Legislature(2009 - 2010)HOUSE FINANCE 519
04/13/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 75 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 13, 2009
1:39 p.m.
1:39:59 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:39 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
James Armstrong, Staff, Co-Chair Stoltze; Karen Rehfeld,
Director, Office of Management and Budget, Office of the
Governor
PRESENT VIA TELECONFERENCE
None
SUMMARY
CSSB 75(FIN)
"An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
CSSB 75 (FIN) was heard and HELD in Committee for
further consideration.
1:40:38 PM
CS FOR SENATE BILL NO. 75(FIN)
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
JAMES ARMSTRONG, STAFF, CO-CHAIR STOLTZE, explained the
changes in the proposed Committee Substitute, Version T.
Section 1 is the governor's budget proposal, which switches
appropriations to general funds or other funds. It reduces
deferred maintenance requests by 60 percent, removes two
large Information Technology (IT) projects from the
Department of Administration and the Department of Revenue,
and reduces the Alaska Housing Finance Corporation request
by 59 percent. It removes additionally requested funds for
the Village Safe Water Program, reduces the Department of
Transportation's (DOT) General Fund match pot by $15
million, and adds back the Alaska Manufacturing Extension
Program. It removes $36 million in receipt authority for
two new UAF facilities and adds $9.9 million to the Court
System for three projects. It spends $45 million in
additional Cruise Ship Funds, as shown on page 42 of the
bill.
Co-Chair Stoltze requested more details on the criteria used
for Cruise Ship Funds.
Mr. Armstrong clarified that after discussions with the
Department of Law it was discovered that there was an
unexpected $50 million more in Cruise Ship Funds. When the
program was started it was front loaded, but none of that
money was spent. Last year the governor vetoed about $18
million in projects. Statewide projects related to helping
cruise ship passengers and which could be funded by this
account, were then sought.
1:43:30 PM
Representative Gara asked which version of the bill Mr.
Armstrong was referring to. Mr. Armstrong clarified that it
was the Senate version, SB 75.
Representative Gara asked if the projects were statewide.
Mr. Armstrong replied that they were and further explained
that projects were identified that might fit cruise ship
passengers' needs. He gave as an example the Egan Center in
Anchorage. Co-Chair Stoltze added that legal advice was
followed.
Co-Chair Hawker characterized the projects as being able to
withstand court challenges.
1:44:55 PM
Mr. Armstrong continued to explain that Section 6 was the
DOT stimulus section. It removed all of DOT's contingent
road projects that don't qualify for stimulus funds. Four
of five of the governor's largest priorities were also
removed. The only new project was $3.5 million for the
Whittier Shot Gun Cove Road. The Senate moved all of the
contingent projects into the funded projects category. It
totals roughly $247 million of stimulus and regular DOT
program authority.
Mr. Armstrong related that Section 10 contains the capital
projects that were removed from the supplemental budget.
Section 14 E is a $25 million placeholder for the Renewable
Energy Fund Grant. Sections 19-34 are legislative
reappropriation requests.
Mr. Armstrong concluded that the proposed budget spends $500
million less than the governor's request: $209 million is
general funds and $177 million is other state funds, and
$117 million is federal funds.
1:46:24 PM
Representative Austerman inquired whether there was any
cruise ship tax money left "on the table" that could be
spent this year. Mr. Armstrong replied that there was
roughly $4 million left.
Representative Gara asked if all new projects not included
in the governor's budget were funded by the cruise ship tax
money. Mr. Armstrong reported that the Court System
requests for roughly $10 million were added by the Senate
Finance Committee. Representative Gara asked if the Court
System requests and the $45 million in cruise ship funded
projects were the only new projects. Mr. Armstrong
explained that the governor proposed to spend $40 million
and the legislature added $45 million for new projects
chosen from a list submitted by legislators. Representative
Gara summarized that the amount increased from $40 million
to $85 million.
1:47:39 PM
Co-Chair Stoltze noted a danger of not spending cruise ship
money as advised by Legislative Legal.
Vice-Chair Thomas asked if there were any funds for harbors.
Mr. Armstrong said he did not look at that category
specifically. He referred Vice-Chair Thomas to the
Legislative Finance web page for that information.
Co-Chair Hawker referenced page 43 of the bill to highlight
money going from the passenger vessel services
infrastructure - commercial vessel passenger tax account -
toward various ports.
1:49:51 PM
Co-Chair Hawker MOVED to adopt CSSB 75 (FIN), 26-GS1003\T,
the version passed out of the Senate, as the working
document before the Committee. There being NO OBJECTION, it
was so ordered.
1:50:53 PM
Representative Salmon requested information about Section 23
on page 68. He expressed concern about the amount re-
appropriated for his district.
Co-Chair Stoltze commented on how the re-appropriation
process is supposed to work with members from both the House
and the Senate reaching concurrence.
Representative Salmon stressed the importance of his
district's needs.
1:53:02 PM
Representative Gara inquired about the process of today's
meeting. Co-Chair Stoltze replied that public testimony
would be taken.
Mr. Armstrong related that regarding re-appropriations, it
is incumbent on all of the legislative offices to review the
items.
Mr. Armstrong noted, in response to Vice-Chair Thomas's
concern, that the Harbor Program with the Corps of Engineers
was reduced by $1.15 million in general funds.
1:54:17 PM
Representative Gara voiced concern about port-related
projects funded by cruise ship funds. He took issue with
how the projects were ranked and he wondered what other
funding sources were available, especially to the Port of
Anchorage Project.
Co-Chair Hawker disagreed that cruise ship tax expenditures
must be associated with ports. He suggested that the best
test is whether they would provide value for cruise ship
passengers.
1:56:48 PM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, pointed out that the Senate CS
removed some of the governor's projects. The governor
recognizes that there are projects that are not in the bill
due to the current economy. There are some items that merit
further dialogue, especially those that could leverage
federal dollars. She listed several federal highway and
energy projects. There are also resource development
priorities: Dalton Highway Project, in-state gasline, DOR
reservoir studies, and access to western Alaska.
1:59:11 PM
Vice-Chair Thomas asked if the projects required general
fund money. Ms. Rehfeld said they did; however, one project
under the Alaska Energy Authority would be funded from the
Alaska Capital Income Funds. The Dalton project is in the
stimulus package.
2:00:02 PM
Co-Chair Hawker reported that his outtake from the
governor's press conference was an endorsement for continued
frugal budgeting and to further reduce the budget. He
questioned the request to increase the budget. He wondered
if there was a list of offsets or further reductions. Ms.
Rehfeld did not have a list of deletions. She believed that
it was the intent of the legislature not to jeopardize match
and leverage fund sources.
AT-EASE: 2:01:33 PM
RECONVENED: 2:02:26 PM
Co-Chair Stoltze noted there would be another opportunity
for public testimony.
CSSB 75 (FIN) was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 2:04 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AARP.pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |
| Frequently Asked Questions.pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |
| HB 204 - Increase WWAMI Class Size.pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |
| Physician Shortage Fact Sheet Header.pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |
| Sponsor Statement WWAMI (3).pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |
| Stateof AlaskaDeptHSS.pdf |
HFIN 4/13/2009 1:30:00 PM |
HB 204 |