Legislature(2005 - 2006)HOUSE FINANCE 519
03/09/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB98 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| SB 98 | |||
HOUSE FINANCE COMMITTEE
March 9, 2005
1:42 P.M.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee meeting
to order at 1:42:38 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Eric Croft (via teleconferenced)
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Reggie Joule
Representative Mike Kelly
ALSO PRESENT
Representative Beth Kerttula; James Armstrong, Staff,
Senator Gary Wilken; Eric Swanson, Director, Division of
Administrative Services, Department of Administration; Jo
Ellen Hanrahan, Acting Director, Division of Administrative
Services, Department of Commerce, Community & Economic
Development; Marc Antrim, Commissioner, Department of
Corrections; Sharleen Griffin, Acting Director, Division of
Administrative Services, Department of Corrections; Eddy
Jeans, Director, Education Support Services, Department of
Education and Early Development; Nancy Slagle, Director,
Division of Administrative Services, Department of
Transportation and Public Facilities; Kevin Brooks, Deputy
Commissioner, Department of Administration; Stan Herrera,
Director, Chief Technology Officer, Department of
Administration; Sally Saddler, Legislative Liaison,
Department of Commerce, Community and Economic Development;
Laura Glaiser, Director, Division of Elections, Office of
the Lieutenant Governor; Joan Brown, Budget Analyst, Office
of Management and Budget (OMB); Clark Gruening, Former
Permanent Fund Trustee, Juneau
PRESENT VIA TELECONFERENCE
John Cramer, Director, Administration Services Division,
Department of Military and Veterans Affairs, Anchorage; Kate
Giard, Chair, Regulatory Commission of Alaska (RCA),
Anchorage
SUMMARY
CS SB 98(FIN) An Act making supplemental appropriations,
capital appropriations, and other appropriations;
amending appropriations; making appropriations to
capitalize funds; making appropriations under art.
IX, sec. 17(c), Constitution of the State of
Alaska, from the constitutional budget reserve
fund; and providing for an effective date.
CS SB 98(FIN) was HEARD and HELD in Committee for
further consideration.
CS FOR SENATE BILL NO. 98(FIN)
An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; making appropriations to capitalize
funds; making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date.
1:4"4:16 PM
DEPARTMENT OF ADMINISTRATION
Section 1(a) - Non-Public Building Fund Facilities
Increased costs for heating fuel and other utilities
for Non-Public Building Fund buildings.
General Funds $110.0
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, explained that the request
would cover the increased utility costs for the Department.
He reminded members that there had been previous discussion
on the request.
Section 1(b) - Capital
Feb 28: State of Alaska Network Security
Infrastructure Upgrades
Income Svc Fund $5,003.5
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, pointed out that Section 1(b) was a new item
to cover security system upgrades and that the request was
included in the FY06 Capital Budget request. He noted that
in January, the State network was the object of a site cyber
attack causing many problems with the computer system. Mr.
Brooks added that the Department has been working with a
United States computer readiness team to analyze the network
system.
Co-Chair Chenault asked it this would be a "never-ending
battle". Mr. Brooks acknowledged that the network is always
under attack and that there will never be an end to the
attempts, however, there are things, which can be done to
"shore-up" the systems.
Co-Chair Chenault inquired about the time frame necessary to
implement such upgrades. Mr. Brooks replied that the intent
is to create a sequence approach. The network exists
throughout 400 locations in the State and that the oldest
th
equipment is anticipated to be addressed by June 30, 2005.
Items not scheduled to be handled this fiscal year, were
left in the FY06 Capital Budget.
Representative Hawker observed that the request was an
accelerating capital request and concurred that the request
was a legitimate need for the State.
Co-Chair Chenault commented that more testimony could be
taken on proposed changes in the supplemental at a later
time.
1:50:16 PM
Section 1(c) - Capital
Feb 28: Alaska Land Mobile Radio (ALMR)
Infrastructure Upgrades ($6,175.0 requested)
General Funds $6,000.0
Mr. Brooks noted that the Department is in a contract with
the federal government to upgrade a network system that
stretches from Kodiak to Fairbanks, a series of computer
sites along that network. The project is a subset of the
network; the Department would be addressing 87 sites. The
State is in partnership with the federal government's
Department of Defense, to develop the infrastructure. The
largest users are the Department of Public Safety, the
Department of Health & Social Services, the Department of
Transportation & Public Facilities, the Alaska Railroad and
local governments. He added that each site is along the
road system and that there have been 69 sites identified
that need immediate attention.
Representative Hawker asked why the State was investing in
additional land-based technology.
1:54:13 PM
STAN HERRERA, DIRECTOR, CHIEF TECHNOLOGY OFFICER, ENTERPRISE
TECHNOLOGY SERVICES, DEPARTMENT OF ADMINISTRATION, responded
that the project would provide inter operability of radios
for first responders in the event of disasters. It is
specific to the needs.
Representative Hawker pointed out the investment size in the
land-based computer stations. He noted that everything else
was moving toward satellite connections. Mr. Herrera
explained that would be a part of the communications moving
forward as it is planned to use a new technology. The use
of the State's system is something that the U. S. Department
of Defense was looking at doing anyway because they are
interested in using the State's infrastructure to avoid the
expense of creating a new one.
Representative Hawker asked if only general funds would be
used and if it was intended that there would be federal
participation. Mr. Brooks replied that the U. S. Department
of Defense investment so far has been $43 million dollars
with a projection of an additional $100 million dollars. He
advised that it would not be only a State appropriation as
there is a federal contract.
Co-Chair Chenault inquired if it would stay on the site.
Mr. Herrera explained that it would be line of the site for
the Alaska radio interoperable mobile radio.
1:57:32 PM
Co-Chair Chenault asked if the State was receiving any
payment from the Alaska Railroad for use of the facility.
Mr. Brooks responded that not at the present time; however,
the State is attempting to get the network solidified
creating a chargeback methodology so that all users would be
paying for it. Additionally, the U. S. Department of
Defense is willing to pay their share of operating costs.
He advised that the goal is to have all users paying.
Co-Chair Chenault commented on the costs associated to
operate the system. Mr. Brooks pointed out that there is a
line item included in the operating budget.
Co-Chair Chenault asked the anticipated usage percentage by
the Alaska Railroad. Mr. Brooks did not know the specific
numbers yet. He provided a brief history of the network
system while discussing the infrastructure.
2:01:08 PM
SALARY AND BENEFIT ADJUSTMENT
Section 13(d) - Executive Branch
Feb 28: FY 05 costs for the IBU collective bargaining
agreement.
AMHS Fund $3,190.0
Mr. Swanson advised that the contract would provide for
salary and health insurance increases for the IBU Union.
Representative Weyhrauch noted the recent agreement between
the State and the marine engineers and asked if that would
be covered in the requested budget. Mr. Swanson explained
that another amendment would be added to the budget request.
Co-Chair Chenault knew that there would be another request.
2:02:10 PM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Section 2(f)
Dillingham City Schools grant timing change to April
1, 2004 (Senate addition)
-0-
SALLY SADDLER, LEGISLATIVE LIAISON, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, explained that the
request was language added by the Senate in order to
guarantee that any expenses incurred by the Dillingham City
Schools project after April 1, 2004, would be covered and
included.
JOAN BROWN, BUDGET ANALYST, OFFICE OF MANAGEMENT AND BUDGET
(OMB), responded to a question by Representative Weyrauch,
explaining that the Senate had added the provision and that
the Office of Management and Budget does not have any back
up on it. She understood that expenditures had been
incurred before the original effective date.
2:04:54 PM
DEPARTMENT OF CORRECTIONS
2:07:06 PM
Section 3(b) - Administrative Services
The department is seeking an e-procurement application
to lower purchasing prices and improve efficiencies
within the buying process for commodities, equipment,
food and services. ($225.0 requested)
General Funds $190.0
MARC ANTRIM, COMMISSIONER, DEPARTMENT OF CORRECTIONS,
commented on the procurement application. Current year
spending was adjusted to address the spending reduction.
Co-Chair Meyer noted the reduction and asked the impact.
Commissioner Antrim explained that the Department would be
moving $15,000 dollars from the parole section and that they
were additionally able to locate $35,000 dollars in the
administrative support section to total the $50 thousand
dollars.
Section 3(f) - Probation Region 1
Reduction due to expected lapse (Senate addition)
General Funds ($65.0)
Commissioner Antrim expected a lapsed reduction from Region
1.
2:07:32 PM
AT EASE: 2:07:39 PM
RECONVENED: 2:07:52 PM
Representative Croft referenced the Section 3(b) reduction
by $35 thousand dollars and that the Department had found
$15 thousand and then $35 thousand dollars. He understood
that the entire deficit was $35 thousand dollars. He asked
about the extra $15 thousand dollars.
SHARLEEN GRIFFIN, ACTING DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS,
explained the $65 thousand dollar reduction to probation and
parole services. The Senate used $15 thousand dollars of
that in the $190 thousand dollars appropriated; the other
$35 thousand dollars was the "scrubbing" number across all
components in administrative and support services.
Representative Holm was confused. He asked where the
$50,000 would come from. Ms. Griffin pointed out Line 16,
Section 3(f) was the $65 thousand dollar reduction. She
clarified that the reduction would allow appropriation to
the Office of the Commissioner for procurement efforts.
2:10:17 PM
Representative Hawker noted the $50 thousand dollar
increased general fund appropriation for recruitment
efforts. He understood that there existed a discretionary
contracting account in the Office of the Commissioner, which
was restored by the Senate last year. He commented that
would be an appropriate place to take that money for
recruiting efforts. Ms. Griffin noted that she would need
to go back to see exactly what occurred in last year's
budget. She could not recall the contractual transfers but
offered to provide that information to the Committee.
2:11:55 PM
DEPARTMENT OF EDUCATION & EARLY DEVELOPMENT
Section 4(b) - Mt. Edgecumbe Boarding School
Residential operating costs related to expanded student
population. ($800.0 requested)
General Funds $400.0
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, noted that the
Department had received a $400 thousand dollar reduction by
the Senate. The Department maintains that the additional
$100 thousand dollars is needed to make it thorough this
fiscal year for the Mt. Edgecumbe boarding school.
Co-Chair Meyer requested additional information regarding
the request. Mr. Jeans explained that last year, the
Department of Education & Early Development requested an
increment for an expansion program at the Mt. Edgecumbe
boarding school. That request was approved in the House and
denied in the Senate. Based on direction from the
Governor's Office, the Department moved forward, bringing 30
additional students into Mt. Edgecumbe. They were housed at
the Sitka Pioneer's Home and additional costs were incurred
for supervising, housing and feeding those students.
2:13:53 PM
Co-Chair Meyer noted that the students were housed
temporarily at the Pioneer Home and asked if the Pioneer
Home was paid for the usage of that space. Mr. Jeans
explained that there was empty space but that the Department
had to do some modifications to it. The largest costs
resulted from the residential staffing component.
Co-Chair Meyer pointed out that the Senate was supporting
only half of the request. Mr. Jeans emphasized that the
Department cannot live with any reduction; he hoped that the
numbers would be restored in the House.
2:15:14 PM
Representative Hawker requested that a representative from
the Senate testify regarding the reduction.
JAMES ARMSTRONG, STAFF, SENATOR GARY WILKEN, explained that
the Senate discussion revolved around action taken last year
at which time there was an objection to the project. At
that time, an amendment was offered to restore half the
funding.
Representative Hawker questioned if the intent was to not
phase the project in quite so fast. Mr. Armstrong replied
that could be a good characterization.
Representative Hawker asked if the phase-in was not
accomplished, would the project keep moving forward. Mr.
Jeans stressed this is a timing issue. The Department of
Education & Early Development had requested the funds from
the Legislative Budget and Audit Committee (LBA) to expand
the program at Mt. Edgecumbe. At that time, the Governor
requested that the Department move forward and bring 30
students into the school in FY05 and bring an additional 30
students in FY06, for the full expansion. The Department
came back to the Legislature requesting the additional $30
thousand dollars to move forward with the expansion of the
first 30 students because space was found at the Pioneer
Home. The House approved that request and the Senate denied
it and recommended that the Department wait until the full
expansion was done. After that process, the Governor
directed the Department to move forward with the project
with the first 30 students. Mr. Jeans emphasized that the
expense has been incurred and that currently, the Department
is running the payroll into the 'red'.
2:19:22 PM
Representative Hawker commented that the Legislature needs
to give policy and direction to the Administration regarding
appropriating powers. He stressed that the Governor chose
not to comply. Representative Hawker noted his concern.
Section 4(a) - School Finance and Facilities
Legal and expert services due to the Moore v. State
funding lawsuit; extended lapse date to June 30, 2006.
General Funds $230.0
Vice-Chair Stoltze referenced the section, asking the total
cost. Mr. Jeans stated that the total cost was $800
thousand dollars. The $230 thousand dollar request will
help the Department prepare for the case. The additional
funds are in the FY06 operating request.
Section 4(c) - Museum Operations
Funding shortfall due to unanticipated decline in
program receipts and increased internal chargeback's.
General Funds $100.0
2:21:46 PM
Representative Hawker voiced support for the request.
2:22:01 PM
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Section 5(a) - Capital
Due to safety issues relating to emerging bio-
terriorism threats and animal diseases, changes in
design were necessary to meet original intent and
provide a safe and secure laboratory facility. This
amendment provides additional funding to cover those
design changes and complete construction of the new
Environmental Health Laboratory.
Federal Funds -0-
Section 5(b) - Capital
Agriculture economic disaster match of $500.0 of
federal unrestricted receipts in DNR for non-existent
federal funds is reappropriated from sec. 24(n), ch.
159, SLA 2004, page 81, to DEC for the Seafood and Food
Safety Lab Replacement project.
Federal Funds ($500.0)
Mr. Armstrong stated that the Department requested a
reappropriation for federal unrestricted receipts for the
Environmental Health Lab. He pointed out that Senator
Wilken intended to use those funds for the debt service. He
pointed out that there is language included the regular
supplemental to achieve the same purpose.
2:23:00 PM
Representative Croft understood that the original request
would be general funds to pay for what had been done last
year in the environmental health lab. In effect, the change
would free up the $500 thousand dollars in the operating
budget to use in the supplemental. He asked Mr. Armstrong
why that would be a good idea. Mr. Armstrong replied that
they would be paying for the fast track with those funds.
There is a provision in the regular supplemental that states
any unexpended federal funds will revert back to debt
service. It is the intent of the Senate to use those funds
for debt service.
Co-Chair Chenault pointed out that the $500 thousand dollars
would appear in Section 5. Mr. Armstrong replied that
reappropriation of the federal unrestricted was no longer
included in the legislation.
2:24:51 PM
Co-Chair Chenault noted that there are concerns with design
errors for the lab request.
2:25:49 PM
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
FUND CAPITALIZATION - ALASKA MARINE HIWAY STABILIZAITON
Section 6(a) - Marine Hwy Stabilization
Fuel cost increases of $6,813.3. Feb 28: Increased
capitalization needed of $3,190.9 due to IBU collective
bargaining agreement.
General Funds $10,004.2
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
testified in support of the request. The amount reflects
the monetary terms of the agreement for fuel cost increases
expected by the marine highway and an agreement with the
IBU. It would also cover insurance and salary cost
increases for that bargaining unit.
Representative Holm questioned if ticket prices had been
increased. Ms. Slagle observed that there had been some
increases over the last year but not specific to the IBU
agreement.
In response to a question by Representative Holm about fuel
increases, Ms. Slagle advised that about a 10% surcharge had
been added to address increased fuel costs. She
acknowledged that the surcharge could not come close to
covering the increased cost of fuel. She emphasized the
need to balance fee increases with the loss of revenues that
could happen through a reduction in rider-ship.
Representative Holm noted concern using general funds to
cover the increased fuel costs.
Representative Hawker asked for additional information
regarding those increased costs. He noted that the
Legislature wants to trust the Department's assessment. Ms.
Slagle provided members with a chart demonstrating cost
increases. (Copy on File.) She pointed out that the
Department is looking at ways to reduce costs including
layoffs and a hiring freeze.
Representative Hawker inquired if ferries would be "laid up"
and if the requested amount would be adequate. Ms. Slagle
agreed that could be an alternative if the requests were not
approved, but she emphasized that would occur during peak
season.
In response to a question by Co-Chair Meyer, Ms. Slagle
noted that the Department had an analysis performed by the
McDowell Group, which anticipates a drop off in rider-ship
with the increased costs; she pointed out various options
for travel modes.
Co-Chair Meyer acknowledged it "would not be a bad thing" if
the private sector captured a greater percentage of that
traffic.
Vice-Chair Stoltze observed that the highway systems are
subsidized heavily by federal dollars. He asked if studies
had been done to identify the amount of travel into Interior
Alaska. Ms. Slagle responded that there has been an
extensive review regarding where independent travelers go
once they reach Alaska.
2:40:23 PM
DEPARTMENT OF MILITARY & VETERANS AFFAIRS
FUND CAPITALIZATION - DISASTER RELIEF FUND
Section 6(b) - Disaster Relief Fund
Base capitalization of fund $500.0 ($1million
requested); 2004 Bering Strait Sea Storm $4,054.4;
Interior Earthquake shortfall $259.3; and Kaktovik
Winter Storm $2,363.5. ($7,677.2 requested)
General Funds $7,177.2
JOHN CRAMER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ADMINISTRATION SERVICES DIVISION, DEPARTMENT OF MILITARY AND
VETERANS AFFAIRS, noted that the Senate had reduced the
requested amount by $500 thousand dollars.
Co-Chair Chenault questioned the impact on dropping the
Department's base. Mr. Cramer observed that the Department
will have to come back and request additional funding if any
major event occurs. Usually, in the spring of the year,
there are disaster issues resulting from flooding.
Representative Holm questioned if 2005 had been an unusual
year. Mr. Cramer pointed out that there had been a greater
snow pack in most of the Interior areas where flooding is
now occurring. He indicated that the issue in Kaktovik was
not unusual.
2:44:52 PM
Section 11 - National Guard Military Headquarters
National Guard Audit Disallowance - Federal auditors
have disallowed state expenditures in FY05 for a total
of $937,234. This request will cover October 2004 to
June 2005. An amendment will be offered in the FY06
budget to cover these expenditures for the remainder of
FY05 and FY06. The department estimates they will run
out of a general funds by the end of March. ($446.0
request, difference of $148.7 expected in the regular
supplemental bill).
General Funds $297.3
Mr. Cramer explained the requested change. He noted that
the Department would be able to meet their federal
obligations as long as the funding was included in the
regular supplemental.
Representative Croft referenced Section 6(b). He asked if
there had been a standard base funding of $1 million dollars
for sometime. Mr. Cramer responded that the base
capitalization for the emergency response fund, the
Department has about 5 to 8 disasters at any given time.
Many of those are declared federal disasters, which must be
over $1 million dollars damage in need in order to be
eligible for the federal reimbursement.
2:48:15 PM
DEPARTMENT OF ADMINISTRATION
Section 2 c - Regulatory Commission of Alaska
Legal services costs of $190.0 provided by the
Department of Law were inadvertently omitted from the
Regulatory Commission of Alaska's FY 05 budget. $75.0
for outside counsel costs and $258.0 to implement the
Regulatory Commission of Alaska's improvement
initiative to meet its mission more efficiently and
effectively are also included.
RCA Receipts $523.0
KATE GIARD, (TESTIFIED VIA TELECONFERENCE), CHAIR,
REGULATORY COMMISSION OF ALASKA (RCA), ANCHORAGE, had
nothing to add to the request description.
2:49:50 PM
Representative Weyhrauch asked RCA's intended improvement
list. Ms. Giard replied that it was a real initiative began
in FY04 to look at the internal operations and external
relationships with utilities, the Legislature and the
relationship with the ratepayers.
Representative Weyhrauch questioned if the request as
provided by the Department of Law would be reimbursable.
Ms. Giard clarified that when the budget was bifurcated
between the Attorney General and the RCA, the budget was
then prepared without inclusion of payment to the Department
of Law for services for the RCA.
2:52:36 PM
Representative Hawker noted that in Section 3(b), the
appropriation was for both fiscal years, FY05 and FY06. He
asked why the FY06 expenditures had been included in the
FY05 fast track supplemental request.
2:54:15 PM
DEPARTMENT OF ADMINISTRATION
7(a) - Capital
AOGCC costs for gas pipeline reservoir studies and
depletion plan evaluations. House used all general
funds.
General Funds / PF Corp Rcpts $1,200.0
DEPARTMENT OF LAW
Section7(b) - Civil Division, Oil, Gas and Mining
Legal costs for work related to the state gas pipeline
and to bringing North Slope natural gas to market, and
other oil and gas projects for FY05 and FY06. House
used all general funds.
General Funds / PF Corp Rcpts $9,000.0
DEPARTMENT OF NATURAL RESOURCES
Section 7(c)(1) - Capital
Gas pipeline risk analysis and royalty issues.
House request 2,500.0 GF.
General Funds / PF Corp Rcpts $2,500.0
Section 7(c)(2) - Capital
Gas pipeline corridor geologic hazards and resource
evaluation. House request 2,000.0 GF.
General Funds / PF Corp Rcpts $2,000.0
Section 7(d)(1) - Capital
Gas pipeline Bullen Point Road right-of-way permitting.
House request 3,200.0 GF.
General Funds / PF Corp Rcpts $3,200.0
Section 7(d)(2) - Capital
Division of Oil and Gas increased workload for gas
pipeline. House request 2,700.0 GF.
General Funds / PF Corp Rcpts $2,700.0
Section 7(d)(3) - Capital
Commissioner's Office increased workload for gas
pipeline. House request 200.0 GF.
General Funds / PF Corp Rcpts $200.0
DEPARTMENT OF REVENUE
Section 7(e) - Capital
Commissioner's Office - Work related to the state gas
pipeline and to bringing North Slope natural gas to
market. House request all GF.
General Funds / PF Corp Rcpts $5,300.0
Section 7(f) - Capital
Alaska Natural Gas Development Authority increased
workload for gas pipeline. House all GF.
General Funds / PF Corp Rcpts $2,170.0
OFFICE OF THE GOVERNOR
Section 8(a) - Arctic National Wildlife Refuge
Funds for support of national efforts to open ANWR for
oil and gas exploration and development. House all GF.
General Funds / PF Corp Rcpts $500.0
Mr. Armstrong explained that Section 7(a) through Section
8(a) reflect changes made for gas pipeline efforts in FY05
ranging through FY10. There was a fund source shift of 25%
of roughly $28.7 million dollars funded from the Permanent
Fund Corporation receipts. Additionally, language was added
that all except (d)(1)(2) and (3) (Department of Natural
Resources) would not go through the LBA Committee.
Mr. Armstrong pointed out that Senator Wilken had engaged in
discussions with the Legislative Budget and Audit Committee.
Vice-Chair Stoltze asked if the Permanent Fund Corporation
had participated in those discussions. Mr. Armstrong
responded that there had been no testimony at the table with
the corporation.
2:57:30 PM
Representative Croft voiced concern with using earnings from
the Permanent Fund for the project. He asked specifically
why the Permanent Fund corporate receipts would be used and
asked the difference of those and the Permanent Fund
earnings.
CLARK GRUENING, FORMER PERMANENT FUND TRUSTEE, JUNEAU,
explained that it would be the same realized earnings of the
Fund's source. Representative Croft understood that the
proposed technique would drain the "cup" of earnings. Mr.
Armstrong reported that it would be more of a Legislative
Finance funding source code.
2:59:29 PM
Representative Hawker opined that it is an issue of
nomenclature, referring to the same fact.
Representative Croft thought that the royalties should only
pay a quarter of the bill. He asked if the Permanent Fund
receives a quarter of the oil and gas revenue or a quarter
of the oil and gas royalties.
Co-Chair Chenault noted that there would be someone present
from the Permanent Fund board at the next meeting to discuss
those issues.
3:02:39 PM
Representative Hawker quoted the constitutional language
regarding the percentages:
"25% of lease rentals, royalty sale proceeds, federal
mineral sale proceeds and bonuses received by the
State".
Representative Croft responded to that thought.
Co-Chair Chenault interjected that the issues would be
addressed at the next meeting.
OFFICE OF THE GOVERNOR
Section 8(b) - Elections
Feb 28: Additional increased operating costs for Accu-
Vote maintenance; lease cost increases; list
maintenance costs; additional postage and shipping,
printing, training, archiving and destruction costs.
General Funds $160.0
LAURA GLAISER, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF
THE LIEUTENANT GOVERNOR, explained the request. She
identified the costs associated with:
· Moving the Region 2 office in Anchorage;
· Additional lease costs;
· Costs related to the Accu-vote maintenance agreement;
and
· Additional postage.
Co-Chair Chenault questioned why the costs had not been
included in the earlier appropriations bill. Ms. Glaiser
explained that it had been advised that they be included in
the fast track supplemental.
SB 98 was HELD for further consideration.
ADJOURNMENT
The meeting was adjourned at 3:09 P.M.
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