Legislature(1993 - 1994)

04/02/1993 02:10 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                          APRIL 2, 1993                                        
                            2:10 P.M.                                          
                                                                               
  TAPE HFC 93 - 90, Side 1, #000 - end.                                        
  TAPE HFC 93 - 90, Side 2, #000 - #084.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 2:10 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Bill   Williams;  Mike   Greany,  Director,                 
  Legislative Finance  Division; Jim  Ayers, System  Director,                 
  Alaska Marine  Highway System, Department  of Transportation                 
  and Public Facilities; Remond  Henderson, Director, Division                 
  of  Administrative  Service,  Department  of  Community  and                 
  Regional Affairs.                                                            
                                                                               
  SUMMARY INFORMATION                                                          
  HB 55     An Act making appropriations for the operating and                 
            loan program expenses  of state government and  to                 
            capitalize funds;  and providing for  an effective                 
            date.                                                              
                                                                               
            CS HB 55 (FIN) was reported out  of Committee with                 
            a "do pass" recommendation.                                        
                                                                               
  MIKE   GREANY,   DIRECTOR,  LEGISLATIVE   FINANCE  DIVISION,                 
  indicated that Section #13  is the same as that  proposed by                 
  the Governor.  The Committee adopted Section #13.                            
                                                                               
  Mr. Greany referenced Section #20  which had previously been                 
  held open.   He noted the language  addressing the surcharge                 
  had been incorporated.  The Committee adopted Section #20.                   
                                                                               
  Mr.  Greany  noted Section  #21  resulted from  a discussion                 
  between the 470  funds and their relation  to the Mitigation                 
  Account.                                                                     
                                                                               
                                1                                              
                                                                               
                                                                               
       Section (a) indicates money from the Mitigation Account                 
       appropriated to the 470 fund.                                           
                                                                               
       Section (b) justifies the amount from that account made                 
       to the Storage Tank Assistance Fund.                                    
                                                                               
       Section (c)  appropriates $100 thousand dollars for oil                 
       spill evaluation in  the Yukon-Koyukuk school district.                 
                                                                               
                                                                               
  Representative  Therriault asked  why the  ferry expenditure                 
  was  not included  in  Section  #21.   Mr.  Greany  replied,                 
  Section #22  (b) indicates the  $7.5 million dollars  to the                 
  Vessel Replacement Fund  for the oil ferry  originating from                 
  the 470  fund.   Representative Hanley  understood that  all                 
  appropriations originated from the Mitigation Account.                       
                                                                               
  Representative Hanley recommended adding  a new Section (d).                 
  Mr. Greany  clarified that  Section #22  (b) was  moved into                 
  Section #21 and  that the funding  source for the oil  ferry                 
  would be the Mitigation Account.                                             
                                                                               
  Representative  Martin  MOVED  to  change  the  language  in                 
  Section  #22  (b),  Page  5,  Line   10,  by  deleting  "the                 
  refurbishment or" and  also to  delete the "s"  on the  word                 
  "vessels".                                                                   
                                                                               
  JIM AYERS, SYSTEMS DIRECTOR,  ALASKA MARINE HIGHWAY  SYSTEM,                 
  DEPARTMENT OF  TRANSPORTATION AND PUBLIC  FACILITIES, stated                 
  AMHS would not object to the recommendation.                                 
                                                                               
  Representative Brown MOVED  to make  the verbiage match  the                 
  language in the sentence,  Page 5, Line 10,  deleting "have"                 
  and  inserting "has".    There being  NO  OBJECTION, it  was                 
  amended.  There being NO OBJECTION  to the amendment, it was                 
  adopted.                                                                     
                                                                               
  Co-Chair  MacLean asked  for  further clarification  of  the                 
  amount requested for total ferry system funding.  Mr.  Ayers                 
  stated  that  the total  cost  of  the vessel  would  be $85                 
  million dollars.   Mr. Ayers understood the  State's portion                 
  of funding would  be $15  million dollars.   He presented  a                 
  chart indicating the distribution:                                           
                                                                               
             .5  FY 92 (direct)                                                
            7.5  FY 93 VRF                                                     
            7.0  FY 94 VRF                                                     
                                                                               
           15.0  Total "470" Funds                                             
                                                                               
  Co-Chair MacLean MOVED  to amend  Page 5, Line  8 to  insert                 
                                                                               
                                2                                              
                                                                               
                                                                               
  "$7,000,000" million dollars and delete "$7,500,00".                         
                                                                               
  Mr.  Ayers reiterated that  the total estimated  cost of the                 
  vessel  would  be  $85  million  dollars, a  combination  of                 
  federal and state funds.                                                     
                                                                               
                                                                               
            $60 Federal FY 94                                                  
            $ 5 Match                                                          
            $15 470 Fund                                                       
            $ 5 other fund                                                     
                                                                               
            $85 million dollars total funding strategy                         
                                                                               
  There being NO OBJECTION to the motion, it was so ordered.                   
                                                                               
  Representative Brown MOVED to delete on Page 4, Line 29, the                 
  language "the  following projects" and  insert "contaminated                 
  site  assessment";  Page  4,  Line   31  delete  "oil  spill                 
  evaluation for"; Page  5, LIne  2 delete "contaminated  site                 
  assessment".  There being NO OBJECTION, it was incorporated.                 
                                                                               
                                                                               
  Representative  Brown  pointed out  that  Section 23  is not                 
  reflected in the  new Section 35.   Co-Chair MacLean  stated                 
  the amount was not changed.                                                  
                                                                               
                   ________________________________                            
                                                                               
                                                                               
  Co-Chair Larson referenced Attachment #1, the Formula Funded                 
  Programs, Senior Citizens Tax Relief.                                        
                                                                               
  REMOND  HENDERSON,  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES, DEPARTMENT  OF  COMMUNITY  AND  REGIONAL  AFFAIRS,                 
  explained that if a zero appropriation was funded for the FY                 
  94 budget, it would affect the municipalities.  In the past,                 
  the  municipalities  have been  funded  at a  twenty percent                 
  level.  FY 94 budget would fund them at a zero percent level                 
  leaving  the  municipalities responsible  for  the program's                 
  full coverage.   The municipalities  would be left  with the                 
  $2.8 million dollars fee.                                                    
                                                                               
  He  added,  the amount  funded  in  FY 93  was  $2.8 million                 
  dollars.    The  Renters Rebate  amounted  to  $820 thousand                 
  dollars.  Co-Chair Larson MOVED to add $2 million dollars to                 
  the Senior Citizens  Tax Relief Fund.   Representative Brown                 
  MOVED  to  amend   that  amount   to  $3  million   dollars.                 
  Representative Parnell OBJECTED.                                             
                                                                               
  A roll call was taken on the MOTION to amend.                                
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
       IN FAVOR:      Hoffman, Navarre, Brown, Grussendorf.                    
                                                                               
       OPPOSED:       Martin,  Parnell,   Therriault,  Foster,                 
                      Hanley, Larson, MacLean.                                 
                                                                               
  The MOTION FAILED, (4-7).                                                    
                                                                               
  A  roll  call was  taken  on the  MOTION  to add  $2 million                 
  dollars.  Representative Parnell OBJECTED.                                   
                                                                               
       IN FAVOR:      Martin,    Navarre,    Brown,    Foster,                 
                      Grussendorf,  Hanley, Hoffman,  MacLean,                 
                      Larson.                                                  
                                                                               
       OPPOSED:       Parnell, Therriault.                                     
                                                                               
  The MOTION PASSED, (9-2).                                                    
                                                                               
  Co-Chair  MacLean  MOVED to  report CS  HB  55 (FIN)  out of                 
  Committee with individual  recommendations.   Representative                 
  Hoffman noted that  the title  would need to  be changed  to                 
  include the formula  funded programs.   Mr. Greany  replied,                 
  the language  as drafted  would include  loan expansion  and                 
  capitalization of funds.  Representative Navarre OBJECTED to                 
  moving the bill from Committee.                                              
                                                                               
  (Tape Change, HFC 93-90, Side 2).                                            
                                                                               
  Representative  Navarre noted  his  disappointment with  the                 
  lack  of  cooperation  between  the  majority  and  minority                 
  members in  the House  Finance Committee  during the  budget                 
  discussion.  He  recommended laying  ground rules on  policy                 
  and budget  caps and  asked to  be included  as part  of the                 
  process.                                                                     
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, Larson, MacLean.                                 
                                                                               
       OPPOSED:       Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
  The MOTION PASSED, (7-4).                                                    
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:30 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                          APRIL 2, 1993                                        
                            2:10 P.M.                                          
                                                                               
                                4                                              
                                                                               
                                                                               
  TAPE HFC 93 - 90, Side 1, #000 - end.                                        
  TAPE HFC 93 - 90, Side 2, #000 - #084.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting  of the House Finance                 
  Committee to order at 2:10 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Bill   Williams;  Mike   Greany,  Director,                 
  Legislative Finance  Division; Jim  Ayers, System  Director,                 
  Alaska Marine  Highway System, Department  of Transportation                 
  and Public Facilities;  Remond Henderson, Director, Division                 
  of  Administrative  Service,  Department  of  Community  and                 
  Regional Affairs.                                                            
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 55     An Act making appropriations for the operating and                 
            loan program  expenses of state government  and to                 
            capitalize funds;  and providing for  an effective                 
            date.                                                              
                                                                               
            CS HB 55 (FIN) was reported out of  Committee with                 
            a "do pass" recommendation.                                        
                                                                               
  MIKE   GREANY,   DIRECTOR,  LEGISLATIVE   FINANCE  DIVISION,                 
  indicated that Section #13  is the same as that  proposed by                 
  the Governor.  The Committee adopted Section #13.                            
                                                                               
  Mr. Greany referenced Section #20  which had previously been                 
  held open.  He  noted the language addressing  the surcharge                 
  had been incorporated.  The Committee adopted Section #20.                   
                                                                               
  Mr.  Greany  noted Section  #21  resulted from  a discussion                 
  between the 470  funds and their relation  to the Mitigation                 
  Account.                                                                     
                                                                               
       Section (a) indicates money from the Mitigation Account                 
       appropriated to the 470 fund.                                           
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
       Section (b) justifies the amount from that account made                 
       to the Storage Tank Assistance Fund.                                    
                                                                               
       Section (c) appropriates $100 thousand dollars for  oil                 
       spill evaluation in the Yukon-Koyukuk school  district.                 
                                                                               
                                                                               
  Representative Therriault  asked why  the ferry  expenditure                 
  was  not  included in  Section  #21.    Mr. Greany  replied,                 
  Section #22 (b)  indicates the $7.5  million dollars to  the                 
  Vessel Replacement Fund  for the oil ferry  originating from                 
  the 470  fund.   Representative Hanley  understood that  all                 
  appropriations originated from the Mitigation Account.                       
                                                                               
  Representative Hanley  recommended adding a new Section (d).                 
  Mr. Greany clarified  that Section  #22 (b)  was moved  into                 
  Section #21 and  that the funding  source for the oil  ferry                 
  would be the Mitigation Account.                                             
                                                                               
  Representative  Martin  MOVED  to  change  the  language  in                 
  Section  #22  (b),  Page  5,  Line  10,   by  deleting  "the                 
  refurbishment or" and  also to  delete the "s"  on the  word                 
  "vessels".                                                                   
                                                                               
  JIM AYERS,  SYSTEMS DIRECTOR, ALASKA  MARINE HIGHWAY SYSTEM,                 
  DEPARTMENT OF  TRANSPORTATION AND PUBLIC  FACILITIES, stated                 
  AMHS would not object to the recommendation.                                 
                                                                               
  Representative Brown MOVED  to make  the verbiage match  the                 
  language in the sentence, Page  5, Line 10, deleting  "have"                 
  and  inserting  "has".   There  being NO  OBJECTION,  it was                 
  amended.  There being NO OBJECTION  to the amendment, it was                 
  adopted.                                                                     
                                                                               
  Co-Chair  MacLean  asked for  further  clarification  of the                 
  amount  requested for total ferry system funding.  Mr. Ayers                 
  stated  that  the total  cost  of  the vessel  would  be $85                 
  million dollars.   Mr. Ayers understood the  State's portion                 
  of funding would  be $15  million dollars.   He presented  a                 
  chart indicating the distribution:                                           
                                                                               
             .5  FY 92 (direct)                                                
            7.5  FY 93 VRF                                                     
            7.0  FY 94 VRF                                                     
                                                                               
           15.0  Total "470" Funds                                             
                                                                               
  Co-Chair MacLean MOVED  to amend  Page 5, Line  8 to  insert                 
  "$7,000,000" million dollars and delete "$7,500,00".                         
                                                                               
  Mr. Ayers  reiterated that the  total estimated cost  of the                 
  vessel  would  be  $85  million  dollars, a  combination  of                 
                                                                               
                                6                                              
                                                                               
                                                                               
  federal and state funds.                                                     
                                                                               
                                                                               
            $60 Federal FY 94                                                  
            $ 5 Match                                                          
            $15 470 Fund                                                       
            $ 5 other fund                                                     
                                                                               
            $85 million dollars total funding strategy                         
                                                                               
  There being NO OBJECTION to the motion, it was so ordered.                   
                                                                               
  Representative Brown MOVED to delete on Page 4, Line 29, the                 
  language "the  following projects" and  insert "contaminated                 
  site  assessment";  Page  4,  Line   31  delete  "oil  spill                 
  evaluation for"; Page  5, LIne  2 delete "contaminated  site                 
  assessment".  There being NO OBJECTION, it was incorporated.                 
                                                                               
                                                                               
  Representative  Brown  pointed out  that  Section 23  is not                 
  reflected  in the new  Section 35.   Co-Chair MacLean stated                 
  the amount was not changed.                                                  
                                                                               
                   ________________________________                            
                                                                               
                                                                               
  Co-Chair Larson referenced Attachment #1, the Formula Funded                 
  Programs, Senior Citizens Tax Relief.                                        
                                                                               
  REMOND  HENDERSON,  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF  COMMUNITY  AND REGIONAL  AFFAIRS,                 
  explained that if a zero appropriation was funded for the FY                 
  94 budget, it would affect the municipalities.  In the past,                 
  the  municipalities  have been  funded  at a  twenty percent                 
  level.  FY 94 budget would fund them at a zero percent level                 
  leaving  the municipalities  responsible  for the  program's                 
  full coverage.   The municipalities would  be left with  the                 
  $2.8 million dollars fee.                                                    
                                                                               
  He  added,  the amount  funded  in  FY 93  was  $2.8 million                 
  dollars.    The  Renters Rebate  amounted  to  $820 thousand                 
  dollars.  Co-Chair Larson MOVED to add $2 million dollars to                 
  the Senior Citizens  Tax Relief Fund.   Representative Brown                 
  MOVED  to  amend   that  amount   to  $3  million   dollars.                 
  Representative Parnell OBJECTED.                                             
                                                                               
  A roll call was taken on the MOTION to amend.                                
                                                                               
       IN FAVOR:      Hoffman, Navarre, Brown, Grussendorf.                    
                                                                               
       OPPOSED:       Martin,  Parnell,   Therriault,  Foster,                 
                      Hanley, Larson, MacLean.                                 
                                                                               
                                7                                              
                                                                               
                                                                               
  The MOTION FAILED, (4-7).                                                    
                                                                               
  A roll  call was  taken  on the  MOTION  to add  $2  million                 
  dollars.  Representative Parnell OBJECTED.                                   
                                                                               
       IN FAVOR:      Martin,    Navarre,    Brown,    Foster,                 
                      Grussendorf,  Hanley, Hoffman,  MacLean,                 
                      Larson.                                                  
                                                                               
       OPPOSED:       Parnell, Therriault.                                     
                                                                               
  The MOTION PASSED, (9-2).                                                    
                                                                               
  Co-Chair  MacLean  MOVED to  report CS  HB  55 (FIN)  out of                 
  Committee with individual  recommendations.   Representative                 
  Hoffman noted that  the title  would need to  be changed  to                 
  include the formula  funded programs.   Mr. Greany  replied,                 
  the language  as drafted  would include  loan expansion  and                 
  capitalization of funds.  Representative Navarre OBJECTED to                 
  moving the bill from Committee.                                              
                                                                               
  (Tape Change, HFC 93-90, Side 2).                                            
                                                                               
  Representative  Navarre  noted his  disappointment  with the                 
  lack  of  cooperation  between  the  majority  and  minority                 
  members in  the House  Finance Committee  during the  budget                 
  discussion.  He  recommended laying  ground rules on  policy                 
  and  budget caps and  asked to  be included  as part  of the                 
  process.                                                                     
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell,  Therriault,  Foster,   Hanley,                 
                      Martin, Larson, MacLean.                                 
                                                                               
       OPPOSED:       Navarre, Brown, Grussendorf, Hoffman.                    
                                                                               
  The MOTION PASSED, (7-4).                                                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:30 P.M.                                           
                                                                               
                                                                               
                                8                                              

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