Legislature(2001 - 2002)
05/02/2002 04:21 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
May 02, 2002
4:21 PM
TAPE HFC 02 - 102, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 4:21 PM.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Con Bunde, Vice-Chair
Representative John Davies
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Carl Moses
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Denny Dewitt, Staff, Representative Eldon Mulder; Wendy
Redman, Vice President, Statewide Programs, University of
Alaska.
PRESENT VIA TELECONFERENCE
There were no teleconference testifiers.
SUMMARY
HB 175 "An Act making an appropriation to the Alaska
Industrial Development and Export Authority for
power projects; and providing for an effective
date."
CSHB 175 (FIN) was REPORTED out of Committee with
a "do pass" recommendation.
HB 524 "An Act relating to the issuance of general
obligation bonds for the purpose of paying the
cost of design, construction, and maintenance of
schools and state facilities; and providing for an
effective date."
CSHB 524 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a fiscal
impact note by the Department of Revenue.
HB 525 "An Act relating to the issuance of general
obligation bonds for the purpose of paying the
cost of deferred maintenance of public facilities;
and providing for an effective date."
CSHB 525 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a fiscal
impact note by the Department of Revenue.
HB 528 "An Act relating to programs of state
reimbursement for debt payments for certain
capital projects; and providing for an effective
date."
CSHB 528 (FIN) was REPORTED out of Committee with
a "do pass" recommendation.
CSSB 299(FIN)
"An Act relating to the establishment of an
additional south-central panel to the Alaska
Workers' Compensation Board and to appointments to
that panel; and providing for an effective date."
CSSB 299(FIN) was postponed 5/06/02.
SB 345 "An Act relating to medical assistance for
rehabilitative services for certain children with
disabilities; relating to agreements to pay
medical assistance for covered services paid for
or furnished to eligible children with
disabilities by a school district; and providing
for an effective date."
SB 345 was postponed to 5/6/02.
HOUSE BILL NO. 175
"An Act making an appropriation to the Alaska
Industrial Development and Export Authority for power
projects; and providing for an effective date."
Co-Chair Mulder noted that Amendment 1, 22-LS0705\X.9 was
adopted on 4/30/02.
Representative Lancaster MOVED to report CSHB 175 (FIN) out
of Committee with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
CSHB 175 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
HOUSE BILL NO. 524
"An Act relating to the issuance of general obligation
bonds for the purpose of paying the cost of design,
construction, and maintenance of schools and state
facilities; and providing for an effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft 22-LS1725\F, dated 5/2/02 (copy on
file).
Co-Chair Williams MOVED to ADOPT work draft 22-LS1725\F,
dated 5/2/02. There being NO OBJECTION, it was so ordered.
Co-Chair Mulder reviewed the committee substitute and noted
that duplicative projects in the Fairbanks School District
were deleted from the deferred maintenance component. A
central kitchen/operations and maintenance facility in
Fairbanks and a nutrition services facility in Mat-Su were
added.
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER explained
that there were two technical changes corrected in the
committee substitute. Bartlett High School was listed in at
$19 million dollars, which was an error and was changed to
$1.9 million dollars. Chugiak High School was corrected to
show the state share of $3,655,728 dollars (the local share
had been listed).
Representative Hudson questioned if overall education GO
bonds were expanded. Representative Mulder explained that
the Fairbanks central kitchen project was a substitution for
another project that was already authorized. The Mat-Su
project would require additional bonding. He anticipated
that the Mat-Su project would have been added in the other
body.
Representative Foster MOVED to report CSHB 525 (FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CSHB 524 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Revenue.
HOUSE BILL NO. 525
"An Act relating to the issuance of general obligation
bonds for the purpose of paying the cost of deferred
maintenance of public facilities; and providing for an
effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft 22-LS1735\F, dated 5/2/02 (copy on
file). He noted that there are many deferred maintenance
needs throughout the state that need to be addressed. The
legislation attempts to address these needs. The total
amount is $199,317,717 dollars. There is: $113 million
dollars for schools, $5.56 million dollars for the
university, $31,887,500 for docks and harbors, and $48.5
million dollars for state facilities. He observed that
duplicative funds, which will receive federal funding, were
removed. This made room for deferred maintenance projects
for schools in Yukon-Koyukuk, Dillingham City, and Hoonah
City.
Co-Chair Williams MOVED to ADOPT work draft 22-LS1735\F,
dated 5/2/02. There being NO OBJECTION, it was so ordered.
Representative Hudson MOVED to report CSHB 525 (FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CSHB 525 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Revenue.
HOUSE BILL NO. 528
"An Act relating to programs of state reimbursement for
debt payments for certain capital projects; and
providing for an effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft 22-LS1742\P, dated 5/2/02 (copy on
file).
Co-Chair Williams MOVED to ADOPT work draft 22-LS1742\P,
dated 5/2/02. There being NO OBJECTION, it was so ordered.
Co-Chair Mulder explained that funding for the Juneau museum
project was not included because preliminary planning (land
purchase and design) cannot be bonded.
Representative Hudson noted that the Juneau Joint Readiness
Center project had not been included in any legislation to
date. The project would involve the Department of Military
and Veterans Affairs and the University of Alaska,
Southeast. He emphasized the importance of the project and
noted that the Armory needs to be relocated. Some federal
funds have been appropriated, but the project needs $5.4
million dollars. This is the number one long-range
construction priority of the Army National Guard and the
University of Alaska, Southeast. Co-Chair Mulder expressed
sympathy for the project, but emphasized the need to "hold
the lid on the bond package".
Co-Chair Mulder explained that the Metlakatla light and
power project was included in order to protect their
solvency. If the project were to go into receivership they
would not be eligible for other federal assistance. The
appropriation would not cover the full cost of the project,
but it would provide enough assistance to meet their
obligation. The university indicated that the university
center could be done through the reimbursement methodology,
which reduced the need on the capital budget.
Representative Davies noted that the $2 million dollar
project for the Fairbanks campus needs to occur this summer
and asked if it were possible to place the project in the
regular capital budget in order to meet the construction
schedule. Co-Chair Mulder indicated that he would not
object, but emphasized his concern with moving items from
the deferred maintenance bond legislation.
Representative Carl Moses MOVED to ADOPT AMEND: page 4,
line 21: delete "Lake and Peninsula" and insert "Aleutians
East". There being NO OBJECTION, it was so ordered.
Representative Hudson reiterated his desire to see funding
for the Juneau Readiness Center.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA explained that the university's bonding capacity
would be used to secure funding for the Juneau Readiness
Center. The debt service would be paid by the state under
the debt service account. She felt that the project would
fit under the educational requirements for bonding or
borrowing capacity. She expressed some concern that the
University's bonding capacity is limited to projects that do
not exceed a million dollars in debt service. She felt that
an adjustment would needed in statutory language to adjust
the limit.
Representative Hudson MOVED to ADOPT $5,470 million dollars
for the Juneau Readiness Center. There being NO OBJECTION,
it was so ordered.
Representative John Davies MOVED to report CSHB 528 (FIN)
out of Committee with the accompanying fiscal note. There
being NO OBJECTION, it was so ordered.
CSHB 528 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
HOUSE BILL NO. 524
"An Act relating to the issuance of general obligation
bonds for the purpose of paying the cost of design,
construction, and maintenance of schools and state
facilities; and providing for an effective date."
Co-Chair Mulder explained that a technical amendment to the
Department of Community and Economic Development
appropriation was needed to add "under 37.05.315" after
"grant" on line 27, page 3.
Co-Chair Mulder MOVED to RESCIND the Committee's action in
passing CSHB 524 (FIN) from Committee for the purpose of an
amendment. There being NO OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to ADOPT "under 37.05.315" after
"grant" on line 27, page 3. There being NO OBJECTION, it was
so ordered.
Vice-Chair Bunde MOVED to report CSHB 524 (FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CSHB 524 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
ADJOURNMENT
The meeting was adjourned at 4:52 PM
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