Legislature(2003 - 2004)
04/29/2004 08:15 AM House CRA
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ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
April 29, 2004
8:15 a.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Kelly Wolf, Vice Chair
Representative Ralph Samuels
Representative Albert Kookesh
MEMBERS ABSENT
Representative Pete Kott
Representative Tom Anderson
Representative Sharon Cissna
COMMITTEE CALENDAR
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN)
"An Act relating to the national forest income program in the
Department of Community and Economic Development and to the
authority of the department to adopt regulations; making
conforming amendments; and providing for an effective date."
- MOVED HCS CSSSSB 328(CRA) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 190(STA)
"An Act adding certain state-owned land and water to the Kenai
River Special Management Area; relating to the mineral estate of
the state-owned land and water in the Kenai River Special
Management Area; relating to the Kenai River Special Management
Area advisory board; and providing for an effective date."
- SUBCOMMITTEE MEETING
PREVIOUS COMMITTEE ACTION
BILL: SB 328
SHORT TITLE: NATIONAL FOREST INCOME PROGRAM/DCED REGS
SPONSOR(S): SENATOR(S) STEDMAN
02/13/04 (S) READ THE FIRST TIME - REFERRALS
02/13/04 (S) CRA, FIN
02/23/04 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/23/04 (S) CRA, FIN
02/25/04 (S) CRA AT 1:30 PM FAHRENKAMP 203
02/25/04 (S) Moved SB 328 Out of Committee
02/25/04 (S) MINUTE(CRA)
02/27/04 (S) CRA RPT 3DP 2NR
02/27/04 (S) DP: STEDMAN, WAGONER, ELTON;
02/27/04 (S) NR: LINCOLN, STEVENS G
03/11/04 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/11/04 (S) -- Meeting Canceled --
03/24/04 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/24/04 (S) Heard & Held
03/24/04 (S) MINUTE(FIN)
03/29/04 (S) FIN RPT CS 3DP 3NR SAME TITLE
03/29/04 (S) DP: GREEN, WILKEN, STEVENS B;
03/29/04 (S) NR: DYSON, HOFFMAN, BUNDE
03/29/04 (H) FIN AT 9:00 AM HOUSE FINANCE 519
03/29/04 (S) Moved CSSSSB 328(FIN) Out of Committee
03/29/04 (S) MINUTE(FIN)
04/05/04 (S) FIN CS ADOPTED Y12 N8
04/07/04 (S) TRANSMITTED TO (H)
04/07/04 (S) VERSION: CSSSSB 328(FIN)
04/13/04 (H) READ THE FIRST TIME - REFERRALS
04/13/04 (H) CRA, FIN
04/29/04 (H) CRA AT 8:00 AM CAPITOL 124
WITNESS REGISTER
SENATOR BERT STEDMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as the sponsor of SSSB 328.
ACTION NARRATIVE
TAPE 04-15, SIDE A
Number 0001
CHAIR CARL MORGAN called the House Community and Regional
Affairs Standing Committee meeting to order at 8:15 a.m.
Representatives Morgan, Wolf, Samuels, and Kookesh were present
at the call to order.
SB 328-NATIONAL FOREST INCOME PROGRAM/DCED REGS
CHAIR MORGAN announced that the first order of business would be
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN), "An Act
relating to the national forest income program in the Department
of Community and Economic Development and to the authority of
the department to adopt regulations; making conforming
amendments; and providing for an effective date."
Number 0080
REPRESENTATIVE SAMUELS moved to adopt HCS CSSSSB 328, Version
23-LS1620\Q, Bullock, 4/27/04, as the working document. There
being no objection, Version Q was before the committee.
Number 0135
SENATOR BERT STEDMAN, Alaska State Legislature, sponsor of SSSB
328, explained that the federal government has changed the
regulatory environment for timber receipts, and therefore the
state has to modify its statutes to come into compliance. The
federal government requires that a small portion of the timber
receipts be allocated to something other schools and roads.
Most communities have chosen the variable program under which
the community can choose which programs to spend the money. The
remainder of the monies are divided amongst the school
districts. The unified boroughs receive allocation through
Anchorage while the boroughs that aren't unified, which consists
of a substantial portion of Southeast Alaska, receive
allocations based on student count.
SENATOR STEDMAN recalled that in the Senate Finance Committee
there was discussion with regard to students in Craig being
counted that were from areas outside the Tongass National
Forest, which was felt to be inappropriate. There was
discussion regarding whether the boundary should be brought down
to the boundary of the Tongass National Forest or to the school
district. The decision was to bring the boundary to the school
district. However, Craig is in a unique situation because, due
to the extensive road system on Prince of Wales, many students
are bussed or driven to Craig to attend class. The
aforementioned students wouldn't be counted under CSSSSB
328(FIN). Version Q would allow the students physically
attending school in Craig to be counted, which is fairer. He
noted that some of the students on Prince of Wales don't have
schools to go to, and therefore have to be bussed to Craig or
another school of their choice. Senator Stedman stated that
[Version Q] also solves the perceived abuse in which there was
an over weighted dollar allocation going to a select unorganized
borough by counting children outside of the Tongass National
Forest.
SENATOR STEDMAN acknowledged that over the past four to five
years Craig's revenue had climbed substantially under this
program, but Craig is voluntarily scaling that back from about
600 students to 160 students. However, under CSSSSB 328(FIN)
Craig would've only been able to count six or seven students.
He related his understanding that Craig is supportive of
[Version Q]. He reiterated that the allocation of the monies
within the unorganized boroughs is based on student count, and
therefore by not counting the students outside of the Tongass
National Forest the money goes back into the total "pot" for the
unorganized boroughs and is split up, including Craig,
Petersburg, Wrangell, Kake, Hoonah, and Angoon. He noted that
the Tongass National Forest and the Chugach National Forest are
the two that fall under this plan.
CHAIR MORGAN surmised then that all the other outlying schools
in the Tongass National Forest receive a slight increase.
SENATOR STEDMAN replied yes, but pointed out that the funding
source for this will end in 2006. He emphasized that it's a
large revenue source for the smaller communities as well as
Juneau, Ketchikan, and Sitka. Therefore, there is a movement to
get the congressional delegation to extend this program.
Senator Stedman opined that he wasn't sure that the program
could be extended at the same level it is today because the
total dollar amounts were set during [better financial times
for] timber in the Tongass National Forest. However, there is
virtually no timber being cut as compared to what was cut 15
years ago, which means that at best the dollar amounts will
decrease. The loss of this money coupled with the Teachers'
Retirement System (TRS) is going to create a difficult
situation.
Number 0683
REPRESENTATIVE KOOKESH thanked Senator Stedman for [Version Q]
because it addresses the Craig issue, which was the only concern
he had with the legislation. He noted that most of the
communities being discussed are in his district.
CHAIR MORGAN informed the committee that he talked with
representatives from Craig, which lead to the development of
[Version Q] with the help of the sponsor.
SENATOR STEDMAN related that he received word of CSSSSB 328(FIN)
late in the evening and if there had been more time, there is a
good chance that language similar to that in [Version Q]
would've been developed.
CHAIR MORGAN, upon determining there was no one who wished to
testify, announced that public testimony was closed.
Number 0892
REPRESENTATIVE KOOKESH moved to report HCS CSSSSB 328, Version
23-LS1620\Q, Bullock, 4/27/04, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, HCS CSSSSB 328(CRA) was reported from the House
Community and Regional Affairs Standing Committee.
SB 190-KENAI RIVER SPECIAL MANAGEMENT AREA
Number 0964
The subcommittee on SB 190 met and the recording of the
subcommittee meeting begins at this point on Tape 04-15, Side A.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:30 a.m.
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