Legislature(2009 - 2010)
04/07/2010 04:13 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB230 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
April 7, 2010
4:13 p.m.
4:13:31 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 4:13 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Miles Baker, Staff, Co-Chair Stedman
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 230 BUDGET: CAPITAL, SUPP. & OTHER APPROPS
SB 230 was HEARD and HELD in Committee for further
consideration.
SB 220 was SCHEDULED but not HEARD.
SENATE BILL NO. 230
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and other appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
4:13:47 PM
Co-Chair Hoffman MOVED to adopt the CS to SB 230, labeled
26-GS2824\E, Kane, 4/7/10 as the working document. Co-Chair
Stedman OBJECTED.
MILES BAKER, STAFF, CO-CHAIR STEDMAN, discussed the two
report packets included in the CS. He stated that packet
number one separates the bill by columns. Column one
includes the supplemental capital, which was submitted by
the governor as the 2010 capital supplemental items. Column
two describes the governor's deferred maintenance bill with
some modifications. Column three is considered the 2011
capital budget. Column four includes grants to municipality
named recipients with a 2010 effective date. Column five
includes the cruise head tax projects and column six
comprises the total.
Mr. Baker continued with packet two, which is organized
differently. He began with column one including items in
the budget and one of the three governor's bills. Column
two includes the Senate Committee Substitute (CS)
additions. The bottom of the column shows that the Senate
CS added $514.7 million. Column three is the total of the
first two with $2.2 billion. Column four includes the
governor's original submission and the final column
comprises the changes between the governor's total and the
Senate Finance Committee CS.
4:17:17 PM
Mr. Baker highlighted Section 1, Pages 2-6, the FY10
supplemental capital budget. Sections 2 and 3 are included
in Section 1 as the total. Section 4 begins on Page 8 and
includes the deferred maintenance budget section. He
pointed out Page 8, Line 10 and the governor's house
deferred maintenance addition of $6 million. Page 9
addresses $5 million in deferred maintenance for hatchery
facility upgrades. Section 7, Page 17-52 includes the 2011
capital budget. He continued that Page 18, Line 9 includes
the $4 million for the Kodiak launch complex. Line 16
includes $10 million to the Alaska Energy Authority (AEA)
for the Railbelt large scale hydro planning design and
permitting as recommended by the Senate Resources
Committee. He noted that Page 22, Lines 13-20 exhibits the
Village Safe Water and Wastewater infrastructure projects.
The program is structured differently in the bill, but the
amounts have not changed. The governor's submission
allocated funds on a straight percentage basis against
their deferred maintenance list, which is not reflective of
the funding destination. He explained that the allocation
was separated into two separate allocations, one for $29.1
million for the first time service projects and the
remaining $19.4 million for expansion upgrade replacement
of existing service provided in the communities. He pointed
out that Page 22 also addresses the municipal water, sewer,
and solid waste facilities grant program. The governor's
budget funded the first ten projects in the program. The
Senate CS funds an additional ten projects for $19.7
million. He continued with Page 51, Line 26 with the Senate
CS adding $24 million for the Alaska Court System including
their number one priority of $18 million for the Boney
Courthouse Campus in Anchorage.
4:21:48 PM
Mr. Baker reiterated that Section 10, Page 59 is presented
slightly differently. Typically, the section is included in
the 2011 Capital budget. This year the grants were removed.
The section has a 2010 effective date enabling the grant
money to go out immediately. The total for the grant
section as listed on the report is approximately $400
million. Section 13 includes the cruise ship funded
projects, which are typically separate. The funding source
is documented as "other funds." The "other fund" source was
extensive in the past, but currently is exhibited in one of
two general fund categories, but the cruise ship funding is
considered "other funds" due to its restricted nature. The
total spending for cruise ship funding is $45 million, with
$33 million in the commercial passenger vessel funds and
$11.7 in regional impact funds. The governor's original
proposal had $21 million in spending for the line item. The
remainder of the language section begins on Page 90. He
pointed out that Section 17 includes $140 million for the
Alaska Gasline Inducement Reimbursement Fund. The CS
removes the money from the general fund as opposed to the
Alaska Capital Income Corporation as was originally
proposed. Line 28, Page 90 shows $50 million in general
funds for the Renewable Energy Fund, which is $25 million
above the governor's request as recommended by the Senate
Resources Committee.
Mr. Baker continued with Line 30 and Power Project fund for
$10 million, $3 million greater than the governor's
request, also a recommendation of the Senate Resources
Committee work on the omnibus energy plan. Section 20, Page
91 includes the National Petroleum Reserve-Alaska (NPRA)
grants. He pointed out that Section 21, Page 92 shows the
projected earnings for the Renewable Energy Fund of $2
million. The earnings are reappropriated back to Alaska
Energy Authority (AEA) for the cost of managing the
Renewable Energy Grant Program. Section 24 includes a
reappropriation of $5.5 million to the Alaska Center for
Treatment Planning and Design in Anchorage.
4:26:15 PM
Mr. Baker discussed Section 26, Page 93 as the $60 million
transfer from the Marine Highway Vessel Replacement Fund to
the new Alaska class ferry. Section 27, Page 94-104
exhibits the legislative lapsing grants or scope changes of
previous legislative projects requested through the
Senators.
Co-Chair Stedman WITHDREW his OBJECTION.
Version E was ADOPTED.
Co-Chair Stedman commented that the Senate Finance
Committee added $500 million to the capital appropriations,
which is a job oriented bill. The committee worked last
session to reduce approximately $488 million from the
capital budget. He informed that the committee will
continue work on the bill with potential for another CS on
Friday.
4:28:32 PM
Mr. Baker acknowledged the contributions of Rob Carpenter
and Amy Fosket in the Legislative Finance Division and
Weston Eiler, staff to Senator Stedman.
Co-Chair Stedman credited the crew for working long hours
for many days to prepare the document.
Co-Chair Hoffman stated that the Senate Finance Committee
agreed to save $1.5 billion of the additional $2.2 billion
in surplus for 2010. He explained that $1.1 million would
forward fund education and $400 million would settle the
Constitutional Budget Reserve (CBR). He opined that the
action addresses most of the capital needs throughout the
state. He viewed this as a "catch up and a jobs" bill that
will meet the needs of the communities throughout Alaska.
Co-Chair Stedman commented that the current position of
savings for the state is approximately $10 billion with $12
billion forecasted within the next 18 months.
SB 230 was HEARD and HELD in Committee for further
consideration.
SB 220 was SCHEDULED but not HEARD.
ADJOURNMENT
The meeting was adjourned at 4:31 PM.
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