Senate Finance Committee to order.
Today is February the 4th, we're in the state capital senate finance room.
It's 9 AM, the silence of cell phones.
Joining me today are Senator Stedman, Senator Olsen,
Senator Keel, senator Merrick,
Senator Kauffman and my self Senator Hoffman,
Senator Crock is excused today.
Today's agenda,
supplemental overview could Lacey Sanders, the director of the Office of Management and Budget
come forward and submit her presentation also in the audience as Senator Giesel.
Ms. Sanders.
Good morning.
For the record, my name is Lacey Sanders. I am the Office of Management and Budget Director for the governor and
As noted today, I was going to walk through an overview of the fiscal year
2026 supplemental budget
That was transmitted to the legislature yesterday
Year per statute the supplemental Budget is required to be transmitted
To the Legislature by the 15th day of session
And this is the the start of that process
We have historically brought as many as the items that we had and are known and have available to the committee at this by this deadline
That does not mean that there are not items
That may still come before the Committee as we work through the
The process during session as well as, we have the department's bringing us additional items
So to get started I'll start on slide two
This slide two is a reflection of an updated version
of the supplemental budget fiscal summary.
So for fiscal year 2026, this includes both the
enacted FY26 budget, which we refer to as management plan
plus the subliminals that were proposed
on the December 11th budget.
And then as well the supplementals that were introduced yesterday in the February 3rd budget.
As you can see, the overall surplus is now 400, excuse me, deficit is
now 425.9 million dollars.
I like surplus, I do as Well.
Again, that's proposed to be drawn from the constitutional budget reserve fund.
Fast forward, if it's okay to slide three,
I think it is a little easier to see the breakdown.
So starting with the operating supplemental request,
as you'll see at the top,
we have the $95 million in general funds
for the supplemental requests that we covered
in the earlier weeks.
This is $55 million placeholder
for fire fund deposit.
There were two letters to legislature during the interim
That included $55 million to be deposited into that fund
We are still working on the remainder of the supplemental need that will be required for fiscal year 2026
Working closely with the Department of Natural Resources to determine what that is and at that time
We will submit a change record for that amount
Additionally in there in this December 11th number is the 40 million that we had talked about earlier for the disaster relief fund
So moving on down
This is a summary of the by agency of The amounts that are requested. I'm gonna highlight a few items on the next slide
But overall the supplementals that were submitted
yesterday total 79.1 million dollars and unrestricted general funds
and a total of $81 million overall.
The largest increase is going to be in the federal component
when we're talking about Medicaid.
That shows up within the Department of Health's line.
And again, on the next slide, I'll talk through some of these high-level items.
So overall, the total operating supplementals are $174.1 million in general funds between the December 11th and the February 3rd date.
So just to highlight a few of the items that are included in this.
operating budget for supplemental. We'll start with the Department of Administration.
We have $3.3 million of UGF funding proposed as a multi-year supplemental, meaning that
it would cover multiple fiscal years. And I should reference also in your packets, you
do have a very large spreadsheet with all of the items. I wasn't planning on going through
happy to address any items that are on the spreadsheet.
But historically, this division has had a
a multi-year appropriation that has allowed them to contract out for their
criminal case backlog needs and that funding has is is expiring and is no
longer there and so they would like an additional 3.3 million dollars to work
through the the to continue work through working through
the case a backlog over the next two fiscal years so fiscal year 2026 and
A notable item within the Department of Corrections, we continue to work with the department of
Corrections on evaluating what their total operational needs are within
the division, or excuse me, within department.
As you may remember, there were two significant reductions to the
Department Of Corrections budget last year.
One had to do with $7.5 million for the closure of the Spring Creek Correctional Center.
And then as well as 6 million dollar or 6.8 million
dollar reduction associated with a letter of agreement that was no longer in
place. We have continued to struggle with the estimating what the cost are
for the Department of Corrections.
There are many unanticipated needs
that this agency experiences as well
as having, you know, 24-hour institution that has
to ensure that their minimum staffing needs are met.
And that we estimate is going to cost approximately $20 million
in fiscal year 2020.
excuse me, 2026, to bring their funding level back up
to an amount that will meet the needs
of closing out the fiscal year in a positive balance.
Yeah.
On that topic, I'm more concerned
about how we can control those costs
instead of trying to figure out
the current system.
that's being utilized. It seems as though there has to be some cost control measures taken within
department. Are there any cost-control measures from the administration's viewpoint that are being
looked at? Chair Hoffman, if I may, I have Commissioner Winkleman here in the room today.
I would request that she join us at the table to speak to any operational changes that
Welcome mr. Winkleman
Great, thank you for the record-gen-winkle man commissioner for The Department of Corrections
So to the chair I am looking we are looking at operational changes daily
in in trying to
Trying to meet these budget shortfalls if you will I would say it is
Consistently, I'll call it a perfect storm whether that staffing levels our vacancy rates cuts
We have incidents happen, I used this example,
I was speaking with OMB yesterday,
we had an example at Spring Creek this past weekend
that cost us just under 200,000 that we did not plan for,
and that was essentially a small riot on the yard.
And so we are looking every day.
To make these changes, but I think it has been somewhat of a perfect storm with staffing and a real complex individual coming to us
As your statement. Thank you, Mr. Chairman that I
Think the storm has gone on for a couple years, right? This isn't quite
Surprise weather forecast
But mr. German I've had several of our colleagues
approach me and most likely the chairman on revisiting the whole issue of
exporting some prisoners south to lower costs and get control of this, which is
a reversal from maybe a decade ago when we talked about bringing them home so
they can be closer to their families. I'm not so sure that that's worked
I just wanted to mention that, and I'm talking about the more hardened of the criminals,
not somebody that might be visiting our establishment for a year or two,
but ones that are going to be in here for 20, 30 years.
I thought I'd mention it.
Do you have a response miss Winkleman? Yeah, if I may thank you. Thank you for the comment
It is something that it runs through my mind and and I will say
digress for just a second. We do transfer inmates out of state
If they are if there are medical needs
That maybe Alaska can't meet or if they're some sort of a separation that we need to have
And I'll use the example of law enforcement officer that becomes arrested and becomes part of the system and we needed to keep them away
for their safety as well as others and so we'll transfer.
Where it gets a little bit more complicated and I just wanted to state this piece for
the record is that we would go out to an RFP for a contract out of state.
But then it is identifying who do we want to send, which inmates would we wanna send out
of State?
inmates at another facility because I do know that due to staffing issues in
many states they are sending inmates out of their state and I'll use Montana for
example they they're sending prisoners down to Arizona right now which fill up
the private beds elsewhere. I would also say that corrections being as large as
coupled with the RFP process, we would have to determine
what community, in order to achieve the savings,
it would be likely closing down a facility,
and what Community would we be doing that in,
recognizing that we employ a lot of individuals
and plot of state employees in these,
and they do enter into a...
a public safety element by being in community.
It becomes a natural deterrent,
it becomes the staff member that may stop at a facility
or a grocery store in uniform,
it become a different type of deterrent
of public's safety in the community,
I am willing to have any of these conversations.
I don't want to make these decisions
because I recognize the impact is far, far greater.
With the legislator, with the legislature,
with local communities,
the administration is willing
to having these conversation.
But these are the factors that we are thinking about
that come into play every time we start talking about it.
And as members of this body know, we have done it
I believe that's three previous times and we have wound up either bringing them back
or reopening in the latest case with Palmer at quite a significant cost and so having
to weigh out all of those factors is something that I think we having a conversation is is
absolutely I appreciate your comment because it is
I think we have to have a serious conversation about that topic because the current situation
is, from my viewpoint, unaffordable.
And that is a long-term potential solution on the short- term basis.
I thin people have mentioned to me that the Department of Corrections or the administration
the overtime situation and put the people that are on the lower spectrum of the pay
scale in the over time situation positions for overtime and not utilizing people
that on high end of a pay scale spectrum I wonder if you could give me for the
12 months give me a report on who those individuals are
and what pay scales they're getting for overtime.
And also give the individuals that are below them in pay
scales and the savings would have been if we had
individuals at the lower end of the pay scale.
Yeah, to the chair, great point.
I do recognize and we can certainly get you a report on the overtime hours.
I would also state that some of how it is driven is by the collective bargaining
agreement and how folks sign up for their shifts and things like that.
Un-understanding that but we need the information so that
People that are at the negotiation table have those tools in front of them
So that they're making the best financial decisions for the state of Alaska
You know, I would ask you then
Has that information been available to the bargaining units when they are?
At the table
Has information being available? Yeah to The chair. Yes. Yeah
We do provide the same reports, and we will ensure that we get that to you as well.
Senator Steadman, this is a follow-up.
I think this subject has been on the table before on previous budgets.
The last couple of years, in the concern expressed by the chairman of the way the negotiating agreement is structured.
One of most senior people grabbed the overtime and basically spiral our budget's got to control.
Just to work.
So it's we got to come up with a some parameters on it one way or the other
And I don't just for clarity, I think the chairman's concerned about the individual's name per se
You know, we're talking about
the concept here of
The amount of people in there and maybe their years of service that we could be listed or somehow you could they could list it
because we're not interested in the individual per se,
but it's a concept here.
And it is a problem when we look at, Mr. Chairman,
to me it was a problems when you look
at all the other agencies up and down.
And we had a meeting yesterday and sent a transportation
about to squeeze out a DOT and the reorganization of DOT
from budget reductions.
So there is rippling effects as one department expands.
Exponentially and we've got to contract somewhere else because we're we have got our our
bookends that we had to keep the budget within and
Some of us at that meeting yesterday afternoon. We're very concerned about DOT
Making sure that they operate in an efficient manner and can and
Can
Do what they're supposed to do to to the roads open and safe to drive on?
And when you're talking about a $20 million increment
on a long-term basis and go back and look at the increases over the last three years
for the Department of Corrections, particularly in salaries, that what's magnified is those
higher salaries have been rolled into retirement and benefits and someone that is collecting
in some cases maybe doubling their salaries and doubling the retirement give cause to me that
maybe that also should be looked at in future negotiations where overtime should not be utilized
to calculate somebody's retirement benefits. I might ask Senator Stedman if you might comment on that.
Look that the retirement system probably more than anyone else in this building. Yes, it is a concern
And I know there's some limits on it
But we have a very rich retirement
System regardless of which one you pick around the state and we just don't want to be taken advantage of
You know we're
The state employees are very well taken care of
But you know, that's we don t want it to become abusive no matter what tear you're in
That's not a tier conversation.
It's just a concept conversation, so we can have,
maybe when we have retirement and benefits
in front of us, we could talk to them
about how they're capped, salaries are capped
and when SBS stops and starts and stuff.
And so, when you get a full grasp of that,
but when look at all our departments' corrections,
really sticks out the last couple of three years.
And I know the OMB directors have been working on it.
something that has caught them by surprise.
But it's got to get, we got get control of it one way or the other.
Thank you Senator Stedman.
Senator Keel.
Thank You, Mr. Chairman.
I guess the two co-chairs stole most of my thunder so I won't rage.
I'll actually just start with just a clarifying question to the OMB Director.
I may have missed her.
Did you say we closed Spring Creek Correctional Center or did we close one
Through the chair, Senator Keel, I should have clarified it was one mod.
Okay, thank you, that's helpful.
I wasn't sure if I had misunderstood that.
In terms of the cost growth,
and the pattern of subliminals, share the concerns.
As I understand it, the.
This particular bargaining unit are you is the administration currently bargaining with the correctional officers?
Through the chair senator keel. So this correctional
Union contract is under interest arbitration, which means there is no addressing
The items that senator Hoffman or senator Sedmon are speaking to about changing variables
That may apply to signing up a correctional officer for overtime right now. It's purely
salaries that are discussed and yes, that process is in place right? Now
fall center keel
Prior to interest arbitration
I know that
the
the three unions that represent Marine Highway System workers.
For many years, we heard complaints about some of the difficulties in managing the system
and its costs because of some the provisions in those unions.
And in the last couple of rounds, DOT has participated in
those bargaining sessions.
Has the Department of Corrections or perhaps OMB been involved in this particular contract?
Again prior to this arbitration
Through the chair senator to keel so this is the third year of interest arbitration
I have only been in this role for three years, so I can't speak to what may have done prior
to that
but I
speaking for
Commissioner Winkelman here, she is involved
in those conversations.
OMB is not involved in these conversations,
other than providing analysis on numbers
and what cost estimates would look like.
So I think to your point,
when we get through interest arbitration
and can go back to the table to negotiate
with this particular union, yes.
the commissioner will be involved in those conversations.
And hopefully, she has a list of items
ready to go to speak with those that are negotiating.
Senator Keel.
Thank you, Mr. Chairman.
That's good news.
That is helpful.
I think bargaining those things across the table
is equals with people who actually have to manage the budget
is going to be crucial.
just express a little concern about the notion
of shipping Alaskans to warehouses outside.
We've done that in the past.
The cleanup has been both expensive and ugly.
And I don't know that that's a long-term cost we want to bear.
But I can't disagree at all about
the cost concerns.
Are there other tools that the legislature
can give the Department of Corrections,
the Office of Management and Budget?
to address the growth in this department's budget.
So through the chair to Senator Keel, I will think on that.
But I think my quick answer is if we could get staffed,
which is a nationwide problem, particularly in corrections, and
our medical costs with the complex individuals that are coming through our
trickier to figure out how to legislate and help get this under control because those
are the two huge drivers of our, I mean, clearly where the catcher has met, of all other policy
changes upstream to us, but I think that just simply put our personal services due to vacancies
There's so much of it as well as the medical.
I know we've spent a lot of time on corrections.
If we could maybe hear back at some point about additional efforts to fill the vacancies
at corrections, whether that's hiring bonuses or attention, whatever the administration's
doing, that'd be great.
I totally agree when you're spending twice as much on overtime, maybe there should be
Consideration of bonuses to hire individuals that are one-time expenditures
because if the overtime
situation is going to be an ongoing cost this is
Seriously bad management
senator Kaufman
Thank you
Through the chair I
Sorry, my throat's closing up. I I hear an opportunity here that I think we need to apply
to many discussions we're going to have along the same vein of cost management.
And I think it would help if when we were discussing cost
management in a department that we have like a cost
management proposal.
I thank it's a good time for us to
have on the table departmental cost
management proposals that that way we are actually we
If we had the broader support of the legislature,
and we have understanding of what the departments were trying to do,
their constraints, the challenges,
the opportunities that are in there,
and then we could have a more meaningful conversation
about a programmatic cost management.
I know the time short for this budget cycle,
but I think it would be something really good to have in front of us
since we're dealing with such tight budgets
You know, identified in one page or at least something that we can look at and say, hey, here's what we're dealing with, but here is what
we see is doable and the time frame for that.
Ms. Winkleman, do you have a response to that comment?
Through the Chair, Senator Kaufman, I do agree and it is something
that I would say we are working with OMB regularly on.
Maybe without the title of what you know, but essentially yes, and I am very open to it
I'm open too all sorts of ideas and
I talked to my counterparts in the lower 48 and hear about some of their staffing issues and they're over time driving up their budgets
The way it is and i just I know it
We run at minimum manning as is
And then we have an incident come and we
Have to bring in additional staff that we don't really have and that just becomes tricky and trying to figure out how to how
So thank you.
Thank you, the response to Senator Keel.
I would agree with the problematic issues
of sending people out of state.
But if we cannot hire individuals,
and that seems to be the case for the last three years,
if not longer, we need to look at alternatives.
of overtime, this issue cannot go on, Senator Keel.
So you have the budget, take your magic wand and fix it.
Senator Studman.
Thank you, Mr. Chairman.
I was wondering on the, we know we've got a hiring freeze across the state.
What effect has the hiring frees had in filling these roles?
So through the Chair to Senator Stedman,
we have, because so many of our positions
are fire, life, and safety, we
have a waiver for those.
So I would say that it's had limited
in some of are administrative functions, certainly,
but not when it comes to our officers
and what we are talking, what is driving the overtime.
Thank you.
Thank any further questions for Ms. Winkleman
while she's at the table?
If not, Ms. Sanders, please continue and I apologize to the committee, but this is one
of the biggest increments and it has been one that has ongoing for several years.
So that is why I think the Committee needs to bring this up and have a dialogue regarding
Sanders
Thank you. So I'll just touch briefly on the the second two bullets under the Department of Corrections
We have 1.1 million dollars for the community residential center bed contract obligations
This is just
the cost of ensuring that our contracts are met for the current fiscal year.
And then just under $3 million for health care operational needs.
So this is what Commissioner Winkleman was speaking to the high medical needs that we're experiencing in our institutions with the population that
we have.
Moving on to The Department of Health.
I'm going to try and provide a little bit of explanation of what we're facing here.
This is $272 million of federal receipt authority for
the rule health transformation funds that were recently awarded to the state of Alaska at the federal level.
As you all may be aware, the LBNA or legislative budget and audit committee took this item
up in November and provided $200 million worth of federal authority based on an estimate
at that time on what the state would receive.
That authority was provided for fiscal year 2026 only.
Almost a duplication, but a $272 million federal receipt authority as a multi-year.
The first tranche of funding that the state of Alaska will receive will cover three fiscal years.
That it's available to be spent.
And then we anticipate you will see a secondary multi year appropriation.
for the next tranche of funding in fiscal year 2027.
That would cover 27, 28, and 29,
and then we would continue each year
with those multi-years through the five years
that the Department of Health expects to receive that funding.
So we can take
Action in the accounting system to restrict the 200 million dollars that would was received for the the LBNa
RPL that was recieved to ensure that we can obligate the
272 million over the three-year time period that is allowed to be spent
Happy to take questions if there are any
first of all this particular
Appropriation as you said this multi- year
it has the potential to transform as it is in the title health care in
the state of Alaska. The this has been receiving a lot of dialogue in this
building on both sides of the island both parties. This is going to get a
and this committee probably will be delving into it further,
but the legislature, the drift I'm getting is,
the Legislature wants to be involved
in how those dollars are being appropriated
and how the plan is being presented
that will improve healthcare throughout the state of Alaska.
inform the administration that the legislature is the
appropriating body while we are in session.
We understand that this is a fast-moving program and the
administration went to LDNA for a RPL that got approval.
But we're now in-session and there's great concern on what
is happening with these dollars and how the bottom line is how we as appropriators are going to be
involved and making sure that rural health and that is not just off the rail belt. Alaska is
by the expenditure of these dollars and
The question that I have is how are these Dollars going to improve the health care of people in tundituliac as well as an anchorage
chair Hoffman
great questions
I will defer to commissioner headberg to present to this committee
Please further questions or comments upon this
Very important appropriation by committee
Thank you, please proceed. Thank You
Moving down to the second bullet
In the division of public assistance. We have been working through their budget as well and determining
What their actual cost?
should be reflected as the department or the division has been receiving several years of
multi-year appropriations that are no longer available to cover the costs and so now that
those appropriations are longer in place we have a request for 21 point or just under or
just over 21 million dollars to ensure that the the cost associated with their IT systems
or their eligibility systems is covered.
It's approximately $11.2 million of state funds
and $9 million in federal funds.
In continuing down, we also have a contract,
it's referred to as the Virtual Contact Center.
This is the contract that is working through items
such as eligibility.
This was an item that was not funded last year in the budget, that contract has been continued.
I believe it was a request of about $8 million last
year, the department worked through the process of identifying where some
of the system costs could be Medicaid eligible, so a portion of
the cost is being covered by Medicaid funding.
contract.
And then lastly, the final bullet is the update for the Medicaid payments.
This is a total of $456 million of that, $36.4 million as state funds or match.
And the remainder is $420 million at federal receipts.
This in alignment with the projection that was provided to the legislature at the midway
We will have an update to the committee I believe next week on Medicaid payment
Medicaid Payment Update that the Department of Health completes for February per the intent language
So this is the number that follows the December estimate and we will Have a revised estimate to The Committee here shortly
Questions send your keel
Thank you, mr.. Chairman not to sound like the member across the table from me, but could we get an update on the?
long-running expensive it project to get the eligibility system at health off the old mainframe
Through the chair senator keel I believe
I'll run is in the room and may be able to speak to the the status of that project
did you hear the question? I did. Please identify yourself and through the Chair,
Senator Keel, for the record, Pam Halloran, Assistant Commissioner for
the Department of Health. Thanks for your question. So as far as the eligibility
system, there's a lot of work a, lot, of, work and that is one of the contributing
factors to the $21 million request. As that work is being completed, the costs are
It's so as so there is progress and we're looking forward to having an integrated system
one integrated System that maps all of our systems the aries and all the eligibility systems for all our programs
Into one modernized system. So we are close. We're Looking forward ticketing off the mainframe
Which is a huge step in the end of fi 28
senator keel
Thank you, Mr. Chairman.
Can you or can someone refresh my memory about when our accuracy rates start affecting our
federal match rates for some of these programs?
Is it before the end of FY28?
Through the Chair, Senator Keel, it is not in FY27.
I believe it begins in FY28, federal beginning October 1, FY 28, although we plan to seek
Here's hoping thank you, mr. Chairman. Thank you senator keel any further questions
from the salary thank You
The senators please proceed
So on slide number five and for the record. This is lacy Sanders just for people taking minutes
Attached are here. We have a summary of the total supplementals for capital budget
So December 11th was the introduction of The Match
for the state transportation improvement program
that was a step, that's $70 million.
There are no general funds being requested
in the capital budget in February 3rd submission.
We have a variety of other items
and I will highlight some of the larger items
on the next slide, but the total capital supplementals
at this point, total 70.2 million dollars of general
funds and 128.1 million in total.
And with that, I'll move to slide number six to highlight some of those capital supplemental items.
In the Department of Commerce, Community, and Economic Development, we have five million dollars
in federal receipts for the Alaska Energy Authority bulk fuel upgrades high energy cost grant that
they are receiving. So this is federal receipt authority to allow them to expand towards the bulk
fuel upgrade program. In addition to that, there's 25 million of what we refer to as statutory
contractual funding or an outside entity that is not a state organization or a
federal organization that will be providing $25 million in grant funding
or in Grant funding to the Alaska Energy Authority for bulk fuel upgrades. That
funding is coming from the Denali Commission and ANTCH which I am
blanking on what that acronym stands for at the moment because I'm put on the spot.
And then lastly, we have a 1.2 million increase for the Alaska Oil and Gas Conservation Commission.
This is a continuation of a project that was started last year for their risk-based data
Full request forward last year, and there was concerns about the receipts being appropriated in the year that they were available.
So we just continue that project over multiple years as those receipts are available for appropriation.
And THC, Alaska Native Health Tribal Consortium.
Thank you, sir.
Appreciate that.
In the Department of Natural Resources, there is $6 million of that statutory designated
program or seed authority again.
This is a grant from the Alaska Native Tribal Health Consortium for work on evaluating the
impacts that they are facing or experiencing due to weather.
In the Department of Transportation and Public Facilities, we have seen an increase and
an uptick in the department's response to disasters across the state.
So when there is either the, for example, the Juno snowstorm that we experienced or
The typhoon hollong is another example.
There are substantial costs associated
with the department responding.
Some of those costs are not covered by the federal agency FEMA
and may not be eligible for reimbursement.
The department went through their outstanding capital projects
and identified $5.1 million of ended projects
that could be used towards that emergency response.
And it's being proposed as a capital project so that they can use it over several years and then lastly
There's eight million dollars in the University of Alaska's budget again for that statutory designated program receipts
There was a gift for the Alaska Museum of the North Planetarium
totaling eight-million dollars
Chair Hoffman I am happy to take questions. I was just going to highlight some of the items today
But if members have questions about specific items that I did not cover today.
I'm happy To address those as well
Senator statement
Thank You mr. Chairman
Sanders while you're here even though this is more applicable to coming attractions in FY 27
there's
and the federal grants that are held up in Washington.
And we've been working with some cash flow modeling
and some forward-looking Ouija boards,
and it looks like it's kind of scary in the event
that we don't get those funds released.
And my understanding is DOT is going to go to Washington
and have a dialogue with
some of the folks at federal DOT, I guess.
and see if they can't spring that money loose.
But I think it could be prudent for us
to work with the Office of Management and Budget
in the Marine Highway and start modeling
some of the contingencies.
Because some are limited view.
When we look at things that there's a reasonable chance
we could run out of funds next January.
And that would face the put the Marine Highway in a very difficult predicament of running
even reduced schedules and losing more employees or tying up the whole fleet and pretty much
imploding the place.
Neither one of those are acceptable, so we need to come up with a solution and some contingency
I think on this subject, Mr. Chairman, we might be a little bit ahead of the administration
on our concern.
Maybe we suffer from a paranoia, I'm not sure, in the marine highway, but nevertheless I would
just suggest that we work together and try to come up with some planning so we minimize
the indigestion of this situation.
continue to try to keep stability with our employees at the Marine Highway, so they're not concerned about
their job next February.
Do you have comment? Through the chair, Senator Steadman, yes, we, you know, everything that you've shared just now is
the same things that we are looking at.
I spoke with Commissioner Anderson late last week
about this particular item.
I know he presented to this committee.
I Know his staff.
I have director Don Pannon in the room today.
They they are
looking out this very carefully.
Again, as you mentioned, Commissioner
Anderson and their team will be going to D.C.
I have a short list in my office of things that I am tracking. This is definitely one of those things
that is on there. I'm happy to look at variations of models with the committee and will continue
to see what outcome we can get at the federal level. Thank you. Regarding the disaster out in
affecting Kipnuck and Kugilnuk, I understand that there's 400 to 500 people that are still
misplaced and not in those villages. I wonder if you can get to me what the time frame is
and what solution is to get some resemblance of normalcy when they will be returning to their
Chair Hoffman, I can follow up with Director Bryan Fisher
to see if they have a timeline established.
I don't have that information with me today.
I understand that.
Further questions from committee members?
Does that conclude your presentation, Senator Stidman?
Yeah, just to make a comment here.
Just as an encouragement to the administration,
I think the committee would like to expedite
the supplemental.
so we can concentrate on the difficulty we have in the upcoming current budget FY 27.
And I would just encourage Mr. Chairman that the OMB work with the other body to ensure
their understanding of what's in this bill, that we've not been adding to it.
In fact, we're grudgingly going to fund it all because we don't have any choice, but we need to get
this document on the governor's desk so he could manage the state in a prudent
manner, sooner the better, and give us more time to figure out FY27 and on to a
view of what situation we might be in in FY28.
It's my understanding that the administration is submitting legislation
Chair Hoffman the supplemental bill was transmitted to the legislature on Monday
I believe it was right across yesterday or maybe it's today so my days up today to follow up
It's the intent to work with the other body and as was stated
We don't anticipate
Adding anything that the governor is not requesting
But we need to have an understanding of what those items are with. The other Body
I would express to the administration that we want to work with you and we need the assistance
of all the legislators in the House and in this Senate to look at the request and see
the necessary support for the governor's request.
We need to understand that this is the Governor's
request, and when we are talking about funding,
the people of Alaska should well understand
that the vast majority of this, if not all,
is going to come from the constitutional budget
reserve account.
That account has been around for many, many years.
But to access that account,
requires three-quarter vote from the House and three quarter vote
from The Senate in the Senate that is 15 votes and in The House that
is 30 votes. And hopefully we can get the support from all the people in
the legislature to support the governor's request to fund all of these items. So
closing comments
Chair Hoffman, no, thank you. I will say I have a very intelligent group of individuals supporting me
All of them are available to ask questions if people have questions about what's been presented or an item that is was not covered today
I am available
to take questions as well and
Thank you for your time today
and we look forward to working with administration to hopefully they can
gather support not only from the finance committees
but from all the members of the legislature, since it is a request for the governor
to provide the services that Alaskans expect to receive.
Any final questions or comments by committee members?
With that, that concludes the business today.
We, there is no meeting scheduled for tomorrow or Friday.
Our next meeting will be on February the 9th.
We'll be having an update from the Division of Retirement and Benefits on PERS and TERS.
We are adjourned.