Legislature(2007 - 2008)HOUSE FINANCE 519
04/04/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB422 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 314 | TELECONFERENCED | |
| + | HB 422 | TELECONFERENCED | |
| + | SB 196 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 4, 2008
1:52 P.M.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee
meeting to order at 1:52:32 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Representative Peggy Wilson; Becky Rooney, Staff,
Representative Peggy Wilson; Panu Lucier, Executive
Director, The Alaska Children's Trust; Kay Kanne, Executive
Director, Juneau Birth Center, Juneau; Jim Baldwin,
Attorney, The Alaska's Childrens Trust; Jerry Burnett,
Director, Division of Administrative Services, Department
of Revenue; Nancy Slagle, Director, Division of
Administrative Services, Department of Transportation and
Public Facilities
PRESENT VIA TELECONFERENCE
Carlee Lawrence, Chair, Friends of the Alaska Children's
Trust Board, Anchorage; Sammi Pokryfki, FACT Board Member,
Anchorage; Jean M. Mischel, Legislative Counsel, Division
of Legal and Research Services, Legislative Affairs Agency,
Anchorage; Shelby Booth, Bristol Bay Assembly; Steve
Ribuffo, Deputy Port Director, Port of Anchorage; James
King Director, Division of Parks, Department of Natural
Resources, Anchorage; Aves Thompson, Director, Alaska
Trucking Association, Anchorage; Jerry McCutcheon,
Anchorage
SUMMARY
HB 314 An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the cost of state transportation projects;
and providing for an effective date.
HB 314 was HEARD & HELD for further
consideration.
HB 422 An Act repealing the Alaska children's trust;
establishing conditions for a grant to a named
recipient of the balance of the Alaska children's
trust; designating certain receipts as available
for a grant to a named recipient for child abuse
and neglect prevention; and providing for an
effective date.
HB 422 was HEARD & HELD for further
consideration.
CS SB 196(FIN) am
An Act relating to establishing a controlled
substance prescription database.
CS SB 196(FIN) was SCHEDULED but not HEARD.
1:53:18 PM
HOUSE BILL NO. 422
An Act repealing the Alaska children's trust;
establishing conditions for a grant to a named
recipient of the balance of the Alaska children's
trust; designating certain receipts as available for a
grant to a named recipient for child abuse and neglect
prevention; and providing for an effective date.
BECKY ROONEY, STAFF, REPRESENTATIVE PEGGY WILSON, explained
that the Alaska Children's Trust (ACT) was established in
1988 with the goal to improve the status of children in
Alaska by generating funds and committing resources to
eliminate child abuse and neglect. The initial
appropriation was made in 1996 in the amount of $6 million
dollars. At present time, ACT funds total nearly $12
million dollars.
The ACT Board is established in the Office of the Governor
and receives grants and support from the Department of
Health and Human Services. A portion of the interest from
the earnings, funds grants to community-based prevention
programs and services. The dollars available for annual
grant making are limited to a maximum amount by State
statute.
Ms. Rooney pointed out that Trustees of the Alaska
Children's Trust (ACT) & the Board of Directors of Friends
of the Alaska Children's Trust (FACT), the 501(c)(3), a
non-profit organization established to raise funds and
advocate for the mission of the Alaska Children's Trust,
have engaged in activities to assess the effectiveness of
the Trust in accomplishing their mission, while planning
for the future of the Trust including how FACT can help
accomplish the mission. The ACT and FACT boards have
determined that:
• Under the current structure, FACT is unable to
accomplish the primary purposes, which are to raise
funds and advocate for the Alaska Children's Trust.
Donors do not want to make contributions to the
State, because FACT is not able to guarantee that
the donor intent is honored. The FACT directors are
not willing to raise money that may or may not be
used as the donors intend.
• Unless significant changes are made, the current
administrative structure of the State's Trust does
not allow for reliable, stable budget funding for
the grant-making process.
• Given the Trust's small operating budget and the
size of the grant awards, many community based
organizations that are well poised to offer
community-based solutions are unlikely to apply
because of the administrative burden relative to the
small size of the grant awards.
2:02:16 PM
REPRESENTATIVE PEGGY WILSON, SPONSOR, supported the
comments made by Ms. Rooney.
Representative Thomas inquired if the bill would make the
Trust into a 501(C)(3). Ms. Rooney responded that it
already has that status.
2:03:03 PM
PANU LUCIER, EXECUTIVE DIRECTOR, THE ALASKA CHILDREN'S
TRUST, noted that she was new to the position and serving
under the direction of the two boards, ACT & FACT. She
addressed the issues that affect both organizations and the
State's ability to administer funds for child abuse
prevention and neglect.
The Office of Children's Services (OCS) statistics for
March 2008 indicate that over 2,000 children are in out-of-
care home care of which 61% are Alaska Native or American
Indian. The impact of child abuse and neglect goes beyond
the child and family. Society as a whole pays a price in
terms of direct and indirect costs. Direct costs include
those associated with maintaining a child welfare system to
investigate allegations of abuse and neglect, as well as
expenditures by judicial law enforcement, health and mental
health systems to respond to and treat abused children,
estimated costs of $24 billion dollars per year.
Ms. Lucier continued, indirect costs represent the long-
term economic consequences of child abuse and neglect such
as juvenile and adult criminal activity, mental illness,
substance abuse and domestic violence. She anticipated as
those children diagnosed with Fetal Alcohol Spectrum
Disorder (FAS) become parents, there will be an increased
demand and need for support services. The State has taken
the responsibility of providing services to children
already suffering from child abuse and neglect. ACT is
currently charged through State statutes to conduct
activities which result in the prevention of abuse through
the issuance of community-based grants.
Ms. Lucier pointed out that the current administrative
structure of the Trust is burdensome because of the small
operating budget and the small size of grant awards being
offered. She thought that a more streamlined and
simplified administrative structure could enhance the
Alaska Children's Trust ability to efficiently pursue their
mission.
Ms. Lucier stated that privatizing the Trust would expand
the role of the Trust from only grant making to also
including research, convening, collaborating, outreach and
social marketing, which could enhance the Trust's ability
to focus grants in program areas that are of the highest
need and would allow the Trust to share information through
outreach and social marketing. She concluded that the
Trustees of the Alaska Children's Trust with the support
of the Friends of the Alaska Children's Trust recommend to
the Governor and the Legislature that the Trust become
privatized.
2:07:36 PM
KAY KANNE, EXECUTIVE DIRECTOR, JUNEAU FAMILY BIRTH CENTER,
JUNEAU, testified in support of the Trust becoming
privatized. She believed that the Trust could be better
able to receive more private donations from non-
governmental entities and that the legislation could help
to create a more streamlined structure. Ms. Kanne pointed
out that the program utilizes education, support and health
care at the Juneau Family Birth Center. She reiterated her
support for HB 422, which would privatize the Alaska
Children's Trust.
2:09:34 PM
CARLEE LAWRENCE, CHAIR, FRIENDS OF THE ALASKA CHILDREN'S
TRUST BOARD (FACT), ANCHORAGE, testified via
teleconference, stated that the FACT Board unanimously
supports HB 422. The mission for FACT is to raise money
for ACT, the only funding dedicated solely to community
based programs to prevent child abuse and neglect in
Alaska. The FACT Board often runs into an ethical dilemma
when attempting to get new donors for the Trust. The
current ACT organizational structure does not allow FACT to
honor the donor's intent. There have been potential donors
that support the ACT mission, but are not willing to give
money to a pass-through organization or to the State of
Alaska. She maintained that there are dollars left on the
table that could otherwise be provided to help prevent
child abuse and neglect.
2:11:52 PM
PUBLIC TESTIMONY CLOSED
2:12:16 PM
Co-Chair Meyer MOVED to ADOPT Amendment 1, 25-LS1552\E.1,
Kurtz/Mischel, 4/4/08. Vice-Chair Stoltze OBJECTED.
Representative Wilson explained that the amendment would
change the department which prepares the agreement.
Currently, it is handled through the Department of
Commerce, Community and Economic Development, but would
move to the Department of Health and Social Services. The
Department of Commerce, Community and Economic Development
would continue to provide the grants to the recipients.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTIONS, Amendment 1 was adopted.
2:13:42 PM
Co-Chair Meyer asked if the amendment would impact the two
fiscal notes. Representative Wilson explained that the
note to Department of Commerce, Community and Economic
Development would remain zero but would change the negative
note from the Department of Health and Social Services to
one that was less negative. Co-Chair Meyer interjected
there would be a forthcoming new note by the Department of
Health and Social Services.
Representative Crawford indicated his support for the
Alaska Children's Trust to separate and become privatized.
2:15:43 PM
Representative Hawker commented on the description of
rust" as an enterprise or administrative activity. He
suggested that the second discussion [concern] should
address the actual Trust, the monetary investments made to
enable the administrative function. He believed that each
section was separate from the other. He pointed out past
inefficiencies in the management of the Trust. He
anticipated a better structure to accomplish that mission.
He agreed that privatizing could possibly get the work done
better, which he did support.
Representative Hawker worried about changing the actual
management of the monetary assets. He proposed enacting
the administrative management changes, but keeping the
money under the State management trust. Representative
Hawker suggested that the ACT administration could parallel
how the Alaska Mental Health Trust works, as an agency that
does not manage their own investments.
2:20:17 PM
Representative Wilson reiterated that big corporations and
foundations presently are not donating for fear that the
Alaska State Legislature & the State of Alaska will tap
those dollars.
JAMES BALDWIN, ATTORNEY, FRIENDS OF THE ALASKA'S CHILDRENS
TRUST (FACT), testified that the intent is that the
Legislature designates the recipient of the $12 million
dollars and makes a judgment regarding the Trust's ability
as a non-profit corporation to make their own
determinations. The new entity would become the Alaska
Community Foundation (ACF). He pointed out that all the
grants would be subject to some level of competitive. An
investigation and review of investment abilities of ACF
anticipates that it would provide the same or equal levels
of skill at a lesser cost than those of State managers.
2:22:45 PM
Representative Hawker advised that the uncodified law
requires a reversionary provision that if something bad
happens, the State receives the balance of the money back.
He recommended finding an organization that is "the best
at taking care of children and then vest the management
with those quality managers and leave the money with the
State. Mr. Baldwin said that would need to be a policy
call for the Legislature to make. The bill establishes a
structure with annual reporting to the Department of
Revenue. There are reversionary powers that are often
implied; he agreed that there is a clear right for the
State to get the money back if something bad does happen.
Representative Hawker asked the authority of the Department
of Revenue to take proactive action. Mr. Baldwin advised
that the bill clarifies who receives the reports; those
powers are available in Title 37. Representative Hawker
was not ready to accept that legal conclusion. He
requested to see a copy of the grant contract, which would
place $12 million dollars into public funds.
2:26:10 PM
Vice-Chair Stoltze asked what was wrong with the current
system. Representative Wilson hoped that the proposed
change could generate more donations through privatization.
She pointed out that the Alaska Mental Health Trust
receives funding through a different structure and that
they do not have the same complications as ACT.
Vice-Chair Stoltze understood that most trusts carry
similar responsibilities. He was not convinced of the need
for the legislation, adding that $12 million dollars is a
large investment.
2:28:50 PM
Representative Gara acknowledged that the goal to address
fund raising activities might only be met through
privatizing. Representative Wilson acknowledged that was
the main purpose.
Representative Gara summarized concerns regarding dedicated
donations. He asked how the State could get the money back
if the contract was breeched. He pointed out the intent to
manage the money as an endowment. He asked about projects
that the State approves. Current language could be
addressed on Page 3, Line 13, that the endowment is
administered for statewide ACT projects. He proposed
inserting language that the Commissioner of the Department
must approve those projects, providing some State
oversight.
Representative Wilson responded that the State must prepare
and execute an agreement with them as indicated on Page 3,
Line 7, which Amendment 1 changes to the Department of
Health and Social Services and describes the granting
conditions. Representative Gara pointed out that the
projects would continue to be left with the discretion of
ACT, who would no longer have to consult with the State
Advisory group.
2:33:36 PM
Ms. Lucier explained that ACT's the Governor appoints the
majority of the Board members and therefore, the State
would continue to have oversight. The mission of ACT does
not change.
Representative Gara hoped to guard against the State being
uncomfortable with where those funds are spent. The manner
in which the bill is written, ACT must consult with the
State Advisory group but does not necessarily have to
follow there recommendations.
2:35:32 PM
Representative Kelly asked if similar situations exist for
the State.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, replied that he was not
aware of any similar situations. It is called a Trust but
was set up through legislative authority. The concern
rests with the donors. Currently, as established, it is an
administrative problem & an investment issue for the
Department. It is set up as a principle and income bearing
account instead of as an endowment. The Department invests
the principle for capital gains and growth and only the
dividends and interest are spent. When the dividends and
interest are earned, the funds are transferred to an income
bearing account until the grants are made. There are no
even cash flows. If the State decides to keep the Trust,
the Department recommends changing it to an endowment. The
key is the structure of the grant agreement and how the
grant is designated in the capital budget for the $12
million dollars. Mr. Burnett recommended including
professional oversight and added that the Department of
Revenue is supportive of making the change.
2:39:31 PM
Representative Kelly clarified that the actual amount of
money available to the Trust is a spin-off from the $12
million dollars. Mr. Burnett explained that under the
current statutory scheme, $150 thousand dollars of the
principal from capital gains could be spent for
administering the fund and only dividends and interest can
be spent for grants.
Representative Kelly asked if the Trust would have access
to the corpus. Mr. Burnett stated that under HB 422, the
community group would receive the entire $12 million
dollars and would be required to manage it as an endowment,
spending only a set percentage. He stated that the
Department would no longer have control because the money
will be in private hands.
2:41:13 PM
SAMMI POKRYFKI, FACT BOARD MEMBER, ANCHORAGE, testified via
teleconference, echoed the comments made by Mr. Burnett.
She added, that because the Trust is currently not managed
as an endowment & only the interest & dividends are
available for grants, it is an unpredictable grant amount
from year to year. It is difficult to maintain prevention
programs and keep them going. The donors have concerns
that their donations would not be going where they
ultimately want them to go and that it is difficult to
raise money for the Children's Trust because of the issue.
2:43:55 PM
Representative Crawford supported establishing a structure
that allows the Trust to determine the way the funding is
spent. He agreed with concerns voiced by Representative
Hawker regarding the State managing the financial
responsibility for the Trust.
Representative Hawker addressed concerns regarding the
inconsistencies of the available dollars under the current
statutory scheme. He pointed out that HB 160 would change
ACT to an endowment.
2:47:05 PM
Representative Gara supported the language of the bill,
acknowledging concerns voiced by Representative Hawker and
Representative Crawford. He pointed out that the group
believes that they are deficient in their ability to raise
money and that there are no other alternatives for
addressing that except through the legislation. Ms. Lucier
interjected that the FACT Board has been informed that it
is unethical to raise funds as a professional board when
the donor-intent can not be guaranteed. The FACT Board has
decided, if the Trust is not privatized, FACT will dissolve
because they can no longer continue to fund-raise. If the
Board does dissolve, ACT looses their ability to raise
funds. She maintained that ACT helps to prevent more
children from entering into the State system.
2:50:37 PM
Representative Kelly asked if it would be possible to
create a "floor" which the fund could not drop below, when
allowing ACT to privatize. Mr. Burnett responded that as
currently written, it requires annual reporting; the key is
how the grant agreement is structured. He did not see any
reason why that language could not be added to the grant
agreement. Representative Kelly was satisfied with that.
2:52:01 PM
Vice-Chair Stoltze suggested that the bill be held in
Committee in order to draft a new committee substitute,
before it goes to the House Floor.
Co-Chair Meyer summarized the Committee's concerns and
asked Mr. Burnett if the corrections could be easily be
drafted. Mr. Burnett thought it could be addressed quickly
including the addition of mentioned stipulations. Co-Chair
Meyer requested that Mr. Burnett work with Ms. Armstrong to
make any necessary changes.
Representative Gara inquired about the oversight
references, wondering if the Trust would dissolve. Ms.
Lucier explained that the FACT Board intends to merge as
one into a 501(c)(3) Board with the Governor appointing the
majority of the trustees.
Representative Gara asked about the current structure of
the Board members. Ms. Lucier reiterated that all members
are appointed by the Governor.
Representative Gara questioned if any members were approved
by the Legislature. Ms. Lucier stated that all members are
approved by the Boards and Commission office.
2:56:34 PM
Representative Hawker raised the point regarding the grant
having their management vested in appointed individuals,
and including a reversionary clause. He inquired if the
result would be difficult for the Legislature's authority
to appropriate. He requested testimony from legal counsel
on the issue.
JEAN M. MISCHEL, LEGISLATIVE COUNSEL, DIVISION OF LEGAL AND
RESEARCH SERVICES, LEGISLATIVE AFFAIRS AGENCY, ANCHORAGE
testified via teleconference, clarified that there is no
clear answer to Representative Hawker's query. She stated
that public trust funds have never before been transferred
to a private group. She did not see a problem in terms of
the legislative delegation. She clarified that the
previous statement that the advisory group could function
as trustees of the Trust, is not what the bill
accomplishes. She noted that Page 3, Lines 9-10, clarify
that the non profit acts as the trustee of the grant fund.
Ms. Mischel recommended that "advisory group" be referred
to as an advisory board. Nothing in the proposed bill
establishes that board nor mandates that the Governor set
up that board. The bill only provides the condition.
Representative Hawker requested all technical
recommendations in writing.
3:00:46 PM
HB 422 was HELD in Committee for further consideration.
3:01:02 PM
HOUSE BILL NO. 314
An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of state transportation projects; and providing
for an effective date.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, spoke to the bill, which is the Governor's
legislation regarding the authorization of issuance and
sale of the General Obligation (GO) bonds. The Governor's
original request was $140 million dollars. Ms. Slagle
pointed out that the committee substitute (CS) from the
House Transportation Committee (HTC) increased the amount
to $170 million dollars. If that amount is ratified by a
majority of the State's qualified voters, the legislation
will provide authorization and the "full faith credit and
resources" of the State would be pledged toward the
principle.
Ms. Slagle stated that Section 2 establishes the FY2008
Transportation Project Fund, which takes the proceeds of
the bonds and places it into the fund. Sections 3-5
appropriates from the fund, the amount of $121.1 million
dollars to the Department of Transportation and Public
Facilities; the amount was changed to $151 million dollars
in the CS.
HB 314 provides funding for an appropriation from the
General Fund to the State Bond Committee to pay for
expenses incident to the sale and issuance of the bonds.
3:05:04 PM
Co-Chair Meyer referenced Line 20, the northern access to
the University medical districts study and wondered if it
should be included in the bond package. Ms. Slagle said
that it was an appropriate placement. The study will
provide information on how to approach the intersection
traffic relief in development areas.
Co-Chair Meyer noted a change made in the HTC to the
Gravina access. Ms. Slagle acknowledged it had been
included, pointing out that highway-paving projects were
included. Some projects were removed and the $45 million
dollars was placed in for the Gravina access project.
Co-Chair Meyer asked if the Administration supports the
change. Ms. Slagle reported that the Administration is
neutral.
Representative Hawker asked if the reference was to the
"bridge to no-where". Ms. Slagle did not comment on the
specifics of the project.
Co-Chair Meyer interjected that a new CS was forthcoming
and asked members to submit deletions or additions to the
projects included.
3:08:08 PM
Representative Gara inquired about the $45 million dollars.
Ms. Slagle explained that the $45 million would not be
enough to fund building a bridge. The funding would be
used for an environmental study. She stated that the money
has no impact on what the Department is doing.
Representative Gara requested design information before
committing money to the project. Co-Chair Meyer agreed.
3:09:46 PM
Vice-Chair Stoltze inquired the costs associated with the
Sunny Point intersection project in Juneau. Ms. Slagle
offered to research that information, indicating it is a
federal project.
3:10:08 PM
SHELBY BOOTH, PRESIDENT, BRISTOL BAY ASSEMBLY, NAKANAK,
testified via teleconference, indicated that the Borough
was attempting to secure State funding for assistance in
the dock repair. He discussed the amount of cargo that
passes through Bristol Bay, noting that Bristol Bay has
been working on the dock for five years. He related the
amount already invested in the project, commenting on the
rising costs associated with construction. He testified in
support of the bill as a source of revenue for the project.
Co-Chair Meyer asked the specific amount requested. Mr.
Booth said they were requesting $3 million dollars and that
completion of all phases of the project will cost $15
million dollars. Phase 1 alone should cost $7 million
dollars.
3:13:46 PM
STEVE RIBUFFO, DEPUTY PORT DIRECTOR, PORT OF ANCHORAGE,
testified via teleconference, stated that the Port of
Anchorage is truly Alaska's port, servicing over 90% of the
State and receiving over 80% of the goods and services. He
pointed out the declining condition of the Port and the
associated needs. He reminded the Committee that previous
Governor Sheffield would like to see a long-term solution
for the Port and to be given $100 million dollars over the
next five years.
3:16:31 PM
Co-Chair Meyer referred to Governor Sheffield's request for
the expansion and repair of the Port. He asked if the
request had been increased to $20 million dollars. Mr.
Ribuffo recommended consulting Governor Sheffield for his
opinion; he understood the request was for $10 million.
Co-Chair Meyer inquired if there would be a docking at the
Port of Anchorage ferry terminal. Mr. Ribuffo explained
that the Port of Anchorage was working with the Mat-Su
Borough to find a docking spot. The preference would be
the south end of the Port for managing security issues. He
discussed the relationship with the Mat-Su Borough on the
issue. Co-Chair Meyer supported working with the Mat-Su
delegation.
3:19:54 PM
Representative Gara asked about funding requests and
sources for funding for the Port project. He questioned
the amount of public oversight on the plans to date. Mr.
Ribuffo did not know. He understood that an environmental
assessment was available to the public, which resulted in
no objection for the project proceedings. He highlighted
the Anchorage Assembly's involvement with the financing.
Representative Gara emphasized that there had been no
oversight connected to the most efficient design for the
project and that the scope of project keeps increasing as
funds are available. Mr. Ribuffo disagreed. He opined
that the scope of the project has not grown, but rather the
price increase is due to higher costs for raw materials &
fuels.
3:23:11 PM
Representative Gara reviewed the history of the Port
expansion as a $100 million dollar project, which
currently, has increased to a $700 million dollar project.
He argued that prices have not increased that much. Mr.
Ribuffo did not know.
Representative Gara reviewed the history of the request for
the ferry, which lacks a business plan. He questioned the
economic justification of the project. Mr. Ribuffo
addressed the validity of the service to the Mat-Su Borough
& the City of Anchorage. The Port's involvement is with
the design and landing dock on the Anchorage side. A small
amount of engineering would be needed for an alternative
landing.
Representative Gara questioned if the addition should be
built if there is no business plan established yet. Mr.
Ribuffo replied that not until the Municipality of
Anchorage is satisfied, should the project proceed. Mr.
Ribuffo added there is no money coming out of the Port
expansion budget for the project. He could not speak for
the Mat-Su Borough. He added that there are plans for the
ferry to make trips to the Kenai. Discussion continued
between Mr. Ribuffo and Representative Gara regarding the
Port expansion.
3:28:13 PM
Representative Gara agreed with the need for the Port
expansion, however, found it difficult to accept the
project without a long-range scope and expanded plan.
Vice-Chair Stoltze voiced support for the Port expansion
priority.
Co-Chair Meyer asserted that the Mayor of Anchorage has
stipulated the importance of the project expansion.
3:31:52 PM
JAMES KING, DIRECTOR, DIVISION OF PARKS, DEPARTMENT OF
NATURAL RESOURCES, ANCHORAGE, testified via teleconference,
directed comments to building a new visitor Center in
Denali State Park on Curry Ridge. The construction project
would open up the park for greater access allowing it to be
open in the winter. There has become an increased demand
in the area for all seasons for visitors. The project
would improve access and provides economic benefits. He
pointed out public and industry support for the
legislation, emphasizing that the $8.9 million dollar
funding is critical to initiate the project.
3:36:41 PM
Vice-Chair Stoltze commented on the Legislature's process
in attempting to assemble a bond package. He inquired if
Mr. King had dealt in the public process and if that would
affect the bonding package. Mr. King explained that the
process has been long and drawn out while attempting to
determine the best solution. He thought that most everyone
was either supportive or in agreement to not fight the
process. There have been concerns voiced that the project
be done correctly, to not destroy any of the alpine.
3:38:45 PM
Representative Gara questioned the viability of the Denali
access road. He wanted to make sure that there was
community buy-in for the project before the dollars are
spent. He understood that the request was for the road
only in anticipation that someday, there would be a visitor
center.
Mr. King addressed the funding strategy, including the five
targeted funding sources:
• The State of Alaska
• The Centennial Initiative through the National Park
Service, which would be matching dollars from the
State's contribution of $9 million dollars.
• The National Park Service has also approached the
Washington D.C. delegation, who have indicated that
if the Alaska Legislature appropriates, the
delegation would be willing to finish the rest of
the project and build the visitor center.
• Private industry, specifically the tourism industry,
has requested financial support for the construction
of the center.
• Researched the Scenic By-Ways Program, who have
indicated support.
Mr. King concluded that the monies for building a visitor
center are hinged on the appropriations for the road
construction.
3:42:49 PM
Representative Gara wanted to guarantee that there is a
comprehensive project plan in place before money is spent
on building a road. He encouraged legislative discussion
of the project infrastructure, staffing, & associated
costs. He encouraged adding contingency language. Mr.
King acknowledged the concern; however, pointed out that
the project has been addressed for the past ten years and
that there has been a lot of planning already gone into it
& the funding concerns. Representative Gara reiterated his
previous concerns and suggested incorporating contingency
language.
3:50:13 PM
AVES THOMPSON, DIRECTOR, ALASKA TRUCKING ASSOCIATION (ATA),
ANCHORAGE, testified via teleconference, noted support for
the proposed project. [testimony inaudible].
3:53:34 PM
JERRY MCCUTCHEON, ANCHORAGE, testified via teleconference,
directed his comments to a ferry for the Kenai Peninsula,
which he did not believe would be in competition with the
bridge. Mr. McCutcheon added, he does not support building
the road to Curry Ridge. He recommended that project be
undertaken by the Alaska Railroad.
3:56:36 PM
PUBLIC TESTIMONY CLOSED
Co-Chair Chenault stated the bill would be HELD in
Committee for further consideration.
3:57:09 PM
HB 314 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 3:58 P.M.
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