Legislature(1993 - 1994)
1993-02-03 House Journal
Full Journal pdf1993-02-03 House Journal Page 0216 HB 124 HOUSE BILL NO. 124 by the House Rules Committee by request of the Governor, entitled: "An Act relating to grants to municipalities, named recipients, and unincorporated communities; establishing capital project matching grant programs for municipalities and unincorporated communities; establishing a local share requirement for capital project grants to municipalities, named recipients, and unincorporated communities; and providing for an effective date." was read the first time and referred to the Community & Regional Affairs, State Affairs and Finance Committees. The following fiscal notes apply to HB 124: Fiscal note, Dept. of Administration, 2/3/93 Fiscal notes (2), Dept. of Community & Regional Affairs, 2/3/93 Zero fiscal note, Dept. of Commerce & Economic Development, 2/3/93 Zero fiscal note, Dept. of Environmental Conservation, 2/3/93 Zero fiscal note, Dept. of Labor, 2/3/93 The Governor's transmittal letter, dated February 3, 1993, appears below: "Dear Speaker Barnes: In accordance with art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill establishing capital project matching grant programs for municipalities and unincorporated communities, and establishing local share requirements for other capital project grants to municipalities, named recipients, and unincorporated communities. The capital project matching grant programs and the local share requirements for other capital project grants have two main objectives. One objective is to encourage a sense of local ownership in capital projects by requiring municipalities, unincorporated communities, and named grant recipients to participate financially in them. This local 1993-02-03 House Journal Page 0217 HB 124 participation will help grantees to determine their highest priorities and help ensure that only the most important and cost-effective projects are undertaken. The second objective is to leverage the use of state money in the financing of capital projects, which will be a particularly important policy to adopt given the expected decline of state revenue in the future. In addition, the new capital project matching grant programs for municipalities and unincorporated communities provide an orderly and thoughtful planning and review process that involves local communities, the executive branch, and the legislature. There is a distinction between the new capital project matching grant programs and the new local share requirements for other capital project grants. It is intended that the new matching grant programs be used for relatively small capital projects proposed by municipalities and unincorporated communities, and that the new local match requirements for municipalities, named recipients, and unincorporated communities apply to other types of larger capital projects funded through grants made under AS 37.05.315 - 37.05.317. The focus of this bill is the proposed new capital project matching grant programs in AS37.06. Much like a block grant program, these programs would establish two funds (one with individual accounts for all municipalities and one with individual accounts for all unincorporated communities participating in the state's revenue-sharing program) from which small-scale capital projects can be funded by project-specific appropriations. (I am also transmitting a companion bill making appropriations to the two funds, as the first step in this funding process.) The projects would be selected and prioritized at the local level, well before each year's legislative session, and a prioritized project list would be submitted to the governor for inclusion in the capital improvements program. The governor would provide the legislature with reasons for any differences between the local list and the capital improvements program submitted to the legislature. In each case, the projects funded by the appropriations would be subject to local financial match requirements, including allowances for in-kind matching contributions. In addition, under the bill the same local match requirements and in-kind allowances would be extended to all grants currently made to municipalities, named recipients, and unincorporated communities under AS37.05.315-37.05.317. 1993-02-03 House Journal Page 0218 HB 124 My Office of Management and Budget has prepared a section-by- section description of the bill which is available for your review. The net effect of the bill is that all capital project grants to municipali- ties, named recipients, and unincorporated communities would be subject to local financial match requirements, regardless of whether they are funded through the capital project matching grant programs established by this bill or under the existing provisions of AS37.05.315 - 37.05.317 as amended by this bill. This bill is important because it expands the role of local communities in determining the capital improvements and capital projects that will best suit their local needs. It is also important because of the precedent it sets in requiring a local stake in capital projects and because it allows limited state financial resources to support a greater number of needed capital projects than otherwise would be possible. For all of these reasons, I seek and encourage your support for this bill. Sincerely, /s/ Walter J. Hickel Governor"