| Members Present: Sen. Jerry W. Stevenson, Senate Chair Rep. Bradley G. Last, House Chair Sen. Don L. Ipson, Senate Vice Chair Rep. Jefferson Moss, House Vice Chair President J. Stuart Adams Sen. Luz Escamilla Sen. Daniel Hemmert Sen. Jani Iwamoto Sen. Derek L. Kitchen Sen. Karen Mayne Sen. Ann Millner Sen. Evan J. Vickers | Rep. Francis D. Gibson Rep. Brian S. King Rep. Karen Kwan Rep. Carol Spackman Moss Rep. Val L. Peterson Rep. Angela Romero Rep. Mike Schultz Speaker Brad R. Wilson Staff Present: Steven M. Allred, Deputy Fiscal Analyst Jonathan Ball, Fiscal Analyst Greta G. Rodebush, Executive Assistant |
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Note: A copy of related materials and an audio recording of the
meeting can be found at www.le.utah.gov.
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| 1. Call to Order/Approval of Minutes |
| Chair Stevenson called the meeting to order at 11:50 a.m. |
| MOTION: Rep. Last moved to approve the minutes of June 17, 2020. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| 2. Federal/Non-federal Grants and CARES Act Funding Update |
| Taylor Kauffman, Federal Assistance Management Officer, Governor's Office of Management and Budget (GOMB), presented the report. |
| 2a-Federal/Non-federal Grants Packet, August 2020 |
| Alex Wilson, Financial Analyst, Office of the Legislative Fiscal Analyst (LFA), provided some additional analysis of the federal grants. |
| Duncan Evans, Budget Manager, GOMB, presented an update on the CARES Act Coronavirus Relief Fund money. |
| Rep. Kwan discussed the importance of providing mental health resources for first responders. |
| Chair Stevenson asked about the distribution of Coronavirus Relief Fund money to cities and counties. Duncan Evans responded. |
| President Adams inquired about the distribution dates of the Coronavirus Relief Fund money. Duncan Evans responded. |
| MOTION: Rep. Last moved to recommend acceptance of the federal and non-federal grants as outlined on page 1 of the handout entitled, "Federal/Non-Federal Grants Review and Approval" under the heading, "Grants Requiring EAC Review and Recommendation" and dated today, August 1, 2020. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| 3. Revised Revenue Estimates for FY 2020 and FY 2021 |
| Dr. Andrea Wilko, Chief Economist, LFA, presented the report. |
| 3-August 2020 Revenue Estimates, FY 2020 - FY 2021 |
| MOTION: Rep. Last moved to adopt the revenue estimates for Fiscal Year 2020 and Fiscal Year 2021 as presented on the sheet entitled, "August Revenue Estimates in Thousands of Dollars, FY 2020 - FY 2021" and dated today, August 18, 2020. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| 4. Higher Education Budget Adjustment Recommendations |
| Sen. Vickers introduced the Utah System of Higher Education reallocations requests for FY 2021. |
| Sean Faherty, Financial Analyst, LFA, explained the details of the Issue Brief. |
| 4-Issue Brief - 2020 Interim - Utah System of Higher Education Reallocation Requests |
| MOTION: Rep. Last moved that the reallocations as included in the Issue Brief titled "Utah System of Higher Education Reallocations Requests" as adopted by the Higher Education Appropriations Subcommittee on August 17th, 2020, be included in the next available Fiscal Year 2021 budget bill. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| 5. Special Session Bills |
| Jonathan Ball explained that the Legislature would be considering two appropriations bills in the Sixth Special Session. He discussed three funding option lists that will be included in the appropriations bills. |
| 5a-Funding Option Lists - August 18, 2020 |
| Chair Stevenson asked for the committee's input on the funding option lists. |
| Jonathan Ball highlighted some items on the Funding Option List - Restorations and Hotspots. |
| Sen. Iwamoto asked about restoring funding for public health clinics. Jonathan Ball responded. |
| Rep. King moved that in the Sixth Special Session the Legislature appropriate all available fund balances up to $53 million from the Throughput Infrastructure Fund to the Public Education Economic Stabilization Restricted Account, one-time in FY 2021. He further moved the following intent language for inclusion in the Supplemental Budget Balancing and Coronavirus Relief Appropriations bill:The Legislature intends that the Legislative Fiscal Analyst and State Board of Education staff develop a proposal for distributing $53 million from the Public Education Economic Stabilization Restricted Account to communities impacted by mineral extraction for one-time teacher training, scholarships, and classroom technology as well as for in-school health clinics and school nurses. The Legislative Fiscal Analyst and State Board shall report that plan, including options for addressing any ongoing costs associated with the plan, to the Executive Appropriations Committee prior to the 2021 General Session. |
| Rep. King spoke to his motion. |
| Sen. Vickers spoke against the motion. |
| Rep. Schultz asked Jonathan Ball to comment on the Utah Permanent Community Impact Fund Board (CIB) money. Jonathan Ball responded. |
| Rep. Schultz spoke against the motion. |
| Sen. Iwamoto spoke to the motion. |
| Rep. King summed his motion. |
| Rep. King's motion failed with a vote 8-12-0. | |||
| Yeas - 8 | Nays-12 | Abs-0 | |
| Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Sen. K. Mayne Rep. C. Moss Rep. A. Romero | Sen. J. Adams Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| Jonathan Ball discussed the proposed intent language for inclusion in H.B. 6002. |
| 5b-Proposed Intent Language for Inclusion in H.B. 6002 |
| Rep. Last moved to adopt the budget adjustments presented to us today in the documents entitled, “Funding Option List – Coronavirus Relief Fund”, “Funding Option List – Technical Corrections” and “Funding Option List – Restorations and Hotspots” and to adopt the intent language presented in the document entitled “Proposed Intent Language for Inclusion in H.B. 6002”.He further moved to authorize legislative staff to prepare and number the following bills for the 2020 Sixth Special Session:• House Bill 6002, “Supplemental Budget Balancing and Coronavirus Relief Appropriations” and • Another bill, yet to be numbered, for public education amendments.Staff shall include in these bills the adjustments and intent language presented today. In consultation with the Co-Chairs of the Executive Appropriations Committee, staff may make any technical changes necessary, including balancing between the General Fund and Education Fund, in order to balance the overall budget. |
| Rep. Carol Spackman Moss moved to increase the amount for the Utah State Board of Education (USBE) - Classroom Supplies and Enhancements - (incl. PPE) on Line 13 of the sheet entitled, "Funding Option List - Coronavirus Relief Fund" from $15 million to $20 million. |
| Rep. Carol Spackman Moss spoke to her motion. |
| Jonathan Ball asked Rep. Carol Spackman Moss if her substitute motion is to adopt the underlying motion and add $5 million to Line 13. Rep. Carol Spackman Moss responded in the affirmative. |
| Rep. Last spoke against the substitute motion. |
| Rep. Carol Spackman Moss summed her motion. |
| Chair Stevenson commented on Rep. Carol Spackman Moss' motion. |
| Rep. Carol Spackman Moss' substitute motion failed with a vote 8-12-0. | |||
| Yeas - 8 | Nays-12 | Abs-0 | |
| Sen. L. Escamilla Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Sen. K. Mayne Rep. C. Moss Rep. A. Romero | Sen. J. Adams Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Rep. B. Last Sen. A. Millner Rep. J. Moss Rep. V. Peterson Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| Rep. Last's original motion passed with a vote 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| MOTION: President Adams moved to direct the Office of the Legislative Fiscal Analyst that when calculating the cost of the state guarantee for the Voted and Board Local Levy Programs in preparation for the FY 2022 budget, that if the state cost is less than the amount appropriated for FY 2021 that the state fund savings not be used to offset FY 2022 student enrollment growth costs but be held as available funds for further equalization efforts through the Voted and Board Local Levy Programs as the Legislature may designate during the 2021 General Session. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| 6. Fiscal Health Check-up: |
| a. Debt Update |
| Brian Wikle, Financial Analyst, LFA, discussed Chart 1: General Obligation Debt and Debt Service on page four of the Issue Brief. |
| 6-Issue Brief - 2020 Interim - Debt and Debt Service Overview |
| b. Preliminary Revenues and Expenditures |
| Brian Wikle discussed the Expenditure and Revenue Tabs on the Fiscal Health Dashboard. |
| Speaker Wilson asked clarifying questions about the Expenditures for Medicaid. Brian Wikle and Jonathan Ball responded. |
| Sen. Hemmert asked how much of the increase in Medicaid could be attributed to Medicaid expansion. Jonathan Ball responded. |
| 7. Other Items/Adjourn |
| Chair Stevenson called attention to a written report, "Excess Expendable Receipts Report, August 2020." |
| 7-Excess Expendable Receipts Report, August 2020 |
| Chair Stevenson thanked LFA staff for their hard work over the last 18 months. |
| MOTION: Rep. Last moved to adjourn. The motion passed with a vote of 20-0-0. | |||
| Yeas - 20 | Nays-0 | Abs-0 | |
| Sen. J. Adams Sen. L. Escamilla Rep. F. Gibson Sen. D. Hemmert Sen. D. Ipson Sen. J. Iwamoto Rep. B. King Sen. D. Kitchen Rep. K. Kwan Rep. B. Last Sen. K. Mayne Sen. A. Millner Rep. C. Moss Rep. J. Moss Rep. V. Peterson Rep. A. Romero Rep. M. Schultz Sen. J. Stevenson Sen. E. Vickers Rep. B. Wilson |
| Chair Stevenson adjourned the meeting at 1:10 p.m. |