Legislature(1997 - 1998)
02/04/1998 01:45 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 327
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
DEPARTMENT OF REVENUE
Co-Chair Hanley referred to the proposed $492,800 thousand
dollar appropriation for a Telecommunicaitons Disaster
Recovery System.
PETER BUSHRE, CHIEF FINANCIAL INVESTMENT OFFICER, DEPARTMENT
OF REVENUE explained that the system would take advantage of
new fiber optic cable links between Juneau and the lower 48
states for high-speed transmission of financial data. He
emphasized that the Alaska Permanent Fund Corporation needs
a way to continue financial activity if Juneau is cutoff
from the rest of the nation. He explained that data would
be transmitted, daily to a storage site in Seattle that
could be used if communications are not available from
Juneau. He added that the Department of Revenue's Treasury
Division could also use the cable link.
Co-Chair Hanley clarified that funding would be used to
lease cable space. Mr. Bushre added that funding would
also be used to purchase equipment and engineer the hookup.
In response to a question by Representative Davies, Mr.
Bushre observed that the capital expense would be recovered
in six years. After the capital expense there would be and
additional operating cost of $166 thousand dollars for the
first year. The annual cost for subsequent years would be
$46 thousand dollars.
BILL JOHNSON, INFORMATION TECHNOLOGY SPECIALIST, ALASKA
PERMANENT FUND CORPORATION explained that GCI is laying the
cable this summer. The Department of Revenue approached GCI
for an estimation.
Representative Martin referred to the $7.7 million dollar
appropriation for low income housing weatherization.
JOHN BITNEY, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE provided members with a
handout on the weatherzation program (copy on file). He
noted that total authorizations since 1979 amount to
$90,784,168 million dollars. He observed that 27,642 homes
were weatherized during this time. He emphasized that the
program is ongoing. He added that the program also provides
safety improvements.
Co-Chair Hanley asked if Alaska Housing Finance Corporation
(AHFC) has a year 2000 computer problem. (Some computer
systems were not programmed to go beyond the year 1999.)
Mr. Bitney noted that their operating request includes
funding to address the year 2000 problem. He added that
their software is outdated.
In response to a question by Co-Chair Hanley, Mr. Bitney
noted that this is the first year that the Senior Housing
Development program appropriation has identified specific
projects. Prior year appropriations were made as a lump
sum. He observed that grants were ranked and scored.
Representative Martin referred to past grants for the Alaska
Craftsman and Home Energy Rating Programs. Mr. Bitney noted
that it is the Corporation's intent to release FY 98 funds
through competitive bids. The Corporation is pursuing
billings from a prior grantee. That grantee cannot
participate in any Request for Proposals (RFP) or grants
that the Corporation makes available. Two designated
grants, for $300 thousand dollars each, were vetoed in FY
98. An additional grant of $600 thousand dollars was
appropriated.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION explained that Congress did not
reauthorize the Intermodal Surface Transportation Efficiency
Act (ISTEA). Instead, they extended ISTEA for an
additional 6 months. Approximately $100 million dollars
will be available to the state of Alaska until May 1, 1998.
If no congressional action is taken, the State may get the
unobligated balance of $95 million dollars. If Congress
passes legislation the state of Alaska could receive
approximately $300 million dollars.
Co-Chair Hanley summarized that under the worse case
scenario the State would receive approximately the same
amount as FY 98.
In response to a question by Representative Davies, Ms.
Slagle clarified that there is a 10 percent state match
requirement for ISTEA. General fund dollars are also needed
for non-participating expenses that the federal government
does not cover.
Co-Chair Hanley referred to the proposed United States Army
Corps of Engineers projects. He asked if the State received
authorization for the current fiscal year beyond what was
appropriated. Ms. Slagle noted that there was an over
authorization. Co-Chair Hanley asked for further
information regarding the FY 98 and FY 99 levels.
Ms. Slagle explained that the requested level of
authorization for the Department of Transportation and
Public Facilities' equipment fleet is the same as for
previous years. She noted that light duty vehicles are
purchased every two years to reduce administrative costs.
She added that the purchase of white, light duty vehicles
has lowered costs and allowed a higher resale price.
Co-Chair Hanley referred to the proposed International
Airport Revenue projects. He noted that there is proposed
legislation to increase the bond capacity at the (Anchorage)
airport. He questioned if the appropriation should be
included in the legislation and the budget.
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR noted that the Administration
is still addressing the issue.
Ms. Slagle pointed out that the project was presented to the
air carriers as a bonding package. She noted that the air
carriers would have to be contacted if the legislation is
not enacted.
Representative Martin requested back-up material regarding
the bonding package. Ms. Slagle noted that increased
landing and terminal rental fees would pay the debt service.
Co-Chair Hanley asked for a break down of appropriations not
related to the terminal expansion project. He assured Ms.
Slagle that the Conference Committee can address the fiscal
note if the legislation is enacted.
Co-Chair Hanley asked for a list of projects with additional
authorization under the U.S, Army Corps of Engineers that
were turned down last year. He questioned if the list is
prioritized and whether it is an estimate.
UNIVERSITY OF ALASKA
MARY LOU BURTON, DIRECTOR, BUDGET DEVELOPMENT, UNIVERSITY OF
ALASKA clarified that the appropriation for deferred
maintained is the University's number one priority. The
other two projects do not require general fund. The Small
Business Development program would be funded through Alaska
Industrial Development and Export Authority (AIDEA).
Physical Education Facility Design and Construction for the
Juneau Campus would be funded through university receipts.
Receipt authority would be used to seek grants or loans.
The facility would be repaid through user fees.
DEPARTMENT OF PUBLIC SAFETY
Co-Chair Hanley referred to the proposed $600 thousand
dollar appropriation for APSIN redesign and implementation.
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION noted that the
project would use a combination of federal and state
funding. He noted that they do not have a year 2000
problem. He stressed that the project would replace an
application that was written in 1984.
Co-Chair Hanley referred to the proposed $700 thousand
dollar appropriation for the Academy Expansion. He
clarified that the appropriation is in addition to the $1.4
million dollar appropriation for housing. The total cost is
approximately $2.1 million dollars.
In response to a question by Representative Mulder, Mr.
Bischoff explained that the Academy is funded through the
operating budget.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,
OFFICE OF THE GOVERNOR observed that the Administration
submitted a FY 98 capital request for construction of a
women's wing. The appropriation was not approved.
Co-Chair Therriault asked for back-up on the Academy's FY 98
request.
(Tape Change, HFC 98 - 17, Side 2)
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