Legislature(1993 - 1994)

05/02/1994 08:30 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 2, 1994                                         
                            8:30 A.M.                                          
                                                                               
  TAPE HFC 94 - 150, Side 1, #000 - end.                                       
  TAPE HFC 94 - 150, Side 2, #000 - #260.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Therriault                      
  Co-Chair MacLean              Representative Martin                          
  Representative Foster         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf                                                   
                                                                               
  Representatives Hanley and Hoffman were  not present for the                 
  meeting.                                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  John  Davies;  Representative Jerry  Mackie;                 
  Sherrie Goll, Fairbanks  Alliance for People, Anchorage  In-                 
  Service   Coalition,   Juneau;   Elmer  Lindstrom,   Special                 
  Assistant,  Department of Health  and Social Services; Wendy                 
  Redman, Vice President for  University Relations, University                 
  of Alaska; Will Gay, (Testified via teleconference),  Alaska                 
  Housing Finance Corporation, Anchorage; Alison Elgee, Budget                 
  Director, University of Alaska, Anchorage.                                   
                                                                               
  SUMMARY                                                                      
  SB 368    An Act  relating to  the human  services community                 
            matching  grant  program;  and  providing  for  an                 
            effective date.                                                    
                                                                               
            SB  368  was reported  out  of Committee  with "no                 
            recommendation" and with a zero fiscal note by the                 
            Department  of Health  and  Social Services  dated                 
            4/08/94.                                                           
  HB 466    An Act authorizing  the issuance  of bonds by  the                 
            Alaska  Housing Finance Corporation to pay for the                 
            costs  of  repair  and  rehabilitation of  student                 
            housing facilities  of the  University of  Alaska;                 
            authorizing   the  issuance   of   bonds  by   the                 
            University  of  Alaska  to pay  for  the  costs of                 
                                                                               
                                1                                              
                                                                               
                                                                               
            repair  and  rehabilitation of  facilities  of the                 
            University  of  Alaska;  amending  powers  of  the                 
            Alaska Housing Finance  Corporation; amending  the                 
            definition of "public  building"; relating to  the                 
            Alaska debt retirement fund;  and providing for an                 
            effective date.                                                    
                                                                               
            HB  466   was  HELD   in  Committee  for   further                 
            consideration.                                                     
  SENATE BILL 368                                                              
                                                                               
       "An  Act  relating  to  the  human  services  community                 
       matching grant program; and providing  for an effective                 
       date."                                                                  
                                                                               
  Representative Therriault  endorsed  SB  368  introduced  by                 
  Senator  Bert  Sharp.   The  Anchorage and  Fairbanks Social                 
  Service Block  Grants were  created in  the early 1980's  to                 
  provide those communities  with state assistance  for needed                 
  social services.   In addition  to serving local  residents,                 
  approximately 11% of the total clients and as many as 73% of                 
  clients served by some local providers would come from other                 
  areas within the State.                                                      
                                                                               
  He added, in 1992, a statutory basis was established for the                 
  Human  Services  Community  Matching  Grant  Program.    The                 
  program   required   an  increased   match   rate,  although                 
  previously  no  local  match was  required.   Representative                 
  Therriault  noted  that   local  municipalities  are  seeing                 
  reductions of municipal assistance  and revenue sharing, and                 
  that the  proposed legislation would  stabilize the matching                 
  grants at the 30/70 percent match rate which would bring the                 
  Human  Services Community  Matching Grant Program  into line                 
  with other programs that require matching funds.                             
                                                                               
  Co-Chair MacLean questioned  why the grant would  cover only                 
  Fairbanks and Anchorage.                                                     
                                                                               
  SHERRIE GOLL,  FAIRBANKS ALLIANCE FOR PEOPLE,  THE ANCHORAGE                 
  IN-SERVICE COALITION, JUNEAU, explained that the statute was                 
  not written so that it would  exclude other communities.  It                 
  was  written to  address the  greatest  population baseline.                 
  The only communities which qualify in that baseline would be                 
  Anchorage  and  Fairbanks  which are  the  only  communities                 
  required  to  provide a  match.   She  added that  the other                 
  grants  in the  human  service block,  which  are not  state                 
  provided are in the BRU's for the various rural communities.                 
  There are not required to make a match.                                      
                                                                               
  Representative  Therriault commented  that the  block grants                 
  had statutory authority.   The balance was then  assigned to                 
                                                                               
                                2                                              
                                                                               
                                                                               
  departmental  BRU's  and  the large  municipalities  did not                 
  participate in that funding.                                                 
                                                                               
  Co-Chair  MacLean  predicted  that there  would  be  a state                 
  fiscal impact.   Representative Therriault replied  that the                 
  request  would   match  current  fiscal   year  percentages.                 
  Representative Brown spoke in support of the Anchorage human                 
  service  grant program  which  provides  vital  services  to                 
  people in need.                                                              
                                                                               
  ELMER LINDSTROM,  SPECIAL  ASSISTANT  TO  THE  COMMISSIONER,                 
  DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  reiterated that                 
  there would be  no fiscal impact  to the State although  the                 
  measure  could  have  an  effect   of  reducing  the  amount                 
  available for projects if the  municipalities do not provide                 
  a higher match level.                                                        
                                                                               
  Representative  Parnell  MOVED  to  report  SB  368  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  SB   368   was   reported   out   of  Committee   with   "no                 
  recommendations"  and  with  a  zero   fiscal  note  by  the                 
  Department of Health and Social Services dated 4/08/94.                      
  HOUSE BILL 466                                                               
                                                                               
       "An Act authorizing the issuance of bonds by the Alaska                 
       Housing Finance  Corporation to  pay for  the costs  of                 
       repair and rehabilitation of student housing facilities                 
       of the  University of Alaska;  authorizing the issuance                 
       of bonds by  the University  of Alaska to  pay for  the                 
       costs of repair and rehabilitation of facilities of the                 
       University  of  Alaska; amending  powers of  the Alaska                 
       Housing Finance Corporation; amending the definition of                 
       "public  building";   relating  to   the  Alaska   debt                 
       retirement fund; and providing for an effective date."                  
                                                                               
  WENDY  REDMAN,  VICE  PRESIDENT  FOR  UNIVERSITY  RELATIONS,                 
  UNIVERSITY OF ALASKA, ANCHORAGE, explained that HB 466 would                 
  include authorization for  $30 million  dollars in bonds  to                 
  construct  student  housing at  the  Anchorage campus.   She                 
  added that student housing has been an UAA's capital request                 
  for a number of years.  UAA's  384 beds can accommodate only                 
  2.6% of the student needs.   The current demand was measured                 
  by a student survey which indicated a need for an additional                 
  2000  beds.    The  proposed  funding  would enable  UAA  to                 
  construct  600 dormitory  beds as well  as common  areas for                 
  food service, study, lounge and laundry facilities.                          
                                                                               
  Ms. Redman  continued, that the legislation  would authorize                 
                                                                               
                                3                                              
                                                                               
                                                                               
  the Alaska Housing Finance Corporation  to issue $30 million                 
  dollars   in   bonds   for   student   housing  repair   and                 
  rehabilitation of other university  facilities.  The program                 
  would allow buildings to be constructed with the cost spread                 
  over the remaining life of the facilities.                                   
                                                                               
  Ms.  Redman  provided  Committee  members  with  a  list  of                 
  priority projects.  [Copy  on file].  Repayment of  the debt                 
  service will be made from annual  legislative appropriations                 
  from the Alaska debt retirement fund (AS 37.05.011).                         
                                                                               
  Co-Chair MacLean inquired  who would be responsible  for the                 
  cost of the payment.  Ms. Redman replied that the bill would                 
  direct that  the Alaska  debt retirement  fund  pay for  the                 
  bond.   Those payments would appear in the FY96 budget.  She                 
  added that the total deferred  maintenance need in Anchorage                 
  amounted to $22 million dollars.                                             
                                                                               
  Representative Brown questioned  the zero fiscal note.   Ms.                 
  Redman noted there would be no  payment in FY95.  Discussion                 
  followed  regarding  the fiscal  impact of  the legislation.                 
  Ms.  Redman explained  that no revenue  is generated  on the                 
  facilities except for  student housing  and that revenue  is                 
  placed into the costs of operations and maintenance of those                 
  facilities.                                                                  
                                                                               
  Representative Brown asked the cost to the State without the                 
  legislation.   Ms. Redman  replied that  it would total  the                 
  cost  of protecting  the infrastructure.    Co-Chair MacLean                 
  argued  that  additional  costs would  exist  for  any state                 
  facilities.    Ms. Redman  reminded  the Committee  that she                 
  spoke for the student body and that deferred maintenance was                 
  their number one priority.   Co-Chair MacLean criticized the                 
  University's level of financial support  in the FY95 budget.                 
  She did not feel they should be requesting additional funds.                 
                                                                               
                                                                               
  WILL  GAY, (TESTIFIED  VIA  TELECONFERENCE), ALASKA  HOUSING                 
  FINANCE  CORPORATION, ANCHORAGE,  noted that  Alaska Housing                 
  Finance  Corporation  (AHFC)   would  support  the   bonding                 
  requested by the  legislation.  HB  466 would allow AHFC  to                 
  exchange assets for  a chance to  have income to offset  the                 
  transfer.                                                                    
                                                                               
  Representative  Brown asked  how  the  bonding debt  service                 
  would  be  paid.   Mr.  Gay  responded the  bill  provided a                 
  section defining  the special  obligations originating  from                 
  revenue  and  receipts  derived  under  agreement  with  the                 
  University  of  Alaska  as  described  and provided  by  the                 
  University's budget and student housing payments.                            
                                                                               
  Representative   Therriault    reiterated   that    deferred                 
                                                                               
                                4                                              
                                                                               
                                                                               
  maintenance was the  number one priority of  the University,                 
  stressing that it is  a problem which will continue  to grow                 
  if not addressed.  The Board  of Regents has guaranteed that                 
  once the  problem is  remedied, they  will not  allow it  to                 
  occur again.                                                                 
                                                                               
  (Tape Change, HFC 94-150, Side 2).                                           
                                                                               
  Co-Chair  MacLean  provided  the  Committee  with a  handout                 
  itemizing the Department of Education's deferred maintenance                 
  project list requested statewide from  K - University level.                 
  She suggested that  these projects  should be considered  in                 
  addition  to  the University's  projects.   [Copy  on file].                 
  Representative  Therriault  strongly  opposed  the  list  as                 
  provided by Co-Chair MacLean.   Co-Chair MacLean stated that                 
  this legislation would be a policy call.                                     
                                                                               
  REPRESENTATIVE JOHN DAVIES deliberated on concerns impacting                 
  the University's deferred maintenance which have resulted in                 
  action by the University to request bonding.  He recommended                 
  that adding Co-Chair MacLean's list  would negatively impact                 
  the legislation's  passage.   Discussion followed  regarding                 
  incorporation of the maintenance projects for K-12 to HB 466                 
  and how that would impact the bills passage.                                 
                                                                               
  HB 466 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 9:50 A.M.                                           
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 2, 1994                                         
                            8:30 A.M.                                          
                                                                               
  TAPE HFC 94 - 150, Side 1, #000 - end.                                       
  TAPE HFC 94 - 150, Side 2, #000 - #260.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance  Committee meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Therriault                      
  Co-Chair MacLean              Representative Martin                          
  Representative Foster         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf                                                   
                                                                               
  Representatives Hanley and Hoffman were  not present for the                 
                                                                               
                                5                                              
                                                                               
                                                                               
  meeting.                                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  John  Davies;  Representative Jerry  Mackie;                 
  Sherrie Goll, Fairbanks  Alliance for People,  Anchorage In-                 
  Service   Coalition,   Juneau;   Elmer  Lindstrom,   Special                 
  Assistant, Department of Health  and Social Services;  Wendy                 
  Redman, Vice President  for University Relations, University                 
  of Alaska; Will Gay,  (Testified via teleconference), Alaska                 
  Housing Finance Corporation, Anchorage; Alison Elgee, Budget                 
  Director, University of Alaska, Anchorage.                                   
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 368    An  Act relating to  the human  services community                 
            matching  grant  program;  and  providing  for  an                 
            effective date.                                                    
                                                                               
            SB  368  was reported  out  of Committee  with "no                 
            recommendation" and with a zero fiscal note by the                 
            Department  of  Health and  Social  Services dated                 
            4/08/94.                                                           
                                                                               
  HB 466    An Act authorizing  the issuance  of bonds by  the                 
            Alaska Housing Finance Corporation  to pay for the                 
            costs  of  repair  and rehabilitation  of  student                 
            housing facilities  of the  University of  Alaska;                 
            authorizing   the  issuance   of   bonds  by   the                 
            University  of  Alaska  to pay  for  the  costs of                 
            repair  and  rehabilitation of  facilities  of the                 
            University  of  Alaska;  amending  powers  of  the                 
            Alaska Housing Finance  Corporation; amending  the                 
            definition of "public  building"; relating to  the                 
            Alaska debt retirement fund; and  providing for an                 
            effective date.                                                    
                                                                               
            HB  466   was  HELD   in  Committee   for  further                 
            consideration.                                                     
                                                                               
  SENATE BILL 368                                                              
                                                                               
       "An  Act  relating  to  the  human  services  community                 
       matching grant program; and providing for  an effective                 
       date."                                                                  
                                                                               
  Representative Therriault  endorsed  SB  368  introduced  by                 
  Senator  Bert  Sharp.   The  Anchorage and  Fairbanks Social                 
  Service  Block Grants  were created in  the early  1980's to                 
  provide those communities with  state assistance for  needed                 
  social services.   In addition  to serving local  residents,                 
  approximately 11% of the total clients and as many as 73% of                 
                                                                               
                                6                                              
                                                                               
                                                                               
  clients served by some local providers would come from other                 
  areas within the State.                                                      
                                                                               
  He added, in 1992, a statutory basis was established for the                 
  Human  Services  Community  Matching  Grant  Program.    The                 
  program   required  an   increased   match  rate,   although                 
  previously  no  local match  was  required.   Representative                 
  Therriault  noted  that  local  municipalities  are   seeing                 
  reductions of municipal assistance and revenue  sharing, and                 
  that the  proposed legislation would stabilize  the matching                 
  grants at the 30/70 percent match rate which would bring the                 
  Human Services  Community Matching  Grant Program  into line                 
  with other programs that require matching funds.                             
                                                                               
  Co-Chair MacLean questioned  why the grant would  cover only                 
  Fairbanks and Anchorage.                                                     
                                                                               
  SHERRIE GOLL,  FAIRBANKS ALLIANCE FOR  PEOPLE, THE ANCHORAGE                 
  IN-SERVICE COALITION, JUNEAU, explained that the statute was                 
  not written so that it would  exclude other communities.  It                 
  was  written  to address  the greatest  population baseline.                 
  The only communities which qualify in that baseline would be                 
  Anchorage  and  Fairbanks  which  are  the only  communities                 
  required  to  provide a  match.   She  added that  the other                 
  grants  in  the human  service  block, which  are  not state                 
  provided are in the BRU's for the various rural communities.                 
  There are not required to make a match.                                      
                                                                               
  Representative Therriault  commented that  the block  grants                 
  had statutory authority.  The  balance was then assigned  to                 
  departmental  BRU's and  the  large  municipalities did  not                 
  participate in that funding.                                                 
                                                                               
  Co-Chair  MacLean  predicted  that there  would  be  a state                 
  fiscal impact.   Representative Therriault replied that  the                 
  request  would   match  current  fiscal   year  percentages.                 
  Representative Brown spoke in support of the Anchorage human                 
  service  grant  program  which provides  vital  services  to                 
  people in need.                                                              
                                                                               
  ELMER LINDSTROM,  SPECIAL  ASSISTANT  TO  THE  COMMISSIONER,                 
  DEPARTMENT OF HEALTH  AND SOCIAL  SERVICES, reiterated  that                 
  there would be  no fiscal impact  to the State although  the                 
  measure  could  have  an  effect   of  reducing  the  amount                 
  available for projects if the  municipalities do not provide                 
  a higher match level.                                                        
                                                                               
  Representative  Parnell  MOVED  to  report  SB  368  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal  note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  SB   368   was   reported   out   of  Committee   with   "no                 
  recommendations"  and  with  a  zero   fiscal  note  by  the                 
  Department of Health and Social Services dated 4/08/94.                      
                                                                               
  HOUSE BILL 466                                                               
                                                                               
       "An Act authorizing the issuance of bonds by the Alaska                 
       Housing Finance  Corporation to  pay for  the costs  of                 
       repair and rehabilitation of student housing facilities                 
       of the  University of Alaska; authorizing  the issuance                 
       of bonds by  the University  of Alaska to  pay for  the                 
       costs of repair and rehabilitation of facilities of the                 
       University of  Alaska; amending  powers  of the  Alaska                 
       Housing Finance Corporation; amending the definition of                 
       "public   building";  relating   to  the   Alaska  debt                 
       retirement fund; and providing for an effective date."                  
                                                                               
  WENDY  REDMAN,  VICE  PRESIDENT  FOR  UNIVERSITY  RELATIONS,                 
  UNIVERSITY OF ALASKA, ANCHORAGE, explained that HB 466 would                 
  include authorization for  $30 million  dollars in bonds  to                 
  construct  student  housing at  the  Anchorage campus.   She                 
  added that student housing has been an UAA's capital request                 
  for a number of years.  UAA's  384 beds can accommodate only                 
  2.6% of the student needs.   The current demand was measured                 
  by a student survey which indicated a need for an additional                 
  2000  beds.    The  proposed  funding  would  enable UAA  to                 
  construct 600  dormitory beds  as well as  common areas  for                 
  food service, study, lounge and laundry facilities.                          
                                                                               
  Ms.  Redman continued, that  the legislation would authorize                 
  the Alaska Housing Finance Corporation  to issue $30 million                 
  dollars   in   bonds   for   student   housing   repair  and                 
  rehabilitation of other university  facilities.  The program                 
  would allow buildings to be constructed with the cost spread                 
  over the remaining life of the facilities.                                   
                                                                               
  Ms.  Redman  provided  Committee  members  with  a  list  of                 
  priority projects.  [Copy  on file].  Repayment of  the debt                 
  service will be made from annual legislative  appropriations                 
  from the Alaska debt retirement fund (AS 37.05.011).                         
                                                                               
  Co-Chair MacLean inquired  who would be responsible  for the                 
  cost of the payment.  Ms. Redman replied that the bill would                 
  direct  that the  Alaska  debt retirement  fund pay  for the                 
  bond.  Those payments would appear in  the FY96 budget.  She                 
  added that the total deferred  maintenance need in Anchorage                 
  amounted to $22 million dollars.                                             
                                                                               
  Representative Brown questioned  the zero fiscal note.   Ms.                 
  Redman noted there would be no  payment in FY95.  Discussion                 
  followed regarding  the  fiscal impact  of the  legislation.                 
  Ms. Redman explained  that no  revenue is  generated on  the                 
                                                                               
                                8                                              
                                                                               
                                                                               
  facilities except for  student housing  and that revenue  is                 
  placed into the costs of operations and maintenance of those                 
  facilities.                                                                  
                                                                               
  Representative Brown asked the cost to the State without the                 
  legislation.   Ms. Redman  replied that  it would  total the                 
  cost  of  protecting the  infrastructure.   Co-Chair MacLean                 
  argued  that  additional  costs would  exist  for  any state                 
  facilities.    Ms. Redman  reminded  the Committee  that she                 
  spoke for the student body and that deferred maintenance was                 
  their number one priority.   Co-Chair MacLean criticized the                 
  University's level of financial support  in the FY95 budget.                 
  She did not feel they should be requesting additional funds.                 
                                                                               
                                                                               
  WILL  GAY,  (TESTIFIED VIA  TELECONFERENCE),  ALASKA HOUSING                 
  FINANCE CORPORATION,  ANCHORAGE, noted  that Alaska  Housing                 
  Finance  Corporation   (AHFC)  would  support   the  bonding                 
  requested by the  legislation.  HB  466 would allow AHFC  to                 
  exchange assets for  a chance to  have income to offset  the                 
  transfer.                                                                    
                                                                               
  Representative Brown  asked  how the  bonding  debt  service                 
  would  be  paid.   Mr.  Gay  responded the  bill  provided a                 
  section defining  the special  obligations originating  from                 
  revenue  and  receipts  derived  under  agreement  with  the                 
  University  of  Alaska  as  described  and provided  by  the                 
  University's budget and student housing payments.                            
                                                                               
  Representative   Therriault    reiterated   that    deferred                 
  maintenance was the  number one priority of  the University,                 
  stressing that it is  a problem which will continue  to grow                 
  if not addressed.  The Board  of Regents has guaranteed that                 
  once the  problem is  remedied, they  will not  allow it  to                 
  occur again.                                                                 
                                                                               
  (Tape Change, HFC 94-150, Side 2).                                           
                                                                               
  Co-Chair  MacLean  provided  the  Committee  with  a handout                 
  itemizing the Department of Education's deferred maintenance                 
  project list requested statewide from  K - University level.                 
  She suggested that  these projects  should be considered  in                 
  addition  to  the University's  projects.   [Copy  on file].                 
  Representative  Therriault  strongly  opposed  the  list  as                 
  provided by Co-Chair MacLean.   Co-Chair MacLean stated that                 
  this legislation would be a policy call.                                     
                                                                               
  REPRESENTATIVE JOHN DAVIES deliberated on concerns impacting                 
  the University's deferred maintenance which have resulted in                 
  action by the University to request bonding.  He recommended                 
  that adding Co-Chair MacLean's list would  negatively impact                 
  the legislation's  passage.   Discussion followed  regarding                 
                                                                               
                                9                                              
                                                                               
                                                                               
  incorporation of the maintenance projects for K-12 to HB 466                 
  and how that would impact the bills passage.                                 
                                                                               
  HB 466 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 9:50 A.M.                                           
                                                                               
                                                                               
                               10                                              

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