Legislature(2011 - 2012)HOUSE FINANCE 519
05/11/2011 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB107 | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 107 | TELECONFERENCED | |
| += | SB 46 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
May 11, 2011
9:01 a.m.
9:01:48 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 9:01 a.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
James Armstrong, Staff, Representative Bill Stoltze; Chip
Thoma, President, Responsible Cruising in Alaska, Juneau;
Mary Hakala, Education Coordinator, STEM, Juneau; Tom
Brice, AK District Council of Laborers, Juneau; Jeff
Weltzin, Tanana Chiefs Conference; George Pierce, Self,
Kasilof; Representative Alan Dick; Representative Mike
Kawasaki; Representative Cathy Munoz; Representative Bob
Miller; Representative Steve Thompson.
PRESENT VIA TELECONFERENCE
Bill Smith, Kenai Peninsula Borough Assembly, Homer; Walt
Wrede, Manager, City of Homer, Homer; Patti Mackey,
Government Relations Chair, Alaska Travel Industry
Association, Ketchikan; Wayne Pattison, Secretary of the
Board, Nikiski Senior Center, Nikiski; Brad Janorschke,
General Manager, Homer Electric Association, Homer; Joe
Griffith, ARCTEC, Mat-Su; Larry DeVilbiss, Mayor, Mat-Su;
Rustin Kraft, Mat-Su Borough Purchasing Officer and Goose
Creek Project Manager, Goose Bay; Ron Arvin, Mat-Su; Seth
Kelly, President, Big Lake Community Council; Roe
Sturgulewski, Rise Alaska and Consultant to the Borough,
Mat-Su; Cindy Bettine, Mat-Su Borough Assembly, Big Lake;
Tom Smith, Municipal Manager, Skagway; Yvette Wilkins,
Self, Eagle River; Marge Larson, Girl Scouts of Alaska;
Phil Morris, Mayor, Kachemak City; Donald Moore, City
Manager, Dillingham; Sam Robert Brice, Self, Fairbanks;
John Handeland, Self, Nome; Luke Hopkins, Mayor, Fairbanks;
Jim Dodson, President, Fairbanks Economic Development
Corporation; Craig Campbell, President and Chief Operating
Officer, Alaska Aerospace Corporation, Anchorage; Doug
Isaacson, Mayor, City of North Pole; Gwen Ramras, Self,
Fairbanks; Barbara Negengast, Principal, Homestead
Elementary, Eagle River; Jay Nolfi, Self, Mat-Su; Jerry
Jez, Self, Eagle River; Jack Wilbur, President, Design
Alaska, Fairbanks; Josie Stiles, City of Nome, Nome; Gwen
Lee, Executive Director, Arc of Anchorage, Anchorage; Susan
Bomalaski, Catholic Social Services, Anchorage; Lyle
Brazier, Farmer, Delta Junction; Former Governor Bill
Sheffield, Port of Anchorage, Anchorage; Susan Gorski,
Executive Director, Chugiak-Eagle River Chamber, Eagle
River; Stasha Kalugin, President, Nikolaevsk Community
Council, Nikolaevsk; Ann Williams, Self, Anchorage; Steven
Grohol, Eagle River Lions Club, Eagle River; Paul Kendall,
Self, Anchorage; Jerry McCutcheon, Self, Anchorage; Suzy
Pearson, Executive Director, AWAKE, Anchorage; John Cook,
Director, Alaska Railroad Corporation, Fairbanks; Bryan
Lindamood, Project Manager for the Tanana Access Project,
Alaska Railroad Corporation; Jim Johansen, Deputy Mayor,
City of Houston; Kenny Ray, Head Football Coach, Eagle
River High School, Eagle River; Dick Traini, Anchorage
Assembly, Anchorage; Michael Melielo, Self, Eagle River;
Tom Smith, Self, Skagway; Michael Howard, Fairview
Community Council, Anchorage; Roger C. Burggraf, Self,
Fairbanks; Scott C. Eickholt, Laborers Local 942,
Fairbanks; Jim Sampson, Self, Fairbanks; Lake Williams,
President of Fairbanks Labor Council, Fairbanks; Geoffrey
Bacon, Self, Fairbanks; Ken Reinke, Director, Threshold
Recycling Services, Kodiak; David Weber, City of Kachemak,
Homer; Steve Atwater, Superintendent of the Kenai Peninsula
School District, Kenai; Jim Arnesan, Self, Eagle River;
Clinton White, STG Incorporated, Anchorage; Roy Agloinga,
Norton Sound Health Corporation, Nome; Duane Heyman,
Institute of the North, Anchorage; Ira Perman, Institute of
the North, Anchorage; Virgi Thompson, Mayor, Houston;
Julianne McGuiness, Executive Director, Alaska Botanical
Garden; Kevin Shumway, Self, Houston; Lee Himes, Self,
Houston; Sandy Traini, Self, Anchorage; Toby Sullivan,
Director, Kodiak Maritime Museum, Kodiak; Doreen Terpak,
Homeowner; Oscar Hall, President, Eagle River Booster Club,
Eagle River; John Mackinnion, Executive Director,
Associated General Contractors Of Alaska; Elvi Gray
Jackson, Assembly Member, Anchorage; Pat Mahoney, Eagle
River Lions Club, Eagle River; Jake Quakenbush, Assistant
Manager, IBEW Local 1547, Fairbanks and President,
Fairbanks Building and Construction Trades Council,
Fairbanks; Beth Nordlund, Executive Director, Anchorage
Park Foundation; Christian Hartley, Fire Officer, Houston
Fire Department, Houston; Valerie Hall, Self, Eagle River;
Nicole Schwan, Manager, Kodiak Animal Shelter, Kodiak;
Brent Johnson, Kenai Assembly and President, Cook Inlet
Aquaculture Association, Kasilof; Steve Patin, Self,
Anchorage; John Hozey, City Manager, Valdez; Joan McBeen,
City Council Member, Tenakee Springs.
SUMMARY
HB 107 BUDGET: CAPITAL
CSSB 46(FIN)
BUDGET: CAPITAL
9:02:27 AM
Co-Chair Stoltze relayed that there would be testimony on
HB 107 and CSSB 46(FIN) concurrently.
HOUSE BILL NO. 107
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
CS FOR SENATE BILL NO. 46(FIN)
"An Act making and amending appropriations, including
capital appropriations, savings deposits in the form
of appropriations to the statutory budget reserve
fund, and other appropriations; making appropriations
to capitalize funds; and providing for an effective
date."
9:03:20 AM
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE,
highlighted the major differences between HB 107 and CSSB
46(FIN). Section 1 of CSSB 46(FIN) did not include $100
million in bonding authority for the University of Alaska
deferred maintenance projects. Section 4 related to energy
and was slightly different in the Senate version. He
relayed intent to speak with Legislative Legal Services and
the Legislative Finance Division to iron out the
differences. The House version included $21 million for the
Alaska Gasline Development Corporation compared to the
Senate version, which had included $5 million. The Senate
version added an additional $50 million to the Alaska
Housing Finance Corporation (AHFC) Weatherization Program.
Representative Doogan queried the amount of the proposed
AHFC Weatherization Program appropriation. Mr. Armstrong
responded that the Senate version had included an
additional $50 million, which increased the program funding
to $76.5 million.
Mr. Armstrong continued to discuss differences between the
two bills. The Senate version did not include $7.2 million
for the Alaska Gasline Development Corporation in its
supplemental section. The Senate version funded $400,000
for the scholarship program with the remainder of the $370
million from the AHFC capital fund and $30 million in
general funds; whereas, the House version proposed the
placement of FY 11 funds into the AHFC account. The Senate
version did not include $200 million for the instate
gasline fund, which the House had included in the AHFC
fund. The Senate had added $8 million added for the Low
Income Home Energy Assistance Program, which was based on
an anticipated shortfall in federal funding. The Senate had
changed the Statutory Budget Reserve (SBR) deposit
structure; $500 million of FY 11 funds and $500 million of
FY 12 funds would go into the SBR. The House version did
not include the deposits; however, a House proposal the
previous day would have automatically swept $460 million
into the SBR on June 30. He explained that the $460 million
combined with the $370 the House did not intend to use from
the AHFC fund came close to the savings included in the
Senate version. The Senate had not included a Department of
Law request in the amount of $14 million, which was
intended for BP corrosion cases and TAPS [Trans Alaska
Pipeline System] litigation. He added that the bills
included slightly different non-severability language.
Co-Chair Stoltze wondered whether Mr. Armstrong understood
how budget language would prevent third-party litigants
from suing. Mr. Armstrong replied that he had never worked
on tort reform.
9:08:19 AM
Mr. Armstrong summarized that the Senate version spent
approximately $2.8 billion compared to the House version,
which spent approximately $3.050 billion.
Co-Chair Stoltze recalled that there had been an
endorsement of the House debt retirement program, which had
previously been referred to as a concession.
Representative Gara noted that statute could not dictate
who could sue and who could not; he believed it was
constitutional. He asked about the language in the House
version that would sweep funds directly into the SBR at the
end of the fiscal year, given his belief that surpluses
were typically swept into the Constitutional Budget
Reserve.
Mr. Armstrong responded that language in the supplemental
bill would sweep the money into the SBR.
Co-Chair Stoltze noted that money was not necessarily
automatically swept into the CBR. Mr. Armstrong replied
that the CBR was paid off.
Mr. Armstrong hoped to have a House CS version of the bill
available later in the day or the following day.
Representative Doogan asked whether applying the Senate
changes to the current House bill would increase the total
budget cost and if so, how much the increase would be.
Mr. Armstrong responded that under the Senate version there
was approximately $20 million in FY 11 funds remaining
after the $500 million deposit. He explained that the bills
were structured differently and the Senate version did not
leave room for any of the additions the committee had
talked about the prior day.
Representative Doogan surmised that in order to fund
additional budget items the committee had discussed, the
$500 million sweep into the SBR would need to be removed
from the bill.
Mr. Armstrong replied that the earlier version of SB 46
[currently CSSB 46(FIN)] had included $200 million in FY 11
and $300 million, which was subsequently increased to two
deposits of $500 million apiece. He stated that the Senate
version did not allow room for the House to include
additional items.
Co-Chair Thomas deduced that the Senate version had left no
room for the House members to add any money for items in
their districts. Mr. Armstrong responded that under the
Senate version there was $21.8 million remaining in FY 11
funds and a projected surplus of $159 million in FY 12. He
reiterated that $500 million would be swept in on June 30
and another $500 million would be swept in on July 1.
Co-Chair Thomas relayed that in order for the House members
to fulfill the needs of their districts it was necessary to
dip into savings.
Co-Chair Stoltze noted that it would be necessary to
reevaluate the amount available for savings.
Co-Chair Thomas clarified that he was speaking about the
$500 million in FY 11 funds. Mr. Armstrong answered the
only funding source remaining would be the AHFC capital
fund of approximately $370 million if the Senate structure
was adopted.
Co-Chair Thomas referred to scholarship monies. Mr.
Armstrong replied that the House would put the FY 11 funds
into the AHFC account to fund performance scholarships.
9:14:27 AM
Co-Chair Stoltze discussed the importance of the capital
budget and its role in putting Alaskans to work on projects
including those in rural areas and on weatherization. He
stressed that a delay in passing the budget until September
was not a viable option.
Mr. Armstrong urged members to make their amendments to
CSSB 46(FIN).
Co-Chair Stoltze agreed that CSSB 46(FIN) would be the
working vehicle going forward.
9:16:00 AM
CHIP THOMA, PRESIDENT, RESPONSIBLE CRUISING IN ALASKA,
JUNEAU, spoke in support of projects for Homer, Hoonah, and
Kodiak that were included in both HB 107 and CSSB 46(FIN).
He believed that the ports were not typically given the
appropriate deference, funding, and infrastructure. He
noted that each of the ports had seen increased activity
during the current year. He was concerned about two
projects included in HB 107 related to the Alaska Aviation
Museum energy and safety improvements and for the Alaska
Wildlife Conservation Center (page 142). He did not believe
that the projects had the nexus with cruise ships and their
passengers, which was necessary in order to comply with
state law. He stressed that projects should be focused on
the cruise ship docks. He urged the committee to exclude
the two projects and to move forward with the others.
9:18:31 AM
BILL SMITH, KENAI PENINSULA BOROUGH ASSEMBLY, HOMER (via
teleconference), spoke in support of the gasline project
his hope that it would extend through Kachemak City. He
discussed that the project was in phase 2 of its
development; a PR station and 0.5 miles of pipe had been
installed the prior year. The project had grown in response
to legislative intent language from the past year.
Construction on the last phase of the project could begin
during the current year. He emphasized local support of the
project. No further support would be needed from the state
and communities would be able to complete the project on
their own. He explained that the completed project could
save over $1 million in operating costs to publicly owned
tax payer supported buildings and typical private residence
could save an average of $250 per month. He relayed that
the first phase of the project had been funded by a grant
to municipalities. He believed the second phase should be
handled the same way to reduce bureaucratic processes. He
opined that the Senate energy bill called for the
development of the most cost effective long-term energy
source for communities. He believed the gasline project
embodied the same principal.
Co-Chair Stoltze queried whether the appropriation was to
Enstar. Mr. Smith replied that the appropriation was for
the City of Homer, which contracted with Enstar.
9:21:10 AM
WALT WREDE, MANAGER, CITY OF HOMER, HOMER (via
teleconference), vocalized support for the gasline project.
He discussed that wells were producing gas 14 miles from
Homer, but that the gas was flowing north. The regional
project had strong support from the Kenai Peninsula
Borough, Chamber of Commerce, Homer School District,
borough economic development district, South Peninsula
Hospital, and more. He referenced spreadsheets in members
packets that showed how much Homer would save if the
project was completed. There were strong local matching
funds available, which represented more than 50 percent.
Homer was ready to convert its facilities to natural gas
and the community had worked hard to address legislative
intent language from the prior year. He urged support of
the project and thanked the committee for their time.
Vice-chair Fairclough asked testifiers to identify the
bill, the project name, and the total funding request.
9:24:50 AM
PATTI MACKEY, GOVERNMENT RELATIONS CHAIR, ALASKA TRAVEL
INDUSTRY ASSOCIATION, KETCHIKAN (via teleconference),
requested additional funding for the tourism marketing
program to enhance tourism levels. She discussed that
Alaska continued to compete with other destinations for
visitors; over 5,000 industry jobs and 265,000 visitors had
been lost over the past two years. Improvements were
beginning to show; however, a diminished presence in the
marketplace would cause the state to lose the momentum it
had gained. Two bills aimed at addressing the issue had
been held over for the following legislative session;
therefore, the industry currently could not maximize the
available match. Operating funds were the lowest the
industry had seen in 10 years. She urged the committee to
fund tourism marketing.
Co-Chair Stoltze remarked that the House Finance Committee
had passed one of the tourism marketing bills out of
committee.
9:28:34 AM
WAYNE PATTISON, SECRETARY OF THE BOARD, NIKISKI SENIOR
CENTER, NIKISKI (via teleconference), supported the $5
million municipality grant to the Kenai Senior Center from
the Department of Commerce, Community and Economic
Development. The project had been underway for over 10
years and the planning process had been completed. He
stressed that the current building was in very poor shape
and that a new facility was needed.
Co-Chair Stoltze remarked that the project was included in
HB 107, but not in CSSB 46(FIN).
9:31:32 AM
BRAD JANORSCHKE, GENERAL MANAGER, HOMER ELECTRIC
ASSOCIATION, HOMER (via teleconference), supported the
Homer Electric Association Soldotna to Nikiski transmission
upgrade appropriation of $25 million. He opined that the
project strengthened the railbelt transmission grid and
benefited Alaskans from Homer to Fairbanks. The project
improved the utility's ability to export power from a state
owned project off the Kenai Peninsula. Arctec participants
supported the project.
9:32:51 AM
JOE GRIFFITH, ARCTEC, MAT-SU (via teleconference),
supported the CSSB 46(FIN) language that funded electric
transmission and energy items. He discussed that Arctec
consisted of five railbelt utilities. He hoped the bill
would be economic and provide job security. He agreed that
passing the budget in the spring was important.
Co-Chair Stoltze asked whether the projects had to be tied
together or whether they could stand on their own. Mr.
Griffith replied that the projects could stand alone.
Representative Gara asked whether Arctec projects would
save consumers money because each state dollar invested
represented one dollar that would not go into the base that
the Regulatory Commission of Alaska would charge consumers.
Mr. Griffith responded in the affirmative.
9:36:06 AM
LARRY DEVILBISS, MAYOR, MAT-SU (via teleconference),
supported funding for the rail extension project. He
relayed that the requested $55 million would put the
project half way between Pt. MacKenzie and Houston. He
noted that the project would be pushed back without the
funding, which would result in delayed revenue to the
state. He expressed concerns about a lack of funding for
road safety programs. He appreciated the efforts of the
committee.
Co-Chair Stoltze remarked that the numbers between the
House and Senate bill versions were very disparate in their
funding for the Anchorage and Mat-Su areas. He added that
the committee was working to do what they could.
Representative Neuman communicated that the committee had
been working to improve road safety.
Representative Gara asked whether there was a customer need
in Pt. MacKenzie if the railroad spur was built out to the
area. He wondered how the state would receive $300 million
in tax revenue from the railroad spur.
Mr. DeVilbiss assured the committee that the railroad was
not a "railroad to nowhere." He relayed that the port was
functioning and shipments of coal and cement would be
transported to the area. He explained that Pacific Rim
markets were lined up and that time was an issue. He
discussed that the tax revenue to the state would come from
the export of minerals.
Co-Chair Stoltze noted that there were studies available
from the Institute of Social and Economic Research. He
asked Representative Neuman to provide the information to
Representative Gara.
Representative Neuman responded in the affirmative. He
added that the rail spur had support from various areas
throughout the state. The project would create jobs and
would transport cement, concrete, Healy coal, gravel, and
other.
Representative Gara had wondered whether the project was
economic and did not mean to be critical.
Co-Chair Stoltze noted that there were many voluminous
studies that were available.
9:43:58 AM
RUSTIN KRAFT, MAT-SU BOROUGH PURCHASING OFFICER and GOOSE
CREEK PROJECT MANAGER, GOOSE BAY (via teleconference),
encouraged funding for the Goose Creek Correctional Center.
He was concerned about potential effects on prison
structures if additional funds were not provided.
Completion of the prison was projected for August 2011; at
that time the facility operation and utility costs would
transfer to the owner and the lease purchase agreement
would transfer to the state. There would be a one-year
warranty period and it would be the desire of the owner to
test the systems during the warranty period. He was
concerned that current funding was only adequate to keep
the new facility warm, but would not fund the prison
operation. He was also concerned about the impact on the
water and wastewater system. He urged additional funding to
reach the original amount proposed by the governor.
Co-Chair Stoltze explained that the House had included $3.6
million for the project and that the Senate had not
included funding. He noted that the House was working with
the administration to salvage the project.
Representative Neuman commented that the prison would
provide 350 jobs in Mat-Su and that it had been worked on
for years. He believed that the project was good and that
it created jobs for the state.
9:48:50 AM
RON ARVIN, MAT-SU (via teleconference), supported the
$17.25 million that had been added to the governor's
proposed $20 million for the rail extension. He asked the
committee to support a $55 million appropriation for the
project. He supported $3 million in funds to support
substandard roads and bridges, $1 million for a bridge
replacement, $1.5 million for a school expansion, and $3
million for the South Denali Visitor Center. Mat Su was the
fastest growing area of the state and he was concerned
about the highway safety in the area. He encouraged the
support of road upgrades.
Co-Chair Stoltze discussed the challenges that the House
was faced with due to the inequity of funding that had been
made by the Senate.
Mr. Arvin believed that the funding had not been spread
equally across the state. He believed it was important to
look at the infrastructure, education, and essential
services that the government should be providing.
Representative Gara relayed that the Department of
Transportation and Public Facilities (DOT) had told him
that people falling asleep at the wheel was one of the
major causes of accidents. He encouraged Mr. Arvin to
contact the department regarding the success of rumble
strips.
9:54:55 AM
SETH KELLY, PRESIDENT, BIG LAKE COMMUNITY COUNCIL (via
teleconference), encouraged funding for the rail extension,
the prison, and the port. He believed the projects were
important for the Mat-Su Valley and the entire state. The
transportation impact study was important and was a way for
the community to be proactive and for the borough to
provide responsible planning. The study was currently tied
to railroad project for $250,000.
Representative Neuman discussed that the railroad project
would go through Big Lake and that the road to Port
MacKenzie would pass through the community as well. He
encouraged funding for the community impact assessment that
was not currently funded in the budget. He wondered how
many members had requested the project.
Mr. Kelly responded that the entire community was in
support of the projects.
9:59:42 AM
ROE STURGULEWSKI, RISE ALASKA and CONSULTANT TO THE
BOROUGH, MAT-SU (via teleconference), spoke in support of
increased funding for the Goose Creek prison. Routine
maintenance at the facility would be required or damage
would result. He discussed that inadequate funding put
extended warranties in jeopardy.
10:03:12 AM
CINDY BETTINE, MAT-SU BOROUGH ASSEMBLY, BIG LAKE (via
teleconference), testified in support of the railroad
project. She believed keeping the projects on schedule
would help move commodities when the price was right and
would diversify the economy of the state in the long run.
She supported the Bogard Road extension and requested an
additional $29 million the project. She urged funding for
the railroad, the Bogard Road extension, and the prison.
10:07:58 AM
TOM SMITH, MUNICIPAL MANAGER, SKAGWAY (via teleconference),
testified in support of the three projects for Skagway
listed in the budget. He encouraged full funding of the DOT
small harbor matching program, $10 million in improvements
to the Alaska Industrial Development and Export Authority
owned ore dock terminal, and the library construction
matching grant program.
10:09:59 AM
YVETTE WILKINS, SELF, EAGLE RIVER (via teleconference),
requested additional funding for road maintenance in the
area. She explained that the road flooded every year due to
snow and that homes had been ruined. She thanked the
committee for its time.
Vice-chair Fairclough pointed out that the road mentioned
in the testimony was a state road.
10:14:03 AM
MARGE LARSON, GIRL SCOUTS OF ALASKA (via teleconference),
voiced support of the $500,000 appropriation for the Girl
Scouts Singing Hills retreat facility. The center would
focus on leadership development in science, technology,
engineering, math, and outdoor skill building. She stressed
that leadership counseling for girls helped them to gain
confidence, courage, and character.
Representative Doogan wondered about the camp the facility
would be used for.
Vice-chair Fairclough responded that the camp was a day
camp. She noted that she had been a girl scout and that all
of the women in the legislature had joined an honorary
scout group. She supported the appropriation.
PHIL MORRIS, MAYOR, KACHEMAK CITY (via teleconference),
urged support for the Homer-Kachemak City gasline. He
believed that the project would encourage economic
development. He thanked the committee for its support.
10:19:34 AM
MARY HAKALA, EDUCATION COORDINATOR, STEM, JUNEAU, requested
support for funding of the Science Technology Engineering
Math (STEM) program. The program had been funded with
appropriations from the U.S. Department of Defense and had
lost half of the funding in December 2010. The program
worked to enhance students' capabilities in science and
math. She highlighted Alaska's participation in First Lego
League and First Tech Challenge. She urged funding to
support STEM work throughout the state.
Representative Costello asked whether schools were working
to allow teachers to team up to teach the curriculum. She
expressed her support for the program.
Ms. Hakala replied that integrating subjects had proven to
be a challenge. There had been discussions with the
commissioner of the Department of Education and Early
Development vocalizing support. She hoped to have more
success in cross disciplinary ventures related to Alaska
Performance Scholarships. The program supported surround
school activities such as summer camps, after school
functions, and other.
Representative Guttenberg offered praise for the STEM
program.
Representative Neuman asked whether there were any other
programs in the Juneau School District that offered
alternative learning opportunities.
Ms. Hakala clarified that the program was part of a non-
profit organization and did not work under the Juneau
School District. She listed alternative programs that fell
under the Juneau School District including, First Robotics,
teachers working with SEAPerch, and elementary science
programs. The Anchorage School District was the only
district that had the capacity to offer STEM resources.
Rep. Newman asked whether Anchorage was the only school
district that was actively participating in the program.
Ms. Hakala replied in the negative. She explained that
Anchorage was the only school district with internal
capabilities to use the program in its classrooms. There
were math, science, and technology specialists available at
the Department of Education and Early Development.
10:28:39 AM
DONALD MOORE, CITY MANAGER, DILLINGHAM (via
teleconference), requested support for funding of the Snag
Point sewer line emergency relocation. He explained why the
$3.8 million to $4 million project was necessary. The $1
million in the capital budget was not sufficient to fund
the bidding of the project. He urged the committee to
include the original request of $1.8 million to make the
project viable. The sewer line serviced the low income
areas, downtown, and businesses. The city had made
contributions to the project, but state financing was
essential. He stressed that an environmental disaster would
result if the line broke.
Representative Edgmon reiterated the urgency of the
situation and offered support for funding the project. He
added that Dillingham had recently been told that it did
not qualify for a Department of Environmental Conservation
loan it had hoped to obtain.
10:36:34 AM
Co-Chair Stoltze asked whether the Senate was aware of the
problem.
Representative Edgmon replied that the Senate was aware of
the issue to some extent. He explained that the situation
was had been rapidly evolving.
10:37:22 AM
SAM ROBERT BRICE, SELF, FAIRBANKS (via teleconference),
expressed opposition to a delay in the passing of the
capital budget. He stressed that a delay would jeopardize
federal funding, delay construction, and cut back hiring.
He did not support bundling language related to energy
projects. He encouraged the inclusion of $44 million for
the northern rail bridge project. He opined that the
project would allow for year-round military training
operations.
Vice-chair Fairclough clarified that the bundling language
in CSSB 46(FIN) had been removed from HB 107.
Representative Wilson enquired how many jobs would be
created if the bridge project moved forward. Mr. Brice
believed that a minimum of 200 jobs would be created.
Representative Wilson asked whether the project would be
utilized by the entire state. Mr. Brice answered in the
affirmative.
10:42:40 AM
Representative Gara conveyed his support for the
weatherization project and believed it had worked well for
Alaskans.
10:43:31 AM
JOHN HANDELAND, SELF, NOME (via teleconference), spoke in
favor of funding for the Richard Foster Building. He
offered a brief background of the project and expressed his
affection for Richard Foster. He stated that the existing
facility old and was in the flood plain. The building would
serve the region and provide native, mining, and dog
mushing history. He stressed the importance of the
preservation of historical documents.
10:48:48 AM
LUKE HOPKINS, MAYOR, FAIRBANKS (via teleconference),
supported projects in HB 107. He urged support for the
Tanana River Bridge project. He stressed the importance of
the bridge for military stability and the state's economy.
He hoped that the state would not lose federal government
funding.
Representative Wilson queried which federal funds he was
referring to. Mr. Hopkins understood that there were two
pots of money with time limits on them. The first amount
was $44 million and the amount in the following year was
approximately $66 million. He added that the first amount
could be returned as early as the spring of 2012.
Representative Wilson understood.
10:52:59 AM
Vice-chair Fairclough stated that the Senate had not seen
the project as a priority; however, the House believed it
was a priority.
Representative Guttenberg clarified the pots of money
appropriated from the Department of Defense required
matching funds from the state.
Mr. Hopkins added that the levy construction required state
funding.
Representative Neuman expressed concern with BRAC [Defense
Base Closure and Realignment Commission] closures in the
Fairbanks area. He wondered how the bridge would affect
future BRAC closures and how the state supported military
bases in the Fairbanks area.
Mr. Hopkins replied that striker brigades trained in the
Fairbanks area. The bridge would allow military training
vehicles to access the area year-round. He thought the
issue involved the entire state.
10:58:06 AM
JIM DODSON, PRESIDENT, FAIRBANKS ECONOMIC DEVELOPMENT
CORPORATION (via teleconference), spoke in favor of funding
for the Tanana River project. He believed the bridge was
the most important project to diversify, sustain, and grow
the Alaskan economy. He stated that military was a major
industry in Alaska. He requested support from the House
that it had provided the prior year. He emphasized that the
project would impact the entire state.
Representative Guttenberg asked about the project's
statewide influence.
Mr. Dodson replied that the JPARC [Joint Alaska Pacific
Range Complex] was the most significant military training
area in the world. The ice bridge access limited the
military's ability to bring in exercises from around the
world. He stressed that the new bridge was critical to
growing a military presence in Alaska.
11:02:13 AM
CRAIG CAMPBELL, PRESIDENT and CHIEF OPERATING OFFICER,
ALASKA AEROSPACE CORPORATION, ANCHORAGE (via
teleconference), spoke in favor of the $4 million
appropriation for the operation and maintenance of the
Kodiak launch complex. The Alaska Aerospace Corporation was
also requesting $4 million for its financial obligations in
the coming year. The request had been increased due to the
loss of federal funding. He explained the funding history
for the corporation. The corporation was working to obtain
future funds from the U.S. Department of Defense. He urged
the House to reinsert the $4 million back into the budget
and to include the additional $4 million request.
11:05:25 AM
DOUG ISAACSON, MAYOR, CITY OF NORTH POLE (via
teleconference), testified in support of $44 million to
complete the Tanana Bridge. He agreed that weatherization
was an important issue, but people needed to have jobs and
money to make the improvements. He stressed the importance
of the bridge for military operations in Alaska. He relayed
a story about the aging infrastructure. He spoke in favor
of $2.5 million for the North Pole sewer line. There had
been a major break in the pipe earlier in the spring, which
highlighted that the infrastructure was aging. The
treatment plant was vital for the operation of Flint Hills
and Petro Star. He urged funding for the Tanana Bridge and
North Pole sewer line.
11:10:36 AM
Representative Wilson clarified that the additional money
was for low income heating and not for a rebate or
weatherization program. She asked whether there were other
loan or grant options to help pay for the sewer project if
an appropriation was not included in the capital budget.
Mayor Isaacson replied that the city would continue to
pursue other funding. He emphasized that the infrastructure
was rapidly deteriorating and the community needed the
money urgently.
11:12:33 AM
Representative Wilson wondered what had caused the sewer
line to break. Mayor Isaacson replied that an accident had
fractured the pipe, which caused the eruption.
11:14:54 AM
GWEN RAMRAS, SELF, FAIRBANKS (via teleconference),
testified in support of funding for the Fairbanks North
Star Borough Parks and Recreation Department. The funding
would be used partially for the resurfacing of six tennis
courts in Fairbanks. The courts had been resurfaced through
private funds in 2002 due to disrepair. She believed the
funds would help in conjunction with a potential grant from
the U.S. Tennis Association. The sport contributed to the
quality of life for many citizens in the Interior.
11:18:29 AM
BARBARA NEGENGAST, PRINCIPAL, HOMESTEAD ELEMENTARY, EAGLE
RIVER (via teleconference), spoke in support of money
allocated for security and safety upgrades at Homestead
Elementary. Funds would allow the school to upgrade its
intercom and security system, which would enable teachers
to focus on teaching their students.
Representative Costello stressed that passing the capital
budget in the spring would allow upgrade maintenance work
to occur during the summer and would not interrupt
classroom learning. Ms. Negengast agreed.
11:21:25 AM
JAY NOLFI, SELF, MAT-SU (via teleconference), spoke in
support of $55 million to fund the railway extension to
Port MacKenzie. She opined that the location of the port
was the most viable cost effective means resource
exportation. She emphasized that it was imperative to take
advantage of the opportunity. She believed the extension
would benefit all Alaskans.
11:24:02 AM
JERRY JEZ, SELF, EAGLE RIVER (via teleconference), spoke in
support of roof replacement funding for the Eagle River
Lions Club. The roof had been patched several times in the
past few years and the building was beginning to
deteriorate due to roof problems.
Co-Chair Stoltze explained that Lions Club facility was
considered the community center of Eagle River. He detailed
that the building was the community's largest public
facility. He stressed that the club provided an independent
Parks and Recreation program as a community service. Mr.
Jez agreed.
11:27:52 AM
JACK WILBUR, PRESIDENT, DESIGN ALASKA, FAIRBANKS (via
teleconference), spoke in favor of adding $44 million in
funding for the Tanana River Crossing. He explained that
the military was a large component of Alaska's economy. He
expressed concern that the military would perceive the
action as a disinterest in the military.
11:29:42 AM
JOSIE STILES, CITY OF NOME, NOME (via teleconference),
spoke in favor of $14 million for the Richard Foster
building construction. She stated that Nome hoped to honor
Richard Foster's state contribution with the building
dedicated in his name. She stated that the building would
display historical collections and some of Richard Foster's
belongings and collections related to his life. The current
facility was located in a flood plain, which made the new
building necessary.
Co-Chair Stoltze thanked Representative Neil Foster for his
work on the project and contribution to the inclusion of
funds for the project in the capital budget.
11:34:13 AM
GWEN LEE, EXECUTIVE DIRECTOR, ARC OF ANCHORAGE, ANCHORAGE
(via teleconference), voiced support for Arc of Anchorage
safety and deferred maintenance funding. The organization
provided services to people with intellectual and
developmental disabilities. She stated that the facility's
roof, paint, and phone service needed refurbishment.
Vice-chair Fairclough queried a specific project name and
funding amount for the Arc of Anchorage. Ms. Lee replied
that funding was included in CSSB 46(FIN) for the Arc of
Anchorage in the amount of $580,000.
Co-Chair Stoltze remarked that the funding was also
included in HB 107.
Representative Gara thanked Ms. Lee for her work and
surmised that it was needed, but did not pay well. Ms. Lee
responded that the organization had a very dedicated staff.
She emphasized the importance of the maintenance work.
11:37:32 AM
SUSAN BOMALASKI, CATHOLIC SOCIAL SERVICES, ANCHORAGE (via
teleconference), testified in support of $300,000 for the
Claire House Replacement Project. The facility provided
emergency shelter and transitional housing beds for
homeless women and expectant mothers. The current facility
accommodated 45 individuals. She stated that the current
building was built in 1969 and was located in an industrial
zone. The new facility would be in a safer area and would
allow increased capacity.
Co-Chair Stoltze voiced his support for the project.
Representative Gara added that the Claire House project
would help to relieve overcrowding at the Awake shelter.
11:41:19 AM
LYLE BRAZIER, FARMER, DELTA JUNCTION (via teleconference),
vocalized support for $600,000 to fund potato disease
testing for the potato export project.
Co-Chair Stoltze clarified that the item would be included
in a CS and that it had been in HB 107, but was not in CSSB
46(FIN).
11:42:38 AM
FORMER GOVERNOR BILL SHEFFIELD, PORT OF ANCHORAGE,
ANCHORAGE (via teleconference), testified in support of
funding for the $37.5 million Port of Anchorage expansion.
He explained that the Port of Anchorage project was
currently the largest project in the state, and served 85
percent of the population. He stated that the docks in
Anchorage were very old and the infrastructure should be
replaced.
Co-Chair Stoltze felt that the City of Anchorage would be
paralyzed if there was ever a port shutdown. He stressed
that the project was critical to the state. Governor
Sheffield agreed. He added that there was a ten-day to two-
week supply of food and fuel in the state; therefore,
without the port the state would be in serious trouble.
11:47:10 AM
Representative Gara queried an estimate of the amount
needed to complete the project. Governor Sheffield replied
that the total project would be $1.1 billion. He stated
that the project was currently $800 million short. He
stated that some of the remainder would be paid by federal
funding.
11:50:03 AM
SUSAN GORSKI, EXECUTIVE DIRECTOR, CHUGIAK-EAGLE RIVER
CHAMBER, EAGLE RIVER (via teleconference), spoke in support
of $2.5 million to address transportation safety and
congestion issues. She relayed that the project was the top
priority for the Eagle River community.
11:51:55 AM
STASHA KALUGIN, PRESIDENT, NIKOLAEVSK COMMUNITY COUNCIL,
NIKOLAEVSK (via teleconference), spoke in favor of the
natural gasline.
11:52:45 AM
ANN WILLIAMS, SELF, ANCHORAGE (via teleconference),
requested the addition of the $40 million Tanana River
Bridge project to the budget. She believed the project
would create jobs and expand military operations. She spoke
in favor of adding money for the Alaska Blood Bank and
emphasized its importance.
11:55:15 AM
STEVEN GROHOL, EAGLE RIVER LIONS CLUB, EAGLE RIVER (via
teleconference), voiced support of $102,000 for the Eagle
River Lions Club roof replacement. The building supported a
multitude of community organizations. The roof problems
were beginning to cause deterioration to the building.
Vice-chair Fairclough reiterated the importance of the
facility.
11:57:08 AM
PAUL KENDALL, SELF, ANCHORAGE (via teleconference), spoke
in support of energy development and technology funding. He
expressed concern that there was no foundational data for
oil usage in the metropolitan areas. He was concerned that
Alaska Energy Authority (AEA) could not handle its mission
due to its heavy project. He believed that Alaska had the
ability to lead the world at an accelerated pace.
12:00:56 PM
JERRY MCCUTCHEON, SELF, ANCHORAGE (via teleconference),
spoke in support of the city dock in Anchorage contingent
upon a legislative audit specifically related to seismic
data. He opined that the Susitna dock appropriation should
be reduced to $1 million and provided to the Army Corps of
Engineers to restudy the project finances and receive a
second opinion on the AEA's plan. He had been a proponent
of Susitna for the past ten years, but worried the current
high funding amount was not justified.
12:05:15 PM
RECESSED
1:46:17 PM
RECONVENED
1:47:05 PM
SUZY PEARSON, EXECUTIVE DIRECTOR, AWAKE, ANCHORAGE (via
teleconference), was in support of $230,000 would help
AWAKE replace the emergency generator, address piping and
lighting issues, provide transportation services to victims
and replace mattresses and damaged furniture in the
shelter. She thanked the committee for its commitment to
ending the cycle of violence.
1:48:49 PM
JOHN COOK, DIRECTOR, ALASKA RAILROAD CORPORATION, FAIRBANKS
(via teleconference), testified in support of $44 million
for the northern rail extension. The project price had
escalated in the past year due to the loss of $12.5 million
in federal funding, erosion on the bank of the Tanana
River, an increase in commodity prices, and additional
project scope increases. He explained that the total cost
was $188 million and $44 million was still needed. He
opined that the project was good for economic development,
the military, and other.
1:52:13 PM
BRYAN LINDAMOOD, PROJECT MANAGER FOR THE TANANA ACCESS
PROJECT, ALASKA RAILROAD CORPORATION (via teleconference),
was available for questions.
Representative Wilson asked about the cost of a project
redesign that had been referred to in earlier testimony.
Mr. Lindamood replied that costs had been affected in two
ways: (1) efforts dealing with the multiple agencies had
been significantly more expensive than expected; and (2)
there were design changes on some of the smaller bridges,
which had required larger bridges. The cost was in the
millions of dollars.
Representative Wilson wondered what the corporation could
do to ensure the legislature that it would not have another
funding request related to the project in the future.
Mr. Lindamood replied that the corporation had worked
double check costs related to the project. Third party
costs had been vetted and the corporation was within $1
million to $2 million in its negotiated contract. There was
a contingency that the railroad was holding if needed. The
corporation fully anticipated that any risk was
significantly reduced and were constantly monitoring
projects to reduce risk.
Representative Wilson wondered whether the corporation had
other funding resources. Mr. Lindamood replied that the
corporation did not.
Representative Guttenberg asked about estimates from all
related agencies.
Mr. Lindamood answered that corporation had been working
with the Army Corps of Engineers to get through the permit
process. He believed there would be a favorable decision
from the Corps in the near future. There were two
outstanding permits from the U.S. Coast Guard and the
Department of Fish and Game that the corporation expected
to obtain.
Representative Guttenberg was glad that the Coast Guard was
involved.
Representative Doogan believed that the project was 110
percent higher than the initial cost of the project. He
needed stout evidence that the state should pay the bill
and that there would be no further costs.
1:59:00 PM
JIM JOHANSEN, DEPUTY MAYOR, CITY OF HOUSTON (via
teleconference), testified in favor of $425,000 for a new
City of Houston tanker. The tanker was very important to
the city and the fire department. The city provided the
public service to Houston and surrounding areas.
2:00:50 PM
KENNY RAY, HEAD FOOTBALL COACH, EAGLE RIVER HIGH SCHOOL,
EAGLE RIVER (via teleconference), spoke in favor of
$130,000 for Eagle River High School football stadium
bleachers. The team was not able to play home games at the
school because it was lacking bleachers. The appropriation
would service all of the private and public schools in
Anchorage. He urged the support of the committee.
2:02:57 PM
DICK TRAINI, ANCHORAGE ASSEMBLY, ANCHORAGE (via
teleconference), spoke in favor of $4 million in CSSB
46(FIN) for the Walden Lake purchase. The property would be
turned into a park and currently included six soccer
fields. Anchorage would like to purchase the area to turn
it into a park to avoid a condominium development in the
future.
2:05:31 PM
MICHAEL MELIELO, SELF, EAGLE RIVER (via teleconference),
supported the inclusion of $2.5 million for road safety in
the Eagle River area. He applauded the committee for
including the funding in HB 107.
2:06:28 PM
TOM SMITH, SELF, SKAGWAY (via teleconference), informed the
committee that the community of Skagway would be
contributing $1 million in bond proceeds for a small boat
project, $5 million for the port development project, and
$500,000 for the library matching grant.
MICHAEL HOWARD, FAIRVIEW COMMUNITY COUNCIL, ANCHORAGE (via
teleconference), spoke in favor of $20,000 to implement a
neighborhood revitalization program. There was $20,000 in
HUD funding to support the effort and a local foundation
would provide $25,000. There were some great partnerships
that had developed and the council was very happy with
their success so far.
2:10:59 PM
ROGER C. BURGGRAF, SELF, FAIRBANKS (via teleconference),
spoke in support of HB 107. He had concerns about CSSB
46(FIN) and hoped for a compromise. He emphasized support
for $44 million for the Alaska rail extension and believed
it would support the military. He was also in support of
deferred maintenance funding for the University of Alaska.
He vocalized support for development and jobs in Alaska.
2:13:24 PM
SCOTT C. EICKHOLT, LABORERS LOCAL 942, FAIRBANKS (via
teleconference), expressed support for the northern rail
extension. He believed that the extension would increase
jobs in the area, help with the shipment of goods, and aid
the military.
2:14:27 PM
JIM SAMPSON, SELF, FAIRBANKS (via teleconference), urged
the committee to include $44 million for the railbelt
extension.
2:14:59 PM
LAKE WILLIAMS, PRESIDENT OF FAIRBANKS LABOR COUNCIL,
FAIRBANKS (via teleconference), supported the additional
$44 million Tanana Bridge funding. The project would keep
military bases off of the BRAC list and opened training
ground. He discussed that the project had full community
support and urged the committee to support the
appropriation.
2:16:24 PM
GEOFFREY BACON, SELF, FAIRBANKS (via teleconference),
requested support for the Tanana River rail bridge project.
The project would help to ensure that military training
continued.
2:17:51 PM
KEN REINKE, DIRECTOR, THRESHOLD RECYCLING SERVICES, KODIAK
(via teleconference), urged support of $50,000 in HB 107
for Threshold Recycling Services. The organization provided
jobs and training to individuals with disabilities. The
funding would go towards a recycling facility, which would
allow for more efficient and sustainable recycling. The
Kodiak landfill was expected to be full in 10 years. The
program was modeled after a successful program in the Mat-
Su Valley.
2:19:54 PM
DAVID WEBER, CITY OF KACHEMAK, HOMER (via teleconference),
testified in support of funds for the Homer natural gas
pipeline to provide clean and affordable energy to Kachemak
City and Homer. He relayed that fuel savings should pay
back the project within 10 years. He stressed that
residents needed the savings and that the gasline would
bring economic development to the area.
Representative Wilson asked what the current heating costs
were. Mr. Weber replied that the monthly heating cost was
$120 for natural gas, $399 for fuel, $686 for propane, and
$471 for electricity. He emphasized that the natural
gasline would create a significant fuel savings for the
communities.
2:24:15 PM
STEVE ATWATER, SUPERINTENDENT OF THE KENAI PENINSULA SCHOOL
DISTRICT, KENAI (via teleconference), was in support of the
Homer gasline and the Nikolaevsk gasline in the amount of
$197,000. He encouraged the committee to maintain the items
on the Department of Education and Early Development major
maintenance list.
2:25:51 PM
JIM ARNESAN, SELF, EAGLE RIVER (via teleconference), urged
support of HB 107 funding for an Alaska Police Department
training facility.
2:26:44 PM
CLINTON WHITE, STG INCORPORATED, ANCHORAGE (via
teleconference), voiced support for CSSB 46(FIN) with minor
modifications. He encouraged support for the energy
projects and the weatherization and energy rebate program.
2:28:04 PM
ROY AGLOINGA, NORTON SOUND HEALTH CORPORATION, NOME (via
teleconference), urged support for tribal nursing home
funding in HB 107. The new site was ready for development
and the corporation was excited to move into a more
functional facility.
2:29:24 PM
DUANE HEYMAN, INSTITUTE OF THE NORTH, ANCHORAGE (via
teleconference), requested the inclusion of $315,000 for an
Arctic, Maritime, and Aviation Transportation
Infrastructure Initiative and Arctic Energy Network, Energy
Summit, a conference of young Alaskans, and a primer on
oceans and coastal governance.
2:31:51 PM
VIRGI THOMPSON, MAYOR, HOUSTON (via teleconference),
supported funding for a fire department tanker in order to
decrease the community's ISO rating. She requested support
for the $425,000 appropriation.
2:33:33 PM
JULIANNE MCGUINESS, EXECUTIVE DIRECTOR, ALASKA BOTANICAL
GARDEN (via teleconference), was in support of the $725,000
for an Alaska Botanical Garden facility. There was a
growing tourism and educational demand for the garden
services related to horticultural research and training.
2:35:34 PM
KEVIN SHUMWAY, SELF, HOUSTON (via teleconference),
supported tanker funding for the City of Houston.
2:36:37 PM
LEE HIMES, SELF, HOUSTON (via teleconference), strongly
supported the $425,000 tanker appropriation for the City of
Houston. He believed that the city would benefit greatly
from the tanker.
2:38:08 PM
SANDY TRAINI, SELF, ANCHORAGE (via teleconference), urged
support for funding the purchase of the Waldron Lake
property to use as a park and recreational area.
2:39:34 PM
TOBY SULLIVAN, DIRECTOR, KODIAK MARITIME MUSEUM, KODIAK
(via teleconference), requested support for the Kodiak
Harbor Gateway project. The project included work and
repair to a vessel, site preparation, protective roofing,
etc. He detailed the history and economic and social
benefits of the museum.
2:41:50 PM
DOREEN TERPAK, HOMEOWNER (via teleconference), expressed
concern about the sale of the Waldron Lake property. She
worried that development of the area would negatively
impact the neighborhood. She supported the park
designation.
Vice-chair Fairclough asked about the cost of the sale. Ms.
Terpak did not know. She offered a multitude of different
ways that the community utilized the park.
2:45:37 PM
AT EASE
3:03:01 PM
RECONVENED
3:03:11 PM
OSCAR HALL, PRESIDENT, EAGLE RIVER BOOSTER CLUB, EAGLE
RIVER (via teleconference), expressed appreciation for the
$130,000 included in the budget for Eagle River Stadium. He
discussed the city's inability to host large stadium events
and believed would solve the problem. He urged the
committee's support for the appropriation.
3:06:09 PM
GEORGE PIERCE, SELF, KASILOF, supported $150,000 for
sanitation problems at the mouth of the Kasilof river. He
urged the removal of $2 million for a boat launch on the
Kasilof River. He explained that there were currently two
private boat launches on the river.
3:08:21 PM
JOHN MACKINNION, EXECUTIVE DIRECTOR, ASSOCIATED GENERAL
CONTRACTORS OF ALASKA (via teleconference), testified in
support of $44 million for the rail extension. He did not
want to lose federal matching funds. He believed that the
residential and weatherization programs were very
successful. He urged the removal of the contingency
language in SB 46.
TOM BRICE, AK DISTRICT COUNCIL OF LABORERS, JUNEAU, urged
support for the Tanana River Bridge project. He opined the
project would help to anchor the military to Alaska and
that the railroad should continue to move south.
3:13:15 PM
ELVI GRAY JACKSON, ASSEMBLY MEMBER, ANCHORAGE (via
teleconference), urged support for the Waldron Lake
property purchase. She believed the park was a needed and
vital part of the community.
3:14:07 PM
PAT MAHONEY, EAGLE RIVER LIONS CLUB, EAGLE RIVER (via
teleconference), requested support for maintenance funding
for the roof repairs on the Eagle River Lions Club
facility.
Co-Chair Stoltze recognized Mr. Mahoney's hard work.
3:15:55 PM
JAKE QUAKENBUSH, ASSISTANT MANAGER, IBEW LOCAL 1547,
FAIRBANKS and PRESIDENT, FAIRBANKS BUILDING and
CONSTRUCTION TRADES COUNCIL (via teleconference), voiced
support for the $44 million Tanana River Bridge funding. He
cited the military as a large part of the area's economy
and believed the bridge would help with training efforts.
He thought that the project could open up private ventures
as well. He addressed the availability of federal matching
funds in the amount of $100 million. He shared a personal
story related to the fragile economy in Fairbanks.
Co-Chair Stoltze echoed the concern about the Alaskan
economy.
3:19:58 PM
BETH NORDLUND, EXECUTIVE DIRECTOR, ANCHORAGE PARK
FOUNDATION (via teleconference), expressed gratitude for
funding in the capital budget for park projects. She added
that the projects would be reinforced with private funding
and local volunteers. She asked for support of the
construction of two ice rinks scheduled to happen during
the upcoming summer through work with the Gomez Foundation.
She supported funding for the Kincaid Park trail project
that would put teenagers to work.
3:22:27 PM
CHRISTIAN HARTLEY, FIRE OFFICER, HOUSTON FIRE DEPARTMENT,
HOUSTON (via teleconference), encouraged the committee to
support fire tanker funding for the Houston Fire
Department. He stated that there was a significant need for
the tanker and that surrounding communities would benefit
as well. He stressed that a new tanker would allow the
department to provide the best service to district 15.
3:25:48 PM
VALERIE HALL, SELF, EAGLE RIVER (via teleconference),
requested support for the $130,000 Eagle River High School
Stadium project. The team could not currently play on its
own field and had to play at the Alaska Football Stadium,
which was a condemned site. She emphasized that the project
would boost morale for students and supporters. She
stressed that the stadium would help the school to raise
funds to alleviate costs to families and for the school.
She added that the community was working to raise matching
funds.
3:28:15 PM
NICOLE SCHWAN, MANAGER, KODIAK ANIMAL SHELTER, KODIAK (via
teleconference), requested support for the $12,000
appropriation to the Humane Society of Kodiak, which would
help pave the dog-run surrounding the facility. The current
dog-runs were gravel, which made sanitation difficult.
3:30:28 PM
BRENT JOHNSON, KENAI ASSEMBLY and PRESIDENT, COOK INLET
AQUACULTURE ASSOCIATION, KASILOF (via teleconference),
supported the $9 million for the Homer solid waste transfer
and $10 million for the Homer natural gasline project. He
supported $197,000 to fund the gasline to the community of
Nikolaevsk. He spoke in favor of the $865,000 for Trail
Lake hatchery maintenance funding, $591,000 for Tutka Bay
hatchery maintenance. He testified in support of $45,000 in
HB 107 for Tustumena Lake smolt outmigration monitoring. He
spoke in favor of $328,000 for Ninilchik fairground
improvements, $4.5 million for Kenai road projects, $50,000
for Kasilof River dune fencing, and $151,000 for Kasilof
River habitat protection.
3:34:46 PM
RECESSED
3:46:43 PM
RECONVENED
3:47:15 PM
STEVE PATIN, SELF, ANCHORAGE (via teleconference),
testified in support of the Eagle River High School Stadium
project. He stressed the economic vibrancy of the project
and noted there were only three venues that could hold
football games. The turf would help all of schools in the
Anchorage and Mat-Su areas. He explained that the project
would benefit Eagle River and young people.
Vice-chair Fairclough asked what the original request had
been for the bleacher project. Mr. Patin replied that the
original request had been for $750,000. He explained that
the construction company had originally projected the costs
at several times the current $130,000 request.
3:52:05 PM
JEFF WELTZIN, GRANTS WRITER, TANANA CHIEFS CONFERENCE,
testified in support of community facility needs. He spoke
in favor $500,000 in improvements to the Tanacross
community health center project. He voiced support for
$180,000 for the Stevens Village road landfill project. He
supported $255,000 for the Tanana community to help
alleviate dust and drainage issue. He requested $150,000 in
funding for a Koyukuk health clinic and a Galena assisted
living facility. He asked for support of $300,000 for Fort
Yukon and $300,000 for Minto elder housing facilities. He
spoke in favor of $150,000 in funding for the Allakaket
clinic, $200,000 for family apartments in Grayling,
$250,000 for a clinic in Ruby, $100,000 for retrofits at
the Beaver community building, and $150,000 for a new
clinic in Arctic Village.
3:57:46 PM
Representative Costello asked about the priority of each of
the projects. Mr. Weltzin responded that the projects had
been prioritized by the E-Board of the Tanana Chiefs
Conference.
Vice-chair Fairclough asked whether the top priority was
$200,000 for Tetlin. Mr. Weltzin responded that the
projects were currently in HB 107 and CSSB 46(FIN). He
pointed to projects under "Other Priority TCC IPs," and
explained that they were prioritized.
Representative Costello asked whether the multipurpose
building and landfill equipment were higher priorities than
the health concerns related to dust control and drainage
issues. Mr. Weltzin replied that all of the projects were
health safety issues.
3:59:29 PM
JOHN HOZEY, CITY MANAGER, VALDEZ (via teleconference),
testified in favor of the $2.5 million request to expand
the harbor in the City of Valdez. He explained that there
was city and municipal money leveraged in the project. He
stressed that the harbor was utilized by the entire
Interior.
Vice-chair Fairclough wondered whether the request was in
CAPSIS and queried the amount. Mr. Hozey replied that the
$2.5 million request was in CAPSIS.
JOAN MCBEEN, CITY COUNCIL MEMBER, TENAKEE SPRINGS (via
teleconference), spoke against the Pegmatite Mountain
geothermal project in the budget's energy package. She
stressed that Tenakee was concerned about the development
of the area through a Sealaska grant. She explained that
there were no letters of support from Tenakee, Hoonah, or
Pelican. The city was currently studying hydropower at
Indian River. The community believed the Pegmatite Mountain
area should stay in the public domain and objected to
development by a private corporation.
4:06:20 PM
Vice-chair Fairclough thanked the committee and staff.
4:10:00 PM
ADJOURNMENT
The meeting was adjourned at 4:10 PM.
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