Legislature(2009 - 2010)HOUSE FINANCE 519
02/04/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB81 || HB83 | |
| Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 81 | TELECONFERENCED | |
| += | HB 83 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 4, 2009
1:35 p.m.
1:35:15 PM
CALL TO ORDER
Co-Chair Hawker called the House Finance Committee meeting
to order at 1:35 p.m.
MEMBERS PRESENT
Representative Mike Hawker
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None.
ALSO PRESENT
Representative Kyle Johansen; Leo Von Scheben, Commissioner,
Department of Transportation and Public Facilities; Frank
Richards, Deputy Commissioner of Highways & Public
Facilities, Department of Transportation and Public
Facilities; Jim Beedle, Deputy Commissioner of Marine
Operations, Marine Highway System, Department of
Transportation and Public Facilities; Nancy Slagle,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities; Frank Richards, Deputy
Commissioner of Highways & Public Facilities, Department of
Transportation and Public Facilities; Emil Notti,
Commissioner, Department of Commerce, Community and Economic
Development; Amanda Ryder, Director, Division of
Administrative Services, Department of Commerce, Community
and Economic Development; Joe Austerman, Manager, Office of
Economic Development, Department of Commerce, Community and
Economic Development.
PRESENT VIA TELECONFERENCE
SUMMARY
HB 81 "An Act making appropriations for the operating
and loan program expenses of state government, for
certain programs, and to capitalize funds; making
supplemental appropriations; and making
appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska; and providing
for an effective date."
Budget Overviews:
Department of Transportation and Public Facilities
Commerce, Community and Economic Development
HB 81 was HEARD and HELD in Committee for further
consideration.
HB 83 "An Act making appropriations for the operating
and capital expenses of the state's integrated
comprehensive mental health program; and providing
for an effective date."
HB 83 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 81
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making supplemental
appropriations; and making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska;
and providing for an effective date."
HOUSE BILL NO. 83
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:38:42 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
LEO VON SCHEBEN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES (DOT/PF), introduced department staff
present at the meeting and discussed the departmental
structure of DOT (Copy on File).
1:40:18 PM
Commissioner von Scheben listed accomplishments within the
department during 2008. He spoke of a strategic plan
developed by the department and highlighted five business
goals within the plan that the department hopes to achieve:
· Improve the safety of the transportation system
· Develop a transportation system that supports and
promotes economic development
· Improve individual and collective performance
· Conduct business in an open and honest manner
· Promote career growth and safety for all staff
Commissioner von Scheben believed that the newly developed
goals were realistic.
1:42:18 PM
Commissioner von Scheben was excited about the nearly
completed Alaska Marine Highway Systems (AMHS) analysis. He
stated that the department is discussing the gasline
infrastructure. He listed other departments that DOT/PF will
work with in a coordinated effort concerning gasline
infrastructure needs.
1:44:14 PM
Co-Chair Stoltze asked Commissioner von Scheben to outline
the distribution of safety responsibilities between the
department and the railroad. He was particularly interested
in public safety at grade crossings.
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, answered that the Alaska Railroad was
established before DOT/PF roadways. Because of this the
responsibility falls on DOT/PF to pay the railroads for
repairs and upgrade of grade crossings. For safety, separate
crossings for railway traffic and highway traffic have been
implemented where possible.
1:46:13 PM
Co-Chair Stoltze asked whether the department would have
sole responsibility for the capital infrastructure. Mr.
Richards replied that the department is still in the process
of negotiating with the railroad to determine which entity
shoulders the cost of different safety needs.
1:48:27 PM
Commissioner von Scheben cited the Glenn Highway and Bragaw
Interchange as major accomplishments of the department. He
was excited about the completion of internet service at the
Fairbanks International Airport terminal. He listed
accomplishments from FY08:
· Transferred ownership of five docks and harbors to
communities.
· Maintenance and Operations crews covered 1,563,794
linear feet of highways with surface crack seal
treatment or re-leveling depressed roadway surfaces by
"banding".
· Paved 33 lane miles of gravel roads.
· Reconstructed 31 lane miles of roads.
· Performed 529 bridge inspections.
· Completed 9,748 commercial vehicle inspections during
FY08.
· Conducted airport pavement condition inspections on one
third of all paved airports in the state.
· Between 2006 and 2008, fatal and major injury crashes
dropped by 77 percent on the Seward Highway and 37
percent on the Parks Highway, Alaska's two designated
safety corridors.
· Provided surface maintenance of either gravel or paved
runways for 31 airports.
· Performed repairs on 34 bridges.
· 17 percent reduction in square footage of structurally
deficient bridges (2007-2008).
· Replaced over 41 failing culverts, some over six feet
in diameter.
· The Ted Stevens Anchorage International Airport, South
Terminal Seismic and Security Retrofit Project,
Concourse A was completed.
· In 2008 both AMHS passenger and vehicle ridership
showed an increase in numbers from those of 2007.
· AMHS on-time departures were at 93 percent for 2008.
1:51:23 PM
Representative Salmon wondered about accomplishments
pertaining to the AMHS. Commissioner von Scheben referred to
the systems analysis. He felt that vessels arriving and
departing according to schedule should be considered an
accomplishment. He added that the ferry schedule had been
approved early in the year to ensure that out-of-state
travelers could plan travel with the ferry system during the
summer tourist season. The department has set aside $60
million for vessel replacement. He relayed that he is
receiving less complaints from the public than in the past.
He suggested providing a list of AMHS accomplishments for
the committee at a later date.
1:53:35 PM
Representative Gara asked about the possibility of a river
highway system. He wondered what the state spends in
providing transportation on the Yukon and Kuskoquim rivers.
1:54:09 PM
JIM BEEDLE, DEPUTY COMMISSIONER OF MARINE OPERATIONS, MARINE
HIGHWAY SYSTEM, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, answered that AMHS does not have vessels built
for travel on rivers. Representative Gara asked the
department to consider river travel. He felt that the need
for a freshwater system was strong. Commissioner von Scheben
responded such an endeavor would be of high cost to the
state.
1:55:25 PM
Commissioner von Scheben continued with the FY09 status
report. A 2008 management system upgrade on the AMHS vessel
MV Aurora saved the department $120,000. The same system
upgrade is being done on the MV Tustumena and MV Matanuska
and savings to the state should be evident within two years.
Co-Chair Hawker stated that the FY08 allocation for fuel
from the governor's budget had been based on higher fuel
prices. He wondered if the drop in the price of fuel had
left the department with an excess fuel allotment.
1:57:05 PM
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
explained that the department used the fuel cost savings to
cover increased costs for fuel and utilities for highways
and aviation facilities that had not seen the same drop in
fuel cost because of the timing of annual procurements. The
department had already purchased most of the fuel prior to
the price drop. Rural areas are experiencing a slower
response to dropping fuel prices. The department is
continuing to review the AMHS fuel needs.
Co-Chair Hawker asked for an accounting reconciliation of
fuel costs for FY09 and comparisons and projections for
FY10. He felt this would give the committee a basis to
examine what might be needed in discussing the continuation
of the fuel subsidy program. Commissioner von Scheben
replied that the department would provide the information as
soon as possible.
1:58:47 PM
Representative Crawford asked if any thought had been given
to capital requests for the building of more fuel storage
facilities. He suggested stockpiling fuel in anticipation of
rising fuel costs. Commissioner von Scheben wondered where
the storage facilities might be built and if the stored fuel
would be specifically for AMHS. Representative Crawford
suggested building in Ketchikan, Wrangall, Juneau, and
possibly Haines, and clarified the fuel would be for use by
the AMHS. Commissioner von Scheben answered that he would
take the idea into consideration.
2:00:25 PM
Representative Gara thought that the cost of importing fuel
from Washington State was less expensive per gallon and that
the price is inflated in Alaska. He felt that a larger
storage capacity in the state was comparable to having
another refinery. He thought that this was a possible way to
look at lowering fuel costs throughout the state.
Representative Foster pointed out the plan could work
against the state. Representative Gara maintained that the
fuel storage plan could save rural Alaskan's $0.60 to $0.70
per gallon. Co-Chair Hawker suggested discussing the issue
with the Department of Commerce, Community, and Economic
Development.
2:03:19 PM
Commissioner von Scheben spoke of the effect of the hiring
freeze on the department. The department has a vacancy of
275 full-time positions and 100 seasonal positions. This
amounts to 10 percent of its workforce. Waivers have been
requested for the continuation of construction programs,
road maintenance, airport maintenance, continued safe
operations of AMHS, and international airports. He informed
the committee that the federal stimulus package was a major
topic of discussion within the department and has prompted
the department to prepare a Statewide Transportation
Improvement Program (STIP) amendment.
2:04:26 PM
Commissioner von Scheben specified that the STIP amendment
would be ready by February 6, 2009.
Co-Chair Hawker asked Commissioner von Scheben to talk about
how the federal stimulus plan would affect the department.
Commissioner von Scheben understood that the federal
stimulus funding the department would receive would not
require a state match. The department would be required to
use 50 percent of the funding within 90 to 180 days,
depending on which version of the plan is passed.
2:05:47 PM
Commissioner von Scheben estimated that the amount of money
that his department could receive was between $300 to $500
million. He informed that discussions are ongoing concerning
the use of stimulus funds.
2:07:02 PM
Commissioner von Scheben felt that more would be known once
President Obama signed a stimulus bill. The STIP process
takes 90 days. The department began the STIP process early
in order to be project-ready when the stimulus funds become
available.
Co-Chair Hawker asked how the department will determine
which projects will receive stimulus dollars.
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, stated that the money would be spent on projects
that have been on the STIP and approved by the legislature.
2:09:24 PM
Mr. Richards stressed that congress is adamant that stimulus
dollars will be pulled and distributed to other states with
bid-ready projects if the dollars are not spent in the time
allotted. He asserted that a list of projects had been made
that could use the money provided they receive legislative
approval. The department must first complete the STIP
amendment to highlight projects going into the construction
phase. The amendment should be going out on February 6, 2009
concurrent with the department's request for appropriation.
The hope is to have the projects begin as quickly as
possible. Another emphasis Congress has placed on the
stimulus money is that it be used in areas of economic
distress; this equates to 60 percent of the proposed
projects for highways and transit. All areas of the state
qualify as economically distressed except The North Slope,
Anchorage, Fairbanks, Juneau, Sitka, and Ketchikan.
2:11:13 PM
Representative Austerman asked for a definition of
transportation projects.
Deputy Richards answered that there are three initial
formula funds mentioned: the federal highway administration
funds, the federal transit administration funds, and federal
aviation funds. Under the federal highway program, the
department uses funds for enhancement of transportation
projects such as bikeways, pedestrian facilities, and
waysides. The House and Senate bills currently being debated
on the federal level have differing definitions of what
constitutes a transportation project.
Vice-Chair Thomas asked if a requirement for organized labor
was in the stimulus plan. Deputy Richards answered that he
did not think it was a requirement. Vice-Chair Thomas
expressed concern that contracts in rural Alaska would be
given to large companies instead of local contractors. He
felt that the contracts should be bid out on a small scale
for the stimulus package funds to help rural Alaskans.
2:15:08 PM
Representative Fairclough wondered if a dollar number could
be given for differed maintenance for the department's
facilities, highways, and airports. Deputy Richards answered
that the department's dollar numbers for differed
maintenance are ever-increasing.
2:17:45 PM
Representative Fairclough wondered how the department was
planning on addressing the issue of rising deferred
maintenance numbers. She felt that some stimulus dollars
could be used for deferred maintenance projects, rather than
funding new projects. She spoke of poor road conditions
throughout the state, particularly in rural areas and along
the Glenn Highway. She questioned weather the department had
plans to use stimulus dollars to repair roads in those
areas. Deputy Richards replied that Glenn Highway rut
repairs are on the list of projects.
2:19:51 PM
Mr. Richards added that culverts on 62 miles of road on the
Dalton Highway will be replaced. He stressed that the
department has every intention of using some stimulus
dollars for deferred maintenance in the areas of highways
and aviation.
Representative Fairclough asked if the Glenn Highway repairs
were in the STIP amendment and, if so, when would they be
completed. Deputy Richards replied that the project
timelines are listed on the departments website.
2:21:40 PM
Representative Gara asked if airport upgrades in rural
Alaska go through the STIP amendment. Commissioner von
Scheben replied no. Representative Gara expressed concern
that stimulus dollars would not be used for rural community
projects.
2:23:17 PM
Commissioner von Scheben shared that a list of Airport
Improvement Programs (AIP) is currently being compiled.
Representative Gara felt that local hire needed to be
enhanced throughout the state. He wondered if the department
would be diligent about local hire. Commissioner von Scheben
replied that DOT/PF has a Disadvantaged Business Enterprise
(DBE) program. He added that between the aviation and
highway projects there is potential for local hire. Mr.
Richards added that the price of the projects have a wide
range. He spoke of different groups that DOT/PF is
collaborating with in order to put Alaskans to work.
2:27:21 PM
Representative Austerman stated he was concerned with
contract overload. He thought outside contractors would be
necessary. Commissioner von Scheben communicated that the
increase in workload would be 30 percent. He felt that the
Alaskan workforce would not be overburdened.
2:28:56 PM
Co-Chair Stoltze relayed that the Glenn Highway is a state
highway and its Eagle River Bridge is the most used bridge
in the state. He asked that the ownership of the Birchwood
Airport remain with the state.
2:30:45 PM
Commissioner von Scheben replied that he was not aware of
any change of ownership concerning the Birchwood Airport.
Co-Chair Stoltze stated for the record that Birchwood
Airport is the only rural airport that is not in debt and
that the municipality would like to retain it as a source of
revenue.
2:32:31 PM
Representative Fairclough noted that Commissioner von
Scheben reached out to committee members and invited them to
view the Dalton Highway and see the challenges firsthand.
She felt the experience had been informative. She thought
that there were consequences to be expected for accepting
stimulus money and cautioned the department to plan ahead.
2:34:13 PM
Representative Foster reported that Northwest Alaska has 152
state employees; two in Saint Mary's, two in Unalakleet, and
148 in Nome. Half of the Nome employees were born in
villages and have a knowledge of the needs in rural Alaska.
2:35:25 PM
^COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
EMIL NOTTI, COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT (DCCED), presented his staff. The
department's vision statement is to promote a healthy
economy and strong communities. The total FY10 operating
budget request fort the department is $187,618,100. The
amount includes a general fund reduction of 48.6 percent
from the FY09 Management Plan (a decrease of $18.5 million).
This decrease is primarily due to the removal of $23 million
of general funds used to pay for a one-year increase in the
ceiling of Power Cost Equalization (PCE) formula from $0.525
to $1.00/kWh. To more accurately compare budgetary changes,
when the $23 million one-time PCE funding is removed from
comparisons, the department's general fund increases by $4.5
million. The requested increases can be broken into two
groups: budgetary changes that maintain the current level of
service or budgetary changes that increase the level of
service. About $4.36 million is requested to maintain the
current level of service as follows:
· $2 million of general funds to replace business license
revenue due to annual reduction fees from $100 to $50.
· $1.9 million of general funds in Alaska Seafood
Marketing Institute (ASMI) to replace lost federal and
other revenue.
· $255.5 of general funds for contractual salary
increases.
· $210.3 of general funds for the Alaska Energy Authority
(AEA) Executive Director/Statewide Energy Coordinator.
The general fund budgetary change that increases the current
level of service is $150,000 of general funds to the AEA to
support the implementation of alternative energy and other
energy initiatives.
2:39:58 PM
Commissioner Notti relayed that funding for the PCE request
program is $32.8 million, down form $51.1 million in FY09.
2:42:01 PM
Commissioner Notti revealed that the majority of the $138,
311,401 capital budget request is for projects that pass
through the department to associated organizations,
corporations, and communities. He listed corporations,
agencies and contracts within the department:
· AEA Energy Projects: $31 million ($20 million federal
and $11 million other).
· AEA-Denali Commission match for rural Power System
Upgrades: $10 million other funds.
· Community Block Grants: $6.1 million ($70,000 general
fund and $6,030,000 federal.
· Manufacturing Extension Program: $806,401 general
fund.
· Community Development and Assistance: $2.63 million
($430,000 general fund, $600,000 federal, $1,600,000
other).
· Denali Commission Match for Rural Transportation: $5
million other funds,
· NPR-A [ National Petroleum Reserve Alaska] Impact
Grant program: $22.5 million federal.
· Electrical Emergencies Program: $250,000 general
funds.
Commissioner Notti pointed out that the following
corporations have been assigned to the department by
statute:
· Alaska Aerospace Development Corporation, (AADC)
· Alaska Industrial Development and Export Authority,
(AIDEA)
· Alaska Energy Authority (AEA)/AIDEA
· Alaska Railroad Corporation (ARRC)
· Regulatory Commission of Alaska (RCA)
· Alaska Seafood Marketing Institute (ASMI)
Commissioner Notti stated that these entities are
independent from the department but their respective
missions are complimentary and within the scope of the
mission of the department.
2:43:10 PM
Co-Chair Stoltze spoke of the effective marketing done by
the Alaska Seafood Marketing Institute (ASMI). He wondered
if ethics would allow the department to take over marketing
from the Department of Natural Resources by creating a
corporation similar to ASMI to market Alaska's other
agricultural goods. Commissioner Notti felt that the
question should be brought to the legislature. He offered to
research the subject for the committee.
Representative Gara mentioned DCCED efforts to alleviate
fuel problems in rural Alaska. He pointed out that the state
could save money by upgrading existing diesel plants. Denali
Commission money is currently being used to upgrade the
plants. According to AEA the cost for upgrades in rural
Alaska is $30 million. He felt that upgrading the plants
quickly would benefit the state and wondered if the
department had been discussing the issue.
2:48:04 PM
Commissioner Notti replied that the department had been
looking into upgrades. He thought that the biggest expenses
were tank farms and diesel generators. He expressed that the
cost of diesel fuel was not going down and suggested the
state consider alternatives. He reassured the committee that
the department was committed to helping lower energy costs.
2:49:45 PM
Representative Gara understood that diesel use in rural
areas would continue to some extent regardless of whether
other energy options were available. He maintained that the
state would benefit from immediate upgrades of diesel
plants. Commissioner Notti replied that the department would
work with AIDEA on the issue.
Representative Austerman queried the employee structure of
AIDEA and AEA. Commissioner Notti thought that between the
two divisions there were 66 employees. Representative
Austerman asked for clarification as to how many of those
employees were working specifically for AEA.
AMANDA RYDER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
explained that organizational work charts can be found in
the Governor's Budget Detail Book. Employees of AIDEA
constitute AEA workforce. Representative Austerman asked why
the number of employees was not broken down in the overview.
Ms. Ryder believed that due to a legislative decision made
many years ago in order to cut costs, the AEA cannot have
official employees by statute.
Vice-Chair Thomas noted that no one from the tourism
industry was present at the meeting. He wondered if the
department worked with the tourism industry through the
Alaska Travel Industry Association (ATIA).
2:54:02 PM
Commissioner Notti answered that the bulk of money spent on
tourism flows through the department directly to ATIA.
Vice-Chair Thomas wondered about the difference in funding
between ATIA and ASMI. Ms. Ryder stated that $9 million of
state funds have been appropriated for ATIA. The FY09 budget
for ASMI is $750,000, a fund source change has been
requested that would bring the total budget up to $2
million.
Vice-Chair Thomas emphasized that the commercial fishing
industry contributes $84 million per year to the general
fund. He expressed concern that the equity of marketing was
not fairly balanced between ATIA and ASMI and stressed that
commercial fishermen put enough into the general fund to
receive more money for marketing. He asserted that given the
amount of funding they are receiving from the state, someone
from ATIA should be present at the meeting.
2:57:15 PM
Representative Salmon asked about ceasing the use of diesel
fuel in rural villages. He wondered if the department was
funding the exploration of new energy sources. Commissioner
Notti answered that all the money going to energy research
is going through ATIA. He stated that new research would be
generated through ATIA and not DCCED.
2:59:17 PM
Representative Salmon wondered about river power as a
replacement for the diesel generators. He felt the fish
wheel was an efficient power source. He thought a lot of
diesel fuel could be saved between May and December with an
alternative hydro fuel source.
3:01:10 PM
Representative Salmon felt that alternative energy sources
could be applied to rural Alaska. He questioned what
advances were being made to create viable, successful,
alternative energy sources. He wondered what percentage of
departmental funds has been devoted to the subject.
3:03:13 PM
Commissioner Notti could not give immediate numbers. He
talked about possible technical problems with river power.
He felt answers could come from AIDEA. He felt it would take
a combination of systems to solve the energy problem. He
agreed the river is a powerful energy source but he felt it
was going to take a long time to efficiently harness the
power.
3:04:34 PM
Representative Fairclough hoped that DCCED and other state
agencies working in the field of alternative energy research
were sharing information. Commissioner Notti answered that
AEA has vetted the projects that have been put before the
legislature and that the projects differ geographically and
technologically. Representative Fairclough stated that the
methodology used by the University of Fairbanks to examine
the cost benefit of different energy alternatives was
impressive. She hoped a filter was in place between AEA and
the university to avoid duplicate projects which would cost
the state twofold. She expressed that energy alternatives
limited to summertime use may not be valuable to the state.
She pointed out that millions of federal dollars have
already been spent researching alternative energy.
3:07:39 PM
Commissioner Notti reassured the committee that the filter
that is currently being used helps the department to examine
the cost benefits of a variety of alternative energy
possibilities. Co-Chair Hawker urged the department to be
diligent in spending state money.
3:08:30 PM
Co-Chair Hawker commented on SB#230 which authorized $100
million of state funds to be spent on tax credits for the
film industry. He wanted to know where the film offices
would be located and if the payment of credits were included
in the budget. Commissioner Notti replied that it has taken
time to draft regulations. A film office director has been
hired as well as an assistant. Applications are currently
being taken now for reimbursement approval. To date no money
has been spent in reimbursements. Ms. Ryder added that the
tax credits were not included in the budget. She clarified
that the Department of Revenue (DOR) calculates the tax
credit in its fiscal summary.
3:10:09 PM
Co-Chair Hawker reiterated the question asking for a
definitive number in the state budget that is to be used to
pay the film credits.
3:11:34 PM
JOE AUSTERMAN, MANAGER, OFFICE OF ECONOMIC DEVELOPMENT,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
(OED), informed the committee that OED would issue a
certificate for the tax credit. Given that The film industry
is not a taxpayer to the state, the certificate would be
brokered to businesses that have corporate income tax
obligations to the state. He stated that the authorized
appropriation is handled through DOR. Co-Chair Hawker voiced
his discomfort with the departments' uncertainty with the
spending authority behind the certificates. Ms. Ryder
assured the committee that she would research the issue.
3:13:29 PM
Mr. Austerman stressed that the department had worked to
draft regulations that would create a program with an
Alaskan focus. The department is committed to ensuring that
the program benefits the state. The regulations are under
public review for another 30 days and a package should be
ready for signing in 60 days.
Representative Salmon wondered about future funding of the
Denali Commission. Commissioner Notti replied that the
department was not directly involved with the commission. He
asserted that he did not know about future funding of the
Denali Commission and did not want to speculate.
Representative Gara wondered how much local business was
expected to be generated by the film office. Mr. Austerman
explained that there is a reporting requirement written into
SB#230 which identifies anticipated film industry spending
in the state. A report will be generated to identify how
much money is coming into the state and which companies will
qualify for the tax credit. He asserted that the OED would
work to identify the industries economic impact to the
state.
3:18:12 PM
Representative Austerman pointed out that in addition to the
tax credits, the state is funding the film office $290,000
per year from the general fund.
Co-Chair Hawker mentioned the graphs in the 10-year overview
did not reflect any change in general or capital fund
expectations. Commissioner Notti remarked that there were so
many economic unknowns that it was difficult to project the
budget.
3:19:35 PM
Co-Chair Hawker suggested that budget funding be requested
in good faith. He felt that the department had not presented
an honest budget but rather a safe budget. He felt there was
no vision for the department reflected in the overview.
3:21:56 PM
Representative Salmon hoped that the future budget request
from the department would include funding for alternative
energy testing.
Representative Crawford expressed concern that the
department did not have an effective plan to move forward
with renewable energy projects. He warned that the state
should be prepared when fuel prices rise again.
3:23:49 PM
Representative Kelly felt that the department's
participation in the clean coal project should be noted as a
significant achievement.
Commissioner Notti referred to Representative Crawford's
concerns. He reported that there was a plan to effectively
oversee alternative energy projects.
3:26:27 PM
Representative Joule thanked Commissioner Notti for
recognizing that there is a difference between alternative
and renewable energy.
HB 81 and HB 83 were HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 3:27 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| COMMERCE 10 year plan.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| DOT&PF Org Chart .pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| TRANSPORTATION 10 year plan 2009.02.04 HFC.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| Historical Construction Expenditures.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| M&O GF Auth.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |