Legislature(1995 - 1996)
04/24/1995 02:10 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 24, 1995
2:10 p.m.
TAPES
SFC-95, #53, Side 1 (000-end)
SFC-95, #53, Side 2 (575-end)
SFC-95, #55, Side 1 (000-end)
SFC-95, #55, Side 2 (575-end)
CALL TO ORDER
Senator Rick Halford, Co-chairman, convened the meeting at
approximately 2:10 p.m.
PRESENT
In addition to Co-chairman Halford, Senators Phillips,
Rieger, Sharp, and Zharoff were present. Co-chairman Frank
and Senator Donley arrived soon after the meeting began.
ALSO ATTENDING: Nancy Slagle, Director of Budget Review,
Office of Management and Budget; Ken Bischoff, Director,
Division of Administrative Services, Dept. of Public Safety;
Bob Stalnaker, Director, Division of Retirement and
Benefits, Dept. of Administration; Mark Badger, Director,
Division of Information Services, Dept. of Administration;
Douglas Samimi-Moore, Executive Director, Public
Broadcasting Commission, Dept. of Administration; Peter
Bushre, Chief Financial Officer, Alaska Permanent Fund
Corporation; Karen Rehfeld, Director, Administrative
Services, Dept. of Education; Karen Crane, Director,
Libraries, Archives, and Museums, Dept. of Education; John
Steinman, Architect, Dept. of Education; Janet Clarke,
Director, Division of Administrative Services, Dept. of
Health and Social Services; Guy Bell, Director, Division of
Administrative Services, Dept. of Commerce and Economic
Development; Jeff Morrison, Director, Administrative and
Support Services, Dept. of Military & Veterans Affairs; Nico
Bus, Acting Director, Division of Support Services; Dept. of
Natural Resources; Kevin Brooks, Director, Division of
Administrative Services; Dept. of Fish and Game; Janet
Kowalski, Acting Director of Planning, Dept. of
Transportation and Public Facilities; Greg Capito, Section
Chief, Village Safe Water Program, Dept. of Environmental
Conservation; Mike Burns, Section Chief, Municipal Grants,
Dept. of Environmental Conservation; Lynn Kent, Acting
Director, Government Preparedness and Response Program,
Dept. of Environmental Conservation; Remond Henderson,
Director, Division of Administrative Services, Dept. of
Community and Regional Affairs; Bob Cole, Director, Division
of Administrative Services, Dept. of Corrections; Wendy
Redman, Vice President for University Relations, University
of Alaska; Art Snowden, Administrative Director, Alaska
Court System; Mike Greany, Director, Legislative Finance
Division; and aides to committee members and other members
of the legislature.
SUMMARY INFORMATION
SB 136 - APPROP: FY 96 CAPITAL PROJECTS BUDGET
An overview of the Governor's capital budget was
presented by Nancy Slagle. Discussion was had
with department representatives listed above. The
bill was held in committee for further review.
SENATE BILL NO. 136
An Act making appropriations for capital project
matching grant funds and to capitalize funds; making,
amending, and repealing capital appropriations; and
providing for an effective date.
HOUSE BILL NO. 268
An Act making appropriations for capital project
matching grant funds and to capitalize funds; making,
amending, and repealing capital appropriations; and
providing for an effective date.
[Committee discussion focused on SB 136. HB 268 is cross
referenced since it ultimately included capital,
reappropriation, supplemental and school funding.]
Upon convening the meeting, Co-chairman Halford announced
that staff from the Office of Management and Budget would
provide an overview of the capital budget. NANCY SLAGLE,
Director of Budget Review, Office of Management and Budget,
came before committee. Prior to commencing her review, she
distributed handouts (copies are appended to these minutes)
relating to telecommunication requests and a summary of
capital projects relating to the criminal justice system.
She then commenced the following sectional review:
Sec. 1 provides for the administration to come before the
Legislative Budget and Audit Committee for additional
general fund program receipts or other funding for approval
of projects under AS 37.07.080(h). In response to a
question from Senator Randy Phillips, Mrs. Slagle
acknowledged that language within Sec. 1 has not always been
incorporated within the budget. It merely clarifies the
fact that the administration has the ability to "come
forward . . . for those additional program receipts."
Secs. 2 and 3 provide $20 million from the general fund to
the matching grant fund. The back portion of the bill then
appropriates that funding to communities for specific
projects. Mrs. Slagle noted that projects in the back
section may not equal the $20 million since interest may be
included. Balances for individual communities might also
include moneys appropriated from prior years.
Secs. 4 and 5 deal specifically with appropriation of
interest accrued on allocations for matching grant
communities and make that available to individual accounts.
Secs. 6 and 7 deal with review by the Dept. of
Transportation and Public Facilities to determine expected
balances in highways and aviation for uncommitted match
moneys. Language is the same as last year whereby funds
were readjusted to match federal dollars. The department
expects $1.5 million in highway funds and $600.0 in aviation
moneys that may be used toward the federal match.
Discussion followed between Mrs. Slagle and Senator Phillips
regarding use of planning moneys to fund radio spots against
the use of studded tires.
Sec. 8 contains a $1 million appropriation for Alaska Marine
Highway System improvements and overhaul. Moneys stem from
the vessel replacement fund. The appropriation is needed
for upkeep and repairs to keep the system operational. An
additional $3 million from the general fund is contained in
the back section of the budget to assist in this maintenance
effort.
Sec. 9 provides funding for criminal justice information
systems, portions of which are located in five departments.
Mrs. Slagle referenced work by the Criminal Justice
Information System working group and the subsequent report.
Part of the report focuses on need for communication
capability between departments transmitting information back
and forth.
KEN BISCHOFF, Director, Division of Administrative Services,
Dept. of Public Safety, came before committee to speak to
computer hardware and software needs within the five
departments. He explained that the Dept. of Public Safety
is requesting funds to repair the data center for the
fingerprint system and to plan for system replacement. The
present system was declared obsolete several years ago. He
then followed with brief comments on computer needs within
the remaining departments.
Sec. 10 appropriates $100.0 from the general fund to the
state land reforestation fund within the Dept. of Natural
Resources. The state may place 25% of timber sale and
stumpage revenues into reforestation. Only $600.0 has been
paid in the past, although the state has benefited from over
$5 million in revenues from timber. Mrs. Slagle added that
the appropriation represents a continuation of what "had
been approved in RPLs by LB&A, this year."
Sec. 11 repeals the appropriation for the Mt. Roberts Marina
and reappropriates $1.8 million for the a new University of
Alaska, Southeast, residence hall. Moneys will be matched
with student fees.
An additional $600.0 will flow to the Dept. of Environmental
Conservation for a Back Loop water and sewer project, a
portion of which is connected to the proposed residence hall
at UAS.
Approximately $400.0 will flow to the statewide satellite
communications project within the Dept. of Administration.
This appropriation, plus $300.0 in general funds in the back
portion, will match $700.0 in private donations, plus $1.4
million in federal funds, to purchase and install encoder
and decoder equipment to convert signals from analog to
digital.
Sec. 12 contains repeal of the $9 million, plus interest,
for railroad cars for the Wishbone Hill project. The total
is approximately $11,538.0 as of the end of March. Senator
Sharp questioned the inconsistency between Secs. 11 and 12.
The $3 million funded for the harbor was not discretionary
capital, but it appears to be used in that manner in this
budget. The $9 million for Wishbone Hill came from the
railbelt energy fund. It appears as though it is returning
to the general fund. Mrs. Slagle advised that the
appropriation originally flowed from the general fund to the
railbelt energy fund. She concurred that the capital budget
proposes to return it to the general fund. Senator Phillips
also noted the inconsistency. He then suggested that Secs.
11 and 12 would be more appropriate to a reappropriation
bill. Mrs. Slagle suggested that the capital budget could
include both capital and reappropriation items.
In response to a question from Senator Rieger concerning why
Sec. 11 contains a reappropriation while Sec. 12 contains a
repeal, Mrs. Slagle advised that both Wishbone Hill and Mt.
Roberts Marina were projects requested by the Governor. The
Governor wishes a majority of the Mt. Roberts funding to
"stay in this area."
Directing attention to the back section of the budget, Mrs.
Slagle spoke to the follow projects:
Office of the Governor
The $1 million for the Americans with Disabilities Act
reflects funds used to deal with access problems in state
facilities. Over the last two years, the state has
appropriated $2 million to this continuing effort to bring
state facilities within ADA compliance. In response to a
question from Senator Phillips, Mrs. Slagle advised that the
foregoing reflects an unfunded mandate by the federal
government.
Dept. of Administration
The $364.0 for personnel records automation would provide
hardware and software to store applications for electronic
routing. The $325.0 for overhaul of the state personnel
management system will cover consulting services to review
the system and report findings. When Governor Knowles took
office, he requested statewide input on areas of concern.
The personnel system was the "big winner" in terms of
problems. The $1,446.0 for statewide information services
equipment replacement reflects other funds from the internal
service fund. It provides for replacement or refurbishment
of critical equipment. The fund consists of money paid by
different state agencies in chargebacks. A portion of
chargeback moneys is used to support and replace equipment.
The $457.5 for the statewide consolidated data network will
provide for purchase and installation of office routers and
converters to 22 state offices and communities. It will
enable agency communication in local and wide-area networks.
The $997.0 in other funds for retirement and benefits
electronic imaging and automation reflects retirement funds.
Moneys will cover consulting services, equipment purchase
and installation, and software for retirement and benefit
records. Senator Rieger noted previous purchase of scanners
for other departments and asked if they could be utilized
for this effort as well.
BOB STALNAKER, Director, Division of Retirement and
Benefits, Dept. of Administration, came before committee.
He attested to present updatable microfiche storage of over
100,000 retirement accounts. Service for the present AB
Dick system will cease the beginning of 1997. Optical
scanning is more efficient. Further discussion of use of
optical scanning followed. Mr. Stalnaker advised that the
number of documents processed each day would more than cover
full-time use of a scanner. Further, software application
will be unique to the retirement system. Predominant users
of the system will be over 200 different employers.
The $2.4 million for the statewide satellite communication
project reflects remaining moneys needed to provide
digitization. MARK BADGER, Director, Division of
Information Services, Dept. of Administration, explained
that the change to digitization would create economies on
the RATNET system and lower the cost to the transponder, in
the future. "It would take it from approximately $1 million
down to a quarter of a million dollars, in rough terms."
This phase of the project would extend digitization to
RATNET and include one of the public stations. In response
to a question from Co-chairman Halford, Mrs. Slagle
explained that a total of $700.0 (the $300.0 in the back
section and $400.0 in the front section) in general funds is
needed to match $700.0 in private contributions plus $1.4
million in federal grant moneys. Discussion followed
regarding ownership of the digitized signal.
Mrs. Slagle advised that the $140.0 for the KOAHNIC
Broadcasting Matching Grant would provide transmission and
studio facilities for the first Native American radio
station in the United States. Funding would be matched with
over $50.0 of private contributions plus $236.0 in federal
funds. DOUGLAS SAMIMI-MOORE, Executive Director, Public
Broadcasting Commission, Dept. of Administration, came
before committee in response to questions from members. He
acknowledged that the station could compete for public
broadcasting commission grants along with other stations
within the state. Mrs. Slagle stressed that the proposed
grant is for facilities rather than operating costs. Mr.
Moore concurred.
Discussion of capital and operating grants made by the
commission followed. Senator Donley asked why an exclusive
grant should be made for this particular purpose. Mrs.
Slagle said that past capital budgets have included requests
for "other broadcasting stations." The Governor feels that
the proposed Native station would fulfill a need for other
types of public affairs information.
Dept. of Law
Mrs. Slagle noted that, as a result of a recent court
decision, the $665.0 set forth for federal
litigation/endangered species act should be amended to
$1,091.0. The appropriation deals with federal and state
disputes. Senator Sharp suggested the request appears
strange for inclusion in the capital budget. Mrs. Slagle
advised of inclusion the last few years because funding
involves projects rather than continuing operating costs.
Backup information speaks to the different areas of
litigation involved.
The $200.0 for computer replacement would cover 71 obsolete
personal computers. Approximately $95.8 would apply to
prosecution and $104.2 to legal services.
Dept. of Revenue
Mrs. Slagle referenced Alaska Housing Finance Corporation
projects totaling $76 million. Co-chairman Halford
announced that the committee would review individual AHFC
projects with the executive director at a subsequent
meeting.
End: SFC-95, #53, Side 1
Begin: SFC-95, #53, Side 2
Mrs. Slagle asked that the $117.3 for the permanent fund
dividend division integrated voice response system be
deleted from the capital budget.
The $519.4 for the Alaska Permanent fund Corporation
investment system upgrade would purchase hardware, software,
and programming services to replace personal computers and
provide a client/server platform. Advantages include real
time data, consolidation of separate and partially redundant
data feeds, use of analytical software for private
investment managers, etc. The entire cost of the project
can be recovered through improvements in annual investment
performance. PETER BUSHRE, Chief Financial Officer, Alaska
Permanent Fund Corporation, Dept. of Revenue, came before
committee in response to questions from members. He
explained that money for the project would come from
permanent fund earnings. Senator Rieger requested greater
detail on hardware and software to be provided. Mr. Bushre
agreed to provide the information.
Dept. of Education
The $214.9 for Mt. Edgecumbe Boarding School renovations and
equipment will address health and safety needs at the school
and provide improvements to bath and shower facilities. It
will also replace single pane dormitory windows that are
over 40 years old.
The $383.0 for the statewide library electronic doorway
access (SLED) will provide public access to government
information. SLED is a statewide network that connects
libraries and individuals to the libraries. It will support
telecommunication costs, hardware and software upgrades, and
Internet charges. KAREN CRANE, Director, Division of
Libraries, Archives, and Museums, Dept. of Education,
explained that while the request is from the state library,
it would provide access to the general public. Statistics
for the last month of service evidence 42,000 connections.
SLED was funded as a one-year demonstration project with
federal library services and Construction Act Title III
funds.
The $140.0 for public library construction grants reflects
annual grants from the federal government made available to
the state to disperse to libraries. Local libraries must
match federal pass through at a 45/55, federal/local match.
There is no state match requirement.
The $1.4 million in corporate receipts for postsecondary
education commission loan servicing system enhancements
would continue a $250.0 effort approved by the Legislative
Budget and Audit Committee. Enhancements will result in
operational savings and increased productivity. Funding is
based on recommendations from the Peat, Marwick study.
Mrs. Slagle explained that the next seven projects reflect
the school maintenance grant program. Cites include
Golovin, White Mountain, Elim, North Slope Borough District-
wide Fuel Tank Upgrade, Teller, and Klawock. The
approximate $14 million deals with major maintenance issues.
It does not take into account new construction. Senator
Sharp asked if the state normally passes this type of
funding to organized boroughs. He noted that with the
exception of the North Slope Borough project, all others
appear to apply to REAAs. Mrs. Slagle noted that the North
Slope Borough School District is seeking reimbursement for
tank upgrade. The district is allowed to request
reimbursement under this program for up to three years.
In response to further questions, Mrs. Slagle advised that
funding was provided based on the Dept. of Education
priority list. JOHN STEINMAN, Architect, Dept. of
Education, came before committee. He advised of 169
projects for which grants were requested. An evaluation
process ranks requests. The North Slope project was fourth
on the maintenance list. Senator Sharp advised of his
understanding that department prioritization takes into
account ability to pay. He then asked how that would come
into play in the instance of the North Slope Borough School
District. He remarked that inclusion of the district caused
him to doubt the reliability of the prioritization process.
Mr. Steinman explained that the North Slope Borough
requested $12 million for upgrade of the bulk fuel tanks at
the school. The appropriation recommended by the Governor
is $1 million. Mrs. Slagle advised that she would provide
additional information concerning how priorities are
established.
Senator Donley expressed displeasure over failure of the
department to classify those attending school in portable
classrooms in Anchorage as unhoused students.
Dept. of Health and Social Services
The $490.0 for the adoption and foster care analysis
reporting system is the state's general fund share to match
$1,470.0 in federal moneys. Funding would cover the second
year of a two-year project to upgrade the present system to
include new mandatory data elements required by the federal
government. Senator Rieger asked if the state could count
on the match ratio from the federal government. Mrs. Slagle
voiced her understanding that funding is set through the end
of the federal fiscal year. The percentage of match varies
by program, but funds have been identified as available for
Alaska.
The $1.5 million for statewide renovation, repair and
equipment would combine with $299.7 in federal moneys to be
used at the state's 33 health and social services facilities
and specialized lease facilities. This request represents
approximately one-half of what is needed, based on the age
and condition of the facilities.
JANET CLARKE, Director, Division of Administrative Services,
Dept. of Health and Social Services, came before committee
to respond to questions from members. She said that it is
unlikely the state will be able to garner the entire $299.7,
unless something changes. The federal government is not
generous with funds for capital matching purposes. While
the state can acquire federal funds for public health
centers, public assistance, and medical assistance, the bulk
of Alaska's facilities and family/youth services do not
qualify for federal matching funds. Much depends upon the
project. The foregoing reflects an estimate of what might
be forthcoming. Discussion of the ratio of state to federal
dollars followed.
In response to a question from Senator Phillips, Ms. Clarke
said that the department oversees maintenance and operations
of its twenty-four-hour facilities. For major renovation or
new construction, the Dept. of Transportation and Public
Facilities becomes involved.
The $250.0 for the Alaska family practice residency program
renovation and equipment will allow for a collaborative
clinic to serve the medically underserved in Anchorage and
provide a residency training program for eight residents in
rural Alaska. Agencies involved include Providence
Hospital, Anchorage Neighborhood Health Clinic, UAA, local
physicians, Y-K Health Corporation, Bartlett Memorial
Hospital, and the University of Washington. The project
will renovate an existing building donated by Providence
Hospital.
Senator Zharoff spoke in support of need to balance
educational and health care needs statewide. He referenced
earlier comments regarding the prioritization process within
the Dept. of Education and noted that educational needs are
greater in rural Alaska while health care concerns may be
greater in urban locations. There is thus a balance
overall.
The $500.0 for the Yukon-Kuskokwim public health facility
design would fund design of a combined facility for state
public health nurses in Bethel and the Yukon-Kuskokwim
Health Corporation. The facility would serve 23 nurses and
consolidate Y-K services now in eight different locations.
Combination will save approximately $2 million in
construction costs and be 10 to 15% less costly to maintain.
Of the $400.0 for departmentwide computer aided productivity
improvements, $200.0 is general fund and $200.0 is federal.
This request is similar to need within the Dept. of Law to
replace "dying computers." Senator Rieger requested a
listing of what the funding would purchase.
The $807.0 for Medicaid management information system
procurement is the general fund portion of a $8,069,600
project, 90% of which is federal funded. The present
Medicaid management system is a privatized system. All
services are provided under contract with a firm in
Virginia. There is no state mainframe support. The federal
government requires that states reprocure their systems
every eight years. Alaska has receive two extensions.
Senator Rieger voiced his understanding that the state would
reprocure using a private vendor. Mrs. Slagle responded
affirmatively, advising of her understanding that the
department has been satisfied with the arrangement. The
problem is ability to get additional information from the
system regarding where funds have been expended. The
reporting portion of the system needs improvement. The
claims processing portion is adequate. Ms. Clarke added
that while the main computer is in Virginia, the firm has an
operation in Anchorage for processing claims and providing
information to providers.
The requested $807.0 is the direct match needed to capture
the federal funds. Ms. Clarke referenced the department's
family/youth services adoption system and the Medicaid
system. She noted an opportunity to get enhanced federal
funding for the projects and voiced concern that
Congressional changes and block Medicaid grants to the state
will not provide "that kind of enhanced funding."
The $382.0 for the eligibility information system would
provide for an enhancement/electronic benefit transfer
feasibility study. The project totals $1,050,000. The
majority, $668.0, is federal. The remainder is general
funds. The request would fund eight employees and a study
to determine whether electronic benefits can be used in
Alaska for food stamp and women, infants, and children
programs. Use of the electronic system would alleviate
fraud.
Dept. of Commerce and Economic Development
The $400.0 for economic development matching grants is an
annual request. It provides state funds to nonprofit
corporations, cities, boroughs, and other eligible
applicants to assist in matching economic development
project grants. The primary purpose is either construction
of an economic development facility or technical assistance
in support of an economic development activity. Senator
Phillips asked if science and technology funds could be used
instead. GUY BELL, Director, Administrative Services, Dept.
of Commerce and Economic Development, explained that the
funds are not related to development of new technology and
may not fit within statutory authority of the science and
technology foundation. These projects relate to port
development, fishery development, etc.
Senator Donley asked if funding could be used to replace
reductions in ARDORS. Mr Bell said that was not the intent
of the request. He acknowledged that grants could be used
to match economic development projects. The primary intent
is that funds be used toward capital project development.
Moneys have been, in the past, used for "some operating
types of entities." Mr. Bell cited conferences and
feasibility studies as an example.
The $436.0 for Alaska small business assistance and
development provides funding for the University of Alaska
small business development center and procurement and
technical assistance center. The small business center at
the University is a cooperative venture of the U.S. Small
Business Administration, the University, and the state
division of economic development. The emphasis is on
counseling for small businesses. The purpose of the
procurement technical assistance center is to stimulate
competition for Department of Defense and other federal
contracts by assisting businesses in entering the
contracting market.
In response to a question from Senator Sharp, Mr. Bell said
that funding is passed directly to the University which
administers both programs. State funding matches equivalent
amounts of federal moneys used for the same purpose.
Senator Sharp asked for a list of last year's recipients of
the funding. Mr. Bell noted that capital backup material
contains information for the past two years.
The $350.0 in general fund program receipts for data
processing system enhancement, phase II, is the second and
final phase of a multi-year project to replace the Wang
computer system with new data base hardware and software.
Agencies involved are banking, securities, and corporations;
insurance; and occupational licensing.
Dept. of Military and Veterans Affairs
The $500.0 for deferred maintenance statewide is a small
portion of deferred costs needed to deal with repairs in
state facilities in Anchorage, Juneau, Wasilla, Kenai, etc.
The $500.0 in general funds and $6,380,000 in federal moneys
total $6,880,000 for design and construction of a new army
aviation operating hangar in Bethel. The hangar will
accommodate new aircraft assigned to the Bethel area. The
existing hanger lacks sufficient space to house the
aircraft. Senator Donley asked if it would become a state
responsibility to maintain the new hangar. Mrs. Slagle
responded affirmatively. JEFF MORRISON, Director,
Administrative and Support Services, Dept. of Military and
Veterans Affairs, advised that there will be no net increase
in operating costs. Although the facility will be larger,
it will be designed and constructed to be more energy
efficient. The old facility will be surplused.
Dept. of Natural Resources
The $300.0 for childs pad contaminated site assessment and
remediation would flow from the oil and hazardous response
fund. It would fund continuing cleanup of this site in the
Prudhoe Bay oil field complex. The site was abandoned by
the former lessee with a structure and debris left on site.
Legal proceedings to recover the cost of cleanup have not
been possible due to the bankruptcy of the lessee. In
response to a subsequent question from Senator Sharp
regarding total cleanup costs, Mrs. Slagle advised of a
$300.0 authorization in "92" and $290.0 in "93."
The $250.0 for forward Alaska pad contaminated site
assessment and remediation also flows from the oil and
hazardous response fund. This site is within the Prudhoe
Bay oil field, Deadhorse lease tracts 75 and 76. It is
similar to the above cleanup at childs pad. Legal
proceedings are in pursuit of the lessee. Cleanup must
commence to prevent pollution of the adjacent Deadhorse
water reservoir.
The $538.0 for the mental health trust lands reconstitution
implementation project funds the first of two final steps of
implementation of mental health trust lands reconstitution.
Approximately 4,700 parcels of land identified on the
April, 1994, land list have been designated as mental health
lands. Funding will provide staff to continue title
research and convey parcels.
The $100.0 for reforestation site preparation and replanting
is the $100.0 set forth in the front section of the budget.
This appropriation takes the $100.0 from the fund and
provides it to the department for this activity.
The $300.0 for phase V of the land status geographic
information system would continue funding to automate the
state's graphic land record. The state currently maintains
over 16,000 maps and manually automated formats. This
project completes conversion of manual maps and reduces need
to maintain the two systems.
The $125.0 for real estate recordings, preservation, and
replacement would provide for critical preservation of
historical documents.
End: SFC-95, #53, Side 2
Begin: SFC-95, #55, Side 1
NICO BUS, Acting Director, Division of Support Services,
Dept. of Natural Resources, explained that most of the
records are so old they must be handled carefully. They
cannot go through an imaging process. The proposed project
allows for the first phase of photographic preservation.
Many of the records are handwritten and difficult to read
when xeroxed. Once the records have been filmed, the
originals will be placed in environmentally controlled
archives.
The $100.0 for the oil and gas basin analysis and assessment
program will implement the terms of the recently negotiated
North Slope settlement agreement. The new system will
replace inadequate accounting controls. Efficiencies from
automation will provide more timely transfer of royalty
distributions, including allocations to the permanent fund,
and improve state ability to provide independent royalty
determinations.
Of the $325.9 for the forest health initiative, $100.0
represents general funds. The remainder is comprised of
federal moneys. Funding would provide for a two-year
program to survey spruce bark beetle invested areas.
The $100.0 for forest inventory and mapping will fund phase
III of the Tanana Valley forest inventory by ground level
sampling of 115 plots. The inventory will be used in
conjunction with aerial mapping information to develop data
that will support sustained-yield management.
Of the $300.0 for stream gaging network and collection of
streamflow data, half is general and half is federal funds.
Data will provide accurate information needed for design
criteria for roads, highways, bridges, dams, hydroelectric
projects, mining projects, etc. Matching funding will allow
the first of a six-year project to go forward.
The $640.0 federal allocation for national historic
preservation fund federal grants will provide 60/40 matching
grants to state and local governments for planning,
surveying of archeological sites, and maintenance of
historic sites. In response to a question from Senator
Phillips regarding how projects are selected, NICO BUS
explained that communities and projects apply. Review is
then conducted by the historical commission and the land
conservation board.
Federal funds totaling $500.0 for land and water
conservation fund federal grants will provide for 50/50
grants to state and local communities for planning,
acquisition, and development of outdoor recreational
facilities.
Discussion followed regarding the difference between land
and water conservation grants and funding relating to stream
gaging and collection of streamflow data.
The $150.0 for the oil and gas royalty accounting, software
and mainframe interface would connect the oil and gas
royalty accounting system with the mainframe. It will allow
for exchange of information between DNR's land
administration system, revenue billing system, and oil and
gas accounting system. It will aid in providing more
efficient auditing and collection of oil and gas royalties.
The $100.0 for the geophysical/geological mineral inventory
reflects the fifth year of an eight-year project to identify
and delineate mineral zones with major economic value on
state lands.
The $100.0 for oil and gas lease sales best interest
findings will allow the division to contract for private
consultants to write major portions of required best
interest findings for areas subject to exploration leasing.
These tracts will be far from known areas of oil and gas
reserves.
The $200.0 for repair and expansion of park recreation and
tourism facilities will improve "a few" park facilities that
have deteriorated due to years of deferred maintenance.
Mrs. Slagle presented a brief listing of impacted parks.
Dept. of Fish and Game
The $4 million for the sport fish and wildlife conservation
facility addition at Fairbanks reflects 50/50 fish and game
funds and federal receipts. It would provide for new
construction and renovation of a 10,000-square-foot addition
to an existing building housing department staff at the
Fairbanks regional office located at the migratory waterfowl
refuge. A public service interpretative center, office
space for 20 employees, and renovation of existing offices
(to allow subsistence employees now in leased space to move
back in) will be included in the cost.
The $500.0 in general funds to replace and enhance salmon
escapement sonar systems relates to silt-laden rivers where
visual counting cannot be done. Current sonar systems date
from the 1970s and are no longer made. Mrs. Slagle
presented a brief listing of rivers scheduled to receive the
new equipment. Two full-time positions will be needed to
install the new systems, train existing staff, and document
the accuracy of each installation.
The $475.0 for Rabbit Creek Rifle Range improvements
consists of $356.0 in federal moneys and $119.0 in fish and
game funds. Phase I will pave a section of the parking lot,
pave a lane from the shooting benches to the restrooms,
build benches and shooting lanes for handicapped shooters,
build a warm up and break room, build and improve restrooms,
etc. Discussion followed regarding operating costs of the
rifle range. Mrs. Slagle advised that a majority of the
funding would construct a classroom to accommodate approxi-
mately 40 people.
The $806.0 for statewide facility maintenance and repair
projects reflects deferred maintenance on offices, bunk
houses, warehouses, cabins, and other structures used by the
department. The department has facilities in 40 locations
statewide.
The $400.0 for the Snettisham Hatchery transfer allows for
transfer to a local regional nonprofit aquaculture
association and provides support for the first year of
operation. In response to a question from Senator Zharoff,
KEVIN BROOKS, Director, Division of Administrative Services,
Dept. of Fish and Game, explained that the hatchery was
deleted from the department budget in FY 95.
The $300.0 for Klawock Fish Hatchery repairs and renovation
is needed to safely operate the hatchery and meet OSHA
standards. Mrs. Slagle presented a brief listing of needed
repairs.
The $194.0 for fisheries resource assessment vessel
maintenance will provide general maintenance for vessels
used in fisheries assessment programs. Mrs. Slagle provided
a list of specific vessels.
The $175.0 for Alaska Peninsula chum salmon stock assessment
funds the third year of data gathering to provide
information on the Western Gulf of Alaska fishery to
identify and quantify chum salmon stocks.
The $200.0 to identify salmon stocks at risk of endangered
species act listings seeks to protect and rehabilitate
stocks before the state is force by the courts to "take
economically disruptive actions." It supports the regular
fishery by funding support needed to respond to litigation
on risks from inappropriate application of the endangered
species act. Discussion of application of the endangered
species act followed between Senator Rieger and Kevin
Brooks.
Senator Sharp asked if moneys could be used to fund
personnel involved in North Pacific fisheries and
international salmon forums, which were cut in the Senate
operating budget. Mr. Brooks responded that the project
involves biologists who conduct scientific analysis
associated with the listing. It responds to a threat by
federal and other interests to limit Alaska's catch.
The $300.0 to assert and protect the state's right to manage
and utilize resources is comprised of $100.0 in general
funds and $200.0 from the fish and game fund. Funding will
continue coordination efforts to protect state fish and
wildlife management authority on state and private lands and
waters. It will also provide support for the citizens'
advisory committee dealing with the endangered species act
and the Magnusson Act and advocate the state's position in
national and international forums. Kevin Books added that
the fish and game fund portion would be used to support the
ANILCA effort. Senator Sharp voiced his understanding that
use of fish and game fund moneys was restricted to sport
hunting and fishing. He questioned whether they could
properly be applied to ANILCA.
The $150.0 for Bering Sea crab survey equipment purchase
would survey king and tanner crab available for harvest in
the Bering Sea. The population is currently assessed using
the number of crab taken as a by-catch in the National
Marine Fisheries survey on ground fish. Better data is
needed to manage the fishery. Mr. Brooks explained that the
project reflects the capital component of an operating
budget initiative. It includes the purchase of pots with
which to conduct the survey. He acknowledged that the
operating portion was not included in the Senate budget.
The $850.0 for Kenai River salmon habitat protection and
restoration reflects federal funds for activities on one of
the state's premier king salmon fishing rivers. Part of the
$1 million from the National Marine Fisheries Service
involves a collaborative effort with the Kenai Borough.
The $1.6 million for public access development is comprised
of $1.2 million in federal funds and $400.0 in fish and game
funds to be used to construct boating access facilities
statewide. Co-chairman Halford requested a list of proposed
projects. Mr. Brooks agreed to provide the information.
Dept. of Public Safety
The $500.0 for fish and wildlife protection aircraft
equipment/overhaul/repairs will replace worn out and
obsolete equipment and effect overhaul and repairs, per the
annual maintenance schedule, for 44 aircraft. Co-chairman
Halford asked for a list of the aircraft.
The $500.0 for fish and wildlife protection vessel
repair/overhaul/equipment will apply to 4 major vessels and
12 other enforcement vessels over 32 feet long.
The $400.0 for motor vehicle license
plates/manuals/equipment reflects an annual appropriation
for items needed at motor vehicle licensing and registration
offices.
The $250.0 for trooper replacement equipment will be used to
replace radar equipment and portable radios beyond
economical repair by Dept. of Administration. In response
to a question from Senator Phillips, KEN BISCHOFF, Director,
Division of Administrative Services, Dept. of Public Safety,
came before committee. He explained that purchase would be
arranged through the division of telecommunications within
the Dept. of Administration.
The $50.0 for the council on domestic violence and sexual
assault computer info system will improve state access to
domestic violence and sexual assault information by
assessing data processing needs, redesigning forms and
software, and improving quality control, timeliness, and
access to demographic data collected from 21 programs.
The $41.6 for civil air patrol Merril Field roof repair will
replace a defective hangar roof at Merril Field. Co-
chairman Halford voiced his understanding that the request
was earlier made in the supplemental bill. Mrs. Slagle
concurred. Senator Rieger acknowledged his recommendation
that consideration be deferred to the capital budget since
it would be cheaper to conduct reconstruction during the
summer.
The $45.0 for North Slope Borough Jail, improve emergency
access, was also requested in the supplemental. Funding
would install electronic locks to improve emergency exits in
the event of fire. The Barrow jail is a wooden facility
with cells on the second floor. Co-chairman Halford asked
if the facility is a contract jail. Mrs. Slagle responded
affirmatively, advising that capital funding for the jails
is provided if it involves health and safety projects
required to keep the facility open. The Barrow jail is of
high concern to the fire marshal.
Dept. of Transportation and Public Facilities
Mrs. Slagle noted the large number of projects and asked if
the committee wished to proceed through each one
individually. She said she could provide information on the
interrelationship between the twenty-year statewide
transportation plan, the statutory six-year needs list, and
the three-year state transportation improvement program.
Federal projects listed in the capital budget are based on
the state transportation improvement program (STIP).
Senator Phillips inquired concerning the process used to
select projects. JANET KOWALSKI, Acting Director of
Planning, Dept. of Transportation and Public Facilities,
came before committee. She pointed to federal surface
transportation and aviation program projects (pages 15
through 30) totaling in excess of $26 million in general
fund and state match. For those projects the state is
seeking authorization to expend federal moneys. Actual
general fund portions of the department capital budget are
"fairly small" by comparison. Co-chairman Halford asked
that department staff first speak to general funds.
Directing attention to page 15, Ms. Kowalski said that of
the $63.4 million in statewide programs, $37.2 is general
fund. The remaining $26.2 million flows from the highway
working capital fund and CIP receipts.
The $500.0 for highways and aviation, non-routine
maintenance and emergency repairs, reflects general fund
moneys which are not matched for any federal project.
The $250.0 for ports and harbors non-routine maintenance and
emergency repairs is also general fund which does not match
a federal project.
The $750.0 for facilities energy and code upgrade, non-
routine maintenance and emergency repairs, is also general
fund.
The $11.8 million for state equipment fleet
replacement/refurbishment/capitalization program is from the
highway working capital fund.
The $4 million for deferred maintenance represents general
funds that will be applied statewide to cover items for
which federal moneys cannot be used. Restrictions on
federal funds for maintenance are extensive. Only a small
part of interstate maintenance is available to Alaska.
Buildings and facilities are ineligible.
The $1.5 million under cost allocation plans is CIP
receipts. This is a program whereby the department captures
funds for maintenance of the state equipment fleet. When
the department allocates a portion of equipment time to a
project, it charges the project, and returns CIP funds to
maintenance of the equipment fleet. Ms. Kowalski reiterated
that pure maintenance is not eligible for federal funds.
Of the $940.0 in federal transit administration grants, only
$20.0 is the general fund match for $920.0 in federal
dollars. Ms. Kowalski agreed to provide a list of the small
grants flowing to local governments and social service
agencies for transit activities.
The $250.0 in federal railroad assistance is federal money
flowing primarily to the Alaska Railroad Corporation.
The list of $26.1 million in general fund match for federal-
aid highway projects commences on page 16 and continues
through page 30.
Ms. Kowalski referenced the initial $7.3 million in state
match for federal-aid aviation projects and noted that the
state has amended the request to $4.4 million, based on the
notice of award of federal aviation discretionary moneys.
The department seeks $4.4 million in general fund match and
authority to spend $1.8 million from the international
airport revenue fund.
The $100.0 originally requested for the corps of engineers
program has been amended to $1.2 million in general funds to
capture corps of engineers programs for local port and
harbor projects across the state.
The $5 million for statewide emergency projects and the $5
million for statewide funding contingency are both general
fund. Responding to an inquiry by Co-chairman Halford
concerning the statewide funding contingency, Ms. Kowalski
explained that it allows the department to fund projects for
which it does not have immediate authorization or funding.
As examples, she cited repair of bridges and roads washed
out by rivers, dock collapses, flooding, etc. The
department has never had excess moneys in the contingency
fund at the end of the year. Responsibility for thousands
and thousands of miles of runways and roads as well as
numerous facilities consumes the funding. The $5 million
does not go far. Ms. Kowalski agreed to provide information
on expenditures from the fund for FY 94.
Senator Rieger asked if the new Seward Highway construction
would occur this year. Ms. Kowalski responded
affirmatively, advising that $2.5 million for reconstruction
is included in the 1995 federally approved statewide
improvement program.
End: SFC-95, #55, Side 1
Begin: SFC-95, #55, Side 2
Senator Phillips asked if the $6.5 million for Glenn Highway
rehabilitation includes the Caribou Creek Bridge. Ms.
Kowalski advised that it is not included at this time. The
department has identified Caribou Creek as a high priority
project, and the new commissioner has included it in the
planning process. The project is not presently in the
federally approved STIP. In order to consider it, the
department must go through the federally required public
participation process. That is what the department is
proposing to do.
In response to a question from Co-chairman Halford, Ms.
Kowalski advised that allocation amounts shown for
particular projects reflect federal moneys. The $26.1
million in general funds is shown as a lump-sum match.
Addition of the state match to federal funds would increase
project allocations by approximately 10%.
Co-chairman Halford directed that review proceed to Non-
Federal Surface Transportation and Aviation at page 30, line
15. Ms. Kowalski advised that funding consists of $3
million in general funds and $9.2 million in international
airport revenue funds. The first project, Alaska Marine
Highway System improvements/overhaul consumes the $3 million
in general funds. Remaining projects are Anchorage and
Fairbanks international airport projects. Funding flows
from the international airport revenue fund.
Senator Phillips asked what communities would be impacted by
the marine highway project. Ms. Kowalski explained that
funding relates to annual overhaul and improvements
involving drydock services, engines, deck work, passenger
services, and a couple of minor shore facility renovations
(painting and roof repair).
Ms. Kowalski next spoke to miscellaneous projects listed at
page 32. She explained that the $500.0 for the Craig--South
Cover Harbor transfer is general funds. Senator Phillips
voiced his understanding that the state would provide the
money for improvements, and the city would take over
operation and maintenance. Ms. Kowalski said that the
department is cautiously exploring that arrangement. The
department is interested in local operation and maintenance
of new facilities so there is no future burden on the
general fund. The state must ensure that the community is
prepared to take on proposed operation and maintenance.
Directing attention to the $80.0 for Wrangell - Reid Street
paving, Ms. Kowalski noted an amendment. Nancy Slagle
referenced an amendment to change the project to a Dept. of
Administration municipal grant. In response to a question
concerning why the change was made, Ms. Kowalski explained
that it is unusual for the department to request paving of
100% for a general fund project outside the normal federal
program and public participation process.
Ms. Kowalski advised that funding for the following projects
flows from the 470 oil and hazardous spill fund:
Tudor Road maintenance shop assessment $193.0
Soldotna maintenance shop excavation 137.0
Homer maintenance shop remediation 106.0
Fairbanks Int. Airport, south parking apron 85.0
Cold Bay airport assessment 122.0
All of the projects have some sort of oil or hazardous
materials component.
Dept. of Environmental Conservation
Nancy Slagle noted that the list of village safe water
grants is set forth on page 32 through page 34, line 8. The
grants provide basic sanitation services for remote
communities. The budget attempts to utilize state general
fund dollars to leverage as much federal funding as
possible. She cautioned that not all projects on the
priority list may qualify for federal moneys. Sometimes it
takes more general funds to access federal dollars because
of the types of project involved. Backup materials identify
general and federal fund matches.
The first group of projects reflects engineering/feasibility
studies which are not matched with federal funds.
Referencing water, sewer, and solid waste grants set forth
at page 34, Mrs. Slagle advised that most of the listed
projects have associated federal funds. She specifically
noted that the $711.3 for Toksook Bay water supply and
septic tanks does not, nor does funding for Noatak,
Perryville, Akutan, and St. Michael. Federal dollars are
for wastewater systems. Wastewater is not involved in all
of the projects.
Senator Rieger raised a question regarding the $3.5 million
for environmental protection agency Indian set aside grants
(page 32, lines 19 and 20). Ms. Slagle advised that funding
reflects federal dollars.
Senator Rieger next inquired regarding the $933.5 for
village safe water administration. Mrs. Slagle explained
that general funds are used for administration of village
safe water grants.
GREGG CAPITO, Section Chief, Village Safe Water Program,
Dept. of Environmental Conservation, came before committee
in response to a question from Senator Phillips concerning
the types of systems proposed for rural Alaska. Mr. Capito
said that the department attempts to fit systems to
individual communities. The Alaska Science and Technology
Foundation is considering funding installation of Alascan
units in the Northwest Arctic to test user acceptability and
to "nail down installation and operational costs."
Discussion of responsibility for maintenance of systems
followed.
Mrs. Slagle referenced the $16,559,300 in general fund
municipal matching grants to provide sanitation services for
incorporated communities. All funding is to satisfy federal
mandates as well as basic infrastructure needs. All
projects require a significant local match to ensure
community commitment and long-term utilization of
facilities. MIKE BURNS, Section Chief, Municipal Grants,
Dept. of Environmental Conservation, came before committee.
He explained that several of the projects match with the
department loan fund program, the successor to the former
Farmer's Home Loan Fund program and several other programs.
The local portion may come from a number of sources. Co-
chairman Halford asked for a list showing appropriations
from municipal matching grant general funds, appropriations
available from other sources, and total project costs. Mr.
Burns agreed to provide the information.
Senator Rieger asked if grants are provided per formula or
prioritization process. Mr. Burns advised of prioritization
and said that projects are listed in priority order.
Mrs. Slagle explained that the $400.0 in general funds for
the statewide fuel tank master plan would aid department
response to storage tanks that threaten public health. It
will allow the department, in conjunction with the bulk fuel
storage tank cabinet-level task force, to develop a
comprehensive statewide strategy for resolving Alaska's fuel
storage tank problem. The project will include a survey of
facilities and conditions of tanks; development of a data
base of tank information; and recommended options for
financing storage tank repairs, upgrades, and cleanup of
existing contamination.
The $500.0 in 470 funds for local hazardous substance
release response packages would continue development of an
array of response resources that can be accessed to mitigate
spills in rural areas where equipment for containment,
control, and cleanup is not readily available. The project
will establish response packages in local communities and
provide first aid response equipment. The packages will be
inventoried, stored, accessed, and managed via local
response agreements with local communities.
Senator Rieger asked why the statewide fuel tank master plan
was not funded from the 470 fund. LYNN KENT, Acting
director, Government Preparedness and Response Program,
Dept. of Environmental Conservation, explained that general
funds were requested since many of the tanks are
unregulated. The response fund is to be used for situations
where a problem currently exists or there is an imminent and
substantial threat of a problem. For many facilities, the
department does not know whether or not a problem exists.
Discussion followed regarding whether efforts legally fit
under the definition of the 470 fund.
The $1 million in 470 funds for coastal nearshore response
cleanup equipment will continue the plan to establish four
additional equipment packages. Locations have not yet been
determined but may include Kodiak, Dutch Harbor, Bristol
Bay, interior regions, or one location in Southeast. Ms.
Kent added that these are continuations of demonstration
projects relating to high speed response vessels, booms, and
skimmers that use "local vessels of opportunity"--fishing
vessels--for response.
The $100.0 in 470 funds for response team equipment,
maintenance, and supplies includes purchase of command
center equipment for management of spills in remote areas,
purchase of equipment used for response training, and to
replace items in cases where no responsible party has been
identified and state resources must be used.
The $100.0 in 470 funds for fixed VHF repeater installation
and maintenance consists of establishing communications in
Southeast Alaska and to conduct an area survey to access and
analyze the best methods for providing communication systems
for North Slope oil production areas. Ms. Kent said that
funding would expand what is presently in place for Prince
William Sound, Cook Inlet, and Fairbanks. The project would
also establish a system for Southeast and allow the
department to assess the best method for establishing a
communication system for North Slope oil production areas.
Further discussion followed regarding equipment involved in
the communication effort. Co-chairman Halford requested
backup information on costs relating to installation and
maintenance.
Dept. of Community and Regional Affairs
The $1 million from the 470 fund for bulk fuel system
emergency repairs/upgrades would provide for design, repair,
and upgrade of bulk fuel storage and handling in rural
Alaska. The statewide need in this area is "over $200
million."
The $529.2 for head start fire, health, safety, code
compliance would provide equipment and repairs of facilities
and computer equipment statewide. REMOND HENDERSON,
Director of Administrative Services, Dept. of Community and
Regional Affairs, came before committee. He acknowledged
inclusion of a computer network totaling $200.0 for 19
sites. Funding would flow to Ruralcap. Co-chairman Halford
requested a list of sites.
The $125.0 for team Alaska, Arctic Winter Games, relates to
the 1996 games hosted by Alaska. It would cover
transportation, clothing, equipment, team dues, etc.
The $100.0 for community profile maps would show land
ownership boundaries, location of community facilities,
businesses, utilities, roads, houses, and high flood water
levels. It would be used by agencies to prevent
construction of major capital projects on private land. Mr.
Henderson said that funding would allow for update of
existing data. The focus is on community profiles that have
not been updated for a number of years.
The $500.0 for rural power system upgrades represents grants
and contracts for more efficient rural power systems. It is
intended to reduce the operating costs of utilities and
demand for power cost equalization. Mr. Henderson noted a
commitment from communities for "some local match." The
existing list of projects totals $49 million. Co-chairman
Halford requested a copy of the list.
The $1.4 million for utility improvements/small power
projects reflects grants requiring a 25% match by utilities
that participate in power cost equalization. Funding to
flow from the power cost equalization fund is intended to
reduce the cost of generating or transmitting power to
customers.
The $4 million for Southeast energy fund grants flows from
four dam pool moneys. Mr. Henderson acknowledged litigation
surrounding the fund. He explained that if there are no
deposits from interest earnings, there will be no funds for
the Southeast energy fund grant. Mrs. Slagle advised that
if the funding is available, it will provide grants to
utilities participating in power transmission between Swan
Lake and Tyee Lake. Funding is for power projects and
repayment of loans and bonds. Co-chairman Halford asked if
there is a legal obligation to appropriate the $4 million to
Southeast energy fund grants. Mr. Henderson advised that he
did not believe there was a legal requirement. The law
states that there has to be an appropriation. It is split
40/40/20, if funding is available. Discussion followed
regarding prior-year payments. Mr. Henderson advised of
$4.6 million in FY 94 and $4.2 in FY 95. All but $24.0 has
been committed.
The $7 million for community block grants is comprised of
federal moneys for low income and homeless individuals. Mr.
Henderson advised of two categories:
1. Community services block grant $ 3
million
2. Community development block grant $ 4
million
Community services moneys flow to Ruralcap. The community
development block grant is used for economic development
projects, roads, construction of facilities, etc. It is
combined with other moneys to fund the rural economic
development initiative program. Co-chairman Halford
requested lists of projects under utility improvement/small
power projects, Southeast energy fund grants, and community
block grants.
Referencing the $50.0 for the Egegik organizational grant,
Mrs. Slagle noted inclusion of $50.0 in supplemental funding
for the first-year grant. The amount shown in the capital
budget should be reduced from $50.0 to $25.0 to reflect
second-year funding.
Dept. of Corrections
Of the $2,707,900 for statewide renewal/replacement, $2.5
million is federal funds and $207.9 is general funds. The
project funds renewal, replacement, renovation, expansion of
facilities, and operational equipment. In response to a
question from Co-chairman Halford, Mrs. Slagle voiced her
understanding that the $207.9 is not a required match for
federal funds which are due the state without a match. BOB
COLE, Director of Administrative Services, Dept. of
Corrections, concurred that the $207.9 reflects an ongoing
CIP allocation which allows the department to charge
facilities management "off to CIP receipts." The $2.5
million represents reimbursement for historical capital work
done and paid for by the state. These funds flow from the
Federal Bureau of Prisons as the proportional federal share
of past state general fund expenditures allocated to the
care and keeping of federal prisoners. Senator Phillips
asked for a list of improvements and the facilities to which
they will be made.
The $350.0 for the corrections facility master plan funds
development of a comprehensive plan to address long-term
problems; including growing inmate populations, facility
upkeep and maintenance, public contracting, and demand.
Moneys will be used to hire a research firm and/or a public
agency to conduct a formal planning process. That process
will include cost benefit analysis; public survey and
recommendations; population trends; prisoner classification,
placement, and custody; etc. Senator Phillips asked if it
would address the women's aspect as well. Mr. Cole
responded affirmatively.
University of Alaska
The $1.4 million for the Anchorage, digital communications
network will partially extend the voice data and video
communications network throughout the Anchorage campus via
construction of a communications backbone. This phase of
the project will provide approximately 640 stations to be
linked to accommodate the library, business hub,
engineering, science, and administrative buildings.
End: SFC-95, #55, Side 2
[NOTE - The signal for end of tape did not sound. The
remainder of the meeting is unrecorded. Minutes reflect
transcription of shorthand notes.]
The $3 million for the Natural Sciences Building at UAF will
provide for scientific equipment and furnishings to complete
the building.
The $7 million in fire code compliance/deferred maintenance
represents bid-ready maintenance for classroom and research
buildings as well as planning money to get code compliance
corrections and deferred maintenance projects ready for
construction. The university has identified $157 million in
deferred maintenance needs. Senator Phillips asked if the
entire $7 million would be used at the Fairbanks campus.
Mrs. Slagle responded that the majority of the funding would
be used at that site.
The $43.0 in 470 funds for cleanup of state-owned
contaminated sites at the Palmer dump site is part of a
statewide cleanup. Solid waste was disposed of at the site.
Much of the material came from the University's experimental
farm.
WENDY REDMAN, Vice President for University Relations,
University of Alaska, came before committee to speak to the
$100.0 request for the virus free seed potato project. She
referenced $3 million in annual potato production in Alaska
and advised that the potato is the state's most important
agricultural crop. Alaskan potatoes are virus free and
suitable for export. Ms. Redman referenced the $5 billion
dollar international seed potato market and need for virus
free potatoes in Taiwan and China. Alaska is the only state
authorized to export, and there is great potential for
supply from the MatSu Valley. The $100.0 is one fourth of
what was requested. Approximately $120.0 was provided, last
year, to begin the project. Co-chairman Halford asked if
the project would qualify for Alaska science and technology
funding. Ms. Redman responded that it would not since it is
merely a pilot project. Further, the science and technology
fund does not fund basic research.
Alaska Court System
ART SNOWDEN, Administrative Director, Alaska Court System,
came before committee to speak to the $2,890,000 for
completion of the Anchorage Courthouse. He acknowledged
past funding for the new building, commencing in 1991, but
stressed that funding for installation of the security
system, phone and data systems, and furniture cannot be
deferred another year.
The $4,250,000 for the Fairbanks Courthouse design is the
second highest priority. Mr. Snowden noted that the
building was constructed in the early 1960s and is in poor
repair due to lack of maintenance. Funding will allow for
cost benefit analysis regarding whether it would be better
to renovate and add on to the existing facility or build a
new building. Co-chairman Halford suggested that the
requested $4,250,000 would appear to cover the cost of
design rather than analysis. Mr. Snowden acknowledged that
the project would produce bid documents. He further
attested to inadequate wiring which is unable to accommodate
electrical needs, as well as heating deficiencies. Co-
chairman Halford reiterated that there should be a
substantial difference between the cost of analysis versus
design and bid documents. He requested additional
information on what the $4.2 million "would buy."
Mr. Snowden next spoke to the $750.0 request for computer
enhancements for civil areas and advised that it would
purchase the following:
100 personal computers $325,000
100 packages of software 54,500
75 lazer printers 105,750
75 terminals for courtroom 39,750
and hearing rooms
software upgrades 45,000
kiosk software development 55,000
Total $625,000
He explained that many people come to the court system.
Much time could be saved and necessary information provided
if information could be put on an interactive kiosk. The
remaining $125.0 would be used for 25 digital audio
recorders to replace over ten-year-old equipment as it
fails.
Grants to Municipalities
Mrs. Slagle first referenced the $302.0 for the Wrangell
port and advised that the Governor feels it is important to
provide assistance to the city because of the recent sawmill
closure.
Municipal Capital Matching Grants
Nancy Slagle advised that the last portion of the capital
budget contains capital matching grants to municipalities.
Projects set forth in the budget were identified and
designed by the municipalities. Listed project reflect
distribution of the lump-sum amount appropriated in the
front section of the budget. Base funding of $25.0 is
provided to unincorporated communities while remaining
funding is allocated based on population. Matching amounts
are also population based. Mrs. Slagle advised of need for
a 5% match if the population is under 1,000; a 15% match for
populations from 1,000 to 5,000; and a 30% match when the
population is over 5,000.
Discussion followed between Co-chairman Halford and Mrs.
Slagle regarding deadlines for submission of projects as
well as the handling of individual community accounts. Mrs.
Slagle noted that a community could allow its portion of the
annual appropriation to build up over more than one year in
order to fund a larger project.
Senator Rieger voiced his understanding that the sliding
scale does not provide a dollar-for-dollar increase as the
community grows. Mrs. Slagle acknowledged that a statutory
percentage of property tax and mill rate is involved.
Senator Sharp voiced his understanding that only communities
that have submitted proposals are listed in the capital
budget at this time. Mrs. Slagle concurred. She further
referenced an April 17, 1995, memo (copy on file in the SB
136 master file) and advised that it contains an amendment
which appropriates moneys for communities that did not
submit projects.
Prior to concluding the meeting, Co-chairman Halford voiced
strong interest in reducing the total capital budget amount
while trying to maximize use of other funds.
ADJOURNMENT
The meeting was adjourned at approximately 5:30 p.m.
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