Legislature(2007 - 2008)
08/04/2008 07:48 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB4005 | |
| HB4001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
August 4, 2008
7:48 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 7:48:18 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 Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Reggie Joule
ALSO PRESENT
Speaker John Harris; Representative Bob Roses;
Representative Carl Gatto; Representative Anna Fairclough;
Representative Paul Seaton; Representative Andrea Doll;
Suzanne Armstrong, Staff, Representative Kevin Meyer; Jerry
Burnett, Director, Division of Administrative Services,
Department of Revenue; Pat Galvin, Commissioner, Department
of Revenue; Tom Wright, Staff, Representative Mike Chenault;
Frank Richards, Deputy Commissioner of Highways & Public
Facilities, Department of Transportation and Public
Facilities; Sarah Fisher-Goad, Deputy Director of
Operations, Alaska Industrial Development and Export
Authority and Alaska Energy Authority, Department of
Commerce, Community and Economic Development; Guy Bell,
Assistant Commissioner and Director, Division of
Administrative Services, Department of Labor and Workforce
Development; Clark Bishop, Commissioner, Department of Labor
and Workforce Development
SUMMARY
HB 4001 An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making appropriations to
capitalize a fund; and providing for an effective
date.
HB 4001 was reported out of Committee with a "do
pass" recommendation.
HB 4005 An Act amending the power cost equalization
program, repealing the exclusion from eligibility
for power cost equalization for certain power
projects that take their power from hydroelectric
facilities, and amending the definition of
'eligible electric utility' as it applies to the
power cost equalization program and the grant
program for small power projects for utility
improvements; and providing for an effective date.
HB 4005 was HEARD & HELD in Committee for further
consideration.
CSSB 4002(FIN)
An Act amending the bulk fuel bridge loan fund;
amending the power cost equalization program,
repealing the exclusion from eligibility for power
cost equalization for certain power projects that
take their power from hydroelectric facilities,
and amending the definition of 'eligible electric
utility' as it applies to the power cost
equalization program and the grant program for
small power projects for utility improvements;
establishing the Alaska resource rebate program
and relating to that program; and providing for an
effective date.
CSSB 4002 (FIN) was SCHEDULED but not heard.
7:51:37 PM
HOUSE BILL NO. 4005
An Act amending the power cost equalization program,
repealing the exclusion from eligibility for power cost
equalization for certain power projects that take their
power from hydroelectric facilities, and amending the
definition of 'eligible electric utility' as it applies
to the power cost equalization program and the grant
program for small power projects for utility
improvements; and providing for an effective date.
Vice-Chair Stoltze MOVED to ADOPT work draft 25-LS1757\L,
Kane, 8/4/08, as the version of the bill before the
Committee. Representative Nelson OBJECTED.
7:53:11 PM
Representative Nelson expressed more comfort with the
previous version of the bill. She felt that the previous
version struck a better balance in terms of region and
helping people than the current version does. She took pride
in the work that had been done.
Representative Gara noted that the changes in the bill were
all topics that the committee had favored. The heating
provision and the electrical utility assistance were
removed.
7:54:40 PM
SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE KEVIN MEYER,
explained the major changes to the work draft. The Power
Cost Equalization (PCE) provisions were removed, as were the
provisions pertaining to the Low Income Heating Assistance
Program (LIHEAP) and the provision relating to the State
Heating Assistance Program. Remaining were the changes made
to the bulk fuel loan fund and the revolving loan fund with
limits increasing the loan amounts from $500,000 to
$750,000. The resource rebate section was left intact with
only one change; the dollar amount was increased from $1000
to $1200 per person. The suspension of motor fuel tax was
left intact.
Co-Chair Meyer reverted back to the Governor's original call
of the $1200 for the resource rebate and the eight cent fuel
tax suspension.
7:56:04 PM
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Kelly, Stoltze, Thomas, Meyer, Chenault
OPPOSED: Foster, Gara, Nelson, Crawford
THE MOTION PASSED 6-4
7:57:13 PM
Co-Chair Meyer MOVED to ADOPT Amendment #1, Page 3, Line 7,
deleting "$1,000" and inserting "$1,200". Vice-Chair Stoltze
OBJECTED.
Co-Chair Meyer explained the drafting error on Page 3, Line
7 where the $1000 should read "$1200."
Representative Hawker WITHDREW the OBJECTION.
7:57:41 PM
Representative Kelly MOVED to ADOPT Amendment #2, #25-
LS1757\M.4, Bullard\Kane, 8/4/08. Representative Thomas
OBJECTED.
7:57:55 PM
Representative Kelly explained that the amendment would be
withdrawn. He asked to speak to the amendment. The amendment
would allow a rebate or a low interest loan if an individual
wanted to use a different heating method than oil, such as
wood, wood chips, or pellets. These alternative fuel sources
allow people to help themselves and reduce their dependence
on oil.
Amendment #2 was WITHDRAWN.
7:59:52 PM
Representative Crawford stated that the amendment was good
and should not be withdrawn and he encouraged Representative
Kelly to offer it.
8:01:02 PM
Representative Hawker MOVED to ADOPT conceptual Amendment
#3, Line 29, Page 3. He explained that it was a provision
repealing the suspension of the motor fuel tax on June 30,
2011 as written. It repeals section 5A only. The conceptual
amendment was to change 5A to section 5 in its entirety.
Representative Crawford OBJECTED for discussion purposes.
Co-Chair Meyer explained the drafting error that was noticed
by Representative Hawker.
8:03:06 PM
Representative Crawford WITHDREW the OBJECTION. There being
NO further OBJECTION, it was adopted. Representative Hawker
pointed out that the credit should go to the Department of
Law for the error's discovery.
Representative Kelly mentioned the included penalty
provision. He did not agree with the notion. He regretted
the hassle of unhappy phone calls in the event of public
upset.
8:05:19 PM
Co-Chair Meyer reviewed the fiscal notes. He pointed out the
resource rebate of $1,200 dollars for Alaska residents. The
rebate could be used for heating and fuel assistance this
winter. He recalled that the PFD comes out in early October,
which is important to Alaskans preparing for winter heating
costs. He wondered if there was potential that the PFD might
be administered earlier than October.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, explained that the bill was
initially introduced in August. The Governor had reviewed it
and hoped to move it back, but there are a number of
concerns to be addressed. There are scheduling items to
guarantee that the appropriate warrant stock is in place.
The Department of Revenue will attempt to get the checks out
as soon as possible.
8:08:56 PM
Representative Hawker requested the difference between an
energy rebate and a resource rebate. Mr. Burnett explained
that the rebate consists of a distribution of excess tax
revenue that the state had received and will distribute to
dividend eligible persons. It is not aimed at a specific
use.
Representative Hawker pointed out that there was not
language in the bill requiring that the resource rebate was
spent on energy related issues. Mr. Burnett affirmed that
there was not language specifying a requirement regarding
how the rebate is spent. He supposed that people would use
the rebate money to pay heating bills, given the cost of
energy this year.
8:10:55 PM
Representative Gara did not accept the terminology
concerning the equitability of the proposed distribution.
The prior version of the bill recognized the inequity, and
attempted to address it by helping those with the greatest
need. He did not accept the line of reasoning that there is
equity based on a change of the terminology. The bill is not
equitable.
Representative Gara asked if all of the individuals eligible
for the hold harmless provision would have the money count
as income and possibly have it garnished. Mr. Burnett
replied that the rebate would not be garnished in the
mentioned situation.
Representative Gara could not find the hold harmless
provision in the bill before the Committee. Mr. Burnett
advised that the hold harmless clause is in the PFD statute
and it applies to subsidized housing because it is a one-
time payment. It would not be treated as part of the PFD.
The clause is identified as a separate part of the PFD. The
hold harmless that applies to PFD will apply to the hold
harmless provision. There is a specific hold harmless
section in the bill for veterans.
8:15:29 PM
Representative Gara asked if hold harmless language was in
the appropriations bill. Mr. Burnett responded that there is
an appropriation for an additional hold harmless for Health
and Social Services and the Veterans in the appropriation
bill.
Representative Hawker asked to clarify that in the
appropriations bill there is specifically a paragraph
earmarking funding to address those purposes.
Representative Gara asked for a letter from the department
addressing the hold harmless provision for low income
housing and the Pioneer's Home issue. Mr. Burnett affirmed.
8:16:36 PM
Co-Chair Meyer noted that the bill would be HELD until the
Senate version arrives to Committee.
8:18:15 PM
Representative Thomas stated that he originally believed
that sufficient legislation would include a resource rebate
of $1,500 and include the repealing of the fuel tax. He
remembered speaking about an energy rebate since last
session. He hoped the resource rebate would be increased to
$1,400 dollars, because of the other aspects of the bill
that were left out. He proposed that it occur on the House
Floor.
Representative Nelson pointed out that there are six
different regions in the State of Alaska. Each region was
initially represented with one piece of legislation;
however, an individual living alone does not have their
needs adequately addressed. She listed the items that were
in the original version that helped ease the disparity. She
suggested that the Committee had taken a step backward. She
expressed hope that a "middle ground" could still be
reached.
8:21:26 PM
Representative Crawford wondered how many people would use
the funding as a moving allowance to move from the Bush into
the cities. He thought it was too little too late to help
the rural areas.
Co-Chair Meyer noted that HB 4005 would be HELD.
8:22:37 PM
HOUSE BILL NO. 4001
An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making appropriations to capitalize a
fund; and providing for an effective date.
Vice-Chair Stoltze MOVED to ADOPT work draft #25-GH3056\L,
Kurtz & Kane, 8/4/08, as the version of the bill before the
Committee. Representative Gara OBJECTED.
8:23:07 PM
Representative Gara asked what the Administration needed for
the appropriation for the gas line contract that was
approved. The original amount was $500 million. The CS shows
a sum of $50 million appropriated from the general fund to
the Alaska Gasoline Inducement Act (AGIA) reimbursement
fund.
8:23:43 PM
PAT GALVIN, COMMISSIONER, DEPARTMENT OF REVENUE, estimated
that TransCanada would expect to spend $14 million dollars
to get to an open season. This would include a 50/50 match
from the state, expected to be $14 million.
Representative Gara requested the timeframe that the $14
million would encompass. Commissioner Galvin replied that
the timeframe would span until the middle of 2010. He stated
that the department believed that it was most appropriate to
put the entire $500 million into the reimbursement account.
He recognized the interest of the legislature to retain the
ability to have the department come back and ask for
additional amounts as needed. The $14 million dollars allows
for open season, which is one benchmark.
8:25:55 PM
Representative Gara did not want to jeopardize the state's
contract. Commissioner Galvin replied that it would not
jeopardize the contract, but when additional funds are
needed, it could cause a delay.
Representative Gara WITHDREW the OBJECTION.
8:27:09 PM
TOM WRIGHT, STAFF, REPRESENTATIVE MIKE CHENAULT, provided a
sectional analysis:
· Section 1 included the $50 million
appropriation for AGIA, the $25 million
appropriation for the Alaska Natural Gas
Development Authority (ANGDA)for the instate
gas pipeline segment, and the sum necessary to
pay each qualified resident a $1200 resource
rebate including administrative costs.
· Section 2 included $600,000 appropriated to the
Power Cost Equalization (PCE) fund and the
Rural Electric Capitalization Fund as well as
$9 million to cover the proposed shortage for
FY09.
· Section 3 included the hold harmless clause and
is appropriated $1,900,000, as an
approximation.
· Section 4 included the $60 million appropriated
for the Alaska Energy Efficient Home Grant
Fund.
· Section 5 included $5.5 million for the Bulk
Fuel Revolving Loan Fund and $5.3 million for
the Bulk Fuel Bridge Loan Fund, and $110,000
was appropriated for administrative costs.
· Section 6 included $29.6 million to the
Department of Transportation and Public
Facilities (DOT) for reconstruction of the
Dalton Highway from milepost 175 to milepost
209 and $23.3 million to DOT for repair of the
Dalton Highway from milepost 260 to milepost
321. Also included is $18 million appropriated
to the DOT for surveys and design starts for
gas line infrastructure.
· Section 7 included the shared taxes, estimated
to be $100,000 to pay the municipalities the
amount of aviation fuel tax proceeds to which
they would have been entitled under AS43.40.010
(e).
· Section 8 included $5.5 million from the
general fund to the Department of Natural
Resources for gas pipeline implementation.
· Section 9 included appropriations for the
capitalization of funds that do not lapse in
sections 1 (a), 4, 5(a), and 5(b). The
appropriations made in sections 1(b), 6, and 8
of this Act are for capital projects and lapse
under AS 37.25.020.
· Section 10 was retroactive for Sections 2 (a)
to June 30, 2008.
· Section 11 included the contingency language
for section 7 regarding the passage by the
Twenty-Fifth Alaska State Legislature and
enactment into law of a bill that suspends the
motor fuel tax imposed under AS 43.40.010.
· Section 12 includes the immediate effective
date under AS01.10.070(c).
8:31:13 PM
Representative Hawker referenced Section 1 and the $25
million dollar appropriation to the Department of Revenue,
Alaska Natural Gas Development Authority, for the instate
gas pipeline segment. He asked for clarification that the
money would go to the Department of Revenue who will
exercise oversight of expenditure of those funds. He had not
seen any documentation regarding the intended use of the
appropriation.
Commissioner Galvin restated the question for better
understanding. Representative Hawker explained that he had
no question that the appropriation would be utilized by the
Alaska Natural Gas Pipeline Authority (ANGDA). Burnett added
that the ANGDA appropriations would not be transferred from
the state accounting system to ANGDA as an independent
entity and the procurement process is overseen by staff and
the Commissioner of the Department of Revenue.
8:34:15 PM
Representative Hawker requested more information regarding
Page 2, Line 6, and the relationship of the funds to the
funds that are coming before the public in a general
obligation bond this fall.
8:34:42 PM
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, explained the difference between the projects.
The general obligation bond addresses heavy maintenance,
addressing specific challenges of the Dalton Highway.
Representative Hawker explained that in the interest of
accountability, efficiency and avoiding waste, he wanted to
know that the two projects were not in conflict. Mr.
Richards replied that was the intention.
8:36:26 PM
Representative Gara MOVED to ADOPT conceptual Amendment #1,
#25-GH4059\C.4, Kane, 8/1/08. Vice-Chair Stoltze OBJECTED.
8:37:08 PM
Representative Gara advised that the Legislature should
attempt to reduce energy costs by helping to fund the
renewable energy fund. With the $150 million, AEA would be
able to consider more projects and would be reviewed by the
Legislature. The state needs to move toward alternative
energy quickly to stabilize and reduce the cost of energy
for the future.
8:38:52 PM
Co-Chair Meyer noted support for renewable energy funding,
however, $50 million has already been appropriated to that
fund for the next five years. None of the money had been
used. The projects will be prioritized first. The proposed
amendment would go into effect in 2009. He recommended that
it be addressed during regular session.
Representative Crawford commented 'if not now, when?' Do not
delay renewable energy projects when moving ahead on fossil
fuel projects. He thought that the time was now. It does
not make sense to postpone good projects that would improve
the fossil fuel dilemma.
Representative Thomas commented on the amount of money that
had been spent. He thought that the Committee should wait
and listen to the task force and advisory board before
placing new funds into the account. He opposed Amendment #1.
8:42:51 PM
Representative Gara made closing comments. There are some
very significant projects including wind power and the
distribution of wind generated energy.
Representative Nelson noted support for the amendment but
pointed out that she would vote no. She thought it would not
be good to assume that the next Alaska Legislature would not
be supportive. This special session was to address immediate
crisis not long term relief.
8:46:55 PM
A roll call vote was taken on the motion.
IN FAVOR: Gara, Crawford,
OPPOSED: Hawker, Kelly, Nelson, Stoltze, Thomas, Foster,
Chenault, Meyer
Representative Joule was not present for the vote.
The MOTION FAILED (8-2).
8:47:57 PM
Representative Crawford MOVED to ADOPT Amendment #2. Vice-
Chair Stoltze OBJECTED.
8:48:09 PM
Representative Crawford voiced disappointment with the
process. He urged passage of the amendment. Two million
dollars would keep the project moving forward. The state is
spending $1 billion dollars for some people who do not need
it.
8:51:52 PM
Co-Chair Meyer was offended by the statement of not moving
into the future. There are many renewable energy projects in
the capital budget. The state is moving forward and the
projects need to be addressed during regular session.
Vice-Chair Stoltze requested an explanation about the
Tanadgusix Corporation (TDX).
SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY AND ALASKA
ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT, pointed out that TDX power is an
investment owned utility. It was funded through the Denali
Commission Request for Proposal (RFP) process for evaluating
the project. In addition, the money appropriated to the
Alaska Energy Authority (AEA) includes a Railbelt
appropriation.
8:54:42 PM
Representative Hawker noted that one of the missions is to
avoid government waste. No one from TDX has requested
funding from his office. The project could be a viable
energy project for the state.
Representative Gara explained that voting for or against a
budget does not mean that the legislator supports or opposes
any of the particular projects in the budget. He pointed out
that Representative Crawford had fought hard and long for
the Fire Island wind project. There were a number of
projects because the capital budget was too big. It was not
a fair representation of Representative Crawford's work on
the Fire Island wind project.
Representative Crawford noted that he did not mean to offend
anyone at the table. He explained his position on the
capital budget. The $2 million dollars was the due diligence
portion. The entire project would cost $1.7 billion and put
many people to work.
Vice-Chair Stoltze maintained the objection.
9:01:10 PM
A roll call vote was taken on the motion.
IN FAVOR: Nelson, Crawford, Gara
OPPOSED: Hawker, Kelly, Stoltze, Thomas, Foster, Meyer,
Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (3-7).
9:01:53 PM
Representative Crawford MOVED to ADOPT Amendment #3. Vice-
Chair Stoltze OBJECTED.
Representative Crawford explained the Trash to Gas project
to turn municipal garbage into methane; the gas is currently
collected and flared off, wasting 3.5 to 4 MW of potential
electric power daily. Municipal Light and Power (MP&L) in
Anchorage is a partner in this project. Anchorage could get
3.5 to 4 MW of power by next summer. A generator set would
be installed with the potential to add another as the
project expands.
9:04:31 PM
Representative Hawker said the Municipality of Anchorage is
good at letting the legislature know what its needs are, but
they haven't contacted him about this being a priority. The
project sounds as though it has a great deal of merit, but
he doesn't have enough information to do due diligence and
vote for it at this time.
Representative Gara noted that Representative Crawford took
the initiative to find and research this project and should
not be criticized for taking this approach. Co-Chair
Chenault noted that the comments were not intended as a
criticism of Representative Crawford. Representative Gara
felt that Representative Crawford should be commended.
There are far too many projects for the $50 million in the
fund now.
9:07:51 PM
Vice-Chair Stoltze said that it would be appropriate to
bring some homework backing up the project to the committee.
These sale agreements are much more complicated and it is
important to have all of the details.
9:09:35 PM
Vice-Chair Stoltze would like to ask many questions
regarding this proposal and would like to have the
Regulatory Commission of Alaska available to answer them.
The vetting process should be applied to all.
Representative Chenault noted that AEA is going out to bid
on a number of these projects this month. Ms. Fisher-Goad
explained that an RFQ has just been completed with 5 million
dollars of projects. Remaining funds from the $50 million
dollar appropriation are going out soon. Included will be a
solicitation for the additional $50 million worth of
projects for FY 2010 coming soon.
Representative Gara asked why it took four months to get the
RFP out. Ms. Fisher-Goad answered that she didn't think it
was particularly slow.
9:13:20 PM
Representative Thomas asked if the RFP's were for other
projects. Ms. Fisher-Goad responded that the initial RFP was
prior to HB152 passing. Representative Thomas clarified that
the RFP requested now will be for the $50 million from HB152
in September. Ms. Fisher-Goad affirmed.
Representative Thomas recounted an anecdote, and asked if
ten years was the approximate time it took from the start to
completion of this type of project. Ms. Fisher-Goad
confirmed that especially wind power projects can take more
time.
Co-Chair Chenault realized that the committee had been
distracted from the amendment, but that it was important to
know that the department is working forward. The money in
the renewable energy fund should be spent cautiously. He
believed that there were many worthy projects.
9:16:06 PM
Representative Crawford wrapped-up. He thought that his
amendment was good, because it would stop the waste of
useable energy.
9:16:44 PM
A roll call vote was taken on the motion.
IN FAVOR: Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault,
Meyer
Representative Joule was not present for the vote.
The MOTION FAILED (3-7).
9:17:32 PM
Representative Nelson WITHDREW Amendment #4.
Representative Gara noted that all the job training projects
had been taken out of the bill. He observed that the job
training projects were similar to the road projects in that
initiating some projects soon would be advantageous. He
asked for the position of the Department of Labor and
Workforce Development regarding the training projects.
9:19:27 PM
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, commented on the job training legislation and
stated that there are significant gaps that need to be
addressed immediately. Non residents working in Alaska are
taking home around $1.5 billion dollars annually.
Significant issues include the inability for technical
schools to provide education programs without the requested
funding along with aiding today's workforce shortages and
preparing for jobs ahead.
9:20:53 PM
Representative Gara asked if any of the projects were
intended for the construction or upgrade of facilities. Mr.
Bell responded that there were two specific projects
concerning acquisition of equipment. The first was for the
University of Alaska to acquire training simulators for
heavy equipment operation. This would have allowed the
University to purchase mobile simulators. The second item
was for the Alaska Works Partnership for the acquisition of
training equipment for the pipeline training center.
Representative Gara requested the costs for the projects.
Mr. Bell stated that $1,720,000 was requested for the first
project entailing a 25 percent industry contribution. The
cost of the second project was $2,287,000, again requiring a
25 percent industry contribution.
9:22:21 PM
Representative Gara asked if the funding efforts for the job
training operations were considered the most important. Mr.
Bell answered that the highest priority project was for the
career and technical education grant program.
There is a need in many school districts for basic
vocational education. A competitive grant program would be
the best way to achieve immediate return to the state in
current technical education. The initial request was for
$5.3 million for both the administration and the competitive
grant program for each year of the five year program.
9:23:57 PM
Representative Gara asked the number of kids that would
benefit from the programs if funded. Mr. Bell did not have
an estimate, but stated that the goal was to reach every
school district in some fashion. Some of the construction
academies in Fairbanks, Anchorage, and Juneau already
provide some necessary benefits. He hoped for more
opportunities in rural Alaska and for school districts
without current technical programs.
Representative Gara asked for the total request from the
Department of Labor. Mr. Bell stated that the total request
was $42.7 million dollars for the five year program.
9:25:23 PM
Representative Nelson asked about the simulators for use at
the University. Mr. Bell explained that the University has
been working with the department for a few months exploring
the different types of simulated training methods available.
These would include training modules for a front end loader,
dozer, excavator, and mining visualizer. He opined that the
simulators were effective models that could deliver training
to a large number of people at a low cost. With the
opportunity to train and the technology to deliver on sight
training, this program would be cost effective.
Representative Nelson understood that the simulated training
method allowed a student to become skilled in many
construction methods. These skills could help young Alaskans
work on existing projects. Mr. Bell affirmed.
Representative Nelson asked if people had already
participated in this simulator project. Mr. Bell stated that
the simulator would be a new acquisition and is not
currently available in Alaska. Representative Nelson asked
if the simulator was mobile and could be transferred
throughout campuses. Mr. Bell affirmed.
9:27:58 PM
CLARK BISHOP, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT commented that a simulator was
transported to a local mining convention and he would like
to see one brought to Juneau for the review of the
legislators.
Representative Thomas suggested that the academic
environment of the University might not provide the best
education. Commissioner Bishop responded that the University
environment was adequate. He was not prepared to discuss the
vision of the University and skill trades. He had been
promoting the mining industry in an effort to increase
Alaska hire. If there was a need for the simulator in any
district it could be transported.
9:31:06 PM
Representative Thomas asked the costs for the simulators. He
wondered if an individual could utilize the training in some
smaller communities without traveling for training.
Commissioner Bishop responded that the cost was $1 million
dollars for five packages. Mr. Bell corrected that two
simulators cost $275 thousand dollars and each module that
offers the simulation for the machines varies from $55
thousand to $120 thousand.
Representative Hawker understood that there would
potentially be a new statewide education program. He asked
if the University intended to accommodate the maintenance of
the program. Mr. Bell stated that they had worked closely
with the University creating this program as an adjunct to
the training that is offered today. The request was the
Universities', and was sponsored by the department. Included
in the funding request, was the cost of maintaining the
software.
9:34:14 PM
Vice-Chair Stoltze criticized eligibility for training
programs based on union affiliation. Mr. Bell discussed
another program for which funding had been requested. This
scholarship program was open to all institutions. The
program was tuition based and non-biased with respect to
affiliation of any kind. This program would help place
students in a place of learning that was specific to their
choice. The program is directed to all school districts and
there is no inherent bias; it is a comprehensive program.
9:36:39 PM
Representative Gara stated that the Department of Labor and
Workforce Development's priority training program included
$8.7 million dollars to fund the three discussed efforts. He
MOVED a conceptual amendment for $8.7 million to fund those
efforts. These efforts included the two equipment related
items and the first training program.
Co-Chair Chenault OBJECTED. He asked to know the funds spent
last year for training. Mr. Bell explained that the
Department received money from a number of funding sources.
These included federal formula funding, the state training
employment program, and the Denali training fund on behalf
of the Denali Commission. In FY08, $4.7 million was issued
to various entities related to gas line grants. Co-Chair
Chenault asked if the total was $13 million dollars. Mr.
Bell estimated that in FY09, $13 million worth of funding
was appropriated, including federal, General Fund and state
training programs, and a designated federal grant.
Co-Chair Chenault was concerned that some of the projects
were worthwhile and should be considered. There was some
delay in creating a plan to address pipeline training
issues. Commissioner Bishop affirmed.
Co-Chair Chenault MAINTAINED the objection.
9:41:22 PM
Representative Gara wrapped up that without the
appropriations there will be no vocational training money in
the bill. If the $5.3 million for the vocational technical
grant fund was approved this special session, then the
benefit to students would be available this school year.
A roll call vote was taken on the motion to adopt Conceptual
Amendment #5.
IN FAVOR: Nelson, Foster, Gara
OPPOSED: Kelly, Thomas, Hawker, Chenault, Thomas
Vice-Chair Stoltze, Representative Joule, & Representative
Crawford were not present for the vote.
The MOTION FAILED (3-5).
9:43:39 PM
Co-Chair Meyer directed comments to the projects that are
and are not being funded. He encouraged pride in the
progress that had been made. He agreed that renewable energy
was the way of the future. Progress can now occur much more
quickly. He encouraged thorough analysis of each and every
project.
9:46:01 PM
Representative Gara agreed that the state should not move
forward with projects that have not been vetted. His concern
was that AEA would not be able to analyze projects that have
not received funding.
9:46:50 PM
Vice-Chair Stoltze noted his appreciation for the $25
million for ANGA and the pursuit of instate gas.
Representative Gara reiterated that there was no
appropriation for job training funding, and he hoped that it
would change. He asked if the bill would be on the floor,
and if amendments should be prepared. Co-Chair Chenault
stated that the bill would be on the floor tonight.
Representative Gara directed comments to the Department of
Labor and Workforce Development for floor discussion this
evening.
Co-Chair Meyer commented that SB 4002 would be before the
Committee.
Vice-Chair Stoltze MOVED to REPORT CSHB 4001 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so moved.
CSHB 4001 (FIN) was reported out of Committee with a "do
pass" recommendation.
ADJOURNMENT
The meeting was adjourned at 9:49 PM
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