Legislature(1993 - 1994)
04/02/1993 02:10 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 55 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. CS HB 55 (FIN) was reported out of Committee with a "do pass" recommendation. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, indicated that Section #13 is the same as that proposed by the Governor. The Committee adopted Section #13. Mr. Greany referenced Section #20 which had previously been held open. He noted the language addressing the surcharge had been incorporated. The Committee adopted Section #20. Mr. Greany noted Section #21 resulted from a discussion between the 470 funds and their relation to the Mitigation Account. 1 Section (a) indicates money from the Mitigation Account appropriated to the 470 fund. Section (b) justifies the amount from that account made to the Storage Tank Assistance Fund. Section (c) appropriates $100 thousand dollars for oil spill evaluation in the Yukon-Koyukuk school district. Representative Therriault asked why the ferry expenditure was not included in Section #21. Mr. Greany replied, Section #22 (b) indicates the $7.5 million dollars to the Vessel Replacement Fund for the oil ferry originating from the 470 fund. Representative Hanley understood that all appropriations originated from the Mitigation Account. Representative Hanley recommended adding a new Section (d). Mr. Greany clarified that Section #22 (b) was moved into Section #21 and that the funding source for the oil ferry would be the Mitigation Account. Representative Martin MOVED to change the language in Section #22 (b), Page 5, Line 10, by deleting "the refurbishment or" and also to delete the "s" on the word "vessels". JIM AYERS, SYSTEMS DIRECTOR, ALASKA MARINE HIGHWAY SYSTEM, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated AMHS would not object to the recommendation. Representative Brown MOVED to make the verbiage match the language in the sentence, Page 5, Line 10, deleting "have" and inserting "has". There being NO OBJECTION, it was amended. There being NO OBJECTION to the amendment, it was adopted. Co-Chair MacLean asked for further clarification of the amount requested for total ferry system funding. Mr. Ayers stated that the total cost of the vessel would be $85 million dollars. Mr. Ayers understood the State's portion of funding would be $15 million dollars. He presented a chart indicating the distribution: .5 FY 92 (direct) 7.5 FY 93 VRF 7.0 FY 94 VRF 15.0 Total "470" Funds Co-Chair MacLean MOVED to amend Page 5, Line 8 to insert 2 "$7,000,000" million dollars and delete "$7,500,00". Mr. Ayers reiterated that the total estimated cost of the vessel would be $85 million dollars, a combination of federal and state funds. $60 Federal FY 94 $ 5 Match $15 470 Fund $ 5 other fund $85 million dollars total funding strategy There being NO OBJECTION to the motion, it was so ordered. Representative Brown MOVED to delete on Page 4, Line 29, the language "the following projects" and insert "contaminated site assessment"; Page 4, Line 31 delete "oil spill evaluation for"; Page 5, LIne 2 delete "contaminated site assessment". There being NO OBJECTION, it was incorporated. Representative Brown pointed out that Section 23 is not reflected in the new Section 35. Co-Chair MacLean stated the amount was not changed. ________________________________ Co-Chair Larson referenced Attachment #1, the Formula Funded Programs, Senior Citizens Tax Relief. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, explained that if a zero appropriation was funded for the FY 94 budget, it would affect the municipalities. In the past, the municipalities have been funded at a twenty percent level. FY 94 budget would fund them at a zero percent level leaving the municipalities responsible for the program's full coverage. The municipalities would be left with the $2.8 million dollars fee. He added, the amount funded in FY 93 was $2.8 million dollars. The Renters Rebate amounted to $820 thousand dollars. Co-Chair Larson MOVED to add $2 million dollars to the Senior Citizens Tax Relief Fund. Representative Brown MOVED to amend that amount to $3 million dollars. Representative Parnell OBJECTED. A roll call was taken on the MOTION to amend. 3 IN FAVOR: Hoffman, Navarre, Brown, Grussendorf. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, Larson, MacLean. The MOTION FAILED, (4-7). A roll call was taken on the MOTION to add $2 million dollars. Representative Parnell OBJECTED. IN FAVOR: Martin, Navarre, Brown, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Parnell, Therriault. The MOTION PASSED, (9-2). Co-Chair MacLean MOVED to report CS HB 55 (FIN) out of Committee with individual recommendations. Representative Hoffman noted that the title would need to be changed to include the formula funded programs. Mr. Greany replied, the language as drafted would include loan expansion and capitalization of funds. Representative Navarre OBJECTED to moving the bill from Committee. (Tape Change, HFC 93-90, Side 2). Representative Navarre noted his disappointment with the lack of cooperation between the majority and minority members in the House Finance Committee during the budget discussion. He recommended laying ground rules on policy and budget caps and asked to be included as part of the process. A roll call was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. OPPOSED: Navarre, Brown, Grussendorf, Hoffman. The MOTION PASSED, (7-4).
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