Legislature(1993 - 1994)
04/02/1993 02:10 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 2, 1993
2:10 P.M.
TAPE HFC 93 - 90, Side 1, #000 - end.
TAPE HFC 93 - 90, Side 2, #000 - #084.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 2:10 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Bill Williams; Mike Greany, Director,
Legislative Finance Division; Jim Ayers, System Director,
Alaska Marine Highway System, Department of Transportation
and Public Facilities; Remond Henderson, Director, Division
of Administrative Service, Department of Community and
Regional Affairs.
SUMMARY INFORMATION
HB 55 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
CS HB 55 (FIN) was reported out of Committee with
a "do pass" recommendation.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
indicated that Section #13 is the same as that proposed by
the Governor. The Committee adopted Section #13.
Mr. Greany referenced Section #20 which had previously been
held open. He noted the language addressing the surcharge
had been incorporated. The Committee adopted Section #20.
Mr. Greany noted Section #21 resulted from a discussion
between the 470 funds and their relation to the Mitigation
Account.
1
Section (a) indicates money from the Mitigation Account
appropriated to the 470 fund.
Section (b) justifies the amount from that account made
to the Storage Tank Assistance Fund.
Section (c) appropriates $100 thousand dollars for oil
spill evaluation in the Yukon-Koyukuk school district.
Representative Therriault asked why the ferry expenditure
was not included in Section #21. Mr. Greany replied,
Section #22 (b) indicates the $7.5 million dollars to the
Vessel Replacement Fund for the oil ferry originating from
the 470 fund. Representative Hanley understood that all
appropriations originated from the Mitigation Account.
Representative Hanley recommended adding a new Section (d).
Mr. Greany clarified that Section #22 (b) was moved into
Section #21 and that the funding source for the oil ferry
would be the Mitigation Account.
Representative Martin MOVED to change the language in
Section #22 (b), Page 5, Line 10, by deleting "the
refurbishment or" and also to delete the "s" on the word
"vessels".
JIM AYERS, SYSTEMS DIRECTOR, ALASKA MARINE HIGHWAY SYSTEM,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated
AMHS would not object to the recommendation.
Representative Brown MOVED to make the verbiage match the
language in the sentence, Page 5, Line 10, deleting "have"
and inserting "has". There being NO OBJECTION, it was
amended. There being NO OBJECTION to the amendment, it was
adopted.
Co-Chair MacLean asked for further clarification of the
amount requested for total ferry system funding. Mr. Ayers
stated that the total cost of the vessel would be $85
million dollars. Mr. Ayers understood the State's portion
of funding would be $15 million dollars. He presented a
chart indicating the distribution:
.5 FY 92 (direct)
7.5 FY 93 VRF
7.0 FY 94 VRF
15.0 Total "470" Funds
Co-Chair MacLean MOVED to amend Page 5, Line 8 to insert
2
"$7,000,000" million dollars and delete "$7,500,00".
Mr. Ayers reiterated that the total estimated cost of the
vessel would be $85 million dollars, a combination of
federal and state funds.
$60 Federal FY 94
$ 5 Match
$15 470 Fund
$ 5 other fund
$85 million dollars total funding strategy
There being NO OBJECTION to the motion, it was so ordered.
Representative Brown MOVED to delete on Page 4, Line 29, the
language "the following projects" and insert "contaminated
site assessment"; Page 4, Line 31 delete "oil spill
evaluation for"; Page 5, LIne 2 delete "contaminated site
assessment". There being NO OBJECTION, it was incorporated.
Representative Brown pointed out that Section 23 is not
reflected in the new Section 35. Co-Chair MacLean stated
the amount was not changed.
________________________________
Co-Chair Larson referenced Attachment #1, the Formula Funded
Programs, Senior Citizens Tax Relief.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
explained that if a zero appropriation was funded for the FY
94 budget, it would affect the municipalities. In the past,
the municipalities have been funded at a twenty percent
level. FY 94 budget would fund them at a zero percent level
leaving the municipalities responsible for the program's
full coverage. The municipalities would be left with the
$2.8 million dollars fee.
He added, the amount funded in FY 93 was $2.8 million
dollars. The Renters Rebate amounted to $820 thousand
dollars. Co-Chair Larson MOVED to add $2 million dollars to
the Senior Citizens Tax Relief Fund. Representative Brown
MOVED to amend that amount to $3 million dollars.
Representative Parnell OBJECTED.
A roll call was taken on the MOTION to amend.
3
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
The MOTION FAILED, (4-7).
A roll call was taken on the MOTION to add $2 million
dollars. Representative Parnell OBJECTED.
IN FAVOR: Martin, Navarre, Brown, Foster,
Grussendorf, Hanley, Hoffman, MacLean,
Larson.
OPPOSED: Parnell, Therriault.
The MOTION PASSED, (9-2).
Co-Chair MacLean MOVED to report CS HB 55 (FIN) out of
Committee with individual recommendations. Representative
Hoffman noted that the title would need to be changed to
include the formula funded programs. Mr. Greany replied,
the language as drafted would include loan expansion and
capitalization of funds. Representative Navarre OBJECTED to
moving the bill from Committee.
(Tape Change, HFC 93-90, Side 2).
Representative Navarre noted his disappointment with the
lack of cooperation between the majority and minority
members in the House Finance Committee during the budget
discussion. He recommended laying ground rules on policy
and budget caps and asked to be included as part of the
process.
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Foster, Hanley,
Martin, Larson, MacLean.
OPPOSED: Navarre, Brown, Grussendorf, Hoffman.
The MOTION PASSED, (7-4).
ADJOURNMENT
The meeting adjourned at 3:30 P.M.
HOUSE FINANCE COMMITTEE
APRIL 2, 1993
2:10 P.M.
4
TAPE HFC 93 - 90, Side 1, #000 - end.
TAPE HFC 93 - 90, Side 2, #000 - #084.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 2:10 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Bill Williams; Mike Greany, Director,
Legislative Finance Division; Jim Ayers, System Director,
Alaska Marine Highway System, Department of Transportation
and Public Facilities; Remond Henderson, Director, Division
of Administrative Service, Department of Community and
Regional Affairs.
SUMMARY INFORMATION
HB 55 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
CS HB 55 (FIN) was reported out of Committee with
a "do pass" recommendation.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
indicated that Section #13 is the same as that proposed by
the Governor. The Committee adopted Section #13.
Mr. Greany referenced Section #20 which had previously been
held open. He noted the language addressing the surcharge
had been incorporated. The Committee adopted Section #20.
Mr. Greany noted Section #21 resulted from a discussion
between the 470 funds and their relation to the Mitigation
Account.
Section (a) indicates money from the Mitigation Account
appropriated to the 470 fund.
5
Section (b) justifies the amount from that account made
to the Storage Tank Assistance Fund.
Section (c) appropriates $100 thousand dollars for oil
spill evaluation in the Yukon-Koyukuk school district.
Representative Therriault asked why the ferry expenditure
was not included in Section #21. Mr. Greany replied,
Section #22 (b) indicates the $7.5 million dollars to the
Vessel Replacement Fund for the oil ferry originating from
the 470 fund. Representative Hanley understood that all
appropriations originated from the Mitigation Account.
Representative Hanley recommended adding a new Section (d).
Mr. Greany clarified that Section #22 (b) was moved into
Section #21 and that the funding source for the oil ferry
would be the Mitigation Account.
Representative Martin MOVED to change the language in
Section #22 (b), Page 5, Line 10, by deleting "the
refurbishment or" and also to delete the "s" on the word
"vessels".
JIM AYERS, SYSTEMS DIRECTOR, ALASKA MARINE HIGHWAY SYSTEM,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated
AMHS would not object to the recommendation.
Representative Brown MOVED to make the verbiage match the
language in the sentence, Page 5, Line 10, deleting "have"
and inserting "has". There being NO OBJECTION, it was
amended. There being NO OBJECTION to the amendment, it was
adopted.
Co-Chair MacLean asked for further clarification of the
amount requested for total ferry system funding. Mr. Ayers
stated that the total cost of the vessel would be $85
million dollars. Mr. Ayers understood the State's portion
of funding would be $15 million dollars. He presented a
chart indicating the distribution:
.5 FY 92 (direct)
7.5 FY 93 VRF
7.0 FY 94 VRF
15.0 Total "470" Funds
Co-Chair MacLean MOVED to amend Page 5, Line 8 to insert
"$7,000,000" million dollars and delete "$7,500,00".
Mr. Ayers reiterated that the total estimated cost of the
vessel would be $85 million dollars, a combination of
6
federal and state funds.
$60 Federal FY 94
$ 5 Match
$15 470 Fund
$ 5 other fund
$85 million dollars total funding strategy
There being NO OBJECTION to the motion, it was so ordered.
Representative Brown MOVED to delete on Page 4, Line 29, the
language "the following projects" and insert "contaminated
site assessment"; Page 4, Line 31 delete "oil spill
evaluation for"; Page 5, LIne 2 delete "contaminated site
assessment". There being NO OBJECTION, it was incorporated.
Representative Brown pointed out that Section 23 is not
reflected in the new Section 35. Co-Chair MacLean stated
the amount was not changed.
________________________________
Co-Chair Larson referenced Attachment #1, the Formula Funded
Programs, Senior Citizens Tax Relief.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
explained that if a zero appropriation was funded for the FY
94 budget, it would affect the municipalities. In the past,
the municipalities have been funded at a twenty percent
level. FY 94 budget would fund them at a zero percent level
leaving the municipalities responsible for the program's
full coverage. The municipalities would be left with the
$2.8 million dollars fee.
He added, the amount funded in FY 93 was $2.8 million
dollars. The Renters Rebate amounted to $820 thousand
dollars. Co-Chair Larson MOVED to add $2 million dollars to
the Senior Citizens Tax Relief Fund. Representative Brown
MOVED to amend that amount to $3 million dollars.
Representative Parnell OBJECTED.
A roll call was taken on the MOTION to amend.
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson, MacLean.
7
The MOTION FAILED, (4-7).
A roll call was taken on the MOTION to add $2 million
dollars. Representative Parnell OBJECTED.
IN FAVOR: Martin, Navarre, Brown, Foster,
Grussendorf, Hanley, Hoffman, MacLean,
Larson.
OPPOSED: Parnell, Therriault.
The MOTION PASSED, (9-2).
Co-Chair MacLean MOVED to report CS HB 55 (FIN) out of
Committee with individual recommendations. Representative
Hoffman noted that the title would need to be changed to
include the formula funded programs. Mr. Greany replied,
the language as drafted would include loan expansion and
capitalization of funds. Representative Navarre OBJECTED to
moving the bill from Committee.
(Tape Change, HFC 93-90, Side 2).
Representative Navarre noted his disappointment with the
lack of cooperation between the majority and minority
members in the House Finance Committee during the budget
discussion. He recommended laying ground rules on policy
and budget caps and asked to be included as part of the
process.
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Foster, Hanley,
Martin, Larson, MacLean.
OPPOSED: Navarre, Brown, Grussendorf, Hoffman.
The MOTION PASSED, (7-4).
ADJOURNMENT
The meeting adjourned at 3:30 P.M.
8
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