Legislature(2001 - 2002)
03/22/2001 01:41 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
GENERAL SUBJECT(S): HB 47-APPROP: GOVERNOR'S CAPITAL BUDGET Community and Economic Development Fish and Game Governor Education and Early Development The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 22nd Legislative Session, contact 465- 2156. After the 22nd Legislative Session they will be available through the Legislative Library at 465-3808. LOG SPEAKER DISCUSSION TAPE HFC 00 - 58 SIDE A 000 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 124 BOB POE, ALASKA Noted that the department has reduced its INDUSTRIAL first request for $7.8 million dollars DEVELOPMENT AND for Power Cost Equalization. He observed EXPORT AUTHORITY that the amendment request is for $6,854 (AIDEA) million dollars. 221 Mr. Poe He noted that higher fuel costs resulted in a supplemental request in FY01 of $1.5 million dollars. The FY02 request is reduced by $1 million dollars. 351 CO-CHAIR MULDER Questioned if the statutory PCE formula spoke to fuel costs and questioned how a supplemental on fuel cost was calculated. 402 Mr. Poe He acknowledged that the Regulatory Commission of Alaska sets the rate for PCE. Reviewed the fuel cost calculations. He explained that the formula anticipates a total cost of $15.7 million dollars each year. The cost was higher than $15.7 million dollars this year. There is a variance on the real cost. 456 Co-Chair Mulder Questioned the need for a supplemental and pointed out that other areas of the state also experienced rising fuel costs. 535 Mr. Poe Noted that other areas of the state are able to adjust their rates and pass the cost on to the consumer. 573 Co-Chair Mulder Questioned the difference between AIDEA receipts and dividends. 628 Mr. Poe Explained that $620 thousand dollars would be used to purchase Rural Development Initiative Fund loans that would be added to the portfolio. It is an exchange of liquid assets for long-term assets. 660 Representative Asked for more information. Hudson 761 Mr. Poe Observed that the stock market decline has affected the endowment. He noted that AIDEA has been working hard on the sale of the Four Dam Pool. 827 Representative John Pointed out that the Legislature Davies understood that PCE was not fully endowed. 878 JEFF BUSH, DEPUTY Reviewed the request for Operation Renew COMMISSIONER, Hope. The state is pursuing federal DEPARTMENT OF funding. COMMUNITY AND ECONOMIC DEVELOPMENT 921 Mr. Bush Reviewed the Community Block Grants request. He pointed out that the request is federal pass through funding. 976 Mr. Bush Discussed the Federal Community Development Grants component. The original request was for a $150 million dollar state match. Additional receipts from the Denali Commission are expected. Therefore the request has increased to $300 thousand dollars in state match and $6.35 million in federal funds. 1098 Mr. Bush Discussed the USDA mini grant program. 1124 Mr. Bush Noted that the Denali Commission has approved $4.5 million dollars and the state expects an additional $500 thousand dollars this year. A small state match is included. 1171 Mr. Bush Reviewed the Trans-Alaska Pipeline Liability (TAPL) Fund request. 1243 Mr. Poe Noted that the state is asking for an additional $3.5 million in federal receipts and $1.6 in Oil and Hazardous Substance Prevention and Release Fund. The state is arguing that the TAPL represent part of the state's match. 1445 Mr. Poe Discussed Rural Systems Upgrades. The department is asking for a $500 thousand dollar general fund match to match a $10 million federal dollar rural power system upgrade. He stressed that the cost of generation can make a great impact. 1536 Mr. Poe Reviewed the Alternative Energy Program. He noted that the request would look at ways of producing ethanol. He discussed page 31 of the department's request (see capital amendment backup). He pointed out that the bulk of the funding is federal. 1623 Mr. Poe Discussed the Electrical Emergencies request. He stressed that the request assists the Alaska Energy Authority with emergency repairs. 1674 Representative Emphasized the need for a statewide Hudson alternative energy plan. He pointed out that it has been a long time since the 470 Funds were reviewed. He questioned if 5 cents a barrel is still being collected. 1768 Mr. Poe AIDEA produced an alternative energy plan last year. The Railbelt indicated that rural energy should be the focus. AIDEA found that some ideas make sense if well targeted, but most do not make economic sense due to the economics of size. The best place to reduce costs is in fuel and waste heat efficiencies and weatherization. Small hydro projects can be utilized. 1895 Representative Referred to the wood fire boilers in Foster rural areas. 1929 Mr. Poe Noted that the wood fire boiler must be efficient to cut down on the costs. They only work in very targeted areas. 1968 Representative John Noted that an Energy Task Force has been Davies proposed and spoke in favor of interim work. 1987 Mr. Bush Discussed the Alaska Russian Far East Projects Phase 2. He noted that Sakhalin Development Agency would be implemented with an AIDEA model. The Legislative Budget and Audit Committee previously approved funding. This would be the last phase. 2076 Representative Stressed that Alaskan areas have needs. Foster 2093 Mr. Bush Emphasized that the projects are federally funded and that Alaskan businesses can benefit from development. 2123 Representative Croft Pointed out that the funding would help develop oil and gas in the Arctic that would compete with Alaska. 2161 Mr. Bush Responded that the development would take place without Alaskan participation. He emphasized that the question is whether or not Alaska can capitalize on the benefits of the development. 2202 Representative Questioned if state employees would go to Hudson Sakhalin to assist development. 2228 GREG WOLF, DIRECTOR, Testified via teleconference that the INTERNATIONAL TRADE funding is a pass through that to private AND MARKET development. DEVELOPMENT 2285 Mr. Bush There would be some involvement of state employees. 2325 Mr. Bush Reviewed the Kodiak Launch Complex Facilities request. 2350 Mr. Bush Discussed the Arctic Winter Games Team Alaska. The games would be held in Greenland. The funding would help with operation costs and travel. TAPE HFC 01 - 58, Side B DEPARTMENT OF FISH AND GAME 37 KEVIN BROOKS, He noted that the department's request DIRECTOR, DIVISION contains $13.2 million dollars in federal OF ADMINISTRATIVE funds. SERVICES, DEPARTMENT OF FISH AND GAME 142 Mr. Brooks Discussed the statewide Facilities Repair, Maintenance, and Replacement request. 215 Mr. Brooks Reviewed the Vessel and Aircraft Repair, Maintenance and Replacement request. He pointed out that the request deals with health and safety issues. The R/V Sundance failed to meet accepted safety standards and needs to be replaced. The department estimates $250 to $300 thousand dollars for its sale. The vessel is located in Southeast Alaska. 431 Vice-Chair Bunde Clarified that aircrafts would be repaired not replaced. 487 Mr. Brooks The state spends $2.5 million dollars in charter flights. 504 Mr. Brooks Discussed the Dock Repairs, Maintenance and Replacement Phase 2 request. The request would help finish the King Salmon facility and begin work in Cordova. The King Salmon facility is state-owned and used by the state. 607 Mr. Brooks Reviewed the Black River Sonar - Chignik area, Upper Aleutian Peninsula request. The focus is on a sonar system. 661 Mr. Brooks Discussed the Sport Fishing and Recreational Boating Public Access and Facility Development. He noted that the Federal Aid to Sport Fish Restoration Act requires that 15 percent of federal funds be available for public access. Federal funds are matched 25% state and 75 percent federal funds. 733 Mr. Brooks Discussed the Norton Sound Salmon Research Initiative. He noted that it is a 5-year program to spend $1 million dollars a year to determine issues around the fisheries collapse. 864 Mr. Brooks Responded to questions by Vice-Chair Bunde regarding fair access. 882 Mr. Brooks Noted that Norton Sound projects would occur in fresh water. 918 Co-Chair Williams Suggested that the department expand to ocean survival. 943 Mr. Brooks Agreed that ocean survival is a data gap. 977 Mr. Brooks Reviewed the Near Shore Fisheries Research and Assessment request for federal authorization. He observed that the state receives $1.798 million in federal dollars to help develop new fisheries. 1030 Mr. Brooks Discussed the Snow Crab Fishery Disaster Research request. There have been steep declines in the Crab fisheries. The request would bring $1 million dollars in federal funds. 1103 Mr. Brooks Discussed the Log Transfer Facility Research and Remediation request. 1146 Mr. Brooks In response to a question by Representative Lancaster, he noted that the work would be done through contractors. 1262 Co-Chair Williams Asked about the log transfer facility permits. 1278 Mr. Brooks Replied that would be the Department of Fish and Game. 1302 Representative Croft Emphasized the need to study ways to minimize the effect on the fisheries. He recommended what the best way would be to fix it. 1339 Mr. Brooks Addressed the wildlife habitat management in Interior Alaska request in the amount of $100 thousand dollars. 1372 Mr. Brooks Discussed the equipment replacement for wildlife conservation programs request in the amount of $100 thousand dollars. 1401 Representative Asked the typical life of one of the Foster machines. 1412 Mr. Brooks Replied that they would have a life expectancy of the other State equipment fleet. He added that they are used much longer than their life expectancy. 1487 Representative John Asked if it had been prior authorized. Davies 1515 Mr. Brooks Replied that the indication shows that the request had come up before. The one in 1998 has been used and now needs to be upgraded. 1570 Mr. Brooks Noted that this was a new appropriation. 1582 Vice-Chair Bunde Requested more information on the statewide waterfall near Petersburg. 1600 Mr. Brooks Discussed the Kachemak Bay reserve facilities design and construction request in the amount of $3.5 million federal fund dollars. 1641 Representative Asked the number of aircraft currently Foster available. 1652 Mr. Brooks Replied there were 10-12 aircraft in the Department for running surveys and enforcement. 1675 Mr. Brooks Mentioned another project in cooperation with the Governor's Office. 1734 Mr. Brooks Spoke to the Pacific Salmon Treaty in cooperation with the Governor's Office. The request is in the amount of $18 million federal receipt dollars. The federal fiscal year FY00 appropriations legislation established a Pacific Coastal Salmon Recovery Fund and appropriated a total of $58 million dollars for the states of Alaska, Washington, Oregon, and California as well as the treaty fishing tribes in the Pacific Northwest. Coordination of the fund is through the respective Governor's Offices. The Alaska portion of the federal appropriation was $14 million dollars and is expected to be $18 million in federal FY01. 1868 Representative Asked if the treaty required research. Lancaster 1881 Mr. Brooks Stated that it would as it requires great sustainability. 1893 Representative Referenced the bunkhouses and asked why Foster that was the State's obligation. 1919 Mr. Brooks Replied that there is employee housing for the seasonal workforce. 1933 Vice-Chair Bunde Asked the ratio of salmon. 1966 Mr. Brooks Replied that it would be an incremental benefit. 2009 Representative John Referenced the fast track supplemental Davies and the fishery need. 2023 Mr. Brooks Replied that he would provide that information to the Committee. OFFICE OF THE GOVERNOR TAPE HFC 01 - 59, Side A 000 MIKE NIZICH, Discussed the expansion of the AccuVote ADMINISTRATIVE elections system. DIRECTOR, OFFICE OF THE GOVERNOR 091 Mr. Nizich Spoke to American with Disabilities Act compliance projects in the amount of $500 thousand general fund dollars. 155 Representative John Asked if there was a total amount. Davies 180 Mr. Nitich Stated that there was not. 208 Representative John Pointed out that there was a total listed Davies on Page 12. DEPARTMENT OF EDUCATION & EARLY DEVELOPMENT 256 KAREN REHFELD, Discussed the Mt. Edgecumbe High School DIRECTOR, DIVISION classroom and field house repair and OF EDUCATION SUPPORT renovation in the amount of $150 thousand SERVICES, DEPARTMENT general fund dollars. OF EDUCATION AND EARLY DEVELOPMENT 340 Ms. Rehfeld Reviewed the request for the Mt. Edgecumbe High School Roof Repair & Replacement 382 GEORGE SMITH, DEPUTY Discussed the Museum facility upgrade DIRECTOR, LIBRARIES, request in the amount of $550 thousand ARCHIVES & MUSEUMS, dollars. The request would upgrade to DEPARTMENT OF fire suppression and dust collection. EDUCATION & EARLY DEVELOPMENT 513 Ms. Rehfeld Discussed the Head Start Health & Safety repairs request in the amount of $500 thousand dollars. 559 Ms. Rehfeld Understood that these were private facilities. 575 Ms. Rehfeld Reviewed the AVTEC roof repair and replacement request in the amount of $650 thousand dollars. 626 Mr. Smith Spoke to the design for museum and archives building expansion request in the amount of $500 thousand dollars. He addressed the need for additional space for the Alaska State Museum collection, which has grown from 5,600 objects in 1967 to over 25,000 objects currently. It is critical to preserving Alaska's history and culture. 725 Representative Asked to have a tour of the storage area. Foster 762 Representative Asked the number of students at Mt. Foster Edgecumbe 780 Ms. Rehfeld Replied there are about 313 students. 833 Co-Chair Williams ADJOURNMENT The meeting was adjourned at 3:25 p.m.
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