Legislature(2007 - 2008)SENATE FINANCE 532
08/07/2008 04:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB4001 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB4001 | TELECONFERENCED | |
| + | HB4001 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
August 7, 2008
4:19 p.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 4:19:57 PM.
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
Miles Baker, Staff, Co-Chair Stedman; Karen Rehfeld,
Director, Office of Management and Budget; Senator Thomas
Wagoner
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 4001 "An Act making supplemental appropriations,
capital appropriations, reappropriations, and
other appropriations; making appropriations to
capitalize a fund; and providing for an effective
date."
SB 4001 was scheduled but not heard.
CSHB 4001(FIN)
"An Act making supplemental appropriations,
capital appropriations, and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
SCS CSHB 4001(FIN) was REPORTED out of Committee
with a recommendation "to amend".
4:20:39 PM
CS FOR HOUSE BILL NO. 4001(FIN)
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Hoffman MOVED to ADOPT a new Senate Committee
Substitute for CSHB 4001(FIN), labeled 25-GH3056\O,
Bullard/Kane, 8/7/08.
Senator Dyson OBJECTED for discussion purposes.
4:20:58 PM
MILES BAKER, STAFF, CO-CHAIR STEDMAN, explained the new SCS
to CSHB 4001. He referred to a spreadsheet entitled "SB
4001/HB 4001 Compare" (copy on file.) It compares the
appropriation bills: conditions in FY 08, the Governor's
bill, the House CS, the Senate CS, and the Senate CS to CSHB
4001. The principal difference in the current Senate CS is
in Section 1 where the sum of $30 million is appropriated
from the general fund to the Alaska Gasline Inducement Act
(AGIA) reimbursement fund. The previous version of the bill
appropriated $30 million in general funds to the Alaska Gas
Pipeline Development Fund.
4:23:28 PM
Senator Dyson questioned the amount of the appropriation in
Section 1 and the note of a $10 million transfer to AGIA.
Co-Chair Stedman explained that the note refers to the
Senate version of the original bill. A section was deleted
that referred to a separate account controlled by the
Legislative Budget and Audit Committee and dispersed into
the AGIA account. The appropriation now goes from the
treasury into the AGIA account.
Senator Dyson requested an explanation of all areas that
have been changed.
Mr. Baker explained that in the notes, "S" means the Senate
version from 8-6-08. He explained the $10 million transfer.
The amount currently proposed is $30 million, $20 million
less than what the House passed.
Senator Dyson asked if AGIA and the new CS are identical to
what the House has agreed to. Co-Chair Stedman said the
House version had $50 million; the current CS is for $30
million.
4:26:07 PM
Senator Dyson asked if this bill needs to return to the
House if it is adopted. Co-Chair Stedman agreed it would.
Mr. Baker reported that Section 2 deals with the Power Cost
Equalization program supplemental appropriations.
Subsection (a) has not changed.
AT-EASE: 4:26:45 PM
RECONVENE: 4:27:12 PM
Mr. Baker continued to explain that Section 2(a) is the
$600,000 FY 08 supplemental for the PCE program. Each
version of the bill has included that amount, which was in
the original version of the bill and requested by the
administration.
Mr. Baker explained subsection (b). The current CS contains
a $14 million appropriation for the FY 09 PCE program. He
referred to an amendment that would modify that amount. He
clarified that $14 million is the same as in the previous
version of the bill. Missing in the current version is
subsection (c) which dealt with PCE changes.
4:29:01 PM
Mr. Baker explained that Section 3 contains the
appropriation for $1.9 million to the Department of Health
and Social Services for the hold harmless provisions of the
resource rebate. That amount is less than the previous
version of the bill which was for $2.1 million.
Mr. Baker reported that the Heating Fuel Rebate Program does
not exist in this version of the bill.
Mr. Baker related that Section 4 of the bill is for $60
million for the Alaska Housing Finance Corporation home
grant fund program. That amount is $10 million higher than
the previous version of the bill.
4:30:48 PM
Mr. Baker explained that Section 5(a) includes $5.5 million
for the bulk fuel revolving loan program. Subsections (b)
and (c) deal with the bulk fuel bridge loan fund.
Subsection (d) is $20 million for the Alaska Village
Electric Coop (AVEC) bulk fuel loan fund.
Mr. Baker explained Section 6 and the sum of $50 million for
the renewable energy grant fund. Subsection (b) adds intent
language that the $50 million is intended to be a
supplemental appropriation.
4:33:25 PM
Mr. Baker turned to Section 7, which deals with the Motor
Fuel Tax Suspension for $100,000 to hold municipalities
harmless for aviation fuel tax losses.
Mr. Baker related that Section 8 is for $5.5 million to the
Department of Natural Resources for gas pipeline
implementation.
Mr. Baker explained that Section 9 is the lapse language and
Section 10 deals with retroactivity to FY 08. Section 11
contains contingency language related to suspension of the
motor fuel tax and conditions that apply to the AVEC loan.
4:35:27 PM
Mr. Baker reported that the total cost for the FY 09
appropriation is estimated at $945.8 million. The estimated
cost to the treasury for the tax suspension is $36.6
million. The total cost of this bill is $982.5 million.
Senator Dyson MAINTAINED his OBJECTION.
4:37:07 PM
Co-Chair Stedman MOVED to ADOPT Amendment 1. He OBJECTED
for discussion purposes.
Co-Chair Stedman WITHDREW his motion to adopt Amendment 1.
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
offered to comment on the amendment.
Senator Dyson asked for Ms. Rehfeld's opinion on the
amendment. He wondered which components of the new CS were
objectionable to the administration. He voiced concern
about the House not concurring with items in the bill.
Co-Chair Stedman requested Ms. Rehfeld to point out
concerns.
Ms. Rehfeld said the administration is pleased with the
inclusion of the resource rebate at $1,200 and the reduction
of administration costs by including it with the PFD. She
also agreed with the suspension of the motor fuel tax.
Ms. Rehfeld commented positively about the Power Cost
Equalization (PCE) funding, the addition of the home energy
rebate program administered by AHFC, and the fuel purchase
assistance. She summarized that the administration was
pleased with the bill.
4:40:38 PM
Senator Dyson MAINTAINED his OBJECTION to adopting the
Senate CS. He requested an explanation of Section 5 (b),
(c), and (d), which he maintained are different from the
House version of the bill.
Co-Chair Hoffman explained that there is support for these
appropriations which were requested by the administration.
Senator Dyson asked if they were in the Governor's original
submittal. Co-Chair Hoffman said they were not, but two
were included in the House version; the bulk fuel revolving
loan and the bridge fuel loan.
Co-Chair Stedman pointed out that the bulk fuel bridge
program in the House column should also say $5,300,000.
Senator Dyson restated that the dollar amount should have
been included. Co-Chair Stedman agreed and said it was an
oversight.
4:43:27 PM
Senator Thomas asked Ms. Rehfeld about missing DOT capital
projects. Ms. Rehfeld commented that she was referring to
the energy components of the appropriation bill. She
thanked the Committee for including the components of the
AGIA implementation. The administration would have
preferred that more of their requests could have moved
forward. She hoped to work on them during the regular
session.
Senator Thomas asked about the motor fuel tax. Ms. Rehfeld
responded that there is clear language and penalties built
into the bill.
4:46:29 PM
Senator Dyson asked if there was money in the bill for the
Alaska Natural Gas Pipeline Development Authority (ANGDA).
Co-Chair Stedman said it wasn't in the bill.
Senator Dyson requested the administration's viewpoint.
Ms. Rehfeld thought the committee would continue to work on
those components during the regular session. Senator Dyson
saw it as a problem.
Senator Dyson MAINTAINED his OBJECTION to adopt the SCS.
A roll call vote was taken on the motion.
IN FAVOR: Thomas, Elton, Huggins, Olson, Hoffman, Stedman
OPPOSED: Dyson
The motion failed 1-6.
There being NO OBJECTION, SCS CSHB 4001 was adopted.
Co-Chair Hoffman MOVED to ADOPT Amendment 1:
Page 2, Lines 3-5
Delete all material
Insert "(b) The amount necessary, estimated to be
$23,000,000, is appropriated from the general fund to
the Alaska Energy Authority for payment of power cost
equalization for the fiscal year ending June 30, 2009"
Page 3, Line 12
After the word "implementation"
Insert "for the fiscal year ending June 30, 2009"
Page 3, Line 15
Delete "and 8"
Co-Chair Stedman OBJECTED for discussion purposes.
4:50:35 PM
Mr. Baker explained that the amendment deletes the current
subsection (b) which was a $14 million FY 09 supplemental to
the PCE program. The administration had asked for $9
million. Legislative Finance determined that was about $5
million shy, assuming no programmatic changes were needed.
The amendment would insert a new subsection containing $23
million to account for raising the PCE ceiling $1. The
language "the amount necessary, estimated to be" makes it an
open-ended appropriation.
Mr. Baker explained that the second part of the amendment
addresses page 3, line 12, which is an appropriation for
$5.5 million to the Department of Natural Resources. That
is more appropriately an operating budget item, not a
capital grant, as it appears in the current version of the
bill. The words "for the fiscal year ending June 30, 2009"
correct that problem.
Also, page 3, line 15, removes subsection 8, which ensures
that the appropriation is an operating budget item, not a
capital budget item.
4:52:42 PM
Senator Elton suggested on page 3, line 15, the wording "the
appropriation made in Section 4 of this act is for capital
projects and lapses under AS 37.25.020".
Mr. Baker pointed out that the final part of the amendment
should say "Delete and 8".
Co-Chair Stedman WITHDREW his OBJECTION to adopt Amendment
1. There being NO further OBJECTION, it was so ordered.
AT-EASE: 4:54:21 PM
RECONVENE: 4:54:53 PM
Co-Chair Stedman asked if there were any other comments.
Senator Thomas questioned the exclusion of the DOT projects
and the ANGDA money.
Co-Chair Hoffman pointed out that there would be
opportunities to make amendments on the floor.
4:56:00 PM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 4001 out of
Committee with individual recommendations.
Co-Chair Stedman OBJECTED for discussion purposes.
Senator Dyson OBJECTED to moving the bill out of committee.
A roll call vote was taken on the motion.
IN FAVOR: Thomas, Elton, Huggins, Olson, Hoffman, Stedman
OPPOSED: Dyson
The motion failed 1-6.
There being NO OBJECTION, it was so ordered.
SCS CSHB 4001(FIN) was REPORTED out of Committee with a
recommendation "to amend".
SENATE BILL NO. 4001
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making appropriations to capitalize a
fund; and providing for an effective date."
SB 4001 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 5:11 PM.
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