Legislature(1995 - 1996)
04/07/1995 01:40 PM Senate CRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
April 7, 1995
1:40 p.m.
MEMBERS PRESENT
Senator John Torgerson, Chairman
Senator Randy Phillips, Vice Chairman
Senator Tim Kelly
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Fred Zharoff
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR SENATE JOINT RESOLUTION NO. 18
Relating to establishment of an Arctic council.
SENATE JOINT RESOLUTION NO. 21
Proposing amendments to the Constitution of the State of Alaska
creating a special fund related to the use of federal mineral
revenue sharing payments due the state from certain federal leases
on the coastal plain of the Arctic National Wildlife Refuge.
SENATE BILL NO. 124
"An Act relating to the human services community matching grant
program; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SJR 18 - No previous action to record.
SJR 21 - No previous action to record.
SB 124 - No previous action to record.
WITNESS REGISTER
Senator Drue Pearce
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of SJR 21
Charles McKee
P.O. Box 143452
Anchorage, AK 99514
POSITION STATEMENT: Testified on SJR 18, SJR 21 & SB 124
Brad Pierce, Senior Policy Analyst
Office of Management & Budget
P.O. Box 110020
Juneau, AK 99811-0020
POSITION STATEMENT: No position on SJR 21
Kevin Ritchie, Executive Director
Alaska Municipal League
217 Second St., Suite 200
Juneau, AK 99801
POSITION STATEMENT: Supports concept of SJR 21
Cheryl Davis, Staff to Senator Al Adams
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SJR 18
Teresa Sager, Staff to Senator Mike Miller
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 124
Cheryl Keepers
Fairbanks North Star Borough
P.O. Box 71267
Fairbanks, AK 99707
POSITION STATEMENT: Testified on SB 124
Nadine Winters
Fairbanks North Star Borough
P.O. Box 71267
Fairbanks, AK 99707
POSITION STATEMENT: Available to respond to questions on SB 124
ACTION NARRATIVE
TAPE 95-11, SIDE A
Number 001
SJR 21 ANWR SPECIAL REVENUE FUND
CHAIRMAN TORGERSON called the Senate Community & Regional Affairs
Committee meeting to order at 1:40 p.m. and introduced SJR 21 as
the first order of business.
SENATOR DRUE PEARCE, prime sponsor of SJR 21, said members of the
Senate and House were in Washington, D.C. the past weekend and she
came away from Washington feeling like this is the year that
Congress is going to act on allowing exploration and what is hoped
will then be eventual development on the coastal plain of the
Arctic National Wildlife Refuge. She added there is a sense of
urgency because this is the "window of opportunity year," and she
has been thinking for a period of time about how to deal with the
revenues that will come in from ANWR when the time comes.
SJR 21 proposes placing before the voters of the state at the next
general election an amendment to the Constitution that would create
a special revenue fund of the revenues coming in from the Arctic
National Wildlife Refuge. These are the royalties from any future
development except for the 50 percent share that's already required
by Alaska's Constitution to go in the Alaska Permanent Fund. The
resolution does not get into the question of whether there should
be a 90/10 royalty split with the federal government, or whether
there should be a 50/50 royalty split with the federal government.
Senator Pearce said it is her personal belief that 50 percent of
something is a lot better than 90 percent of nothing, but that is
a decision that Congress will have to make.
Senator Pearce said the legislature could appropriate the money
that's in the fund only for assistance or aid to a municipality
under a program of aid to local governments that would be
established by law in Title 29, or, secondly, for the support of
school construction and school major maintenance programs as is
currently embodied in Title 14. She acknowledged that this is a
dedication of funds, but she believes that it is a dedication of a
special stream of funds.
Senator Pearce said if ratified by the citizens of the state, there
would be a mechanism in place before ANWR is explored and before
development is a reality. She believes that being able to go back
to Congress and letting them know how the state plans to use any
revenues that the state receives will help get some teetering back
at the Congressional level.
Senator Pearce spoke to the funding problems municipalities have
been facing in the last 10 years and the increased financial
responsibilities they are being required to take on because of
falling oil revenues.
Number 095
SENATOR TORGERSON opened the meeting to public comment.
CHARLES MCKEE, testifying from Anchorage, stated his opposition to
SJR 21 because he believes it takes revenues away from the
permanent fund and the state treasury and places them in the
control of a very large municipality in the Arctic that has run up
a very large debt burden.
Number 125
BRAD PIERCE, Policy Analyst, Office of Management & Budget, stated
there is no official Governor's position on SJR 21 except that it
is "an interesting concept."
Mr. Pierce said Governor Knowles is squarely behind the development
of ANWR and has repeatedly expressed his strong support for full
funding of education, as well as working out an equitable
partnership with municipalities. However, linking these three
concepts via a constitutional amendment is where the concerns
arise.
The basic concern is with dedicated funds, and the basic problem is
that the particular interests of the education community and
municipalities are elevated over other public service
responsibilities. As much as the public education, they question
whether it is in the state's interest to put it above everything
else. Mr. Pierce believes this will run into the same kind of
opposition that Governor Cowper's education endowment did when
people begin to seriously examine the implications of giving school
construction and maintenance a higher priority than road
maintenance, village sanitation facilities, etc.
Number 215
KEVIN RITCHIE, Executive Director, Alaska Municipal League,
expressed the appreciation of the 118 member communities in the
League for the introduction of SJR 21. He stated their support for
the concept and the long-range planning process as one method of
bringing municipalities to the table and talking about the long-
term stability of the communities.
Number 235
There being no further testimony on SJR 21, SENATOR TORGERSON asked
for the will of the committee.
SENATOR R. PHILLIPS moved that SJR 21 be passed out of committee
with individual recommendations. SENATOR KELLY objected and stated
he has never voted for a dedicated fund in 18 years and he is not
going to start this year. A roll call was taken with the following
result: Senators Phillips, Hoffman & Torgerson voted "Yea" and
Senator Kelly voted "Nay." The Chairman stated the motion carried.
SSSJR 18 CREATION OF ARCTIC COUNCIL
Number 247
SENATOR TORGERSON brought SSSJR 18 before the committee as the next
order of business.
CHERYL DAVIS, staff to Senator Al Adams who is the prime sponsor of
the resolution, read the following sponsor statement into the
record:
"Senator Adams supports the formation of an Arctic Council. This
Arctic Council would be a permanent, intergovernmental policy
forum. It would involve citizens from the northern region to
discuss issues that affect them directly. The countries that would
participate are: the United States, Denmark, Finland, Iceland,
Norway, Russia, Sweden and Canada. This forum would provide a
broader and coordinated voice in response to critical issues facing
the Arctic countries."
"Over the past few years, there has been a growing awareness of the
needs and the mutual concerns of Arctic countries and their
indigenous people. Organizations have been established to look at
specialized needs affecting the northern countries. The purpose of
the Arctic Council is not to duplicate or replace the specialized
organizations but to serve as an umbrella body. This forum would
ensure greater efficiency and effectiveness by provide focus and
policy direction to existing Arctic related organizations."
"The Arctic Council would provide a mechanism or mandate to address
the full range of Arctic issues. It would be the singular
international entity to direct better coordination and interaction
among the Arctic governments."
"The Arctic Council would operate on a consensus basis. The
relationship between the Arctic Council and other existing
organizations would be defined more precisely as part of the
process of the establishment of the Arctic Council. This forum
would strengthen circumpolar initiatives to contribute to
international cooperation to meet the new challenges of sustainable
development."
"Senator Adams urges your support for this resolution."
Number 280
SENATOR TORGERSON directed attention to his proposed amendment to
SSSJR 18 and asked Mr. Davis if Senator Adams has a position on it.
CHERYL DAVIS responded that Senator Adams does not have a problem
with the proposed changes and believes they will help clarify the
establishment of the council.
Number 285
CHARLES MCKEE, testifying from Anchorage, voiced his opposition to
SSSJR 18.
Number 330
SENATOR R. PHILLIPS moved the following amendment offered by
Senator Torgerson:
Amendment No. 1
Page 1, lines 6 - 7: Delete "political energy and" and insert "a"
Page 1, lines 12 - 14: Delete "Canada, the Clinton administration,
and the administration of the State of Alaska have indicated that
they support creation of the council;"
Page 2, line 5: Following "appropriate," and insert "recommending"
Page 2, line 6: Delete "Arctic-related organizations" and insert
"agencies with authority over Arctic-related issues"
Page 2, line 15 - 16: Delete "the Honorable Strom Thurmond,
President Pro Tempore of the U.S. Senate;"
Hearing no objection to the adoption of Amendment No. 1, SENATOR
TORGERSON stated it was adopted and would be incorporated into a
Community & Regional Affairs CS.
Number 360
SENATOR HOFFMAN moved that CS SSSJR 18(CRA) be passed out of
committee with individual recommendations. SENATOR KELLY objected
and stated he thinks it is reflective of the Northern Forum which
he thinks has been very successful in getting these Arctic
governments together. A roll call vote was taken with the
following result: Senators Phillips, Hoffman & Torgerson voted
"Yea" and Senator Kelly voted "Nay." The Chairman stated the
motion to move the resolution out of committee carried.
SB 124 HUMAN SERVICES COMMUNITY MATCHING GRANTS
Number 370
SENATOR TORGERSON brought SB 124 before the committee as the final
order of business.
TERESA SAGER, staff to Senator Mike Miller, the prime sponsor of SB
124, explained that the legislation would permanently set the local
match rate for the Human Services Community Matching Grant Program.
The local match would be 30 percent and the state portion would be
70 percent.
Ms. Sager said the program, when created a few years ago, was
intended to start out at a 10 percent local match, increase the
following fiscal year to a 30 percent match, and then in the third
and subsequent years the local match would be 50 percent.
Unfortunately, the 50 percent match would become difficult for the
municipalities to meet due to declines in federal funds that they
receive, as well as declines in municipal assistance and revenue
sharing.
Ms. Sager noted that similar legislation passed the Senate and
House last session but was vetoed by the Governor. She also
pointed out that this legislation would bring the Human Services
Matching Grants program in line with other matching grant programs
which are set at 30 percent.
Number 395
SENATOR TORGERSON voiced concern with the Fairbanks North Star
Borough applying for a large share of these grants when according
to a municipal population figure there are only 47,000 in the
municipality instead of the 65,000 figure stated in the definition
of a "second class borough." However, he added that he realizes
they are including the population of the City of Fairbanks
Number 406
CHARLES MCKEE, testified from Anchorage on SB 124, but did not
state a position on the legislation.
Number 440
CHERYL KEEPERS, an employee of the Fairbanks North Star Borough,
stated their population is closer to 82,000 so they do meet the
minimum of 65,000. SENATOR TORGERSON said he made the point that
they are including the City of Fairbanks to reach that 82,000
figure, but the borough itself is at 47,000 and he considers that
double dipping with the program. MS. KEEPERS clarified that the
City of Fairbanks is no longer applying for the grants and FY 94
was the last year they did so.
Number 465
NADINE WINTERS, an employee of the Fairbanks North Star Borough,
stated she was present to respond to questions, and she urged the
passage of SB 124 out of committee.
Number 469
There being no further witnesses to testify on SB 124, SENATOR
TORGERSON asked for the will of the committee.
SENATOR R. PHILLIPS stated he was not in support of SB 124.
SENATOR KELLY stated that although he knows that this would benefit
his community and some of the larger municipalities, it is not a
responsible position for the State of Alaska to be taking when
looking at a $500 million deficit at the state level, so he will
continue to oppose the bill.
Number 484
SENATOR TORGERSON stated that due to the lack of a motion, SB 124
would be held over until the next committee meeting.
There being no further business to come before the committee, the
meeting was adjourned at 2:13 p.m.
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