Legislature(1997 - 1998)
05/02/1998 01:10 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
2 May, 1998
1:10 p.m.
TAPES
SFC 98 # 151, Side A (000-590)
Side B (590-000)
CALL TO ORDER
Senator Bert Sharp, Co-Chair, convened the meeting at
approximately 1:10 p.m.
PRESENT
In addition to Co-Chair Sharp, Senators Donley, Adams and
Parnell were present when the meeting was convened.
Senators Pearce, Phillips and Torgerson arrived shortly
thereafter.
Also Attending: Senator LYDA GREEN; Senator JERRY MACKIE;
ANNALEE MCCONNELL, Director, Office of Management and
Budget, Office of the Governor; DAN SPENCER, Chief Budget
Analyst, OMB; LAURA BAKER, Budget Analyst, OMB; BARBARA
RITCHIE, Deputy Attorney General, Civil Division, Department
of Law; JIM BALDWIN, Assistant Attorney General,
Governmental Affairs Section, CD, DOL; TRACY MAHR,
Accounting Supervisor, Division of Administrative Services,
DOL; JOE PERKINS, Commissioner, Department of Transportation
and Public Facilities; NANCY SLAGLE, Director, Division of
Administrative Services, DOT&PF; DEBORAH VOGT, Deputy
Commissioner, Department of Revenue; NANCI JONES, Director,
Division of Permanent Fund Dividend, DOR;JOHN BITTNEY,
Alaska Housing Finance Corporation, DOR; SHARON BARTON,
Director, Division of Administrative Services, Department of
Administration; DUGAN PETTY, Director, Division of General
Services, DOA; BARBARA FRANK, Director, Division of
Administrative Services, Department of Commerce and Economic
Development; DWAYNE PEEPLES, Director, Division of
Administrative Services, Department of Corrections; KAREN
REHFELD, Director, Division of Education Support Services,
Department of Education; KEVIN BROOKS, Director, Division of
Administrative Services, Department of Fish and Game; JANET
CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services; DWIGHT PERKINS,
Special Assistant, Office of the Commissioner, Department of
Labor; NICO BUS, Administrative Services Manager, Division
of Support Services, Department of Military and Veterans
Affairs and Department of Natural Resources; KEN BISCHOFF,
Director, Division of Administrative Services, Department of
Public Safety; MARY LOU BURTON, Director, Budget
Development, University of Alaska; CHRIS CHRISTENSEN, Staff
Council, Alaska Court System; MIKE GREANY, Director,
Division of Legislative Finance; JIM HAUCH, Fiscal Analyst,
DLF; GRETCHEN MANNIX, Fiscal Analyst, DLF; and aides to
committee members and other members of the Legislature.
SUMMARY INFORMATION
CS FOR SENATE BILL NO. 231(FIN)
"An Act making and amending capital, supplemental, and
other appropriations; making appropriations to
capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
Co-Chair Sharp announced that the committee would try to
hear testimony from each agency relating to the committee
substitute for the FY99 Capital Budget. He spoke to some of
the changes. The committee would begin considerations of
amendments the next day.
He addressed the CS and began with the front section. He
requested his staff member, TOM WILLIAMS to explain the
changes. Mr. Williams came to the table and shared with the
committee some of the following:
Section 1 was an appropriation to the Clean Water fund in
the Department of Environmental Conservation as was Section
2 for the Alaska Drinking Water Fund. These were routine
annual appropriations to the loan programs, Mr. Williams
explained.
Section 3 was a $250,000 grant similar to past grants for
the Arctic National Wildlife Refuge.
Section 4 would appropriate $1.85 million to the
Unincorporated Community Capital Matching Project Grant Fund
and $13.15 million to the Municipal Capital Project Matching
Grant Fund. This was initially proposed last year, he told
the committee.
Section 5 was a reappropriation of a $1.4 million
appropriation made last year that the Administration
proposed to appropriate for the Sitka Police Academy.
According to Mr. Williams, this had been reappropriated
instead to a variety of requested Department of Public
Safety and Department of Corrections information-type
systems.
Section 6 was an appropriation to the Rural Education
Revolving Loan Fund. The balance was routinely appropriated
on an annual basis, he explained.
Section 7 mirrored the Constitutional Budget Reserve Fund
language that also appeared in the operating budget.
Section 8 was a lapse date extension for an American Red
Cross Grant. Mr. Williams told the committee that this had
occurred routinely over the last several years. He added
there was also lapse extension of FY98 American Red Cross
Grant in Section 9.
Section 10 indicated which of the sections were for
capitalizing funds and Alaska visions.
Sections 11 and 12 were effective date provisions.
The bulk of the back section started with Section 13 and
went through the departments in alphabetical order followed
by the University, the Legislature, etc.
Senator Parnell asked if the appropriations for the
Municipal Capital Matching Grants did not always lapse. Mr.
Williams explained the appropriation was to capitalize the
fund, which itself did not lapse. Withdrawals were made on
an annual basis from the fund and were normal capital
appropriations and would lapse.
Co-Chair Sharp began going through the department capital
projects, starting with the DEPARTMENT OF ADMINISTRATION.
He detailed some of the planned appropriations. These
included: $300,000 for Digital Photo Identification;
$385,000 for the DMV License Plates and Manuals Purchase
annual appropriation and minimal equipment; $175,000 for DMV
Microfilming and Indexing; $195,000 for Electronic Commerce
and Purchasing System; $175,000 for the Lease Database
System.
He invited SHARON BARTON, Director of Division of
Administrative Services to comment on the proposal. She had
a couple of questions. First, the DMV License Plates and
Manuals were listed as receiving one hundred percent
funding. The Governor's request was for $485,000 and she
wondered whether it was the intention of the committee to
fund at $485,000 or if it was the intention of the committee
to reduce that.
Co-Chair Sharp answered it was the intention of the
committee to fund the amount stated in the CS. According to
their information, that amount was enough to pay for the
license plates, the manuals and some of the equipment. He
admitted the entire equipment portion of the request was not
granted. Ms. Barton said her confusion was with the listing
of the Governor's request as $385, when it was really $485.
Co-Chair Sharp explained that the Governor's request was in
the operating budget and therefore was shown as zero on the
capital budget. The Senate version was $385,000.
Her next question regarded the non-general fund Retirements
and Benefits Space Consolidation Furniture project. She
wanted to know why it was not funded with general funds.
She stressed the need for the division to either secure more
space or crowd more staff into existing space. The
department felt it was a more cost-effective approach to
purchase modular furniture to enable the use of the amount
of space they had now.
Co-Chair Sharp requested committee members meet with Ms.
Barton for more information if they were interested in
reinserting the component in the budget packet. He said the
request was one that was squeezed out of the budget in
attempt to reach the funding goals. Senator Phillips
expressed an interest in following up on the matter and
looking for a possible accommodation of the project.
Ms. Barton continued by speaking to the other unfunded
items. She felt the biggest difficulty would be with the
lack of additional money for the Public Defender Agency for
computers. She explained they were operating with very old
equipment and that it increased operating expenses of the
division. She offered the project as an investment in
decreasing operating costs, which she said the Legislature
expressed intent of reducing.
Co-Chair Sharp noted that the $700,000 reduction would
appear in the bonding proposal as a deferred maintenance
item. He linked it to the Pioneers Home.
Ms. Barton's final comment addressed the Juneau Subport
Relocation Planning component. She said that while it may
not appear urgent since the facility didn't have to be
vacated until 1999, planning for the move was urgent and
would at some point be necessary.
Co-Chair Sharp asked what was the extra expense of $100,000.
Ms. Barton replied the department intended to hire a
consultant to research the options and find the most cost-
effective options for relocation.
The committee next discussed capital projects for the
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT. Co-Chair
Sharp noted the two items in the capital budget, the Four
Dam Pool Project Repairs, and Kodiak Launch Complex.
Neither of those were funded with general funds.
Senator Adams asked about funding for the Kodiak Launch
Complex. He was told $4.5 million US Air Force funds and
$500,000 from the launch complex fund itself, which
originated as Alaska Science and Technology funding.
Senator Adams also wanted to know about the $250,000
Economic Development Matching Grant project. He asked if
the project would show up elsewhere or was it eliminated.
Co-Chair Sharp answered he didn't think it was included in
any of the budget proposals. He expanded that the budget
just couldn't accommodate all of the AIDEA funded projects
and this was one that was cut.
The next agency's capital budget addressed by the committee
was the DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS. TRACI
CARPENTER, Budget Analyst in the Division of Administrative
Services was invited to speak to the CS. She didn't believe
the department had concerns with the budget.
She did have a question regarding the Rural Electrification
Revolving Loan Fund listed in the front section. She noted
the reduction and was unsure where the committee got the
numbers, or what the intent was for the decreased project.
Co-Chair Sharp requested Senator Adams work with the
department and committee staff to determine the reasons.
Senator Adams pointed out that the Alaska Native Heritage
Center project was missing. He again asked if this project
would be included elsewhere in the full budget package. Co-
Chair Sharp didn't think it would be included.
The DEPARTMENT OF CORRECTIONS was next to be addressed.
DWAYNE PEEPLES, Director of the Division of Administrative
Services, came to the table to speak to the capital budget
items.
Senator Adams had a question for the chair about the
deferred maintenance items and if they would be included.
Co-Chair Sharp replied that they would be added to the AHFC
deferred maintenance budget.
Mr. Peeples said the department shared the deferred
maintenance concerns and was satisfied if the projects would
be included elsewhere. He spoke further to the critical
need of the projects. The only item left unfunded was the
Community Jails Security and Expansion project.
The committee then discussed the DEPARTMENT OF EDUCATION
capital projects. KAREN REHFELD, Director of Education
Services came to the table.
Senator Adams voiced his concern about the $100,000 for
Library Material that was not included. Co-Chair Sharp said
that item was deleted. Ms. Rehfeld told the committee that
request had not been funded for the last two years. She
talked about the costs to purchase magazine subscriptions
and other periodicals.
The committee then heard from BARBARA FRANK, Director of the
Division of Administrative Services, on capital projects for
the DEPARTMENT OF ENVIRONMENTAL CONSERVATION. She spoke of
four items of concern to the department. First, she was
unsure about the change of the funding source mix for the
Municipal Matching Capital Grants portion. Co-Chair Sharp
explained it was just a change to AHFC funds from general
funds.
The second item of concern was the reduction for Village
Safe Water Projects Administration. Co-Chair Sharp
responded it was a straight reduction and was funded at the
same level as the previous year. Mr. Williams further
detailed the changes and referred to intent language. Ms.
Frank said the department would need to confirm the figures
and that the intent language was important to them.
She then spoke of three projects that were deleted. First
was a request to create an electronic database of the
Domestic Wastewater Files to allow public access to records
for property transfers. Second was a request for federal
funds to comply with the EPA requirement for Fine
Particulate Monitoring. The third request was for Natural
Resources Damage Assessment funds from the Exxon Valdez Oil
Spill Settlement.
Co-Chair Sharp responded to the particulate monitoring
project stating that while it would use federal funds for
construction, testimony told the committee it would be a
continual program, which the municipalities would be
expected to finance. Ms. Frank agreed that the program was
a new federal requirement and said the director of the
Division of Air and Water Quality would attend the meeting
tomorrow to speak to that project.
Co-Chair Sharp then addressed the request for $325,000 for
assessment protocol stating it was determined to not be the
best use of the EVOS money.
The Domestic Safe Wastewater Files project was deleted
because the committee ran out of AHFC receipts to fund it,
according to Co-Chair Sharp.
Senator Adams spoke of difficulties for the agency to treat
all communities the same. He noted the Cordova Water System
and the reduction to that project and compared it to the
increase for the Anchorage Wastewater project. He hoped
that the committee was not playing games and taking from one
community to give to another. If so, he speculated the
Senate would be unable to get a two-thirds vote from the
House to draw from the CBR. Co-Chair Sharp replied the
comments were well taken.
The DEPARTMENT OF FISH AND GAME capital projects were
addressed next. KEVIN BROOKS, Director of Administrative
Services, spoke to these items. He referred to the deferred
maintenance requests for facilities and vessels, and wanted
to know if they would appear somewhere else in the budget.
Co-Chair Sharp answered that they were both included in the
draft bond budget proposal.
Mr. Brooks then spoke of the Juneau Subport facility and the
efforts the department had already made to relocate and
streamline activities. The Vessel Repair Facility request
was a critical project and he detailed the advantages and
the preliminary work done to build the new facility on NOAA
property. He also talked about the DOA's request for
relocation funds and the need for that project also.
He then commented on the AIDEA funded projects requested,
one of which was for the Hardrock Mining Project. He wanted
to know if they would be included elsewhere. Co-Chair Sharp
said they did not appear in any other budget packet.
The last item Mr. Brooks asked about was the splitting of
projects under Sport Fishing Access. He admitted he hadn't
had time to go study the changes, but noted that the amount
appeared slightly higher than originally requested. He also
noticed EVOS funds allocated to some of the projects and
warned that they might not be allocated. Co-Chair Sharp
pointed out that the EVOS funds were slated for projects in
the Prince William Sound area and should qualify for the
EVOS funds. He speculated that because the ADF&G
commissioner sat on the EVOS board, he would push for their
approval. Most of the projects proposed by the Division of
Sports Fish were left in tact or had little changes,
according to Co-Chair Sharp.
Mr. Brooks said that while the commissioner would support
and encourage the Whittier projects, he didn't know if the
EVOS trustees would approve of the funds use in that manner.
Senator Pearce suggested there might be an easier way using
the criminal settlement money from the Exxon Valdez oil
spill. The settlement accounts were still generating
interest, some of which had been allocated to special
projects. Now that Shepherd Point road was finally
complete, she guessed there might be an opportunity for the
Whittier projects to utilize those funds.
Senator Adams inquired about the Americans with Disabilities
Act project requested by the OFFICE OF THE GOVERNOR. Co-
Chair Sharp informed him that the items were included in the
deferred maintenance bill.
The next capital budget projects discussed were for the
DEPARTMENT OF HEALTH AND SOCIAL SERVICES. JANET CLARKE,
Director of the Division of Administrative Services
testified to the changes. She assumed that the deferred
maintenance items would be included in the AHFC bill, which
Co-Chair Sharp affirmed.
The second item she addressed was the Public Health
Laboratory reduction. She told the committee that some of
the cuts were to services provided by the Department of
Transportation and Public Facilities and that DHS&S could
not charge the public for reimbursement. She detailed the
reasons for the restrictions.
The only other change was the inclusion of the Ketchikan
Youth Facility, which had been requested by the Governor in
the supplemental bill.
Co-Chair Sharp told Ms. Clarke that the capital projects
listed in the supplemental budget were either included here
or would not be funded.
The committee then addressed The DEPARTMENT OF MILITARY AND
VETERAN'S AFFAIRS capital budget projects. NICO BUS, Budget
Coordinator for both this department and the Department of
Natural Resources, spoke to the DMVA items.
He told the committee that the number one priority was
funding for the Juneau Armory. Co-Chair Sharp assured him
this project and also the Nome Armory project would be
included in the bond bill in addition to deferred
maintenance.
Senator Adams pointed out that to obtain federal funding,
the projects didn't necessarily need a general fund
allocation so long as the state somehow provided the
matching funds. Co-Chair Sharp added that projects proposed
in multiple phases were going to be allocated the total
amount in this year's AHFC budget instead of divided between
years.
Mr. Bus asked about the Emergency Wireless request. He
spoke of the amount granted last year and the funding
required for completion of the project.
He then addressed capital projects for the DEPARTMENT OF
NATURAL RESOURCES. He first spoke of the Rural Coalbed
Methane project.
Tape #151 Side B
This project was in it's third of five steps and funds would
be combined with last year's allocation to execute site
specific service and drilling sites. Co-Chair Sharp
responded that the Senate did not fund the project last year
and was added by the other body.
Mr. Bus continued with the two requests for the State
Recorder's Office for equipment upgrades and repair of
disintegrated microfilmed data. He spoke of the
deterioration of the current systems and the importance of
the operations. He stressed that the customers did pay for
the services and generated almost $1 million excess income
beyond operating expenses.
The next item was the State Oil and Gas Electronic Interface
With Industry. Mr. Bus told the committee the Division of
Oil and Gas received all the production data manually and
they were working with industry to automate. This request
would allow them to speed up the process and deposit the
money into the permanent fund sooner.
He asked if the Fairbanks Maintenance and Repairs project
would be included in the deferred maintenance budget. Co-
Chair Sharp said it was shifted over.
The final request was for the Oil and Gas Royalty Accounting
System that had been funded in the past and would
standardize all reporting.
The committee then addressed capital projects for the
DEPARTMENT OF PUBLIC SAFETY. KEN BISCHOFF, Director of the
Division of Administrative Services, came to the table. In
looking at the budget package, he noted that the proposal
would fund five of eight projects requested at essentially
the requested level.
The three unfunded projects included the Alaska Public
Safety Information Network - National Crime Information
Center Upgrade. He told the committee the FBI would have
their system on-line in about two years and it was
conceivable that the project could be deferred for a year,
but eventually it needed to be completed. The second
project excluded, was the Sitka Academy Dorm Expansion to
add a women's wing to provide space for 20 female recruits.
The third project not included and was of a more immediate
concern, was the Fish and Wildlife Aircraft and Vessel
Maintenance. He handed out material to the committee to use
as an example. Co-Chair Sharp interrupted to tell Mr.
Bischoff the project was included in the deferred
maintenance budget.
Senator Parnell spoke of concerns over the AFSIN computer
system. He noted the requests related to AFSIN and asked if
the components not funded were critical. Mr. Bischoff said
the allocated amount would be adequate, although they could
not do one hundred percent of the work but this would get
them started.
The DEPARTMENT OF REVENUE capital budget projects were
discussed next. The committee invited DEBORAH VOGHT, Deputy
Commissioner, to come to the table. She voiced the
department's main concern with the deleted Permanent Fund
Dividend Capital project. She explained the request for
systems improvements.
Senator Parnell asked how much of the Year 2000 Compliance
request was for the Division of the Permanent Fund. She
said none and that she assumed the Legislature would want to
pay for the projects out of the dividend fund. She spoke
further of the department's Y2K progress.
The remaining DOR items were for the ALASKA HOUSING FINANCE
CORPORATION.
Senator Adams spoke of two concerns, one related to $5
million reduction to the Supplemental Housing component. He
wanted to know if the remainder would be covered in the AHFC
bond bill. Co-Chair Sharp said it was not, because the
information was that no match was required. Senator Adams
other concern was with the Weatherization project.
JOHN BITTNEY came to the table and explained how federal
changes to the Supplemental Housing program moved away from
the traditional matching program.
Senator Adams asked about the status of the need for the
weatherization program's services. Co-Chair Sharp
commented that the program was funded close to the level
from the year before. Mr. Bittney said the people served by
the program were the elderly, disabled and working poor.
The division had identified the need, he said. He further
detailed the statewide scope of the services and its
benefits.
Senator Torgerson wanted to know if the funding was at the
same level as the year before. Mr. Bittney said it was.
Co-Chair Sharp noted there was a funding shift.
Senator Adams then asked about the Homeless Assistance
Programs and the different amount proposed in the House
bill. Co-Chair Sharp said this proponent was also funded at
the same level as last year.
Mr. Bittney expressed a desire to research and provide a
response to the Supplemental Housing program and the Senior
and Statewide Housing Deferred Maintenance program
allocations. He referred to a ten-year schedule the
corporation had been working on for the past four years.
Although the funding level remained on schedule, the
deferred maintenance projects were falling behind, he told
the committee.
The committee then discussed capital projects for the
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES.
Senator Adams suggested it would be faster to first list
which projects would be covered under the AHFC bond bill.
Co-Chair Sharp couldn't remember if any ADA projects were
included. He listed deferred maintenance for airports,
critical facilities, harbors, and harbor construction as
included in the other bill. He detailed further the harbor
programs. He said the complete list would be available
later in the afternoon.
Commissioner JOE PERKINS came to the table. He told the
committee he would reserve his questions about harbors until
the bond budget was released.
He pointed out a $500,000 reduction for Emergency Non-
Routine Maintenance, which had been funded at $1 million for
years. He stressed that every year the department had used
that million and warned that the $500,000 would be short.
He referred to flooding in Nebesna last year for which the
federal government denied reimbursement for repairs.
He asked if the balance of the request for Deferred
Maintenance for Highways was going to be added elsewhere.
Co-Chair Sharp said it would be a reduction.
Mr. Perkins told the committee that with the size of the
DOT&PF portion of the budget and the limited time they had
to review it, they did not have an opportunity to understand
it all.
He next pointed out that the Anchorage Airport Terminal
Project, which the department asked for a $2 million federal
authorization was not in the budget packet. Without the
authorization, the department could not use the bond funds.
Co-Chair Sharp said the item was removed from the bill to
see how the entire budget and the airport bond bill fared
and that it could be added back later.
Mr. Perkins commented on the method of appropriation of
match. He had concerns about the expiration of the federal
budget match deadlines and the need to expend funds before
then. He said it would not be a problem if the department
could use 1999 funds, but the way he read the bill, they
couldn't. If not, the state would have insufficient match.
He requested flexibility.
Co-Chair Sharp asked for clarification that the funds were
potential increases to the federal 1998 grants. Mr. Perkins
detailed the STIP process and talked about the 1998 and 1998
allocations. He didn't believe this was a good year to
tighten control over the match since the fund amount was
still unknown.
Senator Pearce questioned the October deadline and asked if
the needed match couldn't be appropriated in a supplemental
budget. Mr. Perkins said the department had been given the
authority to spend $100 million in FY98. The federal
government would give them the rest of the money when the
bill passed, he explained. He estimated they would be given
another $200 million. The department was preparing projects
to begin at that time. He explained the need to spend the
money by October first or else lose it to be divided among
other states.
Co-Chair Sharp commented, "You mean, we don't know what
we're getting yet, but we got to have it obligated by the
first of October?" Mr. Perkins confirmed that statement.
Senator Donley made undecipherable comments to further
explain the situation.
The committee continued to discuss and clarify the current
STIP funding situation.
Senator Pearce stated that the stated owed itself to take
advantage of the STIP increase opportunity.
Mr. Perkins spoke of the potential increase and how it
related to the 1998 or 1999 budgets. He estimated a need of
an additional $7 or 8 million before October. He offered
solutions of using 98 funds.
Senator Pearce asked what happened in situations before
where inadequate funds were allocated to meet the federal
match. Mr. Perkins replied that there had never been such a
case. Senator Pearce argued that there was a project in her
district that the department hadn't completed citing the
state had not provided adequate match.
The committee continued the discussion with Mr. Perkins.
Senator Donley requested a list of the projects the
department would do with the extra funds. Mr. Perkins said
the projects were contained in the STIP. Senator Pearce
therefore wanted to know which projects would not be done.
The two senators and the commissioner debated the contents
and the requirements of the STIP.
Senator Donley also asked what STIP projects would not be
done. Mr. Perkins said the items from the bottom of the
priority list would be eliminated. He stated that was a
decision the department would make. He didn't feel it would
be necessary because Congress would probably award all the
needed funds. Senator Donley requested the list.
Senator Torgerson referred to information provided by DOT&PF
stating the match was not required this year. He requested
an overview of why the information was not given until this
date.
Mr. Perkins explained the use of the '98 and the '99 match.
He spoke in length of the different fiscal year matches and
supplemental budgets.
Senator Torgerson commented that he liked the budget as it
was.
Senator Donley asked with the escalated amount, did the
commissioner anticipate it would be an annual reoccurring
higher amount? Mr. Perkins thought it would go up a little
each year and that the current amount was low.
Senator Donley then asked if the money was for the
demonstration projects, which Mr. Perkins said, was not.
Co-Chair Sharp asked if the committee understood the non-
flexibility of the match in case the department was awarded
the additional $100 million. He said he would have his
staff work with the department to explain the concept in
writing. He thought he understood the complexities. The
concern was with knowing which projects would be undertaken.
Commissioner Perkins requested the committee appropriate the
'99 match in a lump sum with the '98 match. He stated that
the state could save $8 or 9 million by doing this. He
detailed the reasoning.
Senator Pearce had problems giving the department a lump
sum. She complained that when that was done in the past, the
department didn't do the projects on the priority list and
instead moved the money around.
Co-Chair Sharp spoke further about his intention to have a
list drafted to show the different projects included in this
program.
Senator Donley commented that the money could be
appropriated after the federal determination was made.
Commissioner Perkins responded that the only advantage was
the Legislature would know what the number was.
Tape #152 Side A, 2:50 p.m.
Commissioner Perkins continued stressing that the goal was
to make sure to not loose any money. He offered the
department would work closely with the committee.
He voiced another concern with the appropriation detailed
all the way down to the engineering element, which he felt
could be explained later. He thought that doing the
appropriations so detailed would create an accounting
nightmare and would also hurt any flexibility. He
speculated it would stop projects with the money tied up.
Co-Chair Sharp requested the department talk with staff and
committee members regarding the concerns voiced during the
meeting.
Senator Pearce gave a specific example of a project in the
Anchorage area.
At this point, there was unstructured discussion between the
committee members and the commissioner regarding different
projects and concerns.
The committee moved ahead and discussed capital projects for
the UNIVERSITY OF ALASKA. MARY LOU BURTON, Director of
Budget Development, came to the table.
According to Ms. Barton, the only area of concern was the $4
million requested for the UAS Physical Education Facility
that was dropped from the bill. She noted that the funds
would not come from general funds and that the Chancellor
was looking into options. These included an outright grant;
obtaining a loan from the City and Borough of Juneau or
using proceeds from the sale of the Bill Ray Center. She
told the committee that the students had voted to repay any
loans received for construction of the facility.
Co-Chair Sharp said the project had been dropped out.
Senator Adams suggested that the city could purchase the
Bill Ray Center for use as a police department and the money
could be used for the physical education facility. He felt
the committee should keep their options open.
Co-Chair Sharp responded that the project was still open for
discussion and that other committee members had some
concerns.
Senator Torgerson made comments regarding deferred
maintenance.
The next capital projects discussed were for the ALASKA
COURT SYSTEM. The committee invited CHRIS CHRISTENSEN,
Staff Council, to speak to the projects.
He spoke to deferred maintenance items to be considered in
the bond bill.
The number one priority, according to Mr. Christensen, was
Emergency Replacement of Recording Equipment. This was only
funded at about 70 percent of the request, which should get
the agency well on its way at replacing the recording
equipment in many of the courtrooms, he stated.
The only item not funded was the number three priority -
$900,000 for Completion of Computerized Case Management
System. The Legislature had funded the purchase of the
software several years ago and Mr. Christensen said the
project was near completion. This funding request was for
hardware needed to make the system run efficiently. He
noted that ten percent of the request was needed to complete
the Year 2000 Compliance project.
Senator Adams asked if the Court System was requesting that
at least $90,000 reinstated for the Y2K project. Mr.
Christensen replied that in order to complete the project,
they would need those funds.
LEGISLATIVE AFFAIRS AGENCY capital projects were not
discussed, as there was no one present to represent the
agency. There were no questions by committee members.
Capital projects for the MUNICIPAL CAPITAL MATCHING GRANTS
were then discussed.
Senator Adams referred to the earlier DOT&PF conversation of
a saving potential of up to $9 million. He suggested
doubling Municipal Matching Grants with the difference. Co-
Chair Sharp said he didn't know how long-term the savings
would be.
Co-Chair Sharp announced that amendments needed to be turned
into the Senate Finance Secretary by 10:00 a.m. the next
day. He wanted an opportunity to review the amendments and
possibly discuss them with the submitting committee member.
He continued adding that Senator Pearce was working on
operating budget supplemental requests to determine what
would be added into this budget.
At Senator Adams' request, the co-chair said he would
provide a draft of the projects included in the AHFC bonding
bill within the hour.
ADJOURNMENT
Co-Chair Sharp adjourned the meeting at approximately
3:00 p.m.
SFC-98 (16) 5/2/98 pm
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