Legislature(1995 - 1996)
02/15/1996 01:41 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 15, 1996
1:41 P.M.
TAPE HFC 96-38, Side 1, #000 - end.
TAPE HFC 96-38, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:41 p.m.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
Representatives Brown and Mulder were absent from the
meeting.
ALSO PRESENT
Representative Gene Kubina; Joe Perkins, Commissioner,
Department of Transportation and Public Facilities; Nancy
Slagle, Director, Division of Budget Review, Office of the
Management and Budget, Office of the Governor; Remond
Henderson, Director, Division of Administrative Service,
Department of Community and Regional Affairs; Sharon Barton,
Director, Division of Administrative Services, Department of
Administration.
SUMMARY
HB 361 An Act relating to municipal capital project
matching grants for a municipality organized under
federal law as an Indian reserve; and providing
for an effective date.
HB 361 was reported out of Committee with a "do
pass" recommendation and with two zero fiscal
notes; one by the Department of Community and
Regional Affairs, dated 2/9/96; and one by the
Department of Administration, dated 1/19/96.
HB 468 An Act making supplemental appropriations for the
expenses of state government and making and
amending appropriations; ratifying certain state
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expenditures; and providing for an effective date.
HB 468 was HELD in Committee for further
discussion.
HOUSE BILL NO. 468
"An Act making supplemental appropriations for the
expenses of state government and making and amending
appropriations; ratifying certain state expenditures;
and providing for an effective date."
JOE PERKINS, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES testified in regards to Section 4(a),
highway and bridge repair costs related to Southcentral
flood disaster. He gave a brief history of the condition of
the Copper River Bridge. It was built in 1910. The bridge
has achieved recognition as the biggest and most complicated
engineering structure in the state of Alaska. The bridge
was damaged in 1964 by the earthquake. One span fell into
the river. The bridge was partially repaired in 1968. The
damaged pier is on the far left hand side. He discussed
repairs made to the bridge. He observed that the bridge was
further damaged in the fall of 1995. One pilot was
destroyed, possibly by an iceberg. The bridge settled back
on the pier. It is cracked and leaning at a 15 percent
angle. The bridge is in danger of falling into the river.
A national group of experts on bridges compiled a report on
what should be done to stabilize the bridge. The report
predicted that if the damaged pier fails the span will
probably collapse and telescope the bridge into the river.
If the bridge goes into the river it might be impossible to
remove it. The bridge would probably block the river
sufficiently to divert the river. If the river is diverted
visitor facilities at Child's Glacier would be flooded along
with several miles of the Copper River Highway.
Commissioner Perkins observed that federal funds will pay
for the first stage of repairs. The first stage is the
replacement of the bent pile. The State will receive $2.2
million dollars in federal disaster funds. The State
matching funds of $400.0 thousand dollars will be required
to capture the federal funds. The bridge repairs will also
help stabilize the river by removing obstructions.
Commissioner Perkins emphasized the importance of the
bridge. He stressed that the loss of the bridge would
probably preclude road access to Cordova. It would cost
between $20 and $40 million dollars to replace the bridge.
Recreation activities on the other side of the bridge are
increasing. He noted that reconstruction would start in
April if funds are approved. The initial repair would make
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the bridge safe and stable.
In response to a question by Representative Therriault,
Commissioner Perkins noted that the other two piers and the
base of the bridge is in excellent condition. A hanging
bridge will be constructed across the down span to provide
access to the other side.
In response to a question by Co-Chair Hanley, Commissioner
Perkins clarified that there are no plans to upgrade the
bridge beyond stabilization. He noted that it would cost
another $2.0 million dollars to lift the span and replace
the lost steel. An additional $1.0 million dollars could be
spent to reinforce the other existing piers.
Co-Chair Hanley stated that he did not want to authorize
funds beyond what is necessary to stabilize the bridge so
that it will not be washed out in another flood or minor
earthquake.
In response to a question by Co-Chair Hanley, Commissioner
Perkins noted that the study cost $10.0 thousand dollars.
He observed that time was donated.
In response to a question by Representative Therriault,
Commissioner Perkins stated that Copper River Highway
Settlement money cannot be diverted to the bridge repair.
REPRESENTATIVE GENE KUBINA testified in support of the
appropriation. He stressed the tourism value associated
with the area. Co-Chair Foster expressed support for the
appropriation.
HOUSE BILL NO. 361
"An Act relating to municipal capital project matching
grants for a municipality organized under federal law
as an Indian reserve; and providing for an effective
date."
REPRESENTATIVE JERRY Mackie, sponsor HB 361, testified in
support of HB 361. He noted that the legislation was
introduced at the request of the Metlakatla Indian
Community. He explained that it was not clearly defined
that Metlakatla which was established as an Indian Reserve
under law would qualify for the Municipal Assistance
Matching Grant Program. He noted that the Community
received Municipal Assistance Matching Grants until FY 95.
He stressed that it was the intent of the Program that
Metlakatla would qualify. He observed that HB 361
establishes in statute that Metlakatla qualifies as an
organized municipality for a municipal assistance matching
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grant under AS 37.06. The legislation would clarify that
Metlakatla does not qualify for a grant as an unincorporated
community. He observed that they received unincorporated
grants in prior years.
Representative Mackie provided members with a letter from
the Department of Community and Regional Affairs, dated
1/18/94 detailing grants received by Metlakatla (Attachment
1).
Representative Mackie maintained that the legislation would
not open the program for other tribes to receive municipal
assistance matching grants. He referred to page 1, lines 7
& 8. He stated that this language would limit qualification
to Metlakatla. He pointed out similarities to other
communities of corresponding size.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
stated that the legislation will provide authorization for
previous grants.
Representative Mackie noted that Metlakatla will not receive
a grant in FY 97 unless the legislation is passed. He
stressed that Metlakatla has utilized previous grants. He
pointed out that Metlakatla did not receive an organized
municipal grant for FY 96.
Representative Parnell asked if Metlakatla receives federal
funds based on being an unincorporated city. Representative
Mackie stated that Metlakatla receives PL874 Funds as do
other communities with Native populations. He stated that
Metlakatla received a grant for $60.0 thousand dollars in FY
94 for a fire hall and $58.0 thousand dollars in FY 95 for a
police department project. Their FY 96 organized municipal
grant for $59.0 thousand dollars was not approved.
Representative Navarre MOVED to report HB 361 out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HB 361 was reported out of Committee with a "do pass"
recommendation and with two zero fiscal notes; one by the
Department of Community and Regional Affairs, dated 2/9/96;
and one by the Department of Administration, dated 1/19/96.
HOUSE BILL NO. 468
"An Act making supplemental appropriations for the
expenses of state government and making and amending
appropriations; ratifying certain state expenditures;
and providing for an effective date."
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NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR continued her
review of HB 468 from 2/14/96. She provided members with a
spreadsheet of HB 468 (see Attachment 1, 2/14/96).
OFFICE OF THE GOVERNOR
Ms. Slagle reviewed Section 16, $1.5 million dollars to the
Office of Management and Budget for a small reserve to allow
immediate response to anticipated FY 96 & FY 97 disasters
and fires. She maintained that there is a potential that
funds would not be available to respond to a small disaster.
She stressed that appropriations from the Disaster Relief
Fund have to go through the disaster relief process. She
assured the Committee that funds spent by the Office of the
Governor for disaster relief will be scrutinized by the
Office of Management and Budget. She added that the Office
of Management and Budget would provide the Legislature with
status reports on any expenditures.
Co-Chair Hanley asked if the Disaster Relief Fund is in the
Office of the Governor. Ms. Slagle observed that the
Department of Military and Veterans Affairs has control of
the Disaster Relief Fund. He questioned why the request
would place the appropriation in the Office of Management
and Budget. Ms. Slagle replied that it was placed in the
Office of Management and Budget to allow funding for small
fire suppression activity. She suggested that a portion of
the funds could be placed in the Department of Military and
Veterans Affairs Disaster Relief Fund.
Co-Chair Hanley observed that the Disaster Relief Fund
allows appropriations for fire suppression. He asked for
clarification as to why the appropriation should be made to
the Office of the Governor. Ms. Slagle spoke in support of
the placement under the Office of the Governor. She
stressed that there may be conflicting priorities.
Co-Chair Hanley pointed out that appropriations must follow
guidelines under the Disaster Relief Fund. He spoke in
support of making the appropriation to the Disaster Relief
Fund.
Representative Martin noted that the Disaster Relief Fund
was placed under the Department of Military and Veterans
Affairs because it was deemed that the Department was best
able to act immediately. He noted that the Department of
Military and Veterans Affairs supervises the National Guard.
Co-Chair Hanley questioned what emergencies were not funded
by the Department of Military and Veterans Affairs that the
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Governor felt should have been funded. He summarized that
the Governor does not think there is enough flexibility in
the Disaster Relief Fund.
Ms. Slagle stressed that there needs to be a mechanism to
take care of disasters. She emphasized that the Office of
the Governor has cleared previous appropriations. She
observed that it would be difficult to find $150.0 thousand
dollars to cover a small disaster from the remaining
appropriations. She noted that a portion of the request
would cover a past disaster.
(Tape Change, HFC 96-38, Side 2)
ALL DEPARTMENTS
Ms. Slagle reviewed Sections 17(a), Miscellaneous Claims -
general funds & Section 17(b), Miscellaneous Claims - other
funds. She noted that statutes require that bills, invoices
and obligations of the State that are over two years old
must be approved by the Legislature.
Ms. Slagle reviewed Section 18, Prior Year Ratification.
She noted that this section straightens accounting records.
She stated that the Division of Audit and Management
Services has reviewed the items in this section. She
stressed that many of the problems stem from the conversion
of the accounting system in 1985. She emphasized that the
only way these old records can be closed out is through
ratification by the Legislature. She assured the Committee
that problems are being resolved administratively when
possible.
DEPARTMENT OF PUBLIC SAFETY
Ms. Slagle added that the Administration has requested a new
section be included in HB 468. She explained that the
Department of Public Safety's FY 92, 93 and 94 capital
requests for driver's manuals, license plates and equipment
were combined and the amount reduced. In FY 95 the language
identifying equipment as part of the capital request was
inadvertently deleted. The Administration requested that
the FY 95 capital appropriation be amended to include
"equipment". The FY 96 capital request did include
equipment. She explained that the equipment is specifically
related to the issuance of driver's licenses.
Co-Chair Hanley reviewed HB 468. He identified sections
that would not be included in the proposed committee
substitute. He noted that his office would prepare a
spreadsheet comparing the proposed committee substitute to
the original legislation. (See Attachment 2).
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ADJOURNMENT
The meeting adjourned at 2:55 p.m.
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