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House Finance adopts CS2 for SB 57, adds and removes capital items and contingent fiscal notes
Summary
The House Finance Committee adopted a committee substitute to the FY25 capital budget (Senate Bill 57 CS2 version R) that adds and removes multiple projects, includes contingent fiscal notes for other bills, and adds designated receipt authority for a UAF Indigenous studies center.
The House Finance Committee adopted Committee Substitute 2, version R, for Senate Bill 57 (the capital budget) on May 6, 2025, after staff presented changes and committee members discussed contingent fiscal notes and scope language.
Co-chair Shrogy moved adoption of the committee substitute; committee members briefly objected for purposes of discussion, received briefings from committee staff and legislative finance staff, and then the committee removed objections and adopted the substitute as its working document.
Eric Gunderson, capital budget coordinator for the House Finance Committee, walked members through CS2 changes using a project-compare-by-agency handout. Major adjustments and additions included:
- Department of Commerce, Community and Economic Development: administrative systems updates for the Alaska Energy Authority (listed in the packet as $628,000 and $700); Alaska Oil and Gas Conservation Commission (AOGCC) orphaned well formula grants ($25,000,000 federal receipts) and orphaned well performance grants ($40,000,000 federal receipts); AOGCC risk-based data management systems upgrade (about $1,900,000 in AOGCC receipts); Blood Bank of Alaska donor testing laboratory ($500,000 general fund); leased warehouse repairs for the Alaska Energy Authority ($100,000 energy tech funds).
- Contingent fiscal notes tied to other legislation: staff said CS2 adds contingency language for capital costs related to bills moving through the Legislature, including a referenced fiscal note for SB 92 (Department of Revenue, $500,000) and a contingent item described as purchase of non-voting preferred shares issued by the Commercial Fishing and Agricultural Bank (CFAB) from the Capstone Avionics Fund (as described in the packet).
- Office of the Governor: Help America Vote Act election-security grants (federal receipts) and a language addition to reappropriate the capital income fund balance for statewide deferred maintenance renovation and repair for FY25.
- Department of Military and Veterans Affairs: $2,500,000 federal receipts for flood mitigation and acquisition of high-hazard areas in the Matanuska-Susitna Borough; a roughly $5,100,000 reduction in federal receipts to repeal previously listed congressionally directed spending for rock-slide mitigation in Skagway; and a scope change to allow funds associated with the Interior Alaska Veterans Cemetery to be used at the cemetery’s new site.
- Department of Natural Resources: $600,000 federal receipts for the National Recreational Trails program.
- Department of Transportation & Public Facilities: $6,500,000 UGF for Alaska Marine Highway System vessel overhaul annual certification and shoreside facilities, plus federal-aid state match adjustments; removal of two reappropriations that previously appeared for Palmer-Wasilla Highway improvements phase 2 and Matanuska-Susitna Fairview Loop Road reconstruction; and a $3,000,000 re-approval for earthquake relief costs that are federally ineligible.
- University of Alaska: addition of authority for the University of Alaska Fairbanks Triphietta Indigenous Studies Center — $2,000,000 federal receipts and $51,000,000 in statutory designated program receipt (SDPR) authority; staff said there is no UGF cost for that addition and that the university plans to continue fundraising to capture SDPRs.
Representative Johnson asked whether contingent fiscal notes should be cited by bill number or title; staff said the committee has used both approaches and this substitute references some bills by number. Michael Parlow with Legislative Finance clarified that an item showing a repeal of congressionally directed spending for the Skagway rock-slide mitigation was “hollow receipt authority” because the federal award had not been received.
After the staff briefing and brief committee discussion, committee members removed objections and adopted CS2 version R as the committee’s working document for Senate Bill 57. The committee scheduled no additional roll-call vote for the substitute at that moment; the substitute was adopted by the committee during the May 6 morning session.
