Legislature(2015 - 2016)SENATE FINANCE 532

02/11/2016 09:00 AM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Pat Pitney, Director, Office of Management TELECONFERENCED
and Budget
+= SB 138 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
*+ SB 167 APPROP: SUPP/CAP/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
SENATE BILL NO. 138                                                                                                           
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,     reappropriations,     and     other                                                                    
     appropriations;  making  appropriations  to  capitalize                                                                    
     funds; and providing for an effective date."                                                                               
                                                                                                                                
9:07:21 AM                                                                                                                    
                                                                                                                                
PAT  PITNEY,  DIRECTOR,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE OF  THE GOVERNOR,  discussed the  PowerPoint, "FY2017                                                                    
Budget Overview  Senate Finance  Committee FY17  Capital and                                                                    
FY16 Supplemental" (copy on file).                                                                                              
                                                                                                                                
Co-Chair MacKinnon shared the details of the presentation.                                                                      
                                                                                                                                
Ms. Pitney looked at slide 2, "FY2017 Capital Budget":                                                                          
                                                                                                                                
     Federal Match/Leverage                                                                                                     
                                                                                                                                
          All funds: $1,079.9                                                                                                   
          UGF: $82.9                                                                                                            
                                                                                                                                
     Energy and Housing                                                                                                         
                                                                                                                                
          All funds: $52.9                                                                                                      
          UGF: $21.3                                                                                                            
                                                                                                                                
     Maintenance                                                                                                                
                                                                                                                                
          All funds: $92.1                                                                                                      
          UGF: $53.0                                                                                                            
                                                                                                                                
     Legal Obligations                                                                                                          
                                                                                                                                
          All funds: $11.0                                                                                                      
          UGF: $10.5                                                                                                            
                                                                                                                                
     Initiatives and School Replacement                                                                                         
                                                                                                                                
          All funds: $27.8                                                                                                      
          UGF $27.7                                                                                                             
                                                                                                                                
     TOTAL                                                                                                                      
                                                                                                                                
          All funds: $1,263.0                                                                                                   
          UGF: $195.3                                                                                                           
                                                                                                                                
Senator Dunleavy wondered how questions would be handled.                                                                       
Ms. Pitney shared that the presentation would address each                                                                      
line item.                                                                                                                      
                                                                                                                                
Ms.   Pitney    addressed   slide   3,    "FY2017   Capital:                                                                    
Administration":                                                                                                                
                                                                                                                                
    Public Building Fund Buildings Deferred Maintenance                                                                         
                                                                                                                                
          $4,000,000                                                                                                            
                                                                                                                                
          Fund Source: Public Building Fund                                                                                     
                                                                                                                                
          Prior funding:                                                                                                        
                                                                                                                                
          FY2016 -$3,000.0                                                                                                      
          FY2015 -$4,000.0                                                                                                      
                                                                                                                                
          This  project  will continue  addressing  deferred                                                                    
          maintenance  needs in  the State  Office Building,                                                                    
          the  Alaska  Office  Building, the  Public  Safety                                                                    
          Building, the Douglas  Island Building, the Dimond                                                                    
          Courthouse,  the  Atwood Building,  the  Fairbanks                                                                    
          Regional  Office   Building,  the   Linny  Pacillo                                                                    
          Parking  Garage  and   Office,  the  Palmer  State                                                                    
          Office Building,  the Nome State  Office Building,                                                                    
          the  Alaska Geologic  Materials Building,  and the                                                                    
          Community Building.                                                                                                   
                                                                                                                                
     State Capitol Third Floor Improvements                                                                                     
                                                                                                                                
          $475,000                                                                                                              
                                                                                                                                
          Fund   Source:    Statutory   Designated   Program                                                                    
          Receipts                                                                                                              
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               None                                                                                                             
                                                                                                                                
          Remodel  and upgrades  to the  third floor  of the                                                                    
          capitol   building   to  include   upgrading   the                                                                    
          ventilation  and  other   building  systems.  This                                                                    
          project utilizes  funds from the  Juneau Community                                                                    
          Foundation  for  the  sole purpose  of  performing                                                                    
          improvements and  upgrades to the  Executive floor                                                                    
          (third floor) of the Capitol Building.                                                                                
                                                                                                                                
     Department Total: $4,475,000                                                                                               
                                                                                                                                
Ms. Pitney looked at slide 4, "FY2017 Capital: Commerce,                                                                        
Community and Economic Development":                                                                                            
                                                                                                                                
     Project Title: Community Block Grants, 90/10Match                                                                          
                                                                                                                                
          Amount: $6,060,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $6,000,000 Fed1002                                                                                               
               $60,000GF/M 1003                                                                                                 
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          Community   Block    Grants   encompass   multiple                                                                    
          federally    funded    programs,   enabling    the                                                                    
          Department  of  Commerce, Community  and  Economic                                                                    
          Development   (DCCED)   to   provide   grants   to                                                                    
          communities and non-profits  that provide services                                                                    
          and/or  benefits   for  low  to   moderate  income                                                                    
          individuals.                                                                                                          
                                                                                                                                
     Project Title: National Petroleum Reserve -Alaska                                                                          
     Impact Grant Program                                                                                                       
                                                                                                                                
     Project Title: National Petroleum Reserve -Alaska                                                                          
     Impact Grant Pro                                                                                                           
                                                                                                                                
          Amount: $3,502,626                                                                                                    
                                                                                                                                
          Fund Source: National  Petroleum Reserve Fund 1063                                                                    
          (Fed) AS 37.05.530                                                                                                    
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -$3,502.6                                                                                                 
               FY2015 -$4,005.6                                                                                                 
                                                                                                                                
          The  National  Petroleum Reserve  -Alaska  (NPR-A)                                                                    
          program provides grants  to communities for public                                                                    
          facilities  and  services.  Priority is  given  to                                                                    
          those  communities directly  or severely  impacted                                                                    
          by  the  leases and  development  of  oil and  gas                                                                    
          within the  NPR-A. Funding comes from  the federal                                                                    
          government  as a  share of  the funds  received on                                                                    
          leases issued within NPR-A.                                                                                           
                                                                                                                                
     Project Title: AEA-Electrical Emergencies Program                                                                          
                                                                                                                                
          Amount: $330,000                                                                                                      
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          The   Electrical   Emergencies  Program   provides                                                                    
          technical  support when  an  electric utility  has                                                                    
          lost  or  will lose  the  ability  to generate  or                                                                    
          transmit power to its  customers and the condition                                                                    
          is a threat to life,  health, and/or property. The                                                                    
          ability   to  respond   to   loss   of  power   in                                                                    
          communities  is  essential  to  their  health  and                                                                    
          safety.                                                                                                               
                                                                                                                                
9:11:46 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon looked  at slide  3, and  wondered if  a                                                                    
private   party   was   donating  money   to   the   capitol                                                                    
improvements. Ms.  Pitney replied that the  Juneau Community                                                                    
Foundation  was  donating  money  for  the  improvements  to                                                                    
provide for upgrades to the third floor.                                                                                        
                                                                                                                                
Co-Chair MacKinnon asked if a  private donation was allowed.                                                                    
She wondered if the donation  was tax deductible. Ms. Pitney                                                                    
replied that  the donation was through  the Juneau Community                                                                    
Foundation,  so she  felt  that the  money  was already  tax                                                                    
deductible when  it entered the foundation.  She assumed the                                                                    
foundation  felt  it  was   consistent  with  enhancing  the                                                                    
community.                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  expressed  concern as  to  whether  the                                                                    
donation was an appropriate place to receive the funds.                                                                         
                                                                                                                                
Vice-Chair  Micciche wondered  if the  first $4  million was                                                                    
GF.  Ms.  Pitney  replied  that  the  funding  was  provided                                                                    
through  the Public  Building Fund.  There were  interagency                                                                    
receipts  for  departments, based  on  the  used space.  She                                                                    
furthered that sometimes the Public Building Fund was                                                                           
capitalized. The funds were existing funds that could be                                                                        
used for deferred maintenance.                                                                                                  
                                                                                                                                
9:14:35 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:53 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:14:59 AM                                                                                                                    
                                                                                                                                
Ms. Pitney discussed slide 5, "FY2017 Capital: Commerce,                                                                        
Community and Economic Development":                                                                                            
                                                                                                                                
     Project Title: AEA-Renewable Energy Projects Round IX                                                                      
                                                                                                                                
          Amount: $5,000,000                                                                                                    
                                                                                                                                
          Fund  Source:  Renewable  Energy Grant  Fund  1210                                                                    
          (DGF/UGF) AS 42.45.045                                                                                                
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -$11,512.7                                                                                                
               FY2015 -$22,843.9                                                                                                
                                                                                                                                
          This  project helps  Alaska achieve  a 50  percent                                                                    
          renewable energy goal by  2025; and reduces and/or                                                                    
          stabilizes  the  cost  of energy  for  communities                                                                    
          statewide.  The  Alaska Energy  Authority's  (AEA)                                                                    
          current request  for applications for  projects to                                                                    
          be  funded in  FY2017 resulted  in $50  million in                                                                    
         applications being received for Round IX.                                                                              
                                                                                                                                
     Project Title: AEA-Rural Power Systems Upgrades                                                                            
                                                                                                                                
          Amount: $5,650,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $3,150,000 Fed 1002                                                                                              
               $2,500,000 GF 1004                                                                                               
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016-N/A                                                                                                       
               FY2015 -$5,120.0                                                                                                 
                                                                                                                                
          Electric  utility systems  are part  of the  basic                                                                    
          infrastructure  of  rural communities.  The  power                                                                    
          plant   and   distribution    systems   in   rural                                                                    
          communities   may   not  meet   accepted   utility                                                                    
          standards    for    safety,    reliability,    and                                                                    
          environmental protections.  Due to high  costs and                                                                    
          limited   economies    of   scale,    most   local                                                                    
          communities  cannot make  the capital  investments                                                                    
         needed to meet accepted utility standards                                                                              
                                                                                                                                
     Project Title: AEA-Bulk Fuel Upgrades                                                                                      
                                                                                                                                
          Amount: $6,650,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $5,350,000 Fed 1002                                                                                              
               $1,300,000 GF 1004                                                                                               
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016-N/A                                                                                                       
               FY2015 -$7,300.0                                                                                                 
                                                                                                                                
          The Bulk Fuel  program upgrades non-compliant bulk                                                                    
          fuel  facilities in  rural communities.  Upgrading                                                                    
          bulk fuel  facilities reduces  the cost  of energy                                                                    
          by reducing  or eliminating  fuel loss  from leaks                                                                    
          and  spills.  By  providing  enough  capacity  for                                                                    
          current   and  planned   needs,  communities   may                                                                    
          purchase  fuel in  larger  quantities  at a  lower                                                                    
          cost per gallon.                                                                                                      
                                                                                                                                
Ms. Pitney highlighted slide 6, "FY2017 Capital: Commerce,                                                                      
Community and Economic Development":                                                                                            
                                                                                                                                
     Project Title: AEA-Alternative Energy and Energy                                                                           
     Efficiency Programs                                                                                                        
                                                                                                                                
          Amount: $1,200,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $1,000,000 Fed 1002                                                                                              
               $200,000 GF 1004                                                                                                 
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2014 -$2,000.0                                                                                                 
               FY2013 -$4,800.0                                                                                                 
                                                                                                                                
          This   project   is   for   the   development   of                                                                    
          alternative   energy  research   and  development,                                                                    
          resource  assessments,  regulatory and  permitting                                                                    
          issues, outreach  and stakeholder  involvement for                                                                    
          alternative energy programs.  Funding will be used                                                                    
          to  meet  a  minimum  20  percent  match  that  is                                                                    
          required  for  federal  funding.  The  Alternative                                                                    
          Energy   and   Energy  Efficiency   Programs   are                                                                    
          critical to the development  of cost effective and                                                                    
          technically     effective    Renewable     Energy,                                                                    
          Alternative    Energy   and    energy   efficiency                                                                    
          projects.  These funds  are also  used as  a match                                                                    
          for federal awards in  conjunction with AEA's role                                                                    
          as the Statewide Energy Office.                                                                                       
                                                                                                                                
Co-Chair Kelly queried how much of the fund was                                                                                 
unencumbered.   Ms.   Pitney    agreed   to   provide   that                                                                    
information.                                                                                                                    
                                                                                                                                
Ms. Pitney continued to address slide 6:                                                                                        
                                                                                                                                
     Project Title: Inter-Island Ferry Authority                                                                                
                                                                                                                                
          Amount: $250,000                                                                                                      
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016-$250.0                                                                                                    
               FY2015 -$500.0                                                                                                   
                                                                                                                                
          Inter-Island Ferry Authority  (IFA) provides daily                                                                    
          service  between  Ketchikan  and Prince  of  Wales                                                                    
          Island  (POW). Passenger  revenue and  other funds                                                                    
          are insufficient  to cover their  projected costs.                                                                    
          This  transport   link  is  a  vital   service  to                                                                    
          Southeast  Alaska.  IFA  is continuing  to  refine                                                                    
          their operations plan  to maximize profits, reduce                                                                    
          expenses  and minimize  reliance  on state  funds.                                                                    
          This  grant  will  allow  the  Inter-Island  Ferry                                                                    
          Authority to continue their operations in FY2017.                                                                     
                                                                                                                                
Co-Chair MacKinnon queried the reason  the item could not be                                                                    
privatized, so the real cost  of the transfer could be borne                                                                    
by those utilizing  the service. Ms. Pitney  replied that it                                                                    
was already  privatized, and a  significant majority  of the                                                                    
costs  were covered  by the  passenger.  She remarked  that,                                                                    
relative  to the  Marine  Highway  System, the  Inter-Island                                                                    
Ferry receipts cover most of  the cost. The funding would be                                                                    
a small subsidy to bridge the gap to provide the system.                                                                        
                                                                                                                                
Vice-Chair Micciche  felt that  the state should  be growing                                                                    
the  authority to  "pick up  a  bigger piece  of the  Marine                                                                    
Highway System."                                                                                                                
                                                                                                                                
9:18:10 AM                                                                                                                    
                                                                                                                                
Ms. Pitney stated  that the following item  would be changed                                                                    
in the amendments.                                                                                                              
                                                                                                                                
Ms.  Pitney addressed  slide 7,  "FY2017 Capital:  Commerce,                                                                    
Community and Economic Development":                                                                                            
                                                                                                                                
     Project Title: Lower Kuskokwim School District -Bethel                                                                     
     Regional HS Central Kitchen and Multipurpose Addition                                                                      
                                                                                                                                
          Amount: $7,129,765                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
          (Pending Amendment to DEED with REAA Fund)                                                                            
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          This  project  provides  for an  addition  to  the                                                                    
          Bethel  Regional High  School built  in 1971.  The                                                                    
          high  school complex  totals  78,316 gross  square                                                                    
          feet.  This  addition   will  provide  centralized                                                                    
          kitchen and  food services for the  Bethel schools                                                                    
          population  of  approximately 1,300  students,  as                                                                    
          well  as  a   multipurpose  room,  restrooms,  and                                                                    
          storage areas.                                                                                                        
                                                                                                                                
Co-Chair MacKinnon  wondered why the state  would contribute                                                                    
to  an  insured  building.  Ms.   Pitney  replied  that  the                                                                    
building was  insured. The building  would be replaced  as a                                                                    
school.  She stated  that the  school replacement  would not                                                                    
include the central kitchen. The kitchen would be used for                                                                      
all schools in Bethel.                                                                                                          
                                                                                                                                
Co-Chair MacKinnon wondered if the project was put ahead of                                                                     
other projects. Ms. Pitney replied that it was put ahead of                                                                     
other projects, because the kitchen no longer exists.                                                                           
                                                                                                                                
Ms. Pitney continued to discuss slide 7:                                                                                        
                                                                                                                                
     Project Title: Seward -Flood Protection Scoping and                                                                        
     Feasibility Study                                                                                                          
                                                                                                                                
          Amount: $300,000                                                                                                      
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          Over the past 110  years, there have been multiple                                                                    
          attempts  to   build  and  maintain   a  diversion                                                                    
          channel  and tunnel  in Seward,  Alaska. The  Army                                                                    
          Corps  of  Engineers  have  historically  had  the                                                                    
          biggest role in this effort.  At issue is that the                                                                    
          current tunnel  is in need of  significant repair,                                                                    
          but is  now considered inadequate to  handle flood                                                                    
          waters.  So,   during  heavy  rain,  there   is  a                                                                    
          significant  flooding threat  to the  town. Rather                                                                    
          than  continuing to  repair an  inadequate system,                                                                    
          the  city  and the  Army  Corps  of Engineers  are                                                                    
          partnering   to  evaluate   alternative  ways   to                                                                    
          address the flood threat.                                                                                             
                                                                                                                                
     Department Total: $36,072,391                                                                                              
                                                                                                                                
          $12,069,765 UGF                                                                                                       
          $5,000,000 DGF                                                                                                        
          $19,002,626 Fed                                                                                                       
                                                                                                                                
Ms. Pitney looked at slide 8, "FY2017 Capital: Fund                                                                             
Capitalization":                                                                                                                
                                                                                                                                
    Project Title: AEA-Emerging Energy Technology Fund                                                                          
                                                                                                                                
          Amount: $1,250,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $250,000 Fed 1002                                                                                                
               $1,000,000 GF 1004                                                                                               
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2014 -$2,000.0                                                                                                 
               FY2013 -$1,700.0                                                                                                 
                                                                                                                                
          The Emerging  Energy Technology Fund  (EETF) grant                                                                    
          program  was  created  in 2010  and  competitively                                                                    
          funds  emerging  energy  technologies  (renewable,                                                                    
          efficiency,   storage,  transmission,   etc.)  for                                                                    
          testing and implementation  in Alaska. The program                                                                    
          promotes  the  expansion  of  energy  sources  and                                                                    
          technologies  available   to  Alaskans   with  the                                                                    
          intent of lowering energy costs.                                                                                      
                                                                                                                                
Senator Dunleavy  looked at  slide 7,  and noted  that there                                                                    
were  numerous  flood  affected   areas  in  the  state.  He                                                                    
wondered why  the specific project was  selected. Ms. Pitney                                                                    
replied  that  the  project was  currently  under  way.  She                                                                    
furthered  that there  was a  consistent flood  damage every                                                                    
year.                                                                                                                           
                                                                                                                                
Senator Dunleavy wondered if it  was a feasibility study, or                                                                    
part  of the  repair process.  Ms. Pitney  replied that  the                                                                    
parties were engaged to move forward on the project.                                                                            
                                                                                                                                
Senator  Dunleavy   asked  why  this  was   the  only  flood                                                                    
prevention project. He queried the type of proposed study.                                                                      
                                                                                                                                
Co-Chair MacKinnon requested documentation on the project.                                                                      
                                                                                                                                
Senator Dunleavy remarked that  there were many constituents                                                                    
who were concerned about the chosen project.                                                                                    
                                                                                                                                
9:23:41 AM                                                                                                                    
                                                                                                                                
ADAM   BRYAN,   CAPITAL   BUDGET  COORDINATOR,   OFFICE   OF                                                                    
MANAGEMENT  AND  BUDGET,  replied  the he  had  the  project                                                                    
detail. He stated that the  federal process required scoping                                                                    
effort  followed  by a  feasibility  study  then design  and                                                                    
construction. He  stated that funding for  the project would                                                                    
be used  to conduct the  scoping and feasibility  study, and                                                                    
other  preconstruction requirements.  The  funds would  help                                                                    
the City of  Seward match the federal  requirements from the                                                                    
Army Corps of Engineers.                                                                                                        
                                                                                                                                
                                                                                                                                
Senator  Bishop  requested  information about  state  funded                                                                    
flood repair in the last ten years from GF.                                                                                     
                                                                                                                                
Senator Olson remarked that the studies were customary.                                                                         
                                                                                                                                
Senator Dunleavy  restated that he  would like to  know more                                                                    
information about choosing the  specific project. Ms. Pitney                                                                    
replied that  the project was  based on the  current federal                                                                    
involvement. The City of Seward  was ready to take advantage                                                                    
with the  federal partnership,  consistent with  the federal                                                                    
matching approach in capital budgeting.                                                                                         
                                                                                                                                
Vice-Chair Micciche noted  that the funding was  for a stage                                                                    
of  the  project.  He  hoped that  there  would  be  funding                                                                    
available  for  the  Mat-Su   flooding  issues.  Ms.  Pitney                                                                    
replied that the community must  have the Corps of Engineers                                                                    
ready and the timing of the money.                                                                                              
                                                                                                                                
Co-Chair MacKinnon  queried the reason that  the project was                                                                    
not  funded fully  by  federal funds.  Mr.  Bryan agreed  to                                                                    
provide the federal dollar match information.                                                                                   
                                                                                                                                
Co-Chair  MacKinnon requested  the  exact  state match.  Ms.                                                                    
Pitney responded  that the funds would  assist the community                                                                    
to  meet  their overall  match  requirement.  She agreed  to                                                                    
provide further information.                                                                                                    
                                                                                                                                
Co-Chair MacKinnon wondered whether  Seward had a sales tax.                                                                    
Ms. Pitney did not know.                                                                                                        
                                                                                                                                
Vice-Chair Micciche clarified that  the request was for some                                                                    
details related to the project.                                                                                                 
                                                                                                                                
9:28:47 AM                                                                                                                    
                                                                                                                                
Senator  Olson wondered  why the  Kuskokwim  School was  not                                                                    
initially included  with the other RAA  projects. Ms. Pitney                                                                    
replied  that   the  fire  occurred   late  in   the  budget                                                                    
development  stage. She  stressed that  the kitchen  was not                                                                    
high on the list before that time.                                                                                              
                                                                                                                                
Co-Chair MacKinnon  wondered if that  city had a  sales tax.                                                                    
Ms.  Pitney   replied  in  the  negative.   Senator  Hoffman                                                                    
clarified that Kuskokwim had a sales tax.                                                                                       
                                                                                                                                
                                                                                                                                
Ms.   Pitney    discussed   slide   9,    "FY2017   Capital:                                                                    
Corrections":                                                                                                                   
                                                                                                                                
     Project Title: OSHA Electric Arc Flash Assessment and                                                                      
     Remediation                                                                                                                
                                                                                                                                
          Amount: $1,800,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          Department  of   Corrections'  facilities  require                                                                    
          electrical  component  assessments  and  potential                                                                    
          upgrades  and  remediation  to  comply  with  code                                                                    
          requirements    and    improve   worker    safety.                                                                    
          Occupational  Safety   and  Health  Administration                                                                    
          (OSHA)  electrical changes  were issued  in regard                                                                    
          to  transmission   line  electrical  requirements.                                                                    
          There  is code  compliance issues  related to  the                                                                    
          work  covered   under  National   Fire  Protection                                                                    
          Association (NFPA) 70E Electrical Work Practices.                                                                     
                                                                                                                                
     Project Title: Annual Safety and Security Maintenance                                                                      
     and Repair                                                                                                                 
                                                                                                                                
          Amount: $1,000,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2014 -$1,000.0                                                                                                 
               FY2013 -$1,000.0                                                                                                 
                                                                                                                                
          This project will  replace obsolete, outdated, and                                                                    
          inefficient   equipment  that   is  essential   to                                                                    
          security,  life  safety,  food  service,  laundry,                                                                    
          medical, record storage  and maintenance equipment                                                                    
          at     all     correctional     facilities     and                                                                    
          probation/parole offices.  This project  will also                                                                    
          provide   for   essential  renewal,   replacement,                                                                    
          renovation, remodeling  and repair  of electrical,                                                                    
          mechanical, roofing, walls,  fire and life safety,                                                                    
          security, structural, food  services, pavement and                                                                    
          site   drainage   systems  at   all   correctional                                                                    
          facilities  as needed.  This work  is required  to                                                                    
          enable  continued   safe,  secure   and  efficient                                                                    
          operation    of    the    24-hour    incarceration                                                                    
          facilities.                                                                                                           
                                                                                                                                
     Department Total: $2,800,000                                                                                               
                                                                                                                                
Vice-Chair Micciche looked at  slide 8, and wondered whether                                                                    
the investments in emerging energy  should be suspended. Ms.                                                                    
Pitney  replied that  prior investments  in emerging  energy                                                                    
had  been significant.  She stated  that continuing  to fund                                                                    
the  effective  programs would  help  to  match the  federal                                                                    
funds.                                                                                                                          
                                                                                                                                
9:32:51 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wondered whether the  federal government                                                                    
required for  additional dollars,  or a one-to-one  match to                                                                    
leverage.  Ms. Pitney  replied that  the funding  was not  a                                                                    
direct match, but rather a leverage capacity.                                                                                   
                                                                                                                                
Co-Chair  MacKinnon surmised  that GF  was unnecessary.  Ms.                                                                    
Pitney replied that  without GF, it was  unlikely to attract                                                                    
the federal funds.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon  shared that she and  Senator Hoffman had                                                                    
some   conversations   about   AEA   and   emerging   energy                                                                    
technologies,  and may  have a  different  solution for  the                                                                    
committee to consider.                                                                                                          
                                                                                                                                
Ms. Pitney  displayed slide  10, "FY2017  Capital: Education                                                                    
and Early Development":                                                                                                         
                                                                                                                                
     Project Title: FY2017 Capital: Education and Early                                                                         
     Development                                                                                                                
                                                                                                                                
          Amount: $11,283,533                                                                                                   
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -$2,623.7                                                                                                 
               FY2015 -$10,867.5                                                                                                
                                                                                                                                
          The FY2017 Major Maintenance Capital Improvement                                                                      
          Projects funding will support projects 1 through                                                                      
          3  on the  November  5th,  2015 Major  Maintenance                                                                    
          Capital Improvement priority list.                                                                                    
          1 -$185,944 Kake Schools Boiler Replacement                                                                           
          2 -$49,135  Petersburg Middle/High  School Primary                                                                    
          Boiler Replacement                                                                                                    
          3 -$11,048,454 Bristol  Bay School Energy Upgrades                                                                    
          and Renovations                                                                                                       
                                                                                                                                
     Project   Title:   School   Construction   Grants   (AS                                                                    
     14.11.005                                                                                                                  
                                                                                                                                
          Amount: $18,105,925                                                                                                   
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: FY2016 -$43,237.4 (Kivalina)                                                                           
                                                                                                                                
          Two School  Construction appropriations  will fund                                                                    
          project #1 on  the November5th School Construction                                                                    
          Capital  Improvement  Project priority  list,  and                                                                    
          complete the funding  for the Kivalina replacement                                                                    
          school  according  to  the  FY2016  Department  of                                                                    
          Education  and  Early   Development  Final  School                                                                    
          Construction List Eligible Amount.                                                                                    
          -$10,867,503   Kachemak  Selo   New  K-12   School                                                                    
          Construction                                                                                                          
          -$7,238,422  Kivalina  K-12 Replacement  School  -                                                                    
          Kasayulie                                                                                                             
                                                                                                                                
Senator Dunleavy queried more  information about why Bristol                                                                    
Bay would receive  direct help from the state, as  it is not                                                                    
an attempt to skirt the bonding moratorium.                                                                                     
                                                                                                                                
Co-Chair  MacKinnon asked  for Senator  Dunleavy to  restate                                                                    
his question.                                                                                                                   
                                                                                                                                
Senator Dunleavy felt that the  project was an attempt for a                                                                    
municipality to skirt the bonding moratorium.                                                                                   
                                                                                                                                
Co-Chair  MacKinnon   shared  that  suspending   the  school                                                                    
capital debt  reimbursement was at  a time when  Bristol Bay                                                                    
was in  the process  of moving  forward a  bond proposition,                                                                    
which wanted to request the state to match.                                                                                     
                                                                                                                                
Ms. Pitney  agreed to provide  information. She  stated that                                                                    
the  projects were  rated on  the  school major  maintenance                                                                    
list, that  much meet  criteria. They  were rated  through a                                                                    
strict scoring  system, and  these were  the first  three on                                                                    
the criteria list.                                                                                                              
                                                                                                                                
Co-Chair  MacKinnon  hoped  that  the  administration  would                                                                    
provide further  funding of an  additional $7.2  million for                                                                    
Kivalina.                                                                                                                       
                                                                                                                                
9:38:26 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  shared that the  funds were not  for school                                                                    
construction. He  remarked that rural Alaska  had two lists:                                                                    
school  construction and  maintenance.  He  stated that  the                                                                    
project was  from the  major maintenance  list, but  did not                                                                    
apply to the school construction moratorium.                                                                                    
                                                                                                                                
Co-Chair  MacKinnon stressed  that  it  was the  committee's                                                                    
responsibility  to  not   engage  in  individual  geographic                                                                    
"fights"  to  advocate constituents  in  an  effort to  make                                                                    
decisions  to positively  impact  all of  Alaska. She  hoped                                                                    
that communities  that were able  to meet their  needs could                                                                    
provide for their own needs.                                                                                                    
                                                                                                                                
Senator Dunleavy  remarked that his questions  reflected the                                                                    
questions from his constituents.                                                                                                
                                                                                                                                
Vice-Chair Micciche  felt that  it was important  to examine                                                                    
whether  the  communities could  cover  the  costs of  those                                                                    
projects.                                                                                                                       
                                                                                                                                
Senator  Bishop  remarked  that  school  construction  major                                                                    
maintenance  required   boiler  and  heating   upgrades.  He                                                                    
encouraged  the   administration  to   utilize  standardized                                                                    
systems.  He  remarked  that  there  could  be  a  universal                                                                    
training to develop continuity within all of the schools.                                                                       
                                                                                                                                
Co-Chair MacKinnon shared that  Legislative Budget and Audit                                                                    
managed   a  contract   in  the   year   prior  to   examine                                                                    
standardization.  The contractor  recommended that  it would                                                                    
not work  for Alaska in  the building design. She  felt that                                                                    
standardization would  save money and would  allow people to                                                                    
maintain  the  units,  because   one  state  employee  could                                                                    
maintain units at a greater level of efficiency.                                                                                
                                                                                                                                
Ms. Pitney noted that there  was $221 million request on the                                                                    
school  major maintenance  list for  96 projects  across the                                                                    
state. She stressed that the  budget addressed the top three                                                                    
of 96 projects.                                                                                                                 
                                                                                                                                
9:45:46 AM                                                                                                                    
                                                                                                                                
Ms. Pitney  discussed slide  11, "FY2017  Capital: Education                                                                    
and Early Development":                                                                                                         
                                                                                                                                
     Project Title: Mt. Edgecumbe High School Deferred                                                                          
     Maintenance                                                                                                                
                                                                                                                                
          Amount: $1,000,000                                                                                                    
                                                                                                                                
          Fund Source: $1,000,000                                                                                               
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -N/A                                                                                                      
               FY2015 -$1,700.0                                                                                                 
                                                                                                                                
          This project  partially funds the next  project on                                                                    
          the   Mt.    Edgecumbe   High    School   deferred                                                                    
          maintenance list:  Emergency Generator  and Switch                                                                    
          Gear Installation.  The Mt. Edgecumbe  High School                                                                    
          deferred maintenance backlog  contains 11 projects                                                                    
          totaling $16,451,000.                                                                                                 
                                                                                                                                
     Department Total: $30,389,458                                                                                              
                                                                                                                                
Co-Chair  MacKinnon wondered  how the  request would  affect                                                                    
the new swimming pool. She  also queried the operating costs                                                                    
of  Mt.  Edgecumbe.  Ms.  Pitney  replied  that  the  annual                                                                    
operating  costs for  Mt. Edgecumbe  would be  approximately                                                                    
$750,000. She  explained that Sitka  was working to  draft a                                                                    
plan that would take some responsibility from the state.                                                                        
                                                                                                                                
Co-Chair  MacKinnon queried  the  possibility of  suspending                                                                    
the  project, to  eliminate the  ongoing operating  expense,                                                                    
because  of the  possibility of  emergencies in  the future.                                                                    
Ms.  Pitney  replied that  the  project  was funded  general                                                                    
obligation bonds, as was moving forward.                                                                                        
                                                                                                                                
Co-Chair  MacKinnon  wondered if  the  other  pool in  Sitka                                                                    
would  be  closing. Ms.  Pitney  replied  that she  did  not                                                                    
believe the  other pool  would be  closing. She  stated that                                                                    
the  pools were  in  different  locations serving  different                                                                    
customer bases.                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon queried  the size  of Sitka.  Ms. Pitney                                                                    
replied that  Sitka was a  small community, but she  did not                                                                    
know the exact size.                                                                                                            
                                                                                                                                
Co-Chair    MacKinnon    understood   that    the    current                                                                    
administration did not participate  in the appropriation for                                                                    
the second  swimming pool in  Sitka nor the bond  project to                                                                    
move that project  forward. She stressed that  the state was                                                                    
in  a difficult  time,  and she  was  attempting to  explore                                                                    
options  to save  money. She  remarked  that swimming  pools                                                                    
were valuable in communities for safety reasons.                                                                                
                                                                                                                                
Senator  Dunleavy  commented  that   the  residents  may  be                                                                    
concerned  about  paying  taxes,  because  of  a  brand  new                                                                    
swimming pool.                                                                                                                  
                                                                                                                                
Co-Chair  MacKinnon remarked  that  she  supported the  bond                                                                    
package,  because  there  was   a  highway  project  in  her                                                                    
community. She stressed that Alaska  was in a much different                                                                    
budget  situation  than it  was  at  the  time of  the  bond                                                                    
package adoption.                                                                                                               
                                                                                                                                
9:50:41 AM                                                                                                                    
                                                                                                                                
Ms.   Pitney   looked   at  slide   12,   "FY2017   Capital:                                                                    
Environmental Conservation":                                                                                                    
                                                                                                                                
     Project Title: Village Safe Water and Wastewater                                                                           
     Infrastructure Projects                                                                                                    
                                                                                                                                
          Amount: $51,500,000                                                                                                   
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $42,250,000 Fed 1002                                                                                             
               $8,750,000 GF/M 1003                                                                                             
               $500,000 SDPR1108                                                                                                
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This  project  provides  financial  and  technical                                                                    
          assistance to  rural communities to  plan, design,                                                                    
          and    construct    water   and    sewer    system                                                                    
          improvements.  60  percent  of  the  funding  will                                                                    
          provide  first-time service  to communities  while                                                                    
          40 percent  will be  used for  expansion, upgrade,                                                                    
          and replacement of existing service.                                                                                  
                                                                                                                                
     Project Title: Reapprop for Municipal Water, Sewage,                                                                       
     and Solid Waste Facilities Grants                                                                                          
     (AS 43.03.030)                                                                                                             
                                                                                                                                
          Amount: $4,187,601                                                                                                    
                                                                                                                                
          Fund Source: General Fund 100                                                                                         
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -$9,988.6                                                                                                 
               FY2015 -$14,558.2                                                                                                
                                                                                                                                
          This  project  provides   funding  for  grants  to                                                                    
          larger communities to  plan, design, and construct                                                                    
          drinking water  and sanitation facilities  and the                                                                    
          associated   operating  costs   of  the   Facility                                                                    
          Construction  component  within  the  Division  of                                                                    
          Water.  FY2017  grants   will  be  funded  through                                                                    
          reappropriations  of  the  remaining  balances  of                                                                    
          completed projects.                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  queried the required match,  versus what                                                                    
was represented on  slide 12. Ms. Pitney  clarified that the                                                                    
municipal  water  and  sewage was  community  based  grants,                                                                    
which  appropriated completed  projects back  into the  same                                                                    
program to pick up the  next highest priority. She explained                                                                    
that, unlike  the Village  Safe Water  Act, the  project did                                                                    
not have the match.                                                                                                             
                                                                                                                                
Co-Chair  MacKinnon  wondered  if  the  project  used  Spill                                                                    
Prevention and  Response (SPAR) funds. Ms.  Pitney responded                                                                    
that  that  the  funds  were  statutory  designated  program                                                                    
receipts.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  queried the source of  the receipts. Ms.                                                                    
Pitney deferred to Mr. Bryan                                                                                                    
                                                                                                                                
9:52:34 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:56:48 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:56:55 AM                                                                                                                    
                                                                                                                                
Ms.   Pitney  explained   that   the   Village  Safe   Water                                                                    
infrastructure projects  were prioritized and  rated similar                                                                    
to  the school  major  maintenance projects.  She agreed  to                                                                    
provide  that list  and to  identify the  projects that  had                                                                    
designated program receipts.                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  wondered  if a  community  "can"  match                                                                    
rather  than  "shall"  match,  so  the  state  provided  the                                                                    
statutory receipts  so the  community "can"  contribute. Ms.                                                                    
Pitney  replied that  it was  project-dependent. She  stated                                                                    
that  it was  more  likely project-specific,  rather than  a                                                                    
requirement for every project.                                                                                                  
                                                                                                                                
Vice-Chair Micciche wondered how  the village safe water and                                                                    
waste water  infrastructure project  fits with  the drinking                                                                    
water  capitalization  grant.  He asked  whether  both  were                                                                    
attempting to meet an  Environmental Protection Agency (EPA)                                                                    
directive,  or were  they not  related.  Ms. Pitney  replied                                                                    
that  there  were  two  different  programs  with  different                                                                    
requirements.                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon noted the great  need for the programs in                                                                    
rural Alaska.  She queried  an audit  to examine  whether or                                                                    
not  the  state was  repeating  itself  by going  back  into                                                                    
communities to reinvest in the  same types of projects.  Ms.                                                                    
Pitney   deferred  to   the   Department  of   Environmental                                                                    
Conservation (DEC).                                                                                                             
                                                                                                                                
Vice-Chair Micciche  noted that  there was  a 0.95  cent tax                                                                    
into  the SPAR  fund, per  gallon of  motor fuel.  He shared                                                                    
that  he would  be researching  the possibility  of covering                                                                    
the cost  with the  extra $75 million  that was  raised with                                                                    
that recent  tax on contaminated  sites. He shared  that the                                                                    
intention of growing the fund  was for the department and to                                                                    
cover some of the orphan sites.                                                                                                 
                                                                                                                                
Ms.   Pitney   highlighted   slide  13,   "FY2017   Capital:                                                                    
Environmental Conservation":                                                                                                    
                                                                                                                                
     Project Title: Drinking Water Capitalization Grant -                                                                       
     Subsidy Funding                                                                                                            
                                                                                                                                
          Amount: $2,526,300                                                                                                    
                                                                                                                                
          Fund Source: Alaska Drinking Water Fund 1100                                                                          
          (Other)                                                                                                               
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This  project  provides  federal funding  for  the                                                                    
          Alaska Drinking Water Fund  (ADWF) loan program to                                                                    
          meet    an    Environmental   Protection    Agency                                                                    
          requirement. The federal  capitalization grant for                                                                    
          the ADWF program requires  the department to issue                                                                    
          subsidies   (a   loan  forgiveness   process)   in                                                                    
          addition  to traditional  low-interest loans.  The                                                                    
          ADWF  program   functioned  strictly  as   a  loan                                                                    
          program  until FY2011  when the  subsidy provision                                                                    
          was  added  to the  federal  budget.  In order  to                                                                    
          implement  this  provision,  an  appropriation  is                                                                    
          necessary to properly  record the loan forgiveness                                                                    
          payment as an expense in ADWF.                                                                                        
                                                                                                                                
    Project Title: Statewide Contaminated Sites Cleanup                                                                         
                                                                                                                                
          Amount: $1,000,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2014-$3,000.0                                                                                                  
               FY2013 -$2,000.0                                                                                                 
                                                                                                                                
          Contaminated   sites  owned   by  the   State  and                                                                    
          contaminated  sites without  any known  or capable                                                                    
          responsible  party ("orphan"  sites)  can only  be                                                                    
          addressed  with  State   general  fund  resources.                                                                    
          These  contaminated  sites  pose a  public  health                                                                    
          risk,   and   cannot    be   redeveloped   without                                                                    
          appropriate  cleanup  of the  known  contaminants.                                                                    
          For  many   local  communities,   state-owned  and                                                                    
          "orphan" contaminated  sites may  present barriers                                                                    
          to business development and economic growth                                                                           
                                                                                                                                
     Department Total: $59,213,901                                                                                              
                                                                                                                                
          $13,937,60 1UGF                                                                                                       
          $3,026,300 Other                                                                                                      
          $42,250,000 Fed                                                                                                       
                                                                                                                                
Senator Bishop queried a list of the targeted orphan sites                                                                      
targeted for the $1 million. Ms. Pitney agreed to provide                                                                       
that information.                                                                                                               
                                                                                                                                
10:01:49 AM                                                                                                                   
                                                                                                                                
Ms. Pitney looked at slide 14, "FY2017 Capital: Fish and                                                                        
Game":                                                                                                                          
                                                                                                                                
     Project Title: Fairbanks Regional Office Electrical,                                                                       
     Telephone System, and Repairs                                                                                              
                                                                                                                                
          Amount: $350,000                                                                                                      
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          The  Fairbanks  Regional  Office compound  is  the                                                                    
          largest owned facility within  Fish and Game. This                                                                    
          project   includes    replacement,   repair,   and                                                                    
          upgrades   to  existing   electrical  system   and                                                                    
          critical upgrades to existing telephone system                                                                        
                                                                                                                                
     Project Title: Facilities, Vessels and Aircraft                                                                            
     Maintenance, Repair and Upgrades                                                                                           
                                                                                                                                
          Amount: $1,000,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016-N/A                                                                                                       
               FY2015 -$500.0                                                                                                   
                                                                                                                                
          This annual project  funds repair, maintenance and                                                                    
          renovation of  department facilities  statewide as                                                                    
          well   as   vessel   and   aircraft   repair   and                                                                    
          maintenance.                                                                                                          
                                                                                                                                
     Project Title: Sport Fish Recreational Boating and                                                                         
     Angler Access                                                                                                              
                                                                                                                                
          Amount: $3,000,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $2,250,000 Fed 1002                                                                                              
               $750,000 GF/M 1003                                                                                               
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This project allows the Division  of Sport Fish to                                                                    
          continue  to  construct and  upgrade  recreational                                                                    
          power  boating   and  sport  fish   angler  access                                                                    
          facilities statewide using  Sport Fish Restoration                                                                    
          apportionment  funds   comprised  of   75  percent                                                                    
          federal  assistance  and  25  percent  non-federal                                                                    
          match.  Projects  include boat  launches,  mooring                                                                    
          floats,  parking  lots, restrooms,  fish  cleaning                                                                    
          facilities, and other services                                                                                        
                                                                                                                                
     Department Total: $4,350,000                                                                                               
                                                                                                                                
          $2,100,000 UGF                                                                                                        
          $2,250,000 Fed                                                                                                        
                                                                                                                                
Co-Chair MacKinnon wondered  if DFG could provide  a list of                                                                    
the  date of  purchase for  the aircrafts  and vessels.  Ms.                                                                    
Pitney agreed to provide that information.                                                                                      
                                                                                                                                
Vice-Chair  Micciche queried  further  detail  about the  $3                                                                    
million with $750,000  in GF. He wondered if it  was for the                                                                    
Kasilof  parking lot.  He  felt that  parking  lot would  be                                                                    
nice, but did not know if  the state could afford the lot at                                                                    
the  current  time.  Ms.  Pitney   agreed  to  provide  that                                                                    
information.                                                                                                                    
                                                                                                                                
Ms. Pitney  looked at slide  15, "FY2017 Capital:  Office of                                                                    
the Governor":                                                                                                                  
                                                                                                                                
     Project Title: Primary and General Elections                                                                               
                                                                                                                                
          Amount: $3,814,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $3,694,000 GF 1004                                                                                               
               $120,000 Election Fund 1185 (Other)                                                                              
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2015 -$3,693.8                                                                                                 
               FY2013 -$3,693.8                                                                                                 
               (Prev. Operating)                                                                                                
                                                                                                                                
          This  project  will cover  the  cost  of the  2016                                                                    
          primary   and  general   elections.  General   and                                                                    
          primary  elections  occur  every two  years.  This                                                                    
          project  also includes  $120,000  in Help  America                                                                    
          Vote  Act funding  that is  held  in the  Election                                                                    
          Fund  to  cover the  election  year  costs of  the                                                                    
          Toyukak  settlement.  This  project will  pay  for                                                                    
          language  translation  services to  provide  voter                                                                    
          information  in  audio  and written  form  in  six                                                                    
          additional Native language dialects.                                                                                  
                                                                                                                                
     Project    Title:   Criminal    Justice   Reform    and                                                                    
     Reinvestment -Placeholder                                                                                                  
                                                                                                                                
          Amount: $5,000,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          Placeholder    for    reform   and    reinvestment                                                                    
          recommendations yet  to be  decided but  likely to                                                                    
          be proposed  via reports from the  Alaska Criminal                                                                    
          Justice Commission.                                                                                                   
                                                                                                                                
          Department Total: $8,814,000                                                                                          
                                                                                                                                
               $8,694,000 UGF                                                                                                   
               $120,000 Other                                                                                                   
                                                                                                                                
Co-Chair MacKinnon suggested that the project be included                                                                       
in the operating budget. She felt that there should be                                                                          
clarity about where the projects should be assigned.                                                                            
                                                                                                                                
10:07:37 AM                                                                                                                   
                                                                                                                                
Ms. Pitney discussed slide 16, "FY2017 Capital: Health and                                                                      
Social Services":                                                                                                               
                                                                                                                                
     Project Title: Deferred Maintenance -Pioneer Homes and                                                                     
     Non-Pioneer Homes                                                                                                          
                                                                                                                                
          Amount: $2,834,345                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -N/A                                                                                                      
               FY2015 -$6,857.6                                                                                                 
                                                                                                                                
          Deferred  maintenance projects  for Pioneer  Homes                                                                    
          statewide,  and the  non-Pioneer Homes  facilities                                                                    
          maintained  by the  department. The  department is                                                                    
          responsible for operating  and maintaining the six                                                                    
          Pioneer Homes  throughout the state, and  34 other                                                                    
          facilities   including   public  health   centers,                                                                    
          laboratories,  youth  facilities  and  the  Alaska                                                                    
          Psychiatric  Institute.   Pioneer  Homes  deferred                                                                    
          maintenance  backlog  contain  89 projects  for  a                                                                    
          total  of  $13,030.3.  Non-Pioneer  Homes  backlog                                                                    
          contain 171 projects for a total of $11,120.7.                                                                        
          -$1,417,500 Pioneer Homes                                                                                             
          -$1,416,845 Non-Pioneer Homes                                                                                         
                                                                                                                                
     Project Title: Emergency Medical Services Match for                                                                        
     Code Blue Project                                                                                                          
                                                                                                                                
          Amount: $500,000                                                                                                      
                                                                                                                                
          Fund Source: GF Match 1003                                                                                            
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This  project  supports communities'  purchase  of                                                                    
          essential  emergency  medical response  equipment.                                                                    
          The  Code Blue  Steering Committee  was formed  to                                                                    
          identify and  purchase critical  Emergency Medical                                                                    
          Services  (EMS)   equipment  and   ambulances  for                                                                    
          agencies around  the state, particularly  in rural                                                                    
          locations.  For FY2017,  $500,000  is required  to                                                                    
          match  federal,  local  and private  funds  to  be                                                                    
          allocated  for  all  seven  regional  offices  for                                                                    
          needs   such  as:   ambulances,  heart   monitors,                                                                    
          training equipment,  and communications equipment.                                                                    
          One  dollar  of   state  general  funds  leverages                                                                    
          greater than four dollars in other fund sources.                                                                      
                                                                                                                                
Ms. Pitney discussed slide 17, "FY2017 Capital: Health and                                                                      
Social Services":                                                                                                               
                                                                                                                                
     Project Title: Office of Civil Rights Remediation                                                                          
     Completion                                                                                                                 
                                                                                                                                
          Amount: $2,773,980                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $554,796 Fed 1002                                                                                                
               $2,219,184 GF/M1003                                                                                              
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2012 -$1,000.0                                                                                                 
               FY2010 -$1,337.4                                                                                                 
                                                                                                                                
          The Office of Civil Rights  was directed to have a                                                                    
          comprehensive  Risk Assessment  of the  Department                                                                    
          completed by  an independent third party.  As part                                                                    
          of the  settlement, the Department is  required to                                                                    
          address the  findings that were identified  in the                                                                    
          Risk  Assessment.  This   project  will  fund  the                                                                    
          addressing of the findings.                                                                                           
                                                                                                                                
     Project Title: MH Essential Program Equipment                                                                              
                                                                                                                                
          Amount: $500,000                                                                                                      
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $250,000 GF/MH 1037                                                                                              
               $250,000 MHTAAR 1092 (Other)                                                                                     
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2015 -$500.0                                                                                                   
               FY2013 -$475.0                                                                                                   
                                                                                                                                
          This  is  a  periodic  competitive  capital  grant                                                                    
          project administered  by the Department  of Health                                                                    
          and  Social  Services.  Funds  allow  grantees  to                                                                    
          purchase  durable  goods:  snow  blowers,  kitchen                                                                    
          equipment, therapeutic  equipment, etc.,  that are                                                                    
          essential  to  the   core  services  and  programs                                                                    
          offered  to  clients.   This  capital  project  is                                                                    
          offered  every other  year,  and applications  for                                                                    
          grant funds consistently exceed funds available.                                                                      
                                                                                                                                
Ms. Pitney displayed slide 18, "FY2017 Capital: Health and                                                                      
Social Services":                                                                                                               
                                                                                                                                
     Project Title: MH Home Modification and Upgrades to                                                                        
     Retain Housing                                                                                                             
                                                                                                                                
          Amount: $1,050,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $250,000 GF 1004                                                                                                 
               $500,000 GF/MH 1037                                                                                              
               $300,000 MHTAAR 1092 (Other)                                                                                     
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
     This   competitive  capital   grant  program   provides                                                                    
     housing modifications  for persons with  special needs.                                                                    
     People  are  able to  remain  in  their homes,  thereby                                                                    
     avoiding  the  greater  cost of  supported  housing  or                                                                    
     institutional housing.                                                                                                     
                                                                                                                                
     Department Total: $7,658,325                                                                                               
                                                                                                                                
          $6,553,529 UGF                                                                                                        
          $550,000 Other                                                                                                        
          $554,796 Fed                                                                                                          
                                                                                                                                
Vice-Chair  Micciche looked  at  slide 17,  and queried  the                                                                    
findings  for  the  Comprehensive Risk  Assessment  for  the                                                                    
Office of Civil  Rights. He wondered if there was  a rule of                                                                    
law that required  action. He queried the  initiation of the                                                                    
Comprehensive Risk Assessment. Ms.  Pitney agreed to provide                                                                    
that information. She shared that  the issue was a follow up                                                                    
to an issue that occurred six or seven years prior.                                                                             
                                                                                                                                
Ms. Pitney  highlighted slide 19, "FY2017  Capital: Military                                                                    
and Veterans Affairs":                                                                                                          
                                                                                                                                
    Project Title: Bethel Scout Battalion -Phase 1 of 5                                                                         
                                                                                                                                
          Amount: $1,000,000                                                                                                    
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          This  project allows  the  Department of  Military                                                                    
          and  Veterans  Affairs  to  initiate  purchase  of                                                                    
          equipment to support for a  new Scout Battalion of                                                                    
          the Alaska  State Defense  Force, to  be stationed                                                                    
          in Bethel, Alaska, to conduct their mission.                                                                          
                                                                                                                                
     Project Title: National Guard Counterdrug Support                                                                          
                                                                                                                                
          Amount: $100,000                                                                                                      
                                                                                                                                
          Fund Source: Federal 1002                                                                                             
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          The  National  Guard Counterdrug  Support  Program                                                                    
          (CDSP) supports  law enforcement agencies  in drug                                                                    
          enforcement  operations, assists  in training  Law                                                                    
          Enforcement  Officers,   and  provides  community-                                                                    
          based   drug  awareness   programs.  The   primary                                                                    
          purpose of  the U.S.  Department of  Justice Asset                                                                    
          Forfeiture Program is to  deter crime by depriving                                                                    
          criminals  of  profits  and  proceeds  from  their                                                                    
          illegal activities. The CDSP  program is needed to                                                                    
          provide   citizen  protection   and  life   safety                                                                    
          measures.                                                                                                             
                                                                                                                                
     Project Title: State Homeland Security Grant Programs                                                                      
                                                                                                                                
          Amount: $4,500,000                                                                                                    
                                                                                                                                
          Fund Source: Federal 1002                                                                                             
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          The  State  of   Alaska  receives  State  Homeland                                                                    
          Security  grants  from   the  U.S.  Department  of                                                                    
          Homeland   Security.   The  grants   provide   for                                                                    
          programs  across the  state for  homeland security                                                                    
          planning,   equipment,   and  emergency   training                                                                    
          exercises.   In   support  of   the   department's                                                                    
          mission,  these programs  address issues  of life,                                                                    
          safety, and protection  of infrastructure, and are                                                                    
          necessary  for   effective  citizen  preparedness,                                                                    
          local  first  response,  and  statewide  emergency                                                                    
          preparedness                                                                                                          
                                                                                                                                
     Department Total: $5,600,000                                                                                               
                                                                                                                                
          $1,000,000 UGF                                                                                                        
          $4,600,000 Fed                                                                                                        
                                                                                                                                
                                                                                                                                
Vice-Chair  Micciche looked  at the  funding for  the Bethel                                                                    
Scout  Battalion. He  wondered  if that  was an  appropriate                                                                    
project.                                                                                                                        
                                                                                                                                
Senator  Hoffman shared  the funding  for  the Bethel  Scout                                                                    
Battalion was  a five  year commitment,  so there  should be                                                                    
additional discussion on  all the phases of  the project. He                                                                    
requested further information on the project.                                                                                   
                                                                                                                                
10:13:04 AM                                                                                                                   
                                                                                                                                
Senator Dunleavy stressed that the  state could not fund new                                                                    
programs, and  pointed out  that the request  was for  a new                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon agreed                                                                                                       
                                                                                                                                
Senator  Dunleavy   shared  that   he  was  not   sure  what                                                                    
newspapers the administration was reading.                                                                                      
                                                                                                                                
Senator  Olson  wondered  if   the  private  donations  were                                                                    
significant  for  recreation  projects. Ms.  Pitney  replied                                                                    
that she  did not know  about the private donations  for the                                                                    
specific  project,  but  furthered  that  there  were  other                                                                    
programs  that utilized  private  donations  to attract  the                                                                    
federal match.                                                                                                                  
                                                                                                                                
Senator  Bishop understood  that the  individual departments                                                                    
would present their individual projects.  He shared that the                                                                    
goals of the Bethel Scout  Battalion was a valuable project.                                                                    
He felt that  there may be a possibility  to utilize federal                                                                    
money to eliminate the use of GF funding.                                                                                       
                                                                                                                                
Vice-Chair Micciche  stressed that committee  supported most                                                                    
of  the   programs,  but  each  program   must  be  strictly                                                                    
evaluated.                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon restated that  it was difficult to demand                                                                    
that Alaskans fund state government  during the expansion of                                                                    
programs.                                                                                                                       
                                                                                                                                
10:18:10 AM                                                                                                                   
                                                                                                                                
Ms.  Pitney addressed  slide  20,  "FY2017 Capital:  Natural                                                                    
Resources":                                                                                                                     
                                                                                                                                
     Project Title: Federal and Local Government Funded                                                                         
     Forest Resource and Fire Program Receipts                                                                                  
                                                                                                                                
          Amount: $1,800,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $1,400,000 Fed 1002                                                                                              
               $400,000 SDPR1108 (Other)                                                                                        
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This  project   provides  receipt   authority  for                                                                    
          federal  and  local   government  funded  projects                                                                    
          including competitive  grant awards  for hazardous                                                                    
          fuels    reduction,   Firewise    and   prevention                                                                    
          education, special forest  disease surveys, forest                                                                    
          restoration  projects, biomass  inventories, towns                                                                    
          and   cities  targeted   for  community   forestry                                                                    
          projects  and tree  plantings, forest  stewardship                                                                    
          plans,   and  agreements   for   one  time   local                                                                    
          government funded field projects.                                                                                     
                                                                                                                                
     Project Title: USGS State map Grant to Spur Mineral                                                                        
     Investment and Exploration                                                                                                 
                                                                                                                                
          Amount: $600,000                                                                                                      
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $300,000 Fed 1002                                                                                                
               $300,000 GF Match 1003                                                                                           
                                                                                                                                
          Prior Funding: None                                                                                                   
                                                                                                                                
          This   project   will  leverage   federal   funds,                                                                    
          existing  airborne  geophysical surveys,  on-going                                                                    
          U.S   Geological   Survey  (USGS)   and   academic                                                                    
          geologic research on  regional mineral trends, and                                                                    
          a  potential FY2016  USGS hyperspectral  survey to                                                                    
          produce  1:63 scale,  360  geologic maps,  mineral                                                                    
          deposit  assessments and  geochemical data  in the                                                                    
          Tok area.  This will  spur mineral  investment and                                                                    
          new exploration expenditures.                                                                                         
                                                                                                                                
Ms. Pitney addressed slide 21, "FY2017 Capital: Natural                                                                         
Resources"                                                                                                                      
                                                                                                                                
     Project Title: National Recreational Trails Federal                                                                        
     Grant Program                                                                                                              
                                                                                                                                
          Amount: $1,700,000                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $1,500,000 Fed 1002                                                                                              
               $200,000 GF Match 1003                                                                                           
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          Alaskans   rely   on    trails   for   recreation,                                                                    
          subsistence   and   transportation.  Trails   need                                                                    
          maintenance to ensure safe  passage, and that they                                                                    
          remain  open  and  available for  use.  Funds  are                                                                    
          distributed as 80/20  matching reimbursable grants                                                                    
          for trail and  trailhead development, maintenance,                                                                    
          and  education programs  for safe  and responsible                                                                    
          trail  use. Grants  are awarded  to organizations,                                                                    
          agencies,  and  local  governments,  resulting  in                                                                    
          trails  that are  safe,  high-quality, have  year-                                                                    
          round   access,   and  include   motorized,   non-                                                                    
          motorized, and diversified trails.                                                                                    
                                                                                                                                
     Project Title: Abandoned Mine Lands Reclamation                                                                            
     Federal Program                                                                                                            
                                                                                                                                
          Amount: $3,200,000                                                                                                    
                                                                                                                                
          Fund Source: Federal 1002                                                                                             
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          The  Legislature enacted  the Alaska  Surface Coal                                                                    
          Mining  Control and  Reclamation Act  in 1983  (AS                                                                    
          27.21).  The  main  purpose  of  the  act  was  to                                                                    
          promote  the  reclamation  of areas  mined  before                                                                    
          enactment  of the  federal Surface  Mining Control                                                                    
          and Reclamation  Act of  1977. Conditions  on some                                                                    
          of these mined areas  could endanger public health                                                                    
          and safety,  have environmental  implications, and                                                                    
          prevent the  beneficial use of or  cause damage to                                                                    
          land and water resources.                                                                                             
                                                                                                                                
Ms. Pitney looked at slide 22, "FY2017 Capital: Natural                                                                         
Resources"                                                                                                                      
                                                                                                                                
    Project Title: National Historic Preservation Fund                                                                          
                                                                                                                                
          Amount: $800,000                                                                                                      
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               $650,000 Fed 1002                                                                                                
               $150,000 GF Match 1003                                                                                           
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          The National Historic  Preservation Fund (NHPF) is                                                                    
          a  federal program  to  assist  states with  their                                                                    
          statewide  historic   preservation  programs.  The                                                                    
          NHPF   fund   is   used  for   grants   to   local                                                                    
          governments,    agencies,     organizations    and                                                                    
          individuals  for restoration  or stabilization  of                                                                    
          historic  properties,   and  grants   for  survey,                                                                    
          inventory,   education,   planning  and   training                                                                    
          projects.  Included in  this  capital project  are                                                                    
          cooperative    historic   preservation    projects                                                                    
          executed   through   cooperative   or   assistance                                                                    
          agreements  or   grants  with   federal  agencies.                                                                    
          Cooperative  historic  preservation projects  with                                                                    
          federal   agencies  help   meet  mutual   cultural                                                                    
          resource management goals.                                                                                            
                                                                                                                                
     Project Title: Snowmobile Trail Development Program                                                                        
     and Grants                                                                                                                 
                                                                                                                                
          Amount: $250,000                                                                                                      
                                                                                                                                
          Fund   Source:    Special   Vehicle   Registration                                                                    
          Receipts 1195 (DGF) AS 28.39.020                                                                                      
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          Snowmobiling  is one  of Alaska's  fastest growing                                                                    
          outdoor   activities   and    a   very   important                                                                    
          transportation  resource  for  rural  communities.                                                                    
          There is a growing  demand to develop and maintain                                                                    
          trails and  trailheads to provide for  safe riding                                                                    
          opportunities  and transportation  routes, and  to                                                                    
          educate riders about  safe riding practices. Funds                                                                    
          for  this  program   are  provided  by  snowmobile                                                                    
          registration  fees  paid  by Alaskans.  Funds  are                                                                    
          distributed  in the  form of  matching grants  for                                                                    
          trail development  and maintenance,  trail marking                                                                    
          and  signing, safety  education, and  to establish                                                                    
          legal trail easements.                                                                                                
                                                                                                                                
     Department Total: $8,350,000                                                                                               
                                                                                                                                
          $650,000 UGF                                                                                                          
          $250,000 DGF                                                                                                          
          $400,000 Other                                                                                                        
          $7,050,000 Fed                                                                                                        
                                                                                                                                
Senator  Hoffman wondered  if  the grants  were required  to                                                                    
spend the  fees. Ms.  Pitney believed  that the  grants were                                                                    
directed  toward trail  development. She  agreed to  provide                                                                    
further information.                                                                                                            
                                                                                                                                
Ms. Pitney discusses slide 23, "FY2017 Capital: Public                                                                          
Safety":                                                                                                                        
                                                                                                                                
    Project Title: Marine Fisheries Patrol Improvements                                                                         
                                                                                                                                
          Amount: $1,200,000                                                                                                    
                                                                                                                                
          Fund Source: Federal 1002                                                                                             
                                                                                                                                
          Prior Funding: Annual                                                                                                 
                                                                                                                                
          This   annual  project   is   part   of  a   joint                                                                    
          enforcement  agreement  (JEA)  with  the  National                                                                    
          Marine  Fisheries  Service.  The  project  is  for                                                                    
          federal  fiscal year  2016  JEA.  The JEA  federal                                                                    
          funding has historically been  part of the capital                                                                    
          budget since it primarily  funds equipment, but it                                                                    
          also  currently  funds four  positions.  Federally                                                                    
          regulated marine  fisheries occur on  a year-round                                                                    
          basis  in  the  coastal  and  offshore  waters  of                                                                    
          Alaska.  Both the  federal  and state  governments                                                                    
          share an interest in  ensuring these fisheries are                                                                    
          protected. This  project will help  the department                                                                    
          achieve its  mission to  ensure public  safety and                                                                    
          enforce  fish  and  wildlife laws  and  protecting                                                                    
          wildlife resources.                                                                                                   
                                                                                                                                
     Project Title: Reapprop for Aircraft and Vessel                                                                            
     Repair, and Deferred Maintenance                                                                                           
                                                                                                                                
          Amount: $3,619,500                                                                                                    
                                                                                                                                
          Fund Source:                                                                                                          
                                                                                                                                
               2,319,500 GF 1004                                                                                                
               $1,300,000 Alaska Capital Income Fund 1197                                                                       
               (DGF) AS 37.05.565                                                                                               
                                                                                                                                
          Prior Funding:                                                                                                        
                                                                                                                                
               FY2016 -None                                                                                                     
               FY2015 -$2,150.0                                                                                                 
                                                                                                                                
          This  project allows  for  the  annual repair  and                                                                    
          maintenance of  aircraft and vessels that  must be                                                                    
          completed  in  order   to  ensure  safe  operating                                                                    
          conditions.   The   project    also   allows   for                                                                    
          maintenance and  repairs on its  existing aircraft                                                                    
          hangar   facilities   which   are   in   need   of                                                                    
          structural,   siding,   electrical,  and   heating                                                                    
          repairs. These hangars are a  main support hub for                                                                    
          the state  to provide many mandated  and essential                                                                    
          public  safety   functions,  primarily   in  rural                                                                    
          Alaska.                                                                                                               
          -$2,269,500   Aircraft  and   Vessel  Repair   and                                                                    
          Maintenance                                                                                                           
          -$1,350,000 Deferred Maintenance                                                                                      
                                                                                                                                
          Department Total: $4,819,500                                                                                          
                                                                                                                                
Co-Chair  MacKinnon  noted  that   there  were  four  funded                                                                    
operating budget  positions in the first  appropriation. She                                                                    
stressed that  the capital  budget currently  contained some                                                                    
operating  budget   money  from   the  federal   grant.  She                                                                    
understood  that the  state had  grounded  an aircraft,  and                                                                    
wondered if that aircraft had  been sold. Ms. Pitney replied                                                                    
that the  aircraft had not  been sold, but it  was currently                                                                    
in  storage. There  was a  hope to  reinstate that  aircraft                                                                    
into the fleet.                                                                                                                 
                                                                                                                                
10:23:08 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  queried the  reason for not  selling the                                                                    
aircraft. Ms.  Pitney replied that  the difference  was that                                                                    
the retiring vessel  was old, and the  helicopter was fairly                                                                    
new to the fleet.                                                                                                               
                                                                                                                                
Co-Chair MacKinnon  wondered why  the proceeds  from selling                                                                    
the aircraft would  not be used to pay for  the project. Ms.                                                                    
Pitney  restated  that the  helicopter  was  fairly new,  so                                                                    
there  was a  hope that  there  was hope  to use  it in  the                                                                    
future.                                                                                                                         
                                                                                                                                
Ms. Pitney  displayed slide  24, "FY2017  Capital: Revenue."                                                                    
She shared that,  with the exception of the  first item, all                                                                    
of  the   remaining  items   were  Alaska   Housing  Finance                                                                    
Corporation (AHFC) programs:                                                                                                    
                                                                                                                                
     AHFC Facility Maintenance Program: $1 million                                                                              
                                                                                                                                
     AHFC Cold Climate Housing Research Center (CCHRC)                                                                          
                                                                                                                                
     AHFC Rental Assistance for Victims -Empowering Choice                                                                      
     Housing Program (ECHP)                                                                                                     
                                                                                                                                
     AHFC Teacher, Health and Public Safety Professionals                                                                       
     Housing                                                                                                                    
                                                                                                                                
     AHFC Senior Citizens Housing Development Program (UGF                                                                      
     through Reapprop)                                                                                                          
                                                                                                                                
     AHFC Housing and Urban Development Federal HOME Grant                                                                      
                                                                                                                                
     AHFC Housing and Urban Development Capital Fund                                                                            
     Program                                                                                                                    
                                                                                                                                
     AHFC Housing and Urban Development Capital Fund                                                                            
     Program                                                                                                                    
                                                                                                                                
     AHFC Competitive Grants for Public Housing                                                                                 
                                                                                                                                
     AHFC Supplemental Housing Development Program                                                                              
                                                                                                                                
    AHFC Weatherization Program (UGF through Reapprop)                                                                          
                                                                                                                                
     MH: AHFC Homeless Assistance Program                                                                                       
                                                                                                                                
     MH: AHFC Beneficiary and Special Needs Housing                                                                             
                                                                                                                                
     Department Total: $52.2 million                                                                                            
                                                                                                                                
10:27:44 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon queried further  detail on the $3 million                                                                    
DGF for  supplemental housing. Ms.  Pitney replied  that the                                                                    
funding  correlated with  a  federal  program that  filtered                                                                    
through  regional  housing   authorities.  The  supplemental                                                                    
amount  was intended  for items  outside the  housing units,                                                                    
such as providing the infrastructure  for attaching the unit                                                                    
to a utility line.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon wondered what  was paid the previous year                                                                    
for   the   project.   Ms.   Pitney   responded   that   the                                                                    
appropriation was consistently $3 million.                                                                                      
                                                                                                                                
Senator  Hoffman  requested  all  the  requests  from  prior                                                                    
years.                                                                                                                          
                                                                                                                                
Co-Chair  MacKinnon   shared  that  the   departments  would                                                                    
present the prior years' funding for the projects.                                                                              
                                                                                                                                
Co-Chair  MacKinnon  shared  that  the  supplemental  budget                                                                    
portion of the presentation would be rescheduled.                                                                               
                                                                                                                                
10:30:35 AM                                                                                                                   
                                                                                                                                
Ms.   Pitney   discussed    slide   25,   "FY2017   Capital:                                                                    
Transportation  and  Public  Facilities."  She  stated  that                                                                    
there were six GF components.  She remarked that the Airport                                                                    
Improvement  Program;  and  the Surface  Transportation  and                                                                    
Statewide Federal  Programs had federal matching  funds. She                                                                    
stated that the other funds  for those programs were capital                                                                    
receipts through  the federal program.  She stated  that the                                                                    
Airport  and Transportation  Match for  the federal  funding                                                                    
was  $62  million.  She  noted   the  Public  and  Community                                                                    
Transportation  Match of  $1  million.  The State  Equipment                                                                    
Fleet Replacement  was $24 million  of other funds;  and the                                                                    
operating  funds were  used to  rent the  equipment for  the                                                                    
fleet.                                                                                                                          
                                                                                                                                
Senator Hoffman  queried the list of  equipment replacement,                                                                    
and the  year of  the replacement,  and their  location. Ms.                                                                    
Pitney shared that the information was available.                                                                               
                                                                                                                                
Co-Chair MacKinnon shared that  Senator Bishop had conducted                                                                    
a review, and  expected a perspective on some  of the issues                                                                    
of maintenance in the fleet.                                                                                                    
                                                                                                                                
Vice-Chair Micciche  shared that  he had many  questions for                                                                    
the  Department  of  Transportation  and  Public  Facilities                                                                    
(DOT/PF).  He wanted  to understand  the detail  of all  the                                                                    
categories.                                                                                                                     
                                                                                                                                
Co-Chair MacKinnon  shared that  there was  a plan  for each                                                                    
department to  justify their requests to  the committee. She                                                                    
queried how the fleet was exiting the state.                                                                                    
                                                                                                                                
10:35:43 AM                                                                                                                   
                                                                                                                                
Senator Dunleavy  wondered if  the purchases  were conducted                                                                    
solely by DOT/PF. Ms. Pitney  replied that the projects were                                                                    
across the board.                                                                                                               
                                                                                                                                
Senator  Dunleavy queried  whether each  department selected                                                                    
their  own  criteria  for purchasing  vehicles.  Ms.  Pitney                                                                    
responded    that   there    was   a    movement   on    the                                                                    
standardizations.                                                                                                               
                                                                                                                                
Co-Chair  MacKinnon  wondered   whether  commissioners  were                                                                    
given   vehicles.    Ms.   Pitney   responded    that   some                                                                    
commissioners   were  given   vehicles.   There  were   some                                                                    
departments   with  shared   vehicles  depending   on  their                                                                    
requirements.                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon asked whether  an audit would be possible                                                                    
to  see  whether  the vehicles  were  utilized.  Ms.  Pitney                                                                    
replied that the audit was a part of the standards.                                                                             
                                                                                                                                
Co-Chair MacKinnon  wondered if the committee  would like to                                                                    
hear more about the function and utilization of the fleet.                                                                      
                                                                                                                                
Vice-Chair  Micciche would  like  to  hear more  information                                                                    
about the unmatched UGF.                                                                                                        
                                                                                                                                
10:40:35 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  wondered if Vice-Chair Micciche  was the                                                                    
subcommittee  chairman   for  DOT/PF.   Vice-Chair  Micciche                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Senator  Olson remarked  that  he would  like  to hear  more                                                                    
about the unused helicopter in DPS.                                                                                             
                                                                                                                                
Co-Chair MacKinnon felt that  all departments should present                                                                    
the costs and requests for their fleet.                                                                                         
                                                                                                                                
Ms. Pitney continued to discuss slide 25.                                                                                       
                                                                                                                                
Vice-Chair Micciche wondered why there was not more                                                                             
potential for potential match in the AMHS.                                                                                      
                                                                                                                                
Co-Chair MacKinnon remarked that she committee wanted to                                                                        
understand how the current fleet was utilized, and how to                                                                       
invest the fleet to keep it operational for Alaska.                                                                             
                                                                                                                                
Ms. Pitney concluded slide 25.                                                                                                  
                                                                                                                                
10:45:15 AM                                                                                                                   
                                                                                                                                
Ms. Pitney highlighted slide 26, "FY2017 Capital:                                                                               
University of Alaska":                                                                                                          
                                                                                                                                
     Project Title: Deferred Maintenance                                                                                        
                                                                                                                                
          Amount: $10 million                                                                                                   
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: FY 16, $3 million; FY 15, $12                                                                          
          million                                                                                                               
                                                                                                                                
Ms. Pitney looked at slide 27, "FY2017 Capital: Judiciary":                                                                     
                                                                                                                                
     Project Title: Deferred Maintenance                                                                                        
                                                                                                                                
          Amount: $2.382 million                                                                                                
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: FY 16, $2.5 million; FY 15 $2.42                                                                       
          million                                                                                                               
                                                                                                                                
          This is  an annual  project to address  repairs to                                                                    
          building   components    that   have    not   been                                                                    
          sufficiently  maintained and  whose condition  now                                                                    
          threatens longevity of the buildings.                                                                                 
                                                                                                                                
      Project Title: Court Security Projects                                                                                    
                                                                                                                                
          Amount: $1.351 million                                                                                                
                                                                                                                                
          Fund Source: General Fund 1004                                                                                        
                                                                                                                                
          Prior Funding: FY 14, $1 million; FY 13 $1.7                                                                          
          million                                                                                                               
                                                                                                                                
          This request is for funding an on-going multi-                                                                        
          year project to provide for physical security for                                                                     
          the public, judges, staff, jurors, and other                                                                          
          users in court facilities statewide.                                                                                  
                                                                                                                                
      Department Total: $3.733 million                                                                                          
                                                                                                                                
SB  138  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
021116 SFIN FY16 Supplemental FY17 Capital.pdf SFIN 2/11/2016 9:00:00 AM
Overview: OMB Capital/Supplemental
021116 OMB SB138 SFIN Response to Questions.pdf SFIN 2/11/2016 9:00:00 AM
SB 138