Legislature(2001 - 2002)
05/12/2002 10:27 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 12, 2002
10:27 PM
TAPE HFC 02 - 112, Side A
TAPE HFC 02 - 112, Side B
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 10:27 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 Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Carl Moses
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Representative Reggie Joule; Peter Ecklund, Staff,
Representative Williams; Bob Stallmaker, Director of
Administration, Department of Environmental Conservation;
Denny Dewitt, Staff, Representative Eldon Mulder.
PRESENT VIA TELECONFERENCE
There were no teleconference testifiers.
SUMMARY
CSSB 247(FIN) am(brf sup maj fld)
"An Act making and amending appropriations and
reappropriations; and providing for an effective
date."
HCS CSSB 247(FIN) was REPORTED out of Committee
with a "do pass" recommendation.
Co-Chair Mulder MOVED to ADOPT proposed committee substitute
Amendment 22-GS2035\B, 5/11/02. There being NO OBJECTION, it
was so ordered.
Representative Croft referred to the appropriation for
Mosquito Magnet Units on page 7, line 5.
PETER ECKLUND, STAFF, REPRESENTATIVE WILLIAMS observed that
mosquito magnets are devices used to keep mosquitoes away.
Vice-Chair Bunde questioned the appropriation of $19 million
dollars on page 106. Co-Chair Mulder explained that the item
is a reappropriation and noted that the unexpended balance
was closer to $250 thousand dollars.
Vice-Chair Bunde referred to a $250 million dollar
appropriation for little league baseball fields in
Bicentennial Park. Co-Chair Mulder explained that the Mayor
and public support the appropriation.
Representative John Davies MOVED to ADOPT Amendment 1.
Amendment 1 would add $200 thousand dollars for Fairbanks
North Star Borough Road Service Areas in Senate District O.
Co-Chair Mulder OBJECTED.
Representative John Davies maintained that the amendment is
a matter of equity. Co-Chair Williams observed that the
Senator [from District O] chose not to include the funds.
A roll call vote was taken on the motion to adopt Amendment
1.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment 2. Amendment 2
would add $900 thousand dollars for the Yuut Elitnaurviat
People's Learning Center - Phase 1 Construction [in Bethel].
Co-Chair Mulder and Co-Chair Williams OBJECTED.
Representative Croft spoke in support of the amendment and
explained that the amendment would leverage a large amount
of federal and private funds. The federal government and
private partners would pick up the operational expense.
Co-Chair Williams spoke in opposition to the amendment. He
pointed to a lack of state funds.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative John Davies MOVED to ADOPT Amendment 3.
Amendment 3 would add $3.1 million dollars for the City of
Shishmaref - ErosionControl (ED 37) as a FY02 supplemental.
Co-Chair Williams OBJECTED.
Representative John Davies stressed that it is an urgent
issue and noted that houses in Shishmaref have to be moved
away from the bank because erosion is endangering lives. He
acknowledged that federal funds are expected in the future,
but emphasized the immediate need to stabilize the problem.
Representative Lancaster observed that the proposed fix is a
sand bag operation. He suggested that alternatives be
reviewed.
REPRESENTATIVE REGGIE JOULE explained that the total cost of
the project is over $4 million dollars. The community has
over $900 thousand dollars but needs additional funds.
Representative Hudson questioned if funding is available
from the Denali Commission. Representative Joule explained
that a tank farm operation consolidation is being
considered.
Co-Chair Williams expressed the desire to find additional
funding, but observed that there was insufficient funding in
the capital budget.
A roll call vote was taken on the motion to adopt Amendment
3.
IN FAVOR: Croft, Davies, Moses, Foster,
OPPOSED: Bunde, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
The MOTION FAILED (4-7).
Representative Croft MOVED to ADOPT Amendment 4. Amendment 4
would add $200 thousand dollars to the Department of
Environmental Conservation for corrosion monitoring and
control (ED99). Co-Chair Williams OBJECTED.
Representative Croft observed that the Department of
Transportation and Public Facilities manages pipeline
corrosion. He explained that the amendment would fund a
small project in the Department of Environmental
Conservation to study corrosion monitoring and control
technologies that might apply in order to anticipate and
prevent spills.
Co-Chair Mulder spoke against the amendment. He observed
that oversight comes from the Department of Transportation
and Public Facilities. He emphasized that corrosion happens
over time. He questioned the department's involvement.
BOB STALLMAKER, DIRECTOR OF ADMINISTRATION, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, provided information. He
explained that the Amendment would restore the Best
Management Practices request submitted by the Governor. A
best practice manual would be created and available for all
companies in the industry. Prevention is under the
jurisdiction of the Department of Environmental
Conservation. The project would not be restricted to the
pipeline, but would extend to storage tanks.
Representative John Davies noted that North Slope Borough
infrastructure is aging.
A roll call vote was taken on the motion to adopt Amendment
4.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft WITHDREW his OBJECTION Amendment 5.
Representative John Davies MOVED to ADOPT Amendment 6.
Amendment 6 would add $100 thousand dollars to the FY02
supplemental operation costs for the 24-hour State Emergency
Coordination Center in the Department of Military and
Veterans Affairs.
Co-Chair Mulder OBJECTED. He noted that the total amount
needed was $100 thousand dollars and that $50 thousand
dollars was already appropriated.
Representative Davies MOVED to AMEND Amendment 6 by deleting
"100" and inserting "50" thousand dollars. There being NO
OBJECTION, it was so ordered.
A roll call vote was taken on the motion to adopt Amendment
6.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment 7. He observed
that there are no costs associated with the amendment. The
Amendment would move the Veterans' Home Study out of the
Legislative Budget and Audit Committee to the Department of
Administration and the Welfare and Medicaid Services Study
to the Department of Health and Social Services from the
Legislative Council.
Co-Chair Williams stressed that the Legislature appropriates
the money and is the appropriate entity for the study. Co-
Chair Mulder added that the respective committees would also
work with the affected departments.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative John Davies MOVED to ADOPT Amendment 8.
Amendment 8 would appropriate $340,600 thousand dollars in
order to fully fund the McGraw/Hill contract of the High
School Qualifying Exam. Co-Chair Williams OBJECTED.
Representative John Davies reiterated that the amendment
would fully fund the CTB McGraw/Hill contracts. He argued
that if the Legislature expects the Department to do the
work than it should fund the contract.
Co-Chair Mulder indicated his intention to fund the full
amount and emphasized the need to get the right numbers.
A roll call vote was taken on the motion to adopt Amendment
8.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative John Davies MOVED to ADOPT Amendment 9.
Amendment 9 would add $445,900 dollars to the Department of
Public Safety for aircraft and vessel repair and
maintenance. Co-Chair Mulder OBJECTED.
Representative John Davies explained that the total request
was $1,645,900 dollars. The amendment would fully fund the
request. Without the additional funding vessel safety would
not be ensured.
Co-Chair Mulder noted that the request has been funded at
$1.2 million dollars and that he is comfortable with the
level of funding.
A roll call vote was taken on the motion to adopt Amendment
9.
Co-Chair Williams added
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Hudson MOVED to ADOPT Amendment 10. He
clarified that the effective date would be January 1, 2003.
Amendment 10 would add $3,335,700 dollars from federal
receipts to the Office of the Governor, Division of
Governmental Coordination, for the Coastal Impact Assistance
Program.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment 11. Amendment
11 would add $115 thousand dollars in general funds for the
Small Business Development Center for the University of
Alaska at $1,565,000 dollars. Co-Chair Mulder OBJECTED.
Representative Croft explained that the general funds would
leverage a substantial amount of federal funds ($230,000).
He emphasized the role of small business in promoting
economic development.
Co-Chair Williams noted that the current appropriation funds
the Governor's request.
Representative John Davies explained that federal funds
would be left on the table without the amendment.
A roll call vote was taken on the motion to adopt Amendment
11.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Bunde MOVED to ADOPT Amendment 12 on page 13,
line 21: Delete "Hill LRSAR Grant" and insert "Chugiak
Birchwood Eagle River Rural Road Service Area Grant". He
explained that the amendment corrects a typographical error.
There being NO OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to ADOPT Amendment 13 on page 24, line
28 and 29: Add "and Rehabilitation". There being NO
OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to ADOPT Amendment 14 on page 106:
th
Delete "planning and operation" and insert "40 Ave.
intersection and road improvement". There being NO
OBJECTION, it was so ordered.
Co-Chair Williams MOVED to ADOPT [Omnibus] Amendment 15.
Amendment 15 contained a number of amendments drafted by the
Legislative Legal Service.
Mr. Ecklund discussed the amendments contained in Amendment
15. He noted that Amendment Amendment 22-GS2035\B.2 was a
late reappropriation request from Representative Lancaster.
The amendment would change the scope of the project without
an addition of funds.
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER discussed
additional amendments contained in the packet labeled
Amendment 15. He explained that Amendment 22-LS800\C.23
provides $10 million dollars for deferred maintenance of
state facilities and is in the supplemental of portion.
Mr. Dewitt explained that Amendment 22-LS800\C.24 adds
additional funds to the Alaska Debt Retirement Fund, which
would be in the supplemental budget and carried forward. As
a result of HB 528 it is necessary to add funds for
electrical companies that are charging their debt service
back to 1999.
Mr. Dewitt observed that Amendment 22-LS800\C.25
appropriates $20 million dollars to the Marine Highway
System Fund and restores some of the capitalization lost
over the past years. The appropriation would be in the
supplemental budget.
Mr. Dewitt noted that Amendment 22-LS800\B.8 would authorize
general funds for a suicide prevention study to replace
federal funds that were not available.
Mr. Dewitt explained that Amendment 22-LS800\B.6 changes the
general fund appropriation for parks to receipts supported
services.
Mr. Dewitt observed that Amendment 22-LS800\C.28 pertains to
Gas Pipeline Permits. The Office of Management and Budget
requested the reappropriation of up to $150 thousand dollars
for this purpose. There are no legislative funds for
reappropriation so the request was moved to the Office of
the Governor.
Mr. Dewitt explained that Amendment 22-LS800\C.27 pertains
to veterans and military memorials. There is a bill before
the legislature to create an endowment fund to maintain and
develop better memorials. The amendment would assist the
funding of that action.
Mr. Dewitt noted that Amendment 22-LS800\C.30 was a request
from the Department of Public Safety, which would carry
forward receipts for fire prevention services.
Mr. Dewitt observed that Amendment 22-LS800\B.9 was a
request from the Department of Administration to carry
forward Pioneer Homer receipts forward into FY03.
Mr. Ecklund noted that Amendment 22-LS800\A.100 was at the
request of the Office of Management and Budget and would
replace Alyeska criminal settlement funds that could not be
spent for the purposes identified, with Exxon Valdez Oil
Spill Settlement funds.
Mr. Dewitt explained that the next amendment [which was not
drafted by Legislative Legal Services] was at the request of
the Office of Management and Budget and would appropriate
$87 thousand dollars as a lapsed reappropriation to the
Department of Corrections for security, safety and
renovations in community jails. It would be a capital
appropriation.
Mr. Ecklund observed that Amendment 22-LS800\A.101 was at
the request of the Office of Management and Budget in an
attempt to have loan repayments deposited into the bulk fuel
revolving loan fund.
Mr. Dewitt noted that Amendment 22-LS800\A.103 includes
lapsing funds from the Legislature to various projects.
Mr. Dewitt discussed Amendment 22-LS800\B.3. He explained
that there were funds available from the Bank of America
settlement. The funds would be reappropriated to the
avalanche program in Eagle River.
TAPE HFC 02 - 112, Side B
Mr. Dewitt explained that Amendment 22-LS800\C.29 would
appropriate over $1 million dollars [to the identified
school districts]. It effectively defers the floor on the
education foundation funding until 2004.
In response to a question by Representative John Davies, Mr.
Dewitt clarified that subsequent law cannot be changed in
the appropriation bill. Therefore the amendment would
provide an extended lapse date. Representative Davies
expressed concern that if the amount is not in the
foundation formula than the local match is unable to rise.
Co-Chair Mulder agreed and explained that the method was the
best that could be achieved in an appropriation bill.
Representative Hudson clarified that the amendment would
take the place of HB 312.
Mr. Dewitt explained that Amendment 22-LS800\C.32 was a
replication of HB 175, which was passed by the Committee.
Representative Croft pointed out that the Minority offered
ten amendments for a total of $6 million dollars, which were
rejected on the basis that money was not available. He
observed that the first four part of omnibus Amendment 15
contains $50 million dollars in new funding.
There being NO OBJECTION, Amendment 15 was adopted.
Co-Chair Williams MOVED to ADOPT Amendment 16.
Mr. Ecklund explained that the first three pages were
technical corrections.
Mr. Dewitt clarified that the remaining portion of Amendment
16 [Amendment 22-LS800\B.7] corrects an error in the
Certificate of Need Study. Medicaid funds must be directed
through the designated agency for the state (Department of
Health and Social Services.)
Mr. Ecklund explained that the remaining portion of the
amendment would clarify effective dates. Supplemental
appropriations were given May 14, 2002 effective dates.
Reappropriations were given June 30, 2002 effective dates.
July 1, 2002 were used for FY04 and the remaining effective
dates.
There being NO OBJECTION, Amendment 16 was adopted.
Co-Chair Mulder MOVED to allow the Legislative Finance
Division and Legislative Affairs Agency authority to make
technical corrections as they deem fit, provided they are
not subsequent and major. There being NO OBJECTION, it was
so ordered.
Representative Foster MOVED to report HCS CSSB 247 (FIN) out
of Committee. There being NO OBJECTION, it was so ordered.
HCS CSSB 247(FIN) was REPORTED out of Committee with a "do
pass" recommendation.
ADJOURNMENT
The meeting was adjourned at 12:03 AM
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