Legislature(1999 - 2000)
04/27/1999 06:50 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
HOUSE BILL NO. 52
"An Act making and amending capital appropriations
and reappropriations and capitalizing funds;
and providing for an effective date."
DEPARTMENT OF PUBLIC SAFETY
Aircraft and Vessel Repair and Maintenance $1,000,000
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, stated that the
request would address 15 major vessels.
Trooper Law Enforcement Equipment $350,000
Mr. Bischoff stated that the request would be used to
purchase equipment. Co-Chair Therriault asked if the
request is an on-going and standard amount. Mr. Bischoff
noted that the amount fluctuates a little from year to year.
Representative J. Davies asked if the amount was adequate.
Mr. Bischoff stated that the Department believed it was
adequate. He stated that the Department would support the
Governor's budget.
Vice-Chair Bunde spoke to frustration voiced by constituents
regarding funding continual maintenance repair. He
suggested that air taxi business would be interested in this
business.
Fish and Wildlife Protection - Statewide Equipment
$250,000
Mr. Bischoff noted that the Division of Fish and Wildlife
Protection has equipment on their skiffs that need
replacing. Co-Chair Therriault asked if surplus equipment
was disposed of through State auctions. Mr. Bischoff stated
that the items would be surplused when they had reached
their useful life.
Breath Alcohol Equipment Replacement $139,500
Mr. Bischoff noted that the request was federal funding for
alcohol test equipment. Approximately 5,000 DWI and teats
are administered each year. This is an item that is used to
test drugs and alcohol and the equipment is no longer
effective. The request would fund approximately 23 alcohol
testing devises.
Blood Alcohol Test Equipment $50,000
Mr. Bischoff noted that this item would replace 20-year-old
equipment in the crime lab used to test blood for drugs and
alcohol.
Fish and Wildlife Protection-Enforcement Replacement Vessels
$537,500
Mr. Bischoff stated that this would purchase a 50-foot
vessel. The past Legislature authorized the sale of several
vessels. The Department has applied for a lapse on funds.
Co-Chair Therriault asked if the Department had the means of
selling the old equipment. Mr. Bischoff replied that the
department comes to the legislature for approval to sell
vessels.
Alaska Public Safety Information Network - Upgrade
$1,389,000
Mr. Bischoff noted that this request would require a 10%
state match to federal dollars for software. Current
software is 15 years old and needs to be updated.
Representative Austerman asked if it was incorporated into
the operational budget. Mr. Bischoff affirmed that the
network upgrade is incorporated into the legacy system.
Representative Foster asked about aircraft accidents. Mr.
Bischoff replied that they do not have the accident
statistics. There have been no fatalities this year. There
are a number of old Cessna's and super-cubs.
Representative Foster asked what provisions are made for
injured or deceased troopers and their families. Mr.
Bischoff believed that would be addressed through Title 39.
He referred to a helicopter crash which occurred in the
spring of 1999. Risk Management came up with replacement
money. The Risk Management Fund is a separate budget.
DEPARTMENT OF REVENUE
Child Support Distribution and Disbursement System
$1,700,000
JOHN MALLONEE, (TESTIFIED VIA TELECONFERENCE), ASSISTANT
DIRECTOR, CHILD SUPPORT ENFORCEMENT DIVISION (CSED),
DEPARTMENT OF REVENUE observed that the appropriation would
bring CSED into conformity with federal law. The funding
would be 80% federal funds with 20% state matching funds.
It would allow implementation of the new system and if it is
not completed by October 1, 1999 there will be a penalty to
the state. The request would bring the system up to date.
Representative J. Davies asked if the software would be Y2K
compliant. Mr. Mallonee stated that it would.
Child Support Personal Computer Replacement $70,000
Mr. Mallonee noted that the request would replace some of
the older computers. It would not be economical to repair
the computers. They need to be replaced. There are
approximately 260 computer devices, which have been
purchased over the past 6 years, and they need to be
replaced.
Vice-Chair Bunde asked why do they need to be replaced. Mr.
Mallonee replied that almost all the work of the Division is
done on computers and each computer is attached to the
mainframe system. Computers in their sixth year are
beginning to fail.
PF MIS Consolidated Reporting and Data Warehouse
$535,000
PETR BUSCHRE, CHIEF FINANCIAL OFFICIERS, PERMANENT FUND
CORPORATION, DEPARTMENT OF REVENUE commented that the
request for the data warehouse would overlay unrelated
programs that would provide needed reports for specific
systems. Additionally, it would provide web site
information. Currently, the fund has three unrelated
management systems. The reports are done manually.
PF Environmental Systems Replacement and Upgrade
$355,000
Mr. Bushre noted that request would provide for a building
generator. The Gold Belt building was built in 1921 and it
does not have the capacity to feed the computer system. It
is essential that there be a power supply that cannot be
interrupted. The worse scenario is that the computers go
down and the cooling system goes down. That can cause
serious problems with the equipment.
Representative Williams asked how old the generators were.
Mr. Bushre stated that they were purchased in 1981.
Representative J. Davies asked if the system starts up
automatically. Mr. Bushre stated that the current one does
not start up automatically. The current system has an
automatic telephone system for both the computers and the
cooling system. The equipment belongs to the State. He
stated that these funds are corporate receipts.
Vice-Chair Bunde suggested that these funds should be listed
in the general fund category.
AHFC Supplemental Housing Development Program
$9,000,000
DAN FAUSKE, EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE pointed out that the
total fund request is for $38 million dollars.
Mr. Fauske observed that staff developed the budget. The
Board has approved the proposed budget. Many of the projects
are similar to those in the past. It would be an issuance of
bond for the State for renovation and deferred maintenance.
LES CAMPBEL, BUDGET OFFICIER, AHFC, DEPARTMENT OF REVENUE
spoke to the capital project for the supplemental housing
development project. The request is in the amount of $9
million dollars. Funds can be used for on site water and
sewer needs by the regional housing authorities. The request
would construct 340 affordable homes.
Co-Chair Therriault asked if it would be restricted to on
sight. Mr. Campbell stated that it would be used for the
connection and need to get the house up to system.
AHFC Low Income Weatherization $5,400,000
Mr. Campbell spoke to the request, which would upgrade
existing homes. It would provide a better standard of living
for the low-income persons and improve heating efficiency.
The corporate funds will be used for health and safety.
Co-Chair Therriault asked, if the total amount was not
available, would the areas be pro rated. Mr. Campbell
replied that it would.
AHFC Senior Citizens Housing Development Program
$4,000,000
Mr. Campbell discussed the project and noted that funding
would be used to support the fastest growing population in
the state, senior housing. The program targets the housing
needs of the low-income seniors.
Representative G. Davis asked if it was a grant program.
Mr. Campbell stated that it is. Also, there are awards that
are made to that program. In response to Representative
Austerman, Mr. Campbell stated that these facilities are new
units.
Representative J. Davies asked how the operation was
handled. Mr. Campbell replied that the seniors pay a portion
of the rent. These are privately held units. The funding is
a combination of different funding and the operation of the
units is up to the developer.
Co-Chair Therriault asked if "other" funding is always
available for these projects.
JOHN BITNEY, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, explained that all the
projects could apply for other funds, however, those
programs have strings attached that certain units have to be
set aside for specifics. These projects do not have these
strings. Some units are high priced. In putting together
those grant applications are often contain a common area
development. That common area would be used to build more
units.
In response to Co-Chair Therriault, Mr. Bitney spoke to the
State involvement.
(Tape Change HFC 99-108, Side 2).
Mr. Bitney added that there would be additional units built
if the need exists.
Discussion followed among Committee members regarding the
cost associated with the various building sites and how
those costs differed. Mr. Campbell noted that all the units
would be fixed for the mobility impaired. Eventually, these
would become the Senior Center for the areas they are built.
Mr. Campbell noted that the supplemental housing do not
require a match. The federal dollars would be there without
this money.
Vice-Chair Bunde asked who decides if this is the best use
of State money. Mr. Fauske replied that these are
competitive bids; the Senior Housing Authority submits some
of the plans. Vice-Chair Bunde reiterated his concern
regarding the criteria used to decide what is built. Mr.
Bitney noted that the allowance for the cost could be
authorized and would be used for the common area. Mr. Bitney
continued that the common area would serve functions that
the seniors need to be able to stay in their homes.
AHFC Parkview Manor Renovation, Phase II $3,000,000
WES WIER, DIRECTOR, AHFC, DEPARTMENT OF REVENUE explained
that this request would provide funding for the Parkview
Manor.
Co-Chair Therriault asked how much of this would be for the
Gateway learning center. Mr. Wier replied that this is a new
program and would be a minor portion of the requested
funding.
Representative Austerman asked who owns Parkview Manor. Mr.
Wier stated that it was owned by AHFC in partnership with
the federal Housing and Urban Development (HUD) agency.
Representative Austerman asked why AHFC was involved in the
learning center. Mr. Wier replied that funding resulted from
a number of grants. A majority of Welfare to Work programs
penalize individuals returning to work. The Financial Self
Sufficiency Program places benefits into a program, which
are paid unrestricted to the individual. The Corporation has
a unique position. The program is run off a HUD grant. The
HUD money is used to pay for the program.
Representative Austerman requested a list of all programs
involved in Welfare to Work.
Co-Chair Mulder asked if the people living in Parkview Manor
pay rent. Mr. Wier replied that the program requires payment
of 30% of the adjusted gross income and goes into the fund
for the cost of operating the facility. The rents do not
come close to the cost of operating the facilities. He
observed that HUD helps with meeting these needs.
Representative Austerman asked if there was an Anchorage
Housing Authority. Mr. Wier stated that there is a Cook
Inlet Housing Authority, which serves that function. There
is no component that operates similar to AHFC. There is
housing to 14 places in the State.
Co-Chair Mulder asked how much of the AHFC's budget is HUD
funded. Mr. Wier replied that there is $3.3 million dollars
in the capital budget request. Most projects receive some
HUD funding. He observed that AHFC, through a number of
programs, provides grants and low-income loans and support.
The communities can go to HUD themselves for the funding.
There is overlap between some of the agencies.
AHFC Mountain View Senior Units, Phase II $3,917,000
Mr. Wier noted that Mountain View is the second phase of a
project. This project would be a major renovation of the
facility and will tie together the previous phases. The
facility is at full capacity.
AHFC Senior and Statewide Deferred Maintenance and
Renovation $4,000,000
Mr. Wier spoke to the request, which is an annual request to
prioritize statewide maintenance compensation. This is an
attempt of AHFC to protect their investments. This is an
implementation of the plan on an annual basis. The request
would include cost of staff and implementation of the
projects. Design would be included in the priority items
staff funding and charge-back to the overall staff function.
Mr. Campbell stated that there are 345 positions within
AHFC.
AHFC Riverbend Multi-Purpose Building $500,000
Mr. Wier stated that the request would provide for a multi-
purpose center in that project. Currently, AHFC is in
negotiation with the landowner. The request would provide
funding for the building. The funds are partially from a
Court settlement.
Vice-Chair Bunde asked if this was part of the original
plan. Mr. Wier stated that this was part of the original
plan. Co-Chair Therriault asked if the settlement money went
into shoring up the riverbank. Mr. Wier stated that was
correct.
AHFC/HUD Comprehensive Grant Program $2,800,000
Mr. Wier commented that the HUD share has been declining.
Five projects have been targeted. These would provide for
management improvements. The money would be placed into hard
costs in addressing federal mandates.
AHFC Public Housing Environmental Cleanup and Abatement
$303,000
Mr. Wier stated that the request would address the asbestos
clean up at the Geneva Woods housing project. Co-Chair
Therriault asked if this would remove asbestos materials
that are not problematic. Mr. Wier stated that this
represents a severe problem to the maintenance people.
AHFC Central Terrace/Fairmount, Phase III $724,000
Mr. Wier stated that this would be Phase 3 to renovate
facilities in Anchorage. It is expensive to maintain
scattered sites. The intent is to sell some of those sites.
AHFC Southall Manor Renovation $4,715,000
Mr. Wier stated that this was the last of the major
facilities to be renovated. This is a 40-unit facility and
it would be totally renovated in a single phase. Mr. Wier
noted that this would coincide with the work done on the
Golden Towers. These individuals would have the option to
continue living at the Golden Towers or move back to the
Southall Manor site.
Vice-Chair Bunde asked how large the units are. Mr. Wier
replied that they are around 450 to 500 square ft. Co-Chair
Therriault noted that the original facility was poorly
constructed. There are a number of units that are in dire
need of repair.
AHFC Housing and Urban Development Federal HOME Grant
$3,750,000
Mr. Campbell observed that the appropriation would allow
AHFC to help low income families to have home ownership
opportunities. The funds are used to support the development
of supportable housing. He listed ways the funds could be
used. This is a statewide grant, with the exception of
Anchorage.
AHFC Federal and Other Competitive Grants $2,750,000
Mr. Campbell stated that the program would target the low
income and special needs group.
AHFC Competitive Grants for Public Housing $1,000,000
Mr. Campbell noted that the request would be used for public
housing to low income families and disabled people. Grant
funds within this category would be used to prevent
substance abuse and crime.
AHFC Energy Efficiency Monitoring Research $350,000
Mr. Campbell noted that the request would be used for grants
and information projects of information to the homebuilders
associations. The industry has asked for research throughout
the State. These funds would be used to offer reduced
interest rates for remodeling homes. The funds would be used
to conduct research analysis.
Co-Chair Therriault pointed out that State law applies to
single family dwelling. Mr. Bitney replied that the
appropriation would be for single family to four-plex family
dwelling. Mr. Wier stated that HUD and ASHA built a number
of these facilities and they contained 4" walls. In the
renovation, all 5 star technology is being incorporated.
Co-Chair Mulder asked how much arbitrage federal money is
available to AHFC this year. Mr. Fauske replied that there
is a potential for $70 million dollars. Funding is for
programs with a reasonable anticipation of loan repayment.
The bonds are used for housing. The total amount of loans
anticipated for this year is approximately $867 million
dollars. Mr. Bitney noted that there were approximately 1000
loans last year. Mr. Bitney listed all the projects that the
loans can be used for. He emphasized that the money needs to
be used for loans and not grants and added that the key
language is reasonable expectation of payment.
Mr. Fauske stated that AHFC has tried to target the funnel
activity. Now they are trying to buy pieces of the interest.
He stated that in the loan capacity, it is used to fund low-
income housing. They try not to pass the cost on to the
consumer.
(Tape Change, HFC 99 - 109, Side 1).
Mr. Fauske stated that AHFC is trying to encourage more
private developing.
Representative Austerman believed that the Kodiak Senior
housing facility was privately built. Mr. Bitney stated that
was correct. Co-Chair Mulder stated that the private sector
could usually do it cheaper than the State does.
AHFC Builder and Rater Education Program $300,000
Mr. Campbell spoke to the request that would allow AHFC to
provide techniques that target a large consistency. He
observed that AHFC remains committed to its energy-rating
program. These costs would allow continued marketing for
home energy rating systems.
Vice-Chair Bunde asked if the $200 thousand dollars would go
to educating builders. Mr. Campbell noted that AHFC would
contract out for education classes. He stated that there
would not be a charge for the class. Vice-Chair Bunde
recommended that a charge be made for that service. Mr.
Fauske agreed that the issue of charging the homebuilder for
the information should be addressed in the future.
AHFC Homeless Assistance Program $450,000
Mr. Campbell stated that this program was established in
1993 to address emergency needs of homeless Alaskans. He
observed that AHFC is requesting funds that would be
matched. Mr. Bitney noted that the projects are ranked.
AHFC Beneficiary and Special Needs Housing $1,700,000
Mr. Campbell noted that this is also found in the Mental
Health bill and would provide funds for the trust
beneficiaries. This would authorize leverage with federal
funds. He observed that AHFC would administer these funds.
Representative J. Davies asked how this money is spent. Mr.
Campbell stated that this is an ongoing project with the
Department of Health and Social Services. Mr. Bitney stated
that the application process for these programs would all
occur at the same time. When the applications come in, they
can select funding from one or a combination of grant funds.
There are no other AHFC grants funds contained under the
total cost funds. Most of these would be loans. Grants would
be rewarded under one process.
Representative Kohring asked about the home assistance
program and where the dollars are directed. Mr. Campbell
replied that the programs are restricted and the criteria
must be followed. Services are ranked the highest rather
than salaries. Mr. Fauske acknowledged that there are
restrictions to these programs and that the dollars are
going to help the homeless rather than to the
administrators.
Co-Chair Mulder spoke to the leveraging of federal funds.
Mr. Fauske replied that one supplemental development grant
was $50 million dollars. Mr. Wier added that it shows just
short of $10 million dollars. Mr. Campbell added that the
federal funds for the operating budget are not shown. Mr.
Fauske stated that it is a good leverage according to the
dollar amount. He asked for consideration of the proposed
construction projects and the ongoing work with SB 360.
AHFC is taking care of its own facilities. He stressed the
need for on going maintenance and repair.
Vice-Chair Bunde observed that the self-supporting dorm at
UAA is receiving extra funding this year.
Representative Foster voiced appreciation for all the work
done in Bush Alaska by AHFC.
ALASKA COURT SYSTEM
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM
provided information regarding CIP projects for the Alaska
Court System.
Equipment for Completion of Computerized Case Management
System $1,300,000
Mr. Christensen explained that this project is divided into
three component parts. He noted that the Alaska Court System
has some labor intensive systems. The computer system will
provide tremendous benefits to the public and agency because
the public will be able to access court files over the
Internet. He noted that the second project would be for
videoconference equipment. He observed that this would allow
a reduction in travel for pretrial hearings. It would be a
pilot project in Anchorage, Juneau and Fairbanks. The third
project is for microfilming. They will film 150,000 cases.
He explained that turning microfilm back into paper is very
expensive. This will provide a digital disk at the same time
as items are microfilmed
Deferred Maintenance Projects $2,000,000
Mr. Christensen explained that the Alaska Court System has
$4 million dollars in deferred maintenance. There are 14
projects on the list. The request would fund the first 6
projects.
Court Security Projects $1,000,000
Mr. Christensen noted that the request would fund the first
year of a three-year project for court security. There has
been a drastic increase over the past 10 years. There are
ways to improve security. These would be stand-alone
projects that do not have a personnel cost.
Statewide Court Building Code/Energy Upgrade $400,000
Mr. Christensen observed that this is the second year of the
project. The project is not ADA compliant.
Co-Chair Therriault noted that the security projects would
be phased. Mr. Christiansen stated that other phases would
have personnel costs.
UNIVERSITY OF ALASKA
UAF-Tanana Valley College/ Hutchinson Career Center
Renovation $3,000,000
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA explained that the request is a joint project. The
two units have been cooperating since 1972. It would allow a
9-12 vocational education high school in the Tanana Valley.
The school district would bond for $14 million dollars. The
University of Alaska would be responsible for $7 million
dollars. Planning was funded last year. She reviewed the
project.
Vice-Chair Bunde spoke in support of the project. Co-Chair
Therriault stated that the money that the Governor has
requested is not enough. He added that they are attempting
to locate additional funding.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES was
available for questions.
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES provided members with a
hand out "Department of Transportation and Public
Facilities, Legislative Briefing (copy on file). He
explained that there are 300 projects. He provided a brief
overview. He noted that the philosophy of TEA-21 is similar
to ISTEA. He observed that the funding is tied to gas tax
receipts. One area that is different is the area of
discretionary funding. There would be more discretionary
program funding. He emphasized the importance of flexibility
to assure that there is sufficient match to federal funding.
He noted problems with the state structure for the match
requirement in FY99.
Mr. Parkan observed that the Governor's proposal to increase
the gas tax would cover half of the match requirement, $26
million dollars. He noted that Alaska currently charges only
.08 cents on a gallon. This is one of the lowest gas taxes
in the nation. In response to a question by Vice-Chair
Bunde, Mr. Parkan noted that legislation would create a
statutory dedication that would deposit gas tax funds into a
fund. Money from the fund would be used to match federal
funding for construction projects.
Representative J. Davies noted that it would be still be up
to the legislature to appropriate the funds.
Mr. Parkan noted there are three discretionary programs. He
reviewed the three programs. There is also a Public Lands
Discretionary Program. He noted that the state received
funding under this program in FY99. This program does not
require a federal match. The state is applying for funding
under this program. There is an amendment to add federal
authorization for projects under the program. There are
bridge and ferryboat discretionary programs, which have 20
percent match requirements. He discussed projects that the
department would submit under these programs.
Mr. Parkan noted that there is $57 million dollars of
federal funding that will not be in the budget next year.
This does not require a state match and can only be used on
the Haines Highway. He reviewed funding the state received
under this program.
Mr. Parkan noted that the department has applied for $10
million federal dollars for work on the Dalton Highway.
Representative Williams asked if funding for roads in
Metlakatla is covered through federal funds. Mr. Parkan
clarified that the military is building the road, but noted
that funds were requested extra funding for the project. He
noted that the project has turned out to be a slower and
more expensive project than anticipated.
Mr. Parkan discussed high priority projects. Congress
appropriated funding for these in the last year. There is a
required 20 percent match. The state anticipates receiving
88 percent of the funding that was approved. He discussed
the projects on page 4 of the handout.
Co-Chair Therriault asked for additional information on the
North Denali Access route. Mr. Parkan noted that there is a
required 20 percent match on this program.
(Tape Change, HFC 99 - 109, Side 2)
In response to a question by Representative J. Davies, Mr.
Parkan explained that state has applied for a $10 million
dollar grant under the National Corridor Preservation Grant
program. If it were received it would be part of the total
plan for the Dalton Highway.
Mr. Parkan noted that the department captured $2 million
federal dollars in FY99 through another federal program in
TEA-21 and hopes to capture more in FY00.
In response to a question by Representative Williams, Mr.
Parkan noted that there has not been interest in funding the
Bradfield Canal Road.
Mr. Parkan discussed page 5. It demonstrates the process
used in developing the Statewide Transportation Improvement
Program (STIP). The department is currently under the public
comment process. They anticipate a draft in the fall.
Representative Austerman noted that legislators should let
the department know which projects on the list are
important.
Mr. Parkan reviewed the series of maps provided in the
handout. He observed that the Dalton Highway grant project
was located on the first map. Areas needing the greatest
amount of attention were identified on the maps.
Mr. Parkan further discussed plans for the Dalton Highway.
The intent is to reduce maintenance costs and keep the dust
down.
Mr. Parkan reviewed the National Highway System schedule.
Mr. Parkan discussed the Gravel to Pavement Program. He
noted that the program reduces maintenance and improves
roads. Projects were identified in the handout.
Co-Chair Therriault noted that the projects are broken down
by region. Mr. Parkan clarified that their projects were not
prioritized within the list, but that the department intends
to complete all the projects on the list in FY99.
In response to a question by Representative Austerman, Mr.
Parkan stated that he did not know to what extent local
communities could take over the roads. He emphasized that
local communities would be more disposed to take over roads
that were well maintained.
Mr. Parkan explained that the department is requesting $30
million dollars for projects approved in FY99 and FY00.
Co-Chair Therriault questioned if projects were grouped by
location. Mr. Parkan emphasized that it makes sense to group
projects by location.
Representative Williams referred to the STIP review process.
He questioned how priorities were received for the city of
Ketchikan. Mr. Parkan reviewed the process used to
prioritize community projects.
Further discussion occurred regarding the prioritization of
projects in Ketchikan. Representative J. Davies pointed out
that the Tongass Highway is part of the federal highway
system and would not be scored.
Representative Austerman asked how many miles would be paved
on the Dalton highway. Mr. Parkan explained that it would be
paved over 10 years.
In response to a question by Representative Austerman, Mr.
Parkan gave the location of the Taylor highway. He explained
that it doesn't rank as high in the scoring process.
Representative J. Davies asked about the Denali Highway. Mr.
Parkan noted that the department is trying to decide whether
to pave the Denali Highway. Representative Grussendorf
asked if the department is anticipating a new revenue source
of the gasoline tax. He asked what the department's plan
would look like without funding from the gasoline tax. Mr.
Parkan stated that the only other funding would be the
general funds. He observed that the department's budget
contains the minimal amount of matching state general fund
dollars needed. The program budget would be from the
anticipated funding for federal match. If the state match
amount were lost, federal funds would have to be returned to
the federal government. He noted that it was a 10% match.
Representative Austerman maintained that providing a general
fund match to new federal dollars takes funding away from
maintenance of existing roads. Mr. Parkan stated that the
formula program TEA-21 has increased largely. The federal
program has been $220 for the past couple years and this
year it is over $300 million dollars. He stressed that the
additional funding covers old and new projects. He
emphasized that providing a hard surface on gravel roads
reduces road maintenance. Representative Austerman stressed
that the current system requires that roads must deteriorate
before federal funding is available to rebuild them. Further
discussion ensued regarding federal funding for road
maintenance.
Mr. Parkan noted that the Department has added about $9
million dollars to address maintenance needs. The intent is
to prevent major repairs.
Representative Foster pointed out that the Department of
Transportation and Public Facilities' budget is the same as
it was in 1994.
Airport Improvement Program
Mr. Parkan reviewed graphs relating to the Airport
Improvement Program (AIP) funding, contained in the
department's handout (copy on file.) There has been an
increased in categorical and discretionary funding. The FAA
requires that each project receive legislative authority for
each project before discretionary grants are awarded.
Projects that look like they will receive high FAA scores
are included.
Representative Austerman asked if FAA airport funding is all
capital funding. Mr. Parkan replied that it is all capital;
no operational funding is included.
Representative Austerman noted that the airport has priority
over the roads. Mr. Parkan agreed and pointed out that there
is a safety issue.
Mr. Parkan spoke to the sources and uses of funds for the
Anchorage International Airport. He noted substandard
airports throughout the State. A standard of 3000 feet is
used for airports throughout the State.
Mr. Parkan observed that the Office of Management and Budget
submitted an amendment for a reappropriation of $2.2 million
dollars, which would allow the match requirement to be
reduced. He emphasized that grouping the state match into a
"single pot" would allow better use of state funds.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORATIONS AND PUBLIC FACILITIES answered
questions by Co-Chair Therriault regarding federal funding
of highway and negative billing concerns. Sometimes general
fund money is used at the beginning of a project. Co-Chair
Therriault questioned if the state could jump start a
project with state general funds and request reimbursement
from the federal government based on their anticipated level
of participation. Ms. Slagle stated that general fund money
is sometimes used at the beginning of a project an
reimbursed by the federal government. Prior federal approval
is required.
Cooperative Reimbursable Projects $10,500,000
Ms. Slagle noted that projects in this request are a mixture
of federal receipts and statutory program designated
receipts. The authority allows the department to receive
funds for work requested by utility companies and others in
conjunction with projects by the department. There is $9
million dollars in statutory designated program receipts and
$1.5 million in federal receipts. This is the approximately
the same level as other years.
Engineering Equipment replacement $1,500,000
Ms. Slagle stated that the request allows the Department to
charge a fee for specialized projects, which cannot be
charged directly to one specific project. This would
guarantee up-to-date equipment.
Federal Emergency and Contingency Projects $8,000,000
Ms. Slagle she noted that this request is for federal
receipts. This allows the department to receive money from
the federal government during disasters. She noted that the
funding has been used to respond for flood repair. There is
no state match required.
Federal Transit Administration Grants $930,000
Ms. Slagle noted that there are $900 thousand dollars in
federal receipts and a $30 thousand dollars state match.
Funding is for competitive grants to non-profit agencies for
elderly transportation.
Skagway Maintenance Station and Acquisition $120,000
Ms. Slagle stated that this request is for general funds
dollars for the purchase of maintenance shop and land in
Skagway.
State Equipment Fleet Replacement Program $11,800,000
Ms. Slagle pointed out that the request would be used for
replacement and refurbishment of all state vehicles serviced
by the department. Funding is covered by replacement rates
charged to the agencies.
(TAPE CHANGE, HFC 99 - 110, Side 1).
Ms. Slagle stated that 80 percent of the request is related
to operation and maintenance within the Department of
Transportation and Public Facilities.
Alaska Marine Highway System Overhaul $4,390,600
Ms. Slagle observed that this request is for general fund
dollars that would be used for overhauling the ferry system
vessels. The request also includes $390,600 for mandatory
training that the federal government will not reimburse.
Representative J. Davies asked why training money was
included in the capital budget. Ms. Slagle replied that the
request is for the hardware and software training packages.
All marine highway system employees need to receive training
by the year 2002. The department needs $390 thousand dollars
a year for 3 years to train everyone. She explained that the
request was not incorporated into the operating budget
because it is not a long-term expense. She added that there
is some money identified in the operating budget to train
new employees. The request would guarantee that everyone in
the system is trained by the year 2002.
Airport Deferred Maintenance $900,000
Ms. Slagle observed that this is a request for general funds
and is at the same level received by the department in
previous years. The request would address paving and repairs
at rural airports. She reviewed projects included in the
request. These projects are not eligible for federal funds.
Facilities Deferred Maintenance and Critical Repairs
$1,028,000
Ms. Slagle observed that this request provides for
maintenance needs in state owned facilities. Mr. Parkan
noted that the Deferred Maintenance Task Force identified
more projects than can be included in the department's
request.
Harbor Deferred Maintenance $900,000
Ms. Slagle observed that the request is for general funds.
The request is for backlog maintenance at state-owned
harbors.
Highway Deferred Maintenance $1,000,000
Ms. Slagle noted that the request is for general funds to
address highway deferred maintenance. There are many
problems dealing with brush control. Co-Chair Therriault
referred to culvert problems that are the result of beavers.
Mr. Parkan acknowledged that beavers present an on going
problem.
Emergency and Non-Routine Repairs $1,000,000
Ms. Slagle stated that the general fund request would be an
increase over FY99 ($500,000). The Department has typically
received $1 million dollars. They received an additional
supplemental amount for FY99. She gave examples of repairs
that are addressed by this component.
Relocate and Consolidation Marine Highway System Operation
$1,500,000
Ms. Slagle stated that the request would be funded through
the Alaska Marine Highway Fund for consolidation of work
groups for the Alaska Marine Highway System. The department
is working with the Department of Administration on an
analysis to consider potential options. The current facility
houses reservations and warehouse storage. Representative
Williams suggested moving the office to Ketchikan and noted
that the city has offered to build a facility. Slagle
clarified that the facility in question only handles
reservations.
Co-Chair Therriault indicated that the state would be
interested in relocating if the building were rent-free.
Representative Austerman asked how many employees were
involved in reservations. Ms. Slagle offered to provide that
information. She noted that there are seasonal employees to
address summer traffic.
Corps of Engineers Program $6,381,000
Ms. Slagle noted that $2.2 million of the request would come
from Alaska Industrial Development and Export Authority
funds. The rest would be a state match. She reviewed Corps
of Engineer projects that would occur if the funds are
provided. The match amount depends on the type of project.
Some communities provide part of the match.
Coordinated Transportation and Vehicles $150,000
Ms. Slagle explained that this is part of the Mental Health
Trust request for care-a-vans.
Municipal Matching Grants
Co-Chair Therriault observed that municipal matching grants
of $15 million dollars are put together by communities.
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