Legislature(2025 - 2026)SENATE FINANCE 532
05/16/2025 04:00 PM House CONFERENCE COMMITTEE ON HB53 AND HB55
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34TH ALASKA STATE LEGISLATURE FIRST SESSION CONFERENCE COMMITTEE ON HB 53 and HB 55 May 16, 2025 4:31 p.m. 4:31:48 PM CALL TO ORDER Representative Josephson called the Conference Committee meeting on HB 53 and HB 55 to order at 4:31 p.m. MEMBERS PRESENT: House: Representative Andy Josephson, Chair Representative DeLena Johnson Representative Calvin Schrage Senate: Senator Lyman Hoffman, Vice-Chair Senator James Kaufman Senator Bert Stedman MEMBERS ABSENT ALSO PRESENT: Alexei Painter, Director, Legislative Finance Division SUMMARY HB 53 APPROP: OPERATING BUDGET; CAP; SUPP HB 53 was HEARD and HELD in committee for further consideration. HB 55 APPROP: MENTAL HEALTH BUDGET HB 55 was HEARD and HELD in committee for further consideration. CS FOR HOUSE BILL NO. 53(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 supplemental appropriations." SENATE CS FOR CS FOR HOUSE BILL NO. 53(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 supplemental appropriations; and providing for an effective date." and CS FOR HOUSE BILL NO. 55(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." SENATE CS FOR CS FOR HOUSE BILL NO. 55(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." 4:32:11 PM Chair Josephson invited Alexei Painter, Director of the Legislative Finance Division, to join the committee at the table. He stated that the committee would be addressing items in House Bill 53 and House Bill 55 based on the motion sheets dated May 16th. The meeting would cover items in the departments of: ADMINISTRATION COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT CORRECTIONS EDUCATION AND EARLY DEVELOPMENT ENVIRONMENTAL CONSERVATION FAMILY AND COMMUNITY SERVICES FISH AND GAME OFFICE OF THE GOVERNOR LABOR AND WORKFORCE DEVELOPMENT LAW NATURAL RESOURCES PUBLIC SAFETY TRANSPORTATION AND PUBLIC FACILITIES UNIVERSITY JUDICIARY LEGISLATURE DEPARTMENT OF ADMINISTRATION Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Administration budget: Items 1 through 7 Senate, all items Item 8 House Items 9 through 12 Senate, all items There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items in the Department of Administration budget. 4:33:50 PM DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Commerce, Community and Economic Development budget: Item 1 House, both lines Item 2 Senate Item 3 House Item 4 House, modify to One-Time Increment Item 5 House Items 6-9 Open Items 10-12 House, all items Items 13-14 Senate, both items Item 15 House minus $248.7 thousand UGF Item 16 House Item 17 Senate Item 18 Line 1, House, modify fund source to UGF, Line 2, House Item 19 House Item 20 Senate Items 21-22 House, both items 4:35:37 PM There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed conferenceable items 1 through 5 and 10 through 22 for the Department of Commerce, Community, & Economic Development, and left items 6 through 9 open. 4:35:52 PM DEPARTMENT OF CORRECTIONS Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Corrections budget: Items 1-2 House, both items Item 3 Open Item 4 House Items 5-7 Open Items 8-12 House, all items Items 13-14 Senate, both items Items 15-16 House, both items Item 17 Senate Items 18-27 House, all items Items 28-29 Senate, both items Items 30-36 House, all items Items 37-38 Senate, both items Item 39 Senate, plus $525.0 thousand UGF Item 40 Senate Item 41 Open Items 42-44 House, all items Item 45 Senate 4:37:45 PM There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed conferenceable items 1, 2, 4, 8 through 40, and 42 through 45 in the Department of Corrections. He noted that items 3, 5, 6, 7 and 41 remained open. 4:38:16 PM DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Education and Early Development budget: Items 1-9 Senate, all items Item 10 House minus $277.0 thousand UGF Items 11-12 Senate, both items Item 13 House Items 14-22 Senate, all items Senator Kaufman OBJECTED to item 15. He stated that based on his conversations with the Department of Education and Early Development (DEED), it was his understanding that the funding being decremented helped the department onboard foreign teachers and get them certified. He stated it helped fill the teacher deficit currently facing the state. He was interested in discussing whether it was an effective cut considering it was helping the state obtain staff for education. 4:39:13 PM AT EASE 4:40:49 PM RECONVENED Chair Josephson relayed that all items above with the exception of item 15 were adopted. Vice-Chair Hoffman addressed the objection to item 15. He stated it was a judgment call; however, a reduction had not been taken for item 13 related to teacher certification. He stated there had been reductions that were very difficult to make. He remarked that education was a priority. He was amenable to leaving item 15 open for the time being. He added that they had done the best they could, and it was not possible to do everything they wanted to do in education. He relayed that the dialog went back to all of the arguments individuals had made on the Base Student Allocation (BSA) from $700 to $1,000. He stated that the current budgetary times were difficult, but he would agree to leave the item open. Chair Josephson MOVED to leave item 15 in the DEED budget open. There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items with the exception of item 15 in the Department of Education and Early Development. 4:43:02 PM DEPARTMENT OF ENVIRONMENTAL CONSERVATION Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Environmental Conservation budget: Items 1-3 House, all items Item 4 Senate There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items in the Department of Environmental Conservation. 4:43:43 PM DEPARTMENT OF FAMILY AND COMMUNITY SERVICES Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Family and Community Services budget: Item 1 House Item 2 House, minus 2 million, 184.3 thousand dollars UGF Item 3 Senate Item 4 House Items 5-9 Senate, all items, all lines Chair Josephson stated that the action closed all conferenceable items in the Department of Family and Community Services. 4:44:31 PM DEPARTMENT OF FISH AND GAME Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Fish and Game budget: Item 1 Senate Item 2 Line 1, House minus $80.0 thousand UGF Line 2, House minus $20.0 thousand GF/Match Item 3 House Items 4-6 Senate, all items Item 7 House minus $225.0 thousand UGF Item 8 House, minus $316.5 thousand UGF Items 9-13 Senate, all items, all lines Item 14 House There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable in the Department of Fish and Game. 4:45:54 PM OFFICE OF THE GOVERNOR Vice-Chair Hoffman MOVED that the committee adopt the following budget items for the Office of the Governor: Item 1 Senate Item 2 House, both lines Item 3 House, with modified intent language to direct the Office of Management and Budget to use zero-based budgeting principles to prepare the budget for one agency and to provide a report to the Finance Committees and the Legislative Finance Division. Item 4 Senate Item 5 Senate Chair Josephson asked for verification that the governor's office would have the discretion to choose the agency [pertaining to item 3]. Vice-Chair Hoffman replied affirmatively. Senator Kaufman OBJECTED to item 4. He stated the intent had been to get reporting on the "efficient frontier" on staffing bonuses versus overtime. He thought it may have been over articulated and too well defined, but he believed there was some good intent. He would like to consider the item and leave the item open. Vice-Chair Hoffman remarked that the decision to reach the current proposal had been very cumbersome; however, he did not have a problem leaving the item open. There being NO OBJECTION, it was so ordered. Chair Josephson stated that with the exception of item 4, all other conferenceable items for the Office of the Governor budget were closed. 4:48:11 PM DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Labor and Workforce Development budget: Item 1 Senate Item 2 House Items 3-6 Senate Item 7 House, adjust fund source to STEP funds, fund code 1054 Senator Kaufman OBJECTED to item 3. He stated that SB 147 had created the position within the Department of Labor and Workforce Development (DLWD), which the department had told the legislature had been filled and trained. He explained that the decrement would result in the deletion of the position. The purpose of the position was to break the backlog in workers' compensation where the system had been ineffective, and people were not getting back to work. He elaborated that the system had not been working because it did not have the navigator needed to get people through the system. The legislation also fixed the outdated references to the job descriptions. He wanted to further consider the item to see if anything could be done. 4:50:04 PM AT EASE 4:50:29 PM RECONVENED Vice-Chair Hoffman remarked that item 3 was $125,000 and he was amenable to leaving it open for further dialogue. He restated the motion to leave item 4 open. Chair Josephson asked for clarification on which item should be left open. Senator Kaufman answered he was requesting to leave item 3 open. Vice-Chair Hoffman restated the motion, which would close all other items with the exception of item 3. There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items in the Department of Labor and Workforce Development. 4:52:29 PM AT EASE 4:52:47 PM RECONVENED DEPARTMENT OF LAW Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Law budget: Items 1-5 Senate, all items Item 6 Senate, change fund source to UGF (fund code 1004) Items 7-8 Senate, both items, all lines There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items in the Department of Law. 4:53:38 PM DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Military and Veterans' Affairs budget: Items 1-5 Senate, all items Item 6 House Chair Josephson stated that the action closed all conferenceable items in the Department of Military and Veterans' Affairs. 4:54:03 PM DEPARTMENT OF NATURAL RESOURCES Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Natural Resources budget: Items 1-3 Senate, all items Item 4 House minus $218.8 thousand Items 5-7 House, all items Items 8-9 Senate, both items Chair Josephson stated that the action closed all conferenceable items in the Department of Natural Resources. 4:54:52 PM DEPARTMENT OF PUBLIC SAFETY Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Public Safety budget: Items 1-4 Senate, all items Item 5 House minus 1 million 348 thousand dollars UGF Items 6-8 Senate, all items Item 9 House, minus $537.8 thousand UGF and minus 1 position Item 10 House, minus $90.0 thousand UGF Item 11 House Items 12-16 Senate, all items Item 17 House Items 18-21 Senate, all items Chair Josephson OBJECTED for discussion. Representative Johnson requested to revisit items 3, 13, and 14 associated with the Talkeetna trooper post. Chair Josephson asked Mr. Painter to describe the items. }Alexei Painter, Director, Legislative Finance Division{ clarified that the related items were 3, 4, 8, 13, and 14. The items were all related to establishing the Talkeetna trooper post in the Alaska State Troopers and Alaska Wildlife Troopers. Representative Johnson asked if all of the items had to go together or if it was possible to fund only some of them. Mr. Painter replied that the subcommittee in the House originally funded items 3, 4, 13, and 14. He explained that item 8 had been added back on the House floor. He stated it was easily possible to take only items 3, 4, 13, and 14. He noted it may be a bit difficult on the fly to partially reopen the trooper post beyond that. 4:58:36 PM Representative Johnson asked if it was possible to leave the items open. Vice-Chair Hoffman stated that the items regarding the trooper position were in excess of $2 million annually. He stated items 3, 4, 8, 13, and 14 would remain open. Chair Josephson WITHDREW the OBJECTION. He stated that items 3, 4, 8, 13, and 14 would be left open and the remainder of the items were closed within the Department of Public Safety. 5:00:18 PM DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Vice-Chair Hoffman MOVED that the committee adopt the following items in the Department of Transportation and Public Facilities budget: Items 1-9 Senate, all items Item 10 House Items 11-36 Senate, all items, all lines There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items in the Department of Transportation and Public Facilities budget. 5:01:13 PM UNIVERSITY OF ALASKA Vice-Chair Hoffman MOVED that the committee adopt the following items in the University of Alaska budget: Items 1-6 Senate, all items, all lines Items 7-9 House, all items, all lines Items 10-11 Senate, both items Items 12-13 House, both items, all lines Items 14-15 Senate, both items Items 16-20 House, all items, all lines Items 21-24 Senate, all items Items 25-28 House, all items, all lines Item 29 Senate Items 30-32 House, all items, all lines There being NO OBJECTION, it was so ordered. Chair Josephson stated the action closed all conferenceable items for the University of Alaska. JUDICIARY Vice-Chair Hoffman MOVED that the committee adopt the following items in the Judiciary budget: Item 1 House, minus $113.5 thousand Item 2 Senate Items 3-5 House, all items Item 6 Senate, both lines Item 7 House Item 8 Senate There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items for the Judiciary. LEGISLATURE Vice-Chair Hoffman MOVED that the committee adopt the following items in the Legislature's budget: Items 1-2 Senate Item 3 House, minus $290.0 thousand UGF Item 4 House Items 5-6 Senate Item 7 House Item 8 Senate plus $500.0 thousand UGF There being NO OBJECTION, it was so ordered. Chair Josephson stated that the action closed all conferenceable items for the Legislature. Chair Josephson concluded the meeting. He noted the date and time of the next meeting would be posted on BASIS. Vice-Chair Hoffman MOVED to adjourn the meeting. There being NO OBJECTION, it was so ordered. HB 53 was HEARD and HELD in committee for further consideration. HB 55 was HEARD and HELD in committee for further consideration. ADJOURNMENT 5:05:00 PM
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