Legislature(2011 - 2012)
04/22/2011 04:33 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 46
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
4:33:58 PM
Co-Chair Stedman pointed out that the hearing was the sixth
for the capital budget. He stated that the bill was heard
February 21, 2011, March 15, 2011, March 16, 2011, March
17, 2011, and April 11, 2011. He noted the intent to adopt
a committee substitute and set the bill aside for further
review.
Co-Chair Hoffman MOVED to ADOPT Work Draft CSSB 46(FIN)
(27-GS1740\T). Co-Chair Stedman OBJECTED for purpose of
discussion.
4:35:34 PM
MILES BAKER, STAFF, SENATOR BERT STEDMAN, discussed the
changes in the Committee Substitute (CS). He explained that
the CS included seven separate reports. He referred to
"2011 Legislature-Capital Budget House District Summary-
Senate Structure." (copy on file), which detailed the
difference by house district between the first CS and the
current CS. The second report provided the project detail
and comparisons by house district between the two committee
substitutes. The third report included an agency summary
report comparing the CSs by agency. The fourth report was a
fund totals report illustrating the difference between the
two CSs by fund source. The fifth report included a house
district summary separating the bill into its sections. The
sixth report included the agency summary by section with a
comparison to the governor's amended capital budget. The
seventh report included statewide fund totals compared to
the governor's amended capital budget.
Mr. Baker stated that the last two reports illustrated that
the CS amounted to $2.688 billion including $1.468 billion
in unrestricted general funds, $44 million of designated
general funds, $96 million of other state funds, and $1.8
billion in federal funds. He noted the representation of
$734 million increase over the governor's amended capital
budget.
Mr. Baker stated that the CS added an additional $715
million of unrestricted general fund spending, $11 million
of designated general funds, $6 million of state funds, and
approximately $900 thousand of federal funds.
4:38:49 PM
Mr. Baker pointed out some changes. He stated that Section
1 referred to several adjusted project titles and grant
recipient names. He detailed Page 4, Lines 31-33, which
altered the $50 thousand threshold language. He stated that
the language directed the Department of Commerce, Community
and Economic Development (DEC) for grants less than $50
thousand. The change on Page 5, Line 5 stated that "the
grant recipient also must agree to return all unexpended
funds to the state for deposit into the general fund for
deposit into the general fund on project completion." Left
over funds would be returned to the state.
Mr. Baker stated that former Section 4 including $100
million of FY 12 governor capital request was removed. The
projects were relocated to Section 1 of the bill. He noted
the deletion of $15.5 million for Kodiak School replaced by
7 projects from Kodiak for a similar amount of money. He
pointed out Page 44 and the increase for the Life Alaska
Donor Services Grant from $20 thousand to $55 thousand. He
addressed Page 37, Line 21 and the addition of $8.2 million
for the blood bank of Alaska facilities expansion project.
He pointed out Page 47, Line 31 and the addition of $2
million for the Special Olympics training center and campus
improvements. He pointed out Page 55, and a mistake in the
DEC matching grant program. Two Ketchikan projects existed
on the list from Ketchikan's municipal matching grant
program and the dollar amounts had been entered
incorrectly.
4:43:23 PM
Mr. Baker spoke about Page 72, Line 27 and Page 88, which
included changes to the intent language. The language in
the CS before the committee read "it is the intent of the
legislature that when any named project that either
increases vehicular capacity or has a construction cost
exceeding $20 million is added to the statewide
transportation improvement plan, the department shall
provide written notification to the legislature containing
a brief project summary to include title, short description
of work, geographical location, cost, and estimated
construction completion date."
Mr. Baker referred to Page 90, Line 4 and the change in the
fund source for the University of Alaska Southeast's
Banfield Hall.
Mr. Baker mentioned Section 4, Page 98. He noted the
addition of the governor's request of $10 million into the
South East Energy Fund. He stated that the municipal grants
and the named recipient grants were moved for review by the
Alaska Energy Authority (AEA). He referred to Page 99 Line
17 and the addition of intent language stating "it is the
intent of the legislature that the state's capital
investment into any of these energy projects not exceed 50
percent of the total investment required to fully complete
each project." "The Alaska Energy Authority should evaluate
each of the energy projects in this section using criteria
similar to that established for the Renewable Energy Grant
Fund by the Renewable Energy Advisory Committee." "If
during their evaluation, AEA determines that an
appropriation exceeds the $50 percent state funding
threshold, the authority shall submit to the legislature,
recommendations for reductions or reappropriations by
February 1, 2012. The intent for the energy projects was
for review by AEA in concert with the utilities and
communities to determine the full project cost. If these
appropriations exceeded a life cycle project cost of 50
percent state investment, then AEA would return next
session with recommendations for the reallocation of funds.
4:46:50 PM
Mr. Baker reviewed Page 100, and stated that the project
had been reduced from $7.5 million to $3.75 million. The
project would receive money from the round four renewable
energy grant.
Mr. Baker pointed out Section 10 as the most substantial
change in terms of dollar value. He stated that Section 10
was the school infrastructure investment section. He noted
that the previous CS funded the major maintenance list at
$275 million. The CS removed 84 of the schools and $201
million of funding. The CS before the committee funded the
first 33 schools for a total of $73 million.
Mr. Baker pointed out Page 121, Line 26 and the
modification to the Kasayulie case intent language, which
read "the legislature intends that the following three
appropriations for these three rural schools address the
recommendations made by the court." He noted the addition
of conditional language on Page 22 overlooked in the
previous CS.
4:49:17 PM
Mr. Baker reviewed the language section. He pointed out
Page 127, Section 18 and the lapse of the appropriation on
June 30, 2015. He noted the addition of two
reappropriations from house district 5 and 12 that were not
included in the previous CS. He discussed Page 38, Line 19
and the expansion of the scope of the reappropriation to
the LB&A committee to broaden the authority of the $8
million appropriation. He noted Page 138, Section 36 and
the contingency language that was limited to the energy
section of the bill. He mentioned the addition of Section
37, which was a nonseverability clause for the contingency
language in Section 36 stating "if the contingency found in
36 of this act is held to be invalid then the contingency
is not severable from the appropriations made in Section 4
of this act."
Co-Chair Stedman removed his objection.
4:51:43 PM
AT EASE
4:52:24 PM
RECONVED
Co-Chair Stedman stated that CSSB 46(FIN) 27-GS1740\T was
ADOPTED.
4:52:47 PM
AT EASE
4:53:50 PM
RECONVENED
SB 46 was HEARD and HELD in committee for further
consideration.
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