Legislature(2003 - 2004)
05/02/2003 09:50 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 02, 2003
9:50 AM
TAPES
SFC-03 # 73, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:50 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lydia Green, Co-Chair
Senator Con Bunde, Vice Chair
Senator Robin Taylor
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: Testifiers are listed in the order they testified.
SUMMARY INFORMATION
SB 100-APPROP: CAPITAL PROJECTS
The Committee adopted a committee substitute and heard public
testimony. 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."
Senator Taylor moved for adoption of CS SB 100, 23-GS1003\Q, as a
working document.
Without objection the committee substitute was ADOPTED.
Co-Chair Wilken pointed out that the Governor's proposed budget
contained approximately $133.95 million general funds and the
committee substitute would appropriate approximately $130.9 million
general funds. He furthered that the budget contained in the
committee substitute would increase federal fund expenditures by
approximately $61 million, and reduce "other funds" expenditures by
approximately $40 million.
Co-Chair Wilken remarked that "all opportunities" to secure federal
funds with matching State funds would be utilized in the budget
contained in the committee substitute.
Co-Chair Wilken directed attention to reports distributed: Election
District Summary, Project Comparison, and Project Detail by
Election District [copies on file.]
ANNE PASCH, Anchorage Museum Natural History, testified via
teleconference from Anchorage about the abundance of natural
history artifacts in the State. She noted the museum is requesting
funds to remodel to accommodate "Libby" one of the oldest finds in
North America from mountains near Talkeetna. She expressed interest
in promoting education and attempts to secure federal funding to
provide this opportunity.
DEAN ALLEN, Snow Travelers, testified via teleconference from
Fairbanks about snowmachine registration funds and trail projects
that were eliminated from the governor's budget request. He told of
the self-sufficiency of the program and the support of the
registration program based on the understanding that the revenues
would be utilized for trail maintenance and construction. He
understood administration costs were necessary and suggested that
funding be provided for one-half of an existing position utilizing
registration fee revenues to undertake administrative functions.
DR. DOUG STARK testified via teleconference from Homer about
$500,000 needed for land acquisition to construct a building
important to the university system. He noted that voters in the
previous general election approved bonding authority.
MERRITT MITCHELL, Homer Campus Advisory Council, testified via
teleconference from Homer in support of the capital budget for the
University of Alaska. He told of parking requirements for a newly
constructed facility, which has "been on the books" for over 12
years.
Co-Chair Wilken highlighted five components of the committee
substitute as follows.
Major Differences in the Governor's Capital Budget and the
Senate Finance Committee Substitute
1) Department of Community and Economic Development
· The Kodiak Launch site was reduced by $26 million due to
a shortage in federal receipts available for that
project.
2) Department of Education and Early Development
· The People's Learning Center was reduced by $1 million.
This project received $900,000 in the FY 03 capital
budget. We were told that this was the amount needed to
show the State's support
3) Department of Natural Resources
· Rejected $2,500,000 in federal receipt authority under
the National Coastal Wetland Conservation Grants Program.
These funds were earmarked for the purchase of private
land on Afognak Island.
4) Department of Public Safety
· Increased the Department's CIP [Capital Improvement
Project] request for Aircraft and Vessel Repair and
Maintenance by $425,000 in order to provide maintenance
for the Wolstad.
· Cut the Fairbanks Roof Replacement Project in half with
the understanding that the remainder will be funded in
the FY 05 capital budget. This will provide a savings in
this budget and result in the Department's ability to
make the necessary repairs without a considerable delay.
5) Department of Transportation and Public Facilities
· Cut the request for $1 million in general funds for the
North Slope Oilfield Connector Roads and Colville River
Bridge and fully funded the Governor's $10 million
request for the evaluation and potential development of
Industrial Access Roads and Community Access Roads.
Co-Chair Wilken indicated Governor Murkowski's road plan as
demonstrated on a map [copy on file.]
Senator Hoffman restated statements he made the previous
legislative session that the maintenance and operation of the
People's Learning Center in Bethel would not be the responsibility
of the State, but rather would be undertaken locally. He informed
that groundbreaking would occur on this facility with or without
additional State funding. He surmised that the recent decision to
"take a second look" at this facility and reconsider further
participation could be warranted but stressed this region has the
highest unemployment and lowest achievement record in the State. He
suggested that such reconsideration is paramount to "ignoring the
problem". He expressed pride in the achievements made in this
region and the initiative taken to improve the quality of education
and employment of residents in an area with the lowest standard of
living in Alaska. He asserted that it would behoove the State to
support this project and should have "taken the lead on this
project".
Senator Hoffman understood the State contributed $900,000 at his
"insistence" the previous legislative session, but stressed that
the $1 request for this budget was made by the Governor's Office.
He told of local residents convincing the Governor of this
program's importance and surmised that the Governor included
funding in his proposed budget because, "he felt strongly enough
about that project."
Senator Hoffman noted the State funds would be used to obtain
federal funds and reiterated the co-chair's statement that all
federal funds would be secured.
Senator Hoffman indicated he would further comment on the
distribution of capital funds to various election districts at a
later date.
Co-Chair Wilken understood that the Bethel facility does not
require matching funds. Although he "applauded" the progress made
with the Bethel project; however, he expressed concern that once
the federal funding sources "dry up" maintenance would become the
responsibility of the State.
Senator Hoffman clarified the co-chair's opening statement did not
specify required match.
Co-Chair Wilken noted amendments would be considered at the next
hearing.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:11 AM
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