Legislature(1997 - 1998)
03/24/1998 06:00 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 461
"An Act making supplemental and special appropriations;
and providing for an effective date."
CS FOR HOUSE BILL NO. 461(FIN)
"An Act making supplemental and special appropriations
and amending appropriations; and providing for an
effective date."
Co-chair Pearce introduced SCS CSHB 461(FIN), work draft,
that had already been adopted by the committee. She advised
the committee that it was before them for any questions and
discussion the committee may have but there would be no
public testimony. Attached to the work draft was a copy of
a spread sheet from Legislative Finance and how the bill
currently looked. There were some proposed amendments also
in members' files.
Senator Donley requested that the Department of Fish and
Game come to the table. The committee was advised that the
front door of the building was locked and they were
temporarily waiting for departmental personnel to arrive.
Co-chair Pearce then said they would go to amendments.
Senator Phillips MOVED amendment #6. Senator Torgerson
OBJECTED. Senator Phillips said the amendment would provide
funds to redo the Tok Cut-off. He felt this was a project
that needed to be done as soon as possible. Senator
Torgerson said that if the committee was really serious
about rewriting projects in the STIP and coming forth with
projects that had been ignored around the State it was not
proper to take $9 million off the table. This was just a
project that was brought forward by the department. He
referred to a letter from the Commissioner just handed out
to committee members regarding the Soldotna Bridge that was
going to have to go on weight restrictions and the promise
that they would take care of that with first available
funding. There were many other repair projects and this
request did not stand any test as far as ranking amongst
other projects around the State.
Senator Adams said under the Alaska National Highways
system, this section of road was the worst section. He
concurred with the amendment because it would help in public
safety. It would also help in long-term economic
development of the roads for tourism. He also agrees with
his colleague from Kasilof and noted that all three
amendments were good projects.
Senator Sharp said that in Commissioner Perkins' letter it
was stated that the project was contained in the 1998 STIP.
Senator Torgerson responded saying that a couple of projects
had been moved up and it was a combination from 1998.
Senator Sharp said his question was if it was included in
the 1998 STIP as a project as stated in the Commissioner's
letter, was it included for the amount of money being talked
about now? He did not understand why it was being brought
up now.
NANCY SLAGLE, Director, Administrative Services, Department
of Transportation and Public Facilities was invited to join
the committee. She said the 1998 capital budget was based
on a STIP that was developed several years ago. She said it
included several projects due for construction between the
years 2000 and 2004. She noted deterioration of the road
and weather conditions and said several of those projects
were consolidated into one single project now showing in the
1998 to 2000 STIP. This was approved by the Federal Highway
Administration in February.
Senator Sharp said he did not get a total calculation from
the Department of Transportation of all the monies put into
the Tok Highway since 1989. He noted that over the past
years approximately $15 million to $25 million per year have
been put into that road. If it has not held up then there
are serious problems.
Senator Donley concurred with Senator Sharp. He felt the
problem was there was no technology to rebuild the road and
make it stick. He said it was on the edge of permafrost.
He said he had not been convinced by the department that
they had a plan to deal with this problem. He further did
not understand why it was put in the fast-track
supplemental. He asked Ms. Slagle that if the committee
authorized the requested amount of money how much could they
spend before the end of this fiscal year? Ms. Slagle said
not all of it could be spent before 30 June. The department
would spend it all during this construction season. They
need the authority to go out to bid and then award a
contract prior to 30 June. That's why they need all the
funds the sooner the better so the project could be
completed during the construction season.
Senator Donley voiced his continued concern. He said this
project did not rise to the level to be the only road
project in the fast-track supplemental. There were other
road projects needing quicker attention.
Senator Phillips recalled the only repair to the road was
fourteen miles done in 1984 - 1985. The rest went back to
the mid-60's. He said much of the road was its original
construction.
Senator Parnell asked if anything extraordinary happened to
the Tok Highway in the last six month to one year that was
not anticipated before? Ms. Slagle said the weather
conditions of last summer aggravated the problems that were
found on the road. It had caused a larger concern on the
part of those who had to travel it, including the
independent traveler and the trucking industry. Senator
Parnell said he shared the concerns of Senators Donley and
Torgerson. However, he felt that there were other roads
that could be considered in the fast-track supplemental.
Senator Sharp said there had been promises made that the
original section of the Alaska Highway road was going to be
repaired for the past five years. He noted how narrow the
road was and that said there was not ten inches of shoulder
either side of the road. He said however, that he would
vote in favor of this amendment because the road was a vital
link to get the tourists into Anchorage and Fairbanks.
Senator Donley said he would like to vote in favor of this
amendment but he did not see the distinction of this road
and other really imperative transportation projects around
the State. He felt the department had not made a good case
and said the department had such a bizarre record in how
they had manipulated the STIP over the years.
Senator Torgerson said he thought the debate had been good
and had no objection to seeing the project going forward,
however, not in this form. In referring again to the
Soldotna River bridge he said it had been constructed in
1962 and felt it would rank higher than the Tok Highway
project.
Senator Phillips reiterated this was the worst section of
the road. Both international truckers and American Customs
had complained to him regarding the condition of the road.
By a roll call vote of four yeas (Pearce, Sharp, Phillips,
Adams) and three nays (Torgerson, Parnell, Donley) amendment
Senator Adams MOVED amendment #7. Co-chair Pearce objected.
By a roll call vote of one yea (Adams) and six nays (Pearce,
Sharp, Donley, Torgerson, Parnell, Phillips) amendment #7
FAILED.
Senator Torgerson MOVED amendment #8. Senator Sharp
OBJECTED. Senator Torgerson explained that these were
projects promised by the Department of Transportation. The
Kenai Bridge needed to have been done a long time ago. Co-
chair Pearce asked if the bridge project had been
authorized. Senator Torgerson said it was in the STIP on
page eight.
Senator Donley felt the amendment included two projects and
it therefore should be divided. Amendment #8(A) would
become the Soldotna Urban and Kenai River Bridge and
amendment 8(B) would become the Funny River Road. (pause on
record) Senator Donley MOVED the division of amendment #8
as explained and WITHOUT OBJECTION it was so ORDERED.
Senator Parnell asked if this was different that the
previous amendment. Co-chair Pearce indicated that this was
a request by the Administration but did not mean that the
Senate Finance Committee had to include it as she was
uncomfortable adding new projects. The whole mission was to
cut down the supplemental to fit into $16.5 million. To
begin adding back, in her opinion, in budget parlance, was
going in the wrong direction. She did, however, understand
Senator Torgerson's frustration with the Department of
Transportation. She asked for the correct figures before
the committee took any action.
Senator Torgerson advised the correct numbers for amendment
Federal funds and $805,000 general fund match.
Co-chair Pearce asked Senator Sharp, since he was doing the
capital budget if he had any comments. Senator Sharp said
with the flexibility the department showed in regards to the
STIP, therefore the committee was entitled to some
flexibility when writing the budget and what is put in the
STIP.
Senator Torgerson moved amendment #8(A) and by a roll call
vote of four yeas (Donley, Torgerson, Parnell, Adams) and
three nays (Pearce, Sharp, Phillips) it was ADOPTED.
Senator Torgerson then advised the correct numbers for
amendment #8(B). The breakdown for the amount of $4,200,000
was: $3,820,800 Federal funds and $379,200 in general
funds. Senator Sharp moved that #8(B) be amended to take
the GF out of SLA 1996 GF, same as in the description of the
Tok Highway. Senator Adams OBJECTED and then WITHDREW his
objection. WITHOUT OBJECTION amended amendment #8(B) was
AMENDED.
Senator Torgerson MOVED amended amendment #8(B) and by a
roll call vote of three yeas ((Sharp, Torgerson, Phillips)
and four nays (Pearce, Donley, Adams, Parnell) FAILED.
Senator Sharp MOVED to RESCIND adoption of amendment #8(A).
Senator Torgerson OBJECTED and then WITHDREW his objection.
WITHOUT OBJECTION action on amendment #8(A) was RESCINDED.
Senator Sharp MOVED to amend amendment #8(A) by
reappropriating $805,000 GF be taken out of SLA 1996 GF.
Co-chair Pearce requested the committee take an at ease.
Upon reconvening the committee a roll call vote was taken on
amended amendment #8(A). By a vote of six yeas (Sharp,
Adams, Parnell, Torgerson, Donley, Phillips) and one nay
(Pearce) amended amendment #8(A) was ADOPTED.
Co-chair Pearce requested the committee take another at
ease. She reconvened the committee at approximately 11:00
p.m.
Senator Donley MOVED to RESCIND committee action on
amendment #6. Senator Torgerson OJBECTED. By a roll call
vote of five yeas (Pearce, Sharp, Donley, Phillips, Parnell)
and two nays (Torgerson, Adams) committee action on
amendment #6 was RESCINDED.
Senator Donley MOVED rescinded amendment #6 and by a roll
call vote of six yeas (Pearce, Sharp, Donley, Phillips,
Adams, Parnell) and one nay (Torgerson) it was ADOPTED.
Senator Sharp MOVED to RESCIND committee action on amended
amendment #8(A). Senator Torgerson OBJECTED. By a roll
call vote five yeas and two nays it was RESCINDED. Senator
Sharp MOVED amended amendment #8(A) and by a roll call vote
of two yeas (Torgerson, Adams) and five nays (Pearce, Sharp,
Parnell, Donley, Phillips) it FAILED.
(Tape #96, Side B switched to Tape #97, Side A.)
Senator Adams MOVED amendment #10. He said the amount of
$199,500 would be appropriated from the general fund, of
which the sum of $102.700 would go to the Department of Law
for the tort reform constitutional challenge and the sum of
$56,800 be appropriated form the general fund for the
Department of Fish and Game for land lease costs at the
Sikusuiliaq Hatchery for the fiscal year ending June 30,
1998. Senator Donley OBJECTED. Senator Adams spoke to his
amendment. Senator Donley asked Senator Adams to explain
why the amount of $56,800 was needed. Senator Adams said
2.5 acres of land was leased from a private individual by
the State of Alaska for a hatchery. It was not funded and
therefore is passed lease payments that are owned to an
individual. In further response to Senator Donley, Senator
Adams said the hatchery was closed now. This was monies
owed to the individual. By a roll call vote of one yea
(Adams) and six nays (Pearce, Sharp, Donley, Torgerson,
Parnell, Phillips) amendment #10 FAILED.
Senator Donley advised Co-chair Pearce at this time he would
not be offering amendment #9.
Senator Donley requested the Department of Fish and Game be
called to join the committee.
KEVIN BROOKS, Director, Administrative Services, Department
of Fish and Game was invited to join the committee. Senator
Donley asked him to explain "commercial fish" and "sport
fish" for the committee because the department had a very
confusing relationship between the two regarding funding.
He said there were certain Federal requirements regarding
the segregation of those funds. Senator Donley said he had
asked the Commissioner for a clarification but received only
a philosophical reply. He said he knew sport funds were
used indirectly but wanted to be assured they were not being
used improperly.
Mr. Brooks said the particular receipts in question for the
Sitka Test Fishery were test fisheries receipts and were
created last year. They were generated by the department
contracting a vessel to go out and commercially fish prior
to the opening of a fishery. Those fish taken were then
sold under the department's fish ticket and the funds were
used for management of that fishery. He said this had
nothing to do with the Fish and Game fund or Federal aid
dollars. It is a specific, distinct funding source, used
exclusively in the "com fish" side of the department.
Senator Donley said he understood that, but was afraid the
department was using sport fish funds to cover
administrative costs. Mr. Brooks said approximately six
percent of all contracts was assessed for an administrative
overhead which was covered by Federal aid dollars. Fish and
Game funds were used within the Division of Administrative
Services primarily to run the licensing program to license
anglers and hunters throughout the State. The third piece
of the budget was made up of general funds which is just
under $1 million. That money benefits all divisions within
the department. He further noted that every project they do
and every use of the dollars has to be approved by the
Federal granting agencies. This was a fairly vigorous
approval process for expenditure of those funds. They not
only go through a process with the State Legislature but
also the Federal granting agencies.
Senator Parnell asked about the Bristol Bay incident wherein
fishermen were concerned about the State using a seiner in
the area and further that the waters were closed to
commercial fishermen. He wanted to know how these receipts
were related to the Sitka herring roe; if these were
receipts from test fisheries in Southeast or were they
Statewide receipts. Mr. Brooks said the receipts for the
Sitka herring fishery would occur in Sitka. Receipts were
kept by region or area. Any receipts generated in Bristol
Bay would be used in Bristol management.
Senator Sharp MOVED SCS CSHB 461(FIN) and WITHOUT OBJECTION
it was REPORTED OUT with individual recommendations.
Co-chair Pearce reviewed the schedule for tomorrow,
indicating the committee would meet again at 10:00 a.m. and
4:30 p.m.
ADJOURNMENT
Co-chair Pearce thanked fellow Senators and all staff for
remaining in session late into the evening. She recessed
the committee at approximately 11:30 p.m.
SFC-98 -1- 3/24/98
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