Legislature(2001 - 2002)
03/14/2001 01:30 PM Senate CRA
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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
SB 109-UNINCORP. COMMUNITY MATCHING GRANTS
CHAIRMAN TORGERSON said this is another bill he introduced several
years ago. He noted that the fiscal note on this bill has grown
considerably.
MARY JACKSON, staff for Senator Torgerson, explained that current
statute provides $25,000 for communities in the unincorporated
areas under the Unincorporated Community Capital Matching Grant
Program. SB 109 extends the opportunity to receive funds to areas
in the organized borough as well.
A list of affected communities and a fiscal note are in the
committee packets.
CHAIRMAN TORGERSON explained to Senator Phillips that this bill
addresses his question that was posed when SB 104 was under
discussion. According to statute, unincorporated areas within a
borough are not entitled to the money but if you're outside the
borough, you are entitled. "I've always thought that was unfair and
I still do." This corrects the inequity and, at the same time,
generates a large fiscal note.
WALT WREDE, manager for the Lake and Peninsula Borough, said they
strongly support SB 109, which addresses inequities contained in
the State Capital Matching Grant Program. This inequity was
probably an oversight when the legislature adopted the program but
it does discriminate against unorganized communities located in
organized boroughs and therefore is a disincentive for forming
boroughs.
Eleven of the seventeen communities in the Lake and Peninsula
Borough are unincorporated so aren't eligible for the $25,000
matching funds. Therefore, the borough splits a $25,000 to $40,000
grant that they receive eleven ways, which gives each community
much less than $25,000. There are about 70 communities statewide
that are in the same situation.
CHAIRMAN TORGERSON wasn't sure it was an oversight but agreed that
it did create an inequity. The money helps small communities
considerably.
SENATOR AUSTERMAN asked who makes the final determination as to
which communities qualify for the funds.
CHAIRMAN TORGERSON said he believes the assemblies must pass a
resolution to officially recognize an unincorporated community that
has less than 2,500, and then a non-profit community association
must be formed. If there's a competing interest then the borough
assembly must nominate the one they want to be the non-profit
entity. He asked Bill Rolfzen to confirm the above.
BILL ROLFZEN from the Department of Community & Economic
Development said that currently there is a definition in regulation
for association unit for unincorporated communities in the
unorganized borough and the department would need to make a change
in regulation to fit organized boroughs or unified municipalities.
CHAIRMAN TORGERSON asked whether his procedural explanation was
accurate.
MR. ROLFZEN didn't disagree.
SENATOR AUSTERMAN asked, "Is this your list?"
CHAIRMAN TORGERSON said it was the committees' but it came from the
department.
UNIDENTIFIED WOMAN: "It was jointly developed."
MR. ROLFZEN said it was from a previous bill that was introduced.
SENATOR PHILLIPS suggested not funding the $2 million but "taking
it out of the existing pot which would probably reduce every body
else's per share."
CHAIRMAN TORGERSON said that was "looked at" at one time. There are
some advantages to an unorganized area being in a borough. "This is
a Finance Committee issue more than our issue."
SENATOR PHILLIPS moved SB 109 from committee. There were no
objections.
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