Legislature(2007 - 2008)
04/10/2008 02:43 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| SB221 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 10, 2008
2:43 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting
to order at 2:43:37 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
None.
ALSO PRESENT
Bryan Butcher, Legislative Liaison, Alaska Housing Finance
Corporation; Pete Ecklund, Staff, Representative Kevin
Meyer; Rynnieva Moss, Staff, Representative John Coghill;
Representative Anna Fairclough; David Teal, Director,
Legislative Finance Division; Eddy Jeans, Director, School
Finance, Department of Education and Early Development;
John Bitney, Staff, Representative John Harris; James
Cunningham, Staff, Representative Bill Stoltze;
Representative Lindsey Holmes; Frank Richards, Deputy
Commissioner of Highways & Public Facilities, Department of
Transportation and Public Facilities; Leta Simons,
Director, Division of Support Services, Department of
Natural Resources.
PRESENT VIA TELECONFERENCE
Pat Galvin, Commissioner, Department of Revenue; Mike
Navarre, Arctic Power; Harold C. Heinze, Chief Executive
Officer, Alaska Natural Gas Development Authority.
SUMMARY
CS SB 221(FIN) am
An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date.
HCS CSSB 221 (FIN) was REPORTED out of Committee
with a "do pass" recommendation.
SB 289 An Act relating to home energy conservation and
weatherization for purposes of certain programs
of the Alaska Housing and Finance Corporation.
SB 289 was REPORTED out of Committee with a "do
pass" recommendation and with attached zero
fiscal note #1 by the Department of Revenue.
SENATE BILL NO. 289
An Act relating to home energy conservation and
weatherization for purposes of certain programs of the
Alaska Housing and Finance Corporation.
Co-Chair Meyer updated the status of the bill.
BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION (AHFC), explained that the bill would update
weatherization from a low-income program to a more general,
median-income program. Another program, the Energy
Efficiency Rebate Program, provides incentive for people
who do not qualify for the weatherization program.
2:46:42 PM
Representative Kelly asked if the ratio in the bill was
connected to another funding bill with a similar income
ratio. Mr. Butcher explained that the money for the funding
bill was separate, and had been locked in. The ratio in SB
289 could be adjusted. Representative Kelly stated that he
did not think the one-third/two-thirds ratio was proper.
Vice-Chair Stoltze MOVED to REPORT SB 289 from Committee
with individual recommendations and attached fiscal note.
There being NO OBJECTION, it was so ordered.
SB 289 was REPORTED out of Committee with a "do pass"
recommendation and with attached zero fiscal note #1 by the
Department of Revenue.
CS FOR SENATE BILL NO. 221(FIN) am
An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date.
AT EASE 2:49:50 PM
RECONVENE 2:51:07 PM
Co-Chair Meyer MOVED to ADOPT Amendment #1 (Copy on File):
1) Language section: Page 204 lines 10 and 11;
a. Delete: Department of Transportation and
Public Facilities
b. Insert: as a grant under AS 37.05.315 to the
Municipality of Anchorage
Moves project to the correct recipient
2) Numbers section: Page 180 line 32
a. Delete: Improvements
b. Insert: Facility Improvements
Title correction
3) Numbers section: Page 53 line 8 and 9
a. Delete: East Boat Harbor Feasibility Study
b. Insert: Spit Trail Completion/Harbor Pathways
Title correction
4) Language section:
Page 193; Delete: Section 30(e)
Page 201; Delete: lines 28-30
Insert the following on page 201, line 28 and
renumber accordingly:
(b) The sum of $1,127,820 is appropriated from
the general fund to the major maintenance grant
fund (AS 14.11.007) for payment as grants by the
Department of Education and Early Development to
the school districts listed for the projects
described in the amounts set out:
Adjusts the above language to mirror other major
maintenance school grants in the capital bill
5) Language section:
Page 203 line 9
a. Delete: 39,000,000
b. Insert: 39,123,200
Page 203 line 10
c. Delete: 23,140,000
d. Insert: 23,016,800
Page 203 line 12
e. Delete: 70,000,000
f. Insert: 70 ,640,000
Language correction suggested by ADF&G/Law
6) Numbers section:
Page 93 lines 5-6
a. Delete: Ester Volunteer Fire Department
b. Insert: Fairbanks North Star Borough
c. Move to Grants to Municipalities in the same
section of the bill
Recipient correction
7) Language Section (25-GS2007\N.1 Bailey)
Page 193, following line 28:
a. Insert a new subsection to read:
"(f) The sum of $5,000,000 is appropriated from
the general fund to the information services fund
(AS44.2 J.045(a))."
b. Page 208, line 1, following "30(d),"
c. Insert "30(f), "
Corrects ISF fund capitalization which was
inadvertently left out of the N draft
8) Numbers Section:
Page 120 line 19-22
a. Delete all material
Page 123 line 3-6
b. Increase to 300,000 general funds (plus
75,000)
c. Amend title to say: "Fairbanks North Star
Borough - Steese Aerial Ladder Fire/Rescue
Truck (HD 7-11)"
Corrects the recipient and title and is a net
decrease of 150,000 in general funds
9) Numbers Section:
Page III line 8
Delete: "Construction"
Insert: "Educational Books and Library Materials,
Furnishings, and Equipment" Corrects project
title
10) Numbers Section: Page 28 line 27-28
Delete:' Outdoor Bathroom Facilities'
Insert: 'Passenger and Baggage Facilities'
11) Language Section:
Page 205 lines 18-24
a. Delete all material
b. Insert: "ALASKA ENERGY AUTHORITY. The
unexpended and unobligated balance, not to exceed
$10,000,000, of the appropriation made in sec.
78(c), I, SSSLA 2002 (Alaska Energy Authority,
upgrade and extend the Anchorage to Fairbanks
power transmission intertie to Teeland substation
-$20,300,000) is re-appropriated to the
Department of Commerce, Community, and Economic
Development, Alaska Energy Authority, for the
Alaska intertie static VAR compensators and tower
upgrade and repair."
Add capital lapse provisions and June 30effective
date
This restores the language included in an earlier
version of the bill
12) Numbers Section
Page 132 lines 21-24
Delete all Material
Insert: in Section 13 grants to municipalities
Kenai Peninsula Borough: Bear Creek Fire Service
Area-Community Multi Use Facility
Amount: $55,000 GF
This is a net zero correction
Vice-Chair Stoltze OBJECTED.
PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, explained
the Amendment as addressing technical changes. He pointed
out the fund capitalization to the information services
fund for $5 million that was inadvertently dropped.
Representative Crawford referred to item 11) and asked
about the intertie for $20,300,000. Mr. Ecklund explained
the item as language included in the Senate's version of
the bill. The Amendment goes back to an earlier version of
the bill. Representative Crawford asked where the intertie
was. Mr. Ecklund thought the line went between Anchorage
and Fairbanks.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #1 was adopted.
2:55:41 PM
Co-Chair Meyer MOVED to ADOPT Amendment #1A (Copy on File):
1) ADD to Section 10 of the SB 221
Agency: Commerce, Community and Economic
Development Project: Chalkyitsik - Overhead
Electrical Distribution System Wiring Renovation
Amount: $100,000 General Fund
2) Page 92, line 28
Delete $4,000,000
Insert $5,000,000
Adds $1 million to the Covenant House Expansion
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that item 1) was scheduled to be in
the bill. There was confusion about the appropriation so it
was left off. After further clarification it was put back
in.
Co-Chair Meyer spoke to the second item, the Covenant House
Expansion. The House is for homeless teenagers in
Anchorage. There are more teenagers with need than the
facility can handle, so they are looking for a new location
for a new building. Originally the item was for $4 million.
They need $10 million but would be able to move forward
with $5 million.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #1A was adopted.
2:58:15 PM
Co-Chair Meyer MOVED to ADOPT Amendment #2 (Copy on File):
Page 202, line 11
Delete $3,720,841
Insert $4,504,401
Page 202, following line 26
Add the following projects:
Anchorage: Asplund Wastewater 206,000
Treatment Facility
Disinfection Upgrade
Fairbanks: Wastewater 91,535
Treatment Facility Plant
Clarifier Rehabilitation
Fairbanks North Star Borough: 103,500
Pioneer Park Water and Sewer
Enhancement
Juneau: West Mendenhall 111,755
Valley Sewer Expansion Phase
II
125,351
Juneau: North Douglas Sewer
Expansion Phase III
Juneau: East Valley 41,918
Reservoir/Jordan Creek
Rehabilitation Project
Matanuska-Susitna Borough:
Central Landfill Expansion l03,500
Phase IIIB
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Amendment would add the
additional state funding match required to the above
projects impacted by the changes of AS 46.03.030(e) in SB
303. These projects are impacted by an amendment adopted to
SB 303 that increases the 50% state match to 60% state
match for projects in municipalities with a population
greater than 10,000.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #2 was adopted.
2:59:15 PM
Co-Chair Hawker MOVED to ADOPT Amendment #3 (Copy on File):
Page 205, line 2-5
Delete All Language
Insert:
The sum of $500,000 is appropriated from the
regional cruise ship impact fund (AS 43.50.230(c»
to the Department of Transportation and Public
Facilities to provide operating hours of the
Whittier Tunnel needed to service cruise ship
vessels and accommodate access requirements
effected by or supporting vessel servicing for
the fiscal year ending June 30, 2009.
Vice-Chair Stoltze OBJECTED.
Representative Hawker explained that the Amendment was
technical in nature. Mr. Ecklund said the funds are to be
used for regions impacted by cruise ship passengers. Co-
Chair Meyer added that the language clarifies intent.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #3 was adopted.
3:01:02 PM
Co-Chair Meyer MOVED to ADOPT Amendment #4 (Copy on File):
*Sec. A. HOUSE DISTRICT 12. The unexpended and
unobligated balance of the appropriation made in
sec. 1, ch. 82, SLA 2003, page 17, lines 13-17
(Copper River School District, Glennallen
Elementary School roof design and engineering -
$119,000) is reappropriated to the Department of
Commerce, Community and Economic Development for
payment as a grant under AS 37.05.316 to the
Copper River School District for facility
maintenance and repair.
*Sec. B. LAPSE. The appropriation made by sec. A
of this Act is for a capital project and lapses
under AS 37.25.020.
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained the net zero appropriation as a re-
arranging of the use of the money.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #4 was adopted.
3:01:44 PM
Co-Chair Meyer MOVED to ADOPT Amendment #5 (Copy on File):
1. Page 63, line 19-22, Delete all Material.
2. Page 134, line 27, Add $4,500,000 General
Funds
Explanation:
The Governor had requested $4.5 million to the
Department of Education and Early Development for
the "Alaska State Library, Archives and Museum:
Planning and Design of New Facility."
The actual cost of phase 1 of the project is $7.5
million and the Juneau delegation had requested
an additional $3 million be added to the
Governor's request.
The $3 million was included in the Senate version
of SB22l, but the Governor's request for $4.5
million was not.
When the House added the Governor's request back
into the bill, it was added in a separate section
at $1.5 million rather than $4.5 million.
This amendment corrects and consolidates the
appropriation into a single line item. The
project will be funded at $7.5 million.
Fund Source: General Fund
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Amendment consolidates an
appropriation that appears in two sections of the bill into
one section.
Co-Chair Meyer added that the Amendment was a priority of
the city of Juneau.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #5 was adopted.
3:03:26 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #6 (Copy on
File):
Page 56, following line 8: Insert new material to
read:
Matanuska-Susitna Borough Butte Elementary
School: Library/Technology Upgrade (HD 13-16)
$7,500
Co-Chair Meyer OBJECTED.
Vice-Chair Stoltze explained that the Amendment funds
library and technology upgrades for the Butte Elementary
School. This is similar to funding requests for other
Anchorage and Mat-Su Valley schools in the CS.
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #6 was adopted.
3:04:20 PM
Co-Chair Meyer MOVED to ADOPT Replacement Amendment #7
(Copy on File):
Page 67, lines 14-19:
Delete all material.
Adjust fund source and totals accordingly.
Page 205, line 8, following "GOVERNOR.":
Insert "(a)"
Page 205, following line 11:
Insert new subsections to read:
"(b) The sum of $25,000 is appropriated from the
general fund to the Office of the Governor to
facilitate educating the public regarding current
state regulations of mining and mining activities
in the state, including providing information to
influence the outcome of an election on
initiatives affecting those mining activities,
for the fiscal years ending June 30, 2008, and
June 30, 2009.
(c) It is the intent of the legislature that the
appropriation made by (b) of this section meet
the requirements of AS 15.13.145."
Page 208, line 2, following "55(d),":
Insert "59(b),"
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Amendment was at the request
of the Rules Committee Chairman to add clarifying language
to an already existing $25,000 appropriation.
Representative Gara stated concerns about money
appropriated from the General Fund to influence the outcome
of an initiative.
RYNNIEVA MOSS, STAFF, REPRESENTATIVE JOHN COGHILL,
explained that AS 15.13.145(b) says that money held by
certain entities may be used to influence the outcome of an
election concerning a ballot proposition or question, but
only if the funds have been specifically appropriated for
that purpose by a state law or municipal ordinance. The
Amendment assigns $25,000 to the Governor to address what
effect the passage or failure of the initiative would have
on the mining industry.
Representative Gara understood that it might be authorized
by statute, but he questioned whether it was right.
Representative Thomas hoped the State would be open-minded
and give facts on both sides. He supports the Amendment
from that stance.
Vice-Chair Stoltze queried how game issues would be
impacted.
Ms. Moss replied that science would be allowed to be
included in the information provided.
3:09:22 PM
Representative Crawford spoke to concerns about the State
weighing in on initiatives. He called for clarifying
language stating the information must be objective in order
to prevent bias.
Co-Chair Chenault thought it was the responsibility of the
State to inform the public on both sides, which could help
citizens discern the issue.
Representative Hawker read the Amendment as providing
constraint on the information provided the public about
mining activities. The election would have $25 million
dollars in funding on both sides, and it made sense to him
for the State to spend $25,000 to say there is a regulatory
process.
Representative Gara asked if the Administration was
targeting the clean water initiative. Ms. Moss said yes.
Representative Gara stated that he closely followed the
issue and thought the State made it hard to get the
initiative on the ballot, indicating that the
Administration does have a position. He did not want the
money to be spent to influence the election. He wanted to
delete the clause "provide information to influence the
outcome of an election."
3:15:11 PM
Representative Joule pointed out that the State has had the
option to weigh in on any issue, but it seldom has. He
stated his support for the Amendment.
Representative Crawford reiterated concerns about the
government weighing in on the outcome of initiates. He
called for an amendment to the Amendment to add "unbiased"
before information to replace "influence the outcome of
an election" with "inform about an election."
Vice-Chair Stoltze believed that the Administration has
been even-handed. He stated confidence in the
Administration exercising integrity.
Representative Crawford clarified that he was talking about
the future of initiatives and felt precedence was being
set. He wanted unbiased information. He had confidence the
Palin administration would exercise discretion, but wanted
the language added for future administrations.
3:19:55 PM
Ms. Moss reminded the Committee that the Amendment was
written to comply with the language of the statute.
Representative Gara did not think anything improper had
been done related regarding the present initiative. He did
not want government involved in initiatives.
Ms. Moss clarified that the Amendment came from the Rules
Committee and a desire for science to be involved in the
decisions made on the mining initiative.
Representative Nelson referred to legislation related to
disclosure of funding sources for initiatives. She stated
concerns about out-of-state money going into the initiative
process. The federal government owns much of land in
Alaska, which makes Alaskan issues compelling to outside
interests. The process of making legislation is
deliberative, but initiatives are more emotional. Alaska
has a good record on the mining issue, but fear is being
capitalized upon. She thought the Amendment should allow
more money to be spent on this particular initiative.
3:25:03 PM
Representative Kelly supported the language in the
Amendment. He worried that each piece of information could
be challenged to be perfectly neutral. He cautioned against
changing the language.
Representative Thomas gave an example of controversy over a
mine. He wanted the State to give the facts about
regulating mining.
Representative Joule described his experience with the Red
Dog Mine. He did not know where the line was between
getting information out and bias. He supported the
Amendment as written.
3:30:29 PM
Representative Crawford reiterated his support for the mine
and the mining industry in the state. He did not understand
why people were afraid of the word "unbiased." He
anticipated a disagreement with a future administration. He
stated his frustration and withdrew his proposed amendment.
Representative Gara reiterated concerns about the State
taking sides.
Representative Gara MOVED amendment #1 to Replacement
Amendment #7: After the word "State,delete "including
providing information to influence the outcome of an
election on initiatives affecting those mining activities."
That way the appropriation could be used for education.
Representative Kelly OBJECTED for DISCUSSION.
3:35:40 PM
Representative Kelly referred to his experience with
advertising done on mining issues. Both sides seemed
equally strong. He thought the State could provide accurate
information that would properly influence an election. If
the language was taken out, the State might not have the
power to truly educate. He did not support the amendment to
Replacement Amendment #7.
Representative Hawker opposed the amendment to the
Amendment. He characterized the language to be removed as
afe harbor" language that could protect the State. He
worried that the State could be sued by either side of an
issue.
Representative Gara WITHDREW his amendment to the
Amendment.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Replacement Amendment #7 was adopted.
3:41:25 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #8 (Copy on
File):
Insert new material into sec. 10 to read:
Anchorage - Eagle River Town Center (HD 17-32)
General Fund 1,200,000
Adjust fund sources and totals accordingly.
This amendment allows the Municipality of
Anchorage to purchase about40% of the Valley
River Center building in Eagle River (43,000),
which it would own in a condominium arrangement.
This space would be renovated to house an
expanded Chugiak-Eagle River Library, Police
substation, Emergency Operations Annex, Community
Meeting Room, and all Eagle River Municipal
Offices and Services including Chugiak-Eagle
River Parks & Recreation, Development
Services/Permitting, Road Maintenance, Health &
Human Services/WIC Program and the Assessors'
office.
The Eagle River community has sought for many
years to develop a Town Center that would
incorporate both retail space and public
facilities including Library, meeting rooms, and
Municipal offices and services. The project
described here would fulfill this vision,
consistent with a central recommendation of the
2003 Eagle River Central Business District
Revitalization Plan. The CBDR Plan was developed
with extensive public involvement and foresaw
many economic and community benefits arising from
the synergies of such a town core development.
Co-Chair Meyer OBJECTED.
REPRESENTATIVE ANNA FAIRCLOUGH, addressed the Amendment.
3:44:01 PM
Representative Gara understood the project was relatively
new. He asked for backup information on the project.
Representative Fairclough described support from the
municipal assembly and the Eagle River Chugiak Chamber of
Commerce as well as the mayor of Anchorage. Vice-Chair
Stoltze pointed out a letter from the Mayor. He apologized
that the project had not been introduced in a timely
manner.
Representative Hawker pointed to public testimony on the
record from the Eagle River Chamber of Commerce.
Co-Chair Chenault asked about matching funds.
Representative Fairclough said the Rasmussen Foundation had
pledged $4 million for library support and the Mayor has
pledged support. Vice-Chair Stoltze gave more details about
a service area match.
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #8 was adopted.
3:47:40 PM
Representative Thomas MOVED to ADOPT Amendment #9 (Copy on
File):
P. 67, line 14
Insert: Cordova Area Skate $50,000 Fishery
Development (HD 1-40)
Co-Chair Meyer OBJECTED.
Representative Thomas explained the Amendment:
This project will enable ADF&G to conduct an
exploratory state-waters directed fishery for
skates in the Cordova area. Local fishermen and
processors have expressed interest in a new
fishery that will increase opportunities for
entry level fishermen. The fishery will help the
industry by augmenting economic activity at times
when the salmon fishery is closed. This new
fishery will help by providing an opening that
involves lower initial costs to fishermen. If a
permanent directed fishery can be established,
registration will be open to all commercial
fishermen.
In order to fulfill its statutory
responsibilities for management, the Department
of Fish & Game needs funding in order to collect
data on stock distribution, abundance, size, sex
and age data, and by-catch percentages. Without
this critical data, the Board of Fish will not
have adequate information to approve a full-scale
directed fishery. The Commissioner of Fish and
Game and the Director of Commercial Fisheries
have indicated that the requested funding is the
minimum amount that will enable them to complete
the necessary work.
3:49:02 PM
Co-Chair Chenault asked if skate was the poor man
scallop. Representative Thomas replied in the affirmative.
Co-Chair Chenault asked if the project would be on-going
and if it would be incorporated into the Department's
budget. Representative Thomas replied it would be a one-
time source, but if productive, it might be put into the
budget.
3:50:09 PM
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #9 was adopted.
3:50:13 PM
Co-Chair Chenault MOVED to ADOPT Amendment #10 (Copy on
File):
Challenger Learning Center
Page 37, lines 16-18:
Delete all material (contingency language).
Co-Chair Meyer OBJECTED.
Co-Chair Chenault explained the Amendment as an attempt to
help the Challenger Learning Center stay open while growing
in self-sufficiency.
3:51:26 PM
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #10 was adopted.
3:51:32 PM
Co-Chair Meyer MOVED to ADOPT Amendment #11 (Copy on File):
Amend sec. 23, Department of Commerce, Community,
and Economic Development, by adding a new
subsection to read:
(e) The sum of$164,000 is appropriated from the
general fund to the Department of Commerce,
Community, and Economic Development, community
and regional affairs, for grants administration
costs for the fiscal year ending June 30, 2009.
This needs the July 1, 2008 effective date.
Co-Chair Chenault OBJECTED.
Co-Chair Chenault explained the Amendment:
This additional funding is required to manage the
ever-increasing number of grants appropriated
through the department. In Chapter 11, SLA 2008
(SB 256), 51 grants totaling $12.3 million were
appropriated to the department. This version of
the capital budget adds over 800 grants totaling
several hundred million dol1ars.
This increase is added to the existing workload
of approximately 1,800 grants, resulting in a
total of approximately 2,600 grants. The
department currently has eight grant
administrators to handle the existing workload;
an average of225 grants per administrator.
The department needs two more Grants
Administrators, range 17A ($82.0 each) to process
the grants as soon as possible. The grants in SB
256 were appropriated with the intent that they
be executed in time for the spring barges for
remote areas -in less then 60 days. The grant
workload may result in delays of issuance of FY
2009 grants and could result in the department
being in violation of Alaska statutes that
require legislative grants be issued within
specific timeframes. With the large number of
grants, it becomes difficult for the staff to
provide grant recipients with much needed
technical assistance, maintain grant expenditure
accountability, and ensure strict state and
federal compliance standards are met. In
addition, grants managers must respond to the
hundreds of inquiries about the status of grants
throughout the year.
In summary, these two positions are requested to
provide an important public service as well as
ensure compliance with minimum standards and
statutes.
Co-Chair Chenault REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #11 was adopted.
3:54:01 PM
Co-Chair Meyer MOVED to ADOPT Amendment #12 (Copy on File):
Delete from Department of Transportation and
Public Facilities, sec. 10, page 157, lines 24-
28:
Klatt Road Pedestrian FacilitiesConstruct C
Street Trail to Via Appia Way (North Side) (HD
17-32)
$220,000 General Fund
Add to Department of Commerce, Community and
Economic Development, sec. 10, page 76:
Klatt Road Pedestrian FacilitiesConstruct C
Street Trail to Via Appia Way (North Side) (HD
17-32)
$220,000 General Fund
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained:
Klatt Road is currently a state-owned road,
however, the pedestrian facilities to be added
will be owned by the Municipality of Anchorage.
Therefore, this appropriation should go to
Anchorage via a grant through the Department of
Commerce, Community and Economic Development.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #12 was adopted.
3:54:55 PM
Co-Chair Meyer MOVED to ADOPT Amendment #13 (Copy on File):
Amend sec. 58, Department of Transportation and
Public Facilities, by adding a new subsection to
read:
(k) The sum of $426,375.47 is appropriated from
the General Fund to the Department of
Transportation and Public Facilities, marine
vessel operations, for payment of the arbitration
award to the International Organization of
Masters, Mates, and Pilots for the fiscal year
ending June 30, 2008.
Amend sec. 68 by adding sec. 58(k) so the
effective date is April 13, 2008.
Vice-Chair Stoltze OBJECTED.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #13 was adopted.
3:56:05 PM
Co-Chair Meyer MOVED to ADOPT Amendment #14 (Copy on File):
Amend the title of the project on pg. 153, line
28 to read:
Statewide [SOLDOTNA STATE TROOPER POST] Facility
Deferred Maintenance / Repair / Renovation /
Improvements (HD 33-35)
$199,880
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained:
This Amendment will give the department
flexibility to reallocate funding between
projects as needed to deal with the projects
listed as well as address additional high
priority facility issues that may arise. This
flexibility is needed to ensure that all
department facilities have necessary maintenance
funding.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #14 was adopted.
Representative Kelly referenced Amendment #13 and requested
information from the Administration regarding the
settlement payment. He acknowledged that it needs to be
paid, but expressed concerns about seeing it again.
3:58:36 PM
Co-Chair Meyer MOVED to ADOPT Amendment #15 (Copy on File):
Delete from Department of Commerce, Community and
Economic Development, sec. 10, page 56, lines 5-
8:
Matanuska-Susitna BoroughBurma Road Realignment,
Upgrading and Paving (HD 13-16)
$5,000,000 General Fund
Add to Department of Transportation and Public
Facilities, sec. 10, page 76:
Matanuska-Susitna BoroughBurma Road Upgrade (HD
13-16)
$5,000,000 General Fund
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Burma Road is a state-owned
road so the Department of Transportation and Public
Facilities is the responsible party for road upgrades.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #15 was adopted.
3:59:29 PM
Representative Joule WITHDREW Amendment #16. He thanked
Marsha Davis for answering the questions that need to be
answered.
Amendment #17 was not included in the packet.
4:00:24 PM
Representative Thomas MOVED to ADOPT Amendment #18 (Copy on
File):
Page 180, Line 27
DELETE: $4,500,000
Insert: $2,500,000
Page 180, Line 32
INSERT: Skagway -Dahl Memorial Clinic Relocation
and Expansion
Amount: $2,000,000
Funding Source
Cruise Ship Passenger Vessel Tax Account (AS
43.52.040)
Vice-Chair Stoltze OBJECTED.
Representative Thomas explained the Amendment:
The municipality of Skagway sees the thirdhighest
number of cruise ship passengers in the state.
The impacts on this community of 800 are far
greater than perhaps anywhere else in the state
since what little infrastructure Skagway has is
strained to the breaking point to accommodate
such a high influx of people.
One of the areas that sees a major impact from
cruise ship passengers is the clinic. The cruise
industry makes up about 30% of the total visits
during the year. This includes dealing with one
or two cruise ship passenger deaths each year.
Also, the emergency room visits go up about 50%
due to cruise ship passengers.
Due to the fact that it was built for a smaller
community, the medical clinic in Skagway is
woefully inadequate and no longer meets the needs
of the community. Shortcomings include size,
available technology, and compliance to building
codes. Skagway is often isolated from access to
the nearest emergency medical care found in
Whitehorse or Juneau because of severe weather
that disrupts ferry service, aircraft flights,
and travel on the Klondike Highway.
The new clinic will be approximately 14,000
square feet in size. The size of the Clinic is
based on industry standards and Denali Commission
program requirements. Space will be provided in
the clinic to house administrative, exam, triage,
laboratory, radiology, urgent care, dental,
behavioral health and training spaces.
Representative Thomas WITHDREW Amendment #18.
4:02:31 PM
Representative Thomas MOVED to ADOPT Amendment #19 (Copy on
File):
Page 180, Line 21
DELETE: $1,250,000
Insert: $250,000
Page 181, Line 8
DELETE: $1,250,000
Insert: $250,000
Page 150, Line 32
INSERT: Skagway -Dahl Memorial Clinic Relocation
and Expansion
Amount: $2,000,000
Funding Source
Cruise Ship Passenger Vessel Tax Account (AS
43.52.040)
Vice-Chair Stoltze OBJECTED.
Representative Thomas WITHDREW Amendment #19.
4:04:01 PM
Representative Thomas MOVED to ADOPT Amendment #20 (Copy on
File):
Insert a new subsection to read:
"(c) The sum of $35,400,000 is appropriated from the
general fund to the Department
of Commerce, Community, and Economic Development,
fisheries enhancement revolving
loan fund (AS 16.10.505), for the fiscal year ending
June 30, 2009, for salmon hatchery debt
retirement for the following hatcheries:
PURPOSE ALLOCATION
(I) Douglas Island Pink and Chum
$4,000,000
(HD 3)
(2) Gunnuk Creek Hatchery (HD 5) 7,000,000
(3) Prince of Wales Hatchery
1,800,000
Association (HD 5)
(4) Southern Southeast Regional 7,500,000
Aquaculture Association (HD 1)
(5) Prince William Sound
5,000,000
Aquaculture
Corporation (HD 5)
(6) Valdez Fisheries Development
7,500,000
Association (HD 12)
(7) Cook Inlet Aquaculture
Association (HD 34) 2,600,000"
Vice-Chair Stoltze OBJECTED.
Representative Thomas explained the Amendment as asking for
debt relief. He expressed concerns. Vice-Chair Stoltze
agreed with Representative Thomas concerning the fishery
enhancement. Representative Thomas pointed out that three
percent of the gross is paid for an enhancement tax. There
have been attempts to get sport fishermen to contribute.
Representative Thomas WITHDREW Amendment #20.
AT EASE: 4:08:37 PM
RECONVENE: 5:54:31 PM
Co-Chair Meyer MOVED to ADOPT Amendment #21 (Copy on File):
Amend section 30, Fund Transfers, by adding new
subsections to read:
(f) The sum of $100,000,000 is appropriated from
the general fund to the oil and gas tax credit
fund (AS 43.55.028(a).
(g) The sum of $225,000,000 is appropriated from
the general fund to the oil and gas tax credit
fund (AS 43.55.028(a).
Section f is effective June 30, 2008. Section g
is effective July 1, 2008.
Vice-Chair Stoltze OBJECTED.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained the Amendment:
The Department of Revenue has increased its
estimate of the amount necessary for tax credits
earned in FY08 to $250 million. The amount in the
fund is $150 million, $25 million from the FY08
operating budget and $125 million from the fast
track supplemental. Section f adds $100 million
to pay anticipated FY08 claims.
The department increased its estimate for FY09
credits to $400 million. The amount included in
the FY09 operating budget is $175 million.
Section g adds $225 million to the fund in order
to pay anticipated FY09 claims. If FY08 claims
exceed the amount available in FY08, FY09
appropriations to the fund can be used to pay
FY08 claims.
The state will pay the same amount for these tax
credits regardless of whether money is
appropriated for this purpose. If money is
appropriated, it is more likely that state
payments will go to those who earned the credits.
If money is not appropriated, those who earned
the credits are likely to sell them at a discount
to major producers who can turn them in for full
credit against their production tax liability.
PAT GALVIN, COMMISSIONER, DEPARTMENT OF REVENUE (testified
via teleconference), explained the $325 million needed for
tax credits for exploration activities. Outfits without
current production to apply credit against had to sell
those and deduct from the receipt from the State. ACES
lifted the cap from non-producers. The challenge was how
much would be spent. There has been more activity than
expected. The credits exceeded what was originally
allotted. The Amendment requests more money to pay the
credits.
Co-Chair Meyer pointed out that although it would be hard
to pay the extra money, it was good there has been a lot of
oil and gas activity. Commissioner Galvin agreed and
pointed out the additional activity undertaken by companies
not currently producing in the state.
5:59:09 PM
Co-Chair Chenault supported investment, but was concerned
that there was so little notice to the Legislature. He was
curious regarding communication between Department of
Natural Resources and Department of Revenue in estimating
the dollar amount. Commissioner Galvin did not think the
issue was a communication breakdown, but implementing a new
tax and communicating about new issues. The April 1 returns
were a surprise for those doing the estimating. He hoped
the surprise would not be repeated.
Representative Gara wondered if the credits were counted as
expenditures or as less revenue.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #21 was adopted.
Co-Chair Chenault MOVED to roll Amendment #22. There being
NO OBJECTION, it was so ordered.
Co-Chair Chenault MOVED to ADOPT Amendment #23 (Copy on
File):
Arctic Power Appropriation
Page 34, line 10:
Delete "120,000"
Insert "250,000"
Co-Chair Meyer OBJECTED.
Co-Chair Chenault explained that the Amendment raises the
appropriation to Arctic Power to prevent the Arctic
National Wildlife Refuge (ANWR) from becoming a wilderness
area.
6:06:18 PM
Vice-Chair Stoltze supported the Amendment.
Representative Joule pointed out that ANWR is in his
district. He wants the area opened for exploration. He
thought the request was appropriate and stated his support
of the Amendment.
Representative Gara was troubled that Arctic Power had used
State money for advertisements targeting congressional
members. He did not think it wise to spend money to keep
the office open.
MIKE NAVARRE, ARCTIC POWER (testified via teleconference),
explained that the requested amount was to continue the
presence of Arctic Power in Washington, D.C. The additional
amount would fund another position after the presidential
elections. He explained the process of educating
congressional members in order to be prepared if the issue
of ANWR comes up.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #23 was adopted.
6:11:44 PM
Co-Chair Chenault MOVED to ADOPT Amendment #24 (Copy on
File):
Page 86, line 20:
Add after "Alaska Energy AuthorityFire Island
Wind Farm Transmission Lines ($25,000,000)"
Vice-Chair Stoltze OBJECTED.
Representative Crawford explained that the Amendment
clarifies that the $25 million is contingent on the owner
of generation being legally obligated to build a generation
facility through power sales agreements that are in place
to accept the generation.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #24 was adopted.
6:12:44 PM
Representative Kelly MOVED to ADOPT Amendment #25 (Copy on
File):
Page 172, Line 31
Project: Fairbanks North Star BoroughRoad
Service Area Projects (HD 7-11)
Delete: $5,000,000
Insert: $9,949,000
Vice-Chair Stoltze OBJECTED.
Representative Kelly explained that the Amendment would
cover the full amount requested by the Fairbanks North Star
Borough for road service area projects.
Co-Chair Meyer stated his support for the Amendment.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #25 was adopted.
6:14:25 PM AT EASE
6:18:48 PM RECONVENE
Representative Kelly MOVED to ADOPT Amendment #26 (Copy on
File):
Agency: University of Alaska
Project: Tanana Valley Campus
Amount: $4,000,000
Funding Source: General Fund
Co-Chair Chenault OBJECTED.
Representative Kelly explained that the project would
include exterior envelope renovation, civil site
improvements, interior mechanical and electrical upgrades,
interior hydronic heating, interior direct digital
controls, and approximately 3000 square feet of renovated
program space.
Co-Chair Chenault asked if the amount was already figured
in the operating costs. Representative Kelly said the
operating costs should go down after the renovations.
Co-Chair Chenault REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #26 was adopted.
6:21:20 PM
Co-Chair Meyer MOVED to ADOPT Amendment #27 (Copy on File):
Amend sec. 59, Office of the Governor, by adding
a new subsection to read:
(b) The unexpended and unobligated general fund
balances on June 30,2008, of the appropriations
made in sec. 1, ch. 28, SLA 2007, page 16, line
22 (Office of the Governor, commissions/special
offices - $1,848,400); sec. 1, ch. 28, SLA 2007,
page 16, line 26 (Office of the Governor,
executive operations - $10,795,200); sec. 1, ch.
28, SLA 2007, page 16, lines 31 32 (Office of the
Governor, state facilities rent -$815,600); sec.
1, ch. 28, SLA 2007, page 17, lines 5 - 6 (Office
of the Governor, office of management and budget
- $2,043,600); and sec. 1, ch. 28, SLA 2007, page
17, line 9 (Office of the Governor, elections -
$3,005,500) are reappropriated to the Office of
the Governor for operating costs for the fiscal
year ending June 30,2009.
Amend sec. 69 (June 30, 2008 effective date) by
adding a reference to sec. 59(b).
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained:
This is the annual reappropriation of remaining
FY08 balances in the Office of the Governor that
is necessary to fund FY09 expenditures. It is
anticipated that the FY201 0 budget will be
developed so that this annual reappropriation
will not be necessary at the end of FY09.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #27 was adopted.
6:22:16 PM
Representative Crawford MOVED to ADOPT Amendment #28 (Copy
on File):
Page 23, line 4
Delete: 30,000 General Fund
Insert new project in Section 10, under Grants to
Municipalities (renumber accordingly)
Anchorage Scotty Gomez Skating Rink Tikishla
Park Improvements
$30,000 General Fund
Vice-Chair Stoltze OBJECTED.
Representative Crawford explained the $30,000 general funds
deleted from Totem Ball Fields and transferred in order to
rebuild the Scotty Gomez Skating Rink. He said there was a
$30,000 match from the Scotty Gomez Foundation.
Co-Chair Meyer asked for clarification. Representative
Crawford explained the Totem Ball Fields would be reduced
by that amount.
Representative Gara wanted to consider not deleting the
amount from the ballpark appropriation. Representative
Crawford said that would not be necessary.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #28 was adopted.
6:26:41 PM
Representative Thomas MOVED to ADOPT Amendment #29 on
behalf of Representative Foster (Copy on File):
Funds appropriated for the Major Maintenance
Grant Fund (AS 14.11.007) projects which are
determined by the Department of Education and
Early Development to not be required for
completion are hereby reappropriated to fund
school major maintenance projects in accordance
with the department's December 17, 2008 rankings
as funding becomes available in the department's
determination.
Vice-Chair Stoltze OBJECTED.
Representative Thomas explained that major maintenance
grants not utilized will go to the next available school on
the list. Some of the communities opted to go to the state
matching grant program instead of the major maintenance
list.
Co-Chair Meyer stated that two Anchorage schools were
eligible for the 70/30 debt reimbursement bond, which frees
up the money in the capital budget.
EDDY JEANS, DIRECTOR, SCHOOL FINANCE, DEPARTMENT OF
EDUCATION AND EARLY DEVELOPMENT, pointed out that the next
two projects on the list were for Tanana City Schools and
for Unalakleet in the Bering Strait District.
Representative Hawker clarified that the Amendment was a
conceptual amendment and the drafters were empowered to
correct the language.
Representative Gara asked for more information. Mr. Jeans
explained that the appropriation in the capital budget is
to the Major Maintenance Fund, but also has allocations to
individual projects. The intent of the Amendment was to
make the next project on the list available. Representative
Gara asked if the other projects were funded in order of
ranking.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #29 was adopted.
6:30:34 PM
Co-Chair Meyer MOVED to ADOPT Amendment #30 (Copy on File):
Dept. of Community & Economic Development Grants
to Municipalities (AS 37.05.315)
Matanuska Susitna Borough - Sutton Library Land
Acquisition $600,000 General Fund
Vice-Chair Stoltze OBJECTED.
Co-Chair Meyer explained the Amendment as for
Construction of a new community facility/public
library in Sutton. The facility is approximately
5,800 square feet and will provide services to
residences along the Upper Glenn Highway (Moose
Creek, Sutton, Chickaloon, and Glacier View).
This project is a priority established by the
local community council and the borough assembly.
Matching funds of $600,000 have been approved by
the Mat-Su Borough, and there is an application
pending at the Rasmussen Foundation for $658,000
this year. Additional funds have been raised
locally - along with thousands of hours of
volunteer in-kind services.
JOHN BITNEY, STAFF, REPRESENTATIVE JOHN HARRIS, explained
the library was a priority for the Mat-Su Borough.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #30 was adopted.
6:32:23 PM
Co-Chair Meyer MOVED to ADOPT Amendment #31 (Copy on File):
Page 207, line 27, following "project":
Insert ", unless specifically identified in this
Act as an operating grant,"
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Amendment clarified language
inserted in the budget. Unless otherwise noted as an
operating grant, the grants should be considered as capital
grants.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #31 was adopted.
6:33:17 PM
Co-Chair Chenault MOVED to HOLD Amendment #32.
AT EASE 6:34:03 PM
RECONVENE: 7:29:52 PM
Co-Chair Meyer MOVED to WITHDRAW Amendment #33 (Copy on
File):
Page 158, lines 12 -16:
Delete all material
Insert "Halibut Point Road - Sawmill Creek Road
to Ferry Terminal Pavement Rehab and Drainage
Improvements (HD 2)"
6,500,000 General Fund
Adjust fund sources and totals accordingly
Page 185, line 26:
Delete "-Hollis"
Page 185, line 33
Delete "Gateway Borough"
Page 186, line 6
Delete "Matanuska-Susitna Borough:"
Page 186, after line 8:
Insert "Glacier Highway -Back Loop Road:
Intersection Safety Improvements (HD 80)
5,000,000 GO Bonds
Insert "Mitkof Highway Scow Bay to Crystal Lake
Hatchery Road: Pavement Rehab and Drainage
Improvements (HD 2)
$7,000,000 GO Bonds
Insert "Sawmill Creek Road Upgrade Phase III with
Separated Pedestrian Path Whale Park to Sawmill
Creek (HD 2)
Adjust General Obligation Bond totals accordingly
Co-Chair Meyer MOVED to ADOPT Amendment #34 (Copy on File):
PART 1
CONCEPTUAL AMENDMENT: Add a numbers section
appropriating a total of $4,933,900 to implement
the collective bargaining agreement with the
Public Safety Employees Association representing
the regularly commissioned public safety officers
unit for the fiscal year ending June 30, 2009.
The funding requested will be placed in the
appropriations/allocations as listed in the
following table:
Fire and Life Safety Operations:
General Fund 36,100
TOTAL 36,100
Special Projects:
Federal Receipts 13,200
General Fund 31,400
CIP Receipts 70,000
TOTAL 114,600
Alaska Bureau of Judicial Services:
General Fund 269,800
TOTAL 269,800
Narcotics Task Force:
General Fund Match 15,700
General Fund 44,800
TOTAL 60,500
Alaska State Trooper Detachments:
General Fund 2,500,600
TOTAL 2,500,600
Alaska Bureau of Investigations:
General Fund 159,800
TOTAL 159,800
Alaska Bureau of Alcohol and Drug Enforcement:
General Fund 65,200
TOTAL 65,200
Alaska Wildlife Troopers;
General Fund 943,600
CIP Receipts 10,300
TOTAL 953,900
Alaska Wildlife Troopers Aircraft Section
General Fund 6,600
TOTAL 6,600
Alaska Wildlife Troopers Investigations:
General Fund 35,500
TOTAL 35,500
Support:
General Fund 3,700
CIP Receipts 7,000
TOTAL 10,700
Training Academy:
General Fund 78,400
Inter-Agency Receipts 2,400
TOTAL 80,800
DEPARTMENT OF PUBLIC SAFETY TOTAL 4,294,100
Anchorage Airport Safety:
Federal Receipts 41,100
International Airport Revenue Fund 411,800
TOTAL 452,900
Fairbanks Airport Safety:
International Airport Revenue Fund 186,900
TOTAL 186,900
DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES TOTAL 639,800
This subsection should have a July 1, 2008
effective date.
PART 2
Amend sec. 65, Contingencies, by adding a new
subsection to read:
(g) The appropriations made in sec. xx(a) of this
Act are contingent on ratification of the
collective bargaining agreement by the membership
of the Public Safety Employees Association for
the regularly commissioned public safety officers
unit.
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Administration settled with
the Public Safety Employees Association and the Amendment
would fund the settlement.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #34 was adopted.
7:31:26 PM
Co-Chair Meyer MOVED to ADOPT Amendment #35 (Copy on File):
PART 1:
CONCEPTUAL AMENDMENT: Add a numbers section
appropriating a total of $1,245,600 to implement
the collective bargaining agreement with Public
Employees Local 71, for the labor, trades and
crafts unit, for the fiscal year ending June 30,
2009.
The funding requested will be placed in the
appropriations/allocations listed in the
following table:
(Details on File; Department Totals listed)
Department of Administration Total 27,500
Department of Corrections Total 72,000
Department of Education and Early Development
Total 10,400
Department of Environmental Conservation Total
6,000
Department of Fish and Game Total 6,800
Department of Health and Social Services Total
99,800
Department of Labor and Workforce Development
Total 34,200
Department of Military and Veterans Affairs Total
39,000
Department of Natural Resources Total 23,100
Department of Public Safety Total 8,600
Department of Transportation and Public
Facilities Total 918,200
This section should have a July 1, 2008 effective
date.
PART 2:
Amend sec. 65, Contingencies, by adding a new
subsection to read:
(h) The appropriations made in sec. xx(b) of this
Act are contingent on ratifications of the
collective bargaining agreement by the membership
of the Public Employees Local 71, for the labor,
trades and crafts unit.
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained that the Amendment was the money to
fund the settlement with Local Employees 71.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #35 was adopted.
7:32:51 PM
Co-Chair Meyer MOVED to ADOPT Amendment #36 (Copy on File):
Page 78, lines 6-9
Delete all material
Page 78, lines 10-11
Make stand-alone appropriation
Insert to Section 10, in the Department of
Commerce Community and Economic Development,
Grants to Municipalities:
th
Anchorage - 40Avenue Extension Lake Otis
Parkway to Dale Street
$10,000,000 General Fund
Vice-Chair Stoltze OBJECTED.
th
Mr. Ecklund explained that the Amendment moves the 40
Avenue extension from Department of Transportation and
Public Facilities to Department of Commerce, Community and
Economic Development as a grant to the Municipality of
Anchorage.
Representative Gara asked for clarification. Mr. Ecklund
explained that the project is already in the bill; the
departments think the project should go to the municipality
of Anchorage.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #36 was adopted.
7:33:47 PM
Co-Chair Meyer MOVED to ADOPT Amendment #37 (Copy on File):
Replace Sec. 56(b) With the following language:
(b) The sum of $10,000,000 is appropriated from
the General Fund to the Department of Health and
Social Services, Public Assistance Energy
Assistance Program, for heating assistance for
low income households for the fiscal year ending
June 30, 2009.
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained the Amendment.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #37 was adopted.
7:34:33 PM
Co-Chair Meyer MOVED to ADOPT Amendment #38 (Copy on File):
Add a new section to read:
Sec. yy. DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT. The appropriation made by sec. 2,
ch. 28, SLA 2007, page 44, lines 22 -24 lapses on
June 30, 2009.
Sec. yy needs to be added to sec. 69 for a June
30, 2008 effective date.
Vice-Chair Stoltze OBJECTED.
Mr. Ecklund explained:
This amendment enables the Department of Labor
and Workforce Development to continue developing
the training program for gas pipeline workers.
Detailed workforce planning will be done for 113
gas line related occupations with the assistance
and guidance of a private sector steering
committee.
Of the $850.0 appropriated in FY 08, the
department anticipates carrying forward $250.0
into FY 09.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #38 was adopted.
Amendment #39 was set aside.
7:35:45 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #40 (Copy on
File):
Page 25, line 6:
Insert before the word "Design" "Site Selection,
Planning,"
Co-Chair Meyer OBJECTED.
JAMES CUNNINGHAM, STAFF, REPRESENTATIVE BILL STOLTZE,
explained that when the Senate added the appropriation, it
was thought that a site had been purchased to house the
shooting range project. Discussions with the Matanuska-
Susitna Borough revealed that no site selection or planning
had occurred. The additional language would allow the Mat-
Su Borough to utilize the appropriation for the additional
purposes.
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #40 was adopted.
7:37:03 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment #41 (Copy on
File):
Insert into Section 10:
Great Alaska Council of Boy Scouts of America
Denali High Adventure, Scout Base Bathroom and
Shower Facilities Construction (HD 1-40)
$377,500 General Fund
Adjust fund sources and totals accordingly.
Co-Chair Meyer OBJECTED.
Vice-Chair Stoltze explained that the Amendment was offered
on behalf of the Boy Scouts for a camp that brings a lot of
people to Alaska. This is one phase of a large project.
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #41 was adopted.
7:38:50 PM
Vice-Chair Stoltze WITHDREW Amendment #42.
Representative Thomas MOVED to ADOPT Amendment #43 (Copy on
File):
Page 193, following line 28:
Insert a new subsection to read:
"(f) The sum of $5,000,000 is appropriated from
the General Fund to the renewable energy fund (AS
42.45.045)."
Page 201, following line 22:
Insert a new subsection to read:
"(c) The sum of $2,000,000 is appropriated fro
the renewable energy fund (AS 42.45.045) to the
Department of Commerce, Community and Economic
Development, Alaska Energy Authority, for payment
of a grant under the authority of AS 44.83.080 to
the Southeast Conference for the Reynolds Creek
hydroelectric project
Page 207, following line 20:
Insert a new subsection to read:
"(g) The appropriations made in secs. 30(f) and
52(c) of this Act are contingent on passage by
the Twenty-Fifth Alaska State Legislature and
enactment into law of a version of HB 152 that
creates a renewable energy fund.
Page 207, line 24, following "50(c),"
Insert "52(c),"
Page 208, line 1, following "30(d),":
Insert "30(f),"
Page 208, line 2, before 53(a)":
Insert "52(c),"
Vice-Chair Stoltze OBJECTED.
Representative Thomas explained that the Amendment
appropriates $50 million from General Fund to Renewable
Energy Fund. He made a technical amendment to the
Amendment: line 8, to delete "renewable energy" and insert
"general.
Co-Chair Meyer explained the use of general funds.
Representative Thomas inserted that the action was
contingent upon passage of HB 152.
AT EASE 7:43:01 PM
RECONVENE 7:43:53 PM
Representative Thomas proposed technical amendment #2 to
Amendment #43: line 21, strike "and 52(c)
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #43 was adopted.
7:45:06 PM
Representative Gara MOVED to ADOPT Amendment #44 (Copy of
File):
Agency: Municipality of Anchorage
Project: Jewel Lake Road Construction of Missing
Pedestrian and Storm Facilities (HD 17-32)
Amount: ADD: $500,000
Funding Source: General Fund
Vice-Chair Stoltze OBJECTED.
Representative Gara explained that the appropriation would
construct missing pedestrian and storm drain facilities.
The lack of sidewalks and road flooding are creating a
safety and traffic problem in the are surrounding Sand Lake
Elementary school, which is an immersion school serving the
greater Anchorage area. The project has been bonded; the
matching bond funds are in hand.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #44 was adopted.
7:48:48 PM
Co-Chair Meyer MOVED to ADOPT Amendment #45 (Copy on File):
Add to Section 10:
Project Title: "Anchorage Parks Foundation
Foraker/Marston Road Improvement District Trail
and Ball Field Realignment"
Amount: $85,000
Funding Source: General Fund
Vice-Chair Stoltze OBJECTED.
REPRESENTATIVE HOLMES, SPONSOR, explained that the road is
a priority for the community council:
Current funding for the Foraker/Marston Road
Improvement District (RID) does not include money
to mitigate the negative impact on adjacent Lyn
Ary ball fields. This project would put at ease
community concerns about safety in the park and
access to park resources by funding non-Right of
Way components of a revised RID.
Vice-Chair Stoltze REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment #45 was adopted.
7:51:53 PM
Representative Joule MOVED to ADOPT Amendment #39 (Copy on
File):
Agency: Add to Sec. 13 Department of
Transportation
Project: Kotzebue Shore Avenue Rehabilitation
Amount: $17.5 mil.
Funding Source: General Fund
Co-Chair Meyer OBJECTED for discussion.
Representative Joule explained:
The project will rebuild a city road at the
ocean's edge. To prevent the erosion, the project
would rely on a 3,400 feet of steel sheet pile,
further protected by large stone rip rap. Above
the revetment would be a reconstructed road.
Kotzebue is receiving $20.5 million in federal
funds. A recent estimate updated the project
costs to $38 million, leaving a $17.5 shortfall
in funding.
Co-Chair Meyer pointed out that there were erosion projects
in the Bonds in the Governor's budget. He thought that
would free up money for the project.
Representative Joule hoped that the project would be
funded.
Co-Chair Meyer asked how the project was misjudged by so
much.
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, explained that the project was in the final
stages of planning when a review was conducted. The high
cost of steel and freight caused a steep rise in cost. He
thought it was necessary to bring the changes to the
attention of the Committee.
Representative Kelly asked if there was a scope change on
the project. Mr. Richards explained that the additional
$17.5 million would cover the full scope of the project.
7:58:54 PM
Representative Joule WITHDREW Amendment #39. There being NO
OBJECTION, it was so ordered.
7:59:34 PM
Co-Chair Chenault MOVED to ADOPT Amendment #22 (Copy on
File):
Add a new project to Section 13:
Department of Natural Resources
Kenai River Public Use Study
$200,000 General Fund
Vice-Chair Stoltze OBJECTED.
Co-Chair Chenault explained the Amendment:
This study fulfills a court-ordered review that
is required before the Department of Natural
Resources can consider use restrictions in the
Kenai River Special Management Area, if such
restrictions become necessary in the future to
adequately manage the resource. The study will
implement recommendations found in the Kenai
River Comprehensive Management Plan by evaluating
the social dynamics of recreational use on the
river, as well as the environmental impacts of
human use on the river's water quality and fish
and wildlife habitat. As public use in the
Management Area continues to expand, there is
increased conflict between various recreational
user groups, as well as increasing impacts on the
water quality and health of the river. It has
been four years since the court order was issued,
and area user groups have expressed growing
concerns about the inability to provide
comprehensive management due to lack of
implementation of this study.
Vice-Chair Stoltze pointed out that the borough mayor has
indicated concern with dip netters. Co-Chair Chenault
stated that dip netters are personal use and their need
outweighs both commercial and sports fishing. Vice-Chair
Stoltze referred to strong public statements. There have
been efforts to eliminate access. Co-Chair Chenault stated
that he preferred to move the dip netters. Allowing all
users to dip net in two areas has created a strain on the
river stocks. There is a great deal of waste and erosion.
The most pressure comes from Southcentral Alaskans coming
to the Kenai. He proposed opening the beaches for fishing.
Vice-Chair Stoltze indicated that the language in the
Amendment was clear regarding the court order.
8:07:27 PM
LETA SIMONS, DIRECTOR, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES, responded to
Representative Gara's query regarding the river. She said
the Kenai River Management Area covers the entire river.
Representative Gara pointed out that there are two segments
of the Kenai River. The dip net fishery is in the lower
part of the river. There has been pressure for more
guiding time on the upper river, which concerned him. He
did not support the use of the upper Kenai in that manner.
Ms. Simons understood that the study was to cover the
entire management area. It woul allow the State to comply
with the Court order. Representative Gara asked about the
conflict the court order addressed. Ms. Simons did not
know.
8:10:03 PM
Co-Chair Chenault suggested there is more pressure on the
lower Kenai River. He recommended a study to allow the
Department to implement restrictions on the river. He
thought there was more pressure on the lower Kenai from all
user groups, especially in June and July. The study was
necessary to determine restrictions on the river.
Representative Gara revisited his concerns regarding the
upper river. Co-Chair Chenault advised that the study has
resulted from a court order review.
Mr. Ecklund emphasized that if the Department wants to
limit or restrict use on the river, the study must be done
first.
Representative Kelly did not want modification.
Vice-Chair Stoltze thought it was up to the Department of
Natural Resources to enact the restrictions. Ms. Simons
explained that there was a court order that stated until a
study was done, the Department cannot manage the river by
putting restrictions on it. She did not know which part of
the river the court order referenced. The options are
limited for management without the study.
8:14:59 PM
Vice-Chair Stoltze was concerned with the request. He did
not favor the Amendment. Representative Gara noted concern
as well. There is no organized voice representing regular
fishermen. He wanted the intent of the study to be clearer
in the Amendment.
8:16:29 PM
Co-Chair Meyer added that this was one of the few deletions
made from the Governor's budget because the topic elicits
highly emotional responses. He stated he would not support
the Amendment.
Representative Thomas stated support for the Amendment. He
wanted the resource to be protected.
Representative Kelly asked how quickly a regulation change
could be made on the river. Ms. Simons replied that the
study was one of the tools the Department could use to make
decisions. Without the study there is no plan.
Representative Kelly asked if a change would be proposed in
one year or five. Ms. Simons reiterated that she did not
know.
8:20:03 PM
Representative Crawford asked if there was a desired
change. Ms. Simons replied that the Department has no
predisposition or intent. The sole purpose is the study.
A roll call vote was taken on the motion to adopt Amendment
#22.
IN FAVOR: Nelson, Thomas, Crawford, Hawker, Joule, Chenault
OPPOSED: Kelly, Stoltze, Gara, Meyer
Representative Foster was absent from the vote.
The MOTION PASSED (6/4).
8:22:28 PM
Co-Chair Chenault MOVED to ADOPT Amendment #32 (Copy on
File):
Add a new project to Section 10:
Alaska Natural Gas Development Authority
Engineering and Economic Study on Gas Bullet Line
$4,000,000 General Fund
Co-Chair Meyer OBJECTED.
Co-Chair Chenault explained that the Amendment would give
the Alaska Natural Gas Development Authority (ANGDA) $4
million to conduct in-state studies on gas usage. The
Governor had asked for $8 million for the studies. The $4
million is for phases I and II of the study.
Purpose of funding request:
The development of a North Slope gas pipeline
project has been in flux for several decades. The
Commissioners of Natural Resources and Revenue
are considering whether to recommend to the
legislature issuing an AGIA license for a
mainline project moving Alaska North Slope gas to
market. There are other alternatives being
discussed by the public, the legislature, and a
number of private and semi-public entities. These
alternatives include other mainline projects
moving large volumes of gas to markets as well as
other small in-state projects serving primarily
Alaska's energy needs.
AGIA specifically allows for projects smaller
than 500 MMscfd. The purpose of this engineering
and economic study on a bullet line from the
North Slope to Alaska tidewater is to determine
if a small bullet line project is feasible to
develop. This information could then be compared
with other energy generating projects that are
under review to determine what energy sources
would most feasibly serve the energy and
feedstock needs of Alaska.
2. Scope of the work effort:
The work would encompass three Phases and the
following major tasks:
A Phase 1 basic economic and engineering review
of more than two stand alone small (less than 500
MMscfd) in-state gas transmission line project
alternatives covering Cook Inlet and Valdez
tidewater terminals, residential heat & power
uses, methane enriched NGL content for export /
manufacturing, and different North Slope
production sources. This Phase I work effort
would identify the preferred economic
alternative. (6 months & less than $1 million)
b. Phase 2 would develop more detailed design,
engineering, cost and timing information on the
preferred alternative.
Pipeline sizing and material specification
Operating pressures, compressor stations,
and hydraulic & temperature profiles
Pipeline installation & construction -buried
and elevated segments
Gas treatment plant (if needed) design and
location on North Slope
Receiving terminal design at tidewater
Pipeline system routing, take-off points,
and intermediate feed-in points
NGL plant design and sitting at tidewater
Incorporation of existing pipeline & power
infrastructure and manufacturing plants
• Integrated construction planning & logistics
This Phase 2 work effort would produce a
definitive project cost estimate and construction
schedule (18 months in parallel with Phase 3 at a
cost of $6 million).
c. Phase 3 would develop the economic analysis of
potential financing alternatives and potential
profitability of the project. Potential gas
sellers & buyers would be identified thru letters
of intent. Phase 3 would define the business &
financial underpinnings of the project (12 months
after a cost estimate is available at a cost of $
1 million)
3. Schedule:
a. Phase 1 work effort would be complete by year
end 2008 and Phase 2 & 3 definitions would be
available by early 2010.
4. Funding Request:
a. $4 million for work to be done by Alaska
engineering contractors and business / financial
consultants.
HAROLD C. HEINZE, CHIEF EXECUTIVE OFFICER, ALASKA NATURAL
GAS DEVELOPMENT AUTHORITY (ANGDA) (testified via
teleconference), thought the proposal was entirely
compatible with the concurrent Resolution. He said the
appropriation would fund the study through the fiscal year
and would further define key issues. The total funding
request would be $8 million, which could mean a further
request in the next year for $4 million. The study would
look at Cook Inlet and Valdez.
8:27:40 PM
Representative Hawker asked if work done to date would be
utilized. Mr. Heinze replied that all past work that has
been done would be incorporated. ANGDA had taken a look at
a number of issues. A recent Department of Energy study
would be incorporated. The Economic Development and Trade
Committee stressed that the changing price world leads to
different potential for Alaska, for instance in the value-
added industry.
Representative Kelly asked how much money was left. Mr.
Heinze responded that based on last year's appropriation,
$4.8 million is left to spend. Of that, over $3 million has
not been firmly committed. The rest is allocated to the two
major issues related to the spur line. The other major
portion of the funding that is allocated but uncommitted
for basic open season process, the working with utilities,
and fulfilling ANGDA's unique role to provide a pivotal
point related to long-term financing.
Mr. Heinze thought that the $4 million, which would be in
lieu of the Governor's request for $8 million, would move
the project ahead. Representative Kelly asked if ANGDA was
coordinating with the Administration. Mr. Heinze said he
has the support of the Administration on the in-state
study.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #32 was adopted.
8:34:06 PM
Co-Chair Meyer MOVED to ADOPT technical amendment #1 on
Amendment #1, p.3, item 11:
11) Language Section:
Delete "Page 205 lines 18-24"
Insert "Delete Section 61"
There being NO OBJECTION, it was so ordered.
Mr. Ecklund referred to handout "Composition of the Capital
Budget HCS SB 221 Version N" (Copy on File). He reviewed
the items:
• The Governor's projects included in the Senate Capital
Budget: $31.3 million FY08 effective, $1.227 million
FY09 effective
• Senate Legislative additions in the Senate Capital
Budget: $75 million FY08 effective, $574 million FY09
effective
• Total for the Senate Capital Budget: $106.3 million
FY08 effective, $1,801.2 million FY09 effective, TOTAL
$1907.5 million
• The Governor's projects included in the House Capital
Budget: $310.7 million FY08 effective, $109.7 million
FY09 effective
• House Legislative additions in the House Capital
Budget: $315.5 million FY08 effective, $0 million FY09
effective
• Total for the House Capital Budget: $732.5 million
FY08 effective, $1,910.9 million FY09 effective, TOTAL
$2,643.4 million
• GO Bonds: $220.6 million FY09 effective
• Total House CS Capital Bill with Bonds: $2,864.0
million
• 64% of Version N were the Governor's proposed
projects; 25% were Senate additions; 12% were House
additions
Representative Kelly verified that the amendments the
Committee had just adopted were not included in those
totals. Mr. Ecklund said the new total had not been
tallied.
Co-Chair Chenault MOVED to give Legislative Finance and
Legal the ability to make technical and conforming changes
to the CS as they redraft the bill. There being NO
OBJECTION, it was so ordered.
8:39:32 PM
Representative Thomas noticed that the Alaska Works
Partnership was back in the bill. He wanted more
information about how many people were trained.
Representative Gara verified that the bonded projects in
Sec. 19 are in the bill contingent on the bond passing.
Co-Chair Meyer clarified that those were only the bonds
that the House passed.
Representative Gara stated for the record that he was
uncomfortable putting the extra money into the budget.
Co-Chair Chenault acknowledged that the capital budget was
large but hoped that the public would recognize the wide
range of needs that had been addressed. He pointed to the
approximately $5 billion that had been put into savings.
8:43:19 PM
Co-Chair Meyer added that though some would think the
budget was too high, others would think it was too low.
There were many amendments people wanted to make but did
not. He thought the budget was good and as efficient as it
could be. For every dollar spent, two dollars were saved.
Co-Chair Meyer pointed out that communities are hurting for
the same reason the State has the surplus: the high price
of oil. He wanted to share that wealth through building
schools and libraries, through revenue sharing, and putting
money into the municipalities. He hoped the budget would be
seen as a fair one.
8:46:54 PM
Representative Joule acknowledged the work and cooperation
of Committee members and staff. He thanked Co-Chair Meyer
for his work. Co-Chair Meyer acknowledged the hard work of
staff. Vice-Chair Stoltze echoed Representative Joule.
Representative Crawford complimented Co-Chair Meyer.
Representative Foster MOVED to REPORT HCS CS SB 221 (FIN)
out of Committee with individual recommendations. There
being NO OBJECTION, it was so ordered.
HCS CSSB 221 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
ADJOURNMENT
The meeting was adjourned at 8:48 PM.
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