Legislature(1997 - 1998)
01/28/1998 09:09 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE 28 January, 1998 9:09 am TAPES SFC 98 # 10, Side 1 (000-590) Side 2 (590-435) CALL TO ORDER Senator Bert Sharp, Co-Chair, convened the meeting at approximately 9:09 am. PRESENT In addition to Co-Chair Sharp, Senators Pearce, Donley, and Adams were present when the meeting was convened. Senators Torgerson and Phillips arrived shortly thereafter. Also Attending: ANNALEE MCCONNELL, Director, Office of Management and Budget; DAN SPENCER, JOAN BROWN and CHRISTINE MEHOLIC, Budget Analysts, Office of Management and Budget; MIKE GREANY, Director, Division of Legislative Finance; JIM HAUCK, DAVE TONKOVICH and GINGER PATTON, Fiscal Analysts, Division of Legislative Finance; and aides to committee members and other members of the Legislature. SUMMARY INFORMATION SENATE BILL NO. 230 "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." SENATE BILL NO. 231 "An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date." FY 99 CAPITAL BUDGET OVERVIEW PRESENTED BY OFFICE OF MANAGEMENT AND BUDGET Upon calling the meeting to order, Co-Chair Sharp announced that the FY99 Capital Budget Packets in front of the members are also available on the internet and will be updated throughout the legislative session. Co-Chair Sharp introduced ANNALEE MCCONNELL, Director of the Office of Management and Budget who was invited by the committee to give an overview on the Governor's FY99 Capital budget. Ms. McConnell started her presentation by noting two bills before the committee, SB 230 and SB 231, the Governor's Appropriation proposals. She noted that this year there will be no department by department overview and that department representatives will be coming before the committee in the coming weeks to address specific funding requests. She stated that the Knowles Administration proposes to emphasize capital projects this year. Some included projects are school maintenance, new prison construction, and $16 million to be invested in economic development. The governor has introduced a bill this morning addressing NEW PRISON CONSTRUCTION. Senator Torgerson asked if the project is to be funded by treasury bonds. He was informed that it would be funded by a lease finance program. Funding for SCHOOL PROJECTS will come from the Tobacco Tax. Revenues from this tax have not yet been included in the packet due to the inability to accurately project future receipts. This is due to a certain amount of stockpiling of tobacco products by consumers before the tax took effect. OMB anticipates this event resulted in fewer taxes being paid during the first quarter of the program, but that the income generated will level out once stockpiles are depleted which will enable them to better project future revenues. The committee requested it be provided with the actual figures collected in this first quarter and upcoming quarters, as they become available. Co-Chair Sharp asked if the FY99 proposed budget included any NEW SCHOOL CONSTRUCTION. Ms. McConnell informed him that there were no plans in this packet, although she anticipated new building projects in the coming years. There had been some concern over the potential uncertainty of the bond market's reception of the use of the new Tobacco Tax as a funding source. Updated information shows a positive reception and the COP ratings continue to be very good. She pointed out that in the past few years there has been very little new school construction except in urban areas with a strong tax base. The administration plans future new school projects both in rural and urban areas. She drew attention to the growing population in the Mat-Su region that is suffering from widespread school overcrowding. Ms. McConnell spoke of a planned investment of a $16 million dividend into economic development. This dividend money is to go towards stimulating jobs. Other proposed ECONOMIC DEVELOPMENT PROJECTS include the following: an airborne geo-physical institute; encouragement for value-added timber products; a partnership with the Alaska Native Heritage Center in Anchorage; and fisheries development. Senator Adams asked if the proposed $50 million operating budget incorporated remaining funding for economic development. Ms. McConnell explained that some of the funding is included in the Mental Health Program proposed budget. She went on to say that the outlines would not include STIP as her office is first waiting for federal approval to be secured. She said they did put in "place holders" for the anticipated dollars, but referred to the cumbersome process of continually amending past budget proposals as the reason for omitting them in this year's packet. A final STIP will be provided once it is received from the federal government. Health and safety was the motivating factor for another group of capital projects Ms. McConnell outlined. She indicated that, when choosing which projects to include in this portion, an emphasis was placed on the areas with the most critical needs. Some of these projects are listed below. The Knowles Administration has proposed funding be spent on renovations to PIONEERS HOMES. These renovations would allow more beds to be converted to accompany patients requiring additional care. Funding is being requested for SEWER AND WATER PROJECTS across the state. Ms. McConnell acknowledged that they were requesting more money this year than last. She cited the intention of the governor to "permanently relocate honey buckets to museums" as the primary reason. The committee had some discussion on this issue. UNDERGROUND AND ABOVEGROUND STORAGE TANK REPLACEMENTS also need funding according to the governor's proposal. However, most of the money for these projects comes from federal sources with the state needing to only contribute a small percentage. Ms. McConnell talked about funding for EMERGENCY MEDICAL SERVICES and upgrades to VITAL STATISTICS that would allow for better tracking of the health care needs of Alaskans. EMERGENCY COMMUNICATIONS improvements will contribute to the health and also the safety of Alaskans have also been included in this capital budget packet. The Knowles Administration is also requesting funding for the ALASKA STATE TROOPERS and FISH AND WILDLIFE PROTECTION. This money will be used to beef up equipment used by officers in the line of duty. Specifically mentioned were snowmachine upgrades. There are also plans to expand the AK State Trooper Academy and construct adequate housing for the recruits while attending the school. Ms. McConnell talked about funding needs for TRANSPORTATION and told the committee they can expect be updated on federal funding amounts as they are awarded to the state. GATEWAY ALASKA projects undertaken in recent years, such as expansion to the Anchorage and Fairbanks airports, are proving to be viable to the economy, she pointed out. She said that while the executive and legislative branches together were making a dent in TECHNOLOGY ADVANCEMENTS across the state, there is still great need for improvement. The proposed budget includes more funds to help meet these goals. Co-Chair Sharp noted that while in the past, matching federal funds was relatively easy for the state, the budget is much tighter now and more attention will need to be paid the feasibility of specific projects. Senator Pearce inquired about port projects. Ms. McConnell told her they are not included in the executive branch budget. Senator Pearce asked if the Knowles Administration had outlined a policy on matching municipal grants. Ms. McConnell replied that although they had given it some consideration, it was felt that there were areas that needed additional funding to maintain. This comes at a time when the governor is trying to hold the line on spending so these potential projects have been left out. On the subject of DEFERRED MAINTENANCE, Ms. McConnell informed the committee that while the administration has targeted critical deferred maintenance projects for each department, they feel focus on school projects is most important at this time. She said the departments will be presenting some of these individual needs to the committee as the session progresses. Some of the funding for the school projects will come from the Tobacco Tax revenues. Seven million dollars is earmarked for University of Alaska deferred maintenance projects. Future budget proposals, starting with FY00, will incorporate annual and preventative maintenance costs. These will also detail a rent structure where agencies will be charged rent to cover preventative maintenance costs. This will be made possible due in part to the new automated budget system. Senator Adams had questions on the EXXON VALDEZ OIL SPILL TRUSTEE COUNCIL. He wanted to have a history of what purchases they have made in the past five or six years and a list of planned purchases. He referred to acquisition of land. Ms. McConnell said her office has been working with them and will continue to request this information for the committee. Ms. McConnell concluded her presentation by introducing some of the OMB staff who have been working on the proposed FY99 capital budget and encouraging committee members to contact them with questions and suggestions for making the packet more user friendly for their needs. These staff members are Dan Spencer, Joan Brown and Christine Meholic. Co-Chair Sharp predicted that it would be a bumpy road ahead for this proposed budget. He commented that the funding requested was above the majorities' general fund target. After general comments by committee members, Co-Chair Sharp thanked Ms. McConnell for her presentation. ADJOURNMENT Co-Chair Sharp adjourned the meeting at approximately 10:15 am. SFC-98 (1) 1/28/98 am
| Document Name | Date/Time | Subjects |
|---|