Legislature(2001 - 2002)
05/02/2002 04:21 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 528
"An Act relating to programs of state reimbursement for
debt payments for certain capital projects; and
providing for an effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft 22-LS1742\P, dated 5/2/02 (copy on
file).
Co-Chair Williams MOVED to ADOPT work draft 22-LS1742\P,
dated 5/2/02. There being NO OBJECTION, it was so ordered.
Co-Chair Mulder explained that funding for the Juneau museum
project was not included because preliminary planning (land
purchase and design) cannot be bonded.
Representative Hudson noted that the Juneau Joint Readiness
Center project had not been included in any legislation to
date. The project would involve the Department of Military
and Veterans Affairs and the University of Alaska,
Southeast. He emphasized the importance of the project and
noted that the Armory needs to be relocated. Some federal
funds have been appropriated, but the project needs $5.4
million dollars. This is the number one long-range
construction priority of the Army National Guard and the
University of Alaska, Southeast. Co-Chair Mulder expressed
sympathy for the project, but emphasized the need to "hold
the lid on the bond package".
Co-Chair Mulder explained that the Metlakatla light and
power project was included in order to protect their
solvency. If the project were to go into receivership they
would not be eligible for other federal assistance. The
appropriation would not cover the full cost of the project,
but it would provide enough assistance to meet their
obligation. The university indicated that the university
center could be done through the reimbursement methodology,
which reduced the need on the capital budget.
Representative Davies noted that the $2 million dollar
project for the Fairbanks campus needs to occur this summer
and asked if it were possible to place the project in the
regular capital budget in order to meet the construction
schedule. Co-Chair Mulder indicated that he would not
object, but emphasized his concern with moving items from
the deferred maintenance bond legislation.
Representative Carl Moses MOVED to ADOPT AMEND: page 4,
line 21: delete "Lake and Peninsula" and insert "Aleutians
East". There being NO OBJECTION, it was so ordered.
Representative Hudson reiterated his desire to see funding
for the Juneau Readiness Center.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA explained that the university's bonding capacity
would be used to secure funding for the Juneau Readiness
Center. The debt service would be paid by the state under
the debt service account. She felt that the project would
fit under the educational requirements for bonding or
borrowing capacity. She expressed some concern that the
University's bonding capacity is limited to projects that do
not exceed a million dollars in debt service. She felt that
an adjustment would needed in statutory language to adjust
the limit.
Representative Hudson MOVED to ADOPT $5,470 million dollars
for the Juneau Readiness Center. There being NO OBJECTION,
it was so ordered.
Representative John Davies MOVED to report CSHB 528 (FIN)
out of Committee with the accompanying fiscal note. There
being NO OBJECTION, it was so ordered.
CSHB 528 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
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