Legislature(1993 - 1994)
04/21/1993 01:30 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 21, 1993
1:30 P.M.
TAPE HFC 93 - 114, Side 2, #000 - end.
TAPE HFC 93 - 115, Side 1, #000 - end.
TAPE HFC 93 - 115, Side 2, #000 - #457.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:30 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
Ken Erickson, Aid to Senator Pearce; Riley Snell, AIDEA,
Anchorage, Alaska; John Olson, AIDEA, Anchorage, Alaska;
Cheryl Frasca, Director, Division of Budget Review, Office
of Management and Budget, Office of the Governor; Ron Lind,
Plans, Programs and Budget Director, Administrative
Services, Department of Transportation and Public
Facilities; Newton Chase, Facilities Section Chief, Division
of Administrative Services, Department of Health and Social
Services; David Teal, Director of Administrative Services,
Department of Labor; Guy Bell, Director of Administrative
Services, Department of Commerce and Economic Development;
C.E. Swackhammer, Deputy Commissioner, Department of Public
Safety; Arthur Snowden, III, Administrative Director, Alaska
Court System.
SUMMARY INFORMATION
SB 171 An Act relating to the contracting and financing
authority of the Alaska Industrial Development and
Export Authority, giving approval of the issuance
of the authority's revenue bonds, and delaying the
termination date of the authority's business
assistance program; and providing for an effective
date.
CS SB 171 (FIN) was held in Committee for further
consideration.
1
HB 60 An Act making appropriations for capital projects;
and providing for an effective date.
HB 60 was held in Committee for further
consideration.
SENATE BILL 171
"An Act relating to the contracting and financing
authority of the Alaska Industrial Development and
Export Authority, giving approval of the issuance of
the authority's revenue bonds, and delaying the
termination date of the authority's business assistance
program; and providing for an effective date."
KEN ERICKSON, AID TO SENATOR PEARCE, offered to answer
questions of the Committee.
RILEY SNELL, AIDEA, ANCHORAGE, ALASKA, stated that if SB 171
was enacted, it would achieve four things:
Section I of the bill gives legislative approval to the
Alaska Industrial Development and Export Authority
(AIDEA) to authorize the issuance of revenue bonds up
to $40 million dollars and to finance the acquisition,
design, and construction of public use aircraft fueling
facilities located at the Anchorage International
Airport.
Section II of the bill gives legislative approval to
AIDEA to authorize the issuance of bonds up to $50
million dollars to finance the acquisition, design and
construction of a port facility located at Point
MacKenzie in order to further the development and
operation of a direct iron ore processing facility.
Section III of the bill gives legislative approval to
AIDEA to authorize the issuance of bonds up to $50
million dollars to finance the acquisition, design and
construction of a seafood processing, storage, and
loading project located in Anchorage.
Section IV of the bill extends the sunset date of
AIDEA's Business Assistance Fund to July 1, 1996 from
the current sunset date of July 1, 1993.
Mr. Snell added that all the projects have pay-back
provisions during the time in which AIDEA uses their credit
to finance these projects. In return for the use of the
credit, AIDEA will receive full reimbursement of the cost of
the project plus an established interest percentage.
2
Co-Chair MacLean questioned if AIDEA revenue would be used
for the legislation. Mr. Snell explained that AIDEA bonds
are recognized by rating agencies to be revenue bonds
generated by the Authority. Often, these bonds are called
general obligation bonds and will be marketable.
Co-Chair MacLean asked if these same requests were before
the House Finance Committee last year. Mr. Snell noted the
legislation did exist last year, although adjournment
occurred before it was addressed. He added, there are
statutory safeguards to determine if the projects are
feasible.
1. Projects must be financially and economically
feasible.
2. Participants must have the financial strength to
pay back the debt.
3. AIDEA warrants the overall commitment to undertake
the project.
4. The Authority is required to undertake an
extensive credit analysis of the participant and
provide a market analysis.
Co-Chair MacLean asked why rural areas rarely receive funds
from AIDEA. Mr. Snell pointed out that the Authority has
had projects scattered across the State, Red Dog being the
largest project located in the North West Arctic Borough.
He added, AIDEA is sensitive to the capital needs of rural
Alaska and is committed to doing a better out-reach job in
rural area.
Representative Martin asked why the state owned airports are
bonded rather than owned. Mr. Snell explained the
structure. AIDEA can issue tax exempt debt. The market has
not witnessed current interest rates for many years, which
creates a favorable inner trade environment to use the debt
capacity. Governmental ownership is important.
Representative Brown referenced the MIDREX project and asked
the risks AIDEA would assume in underwriting the project.
Mr. Snell stated that MIDREX would be obligated to pay their
debt payments through their parent company. He added, if
the financial strength of an investment is of concern, a
parent corporation guarantee is necessary to underwrite the
issuance. Currently, the proposed plan is promised to be
compatible with land use planning. Mr. Snell reiterated
that AIDEA is cooperatively working with the Mat-Su Borough
in order to complete the necessary analysis.
3
Co-Chair MacLean recommended that the Anchorage airport
improvements be handled through the International Airport
Revolving Loan Fund. Mr. Snell noted complications exist
with the current debt obligation on the tank farm which was
issued by AIDEA.
Representative Brown questioned the developer's motivation
to bring ore from South America to Alaska. Mr. Snell stated
there is a substantial need for natural gas and a
concentrate will be produced through the steel mills. Cook
Inlett represents a captive market for natural gas. There
is a substantial market for the developer. Extensive
surveys looking for such a product have been completed.
Representative Brown questioned the status of the seafood
component. Mr. Snell noted that the developer has signed
the first supply contract and is in final negotiations with
potential customers. Progress has been made to obtain
equity requirements necessary.
Representative Brown asked if the project would compete with
other Alaska facilities in Dutch Harbor. Mr. Snell
commented that the component will compliment the current
fishing industry, although there is no information on how
the fish tax allocation will occur. Harold Benedict is the
principle administrator of the Alaska Seafood Center. He
has not had a lot of experience in the industry but has
hired professional people to help assemble the project.
Representative Brown questioned the long term capacity of
AIDEA. Mr. Snell noted that AIDEA should have substantial
remaining capacity with the proposed legislation and offered
to provide the Committee with that information.
Representative Brown understood that AIDEA's capacity was
running out. Representative Brown asked for a list of other
potential competitors for the AIDEA revenue.
Representative Hoffman stated that the Rural Development
Initiative Fund (RDIF) does not adequately address the needs
of rural Alaska. He asked that more funds be included in
that fund so that rural Alaska might receive more economic
development incentive. Mr. Snell stated that RDIF has
statutory underties to the Department of Community and
Regional Affairs (DCRA). In order for AIDEA to participate
with DCRA, they are required to use the Business Assistance
Program. The $500 thousand dollar initial investment
allowed AIDEA to leverage a total loan value of $2.5 million
dollars.
Representative Hoffman and Representative Brown asked for
more time to consider the proposed legislation in order to
offer amendments to further assist the RDIF request of $5
million dollars.
4
(Tape Change HFC 93-115, Side 1).
Co-Chair Larson noted that SB 171 would be HELD in Committee
for further consideration.
HOUSE BILL 60
"An Act making appropriations for capital projects; and
providing for an effective date."
Co-Chair MacLean provided the Committee with a copy of work
draft, CS HB 60 (FIN), #8-GH1039\E dated 4/21/93. She noted
her intent to review the cut sheet which lists the
reductions to the Governor's amended budget.
The legislation totals:
$18,863.9 Total general funds which include mental
health trust funds, general fund match
and program receipts.
$496,660.3 Federal and other funds.
$677,524.2 Total for all funds in the bill.
The Governor's budget as amended was $267,496.4 million
dollars. Schools have been removed and will be funded
through the House Finance Committee substitute for HB 63.
The ISTEA - Department of Transportation and Public
Facilities has abandoned the Borough Transfer Program for
the current fiscal year. The Commissioner established that
some boroughs are not capable to assume the
responsibilities.
She added, the Village Safe Water program will receive over
$26.4 million dollars for thirty-nine needed projects. An
additional $16.1 million dollars will be provided for water
and sewer projects and will qualify for the 50% Municipal
Match Program.
The proposed budget adds $4.2 million dollars of designated
grant money based on Mental Health Board lists to community
based services and will continue the Department of Health
and Social Services competitive grant program.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, offered to
review the work draft for the Committee. She added, agency
reallocations are not yet reflected in the proposed draft.
DEPARTMENT OF ADMINISTRATION
5
Representative Grussendorf referenced the Pioneers' Homes
Repair and Renovation component and asked for further
information. Co-Chair MacLean replied FY 93 determination
figures were being used.
Representative Therriault asked if the full allocation would
be distributed to all the Pioneer Homes. Ms. Frasca advised
the funding would cover all costs for all districts.
DEPARTMENT OF REVENUE
DEPARTMENT OF EDUCATION
Co-Chair MacLean stated that all school construction grant
projects were deleted and added to the school bill.
Representative Brown noted funding for Intelligent Dialing
System and Data Processing Enhancement and asked if they
were priorities for the Administration. Ms. Frasca
acknowledged they were. Ms. Frasca explained that the
Administration is requesting increased staff to help update
records.
Representative Hoffman questioned the Borrower Records
Imaging component for $50 thousand dollars. Ms. Frasca
stated the funds would allow imagining records for the
Student Loan Corporation. This is a pilot project provided
by the Department of Administration to standardize all
projects.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Brown asked if federal funds were included
for the General Computer\Communications. Ms. Frasca said it
included general funds and mental health funds. There is an
additional computer system included which is federally
funded. Co-Chair MacLean stated that the General
Computer\Communications had been reduced to the bare
essential to match federal dollars. Ms. Frasca said the
package would include upgrades to the existing computer
system and the purchase of additional computers.
NEWTON CHASE, FACILITIES SECTION CHIEF, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, noted the funds would include a general upgrade to
the hardware computer systems and the designs used.
DEPARTMENT OF LABOR
DAVID TEAL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
LABOR, addressed the Workers' Compensation Records component
6
stating that $300 thousand dollars would be used for
imaging. Co-Chair MacLean asked why the Department was
requesting an additional $83 thousand dollars for Imaging
Consulting Services. Mr. Teal stated the allocation would
complete a contract with Texas Instruments for imaging
consulting services.
Representative Parnell asked if public access to records
would be affected. Mr. Teal replied they would be
improved. Each record would not be xeroxed, but instead
would be available through imaging.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT, responded to
Representative Martin's question regarding the ARDORS. He
pointed out a fiscal note exists which the House Finance
Committee approved for the amount of $250 thousand dollars
which would be part of the operating budget. The $97
thousand dollar allocation would be for a project to target
economic development in the regions.
DEPARTMENT OF MILITARY AND VETERAN AFFAIRS
Representative Brown noted that the State Trooper detachment
was not included in the component. Co-Chair MacLean pointed
out, trooper move-outs were in excess of budget projections.
DEPARTMENT OF NATURAL RESOURCES
Representative Brown asked if general fund or 470 fund
allocation dollars had been used for the Contaminated
Cleanup/Assessment. Ms. Frasca replied, 470 funds.
Co-Chair MacLean noted that the Parks Stations Improvements
component had been merged into the Repair Renovation Park
facility component.
DEPARTMENT OF FISH AND GAME
DEPARTMENT OF PUBLIC SAFETY
Representative Parnell noted his concern with the reduction
to the Aircraft Equipment/Overhaul/Repairs component. Co-
Chair MacLean noted the House recommended the cut.
C.E. SWACKHAMMER, DEPUTY DIRECTOR, DEPARTMENT OF PUBLIC
SAFETY, stated the reduction will affect the priority list
at which time specific vessels will not be repaired.
Representative Parnell asked if the Vigilant would be
affected by the cut. Mr. Swackhammer replied all cuts would
7
be for the fleet size up to the 65' class.
(Tape Change, HFC 93-115, Side 2).
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
RON LIND, PLANS, PROGRAMS BUDGET DIRECTOR, ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, stated the length of service varies for the
class of equipment. Some of the vehicles are up to eight
years old. Two percent of federal money ($4 million
dollars) was spent on planning and research activities.
Representative Martin asked if $5 million dollars would be
sufficient for the American Disabilities Act general funds.
Mr. Lind noted, before the State is finished with this
requirement, the State will be spending $40 - $50 million
dollars. A good faith demonstration should be made to
address the highest priority.
Representative Navarre questioned the reduction to the Kenai
Spur road. Mr. Lind noted this was an error on the part of
DOTPF. The initial review showed that a previous
appropriation of federal money was available for that road.
The scope or work will not be changed by the reduction.
Representative Navarre pointed out that the project was
scheduled for FY 89 and to date there has only the surveying
has been completed.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
DEPARTMENT OF CORRECTIONS
Representative Parnell questioned the deferred maintenance
in the Department of Corrections budget. Co-Chair MacLean
replied it was merged with the Statewide Renewal and
Replacement Fund.
UNIVERSITY OF ALASKA
Co-Chair MacLean pointed out that the School Construction
Fund addresses deferred maintenance. These concerns will be
removed from the capital budget.
Representative Navarre asked why the Contaminated Site
Assess/Cleanup component was removed. Co-Chair MacLean
emphasized in order to cut the capital budget.
Representative Parnell shared Representative Navarre's
concern. Co-Chair MacLean suggested that an amendment be
proposed to address their concern.
8
ALASKA COURT SYSTEM
Representative Parnell asked what would be eliminated with
the $2.4 million dollar reduction to the Alaska Court
System. Co-Chair MacLean stated, the agency had overhead
administrative costs.
Representative Navarre asked why the Court Technology
Enhancements component to upgrade the computer system was
reduced. He emphasized the request was low. Ms. Frasca
noted that last session the Legislature approved last
session $400 thousand dollars for Court System computer
enhancement. She added none of the data processing systems
in the State are fully funded. Representative Navarre
argued that the Court System is further behind than other
governmental agencies and he recommended fully funding it.
Representative Parnell agreed with Representative Navarre.
ART SNOWDEN, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEMS,
stated that last year the Governor requested $880 thousand
dollars for court system technology. At that point, there
had been no technology awarded to the Courts for the
previous ten years. The Governor agreed to provide half the
allocation last year and promised the remaining amount this
year.
Mr. Snowden explained the money would be used to provide
computers for rural courts. There are fifty-six court
locations which need to tie into the master court system to
make necessary information available.
LEGISLATURE
HB 60 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:25 P.M.
HOUSE FINANCE COMMITTEE
APRIL 21, 1993
1:30 P.M.
TAPE HFC 93 - 114, Side 2, #000 - end.
TAPE HFC 93 - 115, Side 1, #000 - end.
TAPE HFC 93 - 115, Side 2, #000 - #457.
CALL TO ORDER
9
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:30 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
Ken Erickson, Aid to Senator Pearce; Riley Snell, AIDEA,
Anchorage, Alaska; John Olson, AIDEA, Anchorage, Alaska;
Cheryl Frasca, Director, Division of Budget Review, Office
of Management and Budget, Office of the Governor; Ron Lind,
Plans, Programs and Budget Director, Administrative
Services, Department of Transportation and Public
Facilities; Newton Chase, Facilities Section Chief, Division
of Administrative Services, Department of Health and Social
Services; David Teal, Director of Administrative Services,
Department of Labor; Guy Bell, Director of Administrative
Services, Department of Commerce and Economic Development;
C.E. Swackhammer, Deputy Commissioner, Department of Public
Safety; Arthur Snowden, III, Administrative Director, Alaska
Court System.
SUMMARY INFORMATION
SB 171 An Act relating to the contracting and financing
authority of the Alaska Industrial Development and
Export Authority, giving approval of the issuance
of the authority's revenue bonds, and delaying the
termination date of the authority's business
assistance program; and providing for an effective
date.
CS SB 171 (FIN) was held in Committee for further
consideration.
HB 60 An Act making appropriations for capital projects;
and providing for an effective date.
HB 60 was held in Committee for further
consideration.
SENATE BILL 171
"An Act relating to the contracting and financing
10
authority of the Alaska Industrial Development and
Export Authority, giving approval of the issuance of
the authority's revenue bonds, and delaying the
termination date of the authority's business assistance
program; and providing for an effective date."
KEN ERICKSON, AID TO SENATOR PEARCE, offered to answer
questions of the Committee.
RILEY SNELL, AIDEA, ANCHORAGE, ALASKA, stated that if SB 171
was enacted, it would achieve four things:
Section I of the bill gives legislative approval to the
Alaska Industrial Development and Export Authority
(AIDEA) to authorize the issuance of revenue bonds up
to $40 million dollars and to finance the acquisition,
design, and construction of public use aircraft fueling
facilities located at the Anchorage International
Airport.
Section II of the bill gives legislative approval to
AIDEA to authorize the issuance of bonds up to $50
million dollars to finance the acquisition, design and
construction of a port facility located at Point
MacKenzie in order to further the development and
operation of a direct iron ore processing facility.
Section III of the bill gives legislative approval to
AIDEA to authorize the issuance of bonds up to $50
million dollars to finance the acquisition, design and
construction of a seafood processing, storage, and
loading project located in Anchorage.
Section IV of the bill extends the sunset date of
AIDEA's Business Assistance Fund to July 1, 1996 from
the current sunset date of July 1, 1993.
Mr. Snell added that all the projects have pay-back
provisions during the time in which AIDEA uses their credit
to finance these projects. In return for the use of the
credit, AIDEA will receive full reimbursement of the cost of
the project plus an established interest percentage.
Co-Chair MacLean questioned if AIDEA revenue would be used
for the legislation. Mr. Snell explained that AIDEA bonds
are recognized by rating agencies to be revenue bonds
generated by the Authority. Often, these bonds are called
general obligation bonds and will be marketable.
Co-Chair MacLean asked if these same requests were before
the House Finance Committee last year. Mr. Snell noted the
legislation did exist last year, although adjournment
11
occurred before it was addressed. He added, there are
statutory safeguards to determine if the projects are
feasible.
1. Projects must be financially and economically
feasible.
2. Participants must have the financial strength to
pay back the debt.
3. AIDEA warrants the overall commitment to undertake
the project.
4. The Authority is required to undertake an
extensive credit analysis of the participant and
provide a market analysis.
Co-Chair MacLean asked why rural areas rarely receive funds
from AIDEA. Mr. Snell pointed out that the Authority has
had projects scattered across the State, Red Dog being the
largest project located in the North West Arctic Borough.
He added, AIDEA is sensitive to the capital needs of rural
Alaska and is committed to doing a better out-reach job in
rural area.
Representative Martin asked why the state owned airports are
bonded rather than owned. Mr. Snell explained the
structure. AIDEA can issue tax exempt debt. The market has
not witnessed current interest rates for many years, which
creates a favorable inner trade environment to use the debt
capacity. Governmental ownership is important.
Representative Brown referenced the MIDREX project and asked
the risks AIDEA would assume in underwriting the project.
Mr. Snell stated that MIDREX would be obligated to pay their
debt payments through their parent company. He added, if
the financial strength of an investment is of concern, a
parent corporation guarantee is necessary to underwrite the
issuance. Currently, the proposed plan is promised to be
compatible with land use planning. Mr. Snell reiterated
that AIDEA is cooperatively working with the Mat-Su Borough
in order to complete the necessary analysis.
Co-Chair MacLean recommended that the Anchorage airport
improvements be handled through the International Airport
Revolving Loan Fund. Mr. Snell noted complications exist
with the current debt obligation on the tank farm which was
issued by AIDEA.
Representative Brown questioned the developer's motivation
to bring ore from South America to Alaska. Mr. Snell stated
there is a substantial need for natural gas and a
concentrate will be produced through the steel mills. Cook
12
Inlett represents a captive market for natural gas. There
is a substantial market for the developer. Extensive
surveys looking for such a product have been completed.
Representative Brown questioned the status of the seafood
component. Mr. Snell noted that the developer has signed
the first supply contract and is in final negotiations with
potential customers. Progress has been made to obtain
equity requirements necessary.
Representative Brown asked if the project would compete with
other Alaska facilities in Dutch Harbor. Mr. Snell
commented that the component will compliment the current
fishing industry, although there is no information on how
the fish tax allocation will occur. Harold Benedict is the
principle administrator of the Alaska Seafood Center. He
has not had a lot of experience in the industry but has
hired professional people to help assemble the project.
Representative Brown questioned the long term capacity of
AIDEA. Mr. Snell noted that AIDEA should have substantial
remaining capacity with the proposed legislation and offered
to provide the Committee with that information.
Representative Brown understood that AIDEA's capacity was
running out. Representative Brown asked for a list of other
potential competitors for the AIDEA revenue.
Representative Hoffman stated that the Rural Development
Initiative Fund (RDIF) does not adequately address the needs
of rural Alaska. He asked that more funds be included in
that fund so that rural Alaska might receive more economic
development incentive. Mr. Snell stated that RDIF has
statutory underties to the Department of Community and
Regional Affairs (DCRA). In order for AIDEA to participate
with DCRA, they are required to use the Business Assistance
Program. The $500 thousand dollar initial investment
allowed AIDEA to leverage a total loan value of $2.5 million
dollars.
Representative Hoffman and Representative Brown asked for
more time to consider the proposed legislation in order to
offer amendments to further assist the RDIF request of $5
million dollars.
(Tape Change HFC 93-115, Side 1).
Co-Chair Larson noted that SB 171 would be HELD in Committee
for further consideration.
HOUSE BILL 60
"An Act making appropriations for capital projects; and
providing for an effective date."
13
Co-Chair MacLean provided the Committee with a copy of work
draft, CS HB 60 (FIN), #8-GH1039\E dated 4/21/93. She noted
her intent to review the cut sheet which lists the
reductions to the Governor's amended budget.
The legislation totals:
$18,863.9 Total general funds which include mental
health trust funds, general fund match
and program receipts.
$496,660.3 Federal and other funds.
$677,524.2 Total for all funds in the bill.
The Governor's budget as amended was $267,496.4 million
dollars. Schools have been removed and will be funded
through the House Finance Committee substitute for HB 63.
The ISTEA - Department of Transportation and Public
Facilities has abandoned the Borough Transfer Program for
the current fiscal year. The Commissioner established that
some boroughs are not capable to assume the
responsibilities.
She added, the Village Safe Water program will receive over
$26.4 million dollars for thirty-nine needed projects. An
additional $16.1 million dollars will be provided for water
and sewer projects and will qualify for the 50% Municipal
Match Program.
The proposed budget adds $4.2 million dollars of designated
grant money based on Mental Health Board lists to community
based services and will continue the Department of Health
and Social Services competitive grant program.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, offered to
review the work draft for the Committee. She added, agency
reallocations are not yet reflected in the proposed draft.
DEPARTMENT OF ADMINISTRATION
Representative Grussendorf referenced the Pioneers' Homes
Repair and Renovation component and asked for further
information. Co-Chair MacLean replied FY 93 determination
figures were being used.
Representative Therriault asked if the full allocation would
be distributed to all the Pioneer Homes. Ms. Frasca advised
the funding would cover all costs for all districts.
14
DEPARTMENT OF REVENUE
DEPARTMENT OF EDUCATION
Co-Chair MacLean stated that all school construction grant
projects were deleted and added to the school bill.
Representative Brown noted funding for Intelligent Dialing
System and Data Processing Enhancement and asked if they
were priorities for the Administration. Ms. Frasca
acknowledged they were. Ms. Frasca explained that the
Administration is requesting increased staff to help update
records.
Representative Hoffman questioned the Borrower Records
Imaging component for $50 thousand dollars. Ms. Frasca
stated the funds would allow imagining records for the
Student Loan Corporation. This is a pilot project provided
by the Department of Administration to standardize all
projects.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Brown asked if federal funds were included
for the General Computer\Communications. Ms. Frasca said it
included general funds and mental health funds. There is an
additional computer system included which is federally
funded. Co-Chair MacLean stated that the General
Computer\Communications had been reduced to the bare
essential to match federal dollars. Ms. Frasca said the
package would include upgrades to the existing computer
system and the purchase of additional computers.
NEWTON CHASE, FACILITIES SECTION CHIEF, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, noted the funds would include a general upgrade to
the hardware computer systems and the designs used.
DEPARTMENT OF LABOR
DAVID TEAL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
LABOR, addressed the Workers' Compensation Records component
stating that $300 thousand dollars would be used for
imaging. Co-Chair MacLean asked why the Department was
requesting an additional $83 thousand dollars for Imaging
Consulting Services. Mr. Teal stated the allocation would
complete a contract with Texas Instruments for imaging
consulting services.
Representative Parnell asked if public access to records
would be affected. Mr. Teal replied they would be
improved. Each record would not be xeroxed, but instead
15
would be available through imaging.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT, responded to
Representative Martin's question regarding the ARDORS. He
pointed out a fiscal note exists which the House Finance
Committee approved for the amount of $250 thousand dollars
which would be part of the operating budget. The $97
thousand dollar allocation would be for a project to target
economic development in the regions.
DEPARTMENT OF MILITARY AND VETERAN AFFAIRS
Representative Brown noted that the State Trooper detachment
was not included in the component. Co-Chair MacLean pointed
out, trooper move-outs were in excess of budget projections.
DEPARTMENT OF NATURAL RESOURCES
Representative Brown asked if general fund or 470 fund
allocation dollars had been used for the Contaminated
Cleanup/Assessment. Ms. Frasca replied, 470 funds.
Co-Chair MacLean noted that the Parks Stations Improvements
component had been merged into the Repair Renovation Park
facility component.
DEPARTMENT OF FISH AND GAME
DEPARTMENT OF PUBLIC SAFETY
Representative Parnell noted his concern with the reduction
to the Aircraft Equipment/Overhaul/Repairs component. Co-
Chair MacLean noted the House recommended the cut.
C.E. SWACKHAMMER, DEPUTY DIRECTOR, DEPARTMENT OF PUBLIC
SAFETY, stated the reduction will affect the priority list
at which time specific vessels will not be repaired.
Representative Parnell asked if the Vigilant would be
affected by the cut. Mr. Swackhammer replied all cuts would
be for the fleet size up to the 65' class.
(Tape Change, HFC 93-115, Side 2).
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
RON LIND, PLANS, PROGRAMS BUDGET DIRECTOR, ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, stated the length of service varies for the
class of equipment. Some of the vehicles are up to eight
16
years old. Two percent of federal money ($4 million
dollars) was spent on planning and research activities.
Representative Martin asked if $5 million dollars would be
sufficient for the American Disabilities Act general funds.
Mr. Lind noted, before the State is finished with this
requirement, the State will be spending $40 - $50 million
dollars. A good faith demonstration should be made to
address the highest priority.
Representative Navarre questioned the reduction to the Kenai
Spur road. Mr. Lind noted this was an error on the part of
DOTPF. The initial review showed that a previous
appropriation of federal money was available for that road.
The scope or work will not be changed by the reduction.
Representative Navarre pointed out that the project was
scheduled for FY 89 and to date there has only the surveying
has been completed.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
DEPARTMENT OF CORRECTIONS
Representative Parnell questioned the deferred maintenance
in the Department of Corrections budget. Co-Chair MacLean
replied it was merged with the Statewide Renewal and
Replacement Fund.
UNIVERSITY OF ALASKA
Co-Chair MacLean pointed out that the School Construction
Fund addresses deferred maintenance. These concerns will be
removed from the capital budget.
Representative Navarre asked why the Contaminated Site
Assess/Cleanup component was removed. Co-Chair MacLean
emphasized in order to cut the capital budget.
Representative Parnell shared Representative Navarre's
concern. Co-Chair MacLean suggested that an amendment be
proposed to address their concern.
ALASKA COURT SYSTEM
Representative Parnell asked what would be eliminated with
the $2.4 million dollar reduction to the Alaska Court
System. Co-Chair MacLean stated, the agency had overhead
administrative costs.
Representative Navarre asked why the Court Technology
Enhancements component to upgrade the computer system was
17
reduced. He emphasized the request was low. Ms. Frasca
noted that last session the Legislature approved last
session $400 thousand dollars for Court System computer
enhancement. She added none of the data processing systems
in the State are fully funded. Representative Navarre
argued that the Court System is further behind than other
governmental agencies and he recommended fully funding it.
Representative Parnell agreed with Representative Navarre.
ART SNOWDEN, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEMS,
stated that last year the Governor requested $880 thousand
dollars for court system technology. At that point, there
had been no technology awarded to the Courts for the
previous ten years. The Governor agreed to provide half the
allocation last year and promised the remaining amount this
year.
Mr. Snowden explained the money would be used to provide
computers for rural courts. There are fifty-six court
locations which need to tie into the master court system to
make necessary information available.
LEGISLATURE
HB 60 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:25 P.M.
18
| Document Name | Date/Time | Subjects |
|---|