Legislature(2001 - 2002)
05/05/2002 01:04 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 247
"An Act making capital appropriations and reappropriations,
and capitalizing 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."
PAT CARLSON, Borough Manager, Kodiak Island Borough, testified via
teleconference from Kodiak, in support of renovations and upgrades
to earthquake and Tsunami evacuation programs, sewer and water
projects in outlying communities as well as upgrades to the
Department of Fish and Game Kodiak Island Building. He continued
that other projects needing support include college and high school
vocational technical programs, fish stock surveys, and school
facilities upgrades to meet compliance needs.
DONNA MATTHEWS, Museums Alaska, testified via teleconference from
Anchorage, about the private non-profit organization formed to
represent over 75 museums and cultural centers in the State. She
requested support for an amendment to provide necessary funds to
acquire vacant land adjacent to the Alaska State Museum. She stated
this purchase would provide needed space for State Archives, the
State Historical Library collections and expansion of the museum,
as current facilities are in need of repair and collections have
outgrown storage and exhibition space. She stressed that
preservation and safe storage of historical documents and items are
crucial to the citizens of the State.
JANET MITCHELL testified from an off-net location in Cooper Landing
to encourage support for Alaska Housing Finance Corporation, senior
citizen housing projects.
AT EASE 1:12 PM / 1:20 PM
LINDA FREED, City of Kodiak, testified via teleconference from
Kodiak, in support of all the capital projects in the Kodiak Island
district included in the draft committee substitute. She informed
that the City of Kodiak is contributing $2.4 million matching funds
to ensure completion of the Monashka Dam enlargement project. In
addition, she stated the City is appropriating $1.6 million in
matching funds for the Selief Lane Reconstruction project, and
$50,000 matching funds for the Kodiak Ambulance Purchase. She
indicated support for State funding for the Kodiak Guardrail
Warning Sign Project and the Kodiak Maritime Museum Guide.
GLENN ELISON, President, Conservation Fund, testified via
teleconference from Anchorage about the non-profit organization
dedicated to fish and wildlife habitat conservation. He requested
$291,000 authorized by the Exxon Valdez Oil Spill Trustee Counsel
be used to purchase a 20-acre parcel along the Anchor River to
provide stream bank protection and access for sport anglers, and to
purchase another tract of land along the Ninilchik River near the
Sterling Highway to provide access for anglers.
Co-Chair Kelly informed that funding for these purchases is under
discussion.
RON REED testified via teleconference from Dillingham to the
importance of maintaining the Power Cost Equalization (PCE) program
to residents in rural Alaska. He spoke to the high cost of living
in smaller communities. He also requested no reductions to the FY
03 operating budget, and he suggested utilizing the permanent fund
as a "revenue stream" for the operating budget and basing capital
projects on resource-based revenue. He then requested price
supports for the fishing industry, which he characterized as "an
absolute disaster."
Co-Chair Kelly requested testifiers confine their statements to the
capital budget before the Committee.
SUE ASPLUND, Cordova District Fishermen United, testified via
teleconference from Cordova, to urge support for funding to replace
the Research Vessel Montague. She detailed the service of this
vessel in the Prince William Sound.
Co-Chair Kelly informed Ms. Asplund that funding for replacement of
the R/V Montague is included in the capital budget.
DENISE WEATHERS testified via teleconference from Cordova, to
suggest that most members of the House of Representatives have not
read the Alaska Statehood Act, because the action of passing HB 403
and HB 404 from the House of Representatives was unconstitutional.
She cited sections of the Act relating to a government "republic in
form" to affirm her point. She spoke of the inability of the State
to impose taxes without consent and stated that she has not given
such consent. She urged the Committee to "slash the budget" and
only fund government mandates. She referenced Representative
Kohring's writings on budget matters.
ED BILDERBACK, fisherman, testified via teleconference from Cordova
against an income tax. He suggested utilizing funds "squirreled
away" as reflected in the Comprehensive Annual Finance Report.
Co-Chair Kelly interjected to reiterate the purpose of this public
hearing is to hear testimony on the capital budget. He stressed
that although the House of Representatives has passed legislation
relating to taxes, the Senate has taken no such action. He informed
that testimony on these matters would be heard at a later date.
ED FURMAN testified via teleconference from Cordova, against US
Senator Ted Steven's use of tax money to rent and remodel aircraft
unnecessarily for the military. He spoke against the Legislature
attempting to tax residents "for the benefits of welfare-the ones
that are trying to go out and get a job."
AT EASE 1:33 PM / 1:53 PM
Co-Chair Kelly concluded public testimony.
AT EASE 1:55 PM / 3:06 PM
Senator Green moved for adoption of CS SB 247, 22-GS2035\O, as a
working draft.
There was no objection and the committee substitute was ADOPTED as
a working draft.
Department of Community and Economic Development
C&ED #1: This amendment renames the City of Talkeetna-Ambulance (ED
26-28) component to Matanuska Susitna Borough-Talkeetna Ambulance
(ED 26-28) on page 6 line 33. The $100,000 general fund
appropriation is unchanged. Accompanying explanatory language reads
as follows.
Talkeetna is not an incorporated city and cannot receive a
municipal grant. The Matanuska Susitna Borough can receive the
grant on behalf of Talkeetna.
Senator Green moved for adoption.
Co-Chair Kelly noted this is a technical amendment changing the
name of the recipient.
There was no objection and the amendment was ADOPTED.
C&ED #2: This amendment deletes "Anchorage School District" from
the Municipality of Anchorage/Anchorage School District/Diamond
High School-Swimming Pool Facility Upgrades (ED 10-25) component on
page 10, lines 24 through 28; the Municipality of
Anchorage/Anchorage School District/East Anchorage High School-
Swimming Pool Upgrades (ED 10-25) component on page 11, lines 3
through 7; and the Municipality of Anchorage/Anchorage School
District/Service High School-Swimming Pool Facility Upgrades (ED
10-25) component on page 11 lines 28 through 32. Accompanying
explanatory language reads as follows.
This is a technical amendment to correct the appropriate
recipient for these grants. This amendment was requested by
the Municipality of Anchorage.
Senator Green moved for adoption.
Co-Chair Kelly noted this amendment is also a technical change.
There being no objection the amendment was ADOPTED.
C&ED #3: This amendment adds a new Rural Power Systems Upgrade (ED
99) component and $500,000 general fund match appropriation.
Accompanying explanatory language reads as follows.
State match for federal funding of capital improvements and
new electric power systems in rural Alaska. Where required,
lack of state matching funds will prevent the federal
contribution.
The electric utility systems are part of the basic
infrastructure of rural communities. The power plant and
distribution systems in most rural communities do not meet
accepted utility standards for safety, reliability, and
environmental protection. Due to high costs and limited
economics of scale, most local communities cannot make the
capital investments needed to meet the accepted utility
standards.
AEA gives priority to electric utility systems that are in the
worst condition. AEA has built a detailed database of electric
utility conditions and characteristics. Deficiencies of each
utility have been scored with respect to generating equipment,
distribution systems, powerhouse structures, and other major
physical components. Rural systems are then ranked according
to the level of these deficiencies.
Senator Olson moved for adoption.
Co-Chair Kelly objected for discussion.
Senator Olson noted the amount of federal funding is unknown at
this time, but that funding is expected.
Co-Chair Kelly stated he would maintain his objection. He reminded
of Committee discussion the prior year whereby the Committee was
warned that the Denali Commission would be unable to undertake
these projects without State matching funds. He informed that
although State funds were not appropriated, the federal funds were
received and the projects continued.
Senator Olson understood the event of the prior year was a result
of a "one time situation". He was unsure the Denali Commission
"would look at this favorably this year."
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Co-Chair
Donley and Co-Chair Kelly
ABSENT: Senator Leman and Senator Ward
The motion FAILED (2-5-2)
The amendment FAILED to be adopted.
Co-Chair Donley offered a motion to excuse Senator Leman from the
meeting. There was no objection and it was so ordered.
C&ED #4: This amendment adds a new Diesel Efficiency and
Alternative Energy Program (ED 99) component and $500,000 general
fund match appropriation. Accompanying explanatory language reads
as follows.
This appropriation is requested for state match for federal
funding of alternative energy projects (Fuel Efficiency
Improvements, Conservation, Wind, Biomass).
The diesel efficiency and alternative energy program seeks to
lower the cost of power and heat by developing alternatives to
diesel-based energy systems as well as enhancements to diesel-
based technology. Most of the program focus is in rural areas
where average energy costs are highest and cost reduction
alternatives are most needed.
Senator Olson moved for adoption and read the accompanying
statement into the record.
Co-Chair Kelly objected for the same reasons given for the previous
amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman and Co-Chair Kelly
ABSENT: Senator Leman and Senator Ward
The motion FAILED (2-5-2)
The amendment FAILED to be adopted.
C&ED #5: This amendment deletes the Girdwood Road Service Area-Road
and Drainage System Rehabilitation (ED 10-25) component and $75,000
general fund appropriation on page 16, lines 15 through 17 from the
Grants to Municipalities Budget Request Unit (BRU). Accompanying
explanatory language reads as follows.
This project is already funded in the Municipal Capital
Matching Grants Program for Anchorage in the full amount
requested. See page 65, lines 23-26.
This amendment also adds a new City of Cordova-Tsunami Warning
System component and $34,500 general fund appropriation to the
Municipal Capital Matching Grants BRU. Accompanying explanatory
language reads as follows.
Cordova sits in the center of one of the most active
earthquake zones in the world. A tsunami warning system would
provide early warning not only to immediate residents, but
residents who are difficult to contact.
This amendment also adds a new Native Village of Tanacross-Old
Tanacross Village Cemetery Dike and Repairs component and $17,584
general fund appropriation to the Unincorporated Capital Matching
Grants BRU. Accompanying explanatory language reads as follows.
Old Tanacross Cemetery is located on what has become and
island due to changes in the course of the river over a number
of years. Every spring and summer the cemetery is flooded.
Approximately 35 graves are located within this cemetery and
are in danger of being washed away.
Senator Olson moved for adoption.
Co-Chair Kelly objected.
Senator Olson pointed out that the Girdwood Road Service project
was "double-funded" and this amendment proposes to utilize the
excess funds for the Cordova Tsunami Warning System and the Old
Tanacross Cemetery.
Senator Olson spoke of the 1964 Earthquake and the "devastating"
impact to the residents of Prince William Sound. He warned that
another major earthquake would again impact these residents.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
C&ED #6: This amendment adds a new City of Shishmaref-Erosion
Control component and $3,000,000 general fund appropriation to the
Grants to Municipalities BRU on page 6 following line 29.
Senator Olson moved for adoption.
Co-Chair Kelly objected.
Senator Olson remarked this is "one of the more important
amendments" to the FY 03 capital budget. He told of the erosion
situation on the island in the Chukchi Sea whereby up to 30 feet of
shoreline has been lost in the past year endangering the fuel tank
storage facilities as well as causing other concerns. He shared
that the City hired an engineering firm with expertise in Arctic
climates, which determined that erosion damage is not limited to
the seaward shores of the island, but is evident on the lagoon
shores as well. The consultants, he informed, have devised a plan
to stop the erosion for ten years to provide time to relocate the
village to a location on the mainland. He stated the City has
$900,000 to contribute toward the estimated $4 million cost of this
project.
Co-Chair Kelly added this request was not included in the capital
budget legislation submitted by the Governor, and that the amount
is significant.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
AT EASE 3:38 PM / 3:19 PM
Department of Corrections
COR #1: This amendment adds a new Community Jails Safety, Security
Renovations and Equipment component and $100,000 general fund
appropriation. Accompanying explanatory language reads as follows.
This project funds the purchase of security equipment, health
and life safety equipment, and structural repairs at local
jail facilities that are in partnership with the State to
provide up to 55,845 man-days of incarceration of state
prisoners. These funds address critical day to day repairs of
health and life safety issues and equipment needs for the
occupants of these facilities, offenders and staff.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman expressed the "dire need" for this equipment.
Co-Chair Kelly commented the Department assigned this item a lower
priority. He also pointed out that funds for this project are
included in proposed general obligation bonds legislation.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Department of Education and Early Development
E&ED #1: This amendment adds a new Yuut Elitnaurviat People's
Learning Center-Phase 1 Construction component and $900,000
appropriation. Accompanying explanatory language reads as follows.
This amendment will provide state support for construction of
a vocational training center to serve the Yukon-Kuskokwim
Delta Region. The center will meet both academic and industry
standards in the area's most in-demand industries. Numerous
partners will combine resources to provide a comprehensive
program and include:
Association of Village Council Presidents, Inc.
Association of Village Council Presidents, Regional Housing
Authority
Bethel Native Corporation
City of Bethel
Coastal Villages Region Fund
Lower Kuskokwim School District
University of Alaska Fairbanks, Kuskokwim Campus
Yukon Kuskokwim Health Corporation
Alaska National Guard
During Phase I, these partners will cover $3.3 million of the
$12.2 million construction cost. The USDA-Rural Development
has set aside another $3 million and an earmark for $1 million
is in the Department of the Interior federal budget. This
amendment for $900,000 in state funds will help leverage the
remaining $4 million from other sources.
This amendment was NOT OFFERED.
E&ED #2: This amendment adds a new State Museum Land Purchase
component and $1,450,000 general fund appropriation. Accompanying
explanatory language reads as follows.
This amendment adds funding for land acquisition and expansion
planning at the Alaska State Museum described in AS 14.57.010.
The parcel adjacent to the State Museum is currently for sale
and is the only land available for expansion. Expanding the
existing facility will prove far more cost effective in the
long run than replacing the museum if the adjacent parcel
ceases to be available.
The artifacts of Alaska history, from time immemorial through
Benny Benson's original flag design to the modern day are
housed in cramped and sometimes temporary facilities not
adequate for historic preservation.
One of the two general obligation bond bills currently in the
legislature includes $5,000,000 for the Anchorage Museum.
State funds have been provided in recent years to expand the
University museum in Fairbanks. This is a critical and time
limited opportunity to support the State's own museum and
archives.
This project was originally part of SB 261, the Governor's
proposed bill for certificates of participation for deferred
maintenance and replacement of state facilities.
This amendment was NOT OFFERED.
AT EASE 3:21 PM / 3:22 PM
E&ED #3: This amendment deletes the Delta-Greely School District-
Land Purchase (ED 35) component and $100,000 general fund
appropriation from page 21, lines 7 through 9 of the committee
substitute.
Senator Wilken moved for adoption.
Co-Chair Kelly objected.
Senator Wilken informed that impact funds are intended for Delta-
Greely in the amount of $10 million this year and $20 million in
the following year.
Senator Wilken opined the residents living within the boundaries of
the Delta-Greely School District should "be helping themselves
before they go to the people and ask for monies for land purchase."
He reminded of the 1997 efforts to achieve "education reform", when
the Legislative Budget and Audit Committee performed an analysis of
the "wealth" of this school district. He recalled the assessed
value per student placed this District "in the top five" of
communities' ability to support local education costs. However, he
asserted, "The people of Delta-Greely won't take the steps
necessary to help themselves" and therefore, he could not support
the allocation of general funds for this purchase.
Co-Chair Kelly maintained his objection to the adoption of the
amendment, commenting that discussions were held on this matter and
it was determined this is a worthwhile project.
AT EASE 3:24 PM / 3:24 PM
A roll call was taken on the motion.
IN FAVOR: Senator Wilken
OPPOSED: Senator Austerman, Senator Green, Senator Hoffman, Senator
Olson, Senator Ward, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
Department of Transportation and Public Facilities
DOT #1: This amendment adds a Juneau: East Lynn Canal Access EIS
component and $2,300,000 allocation to page 56, following line 13
of the committee substitute. Accompanying explanatory language
reads as follows.
A significant investment has been made in assessing the
environmental impacts of a Lynn Canal/Juneau Road Access
project. This study, however, remains incomplete. In recent
years the integrity of the study has been maintained through
limited monitoring and data collection. These funds would
allow completion of the study.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly informed that most capital projects included in the
committee substitute are "fairly small in nature" and that this
amount is considerably greater. He therefore opposed the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Ward, Senator Wilken, Senator
Austerman, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
DOT #2: This amendment increases the allocation to the Rural Dust
Control (ED 99) component on page 59 line 21 of the committee
substitute from $850,000 to $2 million.
Senator Olson moved for adoption.
Senator Green and Co-Chair Kelly objected.
Senator Olson noted the Governor's proposed capital budget included
$5 million to establish and implement a dust control program. He
asserted that elderly people and people with respiratory ailments
are particularly impacted by dust. He spoke to the feelings of
suffocation experienced by those with respiratory ailments who are
exposed to this dust. He noted this is an undesirable and inhumane
way to die.
Co-Chair Kelly clarified that $850,000 is the amount requested by
the Administration. He suggested additional funds could be added
when the budget was considered in the House of Representatives.
Senator Olson understood that the Governor had requested $5 million
and that the Department later reduced the amount of the request to
$850,000.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Legislature
LEG #1: This amendment deletes "Legislative Budget and Audit" and
inserts "Department of Administration" on page 93 line 18 and line
19 and deletes "stand-alone" from line 20 of the committee
substitute. The amended language reads as follows.
Sec. 16. DEPARTMENT OF ADMINISTRATION. The sum of
$250,000 is appropriated from the general fund to the
Department of Administration for the fiscal year ending June
30, 2003, for a study of the feasibility of a veterans' home.
It is the intent of the legislature that the Alaska Veterans
Coalition be consulted in the development of the request for
proposal for the study.
This amendment also deletes "Legislative Council" and inserts
"Department of Health and Social Services" on page 93 line 23 and
line 24 of the committee substitute. The amended language reads as
follows.
Sec. 17. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The
sum of $200,000 is appropriated from the general fund to the
Department of Health and Social Services for a contract to
conduct a sociological and demographic study of recipients of
state welfare and Medicaid programs to determine how and why
they became recipients of welfare and Medicaid services.
This amendment also includes accompanying explanatory language that
reads as follows.
It might be more appropriate to have the Department of
Administration conduct a feasibility study of veterans' home
than the Legislature. The same logic would also apply for the
Department of Health and Social Services to conduct a study of
how and why people become recipients of welfare and Medicaid
services than having the Legislature contract for these
services.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record. He
added that the departments would have more time to undertake these
efforts than would the Legislative Budget and Audit Committee.
Co-Chair Kelly commented that because the Legislature would be
forced to deal with the problems of funding public assistance, it
is more appropriate for the Legislature to oversee the studies. He
surmised the Legislature would have more confidence in the findings
of a study if it had control over the questions asked and the
"direction" of the study.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
AT EASE 3:31 PM / 3:34 PM
University of Alaska
UNIV #1: This amendment changes the Small Project Development and
Construction (ED 99) component appropriation from $6 million to $8
million on page 64 lines 5 and 6. This amendment also changes the
Statewide Construction Planning (ED 99) component appropriation
from $6 million to $4 million on page 64 lines 7 and 8.
Accompanying explanatory language reads as follows.
Both federal receipt authority requests are associated with
construction projects, UAF West Ridge Research Addition and
UAA Biomedical Facility Addition. Having the total federal
receipt authority associated with Small Project Development
and Construction is more consistent with the projects.
PAT PITNEY, Director of Budget Development and Institutional
Planning, University of Alaska, spoke to the amendment to transfer
$2 million of federal funds from one project title to another. She
explained that because the two projects are construction rather
than planning, it is more appropriate to fund them under the Small
Project Development and Construction component. She indicated this
change would increase the likelihood of securing federal funding.
Senator Wilken moved for adoption.
There was no objection and the amendment was ADOPTED.
Co-Chair Donley offered a motion to allow the Division of
Legislative Finance and the Division of Legal and Research Services
to make conforming and technical changes to the amended committee
substitute as necessary.
Co-Chair Donley commented he has "continuing concerns" with the
amount of funding appropriated for sewer and water projects in
Anchorage. He calculated that over the previous ten years,
Anchorage has received less than ten percent of the total funds
allocated for water and sewer programs statewide, including the
municipal water and sewer grants programs.
SFC 02 # 88, Side B 03:37 PM
Co-Chair Donley continued this practice must "turn around" because
a $14 million backlog of maintenance projects is accumulating in
the Anchorage area. He predicted that if Anchorage had been
receiving "even one-half of our fair share of these funds," this
problem would not exist. He stressed there are areas within
Anchorage that do not have access to city water and sewer services.
Co-Chair Donley "moved the bill from Committee with individual
recommendations."
Without objection CS SB 247 (FIN) MOVED from Committee.
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