Legislature(2007 - 2008)SENATE FINANCE 532

05/05/2007 01:30 PM Senate FINANCE


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01:43:11 PM Start
01:44:23 PM SB53
03:07:36 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 104 NATURAL GAS PIPELINE PROJECT TELECONFERENCED
<Bill Hearing Canceled>
+= SB 72 COMMUNITY REVENUE SHARING TELECONFERENCED
Scheduled But Not Heard
+= SB 53 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
Heard & Held
-- <Public Testimony> Limited to no
more than 3 minutes --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                            MINUTES                                                                                           
                    SENATE FINANCE COMMITTEE                                                                                  
                          May 5, 2007                                                                                         
                           1:43 p.m.                                                                                          
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Bert Stedman convened the meeting at approximately                                                                     
1:43:11 PM.                                                                                                                   
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Fred Dyson                                                                                                              
                                                                                                                                
Also Attending:  Testifiers are listed in the body of the                                                                     
minutes in the order and location from which they testified.                                                                    
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
                                                                                                                                
SB  53-BUDGET: CAPITAL, SUPP. & OTHER APPROPS                                                                                   
                                                                                                                                
The Committee took public testimony. The bill was held in                                                                       
Committee.                                                                                                                      
                                                                                                                                
SB  72-COMMUNITY REVENUE SHARING                                                                                                
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
1:44:23 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 53                                                                                                         
     "An   Act    making   appropriations,    including   capital                                                               
     appropriations,     supplemental     appropriations,     and                                                               
     appropriations  to capitalize  funds; and  providing for  an                                                               
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the sixth hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
JEFF   JABUSCH,  Manager,   City  of   Wrangell,  testified   via                                                               
teleconference  from Wrangell  that  he had  no  comment at  this                                                               
time.                                                                                                                           
                                                                                                                                
1:44:48 PM                                                                                                                    
                                                                                                                                
GREGORY   VICKERY,   Director,  Tongass   Conservation   Society,                                                               
testified   via  teleconference   from  Ketchikan   thanking  the                                                               
Committee  for the  inclusion of  $46.2 million  to complete  the                                                               
Swan Lake-Tyee  Intertie. He supported  the decision to  make the                                                               
appropriation unconditional to a link  to Canada, which he deemed                                                               
extravagant  and unnecessary  for completion  of the  project. He                                                               
appreciated the  appropriation of $5.7 million  for a replacement                                                               
ferry to  transport people  and goods  between Ketchikan  and the                                                               
airport on Gravina Island. The  $3.4 million appropriation to the                                                               
City  of Ketchikan  for  the water  treatment  facility was  also                                                               
appreciated. He  continued listing  Ketchikan area  projects that                                                               
would be funded in the committee substitute.                                                                                    
                                                                                                                                
1:46:59 PM                                                                                                                    
                                                                                                                                
LOIS EPSON,  Alaska Transportation Priorities  Project, testified                                                               
via teleconference from Ketchikan that  she had just received the                                                               
committee substitute and after review might submit comments.                                                                    
                                                                                                                                
1:47:29 PM                                                                                                                    
                                                                                                                                
ED ZASTROW, AARP, testified via  teleconference from Ketchikan in                                                               
appreciation of the inclusion of  $100,000 for road access to the                                                               
proposed Ketchikan  senior housing development. He  considered it                                                               
a  community  project  and detailed  the  volunteer  efforts  and                                                               
private and  public contributions. He also  thanked the Committee                                                               
for providing funding for the Swan Lake-Tyee Intertie project.                                                                  
                                                                                                                                
1:49:32 PM                                                                                                                    
                                                                                                                                
STEVE  HOWELL, Cook  Inlet  Regional  Citizens Advisory  Council,                                                               
testified   via   teleconference   from   Anchorage   about   the                                                               
organization and thanked the Committee  for including funding for                                                               
the  Cook  Inlet  Marine  Vessel  Risk  Assessment  project.  The                                                               
assessment  would provide  solid reference  for spill  prevention                                                               
and response efforts.  He detailed the process  in developing the                                                               
proposed project  involving local residents, the  US Coast Guard,                                                               
and State and  federal regulators. This project  is important for                                                               
the economy and environment of Cook Inlet.                                                                                      
                                                                                                                                
1:52:54 PM                                                                                                                    
                                                                                                                                
CHARLES FRANZ, Chief Executive  Officer, South Peninsula Hospital                                                               
and  member of  the  University of  Alaska,  Kachemak Bay  campus                                                               
advisory  council, testified  via teleconference  from an  offnet                                                               
location  to  thank   the  Committee  for  its   support  of  the                                                               
University of Alaska.                                                                                                           
                                                                                                                                
DAVID  SOULAK,  Manager,  Bristol   Bay  Borough,  testified  via                                                               
teleconference from an  offnet location on the topic  of the Port                                                               
of Bristol Bay. Funding for  Port improvements is not included in                                                               
the FY  08 Capital  budget in  its current form.  The Port  is 25                                                               
years  old.  In  2005  it  was ranked  second  in  its  need  for                                                               
improvement  and   ranked  eighth   in  the  United   States  for                                                               
commercial landing of  seafood. The Port also  handles 70 million                                                               
pounds of  freight and serves as  a link to Bristol  Bay and Lake                                                               
Illiamna  communities. Preliminary  designs  of Port  improvement                                                               
projects  are   almost  complete.   The  Borough   currently  has                                                               
approximately $800,000  available and has applied  for additional                                                               
funding from the Bristol Bay  Development Corporation, the Denali                                                               
Commission  and   has  requested   assistance  from   the  Alaska                                                               
Congressional delegation.  The project  should be completed  in a                                                               
"timely fashion" and construction started the spring of 2009.                                                                   
                                                                                                                                
1:57:22 PM                                                                                                                    
                                                                                                                                
LUKE  HOPKINS, Presiding  Officer, Fairbanks  North Star  Borough                                                               
Assembly,   and  Vice-Chair,   Fairbanks  Metropolitan   Planning                                                               
Organization,  testified   via  teleconference  from   an  offnet                                                               
location, that  the road-planning Organization is  similar to the                                                               
Anchorage  Metropolitan  Area  Transportation Study  (AMATS).  He                                                               
appreciated  the funding  included for  the Ester  Volunteer Fire                                                               
Station, the Fairbanks Pipeline  Training Center, and maintenance                                                               
of  the  Morris  Thompson  Cultural Center.  He  requested  $12.5                                                               
million for the  school kitchen location change  from Eielson Air                                                               
Force  Base.  This  facility  must   be  moved  due  to  security                                                               
restrictions at the Base. Additionally,  $23.9 million was needed                                                               
to proceed for the next four  years on major road projects. These                                                               
projects affect the entire transportation  network of the Borough                                                               
and  107  road service  areas  levy  taxes  on its  residents  to                                                               
provide maintenance on these local roads.                                                                                       
                                                                                                                                
2:00:58 PM                                                                                                                    
                                                                                                                                
TIM   BECK,  Fairbanks   North   Star   Borough,  testified   via                                                               
teleconference from  an offnet location  to reaffirm  Mr. Hopkins                                                               
comments and to thank the Committee for its efforts.                                                                            
                                                                                                                                
2:01:33 PM                                                                                                                    
                                                                                                                                
GRETCHEN KLEIN, Ketchikan  General Hospital Foundation, testified                                                               
via  teleconference   from  Ketchikan  in  appreciation   of  the                                                               
appropriation  to  replace  a  ten-year   old  piece  of  medical                                                               
equipment needed for the laboratory.                                                                                            
                                                                                                                                
2:02:30 PM                                                                                                                    
                                                                                                                                
PETE  KELLY,  Director,  Governmental  Relations,  University  of                                                               
Alaska,  testified  in  Juneau,  and thanked  the  Committee  for                                                               
addressing  "badly  needed"  items, in  particular  authority  to                                                               
receive  and   expend  federal  funds.   He  drew   attention  to                                                               
increasing  "major  maintenance  problems" of  the  entire  State                                                               
system and  the University  of Alaska,  which must  be addressed.                                                               
The  University owns  over six  million square  feet of  facility                                                               
space, 300  buildings and over  $1.5 billion in  facility assets.                                                               
Best  practices required  that 2.5  percent of  the value  of the                                                               
asset should be expended each  year for regularly scheduled major                                                               
maintenance projects  such as roof  replacements to  continue the                                                               
useful life. This calculates to $40  to $50 million per year. The                                                               
University expends  approximately $23  million annually  from its                                                               
operating  budget  for  routine  maintenance.  This  demonstrates                                                               
commitment.  However, capital  appropriations  are necessary  for                                                               
larger repairs and  system upgrades and the  legislature had only                                                               
provided an average of $7 to $12 million per year.                                                                              
                                                                                                                                
2:05:55 PM                                                                                                                    
                                                                                                                                
Senator Olson asked  the number of the 300  buildings, which were                                                               
owned by the University compared to the number leased.                                                                          
                                                                                                                                
Co-Chair Kelly responded that most  of the facilities were owned,                                                               
a practice somewhat different than the State.                                                                                   
                                                                                                                                
Senator Olson  asked if  the University  was required  to provide                                                               
maintenance on the buildings it did lease.                                                                                      
                                                                                                                                
Co-Chair Kelly responded that the individual leases varied.                                                                     
                                                                                                                                
AT EASE 2:06:37 PM / 2:10:10 PM                                                                                             
                                                                                                                                
CARL  ROSE, Executive  Director,  Alaskan  Association of  School                                                               
Boards, testified in Juneau in  support of funding for the second                                                               
year  of the  four-year Consortium  on Digital  Learning Project.                                                               
The previous  fiscal year, $5  million was appropriated  to start                                                               
the project. Many schools in  several locations were implementing                                                               
digital  learning  programs  and  a  comprehensive  approach  was                                                               
necessary  to   determine  the   best  equipment,   software  and                                                               
professional development  to utilize.  Rather than  only teaching                                                               
keyboarding  and word  processing, education  must be  focused on                                                               
all aspects  of digital  learning, as this  is the  future trend.                                                               
The intent of  the project was to provide funding  to offset two-                                                               
thirds  of the  cost of  school purchases.  Apple computers  were                                                               
selected the previous year and  negotiations were underway to add                                                               
Dell computers.  The short term  return on this  investment would                                                               
be "huge"  given the  2,700 users  and teachers  participating in                                                               
digital  learning. He  distributed  a  brochure highlighting  the                                                               
program [copy on file.]                                                                                                         
                                                                                                                                
2:14:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman indicated he would consider the request.                                                                       
                                                                                                                                
AT EASE 2:14:56 PM / 2:23:03 PM                                                                                             
                                                                                                                                
2:23:12 PM                                                                                                                    
                                                                                                                                
DAN  DUNAWAY testified  via teleconference  from Fairbanks  as an                                                               
avid supporter  of public broadcasting. He  previously resided in                                                               
Dutch  Harbor and  Sand  Point and  appreciated  the benefits  of                                                               
public  broadcasting. He  requested $400,000  for an  engineering                                                               
services program  to benefit small stations  in various locations                                                               
statewide. Funding  for public broadcasting  had been  "flat" for                                                               
some time, which amounts to a reduction over a ten-year period.                                                                 
                                                                                                                                
AT EASE 2:25:10 PM / 2:26:34 PM                                                                                             
                                                                                                                                
BETTY WALTERS,  Kodiak Island Borough School  District, testified                                                               
via teleconference  from Kodiak  to thank  the Committee  for its                                                               
support  of  education  and  in support  of  future  funding  for                                                               
education.                                                                                                                      
                                                                                                                                
Co-Chair Stedman indicated the issue was being addressed.                                                                       
                                                                                                                                
AT EASE 2:27:26 PM / 3:07:00 PM                                                                                             
                                                                                                                                
Co-Chair Stedman announced public testimony on this bill was                                                                    
closed.                                                                                                                         
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Bert Stedman adjourned the meeting at 3:07:36 PM                                                                     

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