Legislature(2005 - 2006)HOUSE FINANCE 519

05/07/2006 12:00 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
= HB 316 EXTEND BOARD OF GOVERNORS ABA
Moved CSHB 316(JUD) Out of Committee
SB 48 PSYCH. EVALUATION/TREATMENT FOR STUDENTS
Moved HCS CSSB 48(HES) Out of Committee
= SB 206 DETENTION /I.D. OF PERSONS;CONTEMPT OF CT
Moved HCS CSSB 206(FIN) Out of Committee
= SB 160 STATE PROCUREMENT ELECTRONIC TOOLS
<Pending Referral>
= SB 231 BUDGET: CAPITAL & OTHER APPROPRIATIONS
Heard & Held
Bills Previously Heard/Scheduled
CS FOR SENATE BILL NO. 231(FIN) am                                                                                            
                                                                                                                                
     An   Act  making   appropriations,   including   capital                                                                   
     appropriations,       supplemental       appropriations,                                                                   
     reappropriations,   and  appropriations   to  capitalize                                                                   
     funds; making appropriations  under art. IX, sec. 17(c),                                                                   
     Constitution   of  the   State  of   Alaska,  from   the                                                                   
     constitutional  budget reserve  fund; and providing  for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
1:25:11 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  MOVED   to  ADOPT  work  draft  #24-                                                                   
GS2034\X, Kane, 5/7/06, as the  version before the Committee.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
PETE ECKLUND, STAFF, REPRESENTATIVE  KEVIN MEYER, highlighted                                                                   
items in the committee substitute.  The Senate added language                                                                   
to incorporate $182 million for  Power Cost Equalization; the                                                                   
House CS appropriates  $73 million for the top  three schools                                                                   
on the construction list in FY  07; another $90 million would                                                                   
be  appropriated in  FY 08  for schools  number four  through                                                                   
eight. Passage of HB 13 would  add funding for urban schools.                                                                   
There  is approximately  $66.6 million  for municipal  energy                                                                   
assistance, which would be spread  based on population. There                                                                   
is  a $40  thousand  minimum  payment to  each  municipality.                                                                   
There  are  payments  for  the   increased  costs  of  Public                                                                   
Employees  Retirement  System  / Teachers  Retirement  System                                                                   
(PERS/TRS) of  $8.8 million; payments would be  deducted from                                                                   
a  community   would  expect  under  energy   assistance  and                                                                   
deposited  into their  retirement  accounts.  There are  also                                                                   
appropriations for $170 million  of tobacco bond projects (HB
381). The total capital budget is $2.3 billion                                                                                  
                                                                                                                                
1:28:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer pointed  out  the top  three  schools on  the                                                                   
priority list were in Representatives  Moses', Krasner's, and                                                                   
Joule's  districts.  Schools in Representatives  Foster's and                                                                   
Salmon's district would be picked up in the next year                                                                           
                                                                                                                                
1:29:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  encouraged  member's to  read  the  language                                                                   
section of  the budget. Mr.  Ecklund added that  staff should                                                                   
look for technical corrections.                                                                                                 
                                                                                                                                
1:30:27 PM                                                                                                                    
                                                                                                                                
ART   WEEKS,   TESTIFIED   VIA    TELECONFERENCE,   ANCHORAGE                                                                   
LIBRARIES, ANCHORAGE,  spoke in  support for greater  funding                                                                   
for  the  Anchorage   libraries.  He  provided   examples  of                                                                   
efficiencies  and needs.  He observed  that Girdwood  project                                                                   
has received  strong community  support; it has  received, as                                                                   
much  as,  70  percent  in local  elections.  The  people  of                                                                   
Girdwood have  committed $1 million for the  project. Another                                                                   
$1.5 million  is being requested  in the current  year, which                                                                   
should be sufficient to fund the project.                                                                                       
                                                                                                                                
1:33:24 PM                                                                                                                    
                                                                                                                                
Representative Hawker  pointed out that the  Girdwood portion                                                                   
was included in the proposed bill.                                                                                              
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
LYNN   MCNAMERA,  TESTIFIED   VIA  TELECONFERENCE,   GIRDWOOD                                                                   
COMMUNITY  CENTER,   ANCHORAGE,  spoke  in  support   of  the                                                                   
Girdwood library project.                                                                                                       
                                                                                                                                
1:35:12 PM                                                                                                                    
                                                                                                                                
RICH  POOR, JUNEAU,  spoke in  support of  retaining the  $45                                                                   
million  appropriation for  Juneau Access.  He felt  that the                                                                   
appropriation would  not result in  more costs to  the Alaska                                                                   
Marine Highway  System. He maintained that ferry  service was                                                                   
not cost effective  and that its elimination  would result in                                                                   
a savings  to the state. He  asserted that the  Juneau Access                                                                   
Road would eliminate wait time.  The total cost for the State                                                                   
would be  $88 million dollars  and includes a state  match in                                                                   
federal dollars. He emphasized  that are no replacement costs                                                                   
for replacement of  the existing ferries. He  did not believe                                                                   
the  project would  result  in  be at  the  expense of  other                                                                   
projects. He  urged to  keep the $45  million dollars  in the                                                                   
bill.                                                                                                                           
                                                                                                                                
1:39:40 PM                                                                                                                    
                                                                                                                                
MERRILL  SANFORD, JUNEAU,  offered  to answer  questions  and                                                                   
stated support for the Juneau Road Access.                                                                                      
                                                                                                                                
JIM BECKER,  JUNEAU, offered to  answer questions  and stated                                                                   
support for the Juneau Road Access                                                                                              
                                                                                                                                
RICHARD  KNAPP,  JUNEAU,  offered  to  answer  questions  and                                                                   
stated support for the Juneau Road Access                                                                                       
                                                                                                                                
1:40:48 PM                                                                                                                    
                                                                                                                                
KEVIN RITCHIE,  EXECUTIVE DIRECTOR, ALASKA  MUNICIPAL LEAGUE,                                                                   
testified  in   support  of  the  committee   substitute  and                                                                   
emphasized  that it  would help  communities on  a number  of                                                                   
issues.                                                                                                                         
                                                                                                                                
1:41:39 PM                                                                                                                    
                                                                                                                                
ORIN SEYBERT,  TESTIFIED VIA TELECONFERENCE,  ALASKA AVIATION                                                                   
MUSEUM,  ANCHORAGE,  asked reconsideration  of  the  original                                                                   
request  for museum  support  in  order to  preserve  Alaskan                                                                   
aviation  heritage.  Co-Chair  Meyer  pointed  out  that  the                                                                   
funding had been restored to the  $750 thousand dollar level.                                                                   
                                                                                                                                
1:43:38 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch asked  about restoration of Governor                                                                   
Hammond's  airplane.  Mr.  Seybert  felt  that  the  cost  to                                                                   
restore the  airplane would  be more  than $235 thousand.  He                                                                   
felt that the airplane belongs in Anchorage.                                                                                    
                                                                                                                                
1:45:06 PM                                                                                                                    
                                                                                                                                
PAUL FUHS, KUSKOKWIM ASSOCIATION,  commented on consideration                                                                   
of a formation  of a borough in the middle  Kuskokwim area in                                                                   
order to  support the mine. They  need a local  government to                                                                   
form  a tax  arrangement  with  the  mine proposal.  A  draft                                                                   
borough  plan  and  request has  been  developed.  A  borough                                                                   
feasibility  study is needed  to move forward,  at a  cost of                                                                   
$60 thousand.  The Association  is working  closely with  the                                                                   
department.                                                                                                                     
                                                                                                                                
1:47:55 PM                                                                                                                    
                                                                                                                                
EMILY   FERR,  ALASKA   TRANSPORTATION  PRIORITIES   PROJECT,                                                                   
JUNEAU, testified  on the  road access.  She referred  to the                                                                   
record of decision  from the federal Highway  Administration.                                                                   
Based on  the current funding  proposal, alternative  2b (the                                                                   
road/shuttle  ferry option) would  have a  net state  cost of                                                                   
$122 million dollars  over $35 years; double the  cost of the                                                                   
no action  alternative.  The higher  net cost  is due to  the                                                                   
state  match required  for  federal construction  funds.  The                                                                   
state of Alaska's  decided to use $57 million  in state funds                                                                   
to supplement  federal  funds, rather  than maximum  possible                                                                   
federal  assistance; the  State's  cost would  have been  $88                                                                   
million if  federal funds were  maximized. She  asserted that                                                                   
the State would  not be saved by the Juneau  Access road. The                                                                   
move would double the amount required by the State.                                                                             
                                                                                                                                
1:50:27 PM                                                                                                                    
                                                                                                                                
TOM BRICE, LABORERS,  JUNEAU, spoke in support  of the Juneau                                                                   
Access   Road.  He  maintained   the   project  would   be  a                                                                   
significant addition to the State's  transportation portfolio                                                                   
and would help the economy of Southeast Alaska.                                                                                 
                                                                                                                                
1:51:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer urged consideration of the bill and                                                                              
amendments submitted by 5 PM.                                                                                                   

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