Legislature(1999 - 2000)

04/21/1999 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE FINANCE COMMITTEE                                                                                                         
April 21, 1999                                                                                                                  
                       1:40 P.M.                                                                                                
                                                                                                                                
TAPE HFC 99 - 93, Side 1                                                                                                        
TAPE HFC 99 - 93, Side 2                                                                                                        
TAPE HFC 99 - 94, Side 1                                                                                                        
TAPE HFC 99 - 94, Side 2                                                                                                        
TAPE HFC 99 - 95, Side 1                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Therriault called the House Finance Committee                                                                          
meeting to order at 1:40 p.m.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault   Representative Foster                                                                                     
Co-Chair Mulder    Representative Grussendorf                                                                                   
Vice-Chair Bunde   Representative Kohring                                                                                       
Representative Austerman  Representative Moses                                                                                  
Representative J. Davies   Representative Williams                                                                              
Representative G. Davis                                                                                                         
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Sharon Barton, Director, Division of Administrative                                                                             
Services, Department of Administration; Michael A. Conway,                                                                      
Division of Air and Water Quality, Department of                                                                                
Environmental Conservation; Kevin Brooks, Director, Division                                                                    
of Administrative Services, Department of Fish and Game;                                                                        
Karen Rehfeld, Director, Division of Administrative                                                                             
Services, Department of Education; Juanita Hensley,                                                                             
Legislative Liaison, Division of Motor Vehicles, Department                                                                     
of Public Safety; Mark Badger, Director, Information                                                                            
Technology Group, Department of Administration; Tom Lawson,                                                                     
Director, Division of Administrative Services, Department of                                                                    
Commerce and Economic Development; Percy Frisby, Director,                                                                      
Division of Energy, Department of Community and Regional                                                                        
Affairs; Peter Freer, Director, Southeast Regional Office,                                                                      
Department of Community and Regional Affairs;                                                                                   
Yvonne Chase, Director, Division of Community and Rural                                                                         
Development, Department of Community and Regional Affairs:                                                                      
Tena Young, Department of Community and Regional Affairs;                                                                       
Joseph Reeves, Deputy Director, Division of Administrative                                                                      
Services, Department of Corrections; Karen Crane, Director,                                                                     
Libraries, Archives and Museums, Department of Education;                                                                       
Dan Easton, Director, Division of Facility Construction and                                                                     
Operation, Department of Environmental Conservation; Dana                                                                       
LaTour, Director, Division of Elections, Office of the                                                                          
Lieutenant Governor; Larry Dietrick, Program, Manager,                                                                          
Prevention and Emergency Response program, Division of Spill                                                                    
Prevention and Response, Department of Environmental                                                                            
Conservation;                                                                                                                   
                                                                                                                                
TESTIFIED VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Barbara Brink, Director, Public Defender Agency.                                                                                
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 52 "An Act making and amending capital appropriations                                                                        
and reappropriations and capitalizing funds; and                                                                                
providing for an effective date."                                                                                               
                                                                                                                                
 HB 52 was HELD in Committee for further                                                                                        
consideration.                                                                                                                  
HOUSE BILL NO. 52                                                                                                               
                                                                                                                                
"An Act making and amending capital appropriations and                                                                          
reappropriations and capitalizing funds; and providing                                                                          
for an effective date."                                                                                                         
                                                                                                                                
Co-Chair Therriault provided members with a spreadsheet                                                                         
detailing the capital projects contained in HB 52 (copy on                                                                      
file).                                                                                                                          
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                    
                                                                                                                                
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                             
SERVICES, DEPARTMENT OF ADMINISTRATION discussed the                                                                            
projects contained under the Department of Administration.                                                                      
                                                                                                                                
Pioneers' Homes Health and Safety Repairs $500,000                                                                              
                                                                                                                                
Ms. Barton explained that the six pioneer homes have a list                                                                     
of $20 million dollars in deferred maintenance. This                                                                            
appropriation relates to critical care areas and includes                                                                       
projects relating to failure in the integrity of building                                                                       
systems. There are projects in each of the six homes.                                                                           
                                                                                                                                
Public Defender Criminal Justice Information Integration                                                                        
 $400,000                                                                                                                       
                                                                                                                                
Ms. Barton explained that this is a catch all project to                                                                        
include the Alaska Public Defenders Agency in the Criminal                                                                      
Justice Information Integration project.                                                                                        
                                                                                                                                
BARBARA BRINK, DIRECTOR, PUBLIC DEFENDER AGENCY testified                                                                       
via teleconference. She explained that the project would                                                                        
allow their 13 offices to be electronically connected.                                                                          
Attorneys would be connected through email. They would be                                                                       
able to take advantage of electronic transfer of files and                                                                      
cases. She gave examples of increased efficiencies that the                                                                     
project would allow. She stressed that greater efficiencies                                                                     
are needed in lieu of additional funding.                                                                                       
                                                                                                                                
In response to a question by Co-Chair Therriault, Ms. Brink                                                                     
clarified that they would not be compatible with the                                                                            
Criminal Justice Information system without additional                                                                          
hardware.                                                                                                                       
                                                                                                                                
License Plates and Drivers License Manuals $200,000                                                                             
                                                                                                                                
Ms. Barton explained that this is an annual request for the                                                                     
purchasing of license plate stock. The request is lower than                                                                    
in previous years. The department has stock remaining from                                                                      
the current year that will reduce the amount needed.                                                                            
                                                                                                                                
JUANITA HENSLEY, LEGISLATIVE LIAISON, DIVISION OF MOTOR                                                                         
VEHICLES, DEPARTMENT OF PUBLIC SAFETY explained that lower                                                                      
than anticipated sales of the centennial plates resulted in                                                                     
an overstock.                                                                                                                   
                                                                                                                                
Vice-Chair Bunde questioned how close the program is to                                                                         
being self-supporting. Ms. Hensley explained that it costs                                                                      
approximately $7.09 dollars to reissue a set of plates.                                                                         
There is a $5 dollar charge for the reissue. A general issue                                                                    
plate costs the state $2.50 dollars. There are also added                                                                       
costs for title registration and other administrative                                                                           
functions.                                                                                                                      
                                                                                                                                
Representative J. Davies asked if the amount would be enough                                                                    
to issue dog-mushing license plates. Ms. Hensley noted that                                                                     
the department is discussing a design with mushers.                                                                             
                                                                                                                                
MARK BADGER, DIRECTOR, INFORMATION TECHNOLOGY GROUP,                                                                            
DEPARTMENT OF ADMINISTRATION discussed the following six                                                                        
projects. He observed that the use of technology addresses                                                                      
the issue of better service to citizens. He noted that many                                                                     
budget cuts have been resolved through smarter use of                                                                           
technology.                                                                                                                     
                                                                                                                                
Information Technology Literacy Project $175,000                                                                                
                                                                                                                                
Mr. Badger explained that this project would give all state                                                                     
employees an opportunity for continuing education. The                                                                          
University of Alaska pays half of the project's cost and                                                                        
half is paid by the state. It leverages $4.5 million                                                                            
dollars. Employees can receive training from their desks.                                                                       
                                                                                                                                
Bandwidth Increase $500,000                                                                                                     
                                                                                                                                
Mr. Badger emphasized that as more traffic flows over the                                                                       
electronic highway, the roads need to be widened. Increasing                                                                    
the bandwidth is a way to expand sections of the information                                                                    
highway. There has been a steep increase in the number of                                                                       
electronic transfers. This is a charge back operation and                                                                       
rates are increased to cover costs.                                                                                             
                                                                                                                                
Co-Chair Therriault noted that agencies were not able to                                                                        
anticipate the increases. He asked if agencies considered                                                                       
the bandwidth needed to run new systems. Mr. Badger stated                                                                      
that the nature of technology is that many applications do                                                                      
not fully disclose capacity requirements. There have been                                                                       
unanticipated spikes. He added that the department is trying                                                                    
to mitigate increasing costs. He stressed that the intent is                                                                    
to prevent rates from becoming so high that they prohibit                                                                       
usage.                                                                                                                          
                                                                                                                                
Satellite Interconnection, Equipment Replacement and Repair                                                                     
 $150,000                                                                                                                       
                                                                                                                                
Mr. Badger explained that the satellite interconnection is                                                                      
the one system that reaches all sites in Alaska. He stated                                                                      
that there are potholes in the satellite road. There is no                                                                      
commercial outlet or radio system that reaches all 230                                                                          
sites.                                                                                                                          
                                                                                                                                
In response to a question by Vice-Chair Bunde, Mr. Badger                                                                       
explained that the satellite roadway carries mostly                                                                             
preschool and children's education programs during the day                                                                      
and evening news items. The University of Alaska has its own                                                                    
channel. The satellite is also used by Alaska One (statewide                                                                    
television single), Alaska Two (Gavel to Gavel), Alaska                                                                         
Three (distance education) and ARC's, public radio and                                                                          
emergency communication.                                                                                                        
                                                                                                                                
Land Mobile Radio Conversion $615,000                                                                                           
                                                                                                                                
Mr. Badger explained that there are new standards for                                                                           
broadcasting from fire, emergency and police vehicles. Old                                                                      
equipment needs to be replaced in order to communicate to                                                                       
between vehicles. There is a federal mandate to replace all                                                                     
public vehicles to a digital broadcast. This will allow the                                                                     
coordination of services during emergencies. The cost of the                                                                    
conversion is estimated at $20 million dollars. The request                                                                     
would leverage federal funding. This funds a trunk or                                                                           
conversion box.                                                                                                                 
                                                                                                                                
Criminal Justice Integration Projects Analysis  $200,000                                                                        
                                                                                                                                
Mr. Badger stated that this request would bring public                                                                          
safety agencies together under the criminal justice                                                                             
integration project.  There are redundancies that would be                                                                      
corrected by the project. It would assist on a statewide                                                                        
basis to assure that what is purchased will work in Alaska's                                                                    
satellite driven, rural environment.                                                                                            
                                                                                                                                
Co-Chair Therriault asked if the entire process was set out                                                                     
prior to the start of the project. Mr. Badger emphasized                                                                        
that technology needs are constantly changing. The analysis                                                                     
would be used to test assumptions before the system is                                                                          
bought.                                                                                                                         
                                                                                                                                
Representative J. Davies summarized that the request would                                                                      
assure that the system is the most compatible. Mr. Badger                                                                       
noted that Alaska's congressional delegation is interested                                                                      
in helping Alaska to be a world player in information                                                                           
technology. This is an authorization to spend money from the                                                                    
Information Service Fund.                                                                                                       
                                                                                                                                
Information Service Fund Equipment Replacement  $3,500,000                                                                      
                                                                                                                                
Mr. Badger noted that this request is an authorization to                                                                       
spend money from the fund. The Department of Administration                                                                     
is the central depository. The appropriation would buy                                                                          
printers and replace failing hardware.                                                                                          
                                                                                                                                
Bethel Courthouse Transfer $250,000                                                                                             
                                                                                                                                
Ms. Barton explained that this appropriation was included in                                                                    
the hopes that there would be space available in the Bethel                                                                     
Courthouse.                                                                                                                     
                                                                                                                                
Co-Chair Therriault asked if projects were ranked. Ms.                                                                          
Barton stated that the projects were not ranked.                                                                                
                                                                                                                                
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                                                                                 
                                                                                                                                
TOM LAWSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                                                                      
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT discussed                                                                       
the projects under the Department of Commerce and Economic                                                                      
Development.                                                                                                                    
                                                                                                                                
Kodiak Launch Complex $5,000,000                                                                                                
                                                                                                                                
Mr. Lawson noted that this request authorizes corporate                                                                         
receipts. He explained that $5 million dollars are needed to                                                                    
complete the project. Funding would come from the Alaska                                                                        
Science and Technology Endowment Fund. Their grant is under                                                                     
review. Final action is expected in June. No problems are                                                                       
anticipated. Final construction is anticipated in the fall                                                                      
of 1999.                                                                                                                        
                                                                                                                                
Co-Chair Therriault noted that the House Finance Committee                                                                      
has submitted legislation to authorize the transfer from                                                                        
ASTF.                                                                                                                           
                                                                                                                                
Salmon Marketing Trade Adjustment Assistance $5,000,000                                                                         
                                                                                                                                
Mr. Lawson noted that this is a federal grant to help market                                                                    
salmon. There is a two step process. The Alaska Seafood                                                                         
Marketing Institute (ASMI) is required to write a marketing                                                                     
plan. The grant is expected in the next year.                                                                                   
                                                                                                                                
Representative J. Davies asked if the total cost is $5                                                                          
million dollars. Mr. Lawson clarified that it is the total                                                                      
cost and no match is required.                                                                                                  
                                                                                                                                
Economic Development Matching Grant Program $200,000                                                                            
                                                                                                                                
Mr. Lawson noted that the program was created in 1980. It                                                                       
has not been funded in the past two years. He emphasized                                                                        
that the program would leverage over $9 million dollars from                                                                    
a $1.3 million dollar investment. One state dollar leverages                                                                    
over three non-state dollars. The request is for Alaska                                                                         
Industrial Development and Export Authority (AIDEA)                                                                             
corporate receipts.                                                                                                             
                                                                                                                                
Co-Chair Therriault asked if the current program would                                                                          
leverage three dollars for every state dollar. Mr. Lawson                                                                       
noted that the grant would not go below a one-to-one match.                                                                     
They attempt to achieve a three-to-one ratio. Grants are                                                                        
used for economic development projects. Non-profits and                                                                         
local governments are eligible.                                                                                                 
                                                                                                                                
Vice-chairs Bunde pointed out that AIDEA dollars are also                                                                       
general funds.                                                                                                                  
                                                                                                                                
EDA Annual Planning Grant $100,000                                                                                              
                                                                                                                                
Mr. Lawson noted that the request matches federal dollars.                                                                      
Grants focus on rural areas. He discussed past grants. The                                                                      
current grant is working on rural exports. He noted that the                                                                    
department would lose $200 thousand federal dollars in their                                                                    
operating budget if the request is not authorized. The                                                                          
grants have been funded through the capital budget.                                                                             
                                                                                                                                
(Tape Change, HFC 99 - 93, Side 2)                                                                                              
                                                                                                                                
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                                                                    
                                                                                                                                
Electrical Emergencies $366,100                                                                                                 
                                                                                                                                
PERCY FRISBY, DIRECTOR, DIVISION OF ENERGY, DEPARTMENT OF                                                                       
COMMUNITY AND REGIONAL AFFAIRS noted that this request would                                                                    
fund electrical emergencies from Rural Electric Revolving                                                                       
Loan Fund (RERLF) receipts.                                                                                                     
                                                                                                                                
Co-Chair Therriault noted that the request is based on the                                                                      
anticipated amount received to the fund. Mr. Percy stated                                                                       
that there were two emergencies in FY 99 that cost $54,000                                                                      
thousand dollars. In FY 98, there were seven emergencies                                                                        
that cost $310,000 thousand dollars.                                                                                            
                                                                                                                                
Representative Austerman clarified that funding is from the                                                                     
Rural Electric Revolving Loan Fund program.                                                                                     
                                                                                                                                
Co-Chair Therriault noted that the Fund is no longer being                                                                      
utilized. Loan repayments are being spent on electrical                                                                         
emergencies. Mr. Percy explained that the money accumulates                                                                     
in the RERLF.                                                                                                                   
                                                                                                                                
Rural Development Assistance Grants $800,000                                                                                    
                                                                                                                                
PETER FREER, DIRECTOR, SOUTHEAST REGIONAL OFFICE, DEPARTMENT                                                                    
OF COMMUNITY AND REGIONAL AFFAIRS explained that the program                                                                    
has not received state funding in the past several years.                                                                       
The program has been funded through federal receipts. The                                                                       
department has attempted to maintain the program, which was                                                                     
previously funded with state dollars, through the use of                                                                        
federal receipts from the United States Department of                                                                           
Agriculture, U.S. Forest Services and Rural Development. The                                                                    
department is limited in their use of federal funding due to                                                                    
federal requirements that accompany the money.                                                                                  
                                                                                                                                
Co-Chair Therriault pointed out that there is no restriction                                                                    
on the use of municipal matching grants.                                                                                        
                                                                                                                                
Bulk Fuel Storage Facility Upgrades $1,600,000                                                                                  
                                                                                                                                
Mr. Percy observed that the funds would be from the 470                                                                         
Fund. This request would be used to match federal dollars.                                                                      
There is $5 million dollars in EPA funds.                                                                                       
                                                                                                                                
Head Start Health and Safety Repairs $200,000                                                                                   
                                                                                                                                
YVONNE CHASE, DIRECTOR, DIVISION OF COMMUNITY AND RURAL                                                                         
DEVELOPMENT, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                                                       
explained that the request is for health and safety repairs                                                                     
to Head Start facilities around the state. The need for                                                                         
repairs exceeds the request.                                                                                                    
                                                                                                                                
U.S. Forest Service Mini-Grants $200,000                                                                                        
                                                                                                                                
This item was not discussed.                                                                                                    
                                                                                                                                
Flood Mitigation Assistance Grants $350,000                                                                                     
                                                                                                                                
This item was not discussed.                                                                                                    
                                                                                                                                
Arctic Winter Games Team Alaska $75,000                                                                                         
                                                                                                                                
TENA YOUNG, GRANTS ADMINISTRATOR, DEPARTMENT OF COMMUNITY                                                                       
AND REGIONAL AFFAIRS explained that the total request is                                                                        
$270 thousand dollars. They received $125 thousand dollars                                                                      
in FY 99. The games occur every two years. The next games                                                                       
occur in March 2000. The request of $75 thousand dollars                                                                        
would help mitigate the cost of travel and uniforms.                                                                            
                                                                                                                                
Alaska Native Heritage Center $500,000                                                                                          
                                                                                                                                
Ms. Young explained that the Center received a $500 thousand                                                                    
dollar appropriation in the early 1990's. This item has not                                                                     
received state funding since the first year. Three million                                                                      
dollars is needed to complete the Center. The Center is                                                                         
scheduled to open May 1, 1999.                                                                                                  
                                                                                                                                
DEPARTMENT OF CORRECTIONS                                                                                                       
                                                                                                                                
Maintenance, Renovation, Repair, Renewal and Replacement                                                                        
 $900,000                                                                                                                       
                                                                                                                                
JOSEPH REEVES, DEPUTY DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                      
SERVICES, DEPARTMENT OF CORRECTIONS explained that the                                                                          
requests are prioritized by security, life safety, mission                                                                      
support and others criteria. The maintenance request is                                                                         
their highest priority. The department has identified $13                                                                       
million dollars in deferred maintenance, $9.5 million                                                                           
dollars in renewal and replacement and $8.5 million dollars                                                                     
in renovation and remodeling that needs to occur over the                                                                       
next five years to maintain their facilities for sustained                                                                      
long-term operations.                                                                                                           
                                                                                                                                
Co-Chair Therriault clarified that the request does not                                                                         
identified specific projects. Mr. Reeves noted that the                                                                         
majority of their facilities are over 20 years old.                                                                             
Unanticipated systems failures occur regularly. In response                                                                     
to a question by Co-Chair Therriault, he stated that                                                                            
projects that have been approved by the Office of Management                                                                    
and Budget have made it through the legislature.                                                                                
                                                                                                                                
Criminal Justice Information System (OBSCIS) Replacement                                                                        
 $1,000,000                                                                                                                     
                                                                                                                                
Mr. Reeves explained that this request would continue the                                                                       
effort to convert systems to the criminal justice                                                                               
information systems. They are requesting more federal funds.                                                                    
                                                                                                                                
Representative Austerman asked if the criminal justice                                                                          
information system was tied to the Department of                                                                                
Administration.  Mr. Reeves replied that the Department of                                                                      
Administration is the hub.  The estimate completion date is                                                                     
September 1999.  The reporting system will have interface                                                                       
capabilities for current criminal data base bookings, inmate                                                                    
program development, tracking, and recording.                                                                                   
                                                                                                                                
Equipment Replacement $250,000                                                                                                  
                                                                                                                                
Mr. Reeves stated that the request is for major kitchen                                                                         
equipment.  The equipment wears out rapidly.  These funds                                                                       
replace broken equipment. Four million meals a day are                                                                          
cooked in Department of Corrections' kitchens.                                                                                  
                                                                                                                                
Data Technical Support $300,000                                                                                                 
                                                                                                                                
Mr. Reeves observed that this money would support the                                                                           
salaries of six or seven data specialist in the Department                                                                      
of Administration.                                                                                                              
                                                                                                                                
DEPARTMENT OF EDUCATION                                                                                                         
                                                                                                                                
Library - Repair Archives Building Foundation                                                                                   
 $90,000                                                                                                                        
                                                                                                                                
KAREN CRANE, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS,                                                                         
DEPARTMENT OF EDUCATION explained that the building is                                                                          
splitting apart.  The building is behind the Goldbelt Hotel.                                                                    
This appropriation would not permanently fix the problem.                                                                       
The $90 thousand dollar request would provide interim                                                                           
funding only. The front part of the building should                                                                             
eventually be separated from the back of the building.                                                                          
                                                                                                                                
Library - Statewide Electronic Doorway $100,000                                                                                 
                                                                                                                                
Ms. Crane provided information regarding the Statewide                                                                          
Electronic Doorway (SLED) program. The University of Alaska                                                                     
Fairbanks manages the program. The program offers access to                                                                     
federal and state information.  Most of the money would go                                                                      
to Internet access.  Email accounts are not offered. Part of                                                                    
the funding goes to maintain a toll free phone help desk.                                                                       
This is a reimbursable service agreement from the State                                                                         
Library to the University of Alaska Fairbanks.                                                                                  
                                                                                                                                
BIA School Sites Cleanup Planning $20,000                                                                                       
                                                                                                                                
KAREN REHFELD, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                             
SERVICES, DEPARTMENT OF EDUCATION explained that this is a                                                                      
new request to begin site redemption and cleanup at former                                                                      
BIA school properties. There are sixty former BIA school                                                                        
sites. Some of the sites are abandoned and becoming                                                                             
hazardous to residents due to asbestos and other materials                                                                      
left in the buildings. The request would be used to evaluate                                                                    
two sites (Grayling and Nightmute) to determine the scope of                                                                    
work needed.                                                                                                                    
                                                                                                                                
Co-Chair Therriault asked if the buildings not in use are                                                                       
boarded up. Ms. Rehfeld noted that many are still being                                                                         
used. Sites that have been abandoned need to be demolished                                                                      
and hazardous materials removed. The request would assess                                                                       
the cost.                                                                                                                       
                                                                                                                                
Vice-Chair Bunde questioned if there is a federal                                                                               
responsibility for assistance. Ms. Rehfeld stated that there                                                                    
are no assurances for federal assistance.                                                                                       
                                                                                                                                
Representative Austerman questioned why the request is                                                                          
contained in the capital budget.                                                                                                
                                                                                                                                
Co-Chair Therriault pointed out that it is a one-time                                                                           
request. Ms. Rehfeld explained that the Facilities Unit                                                                         
within the Department of Education would manage the project.                                                                    
                                                                                                                                
AVTEC - Instructional Equipment Replacement $60,000                                                                             
                                                                                                                                
Ms. Rehfeld explained that this request would provide                                                                           
computerized alignment machines, diagnostic equipment, gas                                                                      
emissions analyzers required by the state for the automotive                                                                    
inspection and certification program they offer.                                                                                
                                                                                                                                
Home Modifications for Individuals with Disabilities                                                                            
 $100,000                                                                                                                       
                                                                                                                                
Ms. Rehfeld noted that this request is for housing                                                                              
modifications for individuals with disabilities. The                                                                            
Division of Vocational Rehabilitation manages this. The                                                                         
modifications are for individuals with disabilities who are                                                                     
participating in specific component plans.                                                                                      
                                                                                                                                
Co-Chair Therriault asked for funding amounts in previous                                                                       
years. Ms. Rehfeld noted that the program was funded at $100                                                                    
thousand dollars.                                                                                                               
                                                                                                                                
Commission on Postsecondary Education-Equipment Replacement                                                                     
 $64,500                                                                                                                        
                                                                                                                                
Ms. Rehfeld noted that this is for on going equipment                                                                           
replacement.                                                                                                                    
                                                                                                                                
Vice-Chair Bunde asked why the request is in the capital                                                                        
budget. Ms. Rehfeld clarified that it would be corporate                                                                        
receipts. The loan servicing system was has been upgraded                                                                       
over several years.                                                                                                             
                                                                                                                                
DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                        
                                                                                                                                
DAN EASTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION AND                                                                     
OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION provided                                                                    
an overview of village safe water projects in the                                                                               
department. He noted that the capital budget request is                                                                         
different from previous requests. The match ratio has                                                                           
changed. More federal funds are captured with fewer state                                                                       
funds. The request includes approximately $6.6 million                                                                          
dollars less state funds and $10.6 million in additional                                                                        
federal funds and another $10 million in federal funds that                                                                     
that are captured with matching funds outside of the                                                                            
department. The additional $10 million dollars goes directly                                                                    
to communities. The United States Department of Agriculture                                                                     
funding comes as a pass through to communities. Specific                                                                        
projects are contained in HB 52.                                                                                                
                                                                                                                                
(Tape Change, HFC 99 -94, Side 1)                                                                                               
                                                                                                                                
Representative J. Davies asked how project management is                                                                        
done. Mr. Easton noted that the projects are managed in the                                                                     
same manner. The funding for management is included as a                                                                        
non-general fund appropriation.                                                                                                 
                                                                                                                                
Co-Chair Therriault asked where federal funds are noted. Mr.                                                                    
Easton explained that the Village Safe Water Project                                                                            
Administration $2,081,700 appropriation contained on page 6                                                                     
pays for engineers and the administration of the program.                                                                       
These funds are transferred to the operating budget. The                                                                        
second appropriation is the Village Safe Water Feasibility                                                                      
Studies. These are a combination of Environmental Protection                                                                    
Agency (EPA) and state funding. Village safe water projects                                                                     
funded through EPA begin on the bottom of page 7.                                                                               
                                                                                                                                
Co-Chair Therriault asked if projects are ranked. Mr. Easton                                                                    
clarified that the projects are ranked. When projects are                                                                       
placed in the capital budget legislation they are grouped by                                                                    
funding source.                                                                                                                 
                                                                                                                                
Representative Foster noted the number of feasibility                                                                           
studies and master design projects. He asked if they are                                                                        
done by the department. Mr. Easton explained that the                                                                           
majority of projects are handled through contracts.                                                                             
Representative Foster observed that the projects vary in                                                                        
cost. Mr. Easton explained that the studies identify                                                                            
alternatives, options, and costs. They lay the basis for the                                                                    
project and are a critical first step.                                                                                          
                                                                                                                                
In response to a question by Representative Austerman, Mr.                                                                      
Easton explained that the administrative cost funds 21                                                                          
positions. The funds are transferred from the capital budget                                                                    
to the operating budget.                                                                                                        
                                                                                                                                
Co-Chair Therriault noted that the positions would be                                                                           
eliminated when the funding is finished.                                                                                        
                                                                                                                                
Representative Austerman asked if AHFC receipts are normally                                                                    
used to fund these positions in the capital budget.                                                                             
                                                                                                                                
Vice-Chair Bunde asked if there are local hire concerns. Mr.                                                                    
Easton noted that the vast majority is locally hired. Of                                                                        
every dollar .70 percent is spent in urban Alaskan centers.                                                                     
Thirty cents are spent in local communities for labor.                                                                          
                                                                                                                                
Vice-Chair Bunde asked if a local match is encouraged or                                                                        
required. Mr. Easton stated that community contribution is                                                                      
an integral part of the program. Communities operate and                                                                        
maintain the systems. It costs more money to provide                                                                            
drinking water to small communities on a per capita basis.                                                                      
He added that off road communities have higher costs. Local                                                                     
communities also contribute land and equipment. There is not                                                                    
a specific requirement for a local match.                                                                                       
                                                                                                                                
Vice-Chair Bunde noted that the responsibility lies with the                                                                    
state if the local community fails to maintain operational                                                                      
expenses. Mr. Easton replied observed that if something                                                                         
breaks down the responsibility lies with the community.                                                                         
There is a state program to assist communities.                                                                                 
                                                                                                                                
In response to a question by Co-Chair Mulder, Mr. Easton                                                                        
reviewed the appropriations. He noted that there is $1.8                                                                        
million non-general fund dollars (AHFC) in Village Safe                                                                         
Water Project Administration, in Village Safe Water Studies                                                                     
there is $1.4 million in state dollars and $2.8 federal                                                                         
dollars. There is $10.4 million in state dollars for EPA                                                                        
matched projects and $20.7 in federal dollars. There is $6.6                                                                    
million in state dollars and $20 million federal dollars in                                                                     
USDA projects to communities. In the Municipal Water Sewer                                                                      
Matching Grant Program there is $13.7 million in state                                                                          
dollars and $4.5 federal dollars.                                                                                               
                                                                                                                                
Representative J. Davies clarified federal funds are part of                                                                    
the other funds. Mr. Easton observed that funding comes from                                                                    
the USDA and the EPA.                                                                                                           
                                                                                                                                
In response to a question by Co-Chair Therriault, Mr. Easton                                                                    
explained that the department receives more applications                                                                        
than can be funded. The funding level is set by what is                                                                         
available in federal funding and the state match that would                                                                     
be required. The list has moved largely intact.                                                                                 
                                                                                                                                
Representative J. Davies observed that the direct grant to                                                                      
municipalities is $20 million in federal dollars.                                                                               
                                                                                                                                
Co-Chair Therriault noted that some water systems were over                                                                     
built. He asked if an eye is being kept on maintenance and                                                                      
operations. Mr. Easton stated that the department makes sure                                                                    
that the communities understand that they will be                                                                               
responsible for operation and maintenance of projects.                                                                          
                                                                                                                                
In response to a question by Representative Foster, Mr.                                                                         
Easton noted that 65 percent of households in rural Alaska                                                                      
have basic water and sewer. By 2003 83 percent of Alaskan                                                                       
households will have access to water and sewer. The last 10                                                                     
percent will be harder than the first 10 percent.                                                                               
                                                                                                                                
Representative J. Davies observed that local people are                                                                         
being involved in the construction of systems.                                                                                  
                                                                                                                                
Anchorage Allocation $1,500,000                                                                                                 
                                                                                                                                
Mr. Easton noted that the Anchorage allocation includes                                                                         
several projects. Anchorage has tremendous water and sewer                                                                      
needs. A decision was made to appropriate to Anchorage                                                                          
without a competitive process. There are no other special                                                                       
allocations. Anchorage provides a 50 percent match. Co-Chair                                                                    
Therriault, Mr. Easton clarified that everything other than                                                                     
Fairbanks is from the priority list. He observed that                                                                           
Fairbanks has some private utilities.                                                                                           
                                                                                                                                
Kodiak Island Borough Waste Management Implementation                                                                           
 $743,000                                                                                                                       
                                                                                                                                
Mr. Easton explained that this project would be funded with                                                                     
EVOSS funds.                                                                                                                    
                                                                                                                                
National Pollutant Discharge Elimination System Assumption                                                                      
 $125,000                                                                                                                       
                                                                                                                                
MICHAEL A. CONWAY, DIVISION OF AIR AND WATER QUALITY,                                                                           
DEPARTMENT OF ENVIRONMENTAL CONSERVATION discussed air                                                                          
quality requests. This project would implement state                                                                            
assumption of aspects of the federal National Pollutant                                                                         
Discharge Elimination System (NPDES).                                                                                           
                                                                                                                                
Co-Chair Therriault explained that it is a one time expense.                                                                    
                                                                                                                                
In response to a question by Representative J. Davies, Mr.                                                                      
Conway responded that the percentage of the cost paid                                                                           
through the permitting and the gain to the public needs to                                                                      
be determined. Mr. Conway noted that EPA could continue to                                                                      
do some aspects.                                                                                                                
                                                                                                                                
Fine Particulate Monitoring $494,500                                                                                            
                                                                                                                                
Mr. Conway observed that the request is for the second year                                                                     
of a five-year federally funded project. The Environmental                                                                      
Projection Agency is looking to the state to define the                                                                         
standard in Alaska. Monitors cover the major population                                                                         
areas. The EPA is working to enter areas with smaller                                                                           
populations. There is no requirement for state general                                                                          
funds.                                                                                                                          
                                                                                                                                
Upgrade, Private Underground Storage Tanks $5,000,000                                                                           
                                                                                                                                
LARRY DIETRICK, PROGRAM, MANAGER, PREVENTION AND EMERGEINCY                                                                     
RESPONSE PROGRAM, DIVISION OF SPILL PREVENTION AND RESPONSE,                                                                    
DEPARTMENT OF ENVIRONMENTAL CONSERVATION noted that the                                                                         
funding source is the Storage Tank Assistance Fund. There                                                                       
would be 49 upgrades, 127 closures and 32 cleanups at                                                                           
priority sites. The program would be completed and                                                                              
terminated on June 30, 2000.                                                                                                    
                                                                                                                                
Upgrade, State-Owned Underground Storage Tanks                                                                                  
 $2,500,000                                                                                                                     
                                                                                                                                
Mr. Dietrick explained that this request applies to state                                                                       
owned tanks that are out of compliance.                                                                                         
                                                                                                                                
(Tape Change, HFC 99 - 94, Side 2)                                                                                              
                                                                                                                                
Mr. Dietrick noted that there are 45 tanks that will be                                                                         
closed and 39 that would be closed.                                                                                             
                                                                                                                                
Representative Austerman observed that the Alaska Civil Air                                                                     
Patrol has received several pieces of property with storage                                                                     
tank problems. Mr. Dietrick did not know if they were on the                                                                    
list, as state owned tanks.                                                                                                     
                                                                                                                                
Representative Austerman and Representative G. Davis felt                                                                       
that the Alaska Civil Air Patrol should be considered under                                                                     
state owned operations.                                                                                                         
                                                                                                                                
Statewide Contaminated Cleanup $5,000,000                                                                                       
                                                                                                                                
Mr. Dietrick noted that this would be funded from the Oil                                                                       
and Gas Hazardous Substance Response Fund. These projects                                                                       
are the highest-ranking contaminated sites in the state.                                                                        
There would be 6 private and 10 state owned sites, 11 state                                                                     
owned sites with underground leaking sites that are taken                                                                       
out of service in FY00.                                                                                                         
                                                                                                                                
In response to a question by Representative G. Davis, Mr.                                                                       
Dietrick explained that when another state agency has a site                                                                    
the funding is transferred as a RSA.                                                                                            
                                                                                                                                
In response to a question by Co-Chair Therriault Mr.                                                                            
Dietrick noted that this item was funded at $1.5 million                                                                        
dollars in FY99.                                                                                                                
                                                                                                                                
Upgrade of State-Owned Aboveground Storage Tanks                                                                                
 $1,200,000                                                                                                                     
                                                                                                                                
Mr. Dietrick noted that this request would carry out                                                                            
upgrades on above ground tanks. The estimated cost for FY01                                                                     
would be $1 million dollars. After FY01, a federal funding                                                                      
source would kick in. Federal funding is being sought. This                                                                     
is the first year the department has sought funds. The                                                                          
Department of Community and Regional Affairs had a related                                                                      
appropriation for the past two years.                                                                                           
                                                                                                                                
Co-Chair Therriault asked why federal funding would not be                                                                      
increased until the out years. Mr. Dietrick explained that                                                                      
federal funding has not been locked in.                                                                                         
                                                                                                                                
Representative Austerman clarified that funding would be                                                                        
through the Oil and Hazardous Waste Fund.                                                                                       
                                                                                                                                
DEPARTMENT OF FISH AND GAME                                                                                                     
                                                                                                                                
Statewide Facilities Deferred Maintenance $400,000                                                                              
                                                                                                                                
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT OF FISH AND GAME explained that this is the                                                                          
department's number one priority. There are about $3 million                                                                    
dollars of deferred maintenance projects.                                                                                       
                                                                                                                                
In response to a question by Co-Chair Therriault, Mr. Brooks                                                                    
clarified that the projects are listed alphabetically.                                                                          
                                                                                                                                
Vessel and Aircraft Maintenance and Repair $200,000                                                                             
                                                                                                                                
Mr. Brooks spoke to the component. This would be used to                                                                        
address life and safety issues. Co-Chair Therriault asked if                                                                    
there had been a standard amount over the years. Mr. Brooks                                                                     
replied that this component had been appropriated at                                                                            
approximately $400 thousand dollars. This would be a minimal                                                                    
amount needed to address critical needs.                                                                                        
                                                                                                                                
Representative J. Davies asked if these are major repair                                                                        
items. Mr. Brooks replied that they are. These are major                                                                        
overhauls.                                                                                                                      
                                                                                                                                
Upper Cook Inlet Salmon Research $500,000                                                                                       
                                                                                                                                
Mr. Brooks acknowledged that this item be placed in the                                                                         
operational category. This project received 470 funds three                                                                     
years. The funding will run out on June 30, 1999. The                                                                           
request is needed to complete the work. Two hundred and                                                                         
fifty thousand of the amount would be from commercial                                                                           
fisheries.                                                                                                                      
                                                                                                                                
In response to Representative J. Davies, Mr. Brooks stated                                                                      
that the Department is concerned with the sockeye run in                                                                        
Cook Inlet. The Department is trying to disentangle the                                                                         
stock.                                                                                                                          
                                                                                                                                
Dock Repair, Maintenance and Replacement $375,000                                                                               
                                                                                                                                
Mr. Brooks stated that this component is tied to statewide                                                                      
facilities. Two docks have been identified that are in need                                                                     
of repair. The Department of Fish and Game and the                                                                              
Department of Public Safety use King Salmon as a staging                                                                        
point. The amount was too big to address in the regular                                                                         
deferred maintenance budget.                                                                                                    
                                                                                                                                
Southeast Region Vessel Facility $1,378,200                                                                                     
                                                                                                                                
Mr. Brooks stated that this project has been before the                                                                         
legislature for the past several years. The state agencies                                                                      
have to vacate the sub-port building. Space has been                                                                            
identified for a metal frame building to be use for vessel                                                                      
repairs and other functions.  There has been an eviction                                                                        
notice to get out of the facility. Co-Chair Therriault asked                                                                    
if it was an actual eviction notice or ask for paying the                                                                       
full rent. Mr. Brooks understood that there is a one year                                                                       
extension. The eviction has been forestalled for several                                                                        
years.                                                                                                                          
                                                                                                                                
Kachemak Bay Research Reserve Facilities and Operations                                                                         
 $1,385,700                                                                                                                     
                                                                                                                                
Mr. Brooks explained that the project would receive $1.3                                                                        
million dollars in federal funds and $85.7 thousand dollars                                                                     
in state match. This is a phased project. The initial                                                                           
appropriation is for a facility design and initial                                                                              
construction.                                                                                                                   
                                                                                                                                
In response to a comments by Representative G. Davis, Mr.                                                                       
Brooks stated that it is not the department's intent to                                                                         
request additional state dollars. It would have to be funded                                                                    
through federal dollars.                                                                                                        
                                                                                                                                
In response to a question by Representative Austerman, Mr.                                                                      
Brooks explained that the project is part of the National                                                                       
Research Reserve Program and would be dedicated to longterm                                                                     
research and education. He noted that three positions in                                                                        
their operating budget would be federally funded.                                                                               
                                                                                                                                
Co-Chair Therriault observed that additional federal funding                                                                    
is expected in subsequent years.                                                                                                
                                                                                                                                
Representative J. Davies asked if there is a federal                                                                            
research facility in Homer. Mr. Brook was unaware of any                                                                        
related projects in Homer. The cities of Homer and Seldovia                                                                     
support the project.                                                                                                            
                                                                                                                                
Representative J. Davies asked if the facility is related to                                                                    
a University of Alaska. Mr. Brooks did not know the answer.                                                                     
                                                                                                                                
Nearshore Fisheries Stock Assessment and Research                                                                               
 $1,200,000                                                                                                                     
                                                                                                                                
Mr. Brooks noted that the request is for federal receipt                                                                        
authority for developing fisheries and under utilized                                                                           
stocks. They anticipate a three-year project.                                                                                   
                                                                                                                                
Representative Williams questioned how it would affect                                                                          
urchin fisheries. Mr. Brooks was not sure of a connection to                                                                    
the urchin fisheries.                                                                                                           
                                                                                                                                
Representative J. Davies clarified that the $1.2 million                                                                        
dollars would be spread over three years.                                                                                       
                                                                                                                                
Sport Fish and Recreational Boating Access and Facility Dev.                                                                    
 $2,700,000                                                                                                                     
                                                                                                                                
Mr. Brooks noted that the request is for a sport fish                                                                           
project that would receive federal aid dollars derived from                                                                     
an excise tax on fishing tackle and bulk fuel sales. There                                                                      
is a 15 percent set a side for access projects. The Division                                                                    
has a list of the projects.                                                                                                     
                                                                                                                                
Representative J. Davies asked if the funds could be used                                                                       
for the acquisition of a landing site. Mr. Brooks answered                                                                      
that they could use the funds for acquisition of landing                                                                        
sites.                                                                                                                          
                                                                                                                                
In response to a question by Co-Chair Therriault, Mr. Brooks                                                                    
noted that they work cooperatively with the Division of                                                                         
Parks.                                                                                                                          
                                                                                                                                
In response to a question by Representative Austerman, Mr.                                                                      
Brooks stated that there is no requirement to set aside                                                                         
funding for habitat restoration or protection. The Divisions                                                                    
of Sport Fish and Habitat work cooperative within the                                                                           
department.                                                                                                                     
                                                                                                                                
Western Alaska Salmon Disaster $7,000,000                                                                                       
                                                                                                                                
Mr. Brooks noted that the request is in response to fishing                                                                     
failures. The intent is to address long term problems with                                                                      
the stocks. The funding is one-time but would be spread out                                                                     
over multiple years. This is an amendment to the Governor's                                                                     
request.                                                                                                                        
                                                                                                                                
Recreational Boat Sewage Pumpout Facility Development                                                                           
 $500,000                                                                                                                       
                                                                                                                                
Mr. Brooks explained that the project would receive a one-                                                                      
time $500 thousand dollars federal appropriation for sewage                                                                     
pumpout facilities. There is a required 25 percent match. In                                                                    
kind match from municipalities could be used. It would not                                                                      
require general funds.                                                                                                          
                                                                                                                                
Transient Boat Moorage Development $500,000                                                                                     
                                                                                                                                
Mr. Brooks noted this project is also a one-time federal                                                                        
appropriation. Boat moorage facilities would be placed                                                                          
intervals for one-day journeys. They would be designed to                                                                       
require very little maintenance. The department would work                                                                      
with local operators for pumpout facilities. Local operators                                                                    
could charge moorage fees to cover their costs.                                                                                 
                                                                                                                                
Anchorage Urban Fisheries Public Access Development                                                                             
 $150,000                                                                                                                       
                                                                                                                                
Mr. Brooks explained that this request would be paid from                                                                       
federal sport fish funds. This would provide facilities for                                                                     
increased usage. This project is geared toward walk-up                                                                          
fisheries.                                                                                                                      
                                                                                                                                
(Tape Change, HFC 99  - 95, Side 1)                                                                                             
                                                                                                                                
Port Graham Hatchery Reconstruction $750,000                                                                                    
                                                                                                                                
Mr. Brooks explained that EVOSS funds would be used to                                                                          
repair damages from fire. It is not a state facility. The                                                                       
hatchery enhances pink, sockeye and coho salmon. It benefits                                                                    
both local subsistence and commercial fisheries.                                                                                
                                                                                                                                
OFFICE OF THE GOVERNOR                                                                                                          
                                                                                                                                
Americans with Disabilities Act Compliance Projects                                                                             
 $500,000                                                                                                                       
                                                                                                                                
DANA LATOUR, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE                                                                     
LIEUTENANT GOVERNOR explained that request would continue                                                                       
work required to comply with American with Disabilities                                                                         
projects. The Department of Transportation and Public                                                                           
Facilities compiled the list.                                                                                                   
                                                                                                                                
AccuVote System $310,900                                                                                                        
                                                                                                                                
Ms. LaTour explained that the project is for the second year                                                                    
lease payment of a six-year project. The project was                                                                            
approved for FY99. The project had a total cost of $2                                                                           
million dollars. The project cost was less than anticipated.                                                                    
The balance from FY99 of $77 thousand dollars was applied to                                                                    
the second year lease payment.                                                                                                  
                                                                                                                                
In response to a question by Representative Austerman, Ms.                                                                      
LaTour explained that the equipment was bought on a lease                                                                       
purchase. Precinct tabulators are in 275 of the state's 463                                                                     
precincts. There is legislation pending to purchase                                                                             
tabulators for the remaining precincts.                                                                                         
                                                                                                                                
HB 52 was HELD in Committee for further consideration.                                                                          
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 4:58 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
House Finance Committee 18 4/21/99pm                                                                                            

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