Legislature(2005 - 2006)
05/05/2005 04:55 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| HB61 | |
| HB149 | |
| HB169 | |
| HB211 | |
| HB225 | |
| HB123 | |
| HB215 | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This bill had been heard previously in the Senate Finance
Committee.
Amendments are considered to the working draft committee
substitute, Version 24-GS1074\Y, unless otherwise noted.
Amendment #64: This amendment increases the general fund
appropriation made in subsection (B) of Section 32. DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES., on page 102, lines 16 and
17, to the Department for emergency and nonroutine maintenance from
$743,400 to $1,631,400. Accompanying explanatory language reads as
follows.
This increase is needed in the FY 05 Supplemental for
emergency and non routine maintenance and is allocated for the
following:
$486,000 Susitna River Road, Trapper Creek
$402,000 M.P. 13 Tok Cutoff
Co-Chair Wilken moved for adoption.
GINGER BLAISDELL, Staff to Co-Chair Green, stated the increased
funding would be utilized to address some emergency projects
revealed in the last few weeks.
Co-Chair Green told of "gaping holes" in roads near Tok and Trapper
Creek. The Department would have made these repairs and requested
supplemental funding for the costs if the legislature had not been
in session. Because this bill is still under consideration, it was
deemed appropriate to include funding in its appropriation.
There being no objection, Amendment #64 was ADOPTED.
7:14:24 PM
Amendment #65: This amendment deletes reduces the general fund
appropriation to the UAF - Biological and Computational Sciences
Facility (HD [house district] 7-11) component of the University of
Alaska on page 89, lines 14 through 16 from $32 million to $24.2
million.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell clarified the amendment reduces the appropriation by
$7.8 million.
There being no objection, Amendment #65 was ADOPTED.
Amendment #66: This amendment increases the appropriation to the
Fairbanks Virology Laboratory Replacement (HD 1-40) component of
the Department of Health and Social Services on page 88 lines 21
through 23 from $4.8 million to $24.2 million. The amendment
indicates the funding source as Certificates of Participation fund
code 1163. Accompanying explanatory language reads as follows.
This project is the Department's number 1 priority. The amount
of $4,800,000 is not sufficient to construct a lab. The
original requested amount of $24,200,000 needs to be restored
to the bill. Funds would be used for the design, construction
and equipping of a new virology laboratory located on the
University of Alaska Fairbanks campus. Virology laboratory
functions are a vital component of public health. This is a
service that the state simply cannot afford to live without.
The existing virology lab is old, undersized, and unsafe. An
independent report refers to the lab as "an accident waiting
to happen".
Co-Chair Wilken moved for adoption.
Ms. Blaisdell outlined the explanatory statement.
Co-Chair Green understood the Committee would receive separate
legislation for consideration that would provide for this project.
Ms. Blaisdell affirmed.
7:15:57 PM
Senator Stedman requested clarification.
Ms. Blaisdell explained that this amendment would increase the
appropriation the amount requested in the Governor's proposed FY 06
capital budget, and change the funding source from general funds as
originally proposed.
Senator Stedman asked if this appropriation is in addition to the
$4.2 million appropriated for a separate science facility.
Ms. Blaisdell replied that the total appropriation for the two
projects would be $48.4 million. The funding source of the $4.2
million appropriation is general funds.
Co-Chair Green informed of separate legislation to provide for the
construction of a virology laboratory utilizing certificates of
participation.
Senator Stedman requested further information regarding the
certificates of participation funding source at a later time.
Senator Hoffman questioned the reference to the project as located
in house districts 1 through 40, although the next project listed,
the Anchorage Integrated Science Facility, is classified as house
districts 17 through 32.
Co-Chair Green replied that the virology facility would be operated
by the Department of Health and Social Services and would be
utilized for all house districts.
Senator Hoffman asked if the virology facility project would be
calculated in the total appropriations for each district,
specifically for the Fairbanks area districts. He suggested
uniformity in comparison to other projects.
Co-Chair Green responded that further information would be
forthcoming.
7:20:48 PM
Co-Chair Green presumed the determination was made based on the
function of the building. The proposed virology laboratory would
function statewide versus the University science facility, which
would serve the University of Alaska Anchorage primarily.
7:21:20 PM
CHERYL FRASCA, Director, Office of Management and Budget, Office of
the Governor, suggested that to clarify that the project were
"statewide in nature" "Fairbanks" could be deleted from the project
title. The facility would be intended to service the entire state.
Co-Chair Green stated that the amendment could be amended later if
deemed necessary.
Co-Chair Green announced that Amendment #66 was ADOPTED.
7:22:19 PM
Amendment #67: This amendment changes the name of the Willow Creek
State Recreation Area - Shallow Water Boat Launch and Winter Access
Trailhead at Mile 49.7 (HD 13-16) component of the Department of
Natural Resources on page 42, line 30 through page 43, line 3. The
amended component reads, "Willow Creek State Recreation Area -
Phase II: Parking lot at crude shallow water boat launch site at
Mile 49.7."
Co-Chair Wilken moved for adoption.
Co-Chair Green stated this amendment was requested by Senator
Charlie Huggins.
There was no objection and the amendment was ADOPTED.
7:22:49 PM
Amendment #68: This amendment deletes the Fairbanks North Star
Borough - Chena River State Recreation Area / Extend Fire Control
Line (HD 7-11) component and $184,000 general fund appropriation to
the component from the Grants to Municipalities (AS 37.05.315) BRU,
Department of Commerce, Community and Economic Development on page
14, lines 4 through 7.
This amendment also inserts a new Chena River State Recreation Area
/ Extend Fire Control Line (HD 7-11) component to the Department of
Natural Resources on page 39, line 13 and appropriates $184,000
general funds to the component.
Accompanying explanatory language reads as follows.
This amendment transfers the funding from the Fairbanks North
Star Borough to the Department of Natural Resources, as the
Chena River State Recreation Area is a state park.
Co-Chair Wilken moved for adoption.
Co-Chair Green overviewed the explanatory statement.
There being no objection, Amendment #67 was ADOPTED.
Amendment #69: This amendment reads as follows.
1. Amendment #5 and #13 created a slight imbalance: Amendment
#13 should change the amount for the Alaska Siberia Research
Center to $100,200 rather than $105,200. This correction
creates the "net zero" reallocation of projects.
2. Point of clarification only: Amendment #30 does not reduce
the total amount of the NPR-A impact grant program anticipated
receipts it clarifies the anticipated distribution of the
grants to affected communities. The difference of the amount
of grant awards compared to the amount of the anticipated
receipts is the amount that is distributed by statute to the
Public Education Fund and the Power Cost Equalization fund.
3. Point of clarification only: Amendment #33 Sport Fish
Hatcheries projects are contingent on the sale of the Revenue
Bonds. The projects are funded in the amount of the revenue
bonds.
4. Amendment #35 and #36: add the following intent: "It is the
intent of the Legislature that the Department of
Administration, Commissioner's Office distribute the general
fund appropriation of $4,350,000 across appropriation lines to
other state agencies to assist with the statewide services
chargeback obligations." And "It is the intent of the
Legislature that all state agencies will reimburse the funds
as required by the Statewide Federal Cost Allocation Plan
chargeback to the level that the funds have been capitalized
for future statewide services needs."
5. Amendment #37 technical correction: Near the bottom of the
amendment, where the Sec__ EFFECTIVE DATE (a) Section XX(a) is
effective July 1, 2005 - the second (a) should have referenced
"(c)".
6. Point of clarification only: Amendment #38 Marine highway
fuel increase is appropriated directly to the Department of
Transportation and Public Facilities, Marine Vessel Operations
and not into the marine highway system fund.
7. Point of clarification only: Amendment #39 - the last
allocation list should be $1,000,000 to the Cold Bay Airport
Terminal Redevelopment (not Sand Point).
8. Clarification to the amended amendment #50 that the project
title for $125,000 is for the "Arctic Winter Games Team
Alaska"
9. Amendment #55 states "Municipality of Anchorage - 74th Ave
Pedestrian Facilities - Arctic Boulevard to Chad St." and
should state 76th Ave…
10. Amendments #52 through #56 were reallocating priority
projects that were originally identified under Grants to
Municipalities Page 24, lines 13-15. With the addition of
amendments #52 - #56, Page 24, lines 13-15 are deleted.
11. Page 121, Sec 56(b), line 9
Delete: $2,723,800
Insert: $2,723,000 (corrects a mathematical error)
12. One section was mission from Section 61. CONSTITUTIONAL
BUDGET RESERVE FUND. This section is required so that the
Department of Revenue can balance the State's cash flow at the
fiscal year end.
Add: (c) Unrestricted interest earned on investment of the
general fund balances for the fiscal year ending June 30,
2006, is appropriated to the budget reserve fund (art. IX,
sec. 17, Constitution of the State of Alaska). The
appropriation made by this subsection is intended to
compensate the budget reserve fund (art. IX, sec. 17,
Constitution of the State of Alaska) for any lost earnings
caused by use of the fund's balance to permit expenditure of
operating and capital appropriations in the fiscal year ending
June 30, 2006, in anticipation of receiving unrestricted
general fund revenue. The amount appropriated by this
subsection may not exceed an amount equal to the earnings lost
by the budget reserve fund as the result of the use of money
from the budget reserve fund to permit expenditure of
operating and capital appropriations in the fiscal year ending
June 30, 2006, in anticipation of receiving unrestricted
general fund revenue.
13. Page 123, Sec 61(c), line 16
Delete: $25,000
Insert: $167,000
14. Section 65. EFFECTIVE DATE.
(a) include "Sections 4 and 5"
(c) "Sections 1-5" is changed to "Sections 1-3"
Co-Chair Wilken moved for adoption.
Ms. Blaisdell stated this amendment corrects errors in amendments
previously adopted by the Committee. She read the language of the
amendment into the record.
Ms. Blaisdell noted item #7 should read as follows.
7. Point of clarification only: Amendment #39 - the last
allocation listed should be $1,000,000 to Sand Point.
7:26:36 PM
Senator Olson requested clarification of item #7.
Ms. Blaisdell explained the allocation of funds would be made to
Sand Point.
7:27:32 PM
Ms. Blaisdell continued reading the language of the amendments
language.
Without objection, Amendment #69 was ADOPTED. [No formal action was
taken on the proposed amendment to the amendment. The Committee's
intent is assumed that the amendment was amended.]
7:30:33 PM
Amendment #70: This amendment deletes the language of Section 6.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES., on page 91,
lines 1 through 16 and inserts a new bill section to read as
follows.
Sec. 6. DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES. Subject to Sec. 62 of this Act, the sum of
$62,000,000 is appropriated from the Alaska capital income
fund to the Department of Transportation and Public Facilities
for the following projects in the amounts stated, subject to
reallocation among the projects under AS 37.07.080(e):
AMOUNT
From the General Fund
McCarthy Road, major maintenance $2,000,000
Denali Borough, Stampede Road Improvements 5,000,000
Chena overflow bridge for gas pipeline
DeLong Mountaion, port expansion EIS 2,000,000
Completion
North Slope, Foothills West Road EIS 4,000,000
North Slope, Bullen Point EIS 5,000,000
Dalton Highway, surfacing upgrades 9,000,000
Dalton Highway, Washington Creek Bridge 3,500,000
Richardson Highway, highway passing lanes 7,500,000
Mile Post 265-341
Richardson Highway, Shaw Creek Bridge 2,500,000
Kenai Peninsula: Kalifornsky Beach Road 11,000,000
Rehabilitation
Industrial Roads 7,000,000
Accompanying explanatory language reads as follows.
Note: all of the above road projects are classified as
"Resource Development Projects" and are using revenues from
the interest earnings of the AMHESS settlement.
Co-Chair Wilken moved for adoption.
Co-Chair Wilken then offered a motion to amend the amendment to
reduce the allocation to Industrial Roads from $7 million to $3.5
million and insert a new Wickersham Street Upgrade - Fairbanks
project and allocate $3.5 million to that project.
Co-Chair Green clarified the amendment to the amendment would have
a net zero impact on the provisions of the amendment.
Senator Hoffman asked the location of the industrial roads and
which of those industrial road projects would be eliminated by the
amendment of the amendment.
7:32:19 PM
Ms. Blaisdell replied that most of the roads were included as
projects in the Governor's proposed FY 06 capital budget. She
detailed the location of each road listed in the amendment.
Co-Chair Wilken and Ms. Blaisdell established the location of the
roads.
Co-Chair Green clarified that Senator Hoffman was inquiring about
the industrial roads.
Ms. Blaisdell explained that the classification of industrial roads
is discretionary by the Department and are "high use roads"
utilized by heavy equipment.
7:34:50 PM
Co-Chair Green announced that the Committee amended Amendment #70,
as proposed by Co-Chair Wilken. She requested the Department
respond to Senator Hoffman's question.
JOHN MACKINNON, Deputy Commissioner of Highways and Public
Facilities, Department of Transportation and Public Facilities, was
unable to immediately state which projects would be eliminated.
Some of the funds proposed for this item are intended for "projects
of opportunity that come along". The reduced amount would be
adequate.
Senator Hoffman requested identification of some industrial roads.
7:36:19 PM
Mr. MacKinnon told of a suspended project on the Culver River Road,
efforts undergoing on the "Pebble Copper" including reconnaissance
engineering, preliminary environmental impact statement (EIS)
activities and coordination work with Northern Dynasty.
Senator Stedman clarified the allocation to the industrial roads
item is a discretionary fund for use projects intended to expand
resource development.
Mr. MacKinnon affirmed the characterization.
Co-Chair Green announced that Amendment #70 was ADOPTED.
Ms. Blaisdell stated that although the amendment stipulates general
funds as the funding source, the appropriation would be made from
interest earnings from the commonly referred to Amerada Hess
account of the Alaska Permanent Fund.
Senator Hoffman called a point of order in that no action was taken
on the motion to amend the amendment.
Co-Chair Wilken moved for adoption of Amendment #70 as AMENDED.
Without objection the amended amendment was ADOPTED.
7:37:45 PM
Amendment #71: This amendment reads as follows.
The following projects are appropriated under a new program
classification called "Congestion Mitigation and Safety
Initiative"
Technical Change:
Assign this program classification to the projects listed
on page 47, lines 7-19
Add the following projects to this project
classification:
AMOUNT
From the General Fund
Dowling Road East $19,000,000
*Fairbanks, Wilbur Street Extension 1,000,000
*Fairbanks, 2nd Avenue, Moore Street 2,500,000
Realignment and New Airport Way Intersection
Glenn Highway Corridor 30,500,000
Tudor Bragaw Intersection 7,000,000
*The two Fairbanks projects reflect the passage of Amendment
#29 and are not intended to duplicate funding for these
projects.
Co-Chair Wilken moved for adoption.
Co-Chair Green announced this amendment would be NOT OFFERED to
defer to Amendment #71A.
Amendment #71A: This amendment reads as follows.
The following projects are appropriated under a new program
classification called "Congestion Mitigation and Safety
Initiative"
Technical Change:
Assign this program classification to the projects listed
on page 47, lines 7-19
Add the following projects to this project
classification:
AMOUNT
From the General Fund
Dowling Road East $19,000,000
*Fairbanks, Wilbur Street Extension 1,000,000
*Fairbanks, 2nd Avenue, Moore Street 2,500,000
Realignment and New Airport Way Intersection
Glenn Highway Corridor 30,500,000
Tudor Bragaw Intersection 7,000,000
Prince of Wales: Hollis to Klawock Pavement 5,000,000
Sitka: Rocky Guitierrez Airport Access 3,500,000
Improvements
Fairbanks: Gaffney Road Upgrade 6,250,000
Fairbanks: Cartright Road Extension 3,650,000
Nome: City Streets, Phase 2 5,000,000
Juneau: Glacier Highway Road Extension 5,000,000
Kodiak: Rezanof Drive Rehabilitation 4,300,000
Lighting and Intersection Safety Improvements
*The two Fairbanks projects reflect the passage of Amendment
#29 and are not intended to duplicate funding for these
projects.
Co-Chair Green, sponsor of the amendment, amended the amendment to
reduce the appropriation to the Kodiak project from $4.3 million to
$1 million and insert a new Otmeloi Way Rehabilitation project and
$3.3 million appropriation to that project.
Co-Chair Wilken moved for adoption of the amendment as AMENDED.
7:39:09 PM
Senator Hoffman asked whether the Governor requested funding for
all the listed projects or whether some were included at the
request of the House of Representatives.
7:39:21 PM
Ms. Blaisdell listed the Dowling Road, Glenn Highway and Tudor
Bragaw projects as included in the Governor's budget request. The
two projects marked with an asterisk had been amended by an earlier
amendment. The remaining projects included in the unamended
amendment were proposed by the House of Representatives and the
amendment to the amendment reflects intent of the Senate Finance
Committee.
Co-Chair Wilken pointed out that all the projects located in
Fairbanks are included in the Fairbanks Metropolitan Area
Transportation System (FMATS) "allocation for Fairbanks".
Co-Chair Green restated the amendment to the amendment.
Co-Chair Green asked if there was any objection to Amendment #71A,
as amended.
AT EASE 7:41:28 PM / 7:43:01 PM
Co-Chair Green directed attention to Amendment #70 as amended and
announced a "point of clarification" that the Wickersham Street
Upgrade - Fairbanks project and corresponding $3.5 million
appropriation should be deleted from that amendment and inserted
into the language of Amendment #71A.
Ms. Blaisdell informed that such changes would reduce the amount of
the appropriation from the interest earnings of the fund source
commonly referred to as Amerada Hess from $62 million to $58.5
million.
Senator Hoffman asked the total appropriation made by Amendment
#71A.
Ms. Blaisdell listed the amount as $95.2 million.
AT EASE 7:45:20 PM / 7:45:58 PM
Co-Chair Wilken offered a motion to rescind action taken in the
adoption Amendment #70 as amended.
Without objection the action adopting the amendment was RESCINDED.
Co-Chair Wilken offered a motion to amend Amendment #70, as
amended, to reflect the reduction of the total appropriation
amount. The amended amendment as amended reads as follows.
Sec. 6. DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES. Subject to Sec. 62 of this Act, the sum of
$58,500,000 is appropriated from the Alaska capital income
fund to the Department of Transportation and Public Facilities
for the following projects in the amounts stated, subject to
reallocation among the projects under AS 37.07.080(e):
AMOUNT
From the General Fund
McCarthy Road, major maintenance $2,000,000
Denali Borough, Stampede Road Improvements 5,000,000
Chena overflow bridge for gas pipeline
DeLong Mountaion, port expansion EIS 2,000,000
Completion
North Slope, Foothills West Road EIS 4,000,000
North Slope, Bullen Point EIS 5,000,000
Dalton Highway, surfacing upgrades 9,000,000
Dalton Highway, Washington Creek Bridge 3,500,000
Richardson Highway, highway passing lanes 7,500,000
Mile Post 265-341
Richardson Highway, Shaw Creek Bridge 2,500,000
Kenai Peninsula: Kalifornsky Beach Road 11,000,000
Rehabilitation
Industrial Roads 3,500,000
7:47:08 PM
Senator Hoffman understood the interest earnings of that account is
approximately $30 million annually and asked if the undertaking of
the projects would therefore be made over three fiscal years.
Ms. Blaisdell affirmed.
Senator Hoffman asked which projects would be constructed first.
Mr. MacKinnon replied that a schedule was yet to be made. He
predicted the upgrades to the Dalton Highway would begin as soon as
possible. The majority of the projects would be started in the
summer of 2006.
7:48:20 PM
Senator Hoffman remarked that the funds would not be available
until three fiscal years had lapsed. The projects could not be
undertaken without funding. He asked the timeframe of the projects.
Mr. MacKinnon indicated that construction would be scheduled to
"meet the cash flow."
Senator Hoffman again asked the prioritization of the proposed
projects.
Mr. MacKinnon listed the Foothills West Road EIS and the Bullen
Point EIS as priorities. The Department would consult with the
Murkowski Administration to determine further prioritization.
Co-Chair Green announced that Amendment #71A, as amended, was
AMENDED.
[Note: It is assumed that the Committee's intent is that the
amendment to the amendment is the aforementioned insertion of the
Wickersham Street Upgrade - Fairbanks project and $3.5 million
general fund appropriation. It is assumed that the Committee's
intent was that Amendment #71A, as twice amended, was ADOPTED.]
[Note: It is assumed that the Committee's intent is that the motion
to AMEND Amendment #70, as amended, was incorporated. It was
assumed that the Committee's intent is that Amendment #70, as twice
amended, was ADOPTED.]
Amendment #72: This amendment increases the amount of the
appropriation made in subsection (a) of Section 28. DEPARTMENT OF
NATURAL RESOURCES., on page 101, lines 6 through 8 from
$36,902,700. The amended language reads as follows.
(a) The sum of $43,350,400 is appropriated from the
general fund to the Department of Natural Resources, fire
suppression activity, for operating costs for the fiscal year
ending June 30, 2005.
Co-Chair Wilken moved for adoption.
The amendment was ADOPTED without objection.
Amendment #73: This amendment increases the general fund
appropriation to the Aircraft and Vessel Repair and Maintenance (HD
1-40) component of the Department of Public Safety on page 43,
lines 10 and 11 from $1.2 million to $1.8 million. Accompanying
explanatory language reads as follows.
This amendment restores partial funding requested in the
Governor's capital budget. This project allow the department
to overhaul and repair department aircraft airframes, landing
gear and engines to ensure that aircraft are airworthy, safe
and dependable. This is necessary so that the department can
carry out its public safety, law enforcement, and search and
rescue responsibilities. This project also allows for some of
the needed repairs, conversions, servicing and maintenance for
the larger patrol vessels as well as the smaller vessels to
ensure their safe and dependable operations during FY 06 and
beyond. Vessels are used for commercial fisheries enforcement
and other trooper duties including search and rescue missions.
Without adequate funding for repair and maintenance, the
department likely will not be able to maintain all aircraft
and vessels at an appropriate level, and would have to take
some of these out of serve. This will significantly curtail
the department's enforcement, search and rescue, and incident
response capabilities.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell overviewed the explanatory statement.
7:50:54 PM
Senator Olson understood Ms. Blaisdell to suggest that overhauls to
airplane engines at a cost of $600,000 would be undertaken in one
year.
7:51:38 PM
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, testified that the entire $600,000
would not be utilized to fund aircraft-related projects. He listed
airframe overhauls of amphibian vessels, engine overhauls, other
modifications, as well as funding set aside for emergency repairs.
There being no objection, Amendment #73 was ADOPTED.
Amendment #74: This amendment increases the appropriation to the
manufacturing extension program made in subsection (a) of Section
14. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT., on
page 93, line 30 through page 94, line 4, from $1.2 million to $1.5
million and designates the funding source of the additional
$400,000 as Business License & Corporation Filing Fees and Taxes.
Accompanying explanatory language reads as follows.
Description: This amendment will provide full funding for
Alaska participation in the National Manufacturer's Extension
Program (MEP). The national program aims to give a competitive
edge to small businesses through overcoming known barriers to
success for small manufacturers including limited budgets,
lack of in-house expertise, and lack of access to the newest
technologies. The national program has assisted more than
149,000 firms through over 400 MEP centers whose sole purpose
is to assist small manufacturers in process improvement,
application of technology and business practices. Communities
are anxious to participate in this program because a "virtual
store" is a viable way to expose their products to market and
raise the local economy. This program opens those communities
to a nationwide network of expertise in how to improve their
product, the delivery of their product and their other
business practices. The General Accounting Office found that
the MEP had a positive effect on performance in areas of
profits, sales, product quality, workplace technology,
productivity, and customer satisfaction. In addition to the
federal and state funds, the communities will contribute "in
kind".
Co-Chair Wilken moved for adoption.
Co-Chair Green outlined the explanatory statement.
There being no objection, Amendment #74 was ADOPTED.
7:53:18 PM
Amendment #75: This amendment increases the general fund
appropriation to the Statewide Facilities Maintenance (HD 1-40)
component of the Department of Public Safety on page 44, lines 7
and 8 from $200,000 to $500,000. Accompanying explanatory language
reads as follows.
This amendment restores funding to the amount requested by the
Governor. The department has 17 facilities around the state
that need repair and maintenance funding. The department has
only received repair and maintenance funding twice in the last
ten years, and some of the repairs for these facilities have
reached the point where it need[s] to be addressed as soon as
possible. This includes heating and electrical repairs,
significant roof repairs to the Anchorage hangar, and other
deferred maintenance issues.
Co-Chair Wilken moved for adoption.
Co-Chair Green noted the locations of the proposed projects would
be statewide.
There being no objection, Amendment #75 was ADOPTED.
7:53:52 PM
Amendment #76: This amendment inserts a new subsection to Section
22. OFFICE OF THE GOVERNOR., on page 98, following line 18 to read
as follows.
(d) The sum of $500,000 is appropriated from the general
fund to the Office of the Governor, executive office, for work
related to the state gas pipeline and to bringing North Slope
natural gas to market, and other oil and gas projects for the
fiscal years ending June 30, 2005 and June 30, 2006.
This amendment also provides for an effective date of July 1, 2004
for the provision in the new subsection.
Co-Chair Wilken moved for adoption.
Co-Chair Green gave a brief explanation
There was no objection and the amendment was ADOPTED.
7:54:23 PM
Amendment #77: This amendment inserts a new Municipality of
Anchorage - Raspberry Road Extension - Minnesota Drive to Rovenna
Street component to the Grants to Municipalities (AS 37.05.315)
BRU, Department of Commerce, Community and Economic Development on
page 8, lines 11 and 12 and appropriates $2.4 million general funds
to the component. Accompanying explanatory language reads as
follows.
MOA will match the state funds in the amount of $1,550,000.
This minor arterial is a missing transportation link and the
municipality plans to construct the Rovenna Street to Arctic
Boulevard link. Construction funding for the State's larger
project to connect Raspberry Road to Dowling Road in this area
is not expected before 2010. In 2003, the project was a high
priority of the MOA 70/30 program, which has been
discontinued. The residents of the area of this project
support it wholeheartedly but only if both the State and the
Municipal sections of the extension are done at the same time.
The Municipal section is up for design and construction and
the design and construct for the State extension should happen
at the same time. This project serves to relieve congestion
and is necessary to complete the long-term plan to connect
Raspberry and Dowling for a much needed additional East-West
corridor.
Co-Chair Wilken moved for adoption.
AT EASE 7:54:35 PM / 8:03:40 PM
There being no objection, Amendment #77 was ADOPTED.
Amendment #78: This amendment inserts a new Municipality of
Anchorage - Pavement Rehabilitation Projects, 50/50 Matching Grant
component in to the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 8, lines 11
and 12 and appropriates $2,275,000 general funds to the component.
Accompanying explanatory language reads as follows.
The MOA will match the state funds for a total of $1,000,000.
The combined amounts will fund approximately 10 MOA projects
area-wide.
Co-Chair Wilken moved for adoption.
The amendment was ADOPTED without objection.
Amendment #79: This amendment inserts a new Municipality of
Anchorage - Strawberry Road/Jewel Lake Road Intersection
Improvements component in to the Grants to Municipalities BRU,
Department of Commerce, Community and Economic Development on page
8, lines 10 and 11, and appropriates $1.3 million general funds to
the component. Accompanying explanatory language reads as follows.
This project will include signalization, channelization, and
pedestrian improvements at the intersection of Strawberry Road
and Jewel Lake Road.
The municipality is providing matching funds for the
Strawberry Road portion, which is municipally owned.
Co-Chair Wilken moved for adoption.
Co-Chair Green announced that Amendment #79 was WITHDRAWN.
[NOTE: This Amendment was re-considered later.]
Co-Chair Green announced that Amendment #80 was WITHDRAWN.
[NOTE: This Amendment was re-considered later.]
Co-Chair Green announced that Amendment #81 was WITHDRAWN.
[NOTE: This Amendment was re-considered later.]
Co-Chair Green announced that Amendment #82 was WITHDRAWN.
[NOTE: This Amendment was re-considered later.]
AT EASE: 8:04:44 PM / 8:05:23 PM
Amendment #79: This amendment inserts a new Municipality of
Anchorage - Strawberry Road/Jewel Lake Road Intersection
Improvements component in to the Grants to Municipalities BRU,
Department of Commerce, Community and Economic Development on page
8, lines 10 and 11, and appropriates $1.3 million general funds to
the component. Accompanying explanatory language reads as follows.
This project will include signalization, channelization, and
pedestrian improvements at the intersection of Strawberry Road
and Jewel Lake Road.
The municipality is providing matching funds for the
Strawberry Road portion, which is municipally owned.
Co-Chair Wilken moved for adoption.
Co-Chair Green overviewed the explanatory statement.
Senator Hoffman requested an explanation of the municipality-
provided matching funds.
8:06:40 PM
JAMES ARMSTRONG, Staff to Co-Chair Wilken, informed of the recent
bond issuance by the Municipality of Anchorage. Revenues generated
from these bonds would be appropriated to match the State
appropriation.
8:07:18 PM
Co-Chair Green asked if the ratio of municipal funding to State
funding would be equal
Mr. Armstrong understood this to be so.
Without objection the Amendment #80 was ADOPTED.
8:07:41 PM
Amendment #80: This amendment inserts a new Municipality of
Anchorage - Pintail Street at Huffman Road Safety Improvements
component in to the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 8, lines 10
and 11 and appropriates $490,000 general funds to the component.
Accompanying explanatory language reads as follows.
This project will construct safety and channelization
improvements on Pintail Street. Improvements are expected to
include pavement, a northbound right-turn lane onto Huffman
Road, and street lighting. Project design has been funded. The
project will improve safety.
Co-Chair Wilken moved for adoption.
The amendment was ADOPTED without objection.
Amendment #81: This amendment inserts a new Municipality of
Anchorage - Flooding and Glaciations Projects, 50/50 Matching Grant
component in to the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 8, lines 10
and 11 and appropriates $500,000 to the component. Accompanying
explanatory language reads as follows.
The MOA will match the state funds for a total of $1,000,000.
The combined amounts will fund approximately 18 MOA projects
area-wide.
Co-Chair Wilken moved for adoption.
There being no objection, the amendment was ADOPTED.
8:08:06 PM
Amendment #82: This amendment inserts a new Municipality of
Anchorage - Pedestrian Safety Projects, 50/50 Matching Grant
component in to the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 8, lines 10
and 11 and appropriates $500,000 general funds to the component.
Accompanying explanatory language reads as follows.
The MOA will match the state funds for a total of $1,000,000.
The combined amounts will fund approximately 13 MOA pedestrian
safety projects area-wide.
Co-Chair Wilken moved for adoption.
Without objection the amendment was ADOPTED.
8:08:24 PM
Amendment #83: This amendment inserts a new bill section to read as
follows.
Section X. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. The sum of $275,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for a grant to the Atwood Foundation to
assist with the review of the CDQ Program including state
regulations.
This amendment also provides an effective date of May 10, 2005 for
FY 05 and FY 06 for the added section.
Senator Hoffman announced that the amendment would be NOT OFFERED.
AT EASE 8:08:55 PM / 8:09:49 PM
Amendment #84: This amendment inserts a new Inuit Circumpolar
Conference - Alaska component to the Grants to Named Recipients (AS
37.05.316 BRU, Department of Commerce, Community and Economic
Development on page 3, lines 30 and 31 and appropriates $150,000
general funds to the component.
Senator Olson moved for adoption.
There being no objection the amendment was ADOPTED.
Amendment #84 Part II: This amendment deletes the City of
Unalakleet - Unalakleet Equipment Purchase and Repair (HD 40)
component from the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 12, lines 31
through 33, and deletes the $75,000 general fund appropriation to
the component.
This amendment also inserts a new Inuit Circumpolar Conference -
Alaska component in to the Grants to Named Recipients BRU,
Department of Commerce, Community and Economic Development on page
3, lines 30 and 31, and appropriates $75,000 to the component.
Co-Chair Green announced this amendment would be NOT OFFERED.
AT EASE 8:10:21 PM / 8:12:26 PM
Amendment #85: This amendment inserts a new Alaska Works
Partnership Pipeline Training Equipment component in to the Grants
to Named Recipients BRU, Department of Commerce, Community and
Economic Development on page 3, lines 30 and 31, and appropriates
$1.5 million to the component. The funding source is not indicated.
Accompanying explanatory language reads as follows.
Alaska Works Partnership desires to participate in the Alaska
Technical and Vocational Education Program (TVEP) by
increasing the contribution from .10% to .130% for pipeline
training and equipment needs. This increase should raise an
additional $1.5 million per year for federally registered
jointly administered labor/management training trusts in
Alaska.
Co-Chair Green announced this amendment would be NOT OFFERED.
Amendment #86: This amendment increases the appropriation to the
City of Delta Junction - Road Improvements component in the Grants
to Municipalities BRU, Department of Commerce, Community and
Economic Development on page 9, lines 14 and 15 from $100,000 to
$300,000. The funding source of the additional amount is not
specified.
Co-Chair Wilken moved for adoption.
Co-Chair Green noted the increase of $200,000 to this project.
There being no objection, Amendment #86 was ADOPTED.
8:12:38 PM
Amendment #87: This amendment increases the appropriation to the
Chickaloon Fire Service Corp. - Equipment and Training (HD 7-11)
component of the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development, on page 5, lines 13
through 15 from $30,000 to $55,000. The funding source of the
additional amount is not specified.
Co-Chair Wilken moved for adoption.
Co-Chair Green noted the increase of $25,000 to this project.
There being no objection, Amendment #87 was ADOPTED.
8:12:53 PM
Amendment #88: This amendment reads as follows.
Department of Commerce, Community and Economic Development
Grants to Municipalities
$500,000 is appropriated to the Department of Commerce,
Community and Economic Development, Office of the
Commissioner, as a grant to the City of Galena for the
engagement of experimental legal and technical analysis in the
preparation of a series of required white papers to address
public concerns and regulation requirements for the proposed
mini-nuclear power plant at Galena.
Co-Chair Wilken moved for adoption.
Co-Chair Green noted a friendly amendment to the amendment, of
which she is the sponsor, to delete "experimental" and insert
"expert". No Committee action is required and the amendment was
AMENDED.
Ms. Blaisdell furthered that "Office of the Commissioner" should
also be deleted from the language of the amendment. She then
outlined the amendment.
Without objection the amended amendment was ADOPTED.
[The intent of the Committee is assumed that the deletion suggested
by Ms. Blaisdell was made to the language of the amendment.]
8:14:12 PM
Amendment #89: This amendment inserts a new Cook Inlet Tribal
Council - Development of Delancey Street and Hchanlyut component to
the Grants to Named Recipients BRU, Department of Commerce,
Community and Economic Development on page 3, lines 30 and 31, and
appropriates $100,000 to the component. The funding source is not
specified.
Co-Chair Wilken moved for adoption.
Co-Chair Green announced this amendment would be WITHDRAWN.
Amendment #90: This amendment inserts a new City of Valdez - Harbor
Improvements and Maintenance component in to the Grants to
Municipalities BRU, Department of Commerce, Community and Economic
Development, on page 8, lines 10 and 11, and appropriates $500,000
to the component. The funding source is not specified. Accompanying
explanatory language reads as follows.
This appropriation will in essence turn over the operation of
the Valdez City Harbor to the city.
Co-Chair Green announced this amendment would be NOT OFFERED.
8:14:31 PM
Amendment #91: This amendment inserts a new Alaska Loggers
Association Retirement Plan and Trust (for payment to the Pension
Benefit Guaranty Corporation) component in to the Grants to Named
Recipients BRU, Department of Commerce, Community and Economic
Development on page 3, lines 30 and 31, and appropriates $500,000
general funds to the component.
Co-Chair Wilken moved for adoption.
The amendment was ADOPTED without objection.
Amendment #92: this amendment increases the general fund
appropriation to the Facilities Deferred Maintenance and Critical
Repairs (HD 1-40) component of the Department of Transportation and
Public Facilities on page 46, lines 7 through 9, from $1.25 million
to $4 million.
This amendment also inserts a new Statewide: Airport Lease Lots
Development component to the Department of Transportation and
Public Facilities on page 45, line 32, and appropriates $2 million
general funds to the component.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell outlined the amendment.
Senator Hoffman asked what airports would be involved in the second
component of the amendment.
8:15:43 PM
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities, testified that
several rural airports would be appropriate for the development of
lease lots, including those located at Barrow, Deadhorse, Nome,
Birchwood, Bethel, Willow, Sitka, Hoonah, and Haines. Land in the
selected locations would be cleared, graded and otherwise prepared
for development by private investments.
8:16:28 PM
Co-Chair Green asked if the airports would subsequently become
income producing.
Ms. Slagle answered yes.
Senator Olson questioned the demand for the land located near the
Haines airport.
8:16:56 PM
Ms. Slagle replied that some land could be developed for aircraft
hangers.
8:17:22 PM
There being no objection, Amendment #92 was ADOPTED.
8:17:31 PM
Amendment #93: This amendment increases the appropriation to the
AHFC Birch Park Window Replacement (HD 7-11) component of the
Alaska Housing Finance Corporation BRU, Department of Revenue, on
page 44, lines 25 and 26, from $650,000 to $1,323,000 other funds.
Accompanying explanatory language reads as follows.
This amendment restores the full funding request for the Birch
Park Window Replacement project.
The project utilized Corporate (AHFC) funds to replace all the
windows at Birch Park I and Birch Park II in Fairbanks.
Replacement of these windows will reduce energy loss and
increase comfort for the residents. These windows need to be
replaced to maintain the structural integrity of the
buildings. The new windows will be commercial grade with
standardized hardware. This project will lower routine
maintenance costs and provide for health and safety issues
i.e. fire egress and security.
Co-Chair Wilken moved for adoption.
Co-Chair Green clarified the changes made to the amendment before
it was submitted for consideration.
Co-Chair Green announced the amendment was ADOPTED.
Amendment #44: This amendment inserts a new subsection into Section
22. OFFICE OF THE GOVERNOR., on page 98, line 9 to read as follows.
(a) Section 8(a), ch. 6, SLA 2005, is amended to read:
(a) The sum of $375,000 is appropriated from
the general fund to the Office of the Governor for
direct support of national efforts to open the
coastal plain of the Arctic National Wildlife
Refuge for oil and gas exploration and development,
and other oil and gas and natural resource
development projects, for the fiscal years ending
June 30, 2005, and June 30, 2006.
New Text Underlined
This amendment then renumbers the existing subsections of Section
22 accordingly. Accompanying explanatory language reads,
"Description: This extends the purpose of the appropriation."
This amendment was tabled at the previous hearing.
Co-Chair Wilken offered a motion to withdraw the motion to adopt
the amendment.
Without objection the amendment was WITHDRAWN.
Amendment #85: This amendment inserts a new Alaska Works
Partnership Pipeline Training Equipment component in to the Grants
to Named Recipients BRU, Department of Commerce, Community and
Economic Development on page 3, lines 30 and 31, and appropriates
$1.5 million to the component. The funding source is not indicated.
Accompanying explanatory language reads as follows.
Alaska Works Partnership desires to participate in the Alaska
Technical and Vocational Education Program (TVEP) by
increasing the contribution from .10% to .130% for pipeline
training and equipment needs. This increase should raise an
additional $1.5 million per year for federally registered
jointly administered labor/management training trusts in
Alaska.
Co-Chair Green had announced earlier in the meeting that this
amendment would not be considered.
Senator Hoffman asked the reason for this action and whether the
State appropriation would garner federal funding to "bring in
substantial training dollars to the State."
Co-Chair Green replied that she had not received adequate
information on the merits of the proposal.
Senator Hoffman requested the Department of Labor and Workforce
Development respond to questions on the amendment.
8:19:41 PM
GUY BELL, Assistant Commissioner, Department of Labor and Workforce
Development, testified that the Technical Vocational Education
Program is a fund derived from employee contributions. These
contributions are statutorily limited to .10 percent of an
employee's earnings. The funds are distributed to various entities
and would be insufficient to fund the new component.
Senator Hoffman stressed that the training would be necessary to
provide jobs constructing the proposed natural gas pipeline.
Mr. Bell reiterated that increasing the percent withheld from
employee earnings would require statutory changes.
Mr. Bell also noted the appropriation would not secure federal
funding, only State funds would be involved.
Amendment #45: This amendment adds "and other oil and gas and
natural resource development projects" to subsection (a) of Section
22. OFFICE OF THE GOVERNOR., on page 98, lines 9 through 12. The
amended subsection reads as follows.
(a) The sum of $125,000 is appropriated from the Alaska
Permanent Fund Corporation receipts to the Office of the
Governor for direct support of national efforts to open the
coastal plain of the Arctic National Wildlife Refuge for oil
and gas exploration and development, and other oil and gas and
natural resource development projects, for the fiscal years
ending June 30, 2005, and June 30, 2006.
Accompanying explanatory language reads, "Description: This expands
the purpose of the appropriation."
A motion to adopt the amendment was tabled at the previous hearing.
Co-Chair Wilken reoffered his motion for adoption. He read the
language of the amendment into the record.
8:24:04 PM
Co-Chair Green clarified this language would not duplicate language
adopted in a separate amendment.
Ms. Blaisdell affirmed.
There being no objection, Amendment #45 was ADOPTED.
Amendment #52: This amendment inserts a new Fraternal Order of
Alaska State Troopers (FOAST) Photo/Video Project Program
Implementation component to the Grants to Named Recipients BRU,
Department of Commerce, Community and Economic Development on page
3, lines 30 and 31 and appropriates $50,000. The fund source is not
specified.
[Note: A motion to adopt the amendment was tabled at the previous
hearing.]
Co-Chair Wilken moved for adoption. At Co-Chair Green's request he
outlined the amendment.
There being no objection, Amendment #52 was ADOPTED.
8:25:16 PM
Amendment #53: This amendment inserts a new City of Adak - Adak
Arctic Shuttle Pre-Feasibility Study component to the Grants to
Municipalities (AS 37.05.315) BRU, Department of Commerce,
Community and Economic Development on page 8, lines 11 and 12 and
appropriates $50,000 to the component. The fund source is not
specified.
[Note: A motion to adopt the amendment was tabled at the previous
hearing.]
Co-Chair Wilken moved for adoption.
There being no objection, Amendment #53 was ADOPTED.
AT EASE 8:25:42 PM / 8:34:59 PM
Co-Chair Green announced that Amendment #63, which was tabled at
the previous hearing, would be reviewed and possibly amended.
Amendment #83: This amendment inserts a new bill section to read as
follows.
Section X. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. The sum of $275,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for a grant to the Atwood Foundation to
assist with the review of the CDQ Program including state
regulations.
This amendment also provides an effective date of May 10, 2005 for
FY 05 and FY 06 for the added section.
[Note: Senator Hoffman announced earlier in the meeting that this
amendment would not be offered and no action was taken on the
amendment.]
Senator Olson, at the direction of Co-Chair Green, offered a motion
to rescind Committee action taken on Amendment #83 and moved to
adopt the amendment.
Without objection the amendment was ADOPTED.
Co-Chair Green understood that Amendment #83 would have a FY 06
effective date.
Senator Olson affirmed.
8:36:57 PM
Co-Chair Green directed attention to information distributed to
members [copy not provided.] She described the information as "a
letter, a copy of a packet of letters that are the result of an
adverse decision."
ART CHANCE, Director, Labor Relations, Department of
Administration, testified that the State lost in arbitration, a
dispute with the teachers unit at the Mt. Edgecumbe school
involving compensation for a preparatory period during the workday.
The school schedule had been changed to include this additional
period and the arbitrator ruled that the teachers must be
compensated for the additional hours they were required to work. A
decision was made to maintain the schedule for the remainder of the
school year. As a result, approximately $170,000 in additional
funding is needed. The class schedule would be changed for the next
school year.
Co-Chair Green remarked that the information was provided as a
proposed amendment. It was not her intent to offer the amendment
because such a precedent should not be set.
8:40:30 PM
Mr. Chance informed of the statutory requirement that the
Department report this information to the legislature, as it
implicates monetary terms for consideration at the discretion of
the legislature. The possibility that the arbitration ruling could
be reversed in court was considered and deemed unlikely by the
Department of Law. He stated, "Absent your telling us that you
disapprove under Section 215 of [indiscernible], we are bound by
the lawful award of the arbitrator."
Co-Chair Green avowed, "We do object to paying this."
AT EASE 8:41:40 PM / 8:48:53 PM
Amendment #45: This amendment adds "and other oil and gas and
natural resource development projects" to subsection (a) of Section
22. OFFICE OF THE GOVERNOR., on page 98, lines 9 through 12. The
amended subsection reads as follows.
(a) The sum of $125,000 is appropriated from the Alaska
Permanent Fund Corporation receipts to the Office of the
Governor for direct support of national efforts to open the
coastal plain of the Arctic National Wildlife Refuge for oil
and gas exploration and development, and other oil and gas and
natural resource development projects, for the fiscal years
ending June 30, 2005, and June 30, 2006.
Accompanying explanatory language reads, "Description: This expands
the purpose of the appropriation."
[Note: This amendment was adopted earlier in the meeting.]
Co-Chair Wilken offered a motion to rescind action previously taken
in adopting the amendment.
There being no objection, the action in adopting the amendment was
RESCINDED.
Amendment #95: This amendment changes the language of subsection
(a) of Section 22. OFFICE OF THE GOVERNOR., on page 98, lines 9
through 12. The amended language reads as follows.
(a) The sum of $125,000 is appropriated from the general fund
to the Office of the Governor for direct support of national
efforts to open the coastal plain of the Arctic National
Wildlife Refuge for oil and gas exploration and development,
and other oil and gas and natural resource development
projects, for the fiscal years ending June 30, 2005, and June
30, 2006.
Accompanying explanatory language reads, "This expands the purpose
of the appropriation."
Co-Chair Green noted this language would replace the language of
Amendment #45.
There being no objection, Amendment #95 was ADOPTED.
Amendment 94: This amendment changes the funding sources of
appropriations made in Section 21, GAS PIPELINE, on page 96, line
19, through page 98, line 8, from general funds and Alaska
Permanent Fund Corporation receipts, to general funds exclusively.
Co-Chair Wilken moved for adoption.
Co-Chair Green outlined the amendment.
Co-Chair Wilken noted the appropriation is for activities intended
to prepare for a natural gas pipeline.
8:49:55 PM
Senator Hoffman asked if the only change is the funding source.
Co-Chair Green affirmed the Alaska Permanent Fund Corporation
receipts would be replaced with general funds.
There being no objection, Amendment #94 was ADOPTED.
8:50:30 PM
Senator Olson clarified that the effective date of Amendment #83
should be May 10, 2005.
AT EASE 8:51:08 PM / 8:52:40 PM
Senator Olson further reiterated that the effective date of May 10,
2005 applies to the fiscal years ending June 30 2005, and June 30,
2006.
Co-Chair Green deemed that the clarification was adopted.
8:53:11 PM
Co-Chair Green announced the conclusion of consideration of
amendments to the operating budget.
Ms. Blaisdell requested the Committee grant authority to the
Division of Legislative Finance and the Division of Legal and
Research Services to make any necessary technical and conforming
changes.
Co-Chair Green affirmed, for the record, that this is the intent of
the Committee.
The bill was HELD in Committee.
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