Legislature(2007 - 2008)SENATE FINANCE 532
03/03/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB229 | |
| SB256 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 229 | TELECONFERENCED | |
| += | SB 256 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 3, 2008
9:17 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:17:34 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Grier Hopkins, Staff, Senator Thomas
PRESENT VIA TELECONFERENCE
Chris Maisch, Director and State Forester, Division of
Forestry; Martha Freeman, Forestry Resources Program
Manager, Department of Forestry; Jerry McCutcheon, Anchorage
SUMMARY
SB 229 "An Act relating to the Tanana Valley State Forest
and to assignment of certain forest land to the
Minto Flats State Game Refuge; and providing for
an effective date."
SB 229 was REPORTED from Committee with a "do
pass" recommendation and previously published
fiscal notes from the Department of Natural
Resources and the Department of Administration.
SB 256 "An Act making supplemental appropriations,
capital appropriations, reappropriations, and
other appropriations; amending certain
appropriations; ratifying certain expenditures;
making appropriations to capitalize funds; and
providing for an effective date."
CSSC 256 (FIN) was REPORTED out of Committee with
the accompanying fiscal note.
9:17:44 AM
SENATE BILL NO. 229
"An Act relating to the Tanana Valley State Forest and
to assignment of certain forest land to the Minto Flats
State Game Refuge; and providing for an effective
date."
Co-Chair Stedman related that the purpose today was to hear
the bill and allow public testimony.
9:18:53 AM
SENATOR JOE THOMAS, SPONSOR, read the sponsor statement.
Senate Bill 229 amends the boundaries of the Tanana
Valley State Forest (TVSF) to correct errors in legal
descriptions, reflect updated land status, and to
better match the management intent for the Forest. This
is done by adding and deleting boundary references to
the legal descriptions in statute. These changes result
in a net increase to the state forest of approximately
40,000 acres. SB 229 also moves approximately 4,300
acres from the state forest to the Minto Flats State
Game Refuge.
In 1983, the Legislature created the 1.8 million-acre4
Tanana Valley State forest that stretches from Manley
to Tok. The forest is open to mining, gravel
extraction, oil and gas leasing, and grazing. The
Department of Natural Resources manages the state
forests for a sustained yield of these resources, with
the primary purpose of timber management (AS
41.17.200). The Bonanza Creek Experimental Forest, a
12.400-acre area dedicate3d to forestry research, is
also located within the state forest.
State forests provide fish and wildlife habitat, clean
water, opportunities for recreation and tourism, and
minerals. In addition to the management of these
resources, the Tanana Valley State Forest offers many
recreational opportunities including hungt6in, fishing,
trapping, camping, hiking, dog mushing, cross-country
skiing, wildlife viewing, snow machining, gold panning,
boating and berry-picking.
In 1996, the division updated the Tanana Valley State
Forest Management Plan and established a citizens'
advisory committee. The 12-member citizen's advisory
committee, representing a variety of state forest
users, actively participates in forest planning in the
Tanana Basin. This entity has endorsed the
recommendations on management of the forest and has
carefully crafted the changes in a manner that resulted
in support from all affected land users and owners.
SB 229 is supported by the Alaska State forest
Association, the Fairbanks Economic Development
Corporation, hunting and recreation groups as well as
all surrounding land owners.
Please join me in amending the Tanana Valley State
Forest to better align with its original intent and
support the passage of Senate Bill 229.
9:21:28 AM
Co-Chair Stedman requested an explanation of the map (copy
on file).
9:21:46 AM
Senator Thomas related that the Division of Forestry would
be better able to provide the map explanation.
9:22:13 AM
Senator Dyson noted that Fiscal Note #1 reflects 100,000
acres being added and approximately 66,000 acres being
deleted. He was curious as to what is being deleted and why.
9:22:50 AM
Senator Thomas mentioned that the Division of Forestry would
be better at explaining the deletions and additions.
9:23:20 AM
GRIER HOPKINS, STAFF, SENATOR THOMAS, offered that two
representatives from the Division of Forestry were online
and ready to speak on the subject.
9:24:16 AM
CHRIS MAISCH, DIRECTOR AND STATE FORESTER, DIVISION OF
FORESTRY (Testified via teleconference), referred to the
enclosed map (copy on file). He pointed out, in the upper
left side of the map at the Minto Wildlife Refuge, three
parcels in orange as proposed deletions from the Tanana
State Forest to be transferred into the Minto Wildlife
Refuge. He explained that as wetlands they are better
managed by the wildlife refuge. He indicated that in the
extreme left (orange half-circle) there is an oxbow of the
Tolovana River which has good quality timber but being
isolated from the rest of the state forest, it better suited
to be put in the refuge. On the extreme east side of the
refuge there a light green-colored parcel is a proposed
addition into the Tanana State Forest. The Dunbar Trail goes
through this area and continues into the Refuge requiring
some access management coordination.
9:26:47 AM
Mr. Maisch indicated a yellow portion, 4B, will be removed
from the Tanana State Forest. It is mostly recreational
making it difficult to manage for commercial forestry uses.
Mr. Maisch described in the middle of the map, the Big Delta
area, there are light green parcels. These parcels, south of
7A and 7B and north of Fort Greely will be additions into
the Tanana State Forest. Mr. Maisch indicated that a small
parcel on the Good Pasture River drainage, part of a
research natural area will also be added to the Tanana State
Forest. Near Dot Lake (between 10D and 12B) a number of
parcels scattered around the area are intermixed with native
corporation lands and the Tanana State Forest. This change
will clean up the boundaries and make them more consistent
with the ownership in the area. Mr. Maisch pointed out that
in the regions close to Tok, near 13A and 13B, in the Tanana
State Forest just north of the Tanana River, are all
productive forest lands. Mr. Maisch indicated that to the
north of these regions, in yellow, 12A, 13A, 13B, are
proposed deletions to the Tanana State Forest. These parcels
are more appropriately managed as general use state lands
since they do not have any large concentration of productive
forests. Mr. Maisch continued that north of these regions,
in yellow (12A) and light green the land would be transposed
to correct an earlier legal drafting error. Mr. Maisch
concluded by saying one of the reasons the Division of
Forestry would like to see the state forest additions is
they have been working with alternative energy plans,
particularly bio-energy and wood fuel. He mentioned that
projects in Tok, Delta, and several smaller villages in the
area are looking at wood boiler systems for space heating
needs in village and community schools. Mr. Maisch stressed
that having a near-by working forest to provide sustainable
wood to those communities is very important.
9:31:34 AM
Co-Chair Stedman questioned if there was anyone who wished
to speak to the bill. Mr. Hopkins indicated that there had
been no objection from any of the surrounding communities in
regard to the changes in this bill. Co-Chair Stedman
inquired as to the public process used in determining the
additions and deletions. Mr. Hopkins referred to the
Division of Forestry online.
9:32:47 AM
MARTHA FREEMAN, FORESTRY RESOURCES PROGRAM MANAGER,
DEPARTMENT OF FORESTRY (Testified via teleconference),
explained the public process by stating that the main review
for this project began when updating the Tanana Valley
Forestry Management Plan, which culminated in an update in
2001. As part of the preparation for that update, the
package of proposed additions and deletions went out as a
public draft. The participants in discussion included a
citizens' advisory committee, an inter-agency planning team,
and public meetings throughout the Tanana Valley area. Ms.
Freeman noted that when public comments were received, there
had been a few parcels that generated objections or
controversy, so these parcels were deleted from this plan.
She informed the committee that the final package for this
bill had no objections remaining after this public process.
Ms. Maisch informed the committee that as some time had
passed since the original public feedback, the division
questioned special interest groups and landowners to make
sure there were no new problem since the original meetings.
The division also checked on the present land status to
locate any possible land changes. When changes were found,
some parcels were deleted, primarily concerning land
transferred to the University.
9:35:08 AM
Senator Olson wondered if there had been any objections from
the native corporations. Ms. Freeman responded there had
been no objection from the native communities on the
reorganization. She mentioned one concern of the native
communities was access areas in the Minto region, but the
reorganization does not change the access to these lands.
9:35:52 AM
JERRY MCCUTCHEON, ANCHORAGE, (Testified via teleconference),
questioned if this plan followed the best use of Mat-Su area
in taking down all the timber. He recommended that the land
remain intact and not be logged.
9:38:35 AM
Co-Chair Stedman pointed out for the record the pulp mill in
Sitka did not ship round logs to Japan. He explained that
round logs are shipped off of private land, including native
land, and the Mental Health Trust lands.
9:39:26 AM
Senator Thomas MOVED to REPORT SB 229 from Committee with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
SB 229 was REPORTED from Committee with a "do pass"
recommendation and previously published fiscal notes from
the Department of Natural Resources and the Department of
Administration.
AT EASE: 9:40:30 AM
RECONVENED: 10:49:24 AM
SENATE BILL NO. 256
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; amending certain appropriations;
ratifying certain expenditures; making appropriations
to capitalize funds; and providing for an effective
date."
Co-Chair Hoffman reconvened the meeting back to order to
address the CS 256/O before the committee.
TIM GRUSSENDORF, STAFF, SENATE FINANCE COMMITTEE, presented
an overview of changes to the FY 08 Supplemental requests.
He indicated that the first four changes came at the request
of the Governor.
Section 1-3 AA GGU Labor and Workforce Development
Occupational Safety and Health
Reverse the fund source change for this
component in the GGU supplemental, sections 1
-3. Current projections indicate that the
program will be able to absorb the increase
without the fund source change due to
unexpected vacancies.
$0.0
Section 1-3 AA GGU Transportation Central
Region Highways and Aviation
Reverse the fund source change for this
component in the GGU supplemental, sections 1
- 3. Current revenue projections for FY08 are
sufficient to fund $300 in this allocation.
$0.0
Section 1-3 AA GGU Transportation Northern
Region Highways and Aviation
Reverse the fund source change for this
component in the GGU supplemental, sections 1
- 3. This fund source conversion is no longer
needed in FY08 due to position vacancies.
$0.0
Mr. Grussendorf reported that the above three can absorb
these increases, without the fund source change, due to
unexpected vacancies.
Section 1-3 AA Statewide SU Supervisory Unit
The tentative Supervisory Unit agreement
calls for a wage increase of 5.5% and a
health insurance increase of $16 from $835
per month to $851 per month.
$10,441.0
Mr. Grussendorf explained that $6.3 million has been added
in and is expected to be ratified on March 12, 2008. There
is language in Section 1 that says if the agreement is not
ratified on March 12, this funding will not be there.
Section Commerce Revenue Sharing
New 2/29
$180 million for revenue sharing
$180,000.0
Mr. Grussendorf noted that there has been an addition of $30
million, from $150 million to $180 million.
Section Fund Capitalization
New 2/29 Statutory Budget Reserve
Appropriate $1 billion of the FY08 surplus to
the Statutory Budget Reserve
$1,000,000.0
Section Fund Capitalization
New 2/29 Constitutional Budget Reserve
Appropriate $2.6 billion of the FY08 surplus
to the CBR
$2,6000,000.0
Section Fund Capitalization
New 3/2 CBR Intent Language
It is the intent of the legislature that the
Department of Revenue invest the assets of
the constitutional budget reserve fund (art.
IX, sec. 17, Constitution of the State of
Alaska), in a manner maximizing the long term
earnings of the fund while meeting the
minimum liquidity requirements of the state.
$0.0
Section Fund Capitalization
New 3/2 CBR Intent Language
Add CBR Intent language clarifying that the
CBR deposit is a repayment to the CBR.
$0.0
Mr. Grussendorf commented that the two Fund Capitalizations
added CBR intent language that made it clear that the
legislature wanted to invest this money and it is a
repayment to the CBR by the Legislature, repaying half of
the states debt.
Section 14(b) Health and Social Services
Front Line Social Workers
Unanticipated one-time telephone purchase and
installation costs related to new Anchorage
lease. Move is planned for early March, 2008.
$320.6
Section 7-9 Health and Social Services
Behavioral Health Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($6,963.1)
Section 7-9 Health and Social Services
Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($46,548.5)
Section 7-9 Health and Social Services
Adult Public Assistance
Projected excess authorization due to
decrease in average payments since recipients
have higher incomes.
($700.0)
Section 7-9 Health and Social Services Senior and
Disabilities Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($1,654.4)
Mr. Grussendorf noted that the Health and Social Services
reductions made by the Governor were projected excess
authorization based on expenditures through January 2008.
The legislature agreed to take on these reductions.
Section 7-9 Law
Oil, Gas and Mining
This amendment reduces the original
supplemental request for from $1,750,000 to
$1,250,000. The Department of Natural
Resources contract for financial analysis of
the TransCanada proposal came in less than
anticipated, at $2.5 million rather than $3.0
million.
($500.0)
Mr. Grussendorf indicated that the Department of Law and the
Governor submitted this reduction of $500,000 and the
Legislature agreed to make the deduction
Section 7-9 Public Safety
Modified AST Detachments
Increased trooper move costs $425.0, dispatch
contracts with Kodiak and Wasilla (MatCom)
$420.3, lease costs $60.6, fuel/utility costs
$236.2, vehicle costs $610.9, and facilities
maintenance costs $25.5. FY09 increments are:
trooper move travel $425.0; lease $60.6;
fuel/utility $164.9; and vehicle $113.9.
Removed lease and maintenance costs increases
from supplemental request--Total reduction is
$86.1.
$1,692.4
Section 7-9 Public Safety
Modified Alaska Wildlife Troopers
Increased fuel/utility $70.8, vehicle $288.6
and facilities maintenance $17.1 costs. FY09
increments are: fuel/utility $38.6; vehicle
$145.3.
Removed facilities maintenance costs
increases from supplemental request--Total
reduction is $17.1.
$359.4
10:56:03 AM
Section 7-9 Public Safety
Modified AK Wildlife Troopers Aircraft Enforcement
Increased fuel/utility $95.2 and lease $80.2.
FY09 increments are: fuel/utility $151.1 and
lease,$80.2.
Removed lease costs increases from
supplemental request--Total reduction is
$80.2
$95.2
Section 7-9 Public Safety
AK Wildlife Troopers Marine Enforcement
Increased fuel/utility costs. FY09 increment
is $66.0.
$41.6
Section 7-9 Public Safety
Training Academy
Increased fuel/utility $5.2 and vehicle $11.6
costs. FY09 increment for fuel/utility costs
is $8.2.
$16.8
Section 7-9 Public Safety
Administrative Services
Increased fuel/utility $2.6, lease $9.2, and
vehicle $2.2 costs. FY09 increment is $9.2
for office lease costs.
Removed lease costs increases from
supplemental request--Total reduction is $9.2
$4.8
Section 7-9 Public Safety
Laboratory Services
Increased fuel/utility $15.5 and vehicle $8.9
costs. FY09 increments are: fuel/utility
$21.0 and vehicle $4.3.
$24.4
Section 7-9 Public Safety
Fire Service Training
Increased fuel/utility $8.3 and vehicle $9.4
costs. FY09 fuel/utility cost increment is
$9.6.
$17.7
Section 7-9 Public Safety
Fire Prevention Operations
RSS shortfall from building plan review fees.
Division would like to make this into a
straight GF operation since revenues vary
drastically. Included in the FY09 budget at
the same level of $220.0 Additional travel of
$50.0 for building life safety inspections
and to provide inspections in rural
locations. Funded in FY09 at $105.0.
Increased fuel/utility $8.3 and vehicle $4.8
costs. FY09 fuel/utility cost increment is
$4.5.
Removed funding replacing RSS shortfall from
building plan review fees--Total reduction is
$268.2
$13.1
Section 7-9 Public Safety
Rural Trooper Housing
Rural housing costs of $244.2 due to
unrealized SDPR including leases without rent
contribution at Selawik and for Bethel
commons. Increased fuel and utility costs of
$92.7. FY09 fuel/utility cost increment is
$147.1.
$92.7
Section 7-9 Public Safety
Alcoholic Beverage Control Board
Increased vehicle costs. FY09 increment is
$1.9.
$4.3
Mr. Grussendorf commented that in the Public Safety
Department, the supplementals were modified to increase in
fuel/utility increment amounts, but removed many other
funding requests.
Section 7-9 Public Safety
Judicial Services - Anchorage
Amendment reduces amount of supplemental
request from $620.3 to $477.6 since the Court
Service Officer positions won't be filled
until March.
($142.7)
Mr. Grussendorf indicated that the General Fund was reduced
by the request of the Governor.
Section 15(j) Transportation
Surface Transportation Program
Correct the total for Sec. 1, Ch. 61, SLA
2001, Page 35, line 19 from $485,506,000 to
$485,506,482 based on the allocation
requested in HB343, Sec. 15(k).
$0.5
Mr. Grussendorf explained the change was due to a technical
error, based on the allocation in HB343.
10:59:26 AM
Section Transportation
New 3/3 Capital
Restored Vetoed Capital Projects
$1,471.6
Mr. Grussendorf explained that the legislature was removing
the $50 million place-holder and inserted the vetoed capital
projects for $51, 479,000. The projects are in the new CS.
Section Transportation
Airport Improvement Program - Appropriation
The FY08 Airport Improvement Program
appropriation increases by $4,350.0 due to
the allocation change below: Sec 4, Ch 30,
SLA 2007, Pg 105, Ln 27
$0.0
Section Transportation
Airport Improvement Program - Allocation
New: Petersburg: Airport Runway Safety Area
The project is expected to be advertised in
April. The project will involve runway work
that will result in the airport being closed
for a few weeks and the timing for this work
is critical to minimize the impact of the
construction closure on the community and the
airlines. Funding this project in the
supplemental will enable the department to
move forward as soon as Airport Improvement
Program discretionary funds are available.
$0.0
Mr. Grussendorf commented that the Governor requested to
have this in the fast track due to timing for the Petersburg
airport runway and safety areas.
Co-Chair Stedman MOVED to ADOPT Committee Substitute SC
256(FIN)\O as the working document before this committee.
There being NO OBJECTION, work draft CSSB 256(FIN)\O was
adopted.
AT EASE: 11:00:36 AM
RECONVENED: 11:01:23 AM
Co-Chair Stedman MOVED to ADOPT Amendment #1:
Page 77, lines 8-12:
Delete all material
Page 77, line 13:
Re-letter subsection "(c)", subsection "(b)"
Page 77, following line 24:
Insert a new bill section to read:
"*Sec. 18. DEPARTMENT OF REVENUE. The amount
necessary to pay the first five ports of call
their share of the tax collected under AS
43.52.220 during calendar year 2007 is
appropriated from the commercial vessel passenger
tax account (AS 43.52.230(a)) to the Department of
Revenue for payments under the provisions as AS
43.52.230(b), during the fiscal year ending June
30, 2008."
Co-Chair Hoffman OBJECTED for discussion purposes.
Co-Chair Stedman explained that Amendment #1 was a technical
change due to the fact that the Commercial Vessel Passenger
Tax account is not under the Department of Environmental
Conservation but collected by the Department of Revenue. He
continued that the Port of Call payments are made by the
Department of Revenue not the Department of Environmental
Conservation.
Co-Chair Hoffman WITHDREW his OBJECTION.
Senator Olson asked for the names of five ports listed on
page 77, Section 16, line 8.
Co-Chair Stedman listed the ports as Ketchikan, Juneau,
Skagway, Sitka and other major ports.
There being no further OBJECTION Amendment #1 was ADOPTED.
11:03:20 AM
Senator Thomas explained the changes to Amendment #2. The
amendment changes page 83, line 3, removing $5 million and
inserting $25 million. This would even-up the situation with
the hatcheries, making an opportunity for a long-term fix.
Co-Chair Hoffman MOVED to ADOPT Amendment #2:
Page 83m Line 3
Delete $5,000,000
Insert: $25,000,000
There being NO OBJECTION, it was so ordered.
Senator Dyson MOVED to ADOPT Amendment #3:
Delete Line 28, Page 56 through Line 2, Page 57.
Co-Chair Hoffman OBJECTED for discussion purposes.
Senator Dyson believed that Line 28 on page 56 through Line
2 on Page 57 be deleted as it is more appropriate in the
capital budget but not the supplemental budget.
Co-Chair Hoffman MAINTAINED his OBJECTION.
Co-Chair Hoffman believed that the $300 million will address
about eighty percent of the homes in the State of Alaska. He
anticipated that it will cover approximately forty-five
thousand homes eligible for this program. He stressed that
it did not make sense to have the amount of savings,
estimated at $2.6 billion, and not address the energy needs
of Alaskans.
Co-Chair Stedman remarked that there is actually $3.6
billion available along with another possible $1.5 to $2
billion in revenue to be collected between January and June,
2008, due to the price of oil. He agreed that if there was
this substantial amount to be put into savings, then
aggressive steps should be taken to lower the energy demands
throughout the state. Senator Dyson believed that although
he agreed with the idea of supplementing the energy needs,
he thought it would be inappropriate to put it into the
supplemental budget.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
The MOTION FAILED (1-6).
Senator Dyson MOVED to ADOPT Amendment #4.
Page 51
Delete Lines 7 through 11.
Page 52
Delete Lines 15 through 17
Page 52, Amend Line 21 as follows:
*****Total Budget***** $1,096,330 [$51,096,330]
Page 53, Amend Lines 5 & 6 as follows:
1004 Unrestricted General Fund Receipts
$68,929,700[118,929,700]
***Total General Funds*** $18,929,700[$118,929,700]
Co-Chair Hoffman OBJECTED for discussion purposes.
Senator Dyson reiterated his previous argument that he
approved all the appropriations made in the capital budget
but he did not believe the included items belonged in the
supplemental budget. He commented that this was a betrayal
of the public process.
Co-Chair Hoffman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
The MOTION FAILED (1-6).
Karen Rehfeld, Director, Office of Management and Budget
thanked the committee for their consideration of the
amendments and looked forward to continuing to work through
the process.
11:10:46 AM
Co-Chair Stedman MOVED to REPORT SB 256 out of Committee
with individual recommendations and the accompanying fiscal
note.
Senator Dyson OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
OPPOSED: Dyson
The MOTION PASSED (6-1).
CSSB 256 (FIN) was REPORTED out of Committee with the
accompanying fiscal note and individual recommendations.
AT EASE: 11:11:34 AM
RECONVENED: 11:11:47 AM
ADJOURNMENT
The meeting was adjourned at 11:11 AM.
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