Legislature(2001 - 2002)
03/22/2001 01:41 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
March 22, 2001
1:41 PM
TAPE HFC 01 - 58, Side A
TAPE HFC 01 - 58, Side B
TAPE HFC 01 - 59, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:41 PM.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
MEMBERS ABSENT
Representative Jim Whitaker
ALSO PRESENT
Jeff Bush, Deputy Commissioner, Department of Community and
Economic Development; Tom Lawson, Director, Administrative
Services, Department of Community and Economic Development;
Greg Wolf, Director, International Trade and Market
Development; Kevin Brooks, Director, Division of
Administrative Services, Department of Fish and Game; Bob
Poe, Alaska Industrial Development and Export Authority
(AIDEA); Mike Nizich, Administrative Director, Office of the
Governor; Karen Rehfeld, Director, Division of Education
Support Services, Department of Education and Early
Development; George Smith, Deputy Director, Libraries,
Archives & Museums, Department of Education & Early
Development
PRESENT VIA TELECONFERENCE
Hal Spackman, Director, Mt. Edgecumbe, Sitka; Fred Esposito,
Director, Alaska Vocational Technical Center, Seward; Yvonne
Chase, Deputy Commissioner, Early Education, Department of
Education and Early Development
GENERAL SUBJECT(S):
HB 47-APPROP: GOVERNOR'S CAPITAL BUDGET
Community and Economic Development
Fish and Game
Governor
Education and Early Development
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 22nd Legislative Session, contact 465-
2156. After the 22nd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 00 - 58
SIDE A
000 DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT
124 BOB POE, ALASKA Noted that the department has reduced its
INDUSTRIAL first request for $7.8 million dollars
DEVELOPMENT AND for Power Cost Equalization. He observed
EXPORT AUTHORITY that the amendment request is for $6,854
(AIDEA) million dollars.
221 Mr. Poe He noted that higher fuel costs resulted
in a supplemental request in FY01 of $1.5
million dollars. The FY02 request is
reduced by $1 million dollars.
351 CO-CHAIR MULDER Questioned if the statutory PCE formula
spoke to fuel costs and questioned how a
supplemental on fuel cost was calculated.
402 Mr. Poe He acknowledged that the Regulatory
Commission of Alaska sets the rate for
PCE. Reviewed the fuel cost calculations.
He explained that the formula anticipates
a total cost of $15.7 million dollars
each year. The cost was higher than $15.7
million dollars this year. There is a
variance on the real cost.
456 Co-Chair Mulder Questioned the need for a supplemental
and pointed out that other areas of the
state also experienced rising fuel costs.
535 Mr. Poe Noted that other areas of the state are
able to adjust their rates and pass the
cost on to the consumer.
573 Co-Chair Mulder Questioned the difference between AIDEA
receipts and dividends.
628 Mr. Poe Explained that $620 thousand dollars
would be used to purchase Rural
Development Initiative Fund loans that
would be added to the portfolio. It is an
exchange of liquid assets for long-term
assets.
660 Representative Asked for more information.
Hudson
761 Mr. Poe Observed that the stock market decline
has affected the endowment. He noted that
AIDEA has been working hard on the sale
of the Four Dam Pool.
827 Representative John Pointed out that the Legislature
Davies understood that PCE was not fully
endowed.
878 JEFF BUSH, DEPUTY Reviewed the request for Operation Renew
COMMISSIONER, Hope. The state is pursuing federal
DEPARTMENT OF funding.
COMMUNITY AND
ECONOMIC DEVELOPMENT
921 Mr. Bush Reviewed the Community Block Grants
request. He pointed out that the request
is federal pass through funding.
976 Mr. Bush Discussed the Federal Community
Development Grants component. The
original request was for a $150 million
dollar state match. Additional receipts
from the Denali Commission are expected.
Therefore the request has increased to
$300 thousand dollars in state match and
$6.35 million in federal funds.
1098 Mr. Bush Discussed the USDA mini grant program.
1124 Mr. Bush Noted that the Denali Commission has
approved $4.5 million dollars and the
state expects an additional $500 thousand
dollars this year. A small state match is
included.
1171 Mr. Bush Reviewed the Trans-Alaska Pipeline
Liability (TAPL) Fund request.
1243 Mr. Poe Noted that the state is asking for an
additional $3.5 million in federal
receipts and $1.6 in Oil and Hazardous
Substance Prevention and Release Fund.
The state is arguing that the TAPL
represent part of the state's match.
1445 Mr. Poe Discussed Rural Systems Upgrades. The
department is asking for a $500 thousand
dollar general fund match to match a $10
million federal dollar rural power system
upgrade. He stressed that the cost of
generation can make a great impact.
1536 Mr. Poe Reviewed the Alternative Energy Program.
He noted that the request would look at
ways of producing ethanol. He discussed
page 31 of the department's request (see
capital amendment backup). He pointed out
that the bulk of the funding is federal.
1623 Mr. Poe Discussed the Electrical Emergencies
request. He stressed that the request
assists the Alaska Energy Authority with
emergency repairs.
1674 Representative Emphasized the need for a statewide
Hudson alternative energy plan. He pointed out
that it has been a long time since the
470 Funds were reviewed. He questioned if
5 cents a barrel is still being
collected.
1768 Mr. Poe AIDEA produced an alternative energy plan
last year. The Railbelt indicated that
rural energy should be the focus. AIDEA
found that some ideas make sense if well
targeted, but most do not make economic
sense due to the economics of size. The
best place to reduce costs is in fuel and
waste heat efficiencies and
weatherization. Small hydro projects can
be utilized.
1895 Representative Referred to the wood fire boilers in
Foster rural areas.
1929 Mr. Poe Noted that the wood fire boiler must be
efficient to cut down on the costs. They
only work in very targeted areas.
1968 Representative John Noted that an Energy Task Force has been
Davies proposed and spoke in favor of interim
work.
1987 Mr. Bush Discussed the Alaska Russian Far East
Projects Phase 2. He noted that Sakhalin
Development Agency would be implemented
with an AIDEA model. The Legislative
Budget and Audit Committee previously
approved funding. This would be the last
phase.
2076 Representative Stressed that Alaskan areas have needs.
Foster
2093 Mr. Bush Emphasized that the projects are
federally funded and that Alaskan
businesses can benefit from development.
2123 Representative Croft Pointed out that the funding would help
develop oil and gas in the Arctic that
would compete with Alaska.
2161 Mr. Bush Responded that the development would take
place without Alaskan participation. He
emphasized that the question is whether
or not Alaska can capitalize on the
benefits of the development.
2202 Representative Questioned if state employees would go to
Hudson Sakhalin to assist development.
2228 GREG WOLF, DIRECTOR, Testified via teleconference that the
INTERNATIONAL TRADE funding is a pass through that to private
AND MARKET development.
DEVELOPMENT
2285 Mr. Bush There would be some involvement of state
employees.
2325 Mr. Bush Reviewed the Kodiak Launch Complex
Facilities request.
2350 Mr. Bush Discussed the Arctic Winter Games Team
Alaska. The games would be held in
Greenland. The funding would help with
operation costs and travel.
TAPE HFC 01 - 58,
Side B
DEPARTMENT OF FISH AND GAME
37 KEVIN BROOKS, He noted that the department's request
DIRECTOR, DIVISION contains $13.2 million dollars in federal
OF ADMINISTRATIVE funds.
SERVICES, DEPARTMENT
OF FISH AND GAME
142 Mr. Brooks Discussed the statewide Facilities
Repair, Maintenance, and Replacement
request.
215 Mr. Brooks Reviewed the Vessel and Aircraft Repair,
Maintenance and Replacement request. He
pointed out that the request deals with
health and safety issues. The R/V
Sundance failed to meet accepted safety
standards and needs to be replaced. The
department estimates $250 to $300
thousand dollars for its sale. The vessel
is located in Southeast Alaska.
431 Vice-Chair Bunde Clarified that aircrafts would be
repaired not replaced.
487 Mr. Brooks The state spends $2.5 million dollars in
charter flights.
504 Mr. Brooks Discussed the Dock Repairs, Maintenance
and Replacement Phase 2 request. The
request would help finish the King Salmon
facility and begin work in Cordova. The
King Salmon facility is state-owned and
used by the state.
607 Mr. Brooks Reviewed the Black River Sonar - Chignik
area, Upper Aleutian Peninsula request.
The focus is on a sonar system.
661 Mr. Brooks Discussed the Sport Fishing and
Recreational Boating Public Access and
Facility Development. He noted that the
Federal Aid to Sport Fish Restoration Act
requires that 15 percent of federal funds
be available for public access. Federal
funds are matched 25% state and 75
percent federal funds.
733 Mr. Brooks Discussed the Norton Sound Salmon
Research Initiative. He noted that it is
a 5-year program to spend $1 million
dollars a year to determine issues around
the fisheries collapse.
864 Mr. Brooks Responded to questions by Vice-Chair
Bunde regarding fair access.
882 Mr. Brooks Noted that Norton Sound projects would
occur in fresh water.
918 Co-Chair Williams Suggested that the department expand to
ocean survival.
943 Mr. Brooks Agreed that ocean survival is a data gap.
977 Mr. Brooks Reviewed the Near Shore Fisheries
Research and Assessment request for
federal authorization. He observed that
the state receives $1.798 million in
federal dollars to help develop new
fisheries.
1030 Mr. Brooks Discussed the Snow Crab Fishery Disaster
Research request. There have been steep
declines in the Crab fisheries. The
request would bring $1 million dollars in
federal funds.
1103 Mr. Brooks Discussed the Log Transfer Facility
Research and Remediation request.
1146 Mr. Brooks In response to a question by
Representative Lancaster, he noted that
the work would be done through
contractors.
1262 Co-Chair Williams Asked about the log transfer facility
permits.
1278 Mr. Brooks Replied that would be the Department of
Fish and Game.
1302 Representative Croft Emphasized the need to study ways to
minimize the effect on the fisheries. He
recommended what the best way would be to
fix it.
1339 Mr. Brooks Addressed the wildlife habitat management
in Interior Alaska request in the amount
of $100 thousand dollars.
1372 Mr. Brooks Discussed the equipment replacement for
wildlife conservation programs request in
the amount of $100 thousand dollars.
1401 Representative Asked the typical life of one of the
Foster machines.
1412 Mr. Brooks Replied that they would have a life
expectancy of the other State equipment
fleet. He added that they are used much
longer than their life expectancy.
1487 Representative John Asked if it had been prior authorized.
Davies
1515 Mr. Brooks Replied that the indication shows that
the request had come up before. The one
in 1998 has been used and now needs to be
upgraded.
1570 Mr. Brooks Noted that this was a new appropriation.
1582 Vice-Chair Bunde Requested more information on the
statewide waterfall near Petersburg.
1600 Mr. Brooks Discussed the Kachemak Bay reserve
facilities design and construction
request in the amount of $3.5 million
federal fund dollars.
1641 Representative Asked the number of aircraft currently
Foster available.
1652 Mr. Brooks Replied there were 10-12 aircraft in the
Department for running surveys and
enforcement.
1675 Mr. Brooks Mentioned another project in cooperation
with the Governor's Office.
1734 Mr. Brooks Spoke to the Pacific Salmon Treaty in
cooperation with the Governor's Office.
The request is in the amount of $18
million federal receipt dollars. The
federal fiscal year FY00 appropriations
legislation established a Pacific Coastal
Salmon Recovery Fund and appropriated a
total of $58 million dollars for the
states of Alaska, Washington, Oregon, and
California as well as the treaty fishing
tribes in the Pacific Northwest.
Coordination of the fund is through the
respective Governor's Offices. The
Alaska portion of the federal
appropriation was $14 million dollars and
is expected to be $18 million in federal
FY01.
1868 Representative Asked if the treaty required research.
Lancaster
1881 Mr. Brooks Stated that it would as it requires great
sustainability.
1893 Representative Referenced the bunkhouses and asked why
Foster that was the State's obligation.
1919 Mr. Brooks Replied that there is employee housing
for the seasonal workforce.
1933 Vice-Chair Bunde Asked the ratio of salmon.
1966 Mr. Brooks Replied that it would be an incremental
benefit.
2009 Representative John Referenced the fast track supplemental
Davies and the fishery need.
2023 Mr. Brooks Replied that he would provide that
information to the Committee.
OFFICE OF THE GOVERNOR
TAPE HFC 01 - 59,
Side A
000 MIKE NIZICH, Discussed the expansion of the AccuVote
ADMINISTRATIVE elections system.
DIRECTOR, OFFICE OF
THE GOVERNOR
091 Mr. Nizich Spoke to American with Disabilities Act
compliance projects in the amount of $500
thousand general fund dollars.
155 Representative John Asked if there was a total amount.
Davies
180 Mr. Nitich Stated that there was not.
208 Representative John Pointed out that there was a total listed
Davies on Page 12.
DEPARTMENT OF EDUCATION & EARLY
DEVELOPMENT
256 KAREN REHFELD, Discussed the Mt. Edgecumbe High School
DIRECTOR, DIVISION classroom and field house repair and
OF EDUCATION SUPPORT renovation in the amount of $150 thousand
SERVICES, DEPARTMENT general fund dollars.
OF EDUCATION AND
EARLY DEVELOPMENT
340 Ms. Rehfeld Reviewed the request for the Mt.
Edgecumbe High School Roof Repair &
Replacement
382 GEORGE SMITH, DEPUTY Discussed the Museum facility upgrade
DIRECTOR, LIBRARIES, request in the amount of $550 thousand
ARCHIVES & MUSEUMS, dollars. The request would upgrade to
DEPARTMENT OF fire suppression and dust collection.
EDUCATION & EARLY
DEVELOPMENT
513 Ms. Rehfeld Discussed the Head Start Health & Safety
repairs request in the amount of $500
thousand dollars.
559 Ms. Rehfeld Understood that these were private
facilities.
575 Ms. Rehfeld Reviewed the AVTEC roof repair and
replacement request in the amount of $650
thousand dollars.
626 Mr. Smith Spoke to the design for museum and
archives building expansion request in
the amount of $500 thousand dollars. He
addressed the need for additional space
for the Alaska State Museum collection,
which has grown from 5,600 objects in
1967 to over 25,000 objects currently.
It is critical to preserving Alaska's
history and culture.
725 Representative Asked to have a tour of the storage area.
Foster
762 Representative Asked the number of students at Mt.
Foster Edgecumbe
780 Ms. Rehfeld Replied there are about 313 students.
833 Co-Chair Williams ADJOURNMENT
The meeting was adjourned at 3:25 p.m.
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