Legislature(1993 - 1994)
04/20/1993 08:50 AM Senate 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. 50:
An Act making appropriations for capital projects; and
providing for an effective date.
Co-chair Pearce invited Commissioner Bruce Campbell,
Department of Transportation & Public Facilities to join the
members at the table Mr Campbell.
COMMISSIONER BRUCE CAMPBELL provided the committee with a
handout (copy on file) and said that the department had been
asked to explain how state and federal funds are handled to
complete projects in Alaska. He introduced Ron Lind,
Director, Plans, Programs & Budget, the Department of
Transportation & Public Facilities, to the committee. RON
LIND said that he would provide definitions for some
commonly used terms. He said "apportionment" meant Alaska's
upper limit for a category of work available for federal
funds usually over multiple years. "Authorization" meant
spending approval given by the legislature for use of either
state or federal funds. "Obligation" is a key issue and the
reason authorization is needed by the legislature. An
"obligation" is a federal government commitment to pay based
on eligible work that is performed by DOT/PF. A document is
signed for each project phase with the federal agency in
Juneau. If a project is not committed or signed up for the
year that it is available, those funds are lost. It is a
use it or lose it process. Usually the amount of money
available for obligation is less than the upper limit or
apportionment available. At the end year, if DOT/PF has
obligated or signed documents with the federal government
and Alaska cannot use the obligated dollars available, the
excess goes to other states. To date this has not occurred.
At the same time, if other states have not used all their
funds, Alaska could ask for an increase in its federal
share. In order to take advantage of those extra dollars,
DOT/PF must have work ready to go with authorizations
signed. He said that the rest of the handout explained the
typical funding process and why state authorizations are
needed. He explained that if the legislature limited DOT/PF
by making obligations project specific and if there was any
failure or delay with that specific project, there would be
no assurance that the federal obligation could be used in
that single year and the state could possibly lose federal
funds.
Mr. Lind went on to explain how DOT/PF decides which
projects are put in the capital budget each year, and how
much money is requested for match appropriations. First,
DOT/PF evaluates apportionments available by federal
category for the budget year, estimates the total obligation
(federal commitments available), projects the match
available from other remaining years of appropriation and
decides how much match is required for the budget year. The
six year plan process prioritizes projects to insure that
the funds available are used and allows for increase of
funds or projects that can be substituted if a delay should
occur in a project. All projects must be identified as
already authorized, needing initial authorization or an
increase of authorization.
End SFC-93 #64, Side 1
Begin SFC-93 #64, Side 2
Mr. Lind went on to explain DOT/PF's expenditures over the
past years and the need for additional authorizations in the
next few years. In answer to Senator Rieger, Mr. Lind said
that DOT/PF has enough projects ready to go to construction
(which have already gone through the steps of location,
design, right-of-way) that the state could take advantage of
additional federal funds if available. Mr. Campbell said
that a step-by-step process was definitely followed to
insure federal funding. In answer to Senator Rieger, Mr.
Lind said that he felt the state legislature could add any
project that it desired, but before any actual work could be
done, AMATS would have to amend its plan, decide to adopt
the project into their plan, and make it part of the work.
Outside of the AMATS area, the legislature can add any
federal authorization for any eligible work in a borough or
an unorganized borough realizing that the maximum level of
activity must be governed by location, environment issues,
and design. Another possible delay could be the required
public input process.
In discussing construction of the new marine highway vessel,
Senator Kelly said that DOT/PF is using an $80 million
figure, while a consultant who had come before the committee
and said that the project would total $89 million. He asked
how DOT/PF would acquire the total $89 million before
smaller obligations were approved. Co-chair Pearce said
there were various plans to finance the new ferry vessel,
including the Exxon settlement bill for $5 million. She
said that the House would rather take $7 million out of the
mitigation account this year for the ferry because at the
end of the year, the remainder of the mitigation account
will go into the 470 fund. Mr. Lind said that DOT/PF was
requesting an authorization for $60 million for the ferry.
Discussion was had by Senators Kelly, Kerttula and Co-chair
Pearce regarding the total cost of the new ferry.
Recess 9:20am
Reconvene 9:50am
| Document Name | Date/Time | Subjects |
|---|