Legislature(2009 - 2010)SENATE FINANCE 532
04/11/2009 11:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB75 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 75 | TELECONFERENCED | |
| += | SB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 11, 2009
11:23 a.m.
11:23:26 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 11:23 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Miles Baker, Staff, Co-Chair Stedman; Karen Rehfeld,
Director, Office of Management and Budget, Office of the
Governor
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 75 "An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
CSSB 75 (FIN) was REPORTED out of Committee with a
"do pass" recommendation.
SB 170 "An Act modifying the Alaska unemployment
insurance statutes to comply with the requirements
of the federal economic stimulus bill by
redefining the base period for determining
eligibility for unemployment benefits; and
providing for an effective date."
CSSB 170 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with zero fiscal
note #1 by the Department of Labor and Workforce
Development.
11:24:06 AM
SENATE BILL NO. 75
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
AT-EASE: 11:24:37 AM
RECONVENED: 11:27:18 AM
Co-Chair Hoffman MOVED to adopt the work draft to SB 75,
labeled 26-GS1-3\T, Kane, 4/10/09.
Co-Chair Stedman OBJECTED for discussion purposes.
11:28:10 AM
MILES BAKER, STAFF, CO-CHAIR STEDMAN, referred to a document
entitled "2009 Legislature - Capital Budget Statewide Totals
- Senate Structure" (copy on file). He explained that the
first column is principally Section 1 of the bill - the FY
10 capital budget based on the governor's amended request.
Section 4 of the bill, the second column, contains the
cruise ship fund items. The third column consists of the
transportation stimulus items. The forth column is the FY
09 supplemental budget. The language items were moved into
their appropriate sections for totaling purposes in the
report.
Mr. Baker discussed the changes in the new version of the
bill. One project was accidently left off - the Department
of Commerce Manufacturing Extension Program. The intent was
to include all items with federal matches, such as this
program. This addition is found on page 3, lines 6 and 7,
for $806,401,000. The only other change that affects the
capital numbers is the administration's February 24
amendment which deleted thirteen items out of the
transportation portion of the bill. These transportation
items were moved to the stimulus portion of the bill. There
were three federal project additions which total $22.9
million. It was the intent to include the federal receipt
authority for surface transportation and aviation projects
in the FY 10 capital budget.
11:31:36 AM
Mr. Baker reported that the rest of the changes were
technical in nature. There were three Glenn Highway
projects and one Parks Highway project where the Milepost
numbers were added to the titles of the projects. There was
an incorrect statutory reference on page 43 regarding cruise
ship head tax funds. In the legislative appropriation
section, three re-appropriations were added in: Section 24
on page 70, a Fairbanks area wide reappropriation, Section
33, page 74, line 20, and Section 36, page 75, legislative
reappropriations regarding the balance of funds for the
Endangered Species Act.
11:33:28 AM
Mr. Baker addressed two dividend fund source changes: $29.9
of Alaska Housing Finance Corporation (AHFC) dividends and
$22.7 of Alaska Industrial Development and Export Authority
(AIDEA) dividends replaced $56.2 million in general funds.
That is shown on page 62. The $15 million going to Alaska
Gasline Inducement Act (AGIA) is now coming from AIDEA
dividends. The sum of $25 million to the renewable energy
grant fund is coming from AHFC dividends. The balance of
the $52.6 million went to federal aid highway state match.
11:34:53 AM
Mr. Baker summarized that the budget before the Committee is
$28.9 million higher in federal funds due to the DOT
projects. It is also $52.5 million higher in other funds,
and $51.7 million lower in general funds. The difference
between the two numbers is due to $806,000 added for the
Manufacturing Extension Program.
11:35:41 AM
Co-Chair Stedman WITHDREW his objection to the adoption of
the CS. There being NO OBJECTION, Version T was adopted.
11:36:14 AM
Senator Thomas MOVED to ADOPT Amendment 1:
Page 35, line 22:
Delete "10,000,000" in both places
Insert "15,300,000" in both places
Page 35, line 22:
Delete "UA Climate Projects"
Insert "UAF Energy Technology Building"
Page 35, lines 24 - 25:
Delete all material.
Page 39, line 19:
Delete "30,000,000"
Insert "30,300,000"
Page 39, line 21:
Delete "$33,200,000"
Insert "$33,500,000"
Page 39, line 25:
Delete "$1,230,384,368"
Insert "$1,230,684,368"
Co-Chair Stedman OBJECTED.
Senator Thomas explained the amendment swaps receipt
authority for two projects, the University of Alaska Climate
Project and the University of Alaska - Fairbanks Energy
Technology Building. With the emphasis today on Energy it
was deemed more appropriated to use federal receipts on the
Energy Technology Building. It has no impact on the budget
because it is receipt authority. It would allow the
university to begin the project, seek stimulus money, and
compete for federal grants and private money. The non-
general fund amount would be sufficient to begin the project
and reduce the amount of state funds needed to finish the
project. This funding is similar to how the West Ridge
Research building was funded.
AT-EASE: 11:38:10 AM
RECONVENED: 11:38:57 AM
Co-Chair Stedman noted that this important issue would be
worked on during the interim.
11:40:09 AM
Senator Thomas thought timing was everything. He wanted to
have assurance that it would happen.
Senator Thomas WITHDREW Amendment 1.
Co-Chair Stedman stated a commitment from the Senate Finance
co-chairs to have the Committee to work on a multitude of
issues in Fairbanks this coming summer.
AT-EASE: 11:41:05 AM
RECONVENED: 11:43:56 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, reported that yesterday the revised
spring forecast was released, which was not much different
that the previous February version. She spoke of a desire
to reduce the amount of the draw on reserves at the end of
the year. The current CS does make reductions as proposed;
however, there are some projects that are missing. Given
the revenue picture, the administration is willing to work
on addressing those projects when the revenue forecast
improves.
11:46:09 AM
Ms. Rehfeld hoped to continue to dialogue about including
the funding necessary to match federal and other fund
sources. In the area of energy and resource development,
the governor has four specific projects and priorities that
are not currently included in the CS that merit continued
discussion: the Alaska Spur Line Project, the Dalton Highway
Western Alaska Access, and on-going DNR reservoir study
work. The administration supports minimizing the draw on
the reserve and the budget with the proposed reductions
included.
11:47:31 AM
Senator Huggins asked for more information on the energy
projects.
Ms. Rehfeld repeated the requests that needed more
discussion: the Dalton Highway - Milepost 9-11, for $26
million; the Alaska gas spur line, for $8 million.
Senator Huggins asked if that was for in-state gas. Ms.
Rehfeld said it was $8 million that would go to the Alaska
Natural Gas Pipeline Development Authority (ANGDA).
Senator Huggins expressed frustration about lack of funding
for the railroad spur line. He requested more information
about whether there was a funding priority for the railroad
spur line. Ms. Rehfeld recalled funding in last year's
budget for the Point McKenzie rail extension. There is no
funding in the current CS.
Senator Huggins pointed out that last year there was $20
million for that project, of which $2.5 million was vetoed.
He expressed frustration about the veto system. He wished
for further conversation on that subject.
11:50:06 AM
Co-Chair Hoffman MOVED to report SB 75, Version T, out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSSB 75 (FIN) was REPORTED out of Committee with a "do pass"
recommendation.
AT-EASE: 11:50:50 AM
RECONVENED: 11:54:08 AM
SENATE BILL NO. 170
"An Act modifying the Alaska unemployment insurance
statutes to comply with the requirements of the federal
economic stimulus bill by redefining the base period
for determining eligibility for unemployment benefits;
and providing for an effective date."
Co-Chair Stedman noted that this was the second hearing of
the bill. On April 7, Version S was adopted.
Senator Ellis noted letters of support for the bill from the
National Federation of Independent Business and from the
Alaska State Chamber of Commerce (copies on file).
Co-Chair Hoffman MOVED to report CSSB 170 (FIN), Version S,
as amended, out of Committee with individual recommendations
and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSSB 170 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1 by the
Department of Labor and Workforce Development.
ADJOURNMENT
The meeting was adjourned at 11:56 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 75 Version T summary spreadsheet.pdf |
SFIN 4/11/2009 11:00:00 AM |
SB 75 |
| CSSB 75 Verson T.pdf |
SFIN 4/11/2009 11:00:00 AM |
SB 75 |
| SB 75 Amendment 1 C.6.pdf |
SFIN 4/11/2009 11:00:00 AM |
SB 75 |