Legislature(2007 - 2008)SENATE FINANCE 532

05/07/2007 01:30 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 72 COMMUNITY REVENUE SHARING TELECONFERENCED
Moved CSSB 72(FIN) Out of Committee
*+ SB 124 ALASKA WORKFORCE INVESTMENT BD ALLOCATION TELECONFERENCED
Moved CSSB 124(FIN) Out of Committee
*+ SB 53 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
Moved CSSB 53(FIN) Out of Committee
* AMENDMENTS
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     SENATE BILL NO. 53                                                                                                         
     "An   Act    making   appropriations,    including   capital                                                               
     appropriations,     supplemental     appropriations,     and                                                               
     appropriations  to capitalize  funds; and  providing for  an                                                               
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the sixth hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Hoffman offered a motion  to adopt committee substitute,                                                               
Version  25-GS1014\O, Kane,  dated May  6, 2007,  as the  working                                                               
document.                                                                                                                       
                                                                                                                                
There being  no objection, the  Version "O"  committee substitute                                                               
was ADOPTED as the working document.                                                                                            
                                                                                                                                
3:29:16 PM                                                                                                                    
                                                                                                                                
FRED FISHER, Staff  to Senator Bert Stedman,  stated that Version                                                               
"O"   includes  appropriation   items  inadvertently   missed  in                                                               
previous versions of the bill. It also corrects drafting errors.                                                                
                                                                                                                                
Mr. Fisher identified the items added by the committee                                                                          
substitute as follows.                                                                                                          
                                                                                                                                
     Section 1. Department of Health and Social Services (DHSS)                                                                 
     Grants to Named Recipient additions:                                                                                       
                                                                                                                                
          $50,000   General    Funds   (GF)   for    the   Alaska                                                               
          Telecommunications,  Incorporated  -  Air  Conditioning                                                               
         System Replacement (HD 17-32), page 4, line 5.                                                                         
                                                                                                                                
          $1,000,000  GF for  the  Association  of Alaska  School                                                               
          Boards  - Consortium  for Digital  Learning (HD  1-40),                                                               
          page 7, line 25.                                                                                                      
                                                                                                                                
          $50,000  GF  for  the Southeast  Alaska  Regional  Dive                                                               
          Fisheries  Association -  Geoduck Assessment  (HD 1-5),                                                               
          page 24 line 31.                                                                                                      
                                                                                                                                
          $100,000  GF  for  the Southeast  Conference  -  Energy                                                               
          Program (HD 1-5), page 25, line 4.                                                                                    
                                                                                                                                
          $100,000  GF  for  the Southeast  Conference  -  Timber                                                               
          Industry Revitalization Program (HD  1-5), page 25 line                                                               
          6.                                                                                                                    
                                                                                                                                
     Section 1, Department of Health and Social Services                                                                        
     Grants to Municipalities                                                                                                   
                                                                                                                                
          $1,000,000   GF  to   the  City   of  Seward   -  Levee                                                               
          Construction (HD 33-35), page 53, line 30.                                                                            
                                                                                                                                
     Section 1, Department of Fish and Game                                                                                     
                                                                                                                                
          $100,000 GF  Geoduck Assessment Surveys (HD  1-5), page                                                               
          57, line 5.                                                                                                           
                                                                                                                                
     Section 1, Department of Revenue                                                                                           
                                                                                                                                
          $5,000,000  GF to  the Alaska  Natural Gas  Development                                                               
          Authority, page 57, line 22.                                                                                          
                                                                                                                                
Mr. Fisher stated  that, in addition to  correcting some drafting                                                               
errors, the  committee substitute  also made some  titles changes                                                               
at the request of sponsors.  Effective date corrections were also                                                               
made.                                                                                                                           
                                                                                                                                
3:32:19 PM                                                                                                                    
                                                                                                                                
Mr. Fisher advised of the  following intent language, inserted on                                                               
page 80, line  21 applicable to the  Department of Transportation                                                               
and Public Facilities, Statewide  Federal Programs Budget Request                                                               
Unit (BRU),  Federal-Aid Highway State Match  (HD 1-40) component                                                               
of Section 4.                                                                                                                   
                                                                                                                                
     It is  the intent  of the legislature  that the  Federal Aid                                                               
     Highway State Match funds may  be used for advance right-of-                                                               
     way  acquisition for  Federal Aid  Highway Program  eligible                                                               
     projects.                                                                                                                  
                                                                                                                                
Mr.  Fisher explained  that this  action would  likely result  in                                                               
savings to  the Department. Such  expenditures would  continue to                                                               
be included in a project's cost calculations.                                                                                   
                                                                                                                                
Mr. Fisher  concluded his review  of the major  changes contained                                                               
in the committee substitute.                                                                                                    
                                                                                                                                
3:33:50 PM                                                                                                                    
                                                                                                                                
Amendment  #1: This  amendment,  sponsored  by Co-Chair  Stedman,                                                               
inserts a new bill section to read as follows.                                                                                  
                                                                                                                                
          Sec. A. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The                                                                 
     unexpended   and  unobligated   balance,  estimated   to  be                                                               
     $500,000, of pioneers' home care  and support receipts under                                                               
     AS 47.55.030  collected during the  fiscal year  ending June                                                               
     30, 2007,  is appropriated to  the Department of  Health and                                                               
     Social  Services for  pioneers' homes  equipment and  supply                                                               
     needs.                                                                                                                     
                                                                                                                                
This amendment  also provides for  an effective date of  June 30,                                                               
2007 of the provision of the new bill section.                                                                                  
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     During  the  summer  of 2006  the  department  reviewed  and                                                               
     identified necessary repairs  to State-owned facilities. The                                                               
     Pioneer Homes  have a  wide range  of safety  and sanitation                                                               
     issues that need to be  addressed. Homes contain furnishings                                                               
     that are damaged  or broken that pose a risk  of injury to a                                                               
     resident, such  as broken corners on  night tables, unstable                                                               
     legs on chairs, etc. In  many areas the draperies are beyond                                                               
     repair or  cleaning and  need to be  replaced so  they don't                                                               
     pose a  health hazard  with germs or  mold. As  the resident                                                               
     population requires  a higher  level of  care, accommodating                                                               
     equipment, bed and/or mattress  replacement becomes an issue                                                               
     as well.  This funding will  allow the resident  receipts to                                                               
     be used towards these various on-going needs.                                                                              
                                                                                                                                
Co-Chair Stedman  moved for adoption and  objected for discussion                                                               
purposes. He read the explanatory statement into the record.                                                                    
                                                                                                                                
3:34:52 PM                                                                                                                    
                                                                                                                                
Co-Chair   Stedman  commented   that  this   appropriation  would                                                               
facilitate applying federal funds  to support the State's Pioneer                                                               
Homes.                                                                                                                          
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
There being no other objection, Amendment #1 was ADOPTED.                                                                       
                                                                                                                                
3:35:21 PM                                                                                                                    
                                                                                                                                
Amendment #2:  This amendment, sponsored  by Co-Chair  Stedman at                                                               
the request of  Senator Ellis, deletes the Anchorage  - East High                                                               
School  Music/Visual Art  Technology Grant  (HD 17-32)  component                                                               
and  the $22,000  general fund  appropriation  to that  component                                                               
from  the   Department  of   Commerce,  Community   and  Economic                                                               
Development, Grants to Municipalities  (AS 39.05.315) BRU on page                                                               
33 lines 5 through 7.                                                                                                           
                                                                                                                                
This amendment also  adds $12,000 general funds  to the Anchorage                                                               
-  Tudor Elementary  School Computer  Lab Upgrade  (ED 17-32)  on                                                               
page 40, lines 29 through 32.                                                                                                   
                                                                                                                                
This amendment also adds $10,000  general funds to a Municipality                                                               
of  Anchorage -  Northern  Lights Sound  Barrier Fence  component                                                               
[not included in the committee substitute].                                                                                     
                                                                                                                                
Accompanying  explanatory  language   indicates  that  the  total                                                               
appropriation to  the Tudor Elementary School  component would be                                                               
$22,000  and  the  total appropriation  to  the  Northern  Lights                                                               
component  would  be  $297,000. Additional  explanatory  language                                                               
reads  "Original project  (East  High School  - Music/Visual  Art                                                               
Technology Grant) was duplicated by other office.                                                                               
                                                                                                                                
Co-Chair Stedman moved for adoption  and objected for discussion.                                                               
He read the explanatory statement  into the record and noted that                                                               
the deletion  of the  Anchorage -  East High  School Music/Visual                                                               
Art Technology  funding was a technical  correction. That funding                                                               
had been addressed in a separate allocation.                                                                                    
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #2 was ADOPTED.                                                                            
                                                                                                                                
3:36:11 PM                                                                                                                    
                                                                                                                                
Amendment  #3:  This  amendment, sponsored  by  Senator  Huggins,                                                               
deletes the  Matanuska-Susitna Borough  - Big Lake  Library Books                                                               
and Supplies  (HD 13-16)  component and  the $5,000  general fund                                                               
appropriation to that component  from the Department of Commerce,                                                               
Community and Economic Development,  Grants to Municipalities (AS                                                               
39.05.315) BRU on page 48 lines 11 through 13.                                                                                  
                                                                                                                                
This amendment also  adds a new Big Lake Library  Advocates - Big                                                               
Lake Library Upgrade  Technology and or Library  Books (HD 13-16)                                                               
component to  the Department of Commerce,  Community and Economic                                                               
Development  Grants to  Named Recipients  (AS 37.05.316)  BRU, on                                                               
page 2,  lines 10 and  11, and appropriates $5,000  general funds                                                               
to that component.                                                                                                              
                                                                                                                                
Accompanying  explanatory language  reads,  "Correction to  Grant                                                               
Recipient and  title - the funding  is intended to go  to the Big                                                               
Lake Library Advocates not the Mat-Su Borough."                                                                                 
                                                                                                                                
Co-Chair Stedman  moved for  adoption and  objected to  point out                                                               
that the amendment would correctly  direct the funding to the Big                                                               
Lake   Library  Advocates   rather  than   the  Matanuska-Susitna                                                               
Borough.                                                                                                                        
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
There  being  no  other  further   objection,  Amendment  #3  was                                                               
ADOPTED.                                                                                                                        
                                                                                                                                
3:36:57 PM                                                                                                                    
                                                                                                                                
Amendment  #4: This  amendment,  sponsored  by Co-Chair  Stedman,                                                               
transfers the  Four Dam  Pool Power  Agency -  Swan Lake  to Lake                                                               
Tyee Intertie  (HD 1-5) component  and $46.2 million  Other Funds                                                               
appropriation to that component  from the Department of Commerce,                                                               
Community  and Economic  Development Grants  to Named  Recipients                                                               
(AS  37.05.316) BRU  on page  65,  lines 9  through 11  to a  new                                                               
Alaska  Energy  Authority  -  Grants   to  Named  Recipients  (AS                                                               
37.05.316)  BRU  on  page  65,  following  line  3.  Accompanying                                                               
explanatory language reads as follows.                                                                                          
                                                                                                                                
     This amendment  makes the grant  to the Four Dam  Pool Power                                                               
     Agency more specifically administrable  by the Alaska Energy                                                               
     Authority.  This   agrees  with  the   governor's  amendment                                                               
     requesting the change.                                                                                                     
                                                                                                                                
Co-Chair Stedman  moved for adoption and  objected for discussion                                                               
purposes. The explanatory language was read into the record.                                                                    
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Amendment #4 was ADOPTED without further objection.                                                                             
                                                                                                                                
3:37:52 PM                                                                                                                    
                                                                                                                                
Amendment  #5:  This  amendment, sponsored  by  Senator  Huggins,                                                               
inserts a new bill section to read as follows.                                                                                  
                                                                                                                                
     Sec.  A. HOUSE  DISTRICTS 13  - 16.  (a) The  unexpended and                                                               
     unobligated  balances,   not  to  exceed  $20,000,   of  the                                                               
     appropriations made in  sec. 1, ch. 159, SLA  2004, page 31,                                                               
     lines  19  -  23  (Willow  Creek  state  recreational  area,                                                               
     temporary  shallow  water  boat  launch  and  winter  access                                                               
     trailhead -  $125,000) and sec.  1, ch. 3, FSSLA  2005, page                                                               
     63, lines 6  - 10 (Willow Creek state  recreation area phase                                                               
     II: parking lot  at crude shallow water boat  launch site at                                                               
     mile 49.7  - $125,000) are reappropriated  to the Department                                                               
     of Commerce, Community and  Economic Development for payment                                                               
     as a  grant under AS  37.05.316 to the Willow  Area Seniors,                                                               
     Inc., for  a driveway chip  seal for Willow Haven  Center at                                                               
     Parks Highway near mile 70.                                                                                                
          (b) The unexpended and unobligated balances, not to                                                                   
     exceed $18,000,  of the appropriations  made in sec.  1, ch.                                                               
     159, SLA  2004, page 31, lines  19 - 23 (Willow  Creek state                                                               
     recreational area,  temporary shallow water boat  launch and                                                               
     winter  access trailhead  -  $125,000) and  sec.  1, ch.  3,                                                               
     FSSLA  2005, page  63,  lines  6 -  10  (Willow Creek  state                                                               
     recreation  area  phase II:  parking  lot  at crude  shallow                                                               
     water  boat  launce  site  at  mile  49.7  -  $125,000)  are                                                               
     reappropriated  to  the  Department  of  Transportation  and                                                               
     Public Facilities  to Willow Lake, Float  Plane Access Road,                                                               
     chip seal of 400 lineal feet of road 22 feet wide.                                                                         
          (c) Any remaining unexpended and unobligated balances,                                                                
     after  the  appropriations  made  in (a)  an  d(b)  of  this                                                               
     section, of the appropriations made  in sec. 1, ch. 159, SLA                                                               
     2004,  page   31,  lines  19   -  23  (Willow   Creek  state                                                               
     recreational area,  temporary shallow water boat  launch and                                                               
     winter  access trailhead  -  $125,000) and  sec.  1, ch.  3,                                                               
     FSSLA  2005, page  63,  lines  6 -  10  (Willow Creek  state                                                               
     recreation  area  phase II:  parking  lot  at crude  shallow                                                               
     water  boat  launce  site  at  mile  49.7  -  $125,000)  are                                                               
     reappropriated to the Department  of Commerce, Community and                                                               
     Economic  Development  for  payment  as  a  grant  under  AS                                                               
     37.05.315  to the  Matanuska-Susitna  Borough for  Hollywood                                                               
     Road improvements  needed for  road and  safety improvements                                                               
     for new school.                                                                                                            
                                                                                                                                
Co-Chair Stedman moved for adoption  and objected for purposes of                                                               
explanation.                                                                                                                    
                                                                                                                                
3:38:02 PM                                                                                                                    
                                                                                                                                
Senator   Huggins    explained   that   this    amendment   would                                                               
reappropriate funding  from a boat  launch near the  Willow Creek                                                               
State Recreational area  to support chip seal paving  at a senior                                                               
citizen housing  complex in the area  and to improve access  to a                                                               
new elementary school.                                                                                                          
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #5 was ADOPTED.                                                                            
                                                                                                                                
3:39:02 PM                                                                                                                    
                                                                                                                                
Amendment  #6: This  amendment,  sponsored  by Co-Chair  Stedman,                                                               
adds a  new Hope Community  Resources, Inc. (HD  1-40), component                                                               
to   the  Department   of   Commerce,   Community  and   Economic                                                               
Development,  Grants to  Named Recipients  (AS 37.05.316)  BRU on                                                               
page 2, lines  10 and 11 and appropriates  $300,000 general funds                                                               
to that  component. A  notation reads  "Attached list  of project                                                               
detail and communities"; however no such list was provided.                                                                     
                                                                                                                                
Co-Chair Stedman moved for adoption  and objected to comment that                                                               
this  amendment  would add  a  grant  for  $300,000 GF  for  Hope                                                               
Community Resources to the Grants  to Named Recipients list under                                                               
the Department of Commerce, Community and Economic Development.                                                                 
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
There being no further objection, Amendment #6 was ADOPTED.                                                                     
                                                                                                                                
3:39:40 PM                                                                                                                    
                                                                                                                                
Amendment  #7: This  amendment,  sponsored  by Co-Chair  Stedman,                                                               
deletes  the   Anchorage  -  Kincaid   Park  Soccer   and  Nordic                                                               
Improvements  (HD 17-31)  component and  $2 million  general fund                                                               
appropriation  from   that  component  from  the   Department  of                                                               
Commerce,   Community  and   Economic   Development,  Grants   to                                                               
Municipalities (AS  37.05.315) BRU, on  page 35 lines  29 through                                                               
31.  This amendment  also  adds  a new  Kincaid  Project Group  -                                                               
Kincaid Park Soccer and Nordic  Improvements (HD 17-31) component                                                               
to the Grants  to Named Recipients (AS 37.05.316) BRU  on page 2,                                                               
lines 10 and  11, and appropriates $2 million  to that component.                                                               
Accompanying explanatory language  reads, "Language change needed                                                               
so that the funds go to the correct recipient."                                                                                 
                                                                                                                                
Co-Chair Stedman  moved for  adoption and  objected to  point out                                                               
that this amendment would change the fund recipient.                                                                            
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #7 was ADOPTED.                                                                            
                                                                                                                                
3:40:33 PM                                                                                                                    
                                                                                                                                
Amendment  #8:  This  amendment,   sponsored  by  Senator  Olson,                                                               
deletes "NPRA" and inserts "ANWR" in  the title of the Kaktovik -                                                               
Educational Efforts Regarding  the NPRA (HD 40)  component in the                                                               
Department  of  Commerce,  Community  and  Economic  Development,                                                               
Grants to Municipalities (AS 37.05.315)  BRU on page 46, lines 19                                                               
through  21.  The  $50,000 general  fund  appropriation  to  that                                                               
component remains unchanged.                                                                                                    
                                                                                                                                
Co-Chair Stedman  moved for adoption  and objected to  receive an                                                               
explanation.                                                                                                                    
                                                                                                                                
3:40:43 PM                                                                                                                    
                                                                                                                                
Senator Olson stressed  that this amendment would  have no fiscal                                                               
impact.  Rather it  would change  the title  of the  component to                                                               
reflect that the  educational efforts would relate  to the Arctic                                                               
National  Wildlife  Refuge  (ANWR)  not  the  National  Petroleum                                                               
Reserve-Alaska (NPR-A).                                                                                                         
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #8 was ADOPTED.                                                                            
                                                                                                                                
3:41:29 PM                                                                                                                    
                                                                                                                                
Amendment  #9:  This  amendment,   sponsored  by  Senator  Dyson,                                                               
deletes the  Glenn Highway Lighting  Extension Project  (HD 7-11)                                                               
component  and  $139,000  general   fund  appropriation  to  that                                                               
component  from  the  Department  of  Transportation  and  Public                                                               
Facilities, on page 58 lines 14 and 15.                                                                                         
                                                                                                                                
This  amendment also  inserts  a new  subsection  to Section  14.                                                               
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT., on                                                               
page 120, following line 1, to read as follows.                                                                                 
                                                                                                                                
          (c) The sum of $139,000 is appropriated from the                                                                      
     general fund  to the Department  of Commerce,  Community and                                                               
     Economic  Development, Division  of Community  Advocacy, for                                                               
     studies to determine the  economic feasibility and financial                                                               
     impact  of  separating the  greater  Eagle  River -  Chugiak                                                               
     region from  the Municipality of Anchorage,  to evaluate and                                                               
     recommend  various   alternatives  and  scenarios   for  the                                                               
     governmental  structure  of  the separated  region,  and  to                                                               
     evaluate   and  recommend   allocation  of   various  assets                                                               
     currently shared  by the Municipality  of Anchorage  and the                                                               
     area  being  considered  for   separation,  and  other  such                                                               
     studies as the Division  of Community Advocacy may determine                                                               
     necessary to fully evaluate the alternatives.                                                                              
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The sum provided under SB  53 for the Glenn Highway lighting                                                               
     project  is $139,000  of  the  initially requested  $700,000                                                               
     necessary  to complete  this portion  of the  project. Since                                                               
     $139,000 is  substantially less  than the  requested amount,                                                               
     the funds would  be better spent completing  the Eagle River                                                               
    - Chugiak studies initiated, but not completed, in 2006.                                                                    
                                                                                                                                
     This  amendment deletes  the entire  $139,000 general  funds                                                               
     shown on Page  57, Lines 16 and 17  [of committee substitute                                                               
     Version  "L"] for  the Glenn  Highway Lighting  Project, and                                                               
     appropriates  a like  amount to  the  Division of  Community                                                               
     Advocacy  of  the  Department  of  Commerce,  Community  and                                                               
     Economic Development, to contract  for the completion of the                                                               
     studies.                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  moved  for  adoption  and  objected  to  allow                                                               
Senator Dyson to speak to the amendment.                                                                                        
                                                                                                                                
3:41:40 PM                                                                                                                    
                                                                                                                                
Senator  Dyson informed  the Committee  that additional  money is                                                               
required to  finish an economic  study on the  economic viability                                                               
of  the  Eagle River  community.  This  amendment would  redirect                                                               
funding allocated  in this bill for  the next phase of  the Glenn                                                               
Highway lighting  project to  the economic  study as  the funding                                                               
allocated to  the lighting project  was insufficient  to complete                                                               
it. The amendment is revenue neutral.                                                                                           
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Senator  Elton objected  to ask  the  history of  the efforts  to                                                               
determine viability and feasibility of  a separation of the Eagle                                                               
River and Chugiak area from the Municipality of Anchorage.                                                                      
                                                                                                                                
Senator  Dyson  responded  that $85,000  had  been  provided  the                                                               
previous  year  to  study  the  tax base  and  cost  of  services                                                               
currently delivered  in the Eagle  River and Chugiak  region. The                                                               
next  phase   would  address  how   the  public   facilities  and                                                               
properties would be divvied up in  terms of such things as "whose                                                               
bonds  paid  for   what"  in  the  event   that  the  communities                                                               
"divorced" themselves  from the  Municipality of  Anchorage. This                                                               
information is  critical in the  analysis of the "viability  of a                                                               
separate community."                                                                                                            
                                                                                                                                
3:44:14 PM                                                                                                                    
                                                                                                                                
Senator Elton  asked why  State general  funds were  proposed for                                                               
this effort.                                                                                                                    
                                                                                                                                
Senator  Dyson  expressed that  the  issue  of borough  and  city                                                               
formation is addressed  in the State Constitution  and in general                                                               
State  law.  It   is  specified  that  "funds   for  studies  for                                                               
formation,  dis-solutionment,   and  combining"   of  communities                                                               
should be addressed. The State  has funded similar efforts in the                                                               
past.                                                                                                                           
                                                                                                                                
Senator Elton removed his objection.                                                                                            
                                                                                                                                
There being no further objection, Amendment #9 was ADOPTED.                                                                     
                                                                                                                                
3:45:36 PM                                                                                                                    
                                                                                                                                
Amendment  #10: This  amendment, sponsored  by Co-Chair  Stedman,                                                               
inserts "and  Other Park Improvements"  following "Fence"  to the                                                               
title of the Mat-Su Baseball,  Inc. - Outfield and Backstop Fence                                                               
for the Mat-Su Miners Baseball  Field (HD 13-16) component in the                                                               
Department  of  Commerce,  Community  and  Economic  Development,                                                               
Grants to Named  Recipients (AS 37.05.316) BRU on  page 19, lines                                                               
30 through 33.                                                                                                                  
                                                                                                                                
Co-Chair Stedman moved for adoption and objected to the motion.                                                                 
                                                                                                                                
Co-Chair Stedman explained  the change to the  title was intended                                                               
to "enlarge the scope" of the project.                                                                                          
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #10 was ADOPTED.                                                                           
                                                                                                                                
3:46:17 PM                                                                                                                    
                                                                                                                                
Amendment #11: This amendment, sponsored  by Senator Thomas, adds                                                               
a new  Fairbanks North Star  Borough - Road Service  Area Funding                                                               
component to  the Department of Commerce,  Community and Economic                                                               
Development, Grants to Municipalities  (AS 37.05.315) BRU on page                                                               
28, lines  31 and 32,  and appropriates $4 million  general funds                                                               
to  that component.  Accompanying explanatory  language reads  as                                                               
follows.                                                                                                                        
                                                                                                                                
     This  project   will  provide  for  the   basic  safety  and                                                               
     reliability  of access  on  the 469  miles  of service  area                                                               
     roads within  the FNSB, outside  the City of  Fairbanks. The                                                               
     funds  will be  passed  directly to  road  service areas  in                                                               
     accordance  with  a  priority  list developed  by  the  road                                                               
     service area committee.                                                                                                    
                                                                                                                                
This amendment also  adds a new University of  Alaska Fairbanks -                                                               
BioSciences  Facility  (BioS)  component  to  the  University  of                                                               
Alaska  on  page 59,  line  12,  and appropriates  $12.5  million                                                               
general  funds   to  that  component.   Accompanying  explanatory                                                               
language reads as follows.                                                                                                      
                                                                                                                                
     The BioSciences  Facility is the  Board of  Regents' highest                                                               
     priority for  new construction. This critical  facility will                                                               
     replace aging labs and  science infrastructure, allowing the                                                               
     university  to  continue  to compete  for  federal  research                                                               
     dollars.  This major  teaching  and  research facility  will                                                               
     have  a   significant  impact  on  both   undergraduate  and                                                               
     graduate  students  as  well   as  provide  urgently  needed                                                               
     research facilities.                                                                                                       
                                                                                                                                
     The  total cost  of  the  project is  estimated  to be  $105                                                               
     million.  $12.5  million  will   provide  for  planning  and                                                               
     design,   utilidor   construction   and   heating   capacity                                                               
     expansion in preparation for the facility.                                                                                 
                                                                                                                                
This  amendment  also adds  a  new  Fairbanks North  Star  School                                                               
District  -  Central  Kitchen   and  Education  Support  Facility                                                               
component to  the Department of Commerce,  Community and Economic                                                               
Development,  Grants to  Named Recipients  (AS 37.05.316)  BRU on                                                               
page 2,  lines 10 and  11, and appropriates $2.5  million general                                                               
funds to that component.  Accompanying explanatory language reads                                                               
as follows.                                                                                                                     
                                                                                                                                
     The  district's  current  central   kitchen  is  located  on                                                               
     Eielson Air  Force Base, 25  miles from  downtown Fairbanks.                                                               
     It was  built in the  mid-1970s and was designed  to produce                                                               
     on  quarter of  the  meals currently  necessary  on a  daily                                                               
     basis. Food must  be trucked to and from  the kitchen, which                                                               
     is  inefficient and  increasingly difficult  given increased                                                               
     military base  security measures. The district  has received                                                               
     $2.4 million  from the federal  government and  $7.5 million                                                               
     from the  state for  this project.  The borough  expects the                                                               
     requested $2.5 million will complete the project.                                                                          
                                                                                                                                
This amendment also adds  an Illinois/Barnette Street North-South                                                               
Connector  component  to  the Department  of  Transportation  and                                                               
Public  Facilities on  page  57, line  27,  and appropriates  $23                                                               
million  to  that  component. Accompanying  explanatory  language                                                               
reads as follows.                                                                                                               
                                                                                                                                
     The  Illinois Street  realignment and  bridge will  increase                                                               
     connectivity  and safety,  and  decrease  congestion in  the                                                               
     core downtown  area. This project  has been in  the planning                                                               
     process for  over thirty years.  Delays will  increase costs                                                               
     and  impede the  impressive  recent growth  in the  downtown                                                               
     area.                                                                                                                      
                                                                                                                                
This amendment  also adds $2  million general funds to  the Ester                                                               
Volunteer  Fire  Department -  Fire  Station  Addition (HD  7-11)                                                               
component in  the Department of Commerce,  Community and Economic                                                               
Development, Grants  to Named Recipients  (AS 37.05.316)  BRU, on                                                               
page 13,  lines 14 through 16.  Accompanying explanatory language                                                               
reads as follows.                                                                                                               
                                                                                                                                
     The Ester Volunteer Fire  Department responds to emergencies                                                               
     along the  Parks Highway, at  homes within the  fire service                                                               
     area,  and in  cooperation  with  other Fairbanks-area  fire                                                               
     departments.  This  project  will   provide  space  for  two                                                               
     existing  fire  trucks and  future  apparatus  to be  parked                                                               
     inside -  essential for  use in  cold weather  - as  well as                                                               
     build living quarters for  volunteer firefighters and medics                                                               
     allowing for immediate response to  calls. The total cost of                                                               
     the  project is  $2.775  million. The  Fairbanks North  Star                                                               
     Borough has  funded $250,000 and $525,000  has been provided                                                               
     in previous  state grants which will  substantially increase                                                               
     the mil rate in this small community.                                                                                      
                                                                                                                                
Co-Chair Stedman  moved for adoption  and objected to  the motion                                                               
for purposes of explanation.                                                                                                    
                                                                                                                                
3:46:26 PM                                                                                                                    
                                                                                                                                
Senator  Thomas informed  that these  five projects  proposed for                                                               
the  Interior region  of  Alaska were  included  in his  original                                                               
capital  budget funding  request. These  important infrastructure                                                               
projects continue to have merit.                                                                                                
                                                                                                                                
Senator  Thomas  communicated  that   the  Fairbanks  North  Star                                                               
Borough,   which  accounts   for  15   percent  of   the  state's                                                               
population,  was  experiencing   the  second  highest  population                                                               
growth rate in the State. Funding  these projects would be a fair                                                               
and equitable  distribution of capital budget  funds in statewide                                                               
terms. Even  though he  recognized the  challenge of  funding the                                                               
multitude of  projects from  across the  State, he  was concerned                                                               
that certain projects did not receive adequate consideration.                                                                   
                                                                                                                                
Senator Thomas also pointed out  that the distribution of capital                                                               
funds  to  the Fairbanks  area  was  dramatically less  than  its                                                               
population  warranted. Delaying  these  necessary projects  would                                                               
increase costs.                                                                                                                 
                                                                                                                                
Senator Thomas,  noting that he  would endeavor to meet  with the                                                               
Department  of  Transportation  and  Public  Facilities  and  the                                                               
Governor to  press the importance  of the projects,  WITHDREW the                                                               
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Stedman asked  that a brief explanation  of the projects                                                               
proposed in the amendment be provided.                                                                                          
                                                                                                                                
Senator Thomas advised  that the request included  repairs to 469                                                               
miles of Fairbanks North Star Borough  service roads at a cost of                                                               
four million dollars. $12.5 million  was being requested to begin                                                               
the  initial construction  phase of  the BioSciences  Facility on                                                               
the University of Alaska Fairbanks campus.                                                                                      
                                                                                                                                
3:49:06 PM                                                                                                                    
                                                                                                                                
Senator Thomas  reminded the Committee that  because construction                                                               
costs  are steadily  increasing, a  year's delay  in the  project                                                               
would "add  considerably" to the  expense and would have  "a huge                                                               
impact" on the project's overall budget.                                                                                        
                                                                                                                                
3:49:23 PM                                                                                                                    
                                                                                                                                
Senator  Thomas stated  that the  third item  was a  $2.5 million                                                               
request  pertaining  to  the Borough's  central  school  district                                                               
kitchen and  education support  facility. The  district's current                                                               
central  kitchen  is  currently   located  25  miles  outside  of                                                               
Fairbanks on  the Eielson  Air Force Base.  That location  is not                                                               
beneficial to the schools serviced by the kitchen.                                                                              
                                                                                                                                
3:49:42 PM                                                                                                                    
                                                                                                                                
Senator  Thomas noted  that the  Illinois/Barnette Street  North-                                                               
South  Connector  request has  been  identified  as an  important                                                               
project for  many years. At  $22 million dollars, the  project is                                                               
expensive; however,  it is a  very necessary connecter  road that                                                               
feeds into the city.                                                                                                            
                                                                                                                                
3:50:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked for confirmation that  Senator Thomas was                                                               
removing the amendment from consideration.                                                                                      
                                                                                                                                
Senator Thomas affirmed.                                                                                                        
                                                                                                                                
Without further discussion, Amendment #11 was WITHDRAWN.                                                                        
                                                                                                                                
Co-Chair Stedman  thought that  the Department  of Transportation                                                               
and  Public  Facilities and  the  Governor  would be  willing  to                                                               
discuss the projects with Senator Thomas.                                                                                       
                                                                                                                                
3:50:27 PM                                                                                                                    
                                                                                                                                
Amendment  #12:  This  amendment,  sponsored  by  Senator  Olson,                                                               
inserts  a new  subparagraph  to subsection  (a)  of Section  29.                                                               
NATIONAL  PETROLEUM RESERVE  - ALASKA  IMPACT GRANT  PROGRAM., on                                                               
page 128 following line 13, to read as follows.                                                                                 
                                                                                                                                
          (18) North Slope Borough   Data management, $800,000                                                                  
                                     Dissemination, and                                                                         
                                     NPRA wildlife studies                                                                      
                                                                                                                                
This   amendment   also    deletes   "$9,763,218"   and   inserts                                                               
"$10,563,218" from  the language  of subsection  (b) on  line 15.                                                               
The amended language of the subsection reads as follows.                                                                        
                                                                                                                                
     If the amount available  for appropriation from the National                                                               
     Petroleum  Reserve   -  Alaska  special  reserve   fund  (AS                                                               
     37.05.530)  under   (a)  of  this   section  is   less  than                                                               
     $10,563,218, then each of the  appropriations made in (a) of                                                               
     this section is  reduced in proportion to the  amount of the                                                               
     shortfall.                                                                                                                 
                                                                                                                                
Co-Chair Stedman moved for adoption and objected to the motion.                                                                 
                                                                                                                                
3:50:37 PM                                                                                                                    
                                                                                                                                
Senator Olson  stated that  his staff  person, David  Gray, would                                                               
further explain the request to  increase the impact grant program                                                               
funding  pertaining to  the National  Petroleum Reserve  - Alaska                                                               
(NPR-A) by $800,000.                                                                                                            
                                                                                                                                
3:51:02 PM                                                                                                                    
                                                                                                                                
DAVID  GRAY, Staff  to Senator  Donny Olson,  explained that  the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
reviews  the  applications  submitted for  these  federal  impact                                                               
funds received by the State  and forwards their project "grading"                                                               
determinations  to  the  Legislature  for  consideration  in  the                                                               
capital budget.                                                                                                                 
                                                                                                                                
Mr. Gray  advised that any  North Slope community can  appeal the                                                               
Department's  grading determination.  The  project identified  in                                                               
this amendment was  appealed, found "to be  deserving," and thus,                                                               
was advanced to this Committee for consideration.                                                                               
                                                                                                                                
3:52:30 PM                                                                                                                    
                                                                                                                                
Senator Olson directed  attention to a letter  from Department of                                                               
Commerce,  Community and  Economic Development  Commissioner Emil                                                               
Notti, dated  May 7,  2007 in  support of  this project  [copy on                                                               
file].                                                                                                                          
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Without further objection, Amendment #12 was ADOPTED.                                                                           
                                                                                                                                
3:53:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  acknowledged  the   immensity  of  the  effort                                                               
undertaken by  Committee Members  and Finance Committee  staff to                                                               
develop the capital budget bill.                                                                                                
                                                                                                                                
3:53:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman offered  a motion  to  report CS  SB 53,  25-GS                                                               
1014\O,    as   amended,    from   Committee    with   individual                                                               
recommendations.                                                                                                                
                                                                                                                                
AT EASE: 3:54:04 PM / 3:54:17 PM                                                                                            
                                                                                                                                
Co-Chair  Hoffman   amended  the  motion  to   provide  direction                                                               
allowing the Division of Legislative  Finance and the Legislative                                                               
Legal  and  Research  Services division  to  make  any  necessary                                                               
conforming and technical changes to the bill.                                                                                   
                                                                                                                                
3:54:39 PM                                                                                                                    
                                                                                                                                
Senator Dyson objected to the motion.                                                                                           
                                                                                                                                
Senator Dyson asked for confirmation  that the motion would allow                                                               
any  inadvertent  omission  between  the  Version  "O"  committee                                                               
substitute,  as  compared to  the  previous  one, caught  by  the                                                               
bill's drafters, to be corrected.                                                                                               
                                                                                                                                
Co-Chair  Stedman communicated  that Version  "O" did  not delete                                                               
any language. Instead, only a  few additions and corrections were                                                               
made, as discussed by Mr. Fisher.                                                                                               
                                                                                                                                
Senator  Dyson acknowledged  but  clarified his  concern that  an                                                               
inadvertent omission might have occurred.                                                                                       
                                                                                                                                
Co-Chair Stedman clarified that "we would fix it."                                                                              
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
There being no further objection,  CSSB 53(FIN) was REPORTED from                                                               
Committee.                                                                                                                      
                                                                                                                                

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