILITIES 5:19:25 PM Vice-Chair Merrick MOVED to ADOPT the following in the Department of Transportation and Public Facilities FY 22 Supplemental budget: Item 1 OPEN Item 2 Senate There being NO OBJECTION, it was so ordered. The action CLOSED item 2 the Department of Transportation and Public Facilities, leaving item 1 OPEN. ^LEGISLATURE 5:20:01 PM Vice-Chair Merrick MOVED to ADOPT the following in the Legislature's FY 22 Supplemental budget: Items 1 through 7 Senate, all items There being NO OBJECTION, it was so ordered. The action CLOSED the conferenceable items in the Legislature's FY22 Supplemental budget. ^FUND CAPITALIZATION 5:20:38 PM Vice-Chair Merrick MOVED to ADOPT the following in the Fund Capitalization FY 22 Supplemental budget: Item 1 OPEN Item 2 OPEN Item 3 OPEN Item 4 Senate, both items There being NO OBJECTION, it was so ordered. The action CLOSED item 4 in FY22 Supplemental Fund Capitalization, leaving items 1, 2 and 3 OPEN. Co-Chair Stedman stated that there would be an announcement of the next meeting. 5:22:14 PM Vice-Chair Merrick MOVED to ADJOURN. There being NO OBJECTION, it was so ordered. HB 281 was HEARD and HELD in committee for further consideration. HB 282 was HEARD and HELD in committee for further consideration.