Legislature(2007 - 2008)SENATE FINANCE 532
05/07/2007 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB72 | |
| SB124 | |
| SB53 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 72 | TELECONFERENCED | |
| *+ | SB 124 | TELECONFERENCED | |
| *+ | SB 53 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
May 7, 2007
2:25 p.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
2:25:14 PM.
PRESENT
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
Also Attending: TIM GRUSSENDORF, Staff to Senator Lyman Hoffman;
DAVE GRAY, Staff to Senator Donny Olson; FRED FISHER, Staff to
Senator Bert Stedman; KATHY WASSERMAN, Executive Director,
Alaska Municipal League
Attending via Teleconference: From Kodiak: JEROME SHELBY, Mayor,
Kodiak Island Borough; From Wrangell: ROBERT PRUNELLA, City
Manager, City of Wrangell; From an Offnet Location: DAN SALMON,
Administrator and Representative, Igiugig Village Council and
Assembly Member, Lake Peninsula Borough
SUMMARY INFORMATION
SB 72-COMMUNITY REVENUE SHARING
The Committee heard from the bill's sponsor and took public
testimony. A committee substitute was adopted and the bill
reported from Committee.
SB 124-ALASKA WORKFORCE INVESTMENT BD ALLOCATION
The Committee adopted a committee substitute and reported the
bill from Committee.
SB 53-BUDGET: CAPITAL, SUPP. & OTHER APPROPS
The Committee adopted a committee substitute. 12 amendments were
considered with 11 being adopted and one being withdrawn. The
bill reported from Committee.
2:26:16 PM
CS FOR SENATE BILL NO. 72(CRA)
"An Act relating to the community revenue sharing program;
and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
2:26:34 PM
Co-Chair Hoffman moved to adopt CS SB 72, Version 25-LS0506\L as
the working document.
Without objection, the Version "L" committee substitute was
ADOPTED as the working document.
Co-Chair Stedman advised that, rather than any incorporating
significant changes, the committee substitute simply made
numerical changes such as updating community population numbers.
2:27:09 PM
Co-Chair Hoffman communicated that his staffer, Tim Grussendorf,
would review the committee substitute.
2:27:22 PM
TIM GRUSSENDORF, Staff to Senator Lyman Hoffman, affirmed that
the Version "L" committee substitute included a few technical
changes, but did not make any substantive changes.
Mr. Grussendorf directed attention to a six page spreadsheet,
dated May 7, 2007, and titled "Est FY08 Revenue Sharing
Distribution - Organized Communities Under CSSB 72(FIN) [copy on
file] pertaining to Version "L". Communities' population
figures, depicted in the second column, reflect the most current
census information.
Mr. Grussendorf advised that the population numbers on the
spread sheet "backed out" municipality populations from the
total borough population in the cases of the State's three
unified boroughs: Anchorage, Juneau, and Sitka. As a result,
borough numbers are smaller than previously presented.
2:29:26 PM
KATHY WASSERMAN, Executive Director, Alaska Municipal League
(AML), testified in Juneau and voiced appreciation for the
effort exerted on "this wonderful bill". When the Holy Cross
city clerk was informed of the amount that community would
receive under the provisions of this revenue sharing program,
her excited response was "We can buy fuel!" AML is in "total
support" of the bill.
2:31:26 PM
JEROME SHELBY, Mayor, Kodiak Island Borough, testified via
teleconference from Kodiak and commended the Committee for the
"outstanding job" conducted on addressing a wide array of issues
and developing a good bill for Alaska. One element not addressed
in the bill, however, is the State's 27 unincorporated
communities within organized boroughs. Even thought their
inclusion would decrease the per capita multiplier,
unincorporated communities should be provided, at the very
minimum, $25,000. They should not be penalized for being an
unincorporated community within an organized borough.
Mr. Shelby noted that while only one such community existed on
Kodiak Island, seven or eight were located on the Kenai
Peninsula. Another borough had approximately nine. Not
considering them in the bill would produce "some pretty big
inequities in some of these areas where this occurs." This is
the only concern with the bill. All other aspects of it are
"excellent".
2:33:04 PM
ROBERT PRUNELLA, City Manager, City of Wrangell, testified via
teleconference from Wrangell, in support of the bill. "We're
pleased with the outcome" and the assistance the bill would
provide to communities' budgets.
Co-Chair Stedman was aware of Wrangell's "budget circumstances".
This bill, and the separate school funding bill, would provide
assistance to the city.
2:33:53 PM
DAN SALMON, Administrator and Representative, Igiugig Village
Council and Assembly Member, Lake Peninsula Borough, testified
via teleconference from an offnet location in support of the
bill with the addition of including unincorporated communities
within an organized borough, such as Igiugig, in it.
Mr. Salmon contended that unincorporated communities are being
penalized by their absence from the bill.
Mr. Salmon explained that currently Igiugig, whose population
typically ranges between 45 and 50, except for summer when it's
population swells toward 150 primarily due to tourism
activities, does not discriminate in providing fire and
emergency services to residents and visitors. The community's
infrastructure system includes a public boat landing and
campgrounds; a medical clinic; a solid waste facility and
recycling program; electrical generation for the community's
schools, residents, public buildings and airport; water and
sewer systems; and road maintenance. It also interacts with
federal and state entities and municipalities.
Mr. Salmon stated that when the community involved itself in the
effort undertaken in 1989 to form an organized borough in the
area, he had been advised not to "encourage Igiugig to join the
borough" as they would lose revenue. Since then, Igiugig has
investigated becoming classified as a city. The Department of
Commerce, Community and Economic Development informed them that,
due to its small population, they would be intensely
scrutinized. The Department also "saw no sense" in why the
community wanted to become a city in light of how effectively it
manages its infrastructure. He had to agree since Igiugig is
doing as much or more than what recognized cities in the State
do.
Mr. Salmon extended an invitation to Legislators to visit the
community to witness how it manages its affairs. The
infrastructure is impeccably maintained and "the place is
spotless. In conclusion, on behalf of unorganized communities in
organized boroughs, he "strongly encouraged you to find a way to
finance the 25 or so communities that have been left out of this
bill as presently written."
2:38:36 PM
Mr. Grussendorf informed the Committee that the Department of
Commerce, Community and Economic Development fiscal note
accompanying Version "L" specifies that the fiscal impact in FY
08 to be $48.1 million. Thereafter, funding would be provided by
the community revenue sharing fund established by the bill. The
annual funding beginning in FY 09 would equate to the lesser of
$50 million or three percent of all mineral lease rentals,
royalties, royalty sale proceeds, federal mineral revenue
sharing payments and bonuses received by the state during the
preceding year as specified in the analysis section of the
fiscal note.
2:39:14 PM
Co-Chair Stedman restated the funding mechanism for the program.
Mr. Grussendorf affirmed. The funding would likely not exceed
$50 million.
Senator Olson asked regarding the requests to include
unincorporated communities within organized boroughs in the
community revenue sharing program proposed in the bill.
2:40:03 PM
Mr. Grussendorf advised that discussions with these communities
have occurred. The decision was made however, to follow
traditional Legislative policy in determining which communities
would receive the funding. The Committee could make a policy
call and opt in additional communities.
Senator Olson asked whether there had been a "large outcry" to
include funding for unincorporated communities.
Mr. Grussendorf responded that they had heard from "quite a few"
such communities.
2:40:43 PM
Co-Chair Hoffman moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
Without objection, CS SB 72(FIN) was REPORTED from Committee
with new $48,100,000 fiscal note dated May 7, 2007 from the
Department of Commerce, Community and Economic Development.
2:41:20 PM
CS FOR SENATE BILL NO. 124(L&C)
"An Act relating to unemployment contributions for the
Alaska technical and vocational education program and to
the allocation of money appropriated to the Alaska
Workforce Investment Board; and providing for an effective
date."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Olson, the bill's sponsor, moved to adopt CS SB 124, 25-
LS0751\V, Kane, dated May 7, 2007, as the working document.
There being no objection, the Version "V" committee substitute
was ADOPTED as the working document.
2:42:16 PM
Senator Olson stated that the purpose of the bill was to
increase the percent of wages employers remit to the State as
specified in AS 23.20.175. This money would assist in increasing
funding to current Alaska Technical and Vocational Education
(Voc-Tec) training program entities as well as the four other
training programs added by the bill. The entities that would be
supported by this action are specified in Sec. 2 page 2, lines 7
through 16 of the bill.
2:43:36 PM
DAVE GRAY, Staff to Senator Donny Olson, explained that the
Version "V" committee substitute added a new participant, the
Ketchikan Job Center, to the list of Voc-Tec entities specified
in the Senate Labor and Commerce committee substitute. In order
to adequately fund the new participant, a slight reduction in
funding was made to the other entities. None of the other
participants in the program object to this change.
2:45:33 PM
Co-Chair Hoffman moved to report CS SB 124, 25-LS0751\V from
Committee with individual recommendations and accompanying
fiscal notes.
There being no objection, CS SB 124(FIN) was REPORTED from
Committee with two new fiscal notes: a $41,300 fiscal note dated
May 7, 2007 from the University of Alaska and a $2,912,200
fiscal note dated May 7, 2007 from the Department of Labor and
Workforce Development.
AT EASE 2:46:21 PM / 3:28:20 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.
Co-Chair Hoffman offered a motion to adopt committee substitute,
Version 25-GS1014\O, Kane, dated May 6, 2007, as the working
document.
There being no objection, the Version "O" committee substitute
was ADOPTED as the working document.
3:29:16 PM
FRED FISHER, Staff to Senator Bert Stedman, stated that Version
"O" includes appropriation items inadvertently missed in
previous versions of the bill. It also corrects drafting errors.
Mr. Fisher identified the items added by the committee
substitute as follows.
Section 1. Department of Health and Social Services (DHSS)
Grants to Named Recipient additions:
$50,000 General Funds (GF) for the Alaska
Telecommunications, Incorporated - Air Conditioning
System Replacement (HD 17-32), page 4, line 5.
$1,000,000 GF for the Association of Alaska School
Boards - Consortium for Digital Learning (HD 1-40),
page 7, line 25.
$50,000 GF for the Southeast Alaska Regional Dive
Fisheries Association - Geoduck Assessment (HD 1-5),
page 24 line 31.
$100,000 GF for the Southeast Conference - Energy
Program (HD 1-5), page 25, line 4.
$100,000 GF for the Southeast Conference - Timber
Industry Revitalization Program (HD 1-5), page 25 line
6.
Section 1, Department of Health and Social Services
Grants to Municipalities
$1,000,000 GF to the City of Seward - Levee
Construction (HD 33-35), page 53, line 30.
Section 1, Department of Fish and Game
$100,000 GF Geoduck Assessment Surveys (HD 1-5), page
57, line 5.
Section 1, Department of Revenue
$5,000,000 GF to the Alaska Natural Gas Development
Authority, page 57, line 22.
Mr. Fisher stated that, in addition to correcting some drafting
errors, the committee substitute also made some titles changes
at the request of sponsors. Effective date corrections were also
made.
3:32:19 PM
Mr. Fisher advised of the following intent language, inserted on
page 80, line 21 applicable to the Department of Transportation
and Public Facilities, Statewide Federal Programs Budget Request
Unit (BRU), Federal-Aid Highway State Match (HD 1-40) component
of Section 4.
It is the intent of the legislature that the Federal Aid
Highway State Match funds may be used for advance right-of-
way acquisition for Federal Aid Highway Program eligible
projects.
Mr. Fisher explained that this action would likely result in
savings to the Department. Such expenditures would continue to
be included in a project's cost calculations.
Mr. Fisher concluded his review of the major changes contained
in the committee substitute.
3:33:50 PM
Amendment #1: This amendment, sponsored by Co-Chair Stedman,
inserts a new bill section to read as follows.
Sec. A. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The
unexpended and unobligated balance, estimated to be
$500,000, of pioneers' home care and support receipts under
AS 47.55.030 collected during the fiscal year ending June
30, 2007, is appropriated to the Department of Health and
Social Services for pioneers' homes equipment and supply
needs.
This amendment also provides for an effective date of June 30,
2007 of the provision of the new bill section.
Accompanying explanatory language reads as follows.
During the summer of 2006 the department reviewed and
identified necessary repairs to State-owned facilities. The
Pioneer Homes have a wide range of safety and sanitation
issues that need to be addressed. Homes contain furnishings
that are damaged or broken that pose a risk of injury to a
resident, such as broken corners on night tables, unstable
legs on chairs, etc. In many areas the draperies are beyond
repair or cleaning and need to be replaced so they don't
pose a health hazard with germs or mold. As the resident
population requires a higher level of care, accommodating
equipment, bed and/or mattress replacement becomes an issue
as well. This funding will allow the resident receipts to
be used towards these various on-going needs.
Co-Chair Stedman moved for adoption and objected for discussion
purposes. He read the explanatory statement into the record.
3:34:52 PM
Co-Chair Stedman commented that this appropriation would
facilitate applying federal funds to support the State's Pioneer
Homes.
Co-Chair Stedman removed his objection.
There being no other objection, Amendment #1 was ADOPTED.
3:35:21 PM
Amendment #2: This amendment, sponsored by Co-Chair Stedman at
the request of Senator Ellis, deletes the Anchorage - East High
School Music/Visual Art Technology Grant (HD 17-32) component
and the $22,000 general fund appropriation to that component
from the Department of Commerce, Community and Economic
Development, Grants to Municipalities (AS 39.05.315) BRU on page
33 lines 5 through 7.
This amendment also adds $12,000 general funds to the Anchorage
- Tudor Elementary School Computer Lab Upgrade (ED 17-32) on
page 40, lines 29 through 32.
This amendment also adds $10,000 general funds to a Municipality
of Anchorage - Northern Lights Sound Barrier Fence component
[not included in the committee substitute].
Accompanying explanatory language indicates that the total
appropriation to the Tudor Elementary School component would be
$22,000 and the total appropriation to the Northern Lights
component would be $297,000. Additional explanatory language
reads "Original project (East High School - Music/Visual Art
Technology Grant) was duplicated by other office.
Co-Chair Stedman moved for adoption and objected for discussion.
He read the explanatory statement into the record and noted that
the deletion of the Anchorage - East High School Music/Visual
Art Technology funding was a technical correction. That funding
had been addressed in a separate allocation.
Co-Chair Stedman removed his objection.
Without further objection, Amendment #2 was ADOPTED.
3:36:11 PM
Amendment #3: This amendment, sponsored by Senator Huggins,
deletes the Matanuska-Susitna Borough - Big Lake Library Books
and Supplies (HD 13-16) component and the $5,000 general fund
appropriation to that component from the Department of Commerce,
Community and Economic Development, Grants to Municipalities (AS
39.05.315) BRU on page 48 lines 11 through 13.
This amendment also adds a new Big Lake Library Advocates - Big
Lake Library Upgrade Technology and or Library Books (HD 13-16)
component to the Department of Commerce, Community and Economic
Development Grants to Named Recipients (AS 37.05.316) BRU, on
page 2, lines 10 and 11, and appropriates $5,000 general funds
to that component.
Accompanying explanatory language reads, "Correction to Grant
Recipient and title - the funding is intended to go to the Big
Lake Library Advocates not the Mat-Su Borough."
Co-Chair Stedman moved for adoption and objected to point out
that the amendment would correctly direct the funding to the Big
Lake Library Advocates rather than the Matanuska-Susitna
Borough.
Co-Chair Stedman removed his objection.
There being no other further objection, Amendment #3 was
ADOPTED.
3:36:57 PM
Amendment #4: This amendment, sponsored by Co-Chair Stedman,
transfers the Four Dam Pool Power Agency - Swan Lake to Lake
Tyee Intertie (HD 1-5) component and $46.2 million Other Funds
appropriation to that component from the Department of Commerce,
Community and Economic Development Grants to Named Recipients
(AS 37.05.316) BRU on page 65, lines 9 through 11 to a new
Alaska Energy Authority - Grants to Named Recipients (AS
37.05.316) BRU on page 65, following line 3. Accompanying
explanatory language reads as follows.
This amendment makes the grant to the Four Dam Pool Power
Agency more specifically administrable by the Alaska Energy
Authority. This agrees with the governor's amendment
requesting the change.
Co-Chair Stedman moved for adoption and objected for discussion
purposes. The explanatory language was read into the record.
Co-Chair Stedman removed his objection.
Amendment #4 was ADOPTED without further objection.
3:37:52 PM
Amendment #5: This amendment, sponsored by Senator Huggins,
inserts a new bill section to read as follows.
Sec. A. HOUSE DISTRICTS 13 - 16. (a) The unexpended and
unobligated balances, not to exceed $20,000, of the
appropriations made in sec. 1, ch. 159, SLA 2004, page 31,
lines 19 - 23 (Willow Creek state recreational area,
temporary shallow water boat launch and winter access
trailhead - $125,000) and sec. 1, ch. 3, FSSLA 2005, page
63, lines 6 - 10 (Willow Creek state recreation area phase
II: parking lot at crude shallow water boat launch site at
mile 49.7 - $125,000) are reappropriated to the Department
of Commerce, Community and Economic Development for payment
as a grant under AS 37.05.316 to the Willow Area Seniors,
Inc., for a driveway chip seal for Willow Haven Center at
Parks Highway near mile 70.
(b) The unexpended and unobligated balances, not to
exceed $18,000, of the appropriations made in sec. 1, ch.
159, SLA 2004, page 31, lines 19 - 23 (Willow Creek state
recreational area, temporary shallow water boat launch and
winter access trailhead - $125,000) and sec. 1, ch. 3,
FSSLA 2005, page 63, lines 6 - 10 (Willow Creek state
recreation area phase II: parking lot at crude shallow
water boat launce site at mile 49.7 - $125,000) are
reappropriated to the Department of Transportation and
Public Facilities to Willow Lake, Float Plane Access Road,
chip seal of 400 lineal feet of road 22 feet wide.
(c) Any remaining unexpended and unobligated balances,
after the appropriations made in (a) an d(b) of this
section, of the appropriations made in sec. 1, ch. 159, SLA
2004, page 31, lines 19 - 23 (Willow Creek state
recreational area, temporary shallow water boat launch and
winter access trailhead - $125,000) and sec. 1, ch. 3,
FSSLA 2005, page 63, lines 6 - 10 (Willow Creek state
recreation area phase II: parking lot at crude shallow
water boat launce site at mile 49.7 - $125,000) are
reappropriated to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.315 to the Matanuska-Susitna Borough for Hollywood
Road improvements needed for road and safety improvements
for new school.
Co-Chair Stedman moved for adoption and objected for purposes of
explanation.
3:38:02 PM
Senator Huggins explained that this amendment would
reappropriate funding from a boat launch near the Willow Creek
State Recreational area to support chip seal paving at a senior
citizen housing complex in the area and to improve access to a
new elementary school.
Co-Chair Stedman removed his objection.
Without further objection, Amendment #5 was ADOPTED.
3:39:02 PM
Amendment #6: This amendment, sponsored by Co-Chair Stedman,
adds a new Hope Community Resources, Inc. (HD 1-40), component
to the Department of Commerce, Community and Economic
Development, Grants to Named Recipients (AS 37.05.316) BRU on
page 2, lines 10 and 11 and appropriates $300,000 general funds
to that component. A notation reads "Attached list of project
detail and communities"; however no such list was provided.
Co-Chair Stedman moved for adoption and objected to comment that
this amendment would add a grant for $300,000 GF for Hope
Community Resources to the Grants to Named Recipients list under
the Department of Commerce, Community and Economic Development.
Co-Chair Stedman removed his objection.
There being no further objection, Amendment #6 was ADOPTED.
3:39:40 PM
Amendment #7: This amendment, sponsored by Co-Chair Stedman,
deletes the Anchorage - Kincaid Park Soccer and Nordic
Improvements (HD 17-31) component and $2 million general fund
appropriation from that component from the Department of
Commerce, Community and Economic Development, Grants to
Municipalities (AS 37.05.315) BRU, on page 35 lines 29 through
31. This amendment also adds a new Kincaid Project Group -
Kincaid Park Soccer and Nordic Improvements (HD 17-31) component
to the Grants to Named Recipients (AS 37.05.316) BRU on page 2,
lines 10 and 11, and appropriates $2 million to that component.
Accompanying explanatory language reads, "Language change needed
so that the funds go to the correct recipient."
Co-Chair Stedman moved for adoption and objected to point out
that this amendment would change the fund recipient.
Co-Chair Stedman removed his objection.
Without further objection, Amendment #7 was ADOPTED.
3:40:33 PM
Amendment #8: This amendment, sponsored by Senator Olson,
deletes "NPRA" and inserts "ANWR" in the title of the Kaktovik -
Educational Efforts Regarding the NPRA (HD 40) component in the
Department of Commerce, Community and Economic Development,
Grants to Municipalities (AS 37.05.315) BRU on page 46, lines 19
through 21. The $50,000 general fund appropriation to that
component remains unchanged.
Co-Chair Stedman moved for adoption and objected to receive an
explanation.
3:40:43 PM
Senator Olson stressed that this amendment would have no fiscal
impact. Rather it would change the title of the component to
reflect that the educational efforts would relate to the Arctic
National Wildlife Refuge (ANWR) not the National Petroleum
Reserve-Alaska (NPR-A).
Co-Chair Stedman removed his objection.
Without further objection, Amendment #8 was ADOPTED.
3:41:29 PM
Amendment #9: This amendment, sponsored by Senator Dyson,
deletes the Glenn Highway Lighting Extension Project (HD 7-11)
component and $139,000 general fund appropriation to that
component from the Department of Transportation and Public
Facilities, on page 58 lines 14 and 15.
This amendment also inserts a new subsection to Section 14.
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT., on
page 120, following line 1, to read as follows.
(c) The sum of $139,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development, Division of Community Advocacy, for
studies to determine the economic feasibility and financial
impact of separating the greater Eagle River - Chugiak
region from the Municipality of Anchorage, to evaluate and
recommend various alternatives and scenarios for the
governmental structure of the separated region, and to
evaluate and recommend allocation of various assets
currently shared by the Municipality of Anchorage and the
area being considered for separation, and other such
studies as the Division of Community Advocacy may determine
necessary to fully evaluate the alternatives.
Accompanying explanatory language reads as follows.
The sum provided under SB 53 for the Glenn Highway lighting
project is $139,000 of the initially requested $700,000
necessary to complete this portion of the project. Since
$139,000 is substantially less than the requested amount,
the funds would be better spent completing the Eagle River
- Chugiak studies initiated, but not completed, in 2006.
This amendment deletes the entire $139,000 general funds
shown on Page 57, Lines 16 and 17 [of committee substitute
Version "L"] for the Glenn Highway Lighting Project, and
appropriates a like amount to the Division of Community
Advocacy of the Department of Commerce, Community and
Economic Development, to contract for the completion of the
studies.
Co-Chair Stedman moved for adoption and objected to allow
Senator Dyson to speak to the amendment.
3:41:40 PM
Senator Dyson informed the Committee that additional money is
required to finish an economic study on the economic viability
of the Eagle River community. This amendment would redirect
funding allocated in this bill for the next phase of the Glenn
Highway lighting project to the economic study as the funding
allocated to the lighting project was insufficient to complete
it. The amendment is revenue neutral.
Co-Chair Stedman removed his objection.
Senator Elton objected to ask the history of the efforts to
determine viability and feasibility of a separation of the Eagle
River and Chugiak area from the Municipality of Anchorage.
Senator Dyson responded that $85,000 had been provided the
previous year to study the tax base and cost of services
currently delivered in the Eagle River and Chugiak region. The
next phase would address how the public facilities and
properties would be divvied up in terms of such things as "whose
bonds paid for what" in the event that the communities
"divorced" themselves from the Municipality of Anchorage. This
information is critical in the analysis of the "viability of a
separate community."
3:44:14 PM
Senator Elton asked why State general funds were proposed for
this effort.
Senator Dyson expressed that the issue of borough and city
formation is addressed in the State Constitution and in general
State law. It is specified that "funds for studies for
formation, dis-solutionment, and combining" of communities
should be addressed. The State has funded similar efforts in the
past.
Senator Elton removed his objection.
There being no further objection, Amendment #9 was ADOPTED.
3:45:36 PM
Amendment #10: This amendment, sponsored by Co-Chair Stedman,
inserts "and Other Park Improvements" following "Fence" to the
title of the Mat-Su Baseball, Inc. - Outfield and Backstop Fence
for the Mat-Su Miners Baseball Field (HD 13-16) component in the
Department of Commerce, Community and Economic Development,
Grants to Named Recipients (AS 37.05.316) BRU on page 19, lines
30 through 33.
Co-Chair Stedman moved for adoption and objected to the motion.
Co-Chair Stedman explained the change to the title was intended
to "enlarge the scope" of the project.
Co-Chair Stedman removed his objection.
Without further objection, Amendment #10 was ADOPTED.
3:46:17 PM
Amendment #11: This amendment, sponsored by Senator Thomas, adds
a new Fairbanks North Star Borough - Road Service Area Funding
component to the Department of Commerce, Community and Economic
Development, Grants to Municipalities (AS 37.05.315) BRU on page
28, lines 31 and 32, and appropriates $4 million general funds
to that component. Accompanying explanatory language reads as
follows.
This project will provide for the basic safety and
reliability of access on the 469 miles of service area
roads within the FNSB, outside the City of Fairbanks. The
funds will be passed directly to road service areas in
accordance with a priority list developed by the road
service area committee.
This amendment also adds a new University of Alaska Fairbanks -
BioSciences Facility (BioS) component to the University of
Alaska on page 59, line 12, and appropriates $12.5 million
general funds to that component. Accompanying explanatory
language reads as follows.
The BioSciences Facility is the Board of Regents' highest
priority for new construction. This critical facility will
replace aging labs and science infrastructure, allowing the
university to continue to compete for federal research
dollars. This major teaching and research facility will
have a significant impact on both undergraduate and
graduate students as well as provide urgently needed
research facilities.
The total cost of the project is estimated to be $105
million. $12.5 million will provide for planning and
design, utilidor construction and heating capacity
expansion in preparation for the facility.
This amendment also adds a new Fairbanks North Star School
District - Central Kitchen and Education Support Facility
component to the Department of Commerce, Community and Economic
Development, Grants to Named Recipients (AS 37.05.316) BRU on
page 2, lines 10 and 11, and appropriates $2.5 million general
funds to that component. Accompanying explanatory language reads
as follows.
The district's current central kitchen is located on
Eielson Air Force Base, 25 miles from downtown Fairbanks.
It was built in the mid-1970s and was designed to produce
on quarter of the meals currently necessary on a daily
basis. Food must be trucked to and from the kitchen, which
is inefficient and increasingly difficult given increased
military base security measures. The district has received
$2.4 million from the federal government and $7.5 million
from the state for this project. The borough expects the
requested $2.5 million will complete the project.
This amendment also adds an Illinois/Barnette Street North-South
Connector component to the Department of Transportation and
Public Facilities on page 57, line 27, and appropriates $23
million to that component. Accompanying explanatory language
reads as follows.
The Illinois Street realignment and bridge will increase
connectivity and safety, and decrease congestion in the
core downtown area. This project has been in the planning
process for over thirty years. Delays will increase costs
and impede the impressive recent growth in the downtown
area.
This amendment also adds $2 million general funds to the Ester
Volunteer Fire Department - Fire Station Addition (HD 7-11)
component in the Department of Commerce, Community and Economic
Development, Grants to Named Recipients (AS 37.05.316) BRU, on
page 13, lines 14 through 16. Accompanying explanatory language
reads as follows.
The Ester Volunteer Fire Department responds to emergencies
along the Parks Highway, at homes within the fire service
area, and in cooperation with other Fairbanks-area fire
departments. This project will provide space for two
existing fire trucks and future apparatus to be parked
inside - essential for use in cold weather - as well as
build living quarters for volunteer firefighters and medics
allowing for immediate response to calls. The total cost of
the project is $2.775 million. The Fairbanks North Star
Borough has funded $250,000 and $525,000 has been provided
in previous state grants which will substantially increase
the mil rate in this small community.
Co-Chair Stedman moved for adoption and objected to the motion
for purposes of explanation.
3:46:26 PM
Senator Thomas informed that these five projects proposed for
the Interior region of Alaska were included in his original
capital budget funding request. These important infrastructure
projects continue to have merit.
Senator Thomas communicated that the Fairbanks North Star
Borough, which accounts for 15 percent of the state's
population, was experiencing the second highest population
growth rate in the State. Funding these projects would be a fair
and equitable distribution of capital budget funds in statewide
terms. Even though he recognized the challenge of funding the
multitude of projects from across the State, he was concerned
that certain projects did not receive adequate consideration.
Senator Thomas also pointed out that the distribution of capital
funds to the Fairbanks area was dramatically less than its
population warranted. Delaying these necessary projects would
increase costs.
Senator Thomas, noting that he would endeavor to meet with the
Department of Transportation and Public Facilities and the
Governor to press the importance of the projects, WITHDREW the
amendment.
Co-Chair Stedman asked that a brief explanation of the projects
proposed in the amendment be provided.
Senator Thomas advised that the request included repairs to 469
miles of Fairbanks North Star Borough service roads at a cost of
four million dollars. $12.5 million was being requested to begin
the initial construction phase of the BioSciences Facility on
the University of Alaska Fairbanks campus.
3:49:06 PM
Senator Thomas reminded the Committee that because construction
costs are steadily increasing, a year's delay in the project
would "add considerably" to the expense and would have "a huge
impact" on the project's overall budget.
3:49:23 PM
Senator Thomas stated that the third item was a $2.5 million
request pertaining to the Borough's central school district
kitchen and education support facility. The district's current
central kitchen is currently located 25 miles outside of
Fairbanks on the Eielson Air Force Base. That location is not
beneficial to the schools serviced by the kitchen.
3:49:42 PM
Senator Thomas noted that the Illinois/Barnette Street North-
South Connector request has been identified as an important
project for many years. At $22 million dollars, the project is
expensive; however, it is a very necessary connecter road that
feeds into the city.
3:50:07 PM
Co-Chair Stedman asked for confirmation that Senator Thomas was
removing the amendment from consideration.
Senator Thomas affirmed.
Without further discussion, Amendment #11 was WITHDRAWN.
Co-Chair Stedman thought that the Department of Transportation
and Public Facilities and the Governor would be willing to
discuss the projects with Senator Thomas.
3:50:27 PM
Amendment #12: This amendment, sponsored by Senator Olson,
inserts a new subparagraph to subsection (a) of Section 29.
NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM., on
page 128 following line 13, to read as follows.
(18) North Slope Borough Data management, $800,000
Dissemination, and
NPRA wildlife studies
This amendment also deletes "$9,763,218" and inserts
"$10,563,218" from the language of subsection (b) on line 15.
The amended language of the subsection reads as follows.
If the amount available for appropriation from the National
Petroleum Reserve - Alaska special reserve fund (AS
37.05.530) under (a) of this section is less than
$10,563,218, then each of the appropriations made in (a) of
this section is reduced in proportion to the amount of the
shortfall.
Co-Chair Stedman moved for adoption and objected to the motion.
3:50:37 PM
Senator Olson stated that his staff person, David Gray, would
further explain the request to increase the impact grant program
funding pertaining to the National Petroleum Reserve - Alaska
(NPR-A) by $800,000.
3:51:02 PM
DAVID GRAY, Staff to Senator Donny Olson, explained that the
Department of Commerce, Community and Economic Development
reviews the applications submitted for these federal impact
funds received by the State and forwards their project "grading"
determinations to the Legislature for consideration in the
capital budget.
Mr. Gray advised that any North Slope community can appeal the
Department's grading determination. The project identified in
this amendment was appealed, found "to be deserving," and thus,
was advanced to this Committee for consideration.
3:52:30 PM
Senator Olson directed attention to a letter from Department of
Commerce, Community and Economic Development Commissioner Emil
Notti, dated May 7, 2007 in support of this project [copy on
file].
Co-Chair Stedman removed his objection.
Without further objection, Amendment #12 was ADOPTED.
3:53:03 PM
Co-Chair Stedman acknowledged the immensity of the effort
undertaken by Committee Members and Finance Committee staff to
develop the capital budget bill.
3:53:45 PM
Co-Chair Hoffman offered a motion to report CS SB 53, 25-GS
1014\O, as amended, from Committee with individual
recommendations.
AT EASE: 3:54:04 PM / 3:54:17 PM
Co-Chair Hoffman amended the motion to provide direction
allowing the Division of Legislative Finance and the Legislative
Legal and Research Services division to make any necessary
conforming and technical changes to the bill.
3:54:39 PM
Senator Dyson objected to the motion.
Senator Dyson asked for confirmation that the motion would allow
any inadvertent omission between the Version "O" committee
substitute, as compared to the previous one, caught by the
bill's drafters, to be corrected.
Co-Chair Stedman communicated that Version "O" did not delete
any language. Instead, only a few additions and corrections were
made, as discussed by Mr. Fisher.
Senator Dyson acknowledged but clarified his concern that an
inadvertent omission might have occurred.
Co-Chair Stedman clarified that "we would fix it."
Co-Chair Stedman removed his objection.
There being no further objection, CSSB 53(FIN) was REPORTED from
Committee.
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 3:56:37 PM
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