Legislature(2001 - 2002)
04/10/2002 02:16 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 291
"An Act making supplemental and other appropriations;
amending appropriations; and providing for an effective
date."
Co-Chair Mulder provided members with a proposed committee
substitute, work draft 22-GS2102\B, 4/10/02, and
accompanying spreadsheet (copy on file.)
Representative Whitaker MOVED to ADOPT work draft 22-
GS2102\B, 4/10/02. There being NO OBJECTION, it was so
ordered.
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER, reviewed
the legislation. He provided members with a spreadsheet
detailing the changes contained in the committee substitute
(copy on file).
Section 1
Court System, Judicial Conduct, Legal
Mr. Dewitt observed that section 1 authorizes legal fees in
excess of the FY2001 supplemental in the amount is $6829.77.
Section 2
Department of Community and Economic Development,
Alaska Science & Technology Foundation, Idaho National
Engineering and Environmental Laboratory Grant
Mr. Dewitt noted that section 2 funds statutory designated
program receipts for a contract for Alaska Business
Research. Funds are available March 1, 2002.
Section 3
Corrections, Palmer Correctional Center
Mr. Dewitt noted that there is a problem with the water pump
and well house, which the section would address. The request
authorizes $172 thousand dollar general fund appropriation.
The request was for other funds but the other body felt that
general funds would be more secure.
Section 4
Department of Health and Social Services, Medicaid
Services, Medicaid Services
Mr. Dewitt observed that the funds are need to complete the
year. They are projected to run out April 16.
Co-Chair Mulder noted that a lack of funding would result in
a restriction of payments, which would result in a backlog.
Section 5(a)
Department of Transportation and Public Facilities,
Marine Highway Stabilization Fund, Marine Highway
Stabilization Fund
Mr. Dewitt noted that the appropriation would address the
FY02 deficit due to M/V Columbia fire and fuel cost
increases.
Section 6
Military and Veterans Affairs, Disaster Planning &
Control
Mr. Dewitt noted that section 6 appropriates $125 thousand
dollars to cover costs to maintain the 24-hour State
Emergency Coordination Center (SECC), the agency that
coordinates all federal, state and local jurisdictional
responses associated with any disaster or event.
Section 7
Department of Natural Resources, CIP
Mr. Dewitt observed that the section changes a capital
improvement program in Kenai to reduce risks from wildfire.
Section 8
Office of the Governor, Elections
Mr. Dewitt noted that section 8 would cover costs for
printing and mailing a Primary Election Voter Education
Guide in time to explain the new law (shifted from the FY03
budget, which was amended). The $125 thousand dollars was
taken out of the House budget when it was passed, with the
expectations that it would be in the supplemental.
Section 9
Department of Community and Economic Development, Power
Cost Equalization & Rural Electrification Fund
Mr. Dewitt explained that the amount was inadvertently
omitted from the FY02 appropriation from the Power Cost
Equalization Endowment fund to the Power Cost Equalization
and Rural Electrification Fund. The section appropriates
3.5% of market value.
Section 10
Department of Public Safety, State Troopers
Mr. Dewitt noted that the section is for one-time costs
associated with response to the September 11, 2001 events.
Section 11
Legislature, Redistricting Board
Mr. Dewitt observed that section 11 provides additional
funds for personal services and board meeting. The Board has
an additional $30 thousand dollars, which should cover the
balance of the cost to redo their maps.
Section 12
Department of Community and Economic Development,
Qualified Trade Assoc. Contract
Mr. Dewitt noted that section 12 appropriates $2 million
dollars for additional tourism marketing efforts to mitigate
the economic effects to Alaska from the September 11, 2001
terrorist attacks. The House sent a $6 million dollar
appropriation to the Senate for the same purpose.
Section 13(a)(1) - (4)
Department of Transportation and Public Facilities
Mr. Dewitt noted that there were a number of highway
maintenance stations in disrepair. The funds would provide
temporary rental and other costs of vacating the maintenance
station due to imminent failure.
Section 13(b)
Department of Transportation and Public Facilities,
Central Region CIP
Mr. Dewitt noted that section 13 (b) is for the Anchorage
Bowl - Long Range Transportation Plan Update for 2025.
Federal funds would be moved forward, for immediate
implementation.
Section 13(c)
Department of Transportation and Public Facilities,
Southeast Region CIP
Mr. Dewitt clarified that section 13 (c) changes the title
from West Douglas Highway Extension to Gastineau Channel
Second Crossing to match the federal project name. This is a
change from the Senate version.
Section 13(d)(1)
Department of Transportation and Public Facilities,
Central Region Highways and Aviation, Security and
Emergency Access Routes in Anchorage
Mr. Dewitt explained that section 13 (d) revises traffic
patterns for enhanced security and emergency routing at the
Port of Anchorage Access and access/egress from Elmendorf
AFB and Ft. Richardson onto the Glenn Highway.
Section 13(d)(2) (4)
Department of Transportation and Public Facilities
Mr. Dewitt explained that these sections fund liability
premium increases as result of the September 11, 2001
terrorist attack.
Section 13(e)(1)- (8)
Department of Transportation and Public Facilities
Mr. Dewitt noted that these sections increase the presence
and visibility of law enforcement officers required by the
federal government and authorizes the expenditure of federal
funds.
Section 13(f)(1) - (7)
Department of Transportation and Public Facilities
Mr. Dewitt explained that these sections are activities
relative to the Anchorage and Fairbanks airports. Liability
premium increases are authorized as result of the September
11, 2001 terrorist attack, along with security measures,
which are funded through the International Airport Revenue
Fund.
Section 13(g)
Department of Transportation and Public Facilities,
Alaska Marine Highway System
Mr. Dewitt noted that section 13 (g) allows funds to come
out of the Alaska Marine Highway System Fund to pay for
liability premium increases as result of the September 11,
2001 terrorist attack (See 5(b)).
Section 13(h)(1) - (4)
Department of Transportation and Public Facilities
Mr. Dewitt explained that these sections are a mixture of
federal funds and International Airport Revenue funds at
Anchorage and Fairbanks airports.
Section 14(a)
University, System wide Small Planning, Design and
Construction
Mr. Dewitt noted that section 14(a) allows $800 thousand
dollars in university receipts to be used at the Lena Point
fisheries and ocean sciences laboratory.
Section 14(b)
University, CIP
Mr. Dewitt explained that section 14 (b) allows a scope
change for Sec 3, Ch 61, SLA 2001 to include UAA Heating,
Ventilation, and Air Conditioning Piping Replacement Phases
1-4.
Vice-Chair Bunde asked for more information on section 12.
Mr. Dewitt observed that the funding would help increase
marketing. He observed that the funding might not be in time
to help with the current season. The funds are in addition
to the $4.5 million dollars currently going into the
tourism-marketing budget.
TAPE HFC 02 - 80, Side A
In response to a question by Representative Lancaster, Mr.
Dewitt observed that the funding was added in the proposed
committee substitute. Discussion ensued regarding funding
for tourism. The House legislation appropriated $6 million
dollars. The legislation has not passed the Senate. The
Senate did not provide additional funding for tourism.
Representative Harris asked for further information
regarding Power Cost Equalization. Mr. Dewitt noted that the
statute would have 7 percent of the fund appropriated. He
indicated that additional funding would be provided through
another vehicle.
Representative Lancaster referred to section 5 (a), fuel
costs. Mr. Dewitt explained that the section appropriates
funds related to fuel costs and the M/V Columbia fire.
Representative Davies asked for more information the 7
percent funding for Power Cost Equalization.
SARA FISHER-GOAD, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY, DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
testified via teleconference. She explained that the request
was 7 percent from the Power Cost Equalization Endowment
Fund. The legislation would appropriate 3.5 percent. The
Fund is out of money; an additional amount is needed to meet
the FY02 obligations. The additional $3.5 million dollars
would provide funding through April. There is a $1.5 million
dollar backlog for PCE payments. The full 7 percent is
needed to meet FY02 obligations.
Representative Lancaster noted that a pro rata amount was
begun on June 1. Ms. Goad explained that the pro rata amount
was to the appropriation of $15.7 million dollars. The issue
before the Committee was the capitalization of the Fund.
There was an error in the 7 percent appropriation to the
Endowment Fund, which did not happen. They prorated to $15.7
million dollars, but there was not $15.7 million dollars in
the Fund. The Fund is $7 million dollars short. She
explained that the $1.1 million dollars was a supplemental
request to fully fund the program for March through June,
which would allow payments of 100 percent. The current pro
rata is at 80 percent of the PCE level. The amount is based
on PCE levels set by the Regulatory Commission of Alaska.
Representative Lancaster interjected that the amount is
subject to interpretation on what is full funding: whether
it is $15.7 million dollars total with or without fuel cost
increases or new people on the program. The amount needs to
be finalized.
ADJUTANT GENERAL BG PHIL OATES, COMMISSIONER, DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS provided information on
requests by the department. He observed that there were
several problems within the fast track supplemental. He
noted that the department had many expenditures based on the
attacks of September 11. The expenditures as they related to
the Trans Alaska Pipeline, Valdez Airport and the Fox weigh
station were communicated through teleconference to the
House and Senate leadership. The decision was made that the
threat was not worth the cost and that risk would be taken
in these areas. He pointed out that although many of the
areas where money has already been spent have been
addressed, there are some areas that have not be covered.
Three areas of concern remain. The first is the checkpoint
for the Trans Alaska Pipeline. The Department of Public
Safety and the Military and Veterans Affairs established the
checkpoint for a total cost of $433.2 thousand dollars. The
total includes the cost to call the Alaska State Defense
Force up to state active duty and to administer the
checkpoint. The cost to the Department of Public Safety was
$288.2 thousand dollars. The cost to the Department of
Military and Veterans Affairs was $145 thousand dollars. He
noted that hours were expanded at the Fox weight station to
24/7 in order to fully inspect all the vehicles and cargo
transiting the Trans Alaska Pipeline. He pointed out that
there has been an attack on the pipeline. The checkpoints
were established in response to calls from the White House.
The United States Attorney General and the director of
Homeland Security called the Governor and said that there
was a threat against all infrastructure across the United
States. They stressed that security needed to be improved.
The leadership was notified and checkpoints established.
Expanded use of the weigh station cost $42.2 thousand
general fund dollars.
Commissioner Oates discussed the Valdez airport
expenditures. The Valdez airport was not qualified under
federal funding. State funds were spent because the FBI,
FAA, and Alaska Coast Guard commander were concerned with
the level of security. Total expenditures were $542.3
thousand dollars.
Commissioner Oates noted that legislation for homeland
security has not moved. The funding [requested in homeland
security legislation] has come out of the departments'
existing budgets. He stressed that his department would be
in a crisis to get to the end of the year. Recovery will be
harder the longer they wait for funding. The money has
already been spent and is coming out of existing budgets.
Representative Lancaster questioned if the department has
worked with ALESKA since 9/11/01. Commissioner Oates
affirmed that he has worked with ALESKA. He emphasized that
the pipeline has national and worldwide significances. He
emphasized that there have been expenditures to increase
security. The pipeline could be lost if the line was done
for more than 10 days.
In response to a question by Vice-Chair Bunde, Commissioner
Oates clarified that the checkpoint is at the Yukon River.
It is a critical point of vulnerability. The Fox weigh
station is further south. The checkpoint was established to
get situational awareness of who was up there. Every vehicle
was stopped, identification was required, and cargo and the
purpose of travel were logged. He noted that 8,849
commercial vehicles and 774 public vehicles were checked.
Vice-Chair Bunde noted that there is a lot of road access to
the pipeline and pointed out the difficulty of securing the
entire pipeline. Commissioner Oates acknowledged the
difficulty of securing the 700 plus mile pipeline, but
pointed out that the most critical points in regards to the
ability to repair is along the Yukon River bridge to the
north. The key factor is how quick the pipeline could be
repaired. The idea is to take risk in some areas but to
decrease risk in areas difficult to repair within the 10-day
window in which pressure could be lost. The protection of
the Transatlantic Pipeline is the best in the United States,
but is still inadequate. He emphasized the need for a
presence to know who is there.
Representative Harris questioned the affect of the added
expenditure on the rest of the department's operations.
Commissioner Oates explained that the Military and Veterans
Affairs is requesting $145 thousand dollars. All
discretionary maintenance would be withheld without the
appropriation, which would increase future costs. Contracts
to keep on water and heat or to do emergency repairs would
remain. He observed that funding was provided in the
supplemental for the State Emergency Coordination Center, an
emergency transportation of blood to the lower 48 states and
provide required state security at airports during the
attacks.
Co-Chair Mulder MOVED to ADOPT Amendment 1. Vice-Chair Bunde
OBJECTED. Co-Chair Mulder observed that the amendment would
require a 30 percent match from the Alaska Tourism Industry
Association (ATIA) by June 30, 2002. The lapse date would be
extended to June 30, 2003.
Vice-Chair Bunde spoke against the amendment. He maintained
that [additional funding to support the tourism industry in
the aftermath of 9/11/02] would send the wrong message in
terms of the fiscal gap. He stressed that the match level
should be higher.
Representative Hudson questioned if the Alaska Travel
Industry Association would be able to meet the 30 percent
match.
TINA LINDGREN, PRESIDENT, ALASKA TRAVEL INDUSTRY
ASSOCIATION, JUNEAU, stated that the ATIA would be able to
meet the match. The match would be about $1 million dollars.
Co-Chair Mulder noted that there was $4.5 million dollars in
the FY02 budget for tourism marketing. The total budget
would be approximately $6 million dollars.
Representative Croft questioned if the match date should be
changed to the end of this fiscal year.
Representative John Davies clarified that the 30 percent
match would be to the $2 million dollar supplemental grant
by the end of FY02. Ms. Lindren noted that the ATIA has
already met the required match for the FY02 appropriation.
Representative Croft questioned why the appropriation goes
to FY03, while the match is due by June 30, 2002.
Co-Chair Mulder responded that the intent is to provide for
a match. The ATIA indicated that they could make the match
in the time allocated.
Vice-Chair Bunde MOVED to ADOPT Amendment 1B: Delete funding
for the Alaska Travel Industry Association. He stressed the
need to reduce the budget. Representative Lancaster spoke in
support of the legislation.
Co-Chair Williams spoke in opposition to the amendment. He
stated that the appropriation sends the message that the
legislature is attempting to help an industry in need. He
observed that state support for the tourism industry has
been reduced. He acknowledged that the cruise ship industry
has improved, but emphasized that the amount of money being
spent off ships has been reduced.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Bunde, Croft, Lancaster
OPPOSED: Whitaker, Davies, Harris, Hudson, Mulder, Williams
Representative Foster was absent from the vote.
The MOTION FAILED (4-6).
Representative Harris MOVED to ADOPT Amendment 2. He
explained that the amendment would appropriate $145 thousand
dollars for the Department of Military and Veterans Affairs,
for costs to maintain a temporary checkpoint at the Yukon
River Bridge.
Representative John Davies spoke in support of the
amendment. He noted that there was a great deal of concern
following September 11, 2001 regarding the security of the
pipeline.
Vice-Chair Bunde OBJECTED. He noted that other departments
had made expenditures, which they have been asked to absorb.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Harris, Hudson, Lancaster, Moses,
Whitaker, Williams
OPPOSED: Bunde, Mulder
Representative Foster was absent from the vote.
The MOTION PASSED (8-2).
Co-Chair Williams MOVED to ADOPT Amendment 3. He explained
that the amendment would raise the appropriation for the
Alaska Marine Highway System to $2,038.500 dollars. He
observed that increased fuel costs and the fire on the M/V
Columbia were not under the department's control. He noted
that $2.8 million dollars were requested.
Vice-Chair Bunde spoke against the amendment.
Representative Whitaker spoke in support. He pointed out
that the cost of fuel increased and that the money is needed
for operations.
Representative Harris questioned if the amendment would
address the issue of reduced service.
Representative Hudson affirmed that the appropriation would
affect service; without the funds ships would be laid up and
paid passengers turned away.
Co-Chair Mulder observed that the total amount needed is
approximately $2.8 million dollars. He stated that he
anticipated additional funding could be in the next
supplemental legislation. The amendment would allow some
security.
Representative Croft questioned if service to Cordova would
be affected.
Representative Lancaster stated that he would support the
legislation but noted that he did not think that the
department did a good job in estimating fuel costs.
Co-Chair Mulder noted that he would not object to the
amendment and pointed out that the M/V Columbia fire was in
the nature of an emergency.
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES stated that the
department would have to see how the $600 thousand dollar
restoration would affect the overall impact. He noted that
the department provided the Committee with impacts of a $1.4
million dollar reduction. The restoration of $600 thousand
dollars would help considerably but he could not speak to
which vessel would be brought back on. Impacts were stated
for the M/V Bartlett in Prince William Sound, the M/V Aurora
and the M/V Malaspina in Southeast, as well as holding open
vacant positions for shore side employees. He added that the
additional amount would minimize impacts to service.
Representative Harris noted that the concern in Cordova is
that the fishing season is about to begin. He referred to
the proposed schedule and expressed concern that reductions
in service could adversely impact the fisheries.
Vice-Chair Bunde stressed that if government is reduced that
new and creative ways would be found at less cost.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses, Harris, Hudson, Lancaster,
Whitaker, Williams
OPPOSED: Bunde, Mulder
Representative John Davies MOVED to ADOPT Amendment 4:
delete "$135 thousand dollars" and insert "$423.2 thousand
dollars" for the Department of Public Safety to cover their
costs for the Yukon River checkpoint.
Commissioner Oates maintained that the expenditure came as
the result of a call from the White House and is "absolutely
justified." The funds have been expended and the checkpoint
is now closed.
Co-Chair Mulder OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Harris, Moses, Croft, Davies
OPPOSED: Hudson, Lancaster, Whitaker, Bunde, Mulder
Representatives Williams and Foster were absent from the
vote.
The MOTION FAILED (4-5).
TAPE HFC 02 - 80, Side B
Representative Croft MOVED to ADOPT Amendment 5. He
explained that the amendment would add the sum of $26.4
million dollars for the University of Alaska. He expressed
concern that progress at the University would be reduced
without additional funding and pointed out that there would
be limited opportunities to add money to their budget. The
amendment would be a general fund appropriation and would
add an increase of $16.9 million dollars, which would allow
them to overcome $9.4 million dollars in fixed costs, of
which the majority is for contract increases.
Representative Whitaker MOVED to AMEND Amendment 5, by
deleting "26.4" and inserting "$16.9" million dollars. Co-
Chair Mulder OBJECTED. Representative Whitaker spoke in
support of the amendment. He noted that the University's
request of $16.9 million dollars was reasonable. There has
been significant momentum associated with the University of
Alaska. Co-Chair Mulder WITHDREW his OBJECTION.
Representative Harris observed that the $16.9 million
dollars would be in addition to the current appropriation.
Co-Chair Mulder explained that $4.4 million dollars in one
time funding sources were utilized in FY02. The FY03
appropriation substituted general funds. The total amount
for the university would be $219 million dollars. The
University requested an increase of $16.9 million dollars
plus an additional general fund appropriation of $4.4
million dollars to replace the one-time funds. The amendment
mirrors the request by the University of Alaska.
There being NO OBJECTION, the amendment to the amendment was
adopted.
Co-Chair Mulder maintained his objection. He acknowledged
the intent but maintained that the supplemental is not the
right place or time for the appropriation to go forward. He
felt that there would be other opportunities to help the
University and pointed out that the appropriation would
"blow the lid" off of the attempt to hold the line on
spending.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Whitaker
OPPOSED: Bunde, Harris, Hudson, Lancaster, Moses, Williams,
Mulder
Representative Foster was absent from the vote.
The MOTION FAILED (3-7).
Representative John Davies MOVED to ADOPT Amendment 6:
increase the appropriation for Power Cost Equalization (PCE)
from 3.5 percent to 7 percent ($7.622 million dollars). He
spoke in support of the amendment.
Representative Harris clarified that the Senate funded PCE
at $3.5 million dollars. The legislature committed to fund
PCE at 7 percent. Co-Chair Mulder agreed and acknowledged
that it was an oversight.
Co-Chair Mulder WITHDREW his OBJECTION.
Representative Hudson MOVED to report CSHB 291 (FIN) out of
Committee.
HCS CSSB 291 (FIN) was REPORTED out of Committee with "no
recommendation."
| Document Name | Date/Time | Subjects |
|---|