Legislature(2003 - 2004)
03/11/2003 09:07 AM 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
March 11, 2003
9:07 AM
TAPES
SFC-03 # 17, Side A
SFC 03 # 17, Side B
SFC 03 # 18, Side A
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately 9:07 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Senator Robin Taylor
Also Attending: REPRESENTATIVE BRUCE WEYHRAUCH; DAVID TEAL,
Legislative Fiscal Analyst, Legislative Finance Division; NICO BUS,
Acting Director, Division of Support Services, Department of
Natural Resources; JOHN MACKINNON, Deputy Director of Highways &
Public Facilities, Department of Transportation and Public
Facilities; KAREN MORGAN, Director, Division of Administrative
Services, Department of Public Safety; NICO BUS, Acting Director,
Division of Support Services, Department of Natural Resources;
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services; NANCY SLAGLE, Director,
Division of Administrative Services, Department of Transportation
and Public Facilities; JEFF OTTESON, Statewide Planning Chief,
Division of Statewide Planning, Department of Transportation and
Public Facilities
Attending via Teleconference: From Mat-Su: JIM SYKES; GARVAN
BUCARIA; From Fairbanks: FRED G. BROWN, Fairbanks Central Labor
Council; DEBBIE MILLER; From Anchorage: MATTHEW FAGNANI; BARBARA
HUFF-TUCKNESS, Legislative Director of Governmental Affairs,
Teamsters Local 959; KIM DUKE, Executive Director, Arctic Power;
JAMES ARMSTRONG, Manager, Transportation Planning, Municipality of
Anchorage; TED VOLIN
SUMMARY INFORMATION
HB 100-SUPPLEMENTAL APPROPRIATIONS: FAST TRACK
HB 101-APPROP: GRANT TO ARCTIC POWER FOR ANWR
The Division of Legislative Finance, the Department of
Transportation and Public Facilities, the Department of Natural
Resources, the Department of Public Safety, and the Department of
Health and Social Services responded to questions regarding the
bill. Additionally, the Committee heard public testimony,
incorporated HB 101 into HB 100, adopted three of four amendments,
and reported HB 100 from Committee.
SB 71-TRANSPORTATION ENHANCEMENT PROJECTS
The Committee heard from the sponsor, the Department of
Transportation and Public Facilities, and the Municipality of
Anchorage. The bill reported from Committee.
CS FOR HOUSE BILL NO. 100(FIN)
"An Act making supplemental and other appropriations; amending
appropriations; making appropriations to capitalize funds; and
providing for an effective date."
CS FOR HOUSE BILL NO. 101(FIN) am
"An Act making special appropriations to promote the opening
of the Arctic National Wildlife Refuge for oil and gas
exploration and development; and providing for an effective
date."
This was the first hearing for HB 100 in the Senate Finance
Committee, and the second hearing regarding HB 101.
Co-Chair Wilken moved to adopt SCS CS HB 100(FIN), 23-GH1061\S, as
the working document.
Senator Hoffman objected for explanation.
Co-Chair Green referred the Committee to the worksheet titled
"Senate Finance Committee Supplemental CS Worksheet - Changes from
the HFC Committee Substitute to the SFC Committee Substitute" [copy
on file]. She noted that the worksheet depicts the Governor's
original Supplemental Budget recommendations, the House of
Representatives committee substitute recommendations, and the
Senate committee substitute recommendations. She specified that the
Senate worksheet budget recommendations are included in the Version
"S" committee substitute.
Section 1(a)
Department of Administration
Office of Public Advocacy
Program shortfunding was estimated to be $2,200,000 in May.
Caseload growth has added an additional $1,100,000. An
additional $2,473,500 is requested to meet the total need of
$3,300,000.
Governor's Supplemental Budget:
$3,300,000 general funds
House of Representative Committee Substitute:
$2,200,000 general funds
Senate Committee Substitute:
$3,300,000 general funds
Co-chair Green expressed that the Senate committee substitute has
adopted the Governor's budget for this item. Co-chair Green
expressed that, by providing this funding, the Senate would not
entertain additional supplemental requests for this program, as
opposed to the House position of providing a lesser supplemental
amount with the provision that additional supplemental requests
would be entertained.
Section 1(d)&(e)
Department of Administration
Public Defender
Program shortfunding was estimated to be $1,000,000 in May.
Caseload has added an additional $157,000. Funding is also
included to continue the mental health court attorney.
Governor's Supplemental Budget:
Total Funds: $1,230,000
$1,157,000 general funds
$ 73,000 MHTAAR
House of Representative Committee Substitute:
$1,000,000 general funds
$ 73,000 other funds
Senate Committee Substitute:
$1,000,000 general funds
$ 73,000 other funds
Co-chair Green explained that through discussions with the Public
Defender's Agency, it has been determined that the House and Senate
funding levels would be adequate.
Department of Administration
Senior Services
Caseload for general relief program is lower than anticipated.
(Funds to help offset Finances' supplemental.)
Governor's Supplemental Budget:
($300,000) general funds
House of Representative Committee Substitute:
$0 funds
Senate Committee Substitute:
$0 funds
Co-chair Green informed that the Senior Services program would
lapse at the end of the current fiscal year.
Section 2(c)
Department of Community and Economic Development
Alaska Science and Technology Foundation
Supplemental to appropriate grant repayments to the endowment
principal.
Governor's Supplemental Budget:
$0 funds
House of Representative Committee Substitute:
$130,000 other funds
Senate Committee Substitute:
$130,000 other funds
Section 2(d) & (e)
Department of Community and Economic Development
Alaska Science and Technology Foundation
Income is insufficient to fund appropriation due to stock
market declines. Fund source switch from income to endowment
and a reduction of $6,418,600 in the appropriation, leaving
authorization of $4,100,000.
Governor's Supplemental Budget:
($6,418,600) Sci/Tech Endowment funds
House of Representative Committee Substitute:
$0 funds
Senate Committee Substitute:
($6,418,600) other funds
Co-chair Green informed that a forthcoming amendment to the
committee substitute would retain the original language regarding
this section; however, she noted, the intent language regarding the
funding would change.
Senator Hoffman questioned the rationale for funding the Alaska
Science and Technology Foundation while lapsing the senior citizen
program.
AT EASE 9:13 AM / 9:16 AM
DAVID TEAL, Legislative Fiscal Analyst, Legislative Finance
Division, Legislative Affairs Agency, explained that the FY 02
Operating budget specified approximately $10 million from the
earnings endowment for the Alaska Science and Technology Center
(ASTC) operations and grant funds for various entities.
Unfortunately, he continued, as a result of the downturn in the
Stock Market, the foundation "actually lost money during the year
and none of the $10 million materialized." He explained that these
items would replace the $10 million with $4,100,000 "straight from
the endowment itself" to fund approximately $1 million in
operational expenses and $3 million worth of grants.
Senator Hoffman asked the reason for funding the Center when the
Governor intends to terminate it.
Mr. Teal replied that this funding provides for the FY 03
operational costs of the program as well as the various grants that
have been awarded. He expressed that a forthcoming amendment would
clarify that the ASTF is "winding down."
Department of Community and Economic Development
International Trade
Authority to receive and expend registration receipts from the
Korea USA economic conference. The 2002 conference was held in
Korea; 2003 will be in Anchorage. Subsequent years'
conferences will be held in other western states.
Governor's Supplemental Budget:
$115,000 Statutory Designated Program Receipts
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Co-Chair Green informed that this item was deleted at the
Department of Community and Economic Development's request.
Section 3(c)
Department of Corrections
Inmate Health Care
Prior year bill for dialysis services for an inmate in FY
2002. The vendor inadvertently billed a wrong party and
recently discovered the error. An appropriation is needed in
order for the department to pay the bill of $187,680.05
Governor's Supplemental Budget:
$187,700 general funds
House of Representative Committee Substitute:
$100,000 general funds
Senate Committee Substitute:
$100,000 general funds
Co-chair Green noted that the Senate accepts the House of
Representatives reduced funding level for this item.
Section 5
Division of Motor Vehicles
Disaster Relief Fund
Capitalize the fund for declared disasters: earthquake
$5,086.4 GF and $14,848.1 Fed; interior flood $1,268.0 GF and
$4,541.2 Fed; NW Arctic Borough fall sea storm $851.0 GF;
Kenai Peninsula flooding $3,571.0 GF and $11,704.5 Fed.
Funding for $830.0 GF and language for core emergency services
was deleted with the understanding it would be included in the
FY04 operating budget.
Governor's Supplemental Budget:
Total Funds: 42,700,300
$11,606,400 general funds
$31,093,900 Federal funds
House of Representative Committee Substitute:
$10,776,400 general funds
$31,093,900 federal funds
Senate Committee Substitute:
$10,776,400 general funds
$31,093,900 federal funds
Co-chair Green noted that the Senate accepts the House of
Representatives reduced funding level for this item. She noted that
the $851,000 general fund specified in the Supplemental need
language is identified as FY 04 services and should not be included
in this request.
Department of Education and Early Development
Foundation
General fund reduction due to preliminary actuals for
foundation program that reconciles initial October student
count to the electronic data.
Governor's Supplemental Budget:
($6,728,800) general funds
House of Representative Committee Substitute:
$0 general funds
Senate Committee Substitute:
$0 general funds
Co-chair Green stated that this item would allow the funds to lapse
at the end of the fiscal year.
Section 8(c)
Department of Health and Social Services
Subsidized Adoptions & Guard
Formula program shortfunding $2,000,000 and caseload growth
$833,300. Current funds projected to be fully expended in
April.
Governor's Supplemental Budget:
$2,833,300 general funds
House of Representative Committee Substitute:
$2,000,000 general funds
Senate Committee Substitute:
$2,000,000 general funds
Co-chair Green informed that the Senate committee substitute
accepts the House of Representative's funding allocation. She
continued that the Department has been directed to monitor the
foster care program for further savings.
Section 8(h)
Department of Health and Social Services
Vital Statistics
Operating costs driven by increased number of licenses and
certificates, including non-permanent positions to deal with
backlogs. Also covers rent as were able to move into new
facility earlier than anticipated.
Governor's Supplemental Budget:
$ 195,000 Statutory Designated Program
House of Representative Committee Substitute:
$ 100,000 other funds
Senate Committee Substitute:
$ 100,000 other funds
Co-chair Green stated that the Senate committee substitute accepts
the House of Representatives reduced funding level. She explained
that while the increased operating costs were approved, the $95,000
moving expense was not. She stated that the Department must absorb
that expense.
Section 8(i)
Department of Health and Social Services
Medicaid Services
Claims growth and match rate adjustment
Governor's Supplemental Budget:
Total Funds: 10,991,300
$28,055,800 general funds
($16,064,500) federal funds
($1,000,000) Statutory Designated Program
House of Representative Committee Substitute:
$23,200,000 general funds
($16,064,500) federal funds
($ 1,000,000) other funds
Senate Committee Substitute:
$23,200,000 general funds
($16,064,500) federal funds
($ 1,000,000) other funds
Co-chair Green expressed that the Senate accepted the House of
Representatives' reduced funding level with the anticipation that
internal Department cost controls would make up the difference.
Department of Health and Social Services
Kenai Peninsula Youth Facility
Funds to hire superintendent and unit leader and provide other
operating funds needed to open the facility that will be
completed April 15, 2003
Governor's Supplemental Budget:
$ 155,200 general fund
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Department of Health and Social Services
McLaughlin Youth Facility
Population increase of 18.9% has resulted in increased
overtime of $16,7 and laundry, food, and clothing costs of
$9.1. FY2002 average population was 179.6 while FY2003 has
averaged 198.3
Governor's Supplemental Budget:
$ 25,800 general funds
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Department of Health and Social Services
Fairbanks Youth Facility
Extraordinary medical costs including MRI, extensive brain
testing, weekly allergy shots, and surgery
Governor's Supplemental Budget:
$ 20,000 general funds
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Department of Health and Social Services
Johnson Youth Facility
Medical costs for physical therapy for 1 youth
Governor's Supplemental Budget:
$ 11,500 general funds
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Department of Health and Social Services
Bethel Youth Facility
Population increased 34.7% over Fy2002 and extraordinary
medical costs estimated at $35.0
Governor's Supplemental Budget:
$ 66,100 general fund
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Co-chair Green stated that both the House of Representatives and
the Senate denied the youth facility funding.
Department of Law
Fourth Judicial District
Fairbanks DA office had unexpected move and lease costs due to
the Department of Transportation and Public Facility's closure
of Fairbanks court building.
Governor's Supplemental Budget:
$ 95,000 general fund
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Co-chair Green stated that the Senate joined with the House of
Representatives in denying funding for this item.
Section 14(a)
Department of Public Safety
Fish and Wildlife Protection
Increased costs for vehicle, heating oil, electricity,
airplane and helicopter fuel
Governor's Supplemental Budget:
$229,300 general funds
House of Representative Committee Substitute:
$189,100 general funds
Senate Committee Substitute:
$ 189,100 general funds
Co-chair Green voiced that the Senate committee substitute concurs
with the House of Representative budget reduction. She stated that
the Department has specified that this amount is sufficient
provided that one vessel be dry-docked.
Section 14(b)
Department of Public Safety
Criminal Records
Decrement to offset DCED Div. Of Insurance Increment
Governor's Supplemental Budget:
Receipt Supported Services
House of Representative Committee Substitute:
($100,000) other funds
Senate Committee Substitute:
($100,000) other funds
Co-chair Green explained that this is an authorization to collect
and transfer fees to the Division of Insurance. She stated that the
Senate accepts the House of Representatives budget amount.
Department of Public Safety
Fish and Game Fund
Revise language appropriating criminal fines, penalties, and
forfeitures into the Fish and Game Fund based upon an analysis
conducted by the Department of Public Safety and the Court
System.
Governor's Supplemental Budget:
$0 funds
House of Representative Committee Substitute:
$0 funds
Senate Committee Substitute:
$0 funds
Co-chair Green reminded the Committee of the Department's testimony
regarding the amount of fines and penalties levied verses the
amount collected by the Court System. She specified that the
Department should work with the Department of Law and the Court
System to determine the actual fine amounts collected.
Section 16(o)
Department of Transportation and Public Facilities
Central Region Highways and Aviation
Carry forward excess Whittier Tunnel toll revenue above FY
2002 appropriation to comply with federal code requiring all
toll revenue to be spent on the toll facility.
Governor's Supplemental Budget:
$819,100 Receipt Supported Services
House of Representative Committee Substitute:
$819,100 general funds
Senate Committee Substitute:
$819,100 general funds
Co-chair Green announced that the Senate restored the excess toll
money collected by the Whittier Tunnel operation and specified its
usage for tunnel maintenance.
Section 16(q)
Department of Transportation and Public Facilities
Regional Admin Services
Increased cost per negotiated contract with the Confidential
Employees Association, retroactive to September 2001 and full
FY 2003 costs.
Governor's Supplemental Budget:
Total funds: $72,600
$25,700 general funds
$46,900 other funds
House of Representative Committee Substitute:
$46,900 other funds
Senate Committee Substitute:
$46,900 other funds
Co-chair Green noted that the Senate accepts the House of
Representatives' reduction of $25,700.
Section 17(b)
State Debt
Debt
Reduce debt retirement fund appropriation for school debt
reimbursement by amount of FY2002 cigarette tax carry forward
and increased tax collections.
Governor's Supplemental Budget:
($2,593,900) Debt RF
House of Representative Committee Substitute:
($2,593,900) other funds
Senate Committee Substitute:
($2,593,900) other funds
Section 17(b)
State Debt
Debt
Increase School Fund appropriation for school debt
reimbursement by amount of FY2002 cigarette tax carry forward
and increased collections.
Governor's Supplemental Budget:
$2,593,900 School Fund
House of Representative Committee Substitute:
$2,593,900 other funds
Senate Committee Substitute:
$2,593,900 other funds
Co-chair Green explained that these items reflect "a duplication
and correcting entry."
Section 18
Miscellaneous Claims
Fish and Game
Admin Support
Miscellaneous Claims and Stale-dated Warrants $3,000.00.
Feb 25 Amd. Increase by $254.31 to $3,254.31
Governor's Supplemental Budget:
$3,300 general funds
House of Representative Committee Substitute:
3,300 general funds
Senate Committee Substitute:
$3,300 general funds
Co-chair Green explained that this item addresses an additional
claim that was presented.
Section 20(b)
Department of Community and Economic Development
Named Recipient AS37.05.316
Grant to Arctic Power for educational efforts to open ANWR
Senate Committee Substitute:
$1,100,000 general funds
Section 20(c)
Department of Community and Economic Development
Grant to Municipality AS37.05.315
Grant to City of Kaktovik for educational efforts to open ANWR
Senate Committee Substitute:
$50,000 general funds
Section 20(d)
Department of Community and Economic Development
Named Recipient AS37.05.316
Grant to Native Village of Kaktovik for educational efforts to
open ANWR
Senate Committee Substitute:
$50,000 general funds
Section 20(e)
Office of the Governor
Support for efforts to open ANWR
Senate Committee Substitute:
$100,000 general funds
Co-chair Green expressed that these four items have been
incorporated into the Senate committee substitute with the intent
to fund Arctic Power in the supplemental budget.
Co-chair Green mentioned that there is a technical error in Section
21 whereas the date should be correctly identified as FY 2003
rather than FY 2002. She noted that this would be corrected in the
forthcoming version of the bill.
Senator Hoffman questioned the reason the increased youth
population at the Nome Youth Facility, as specified in Section
8(g), warranted funding, while the Bethel Youth Facility, which
similarly experienced the same but "substantially higher" average
daily population problem, was denied funding. He opined that if
Nome receives funding then Bethel should be funded accordingly. The
identified sections read as follow.
Section 8(g)
Department of Health and Social Services
Nome Youth Facility
Staff for population increase. Average daily population has
increased 36% over FY 2002. Facility capacity is 6. Average
population in FY 2002 was 6.9 while FY 2003 average population
has been 9.3
Governor's Supplemental Budget:
$100,800 general funds
House of Representative Committee Substitute:
$100,800 general funds
Senate Committee Substitute:
$ 100,800 general funds
Department of Health and Social Services
Bethel Youth Facility
Population increased 34.7% over FY 2002 and extraordinary
medical costs estimated at $35.0
Governor's Supplemental Budget:
$ 66,100 general fund
House of Representative Committee Substitute:
$ 0 funds
Senate Committee Substitute:
$ 0 funds
Co-chair Green declared "that corrective work" on the committee
substitute would begin once the committee substitute is adopted.
Senator Hoffman withdrew his objection to the committee substitute.
There being no further objections, Committee Substitute, Version
"S" was ADOPTED as a working draft.
Co-Chair Green restated Senator Hoffman's concern, and she
explained that the Bethel funding request was generated by medical
treatment for a single youth.
Senator Hoffman agreed that medical treatment generated the $35,000
portion of the request; however, he noted, the request additionally
includes $31,102 to provide for expenses generated by the increased
facility population. He stated that "this is exactly the same
justification" for funding the Nome facility, which did not have as
great a percent increase in occupants as Bethel did. He continued
that the Department indicates that it could not absorb this
expense.
Co-Chair Green announced that Committee members' questions would be
entertained before any amendments would be presented.
Senator Taylor inquired regarding the Herbert River pass through
grant specified in Section 13(c) that reads as follows:
Section 13(c)
Department of Natural Resources
Capital
National Coastal Wetlands Conservation grant pass thru to
Juneau for purchase of wetlands near Herbert River
Governor's Supplemental Budget:
$553,000 federal funds
House of Representative Committee Substitute:
$553,000 federal funds
Senate Committee Substitute:
$553,000 federal funds
Senator Bunde understood that the City & Borough of Juneau (CBJ) is
providing a local match amount.
NICO BUS, Acting Director, Division of Support Services, Department
of Natural Resources, informed that this request involves a federal
pass through grant to the CBJ for the sole purpose of purchasing
this parcel of land. He noted that the Members' packets contain a
letter [copy on file] addressed to Co-chair Green and Co-chair
Wilken, dated March 4, 2003 from the CBJ Mayor regarding this item,
and he continued that the CBJ recently approved the local match
funds.
Senator Taylor asked for further information about the parcel of
land being purchased.
Mr. Bus explained that the CBJ was interested in acquiring the land
which adjoins Amalga Harbor and the Boy Scout Camp and that the
local owner was interested in selling it. He shared that the CBJ
applied for and was awarded a federal grant; however, he continued,
because this federal grant money cannot be provided directly to the
City, the arrangement was made to process the grant through the
Department of Natural Resources.
Senator Taylor expressed that this transfer would change the status
of privately owned, municipal-taxable land to public land.
Additionally, he asked the size of the parcel of land.
Mr. Bus replied that he is unsure of the size of the parcel;
however, he explained that when the CBJ originally decided to
expand the Herbert River Park System, this small parcel of land
that is currently owned by a local contractor, was overlooked. He
shared that local citizens spoke against the private development of
this property, as it is located within the park unit. He continued
that the purchase of the parcel would allow the current city park
to be expanded.
Senator Taylor asked for confirmation that the private landowner
was prohibited from developing the land as he intended.
Mr. Bus responded that, "the local government and citizens decided
that development of the land "was not the best use of the land." He
continued that the owner agreed to sell the land to recoup his
investment.
Senator Taylor proclaimed that were the landowner prohibited from
developing the land "then the only option would be to sell it." He
declared that inclusion of this item indicates that the Legislature
is supportive of the CBJ's curtailment of private development
"wherever it feels like stopping development." He voiced that he
does not support this item.
Co-Chair Wilken asked that the location and size of the parcel of
land be provided to the Committee.
Co-Chair Green referenced the letter from the CBJ Mayor.
Senator Bunde communicated that the parcel of land is located near
Eagle Beach and comprises less than 100 acres.
Senator Taylor asked that the Department of Transportation and
Public Facilities provide further information regarding the Juneau
West Douglas Highway Extension specified in Section 16(c) that
reads as follows.
Section 16(c)
Department of Transportation and Public Facilities
Capital
Title change: Juneau West Douglas Highway Extension to Juneau:
Gastineau Channel Second Crossing
JOHN MACKINNON, Deputy Director of Highways & Public Facilities,
Department of Transportation and Public Facilities responded that
this request transfers a $1,660,000 appropriation from the Juneau
West Douglas Highway Extension to the Gastineau Channel Second
Crossing. He stated that this money was originally appropriated a
few years prior to allow the Department of Transportation and
Public Facilities, the CBJ, and Goldbelt Native Corporation to
cooperatively develop a road in order to develop West Douglas
Island land. He stated that a master plan that included a road
right-of-way corridor and other preliminary planning was developed.
However, he continued, subsequent to this endeavor, Goldbelt
determined that continuation of the project was not the best use of
their resources at the time. Thus, he specified, the request to
transfer the remaining funds to the Gastineau Channel Second
Crossing Environmental Impact Statement (EIS) project was
developed.
Co-Chair Green concluded, therefore, that this request is a
language change.
Senator Taylor asked why the Second Crossing was chosen to receive
these funds rather than the project to extend the Juneau road
system 3.5 miles to Cascade Point.
Mr. MacKinnon asked for clarification as to whether Senator Taylor
was referring to the road project or to a project EIS that was
previously funded.
Senator Taylor voiced uncertainty to the specifics of the project;
however, he continued, the project's discussion included the road
extension, ferries, and ferry terminals.
Mr. MacKinnon understood that the Cascade Point Road extension EIS
has been completed and "the right-of-way is laid out." He stated
that were $5.8 million funding provided, the project could proceed.
Senator Taylor expressed therefore, that rather than dedicating the
$1.6 million to the Gastineau Channel Second Crossing, that amount
could be transferred to the Cascade Point Road extension. He asked
whether the Department could identify additional federal funding
authority to support this effort.
Mr. MacKinnon responded that he is unsure.
Senator Taylor expressed frustration with the delay regarding the
extension of the Cascade Point Road. He asked the Department to
investigate options toward developing a ferry terminal at Cascade
Point.
Mr. MacKinnon stated that updated information regarding the status
of Cascade Point would be provided.
Senator Hoffman asked "the logic" of the aforementioned $40,000
reduction for Department of Public Safety in Section 14(a).
Co-Chair Green restated the Department's position that the reduced
budget amount would be sufficient provided that a Department
fishery enforcement boat were dry-docked.
KAREN MORGAN, Director, Division of Administrative Services,
Department of Public Safety agreed that were the FY 04 budget
approved, additional money would not required, provided that the
fisheries patrol vessel, the P/V Woldstad, is dry-docked "at the
end of the season." She communicated that the House of
Representatives budget proposal specifies that additional funding
would be considered for the Department "at the end of session" were
the Governor's budget proposal for this item not adopted.
Senator Olson asked for further information regarding the marine
component funding as the backup material for this item specifically
mentions aircraft and vehicles without mention of marine equipment.
Ms. Morgan acknowledged that this is correct. She explained that
interagency transfers would be required to transfer the marine
equipment funding to the vehicle and aviation components.
Senator Hoffman asked how "the necessary enforcement" of the
fisheries "in the vast area" of the Bering Sea would be provided
were the P/V Woldstad dry-docked on a long-term basis.
Ms. Morgan replied that sufficient fuel funding would be provided
for other vessels, including the P/V Stimson, to provide the
fishery's enforcement coverage. However, she expressed, that were
the P/V Woldstad dry-docked, some areas' coverage would be
negatively affected, and she continued, the Department is
developing plans to determine "which fisheries would be covered and
which ones would not be."
Senator Hoffman asked the length of time required for the P/V
Stimson to travel from Kodiak to the Pribilof Island area.
Ms. Morgan voiced uncertainty to the length of the trip; however,
she specified that this issue would be addressed in the fishery
enforcement planning discussion.
Senator Hoffman declared that because of the large fisheries
enforcement coverage area, the Department's plan to use one patrol
vessel "does not make sense." He stressed that "the vast distance"
between Kodiak and the Pribilof area is an argument in support of
maintaining two patrol vessels rather than one.
Senator B. Stevens informed that a voyage from Kodiak to the
Pribilofs would take approximately five days. He voiced concern
regarding the Department's plan to transfer marine equipment
component funding to vehicle, heating oil, and aviation.
Ms. Morgan verified that it is correct that available monies in the
marine component would be transferred to the other components.
Senator B. Stevens surmised that dry-docking the P/V Woldstad prior
to the end of the FY 03 fiscal year would save the Department
approximately $40,000 in budgeted refueling expenses. Therefore, he
continued, this is the amount of funds that would be transferred to
the other components.
Ms. Morgan confirmed that the boat would be dry-docked "empty;"
however, she informed that rather than dry-docking the vessel on
th
June 30, the process would be coordinated with fishery openings in
the region. Therefore, she clarified, the dry-docking could occur
prior to that date.
Senator Olson asked whether normal dry-docking procedures include
dry-docking a boat void of fuel.
Ms. Morgan understood this to be normal procedure.
Senator B. Stevens communicated that this practice is typically
referred to as "mothballing" rather than "dry-docking" as the
latter term signifies that a vessel would be undergoing maintenance
and repair work.
Ms. Morgan concurred.
Senator Olson expressed that rather than storing a vessel without
fuel, in his experience, the preference is to store a vessel fueled
in order to avoid condensation and other problems in the fueling
system.
Senator Taylor opined that the Department "appears" to be planning
to eliminate a boat.
Ms. Morgan responded that the Department would be considering this
option during the upcoming evaluation process of Department vessels
and aircraft to determine the best use of equipment for air and sea
patrols.
Co-Chair Green informed the Committee that each of the State's
departments has been requested by the Murkowski Administration to
conduct a complete equipment inventory to verify that each piece of
equipment is efficiently used and maintained. She noted that
inventory reductions as well as lease and contractual services
would be considered as options. She clarified that the Department
of Natural Resources has not, as yet, determined that a fisheries
enforcement vessel should be eliminated, but rather that it is
being considered as part of the inventory evaluation process.
Senator Hoffman stated that this legislation does not provide funds
for leasing. He asked whether mothballing the vessel would produce
additional savings, specifically personnel savings.
Co-Chair Green specified that, initially, the review is
concentrating on an equipment review.
Senator Hoffman understood, but he furthered that encompassing
conversations should be conducted prior to, rather than after,
decisions are made.
Co-Chair Green specified that these conversations would be
conducted during FY 04 budget sessions rather than at the
supplemental budget meetings.
Ms. Morgan asked that the Senate provide consideration, as the
House of Representatives has, for additional funding "if the plan
does not move forward" and it is proven infeasible to dry-dock the
vessel.
Co-Chair Green declared, "this is a reasonable request."
Co-Chair Green announced for clarification, that HB 101 has been
incorporated into HB 100.
Co-chair Green stated that public testimony, with a three-minute
time limit, would be taken.
JIM SYKES, testified via teleconference from Mat-Su, and cited an
article titled "Pulling Strings From Afar" from the February 2003
AARP Bulletin [copy on file] that conveys that Arctic Power
"contributed $181,000 to a drug industry front group to generate
some letters of support for the opening of the Arctic Refuge." He
voiced that rather than being the recipient of more public money,
Arctic Power should be audited. He likened funding of Arctic Power
to funding "Microsoft to sell software…" He noted that British
Petroleum (BP) is not financially supporting Arctic Power, and he
asserted that BP, Exxon Mobile and Conoco Phillips, combined, "have
more money for public relations and lobbying activities than any
company or industry on earth." He voiced that the Committee should
fund alcohol, drug abuse and health care programs rather than
Arctic Power, and he voiced support of developing a Windfall
Profits tax system and the development of State land and resources
rather than contributing funds to Arctic Power.
FRED G. BROWN, Fairbanks Central Labor Council, testified via
teleconference from Fairbanks, in support of funding Arctic Power.
He stated that citizens and labor groups throughout the State have
worked in support of opening ANWR for oil exploration. He opined
that the growing national support of this endeavor could be
attributed to the educational efforts of Arctic Power.
DEBBIE MILLER testified via teleconference from Fairbanks and spoke
in opposition to funding Arctic Power. She stated that this funding
would be better utilized to fund "true" K-12 educational needs.
SFC 03 # 17, Side B 09:58 AM
Ms. Miller continued that Arctic Power's lobbying efforts have "a
poor track record" with money being spent on "direct lobbying"
rather than educational efforts. She stated that she is not opposed
to funding development efforts on State land and other specified
national land areas; however, she is opposed to oil exploration in
the Arctic Refuge. She stressed that no money should go to Arctic
Power.
MATTHEW FAGNANI, Employee, NANA Development Corporation and Member,
Arctic Power Board of Directors, testified via teleconference from
Anchorage and voiced support of funding Arctic Power, as it would
be beneficial to Alaska. He stated that development of Area 1002 of
ANWR would create jobs, allow "the resource State of Alaska" to
develop and explore its natural resources, provide lease and
royalty payments to the State's budget, and contribute to the
nation's need for oil. He stated that the support of opening the
1002 area of ANWR is growing and funding of Arctic Power would
further support the goal of opening the area.
BARBARA HUFF-TUCKNESS, Legislative Director of Governmental
Affairs, Teamsters Local 959, testified via teleconference from
Anchorage to voice support of funding Arctic Power on behalf of the
7,000 Teamster members in the State and the many non-union workers
who would be affected by the ANWR issue. She commented that
providing jobs by encouraging development of the State's resources
would provide revenue the State needs to operate. She stated that
Arctic Power's education efforts, even with a limited budget, are
effective.
GARVAN BUCARIA, testified via teleconference from Mat-Su and voiced
opposition to the use of public funds to further the lobbying
efforts of Arctic Power. He avowed that Arctic Power's lobbying
efforts, that have "consumed $8.3 million of public funds, to date,
is a waste of public funds." He noted that in addition to the
National Petroleum Reserve -Alaska (NPRA), oil companies are
furthering exploration efforts on a global scale, and "the
likelihood of oil companies to explore here [ANWR] is
questionable."
Co-Chair Wilken chaired the following portion of the meeting.
KIM DUKE, Executive Director, Arctic Power, testified via
teleconference from Anchorage and affirmed "Arctic Power has fully
complied with all State requirements with our funding to provide
monthly reports and yearly audits." She stated that "the single
mission" specified for the organization when it was founded in
1992, was "to open the coastal plain of ANWR." She stated that upon
completion of this mission, "the organization would be dissolved."
She reminded the Committee that oil pipeline flow from the North
Slope is currently at half capacity and that the industry is in
decline. She stated that the goal of developing the resources of
ANWR would change this trend and provide the State with additional
funding.
AT EASE 10:09 AM / 10:11 AM
Co-chair Green resumed chairing the meeting.
Amendment #1: This amendment inserts a new section into the bill on
page 2, between lines 29 and 30. The intent language reads as
follows.
This amended appropriation funds the Alaska Science and
Technology Foundation program through May 15, 2003. It is the
intent of the Legislature that all grants and contracts be
terminated promptly and that payments be settled and made
prior to May 15, in order to facilitate the shutdown of ASTF
program operations by May 15, 2003.
Co-Chair Wilken moved for the adoption of Amendment #1.
Co-Chair Green explained that, at the request of the Governor, this
amendment provides for the "wind down and shutdown of the ASTF
program by May 15, 2003."
Amendment #1 was ADOPTED without objection.
Amendment #2: This amendment adds a new subsection to the bill on
page 4, line 22. The new language reads as follows.
The sum of $66,100 is appropriated from the general fund to
the Department of Health and Social Services, Bethel Youth
Facility, for the fiscal year ending June 30, 2003, for
additional operating costs.
Senator Hoffman moved for adoption of Amendment #2.
Co-Chair Green objected for explanation; however, she noted that
this amendment addresses Senator Hoffman's earlier concern that the
Bethel Youth Facility, which incurred increased occupancy rates
similar to the Nome Youth Facility, was insufficiently funded to
provide for increased occupancy operational expenses.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, explained that a
Department memorandum [copy on file], dated March 3, 2003 and
addressed to the Co-Chairs, provides answers to a variety of
rd
questions that arose during the March 3 meeting.
Ms. Clarke commented that both the Nome and Bethel Youth Facility
Resident Bed Count issue is addressed on page three of the letter.
She expressed that the Bethel Bed Count reflects a 46 percent
increase over the previous year and the Nome Bed Count reflects a
44 percent increase. She voiced that the overcrowding situation at
these facilities is of concern; particularly as the eight-bed
detention and eleven-bed treatment facility at Bethel houses some
"very serious crimes against persons" offenders. She voiced support
for the amendment.
Co-chair Green asked whether the youth who required medical
assistance while at the Bethel facility qualified for Native Health
coverage.
AT EASE 10:14 AM / 10:17 AM
Ms. Clarke responded that this issue is addressed, on page three of
the memorandum, which reads as follows.
Is DJJ obligated to pay for what ever a youth in detention
needs? Is there a medical review group that makes a decision
on what DJJ will pay for? What is the policy on paying for
medical items? Aren't most of the kids in Bethel covered under
IHS (not Medicaid IHS, but regular IHS); why do we have to pay
for the medical care?
DJJ pursues other forms of payment for resident health care
if/when possible, including checking with parents to determine
if they have health insurance to pick up the cost. The
division's facilities do not have a medical review team that
makes a decision on what we will pay for. The system that each
facility utilizes is to have the DJJ facility nurse examine
the youth to determine if there is a medical problem. If the
nurse determines that there is a serious medical concern that
requires physician follow-up, the nurse refers the youth to
the contracted medical doctor. Each DJJ youth facility adheres
to a set of policies and procedures. Although there are slight
variations in wording for the different facility policies, I
have included the relevant medical policies from both the
Bethel Youth Facility and the McLaughlin Youth Center's
policies and procedure manual.
As for whether Alaska Native residents in secure youth
facilities are covered by the Indian Health Service, we have
verified that "IHS is payer of last resort under federal law
(including Medicaid). The basic concept is that American
Indians and Alaska Natives (AI/AN) are state residents in the
manner as others living in a state and so if the state covers
health care for other residents (state facilities - like API -
corrections, juvenile justice, CAMA) that the AI/AN
populations must be treated as others are treated and that IHS
is not required to pay for health care." This information from
Medical Assistance is consistent with DJJ's experience, which
has been that Indian Health Service does not pay for resident
care when they are in secure youth facilities.
Senator Hoffman asked whether the child requiring medical treatment
was Alaska Native.
Ms. Clarke believed the youth to be Alaska Native, but stated she
would verify the information.
Ms. Clarke informed the Committee that the memorandum provides
additional information regarding the bed count for both Nome and
Bethel. She reiterated that the Department considers the Bethel
occupancy situation as "serious."
Ms. Clark continued that, while the Department has, at times,
transferred youth from an over-capacitated facility to another
facility, the expense of transporting youth and their escort back
to Bethel for required court dates "is not cost effective."
Co-Chair Green withdrew the objection.
Without further objection, Amendment #2 was ADOPTED.
Co-Chair Wilken moved to report SCS for CS HB 100(FIN), Version S
from Committee with individual recommendations and attached fiscal
notes.
Senator Taylor objected. He voiced dissatisfaction with the
responses to his concerns regarding the Herbert River land transfer
or the title change request for the West Douglas Island road
extension to the Gastineau Channel Second Crossing.
[Note: The motion to report the bill from Committee is removed
later in the hearing.]
Amendment 3: This amendment deletes Sections 13(c) and 16(c).
Senator Taylor moved for adoption of Amendment 3.
Senator Green objected for explanation.
Senator Hoffman requested that the amendment be divided to address
each section separately.
Senator Taylor agreed.
[Note: Rather than dividing the amendment, it was replaced with
Amendments 3 and 4.]
Amendment #3 (as amended): This amendment deletes Section 13(c) of
the bill that reads as follows.
(c) The sum of $553,000 is appropriated from federal receipts
to the Department of Natural Resources for a United States
Department of the Interior coastal wetlands grant to be passed
through to the City and Borough of Juneau to go toward the
purchase of a Herbert River parcel.
Senator Taylor moved for adoption of Amendment #3 as amended.
Senator Olson inquired as to whether prohibiting this pass-through
grant would benefit the State.
Senator Taylor clarified that rather than preventing the grant from
occurring, he is requesting that the grant be addressed in the FY
04 regular capital budget rather than in the fast track FY 03
supplemental budget. He stated that this delay would provide time
to receive further information regarding the reason to remove
private land from the municipal tax roll in addition to the reason
for prohibiting the owner to develop the land.
Senator Bunde asked for confirmation that both the fast track
supplemental request and the regular supplemental request are now
incorporated into one bill.
Co-chair Green affirmed that this is correct.
Senator Bunde objected to Amendment #3. He stated that he is a
strong proponent of local government control and if the citizens of
Juneau wish to proceed with this project, he could not oppose it.
Senator Hoffman voiced support of local control; however, he noted
that Senator Taylor's question should be "satisfactorily" answered
before the project should proceed.
AT EASE 10:24 AM / 10:28 AM
REPRESENTATIVE BRUCE WEYHRAUCH shared that the federal grant for
this property results from efforts of the Southeast Alaska Land
Trust efforts, and that the CBJ recently appropriated its portion
of the funds required to purchase the property from "the willing
seller." He stressed that this transaction is not the result "of a
forced sale." He voiced that the purchase of the property would
allow the area to be developed for more recreational opportunities,
and he stated that the City has identified this purchase as a
priority.
Senator Taylor inquired as to the title-holder of the Herbert River
parcel of land.
Representative Weyhrauch responded that Mr. Tonsgard and Channel
Construction Company own the land.
Senator Taylor asked how Mr. Tonsgard has used the land.
Representative Weyhrauch understood that logging has occurred on a
portion of the property.
Senator Taylor inquired as to whether the owner submitted
development plans to the CBJ.
Representative Weyhrauch responded that other than a dispute
between the City and Mr. Tonsgard regarding access to the Boy Scout
Camp, he is unaware of any development plans being submitted. He
stated that acquisition of this land has been a long-term goal of
the City.
Co-chair Green asked when Mr. Tonsgard acquired the property.
Representative Weyhrauch was unaware of the acquisition date, but
commented that the date could be provided to the Committee.
Senator Olson understood that, rather than removing the item in its
entirety from the budget, the intent of the amendment is to clarify
the reason for including this item in the supplemental budget
rather than in the FY 04 budget.
Representative Weyhrauch replied, "time was of the essence to move
this forward" as the acquisition hinged on a number of variables.
He stated that the acquisition was previously delayed until the
federal funding was secured. Now that that is in place, he
continued, the City is moving quickly to finalize the purchase.
Co-Chair Green asked whether a federal grant lapse issue or another
similar issue is the primary reason this item is included in the
supplemental budget rather than in the FY 04 budget.
Representative Weyhrauch replied that this information would be
forthcoming.
Senator Hoffman informed that the backup information specifies that
Channel Construction has applied for permits to harvest timber,
extract gravel, and process minerals on site as well as a land use
zoning change. He stated that the requests remain "under the City's
preview."
Senator Taylor requested that additional review time be allowed for
this item, and he voiced that its inclusion in the FY 04 capital
budget rather than in the supplemental budget would be appropriate.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson, Senator Taylor, Co-chair
Wilken and Co-chair Green
OPPOSED: Senator Bunde and Senator B. Stevens
The motion PASSED (5-2)
Amendment #3 was ADOPTED.
Co-chair Green reminded the Committee that the Herbert River item
is a conferential item and is subject to amendment on the floor.
Amendment #4: This amendment deletes Section 16(c) that reads as
follows.
(c) Section 1, ch.135, SLA 2000, page 33, lines 15 and 16, is
amended to read:
ALLOCATIONS
Juneau: Gastineau Channel Second Crossing [WEST DOUGLAS
HIGHWAY EXTENSION] (ED 3-4) $1,660,000
Senator Taylor moved for adoption of Amendment #4. He explained
that as presented, this item would allow funding allocated to the
extension of the North Douglas Highway to be transferred to fund a
study for a second crossing on Gastineau Channel; however, he
requested that inclusion of this item be removed from the
supplemental budget and considered as a FY 04 capital budget item.
Co-chair Green asked the Department whether this is a time
sensitive item.
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities explained "that
this name change would bring the appropriation in line with a
Congressional high priority," earmarked project. She stated that
the CBJ is currently undertaking preliminary design work for this
project, and she informed that $600,000 funding was made available
for the project in FY 03 in a similar name change process. She
stated that this funding would provide for a continuation of the
process, without delay.
Co-Chair Green asked the status of the West Douglas Highway
extension.
Senator Taylor responded that due to the Native Corporation's shift
in project emphasis, the road is not an immediate need. He asserted
that "expediting" the extension of the Juneau road system to
Cascade Point should be a top priority as it would provide new
jobs, a better Southeast Alaska transportation system, and would
reduce ferry system expenses by allowing two round trips daily up
northern Lynn Canal. He stressed that this is more important than
providing convenience to the residents of Douglas Island.
Ms. Slagle clarified that the road extension to Cascade Point is on
hold until completion of the Juneau Access Environmental Impact
Statement (EIS) fragmenting the project would jeopardize federal
highway funding, and therefore she declared, the Department could
not proceed with the project. However, she advised, the Native
Corporation could proceed. She stated that while the Gastineau
Channel Crossing is on the CBJ project list, the Cascade Point
project is not.
Senator Taylor asked for verification that the funds appropriated
by the Legislature to the Cascade Point Road approximately four
years earlier, could not be utilized until the entire EIS, "which
includes a 90-mile road via Lynn Canal to Skagway," is completed.
Ms. Slagle affirmed that the Federal Highway Administration
mandates that an EIS be completed before construction could begin
on any portion of the project. She stressed that any construction
"would taint" the project by implying that the Department has make
decisions regarding the project in advance of an EIS being
finalized.
Ms. Slagle stated that the legislative Cascade Point appropriation
"is still sitting there," and has not been incorporated into the
Statewide Transportation Improvement Program (STIP).
JEFF OTTESEN, Acting Director, Division of Statewide Planning,
Department of Transportation and Public Facilities confirmed that
the project is pending upon completion of the federal requirement
for an EIS. However, he noted the Juneau Access project has
recently "been reactivated," and he attested, upon completion of
the EIS, the Department would appropriate funds for design and
development.
As a point of order, Co-Chair Wilken withdrew the motion to report
the bill from Committee.
There being no objection, the motion was removed from
consideration.
Co-chair Green stated that the bill and amendments are before the
Committee for discussion.
Co-Chair Wilken asked whether a Gastineau Channel Second Crossing
EIS is being conducted.
Mr. Ottesen stated that a Request for Proposal (RFP) for an EIS is
currently being conducted.
Co-chair Wilken asked the anticipated completion date for the EIS.
Mr. Ottesen responded that typically a project of this magnitude
would take up to three years to be completed.
Senator Taylor further questioned the inclusion of the project in
the supplemental fast track request, considering that the EIS on
the second bridge crossing would not be completed for several
years.
Ms. Slagle clarified that this funding would provide for the EIS
process.
Co-Chair Green asked whether this item could be addressed in the FY
04 budget.
Ms. Slagle informed that this item is included in the Supplemental
Budget at the request of the CBJ in order to receive the funding
authority and continue the EIS process. She expressed that this is
an "appropriate" item for the supplemental.
AT EASE: 10:31 AM / 10:31 AM
Senator Bunde opined that the Anchorage Coastal Trial is a similar
situation, and he urged support for local preference.
Amendment to Amendment #4: This amendment additionally deletes the
project title change section involving the Nondalton Airport
project, the Anchorage Muldoon Road Landscaping and Pedestrian
Improvements project, and the Nunapitchuk Airport Relocation
project as specified in Sections 16 (a)(b)(d) and (e).
Senator B. Stevens moved to amend Amendment #4. He asserted that
were the Committee to eliminate one project title change item then
consideration should be given "to remove all title changes in the
supplemental budget."
Senator Olson objected. He stated that some of these projects are
time critical.
AT EASE: 10:34 AM / 10:34 AM.
A roll call was taken on the motion to amend Amendment #4.
IN FAVOR: Senator B. Stevens, Senator Bunde, and Senator Hoffman
OPPOSED: Senator Olson, Senator Taylor, Co-chair Wilken, and Co-
chair Green
The motion FAILED (3-4)
The motion to amend Amendment #4 FAILED.
Amendment #4 was again before the Committee.
A roll call was taken on the motion.
IN FAVOR: Senator Taylor and Co-chair Green
OPPOSED: Senator Hoffman, Senator Olson, Senator B. Stevens,
Senator Bunde, and Co-chair Wilken
The motion FAILED (2-5)
Amendment #4 FAILED to be adopted.
Co-chair Wilken moved to report SCS CS HB 100, Version 23-GH1061\S,
as amended, from Committee with individual recommendations.
There being no objection, SCS CS HB 100 (FIN) reported from
Committee.
AT EASE 10:40 AM / 10:42 AM
CS FOR SENATE BILL NO. 71(TRA)
"An Act relating to funding for transportation projects; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
[NOTE: The initial portion of the sponsor's testimony was not
recorded due to recording technicalities. In lieu of verbal
testimony, Senator B. Steven's Sponsor's Statement is incorporated
into the minutes as follows.]
Sponsor Statement
Committee Substitute for SB 71:
Transportation Enhancement Projects.
Federal law, TEA-21, and its predecessor, ISTEA, mandate that
states expend at least 10% of federal Surface Transportation
Program funds on enhancement such as trails and landscaping.
Over the past several years, the State of Alaska has expended
amounts well beyond the minimum requirements for enhancement
projects that could otherwise be applied to roadway
construction and improvement projects. CS for Senate Bill 71
decreases the amounts allocated for the TRAAK program and
other enhancement projects to be in line with federal minimum
requirements to free up millions of dollars to be available
for roadway construction and improvement projects.
The committee substitute for Senate Bill 71 proposes to reduce
the Department of Transportation's allocation of non-
restricted federal apportionments to projects classified under
the Trails and Recreational Access Program (TRAAK). Under
current DOT regulations, the department allocates at least 8%
percent to TRAAK projects; CS for SB 71 reduces the allocation
to not more than 4%. The bill redirects the other 4% into the
DOT allocation for projects classified under the Community
Transportation Program, increasing this program's allocation
to 37%.
Administrative Order #161 of the previous administration in
1996 established the Trails and Recreational Access for Alaska
(TRAAK) program to address features such as trails, scenic
highways, recreational access points and interpretive
facilities. From 1998 to 2003, over $150 million was allocated
for the TRAAK projects while the federal minimum for
transportation enhancement (i.e. trails, landscaping scenic
beautification) expenditures was $43 million; more than a 200%
increase. These expenditures do not include separate bike
paths or waysides that were included in individual
construction projects in the National Highway System program,
the Alaska Highway system or Community Transportation Program.
Only a municipality that is federally recognized as a
Municipal Planning Organization (MPO) would be impacted by
this section (c) of this legislation, which are Anchorage and
Fairbanks. In 1998, the Anchorage Metropolitan Area
Transportation Solutions (AMATS) adopted a policy of
programming 15% of its transportation funding allocation for
enhancements. The three-year average at 15% for transportation
enhancements from 2000-2002 Transportation Improvement Program
averaged roughly $5.5 million. The Department of
Transportation is expecting the Anchorage share of TEA-21
federal-aid transportation funds to increase within the next
Statewide Transportation Improvement Program. With the
anticipated overall increase, 10% of the three-year average of
federal-aid highway funds allocated to AMATS during 2004-06
will be roughly $5.8 million, slightly more than what was
allocated during 2000-2002.
[Note: Recording resumes.]
Senator B. Stevens directed the Committee to a spreadsheet titled
"Comparison of Minimum TE Expenditures Required Under Federal Law,
and Total Level of TRAAK Project Funding 1998-2003," [copy on file]
provided by the Department of Transportation and Public Facilities.
He explained that this information depicts the federal surface
transportation funding, the federal and State funding allocation,
and the total TRAAK Program allocation for the years 1998-2003. He
summarized that the federal and State ten percent match for these
years totaled approximately $43 million; however, he declared, the
State spent in excess of $150 million.
Senator B. Stevens advised that Section 1(a) of the bill addresses
the federal and State funding levels, and Section 1(c) addresses
AMATS. He stated that the spreadsheet titled, "Comparison of the
Anchorage Metropolitan Area Transportation Solutions (AMATS)
Enhancements Allocation at 10% and 15%,"[copy on file] provided by
that AMATS 2001-03 TIP and Draft 2004-06 TIP depicts the year 2000-
03 AMATS allocations, the actual amounts allocated, and the 15
percent and ten percent funding levels. He referenced the proposed
year 2004-06 program funding increases at the 15 percent and ten
percent levels, and he argued that, rather than remove money from
the Anchorage trail system, the ten percent level of funding
specified in this bill would allow the recent average of funds to
be maintained or increased while allowing more funding to be
allocated to actual road projects which, he advised, should be a
priority of the State.
Senator B. Stevens referred the Committee to the pie chart titled
"Distribution of Federal-Aid Transportation Formula Funds Per 17
AAC 05.155-200" within the "Trails and Recreation Access for Alaska
(TRAAK) Program" pamphlet provided by the Department of
Transportation and Public Facilities. He explained that the larger
of the two pie charts reflects that 41 percent of the federal
funding is allocated to fund the CTP (Community Transportation
Program) that funds the STIP. He stated that eight percent of the
total 41 percent funding is designated for TRAAK with the remaining
33 percent designated to fund the MPOs and all other State
transportation projects.
Senator Stevens summarized that Section 1(b) reduces the level of
TRAAK funding to four percent thereby increasing the CTP to 37
percent, which would benefit all statewide road projects.
Senator Olson commented that while he understands the concern
regarding road project funding needs, he asked whether this
legislation would affect rural trail funds. He emphasized the
importance of rural trails, which serve as the primary
transportation link for many communities
SFC 03 # 18, Side A 10:58 AM
Senator Olson continued that snow machine trail markings provide an
"essential link for people traveling between villages" in rural
areas of the State.
Senator B. Stevens stated that the intent of the bill is to
continue to fund TRAAK trail needs at the four percent level. He
stated that some of the projects on the "Tentative Advertising
Project Schedule as of Friday March 7, 2003" [copy on file]
provided by the Department of Transportation and Public Facilities
are not trail enhancement projects "but are actually large road
projects that are being funded." He pointed out that Item #12 is a
highway and that Items #13 and #14 are road rehabilitations. He
asserted that the TRAAK program should continue to provide funding
for "rural transportation corridors."
Senator Olson clarified that while he understands the intent of the
bill, he is requesting verification that the rural trails would not
be negatively impacted by this legislation.
JAMES ARMSTRONG, Manager, Transportation Planning, Municipality of
Anchorage, testified via teleconference from Anchorage and voiced
support for the bill. He noted that the March 3, 2003 letter from
the Municipality of Anchorage Mayor, George Wuerch, to Senator Ben
Stevens [copy on file] endorses the legislation.
TED VOLIN testified via teleconference from Anchorage to voice
support of the four percent TRAAK funding level as specified in the
bill.
Senator Hoffman voiced concern that, while this legislation would
result in more dollars being available for road improvement needs,
federal standards might prevent the money from being spent in rural
areas. Therefore, he suggested that consideration be given to
specifying an allocation for Rural projects.
Senator Hoffman asserted that restrictions should be imposed on the
TRAAK program to prevent further abuses in the program;
specifically to ensure that urban road projects should be required
"to vie" for designated road project funding rather than TRAAK
funds. He expressed that, without restrictions, rural areas would
be required "to compete" against larger community "mega-projects"
for funds of "a smaller pie."
Senator B. Stevens voiced that this legislation would provide an
additional $13 million "to meet all other State and local needs,"
which, he argued, would include Rural needs.
Mr. Ottesen voiced that the issue of whether rural trials that are
used by machines should be viewed as TRAAK or CTP projects has been
debated for years. He voiced the position that rural trails should
be recognized as part of the CTP program "as they are moving people
and their goods for the sake of commerce and daily living," rather
than being used "as a recreational asset." Therefore, he continued
they would be "more adequately funded" than they currently are if
the CTP funding increases from 33 percent to 37 percent.
Senator Hoffman countered that the Department's "ranking criteria"
rates Rural projects "very low" and "favors" higher service areas.
Mr. Ottesen assured that the formula would be revisited when the
next STIP is developed. However, he continued, that while many
Rural trails have been funded, the Department has experienced a
backlog of projects due to the difficulty in implementation. He
stressed that the Department supports village trail projects "as
they save lives," they help people move food and fuel from
community to community, and "they are a highway in the very real
sense of the word."
Senator Bunde understood that, were this bill adopted, $3 million
of AMATS funding and four percent of TRAAK funding, amounting to
approximately $13 million, would be available for road projects.
Senator B. Stevens clarified that the total amount of federal
funding would remain the same; however, he continued, four percent,
rather than the current eight percent, would be allocated for TRAAK
funding. He stated that this would result in additional CTP funds.
Mr. Ottesen verified that were the percent allocated to TRAAK
reduced to four percent, an additional $13 million would be
available for road projects in FY 04.
Senator Bunde surmised, therefore, that approximately $15 million
would be made available to transport people above the current
allocation.
Mr. Ottesen agreed.
Senator Olson asked whether this legislation would affect marine
transportation; specifically channel markings.
Mr. Ottesen explained that the State is unable to use federal
highway funds for ports or navigation aides. He voiced optimism
that, through the Denali Commission, these types of projects might
be eligible for funding, and he noted that the Department, in
anticipation of this funding, is supplying the Denali Commission
with pertinent information "on the types and needs that exist."
Senator Olson asked who is currently responsible for the
maintenance of channel markers in rivers.
Mr. Ottesen responded that "aides to navigation" are currently the
responsibility of the US Coast Guard.
Co-Chair Wilken asked the Department's position regarding the
legislation.
Mr. MacKinnon responded that the Department has issued a "Best
Interest Finding" from Commissioner Mike Barton, signed in January
2003, that reflects a Department funding reduction to TRAAK by
approximately $11.5 million for remaining half of federal fiscal
year 2003.
Senator Hoffman reiterated his concern that rural projects would be
competing for fewer TRAAK dollars; therefore, he asked whether the
additional monies available for CTP could be specified to address
rural needs. He further inquired as to whether language could be
added to the TRAAK program to ensure that the "mega-projects,
particularly the road projects," do not absorb the available
funding.
Mr. Ottesen conveyed that this money is designated as
Transportation Enhancement (TE) funding. He communicated that rural
projects are eligible through CTP and TRAAK; however, he noted, the
State has spent beyond the federal TE specifications for TRAAK
which has allowed for rural boardwalks and trail markings.
Therefore, he suggested, "a better approach might be to revisit"
the State formula to ensure that rural projects could "compete on a
even basis with more urban and suburban projects."
Senator B. Stevens moved to report CS SB 71(TRA) from Committee
with previous fiscal note and individual recommendations.
Senator Hoffman objected. He requested that the issue of rural
trail funding be addressed as the bill proceeds through hearings in
the House of Representatives.
Senator Hoffman withdrew his objection.
Without further objection, the bill REPORTED from Committee with
previous fiscal note #1, from the Department of Transportation and
Public Facilities.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 11:14 AM.
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