Legislature(2003 - 2004)
03/20/2003 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 20, 2003
9:07 AM
TAPES
SFC-03 # 26, Side A
SFC 03 # 26, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:07 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lyda Green, Co-Chair
Senator Con Bunde, Vice Chair
Senator Ben Stevens
Senator Robin Taylor
Also Attending: KAREN MORGAN, Director, Division of Administrative
Services, Department of Public Safety; DAN FAUSKE, CEO/Executive
Director, Alaska Housing Finance Corporation, Department of
Revenue; BRYAN BUTCHER, Legislative Liaison, Alaska Housing Finance
Corporation, Department of Revenue; LES CAMPBELL, Budget Director,
Alaska Housing Finance Corporation, Department of Revenue; WES
WEIR, Director, Division of Public Housing, Alaska Housing Finance
Corporation, Department of Revenue
Attending via Teleconference: From Anchorage: JULIE STINSON,
Department of Administration
SUMMARY INFORMATION
SB 100-APPROP: CAPITAL PROJECTS
The Committee heard presentations from the Department of Public
Safety and the Alaska Housing Finance Corporation. The Department
of Administration provided testimony pertaining to a joint
Department of Public Safety/Department of Administration request.
The bill was held in Committee.
SENATE BILL NO. 100
"An Act making capital appropriations and reappropriations;
capitalizing a fund; 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."
This was the fourth hearing for this bill in the Senate Finance
Committee.
Department of Public Safety
[Note: The Department of Public Safety FY 04 capital project
presentation is a continuation from the March 19, 2003 meeting.]
Fairbanks Public Safety Bldg - Indoor Firing Range Lead
Removal
$ 66,000 General Funds
Reference No.: 37779
Project Type: Renewal and Replacement
Category: Public Protection
Location: Fairbanks (University, Ester)
Election District: Unidentified Election District
Estimated Project Dates: 07/01/2003 - 06/30/2005
One-Time Project
The Department of Public Safety building in Fairbanks (state-
owned) requires removal of toxic lead contaminants in the
indoor firing range.
KAREN MORGAN, Director, Division of Administrative Services,
Department of Public Safety stated that this request would provide
funds to clean up toxic lead contamination associated with the
firing range in the Fairbanks' public safety facility.
APSIN Redesign Implementation Phases 4 and 5
$ 8,000,000 Federal Receipts
Reference No.: 37719
Project Type: Information Systems
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project
The Alaska Public Safety Information Network (APSIN) serves
over 2,600 local, state, and federal criminal justice users.
It's based on obsolete 1980s technology. The current system
has been updated to meet minimal requirements for the new
National Crime Information Center (NCIC) 2000 requirements,
but unless the State implements a modern, fully-integrated
system, Alaska will not have an effective criminal justice
information system. Federal grant funds have been received for
this project, and this request is for capital authorization
for those funds. The total request will also allow for future
expected federal awards.
Ms. Morgan explained that this request would allow the continuance
of a multi-phased project to update the Department's primary
criminal justice information system in order to meet federal
standards pertaining to criminal history data and reporting. She
stated that this update would allow information to be accessed by
local, state, and national enforcement agencies. She noted that the
system requirement analysis phase has been completed and that this
phase would address system design.
Co-Chair Wilken asked whether these funds would be sufficient to
complete the project.
Ms. Morgan voiced uncertainty as to whether the requested funds
would complete the design phase of the project. She shared that the
Department calculates the expense of each phase on the information
gathered from previous phases. She furthered that the next phase,
or "actual development" phase, is expected to require approximately
three million dollars.
Co-Chair Wilken asked whether a State match is required in order to
receive the federal funds.
Ms. Morgan responded that a State match is optional. She continued
that, were the State to allocate funds to this project, they would
be appropriated from the Department's general fund operating budget
appropriation.
Marine Fisheries Patrol Improvements
$ 1,080,320 Federal Receipts
Reference No.: 35825
Project Type: Health and Safety
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2003 - 09/30/2004
On-Going Project
The Alaska State Legislature urged the Division to seek
additional funds for its patrol efforts in Federal waters of
the North Pacific Ocean and the Bering Sea. This project is a
result of lengthy negotiations with the National Marine
Fisheries Service. Federally regulated marine fisheries occur
on a year round basis in the coastal and offshore waters of
the State of Alaska. Both the Federal and State Governments
share an interest in ensuing these fisheries are protected.
Ms. Morgan explained that the federal funding authority of this
request is, at this time, "doubtful," as it "may be diverted, in
whole or in part" to national homeland security. She stated that
the request is being presented in case funds become available.
Statewide Illegal Drug and Alcohol Use
$ 2,000,000 Federal Receipts
Reference No.: 38477
Project Type: Health and Safety
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2003 - 09/30/2005
One-Time Project
Rural Alaska continues to suffer serious, life threatening
effects from use of illicit drugs and alcohol. This federal
grant will allow the state to enhance the efforts of state
troopers, local law enforcement, and community policing teams
to reduce illicit drugs and alcohol. The use of these illicit
substances increases the prevalence of violent crimes such as
homicide, sexual assaults, robberies, burglaries and serious
domestic violence assaults in rural Alaska.
Ms. Morgan stated that this request pertains to a continuation of a
project to address illicit drug and alcohol use in the State. She
communicated that, "indications are" that these federal funds would
continue to be available to the State.
Rural Law Enforcement Training and Equipment
$ 1,500,000 Federal Receipts
Reference No.: 38479
Project Type: Health and Safety
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 09/30/2005
One-Time Project
The Department of Justice, Office of Community Oriented
Policing Services will be awarding the Alaska Department of
Public Safety $1,500,000 to train law enforcement personnel in
rural locations to increase their ability to deal with crisis
situations and to purchase equipment for better responses to
emergencies
Ms. Morgan stated that the Department has received this federal
funding in the past and anticipates receipt of them in FY 04. She
stated that these funds would be used primarily to support
"community oriented policing services throughout Alaska" with the
focus to provide training to local law enforcement personnel, such
as Village Public Safety Officers, in rural locations.
Co-Chair Wilken observed that the projected FY 04 funding amount is
almost triple the FY 03 funding level.
Ms. Morgan understood that these federal receipts would be
allocated over several years.
Communications' Systems Upgrade
$ 1,500,000 Federal Receipts
Reference No.: 38511
Project Type: Equipment
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
Phased Project - Underway
State Match Required
The Department of Justice, Office of Community Oriented
Policing Services, Law Enforcement Technology Program will be
awarding $1,500,000 to the Alaska Department of Public Safety
(DPS) to upgrade its communications' systems. DPS will work
the Alaska Department of Administration (DOA) to continue
coordination of this project. It may be spent on DPS-specific
emergency communications equipment, or on contracts related to
the department's emergency communications' needs. DPS may also
contract with DOA utilizing funding from this project for an
intra- and inter-jurisdictional strategy for communications
interoperability among federal, state, and local public safety
first responders in Alaska.
Ms. Morgan stated that this funding would allow for the continuing
implementation of the Alaska Land Mobile Radio (ALMR) communication
project. She continued that while the funds would primarily be used
to purchase equipment for the Department of Public Safety, related
ALMR related services provided by the Department of Administration
would also be funded. She voiced confidence that this federal
funding would be forthcoming, and she specified that the required
State match would be provided by the Department of Administration.
She stated that the Department of Public Safety would receive the
federal funds and that an inter-agency agreement would be
established with the Department of Administration.
Co-Chair Wilken asked for further information regarding how the
purchase of this equipment relates to the ALMR project.
Ms. Morgan shared that the equipment would improve communication
abilities between various law enforcement entities.
JULIE STINSON, Department of Administration, testified via
teleconference from an offnet site to state that these funds would
primarily address the need to enhance State Trooper equipment;
specifically to provide radios that would comply with the new ALMR
system and would expand coverage areas.
Ms. Morgan informed the Committee that another Department of Public
Safety capital project request is included on page 47, lines 5
through 11 in Section 7 of the bill, Version 23-GS1003\A that reads
as follows.
Sec. 7. DEPARTMENT OF PUBLIC SAFETY. (a) The proceeds from the
sale of four Department of Public Safety aircraft and surplus
aircraft parts and accessories are appropriated from the
general funds to the Department of Public Safety for the
purchase of replacement aircraft or for aircraft maintenance.
(b) The proceeds from the sale of one vessel and surplus
vessel parts and accessories are appropriated from the general
funds to the Department of Public Safety for the purchase of
replacement vessels or for vessel maintenance.
Ms. Morgan stated that this language would provide the authority to
use the proceeds from the sale of an aircraft and surplus aircraft
parts and accessories to be combined with previously appropriated
funds to purchase a replacement aircraft.
Department of Revenue
DAN FAUSKE, CEO/Executive Director, Alaska Housing Finance
Corporation, Department of Revenue stated that while he is
available to answer questions, the Corporation's Budget Director,
Les Campbell, would be presenting the Alaska Housing Finance
Corporation's (AHFC) capital budget project requests.
BRYAN BUTCHER, Legislative Liaison, Alaska Housing Finance
Corporation, Department of Revenue attended and was available to
answer questions.
Housing Loan Program/Teacher/Health Professionals Housing
$ 4,300,000 Corporate Receipts
Reference No.: 37918
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Housing Loan Program/Teacher Housing utilizes Corporate (AHFC)
funds to supplement the Corporation's popular housing
programs. This new program will help replace diminishing
arbitrage funds. These funds will allow AHFC to continue
current programs and expand business opportunities with new
Teacher Housing Program(s) and Health Professionals Housing
Program(s). It will also provide funds to support a statewide
housing conference.
LES CAMPBELL, Budget Director, Alaska Housing Finance Corporation,
Department of Revenue reviewed the Corporation's success in
managing arbitrage funds to provide low interest rate mortgage
loans to low-income people, senior citizens, and special needs
populations. He stated that this new program would enable AHFC to
continue to offer a program that has previously been funded by
arbitrage funds. In addition, he noted that the program would be
expanded to provide low interest housing loans to teachers and
health professionals.
Supplemental Housing Development Program
$ 4,500,000 Corporate Receipts
Reference No.: Ref 6323
Project Type: Construction
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2008
Supplemental Housing Development Program - Corporate (AHFC)
funds to supplement Federal (HUD) funds to construct decent,
safe and sanitary housing through regional housing authorities
established under AS 18.55.996. Funds are used to cover
housing development costs related to water distribution, sewer
hookups, electrical distribution systems, and road
construction to project site, site development, and energy
efficiency improvements. State laws limit the use of these
funds to 20% of the HUD's total development cost per unit.
These funds are prohibited from being used for administrative
or other costs of the housing authority.
Mr. Campbell read the project description as specified on page 3-5
of the "Alaska Housing Finance Corporation Executive Budget Summary
'Results-Oriented' Proposed FY 2004 Draft Capital Budget," dated
March 11,2003 [copy on file].
Co-Chair Wilken asked whether a list of the identified projects has
been provided to the Committee.
Mr. Campbell responded that the funds would be provided directly to
the Regional Housing Authorities who have developed a list of
projects. He furthered that the funding mechanism of this program
is the Native American Housing Self Determination Act (HSDA)
program. He stated that a total of approximately $50 million would
be appropriated to build new housing projects in rural areas
through this program.
Co-Chair Wilken referred to the list of projected outcomes as
specified on page 3-5 of the report, and he asked the identity of
the 20 communities in which the 400 affordable homes would be
built, as referenced in that list.
Mr. Campbell responded that AHFC has received a list of projects
that meet the eligibility requirements of this funding. He stated
that the list amounts to $11,710,000, and he noted that, due to the
limited funding, projects would be chosen from that list.
Co-Chair Wilken surmised, therefore, that AHFC would determine
which projects on the list would receive the funding.
Mr. Campbell concurred.
Co-Chair Wilken asked that a copy of the list be provided to the
Committee.
Low-Income Weatherization Program
$ 5,800,000
$ 1,800,000 Federal Receipts
$ 4,000,000 Corporate Receipts
Reference No.: 6332
Project Type: Renovation and Remodeling
Category: Housing / Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Low Income Weatherization Program - Federal US Department of
Energy (DOE) and Corporate (AHFC) funds to assist low- and
moderate-income families attain decent, safe, and affordable
housing through the weatherization and rehabilitation of
existing homes. Weatherization provides for fire safety
through furnace and electrical repairs, education, chimney and
woodstove repairs, and egress windows (installed during
bedroom window replacements).
Mr. Campbell read the project description as denoted on page 3-7 of
the Report.
Senator Bunde asked whether the Regional Funding Allocation
information, as referenced in the Report on page 3-8, reflects the
allocation of the total amount of the FY 04 request.
Mr. Campbell responded yes, and he stated that the proposed FY 04
funding percentages mirrors those of previous years.
Co-Chair Wilken asked whether the federal match portion of this
request is affected by the AHFC dividend that is paid to the State.
Mr. Campbell stated that there is no direct AHFC match required for
this request. He noted that the federal funds received would be
directly passed through to the Regional Housing Authorities.
Co-Chair Wilken pointed out that the federal funding history of the
program is random from year to year.
Mr. Campbell responded that the weatherization program would
receive $1.8 million in federal funding regardless of Legislative
action.
Mr. Campbell noted that due to [unspecified] restrictions on the
federal weatherization program, Corporate funds are required to
enable the weatherization program to be offered on a statewide
basis.
Senior Citizen's Housing Development Fund (SCHDF)
$ 2,000,000 Corporate Receipts
Reference No.: 6334
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Senior Citizens Housing Development Program - Corporate (AHFC)
funds for the development of senior citizen housing.
Competitively awarded grants are provided for the purchase of
building sites, site preparation, materials, construction, and
rehabilitation of existing housing. Organizations qualified to
apply include municipalities and public or private nonprofit
corporations. Additional components include grants for
accessibility modifications to senior homes and grants (up to
$25,000) for nonprofit senior organizations to pay for
preparation of plans and project feasibility studies,
appraisals, site preparation, and other pre-development
activities.
Mr. Campbell read the project description as specified on page 3-9
of the Report.
Senator Bunde asked that further information be provided regarding
applicant qualifications and specifics as to how the loan would be
applied to a successful applicant.
Mr. Campbell responded that this "Gold Program" could award a
successful applicant "a tax credit from the home program or the
senior housing program." He stated that, in addition, this tax
credit could be combined with a loan mortgage from the Corporation.
He stated that the Senior Housing program is included in this
program in order to make the overall program "viable."
Senator Bunde asked for further information regarding the benefits
awarded to an applicant.
Mr. Campbell stated that to qualify for the program, the applicant
must be a non-profit entity or a municipality. He stated that the
funds must be used to build senior housing.
Senator Bunde surmised therefore that once a senior meets the
requirements and is placed on the needs list, a non-profit would
build the housing. He asked what the senior's obligation would be
at that point.
Mr. Campbell responded that each program has different
requirements. He exampled that the tax credit program has specific
income level requirements.
Mr. Fauske interjected that federal guidelines for the tax credit
program include the requirement that the senior be 55 years of age
as compared to a minimum age of 60 as required by AHFC. He stated
that there are a variety of income restrictions offered in the
various programs, and he attested that AHFC works with entities and
attempts to "blend" the funding to allow the various projects to
work.
Senator Bunde surmised therefore, that this program would benefit
someone such as a senior who has a low income.
Mr. Fauske concurred.
Senator Bunde stated that his questioning is an attempt to show
that housing programs are available to assist seniors, as he
asserted, it is being argued that the elimination of the senior
citizens' Longevity Bonus Program would "throw seniors in the
streets."
Mr. Campbell noted that the housing for seniors that would be
provided in this legislation would be by the private sector.
Furthermore, he pointed out that, as such, the State would not be
responsible for the building's operation.
Mr. Fauske stated that in anticipation of a change in the Longevity
Bonus Program, AHFC investigated the affect that the loss of the
longevity bonus might have on senior participants who occupy public
housing through AHFC. He furthered that, based on AHFC
calculations, the loss of the Bonus would lower the senior's income
level, and thereby would lower the senior's rent obligation by
approximately $80 per month.
Co-Chair Wilken voiced concern that the cost of the housing
projects as identified on page 3-10 in the Report equates to
approximately $225,000 per unit.
Mr. Campbell recognized the expense as fairly accurate. He stated
that the grant cost per unit for AHFC is approximately $19,531, and
he continued that other funding sources also contribute to the
effort.
Co-Chair Wilken asked whether the Cook Inlet Housing Authority's
Anchorage project that is identified in this request on page 3-10
is a renovation or new construction project.
Mr. Campbell specified that the Cook Inlet Housing Authority
project is new construction.
Co-Chair Wilken stated that at $225,000 per unit, these must be
"wonderful" units.
Mr. Fauske clarified that the expenses include the cost of
constructing community centers and buildings in addition to the
unit cost. He agreed that these are expensive projects to develop;
however, he stated that attempts are made to hold costs down.
Co-Chair Wilken responded that he recently purchased a unit in a
complex with a community center and comfortable amenities at a
lower price than this. Therefore, he continued to question the
cost.
Mr. Fauske stated that AHFC would provide the Committee with
additional information regarding these costs.
HUD Federal HOME Grant Program
$ 3,909,000
$ 3,159,000 Federal Receipts
$ 750,000 Corporate Receipts
Reference No.: 6347
Project Type: Renewal and Replacement
Category: Housing / Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
HUD Federal HOME Grant Program utilizes Federal (HUD) with
Corporate matching (AHFC) funds for the HOME Investment
Partnership Program. The purpose of the HOME program is to
expand the supply of affordable, low- and moderate- income
housing and to strengthen the State's ability to design and
implement strategies to achieve an adequate supply of safe,
energy -efficient, and affordable housing. The Municipality of
Anchorage has their own separate HOME program.
Mr. Campbell noted that the $750,000 in Corporate funds is a
required match to receive the federal funds. He read the project
description as specified on page 3-11.
HUD Capital Fund Program (formerly CGP)
$ 500,000 Federal Receipts
Reference No.: 6342
Project Type: Renewal and Replacement
Category: Housing / Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
HUD Capital Fund Program (CFP)(formerly CGP) utilizes Federal
(HUD) grant that provides Public Housing Authorities with
funds each year to help renovate and modernize public housing
units. Funds also provide for administrative expenses, tenant-
education projects, drug elimination/safety projects and
management improvements.
Mr. Campbell read the project description as provided on page 3-13
of the Report. He noted that the federal funding level is
determined by a formula based on the number and types of units. He
stated that the historical Congressional appropriation for this
fund is approximately $3,500,000 of which $3 million is bondable.
He stated that this request provides for the non-bondable funds.
Senator Bunde noted that information on page 3-14 specifies that
management improvements and operations would be funded in this
appropriation. Therefore, he asked what resident management
training would include.
Mr. Campbell responded that resident councils would be established
at each development, and that the funds would assist in educating
the Council members to function as a team for the betterment of the
development. Furthermore, he stated that such things as computer
training could also be provided to the Council.
Federal and Other Competitive Grants
$ 4,250,000
$1,250,000 Corporate Receipts
$3,000,000 Federal Receipts
Reference No.: 6348
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Federal and Other Competitive Grants - utilizes Federal (HUD)
and Corporate match (AHFC) grant funds. AHFC will apply for
grants that target the housing needs of low income and special
needs groups; such as senior citizens, the mentally ill,
physically, or developmentally disabled or the homeless. AHFC
will also apply for energy related grants as they relate to
housing. When acquired, AHFC will provide the needed matching
funds. Some of the grant funds received will be passed through
to local non-profit sub-grantee organizations that deliver
housing and/or services.
Mr. Campbell stated that the Corporate receipt-funding portion is a
required federal fund match. He read the project summary as
specified on page 3-15 of the Report.
Co-Chair Green requested that, when matching funds are required,
language reflecting the match requirement should be included in the
Report.
Mr. Campbell acknowledged the request. He stated that while match
requirements differ, the average requirement is approximately 25
percent.
Co-Chair Green referred to the Report's presentation format and
concluded that the inclusion of language that specifies both
Corporation and Federal Receipts when referring to "FY 2004
Funding" would indicate that a match is required.
Co-Chair Wilken surmised that in this request, the State must
supply $1,250,000 in order to receive $3 million in federal funds.
Furthermore, he noted that an amount less than $1,250,000 would
result in a lower federal funding level.
Mr. Campbell concurred.
Senator Taylor noted that the program match amounts, as indicated
in the Funding History on page 3-15, reflect "fluctuating" match
amounts. He asked for further information regarding this.
Mr. Campbell responded that while funds are expected, there is no
guarantee that the funds would be forthcoming, nor, he advised,
could it be assured that the match level would be a constant
factor.
Competitive Grants for Public Housing
$ 1,000,000
$250,000 Corporate Receipts
$750,000 Federal Receipts
Reference No.: 6350
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Competitive Grants for Public Housing - utilizes Federal (HUD)
and Corporate match (AHFC) grant funds. AHFC will apply for
HUD grants that target the housing needs of low-income and
special needs groups; such as senior citizens, the mentally
ill, disabled, or the homeless. AHFC will also apply for
grants to prevent crime and substance abuse in public housing
and assist public housing families in attaining economic self-
sufficiency. When required, AHFC will provide the needed
match. Some of the funds received will be passed through to
local non-profit sub-grantee organizations that deliver
housing and/or services.
Mr. Campbell read the project summary. He stated that this request
specifically targets low-income housing needs.
Co-Chair Green asked whether the reference to Competitive grants
infers that AHFC competes for these grants on the federal level or
whether the local organizations compete to receive these grants
from AHFC.
Mr. Campbell clarified that AHFC would be required to compete for
these grants.
Senator Taylor asked for examples "of grants which prevent crime
and substance abuse in public housing."
Mr. Campbell shared that the HUD drug elimination grant addresses
security issues in addition to offering programs that would assist
residents in resisting or "getting off" substance abuse.
Senator Taylor questioned AHFC's involvement in offering substance
abuse programs, as he attested, this is usually the role of such
entities as the Division of Drug and Alcohol Abuse.
Mr. Campbell explained that these HUD grants are specifically
designated to provide substance abuse program in public housing
facilities.
WES WEIR, Director, Division of Public Housing, Alaska Housing
Finance Corporation, Department of Revenue, noted that the Drug
Elimination grant would provide "direct grants" to agencies that
would provide such things as adult programs and after-school
activities for youth to assist in offsetting opportunities for drug
use in public housing facilities.
Senator Taylor asked the success rate of the program; specifically
how the program success rate is monitored.
Mr. Weir noted that while the success rate would be difficult to
gauge, the number of youth who participate in the after-school
program "is tremendous." He avowed that a broad cross-section of
public housing residents are served by these grant programs and, he
attested, the Authority considers the program to be "of value"
Co-Chair Green asserted that the Drug Elimination grant program
should be reflected in the Department of Health and Social Services
budget as she continued, cross-referencing this program with other
departments that conduct similar programs would be beneficial.
Co-chair Wilken agreed that "the tie" between agencies would be
noteworthy.
Co-Chair Green commented that this reference would assist in
avoiding duplication of efforts by the various departments.
Energy Efficiency Monitoring Research
$ 1,000,000 Corporate Receipts
Reference No.: 6351
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Energy Efficiency Monitoring Research - utilizes Corporate
(AHFC) funds for a designated grant to Cold Climate Housing
Research Center to conduct housing construction research,
analysis, and information dissemination among the housing
industry and the public. Data gathering and analysis is being
continually related to energy efficiency technology for homes
constructed in northern building and market conditions.
Mr. Campbell read the project description.
Mr. Fauske reminded the Committee that, years prior, the Fannie Mae
federal loan program and AHFC had combined funding efforts to
support an endeavor to provide a centralized location at which a
variety of building industries could work together to conduct cold
weather design research and product testing involving such things
as energy and weather resistant products. He noted that the
University of Alaska Fairbanks campus recently contributed land and
that federal funding has been earmarked toward the design of such a
center. He informed the Committee that the nation's current arctic
testing center is located in Florida, and he asserted that the
University of Alaska Fairbanks campus provides a more appropriate
setting for this type of testing. He stated that the ultimate goal
of this program is that it would become self-sufficient. He stated
that this is a good program with "a lot of potential."
Co-Chair Wilken observed that although this is a new program, it is
not referred to as such in the backup material. While he voiced
support for the concept of the project, he commented that the
Committee would conduct more research on it in order to get a more
thorough understanding of it and to assure that general fund monies
would not be required to support the project in the future.
Senator Taylor stated that he is encouraged to hear about this
project as, he asserted, the State has over-regulated construction
by mandating "that certain levels of efficiency" be required in
order to qualify for various loan programs. He stated that the
result of homeowners' attempts to build to these standards in the
"high humidity rainforest" of Southeast Alaska was unhealthy and
dangerous homes because of poor air circulation. However, he
acknowledged that a home built to those same specifications in
another region of the State that had dry conditions might work
perfectly. Therefore, he voiced that this project is good news in
that it would conduct research appropriate to the building
conditions of Alaska rather than adopting programs that do not work
on a statewide basis. He agreed, however, that the ongoing funding
mechanism should be further researched.
Mr. Fauske informed that AHFC is furthering a program that would
address energy efficiency statutes to accommodate the State's
varying climates.
Co-Chair Wilken noted that this program might eventually allow for
the development of prototypes for schools in the various regions.
SFC 03 # 26, Side B 09:54 AM
State Energy Program (SEP) Special Projects
$ 473,500
$ 50,000 Corporate Receipts
$423,500 Federal Receipts
Reference No.: 32526
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Energy Program (SEP) Special Projects - utilizes Federal
(DOE) and Corporate match funds for State Energy Program (SEP)
special projects such as: building technologies, Codes and
Standards, Wind and Power technologies, renewable energy for
remote areas or transportation technologies.
Mr. Campbell read the state energy program (SEP) projects. He
stated that the federal funding amount that is available to the
State is an increase over the previous yea's funding.
Co-Chair Wilken asked whether the federal funding level would be
negatively affected were the level of State funding reduced.
Mr. Campbell informed that in order to receive this level of
federal funding, the total match requirement would be approximately
$75,000. He stated that while it is not specified in the back up
material, AHFC would be requiring these pass-through grant
recipients to assist with the funding of the total required match.
Mr. Fauske commented that the majority of these funds would flow
from AHFC to the Alaska Industrial Development and Export Authority
(AIDEA) as specified on page 3-22 of the Report.
Homeless Assistance Program Mental Health Bill
$ 750,000
$250,000 Corporate Receipts
$500,000 Mental Health Trust Fund Receipts
Reference No.: 6359
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Homeless Assistance Program - utilizes Corporate (AHFC) funds
for grants to local communities/agencies to help develop
programs that prevent homelessness by providing assistance to
families in imminent danger of becoming homeless, or those who
are currently homeless. Corporate funds will be matched by
Mental Health Trust Authority funds. Both funds will be
combined and administered as one program by AHFC.
Mr. Campbell read the project description and noted that the list
of applicants and their requested level of funding as well as the
level of funding that AHFC could provide is detailed on page 3-24
of the Report.
Beneficiary and Special Needs Housing Mental Health Bill
$ 1,200,000 Corporate Receipts
Reference No.: 6360
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Beneficiary and Special Needs Housing - Corporate (AHFC) funds
for a continuing program to serve populations with special
housing needs. The program provides funds to Alaskan nonprofit
service providers to increase housing opportunities for Mental
Health Trust beneficiaries and other special needs populations
throughout the state. The funds may be used for housing
development and/or residential accessibility modifications.
Mr. Campbell read the project description.
Co-Chair Green asked whether this request would require a Mental
Health Trust Fund match.
Mr. Campbell replied no, as a separate special housing needs
program that is operated by the Department of Health and Social
Services has that requirement.
Senator Taylor asked how the ranking of the applicants who receive
funding from the Homeless Assistance Program, Reference 6359, is
determined.
Mr. Campbell responded that applications are awarded funds based on
a point ranking system. He continued that the more points an
application receives, the higher it is ranked.
Mr. Fauske informed that, were it determined that an applicant's
project to require some revision; AHFC would assist them with that
process. The project, he noted, could be resubmitted the following
year.
Senator Taylor voiced disappointment that a project proposed for
Sitka did not receive funding, and he asked that AHFC provide him
specific information regarding that project so he could understand
the process further.
Mr. Campbell responded that, were a higher level of available
funding available, more projects could receive funding. He assured
that the ranking criteria information would be provided.
Senator Bunde referred the Committee to the Six-Year Plan located
on page 3-29 of the Report, and he asked for confirmation that the
total of federal and corporate funding being requested is $75
million.
Mr. Campbell confirmed.
Senator Bunde pointed out that while the State is often criticized
for the amount of money that is spent per capita, it should be
noted that a large percent of these expenditures include the
federal government contribution to the State via AHFC. He noted
that the federal contribution to Alaska is higher than that
received by any other state.
Mr. Campbell noted that the total federal funding contribution to
AHFC being proposed for FY 04 would amount to $9.6 million.
Senator Bunde asked whether a reduction in the amount of federal
funding that requires a State match would "free up additional
monies" that AHFC could then contribute to the State as a dividend.
Mr. Campbell responded that were the funds not being required as a
match for programs, yes.
Mr. Fauske stressed that while this budget is for $75.6 million,
separate legislation is being furthered that might increase this
budget to $103 million. He stated that additional information
regarding this $28 million increase would be forthcoming.
Co-Chair Wilken furthered that separate legislation that would
alter the nature of the AHFC dividend program would be forthcoming.
He continued that the legislation would change the AHFC dividend
program by proposing a predictable long-term dividend payout plan.
AT EASE: 10:05 AM / 10:05 AM
The bill was ordered HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:06 AM
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