Legislature(2011 - 2012)SENATE FINANCE 532

03/05/2012 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 307 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
<Pending Referral>
*+ SB 184 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+= SB 130 ALASKA NATIVE LANGUAGE COUNCIL TELECONFERENCED
Moved CSSB 130(STA) Out of Committee
+= SB 135 CONTINUANCES IN CRIMINAL TRIALS; VICTIMS TELECONFERENCED
Moved CSSB 135(JUD) Out of Committee
+= HB 104 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Scheduled But Not Heard
+= HB 65 SENIOR CITIZEN HOUSING DEV. FUND GRANTS TELECONFERENCED
Heard & Held
+= SB 160 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ FY13 Capital Budget: Agency Overviews TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       March 5, 2012                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:24 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Hoffman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:03 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman, Co-Chair                                                                                                  
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Hollis French;  Representative Bryce  Edgmon; Karen                                                                    
Rehfeld, Director,  Office of  Management and  Budget; Loren                                                                    
Peterson,  Staff,  Senator  Donny  Olsen;  Jeanmarie  Davis,                                                                    
Director,  Division  of   Support  Services,  Department  of                                                                    
Natural   Resources;   Joe  Balash,   Deputy   Commissioner,                                                                    
Department    of    Natural   Resources;    Kevin    Brooks,                                                                    
Administrative   Director,    Division   of   Administrative                                                                    
Services,  Department of  Fish  and  Game; Charles  Swanton,                                                                    
Director,  Division of  Sport Fish,  Department of  Fish and                                                                    
Game;   Joseph   Schmidt,    Commissioner,   Department   of                                                                    
Corrections;   Leslie   Houston,   Director,   Division   of                                                                    
Administrative Services, Department of Corrections.                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jeff  Regnart, Director,  Division of  Commercial Fisheries,                                                                    
Department of Fish and Game.                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 130    ALASKA NATIVE LANGUAGE COUNCIL                                                                                        
                                                                                                                                
          SB 130 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and with a new fiscal impact                                                                     
          note from the Department of Commerce, Community                                                                       
          and Economic Development.                                                                                             
                                                                                                                                
SB 135    CONTINUANCES IN CRIMINAL TRIALS; VICTIMS                                                                              
                                                                                                                                
          SB 135 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and with a new indeterminate                                                                     
          fiscal note from the Senate Finance Committee for                                                                     
          the Department of Law, a new indeterminate fiscal                                                                     
          note from the Department of Administration, a                                                                         
          previously published indeterminate fiscal note:                                                                       
          FN2 (DOA), and a previously published zero fiscal                                                                     
          note: FN3 (DOC).                                                                                                      
                                                                                                                                
SB 160    BUDGET: CAPITAL                                                                                                       
                                                                                                                                
          SB 160 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 184    SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS                                                                             
                                                                                                                                
          SB 184 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 65     SENIOR CITIZEN HOUSING DEV. FUND GRANTS                                                                               
                                                                                                                                
          HB 65 was HEARD and HELD in committee for                                                                             
          further consideration.                                                                                                
                                                                                                                                
CSHB 104(RLS)                                                                                                                   
          ALASKA PERFORMANCE SCHOLARSHIPS                                                                                       
                                                                                                                                
          CSHB 104(RLS) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
CSHB 307(FIN)                                                                                                                   
          SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS                                                                             
                                                                                                                                
          CSHB 307(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
9:04:17 AM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 184                                                                                                             
                                                                                                                                
"An   Act   making  supplemental   appropriations,   capital                                                                    
appropriations,    and   other    appropriations;   amending                                                                    
appropriations;     repealing     appropriations;     making                                                                    
appropriations  to capitalize  funds; and  providing for  an                                                                    
effective date."                                                                                                                
                                                                                                                                
9:05:00 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman stated  that capital  budget items  in the                                                                    
supplemental  budget  would  not  be  discussed  during  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
9:05:16 AM                                                                                                                    
                                                                                                                                
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
stated that  the bill totaled approximately  $97 million, of                                                                    
which  $78.5 million  was  unrestricted  general funds.  She                                                                    
said  that  the  agency operating  supplementals  that  were                                                                    
included  in the  request totaled  $38.9  million, of  which                                                                    
$30.4  million   was  general   funds  and   included:  fire                                                                    
suppression,  disaster relief,  and  formula requests  under                                                                    
the adult  public assistance program. She  stated that there                                                                    
were  two  significant  settlements  included  in  the  bill                                                                    
totaling $38  million: the  University of  Alaska's Optional                                                                    
Retirement Plan settlement for $20  million and the Moore v.                                                                    
State case  settlement for $18  million. She  explained that                                                                    
the bill contained  18 sections. Sections 1  and 2 contained                                                                    
the  operating  numbers,  Sections  3  through  5  were  the                                                                    
capital numbers; the  language section of the  bill began in                                                                    
Section 6.                                                                                                                      
                                                                                                                                
9:07:02 AM                                                                                                                    
                                                                                                                                
Ms.   Rehfeld  read   the  requests   listed  on   the  FY12                                                                    
supplemental requests spreadsheet:                                                                                              
                                                                                                                                
     Administration                                                                                                             
     Office of Public Advocacy                                                                                                  
     Operational Costs for Caseload Increases                                                                                   
     Projections are based upon  actual expenditures for the                                                                    
     first  half of  FY2012  and comparisons  to prior  year                                                                    
     expenditures.  In FY2011,  OPA received  a supplemental                                                                    
     in the amount of $900.0.  The impact of this request is                                                                    
     being considered for a FY2013 budget amendment.                                                                            
     $800.0 - General Fund                                                                                                      
                                                                                                                                
     Administration                                                                                                             
     Public Defenders Agency                                                                                                    
     Operational Costs for Caseload Increases                                                                                   
     In FY2011 the agency  experienced a budget shortfall of                                                                    
     $300.0   which   was   covered   by   a   supplemental.                                                                    
     Projections are based upon  actual expenditures for the                                                                    
     first  half of  FY2012  and comparisons  to prior  year                                                                    
     expenditures.                                                                                                              
     The impact  of this request  is being considered  for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $1,000.0 - General Fund                                                                                                    
                                                                                                                                
     Commerce                                                                                                                   
    Alaska Industrial Development and Export Authority                                                                          
     Increased Costs for Financing Tools                                                                                        
     Increased  costs  for  developing tools  for  financing                                                                    
     major  economic development  infrastructure (industrial                                                                    
     roads   and   ports)   to  support   natural   resource                                                                    
     development in Alaska. This is a one-time item.                                                                            
     $150.0 - AIDEA Receipts                                                                                                    
                                                                                                                                
     Commerce                                                                                                                   
     Corporations, Business and Professional Licensing                                                                          
     Support for Board and Commission Members                                                                                   
     This  increase provides  funding support  for volunteer                                                                    
     boards  and  commissions  members to  stay  current  on                                                                    
     issues,   trends    and   policies    impacting   their                                                                    
     professions  and  to  maintain  the  quality  licensing                                                                    
     standards.  A   $244.6  increment  is  in   the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $244.6 - Receipt Supported Services                                                                                        
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
    Business Licensing and Corporations Indirect Costs                                                                          
     Increase  general fund  program  receipts to  correctly                                                                    
     charge   indirect  costs   related   to  the   Business                                                                    
     Licensing and Corporations  program. A $250.0 increment                                                                    
     is in the FY2013 Governor's budget                                                                                         
     $250.0 - General Fund Program Receipts                                                                                     
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
     Adjustment for Licensing Fees                                                                                              
     Fund   source   change  from   professional   licensing                                                                    
     receipts  (receipt supported  services) tot  eh general                                                                    
     fund  to  reimburse   the  professions  for  historical                                                                    
     indirect  cost overpayments  that were  associated with                                                                    
     the  Business License  and Corporations  programs. This                                                                    
     is a one-time funding change.                                                                                              
     $3,439.8 - General Fund - Receipt Supported Services                                                                       
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
     Implementation of Audit Recommendations                                                                                    
     Increase  receipt supported  services to  address audit                                                                    
     findings on  cost allocations to division  programs and                                                                    
     for remediation  of the investigations system.  This is                                                                    
     a one-time item.                                                                                                           
     $250.0 - Receipt Supported Services                                                                                        
                                                                                                                                
9:09:52 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued with her presentation of the                                                                              
supplemental requests:                                                                                                          
                                                                                                                                
     Corrections                                                                                                                
     Inmate Transportation                                                                                                      
     Increased Inmate Transportation Costs                                                                                      
     The  Department  of   Corrections  has  experienced  an                                                                    
     increase in the costs  within the Inmate Transportation                                                                    
     Unit   due  to   in-state  and   out-of-state  prisoner                                                                    
     transports associated  with population  management. The                                                                    
     average  daily in-state  offender population  from July                                                                    
     1, 2011  through December  31, 2011  was 3,851  with an                                                                    
     additional  1,050  offenders housed  out-of-state.  The                                                                    
     maximum  capacity  of   the  in-state  institutions  is                                                                    
     3,840.   The  average   daily  population   continually                                                                    
     exceeds  the maximum  capacity  creating  the need  for                                                                    
     offenders  to  be  transported  between  facilities  in                                                                    
     order to manage  the inmate population. This  is a one-                                                                    
     time item.                                                                                                                 
     $867.4 - General Fund                                                                                                      
                                                                                                                                
     Corrections                                                                                                                
     Community Jails                                                                                                            
     Additional  funding  id  necessary to  cover  operating                                                                    
     costs  of the  15  community jails  based on  financial                                                                    
     reports provided to the  Department of Corrections. The                                                                    
     department  is  currently   evaluating  the  costs  and                                                                    
     revising  the methodology  for funding  community jails                                                                    
     for consideration as a FY2012 budget amendment.                                                                            
     $600.0 - General Fund                                                                                                      
                                                                                                                                
     Education and Early Childhood Development                                                                                  
     Student and School Achievement                                                                                             
     Comprehensive System of  Student Assessment Contractual                                                                    
     Costs                                                                                                                      
     This Additional  funding is  needed to  accommodate the                                                                    
     negotiated  contract for  the  Comprehensive System  of                                                                    
     Student  Assessments.  The   FY2013  Governor's  budget                                                                    
     includes  an additional  $750.0  for modified  contract                                                                    
     items.                                                                                                                     
     $1,000.0 - General Fund                                                                                                    
                                                                                                                                
     Health and Social Services                                                                                                 
     Medical Assistance Administration                                                                                          
     Continued  work on  Health Information  Portability and                                                                    
     Accountability Act (HIPAA) Version 5010 Project                                                                            
     Additional    authority    for    federally    mandated                                                                    
     implementation   of    version   5010    medical   care                                                                    
     transactions and code sets. This is a one-time item.                                                                       
     $80.0 - General Fund                                                                                                       
     $720.0 - Federal Receipts                                                                                                  
                                                                                                                                
     Health and Social Services                                                                                                 
     McLaughlin Youth Center                                                                                                    
     Increased  Medical Costs  for  Juvenile Justice  System                                                                    
     Youth                                                                                                                      
     Statutorily required medical  services for youth within                                                                    
     the Juvenile  Justice facilities - will  be reallocated                                                                    
     via  revised programs  throughout  the DJJ  facilities.                                                                    
     This is a one-time item.                                                                                                   
     $627.5 - General Fund                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Alaska Temporary Assistance Program                                                                                        
     ARRA  Emergency Funding  for  Temporary Assistance  for                                                                    
     Needy Families (TANF) Program                                                                                              
     Revenues  made  available due  to  an  increase in  the                                                                    
     Alaska TANF  caseload. The division plans  to invest in                                                                    
     these TANF  emergency funds in  work and  job readiness                                                                    
     activities  and opportunities  for  engagement in  work                                                                    
     activities. This is a one-time item.                                                                                       
     $1,100.6 - 1212 Federal ARRA                                                                                               
                                                                                                                                
     Health and Social Services                                                                                                 
     Adult Public Assistance                                                                                                    
     Adult Public Assistance Caseload Growth                                                                                    
     Increased  program  enrollment,   particularly  in  the                                                                    
     disabled  and bling  category -  tied  to the  dramatic                                                                    
     growth  in the  Alaska  senior  population. A  $6,075.0                                                                    
     increment is included in the FY2013 Governor's budget.                                                                     
     $2,600.0 - General Fund                                                                                                    
                                                                                                                                
     Health and Social Services                                                                                                 
     Energy Assistance Program                                                                                                  
     Low Income Home Energy  Assistance Program (LIHEAP) and                                                                    
     Alaska Affordable Heating Program for the State                                                                            
     Based   on  projected   needs.  The   impact  of   this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $928.7 - General Fund                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Energy Assistance Program                                                                                                  
     Low Income Home Energy  Assistance Program (LIHEAP) and                                                                    
     Alaska Affordable Heating Program for Tribes                                                                               
     Based   on  projected   needs.  The   impact  of   this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $1,691.6 - General Fund                                                                                                    
                                                                                                                                
9:12:21 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman queried when  the latest assessment of need                                                                    
had been  conducted. Ms. Rehfeld responded  that the numbers                                                                    
had been provided upon the  introduction of the supplemental                                                                    
bill on  the 15th  day of  the current  legislative session.                                                                    
She  said  that  the  department   was  in  the  process  of                                                                    
reviewing the numbers  and could provide updates  at a later                                                                    
date.                                                                                                                           
                                                                                                                                
Ms.  Rehfeld   continued  with   her  presentation   of  the                                                                    
supplemental requests:                                                                                                          
                                                                                                                                
     Health and Social Services                                                                                                 
     Women, Children and Family Health                                                                                          
     Increase in Demand for Clinics for Newborn Screening                                                                       
     Greater  volume of  screenings  provided will  generate                                                                    
     additional  general fund  program receipts.  The impact                                                                    
     of this supplemental request is  being considered for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $350.0 - General Fund Program Receipts                                                                                     
                                                                                                                                
     Health and Social Services                                                                                                 
     Chronic Disease Prevention/Health Promotion                                                                                
     Reinstate  American   Recovery  and   Reinvestment  Act                                                                    
     (ARRA)  Authority  -   Tobacco,  Obesity  and  Diabetes                                                                    
     Programs                                                                                                                   
     Restore  FY2012  federal  authority for  this  program,                                                                    
     which  was deleted  earlier due  to an  indication that                                                                    
     federal revenues  would be withdrawn. Funding  has been                                                                    
     extended through FY2012. This is a one-time item.                                                                          
     $140.0 - Federal ARRA                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Epidemiology                                                                                                               
     Reinstate  American   Recovery  and   Reinvestment  Act                                                                    
     (ARRA)  Authority -  Health  Assessment and  Children's                                                                    
     Immunizations                                                                                                              
     Restore  FY2012  federal  authority for  this  program,                                                                    
     which  was deleted  earlier due  to an  indication that                                                                    
     the federal  revenues would  be withdrawn.  Funding has                                                                    
     been extended through FY2012. This is a one-time item.                                                                     
     $30.0 - Federal ARRA                                                                                                       
                                                                                                                                
     Health and Social Services                                                                                                 
     Senior and Disabilities Services Administration                                                                            
     Third  Party   Review  of  Home  and   Community  Based                                                                    
     Medicaid  Waiver  Denials Increased  federal  authority                                                                    
     for  review   of  eligibility  decisions   that  remove                                                                    
     clients from waivered services,  based on a recent one-                                                                    
     time federal grant  for review of all  denials. This is                                                                    
     a one-time item.                                                                                                           
     $250.0 - Federal Receipts                                                                                                  
                                                                                                                                
     Labor                                                                                                                      
     Worker's Compensation Benefits Guaranty Fund                                                                               
     Increase Workers'  Compensation Benefits  Guaranty Fund                                                                    
     Authority to Increased Legal Costs                                                                                         
     An increase  in Worker's Compensation  Benefit Guaranty                                                                    
     Fund   authorization  is   required   to  support   the                                                                    
     component's  legal   representation  provided   by  the                                                                    
     Department of  Law. The recent legal  decision, Charles                                                                    
     West  v.   State  of  Alaska,  Benefit   Guaranty  Fund                                                                    
     (Decision No.  145, January 20, 2011),  has resulted in                                                                    
     an  increase in  the number  of claims  requiring legal                                                                    
     representation  for  the  Fund.   The  impact  of  this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $168.0 - Workers' Compensation Benefits Guaranty Fund                                                                      
                                                                                                                                
     Labor                                                                                                                      
     Alaska Vocational Technical Center                                                                                         
     Replace Unrealized Program Receipts                                                                                        
     This fund  source change replaces  unrealizable general                                                                    
     fund  program receipts  with general  funds to  support                                                                    
     increased  operating  expenses for  existing  programs.                                                                    
     AVTEC's  expenses have  grown considerably  due to  the                                                                    
     higher  cost of  goods and  services. This  $250.0 fund                                                                    
    change is included in the FY2013 Governor's budget.                                                                         
     $250.0 - General Fund - General Fund Program Receipts                                                                      
                                                                                                                                
     Law                                                                                                                        
     Oil, Gas and Mining                                                                                                        
     Oil and Gas Outside Council                                                                                                
     Increased  litigation costs  for  oil  and gas  outside                                                                    
     council attributable  to three  types of  cases: tariff                                                                    
     proceedings;  Trans   Alaska  Pipeline   System  (TAPS)                                                                    
     property  tax  proceedings;  and oil  and  gas  royalty                                                                    
     issues.  An increment  of $6,150.0  is included  in the                                                                    
     FY2013 Governor's  budget and  is based  on anticipated                                                                    
     caseload.                                                                                                                  
     $3,116.0 - General Fund                                                                                                    
                                                                                                                                
     Law                                                                                                                        
     Transportation Section                                                                                                     
     Fast Ferry Litigation                                                                                                      
     In  FY2011, the  department  had $200,000  appropriated                                                                    
     for  the fast  ferry litigation.  Last year's  activity                                                                    
     however  exceeded  the   $200,000  and  the  department                                                                    
     covered $19,789 while  the Department of Transportation                                                                    
     paid   an  additional   $109,480.  Total   expenditures                                                                    
     associated  with the  fast ferry  lawsuit  to date  are                                                                    
     $569,955  (including $21,605  form  FY2012). In  FY2012                                                                    
     YTD, $219,081  has been expended and  it is anticipated                                                                    
     to ramp  up because  outside counsel has  been obtained                                                                    
     and discovery  activity will pick  up. An  increment of                                                                    
    $600.0 is included in the FY2013 Governor's budget.                                                                         
     $600.0 - General Fund                                                                                                      
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Office of the Commissioner                                                                                                 
     Base Realignment and Closure Commission Impact                                                                             
     Department  of  Defense   Secretary  Leon  Panetta  had                                                                    
     announced that the  plan to cut nearly  $500 billion in                                                                    
     the  next  10  years  from the  Department  of  Defense                                                                    
     budget   will  impact   all  50   states  and   a  Base                                                                    
     Realignment  and  Closure  Commission  (BRAC)  will  be                                                                    
     requested  of Congress  to address  facility reductions                                                                    
     as soon  as possible.  The U.S. military's  presence in                                                                    
     Alaska represents  10 percent  of the  state's economy.                                                                    
     The Alaska  Military Force Advocacy and  Structure Team                                                                    
     (AMFAST)  recommends  the  State   of  Alaska  hire  an                                                                    
     experienced consulting group  to address ideas proposed                                                                    
     by  the  next  BRAC.  This  request  will  promote  and                                                                    
     sustain Alaska's current  military facilities and force                                                                    
     structure.  The   impact  of  this  request   is  being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $300.0 - General Fund                                                                                                      
                                                                                                                                
9:16:10 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued with her presentation of the                                                                              
supplemental requests:                                                                                                          
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Army Guard Facilities Maintenance                                                                                          
     State  Match Requirement  Change at  Kodiak, Ketchikan,                                                                    
     and Kenai Armories                                                                                                         
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations  regarding funding and  armory use.                                                                    
     The impact  of this request  is being considered  for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $97.3 - General Fund Match - Federal Receipts                                                                              
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Army Guard Facilities Maintenance                                                                                          
     Bethel Armory Operations                                                                                                   
     Operating  funds for  the  new  Bethel Armory  starting                                                                    
     December  2011. The  impact of  this  request is  being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $94.6 - General Fund                                                                                                       
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Air Guard Facilities Maintenance                                                                                           
     Eielson  Air Force  Base  Electrical Usage  Calculation                                                                    
     Correction                                                                                                                 
     Eielson  Air  Force Base  discovered  an  error in  the                                                                    
     method  used  to  calculate that  Alaska  Air  National                                                                    
     Guard electrical  usage for the 168th  Wing. Funding is                                                                    
     requested  for  the  increase to  the  annual  cost  of                                                                    
     electricity.  The  impact  of  this  request  is  being                                                                    
     considered for an FY2013 budget amendment.                                                                                 
     $26.3 - General Fund                                                                                                       
     $78.8 - Federal Receipts                                                                                                   
     Military and Veterans Affairs                                                                                              
     Veteran's Services                                                                                                         
     Reduce Unrealizable Federal Funds                                                                                          
     The  U.S.  Department  of  Veterans'  Affairs  (VA)  no                                                                    
     longer  distributes federal  funding to  administer the                                                                    
     State  Approving  Agency   (SAA)  grant  for  Veteran's                                                                    
     Educational   Programs  (GI   Bill).  This   change  is                                                                    
     reflected in the FY2013 Governor's budget.                                                                                 
     $(95.8) - Federal Receipts                                                                                                 
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Veteran's Services                                                                                                         
     State Approving Agency Program Continuation                                                                                
     The  U.S.  Department  of  Veterans'  Affairs  (VA)  no                                                                    
     longer  distributes federal  funding to  administer the                                                                    
     State  Approving  Agency   (SAA)  grant  for  Veteran's                                                                    
     Educational   Programs  (GI   Bill).  This   change  is                                                                    
     reflected in the FY2013 Governor's budget.                                                                                 
     $95.8 - General Fund                                                                                                       
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Veterans' Services                                                                                                         
     Interior Alaska Veterans Cemetery Position                                                                                 
     A vacant position will be  transferred to the Veterans'                                                                    
     Services Office to  provide additional project planning                                                                    
     and coordination.  The impact of this  request is being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $41.3 - General Fund                                                                                                       
                                                                                                                                
     Natural Resources                                                                                                          
     Project Management and Permitting                                                                                          
     Wishbone   Hill  Coal   Project  Rapid   Health  Impact                                                                    
     Assessment                                                                                                                 
     A Rapid  Health Impact Assessment will  be conducted in                                                                    
     conjunction with the permit renewal  process. This is a                                                                    
     one-time item.                                                                                                             
     $39.2 - General Fund                                                                                                       
                                                                                                                                
     Natural Resources                                                                                                          
     Mining, Land and Water                                                                                                     
     Dam Safety Review - Red Dog Mine                                                                                           
     The Dam  Safety and  Construction Unit (Dam  Safety) is                                                                    
     expecting  to  receive  a  large  statutory  designated                                                                    
     program receipt  (SDPR) in an application  fee required                                                                    
     under   11  AAC   93.171  for   the  construction   and                                                                    
     modification of dams for the  expansion of the tailings                                                                    
     storage  facility  at the  Red  Dog  Mine in  northwest                                                                    
     Alaska. The impact of this  request is being considered                                                                    
     for a FY2012 budget amendment.                                                                                             
     $66.5 - Statutory Designated Program Receipts                                                                              
                                                                                                                                
     Natural Resources                                                                                                          
     Mining, Land and Water                                                                                                     
     Offshore Lease Sales at Nome                                                                                               
     This   request   provides   funding  for   securing   a                                                                    
     monitoring contractor for offshore  lease sales at Nome                                                                    
     to be  trained and in  place when  the ice goes  out at                                                                    
     Nome (early  to mid -June  2012). This is  reflected in                                                                    
     the FY2012 Governor's budget.                                                                                              
     $18.6 - General Fund Program Receipts                                                                                      
                                                                                                                                
     Natural Resources                                                                                                          
     Fire Suppression Activity                                                                                                  
     FY2012 Fire Suppression Activity                                                                                           
     This is  a preliminary  estimate of  supplemental needs                                                                    
     for spring firefighting and costs  of initial attack of                                                                    
     wildland fires through June 30, 2012.                                                                                      
     $4,892.5 - General Fund                                                                                                    
                                                                                                                                
     Public Safety                                                                                                              
     AST Detachments                                                                                                            
     24-Hour  Dispatch and  Prisoner  Transport Services  in                                                                    
     the City of Kotzebue                                                                                                       
     The  Department of  Public  Safety currently  contracts                                                                    
     with the  City of Kotzebue to  provide 24-hour dispatch                                                                    
     services and  for local transport  of prisoners  to and                                                                    
     from court.  The city  has historically  provided these                                                                    
     services  to the  state at  no  cost and  is no  longer                                                                    
     willing  to do  that. These  services are  required and                                                                    
     there are no practical  alternatives for the Department                                                                    
     of  Public  Safety.  The impact  of  this  supplemental                                                                    
     request  is  being  considered   doe  a  FY2013  budget                                                                    
     amendment.                                                                                                                 
     $75.0 - General Fund                                                                                                       
                                                                                                                                
9:19:19 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Public Safety                                                                                                              
     ATS Detachments                                                                                                            
    City of Kotzebue Jail Closure Transportation Coasts                                                                         
     Temporary funding  is necessary for  prisoner transport                                                                    
     between  Kotzebue  and  Nome   during  closure  of  the                                                                    
     Kotzebue  jail. This  assumes the  jail re-opens  on or                                                                    
     about February 1, 2012. Amounts  are based on December,                                                                    
     2011  actual  costs  of  $47.0,  with  an  increase  in                                                                    
     January  assuming some  transition  into  the jail  re-                                                                    
     opening.   Personal  services   costs   are  only   for                                                                    
     overtime,  not for  already budgeted  personal services                                                                    
     costs. This is a one-time item.                                                                                            
     $106.0 - General Fund                                                                                                      
                                                                                                                                
     Public Safety                                                                                                              
     AST Detachments                                                                                                            
     Replace  Federal   Pass  Thorough  Funds   from  Alaska                                                                    
     Highway Safety Office                                                                                                      
     The  Alaska Bureau  of Highway  Patrol  will no  longer                                                                    
     receive  federal  funds  for  non-DUI  related  traffic                                                                    
     enforcement. In  order to maintain  traffic enforcement                                                                    
     to include non-DUI specific  activity, such as impaired                                                                    
     driving,   youth   drivers,  aggressive   driving   and                                                                    
     speeding,  and  seat   belt  enforcement,  supplemental                                                                    
     funding  is  necessary  as the  current  budget  cannot                                                                    
     absorb   these   costs.  Additional   federal   funding                                                                    
     reductions  are  anticipated  for  DUI-related  traffic                                                                    
     enforcement  starting in  FY2014.  The  impact of  this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $1,900.0 - General Fund                                                                                                    
                                                                                                                                
     Public Safety                                                                                                              
     Alaska Criminal Records and ID                                                                                             
     Maintain Current Level of Services                                                                                         
     The  Criminal Records  and Identification  Bureau (R&I)                                                                    
     does  not have  adequate  general funds  in the  FY2012                                                                    
     operating budget  to maintain current  services without                                                                    
     taking  cost  containment  measures  that  will  impact                                                                    
     public  services and  the  timely  availability of  law                                                                    
     enforcement information. The impact  of this request is                                                                    
     being considered for a FY2013 budget amendment.                                                                            
     $200.0 - General Fund                                                                                                      
                                                                                                                                
     Revenue                                                                                                                    
     Tax Division                                                                                                               
     Litigation Support for Corporate Income Tax                                                                                
     Litigation  expenses  are  anticipated  to  generate  a                                                                    
     budget  shortfall  in the  first  part  of FY2012.  The                                                                    
     Department is  involved in  two cases  requiring expert                                                                    
     witnesses that  were unanticipated.  The funds  for the                                                                    
     expert witnesses  will be  paid through  a reimbursable                                                                    
     service agreement to  the Department of Law.  This is a                                                                    
     one-time item.                                                                                                             
     $150.0 - General Fund                                                                                                      
                                                                                                                                
     Revenue                                                                                                                    
     Treasury Division                                                                                                          
     Investment  Management   of  Power   Cost  Equalization                                                                    
     Endowment Fund                                                                                                             
     The  investment management  costs  for  the Power  Cost                                                                    
     Equalization  Endowment Fund  (PCE) have  increased due                                                                    
     to a  $400 million deposit  made in FY2011.  The amount                                                                    
     requested  will cover  the costs  for the  remainder of                                                                    
     FY2012.  An  increment  of $80.4  is  included  in  the                                                                    
     FY2012 Governor's budget.                                                                                                  
     $58.0 - Power Cost Equalization Endowment                                                                                  
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     State Equipment Fleet                                                                                                      
     Credit Card Fuel Program                                                                                                   
     Authorization   to   cover   projected   increases   in                                                                    
     expenditures related  to the credit card  fuel program.                                                                    
     A  $1,110.0   increase  is   included  in   the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $850.0 - Highway Working Capital Fund                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Region Facilities                                                                                                  
     Snow Removal Costs                                                                                                         
     Due to an  early and heavy snow  season, Central Region                                                                    
     Facilities  has exhausted  the snow  removal budget  in                                                                    
     November  and December.  Also, additional  snow hauling                                                                    
     services have  been incurred within the  Tudor Complex.                                                                    
     There is  no longer  adequate space to  stockpile snow,                                                                    
     so all  snow must  be hauled  to the  contractor's snow                                                                    
     dump  throughout the  winter. This  is a  one-time line                                                                    
     item.                                                                                                                      
     $85.0 - General Fund                                                                                                       
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Highways and Aviation                                                                                              
     New   Insurance   Requirements    for   Rural   Airport                                                                    
     Maintenance Contracts                                                                                                      
     A recent  change in how rural  contractors were covered                                                                    
     under  the  State's   accident  umbrella.  All  airport                                                                    
     maintenance contracts  are now required to  be insured.                                                                    
     An  increment  of  $356.3 is  included  in  the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $102.4 - General Fund                                                                                                      
                                                                                                                                
9:22:16 AM                                                                                                                    
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Highways and Aviation                                                                                              
     Anchorage Snow Removal Costs                                                                                               
     Snowfall   in  the   Anchorage   area   this  year   is                                                                    
     significantly  higher than  considered  normal for  the                                                                    
     area. The recent heavy snowstorms  and near record snow                                                                    
     accumulation in  November and December has  resulted in                                                                    
     unanticipated  hauling  costs  to  remove  excess  snow                                                                    
     plowed from  the roads onto the  shoulders and sidewalk                                                                    
     areas. This is a one-time item.                                                                                            
     $200.0 - General Fund                                                                                                      
                                                                                                                                
9:22:30 AM                                                                                                                    
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Northern Highways and Aviation                                                                                             
     New   Insurance   Requirements    for   Rural   Airport                                                                    
     Maintenance Contracts                                                                                                      
     A recent  change in how rural  contractors were covered                                                                    
     under  the  State's   accident  umbrella.  All  airport                                                                    
     maintenance contracts  are now required to  be insured.                                                                    
     An  increment  of  $423.6 is  included  in  the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $120.1 - General Fund                                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Southeast Highways and Aviation                                                                                            
    Winter Commodities - Sand and Ice Control Chemicals                                                                         
     High   snowfall   and  cold   temperatures   throughout                                                                    
     Southeast   Region  in   November  and   December  have                                                                    
     required  heavier  than  normal sand  and  ice  control                                                                    
     chemical use  to keep highways  and airports  safe. Due                                                                    
     to  stock depletion,  large quantities  of ice  control                                                                    
     chemicals were reordered in mid-winter.  This is a one-                                                                    
     time line item.                                                                                                            
     $257.0 - General Fund                                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Whittier Access and Tunnel                                                                                                 
     Whittier Tunnel Reduced Revenue Toll Collections                                                                           
     The majority  of Whittier  Access and  Tunnel's funding                                                                    
     is based on revenue  collections from the tunnel tolls.                                                                    
     Reduced travel  through the  tunnel and  reduced cruise                                                                    
     ship  dockings  has  resulted in  a  decrease  in  toll                                                                    
     collections.  In  addition  to  increased  costs,  toll                                                                    
     revenues have declined  over the past few  years due to                                                                    
     economic conditions, reduced  cruise ship dockings, and                                                                    
     increased  fuel  prices.  An  increment  of  $192.9  is                                                                    
     included in the Governor's FY2013 budget.                                                                                  
     $229.8 - General Fund                                                                                                      
                                                                                                                                
9:23:09 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Anchorage Airport Facilities                                                                                               
     Utilities  and  Building   Maintenance  for  Kulis  Air                                                                    
     National Guard Base                                                                                                        
     In September  2011, the Anchorage Airport  acquired the                                                                    
     management  of  the  Kulis   Air  National  Guard  Base                                                                    
     property  back from  the  U.S.  Department of  Defense.                                                                    
     Building  maintenance and  property upkeep  is now  the                                                                    
     responsibility of  the Anchorage Airport.  An increment                                                                    
     of $750.0  (IARF) is included in  the Governor's FY2013                                                                    
     budget.                                                                                                                    
     $625.0 - International Airport Revenue Fund                                                                                
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     AIA Field and Equipment Maintenance                                                                                        
     Purchase De-icing Chemicals                                                                                                
     In  FY2011, the  cost per  ton of  urea increased  from                                                                    
     $342 per  ton to  $719 per ton.  Also, the  airport has                                                                    
     commissioned a third new tank  for potassium acetate in                                                                    
     order  to  mitigate  continuing  supply  shortages.  An                                                                    
     increment of  $1,634.5 has been included  in the FY2013                                                                    
     Governor's budget.                                                                                                         
     $1,634.5 - International Airport Revenue Fund                                                                              
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     AIA Field and Equipment Maintenance                                                                                        
     Property Maintenance for Kulis  Air National Guard Base                                                                    
     Student  Allocation   (BSA)  In  September   2011,  the                                                                    
     Anchorage Airport acquired the  management of the Kulis                                                                    
     Air  National Guard  Base property  back form  the U.S.                                                                    
     Department   of  Defense.   The  acquisition   includes                                                                    
     approximately  130 acres  of  land, sidewalks,  parking                                                                    
     lots and access roads  which are not the responsibility                                                                    
     of  the  Anchorage  Airport.  AN  increment  of  $450.0                                                                    
    (IARF) is included in the Governor's FY2013 budget.                                                                         
     $375.0 - International Airport Revenue Fund                                                                                
                                                                                                                                
     University of Alaska                                                                                                       
     Anchorage Campus                                                                                                           
     Federal Receipt Authority for Pell Grants                                                                                  
     Additional  federal  receipt  authority  is  needed  to                                                                    
     accommodate  the increase  in  Pell  grant activity.  A                                                                    
     related   FY2013  budget   amendment   is  also   being                                                                    
     considered.                                                                                                                
     $5,000.0 - Federal Receipts                                                                                                
                                                                                                                                
9:24:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman solicited committee member questions                                                                           
concerning the FY12 supplemental requests.                                                                                      
                                                                                                                                
Ms. Rehfeld directed the committee to Page 9, line 79:                                                                          
                                                                                                                                
     Education and Early Development                                                                                            
     Commissioner's Office                                                                                                      
     Judgments and Settlements                                                                                                  
     Settlement   between   Department  of   Education   and                                                                    
     Citizens  for the  Educational Advancement  of Alaska's                                                                    
     Children  (CEAAC)  related  to  the  state's  education                                                                    
     system  for  the  fiscal years  ending  June  30,  2012                                                                    
     through June 30, 2017.                                                                                                     
     $18,000.0 - General Fund                                                                                                   
                                                                                                                                
Ms. Rehfeld added that the settlement listed specific                                                                           
requirements as to how the funds would be dispersed.                                                                            
Decisions would be made through a joint committee.                                                                              
                                                                                                                                
Ms. Rehfeld noted line 80:                                                                                                      
                                                                                                                                
     Law                                                                                                                        
     Deputy Attorney General's Office                                                                                           
     Judgments and Settlements                                                                                                  
     Actual  judgment and  settlement costs  received as  of                                                                    
     January 30, 2012.                                                                                                          
     $20,770.8 - General Fund                                                                                                   
                                                                                                                                
She stated that this was the largest settlement in the                                                                          
request and had to do with the university's optional                                                                            
retirement plan.                                                                                                                
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
     Scope Change:  Section 13, ch.29,  SLA 2008,  page 151,                                                                    
     lines 27-28                                                                                                                
     Anchorage   Armory   Roof    Replacement   and   G-Wing                                                                    
     Preparation                                                                                                                
     General Fund Match ($380.5)                                                                                                
     $380.5 - General Fund                                                                                                      
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
     Amend: Section 1, ch.5, FSSLA 2011, page 88, line 21                                                                       
     State  Match  Requirement  Change  for  Federal  Energy                                                                    
     Projects                                                                                                                   
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations funding and armory use.                                                                                
     $7.5 - General Fund Match - Federal Receipts                                                                               
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
    Amend: Section 4, ch.43, SLA 2010, page 12, line 27                                                                         
     State   Match    Requirement   Change    for   Deferred                                                                    
     Maintenance Projects in Kodiak, Ketchikan, and Kenai                                                                       
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations funding and armory use.                                                                                
     $737.5 - General Fund Match - Federal Receipts                                                                             
                                                                                                                                
     Natural Resources                                                                                                          
     Gas Pipeline Project                                                                                                       
     Extend the  lapse date  for permitting  and application                                                                    
     processing related to the  state gas pipeline right-of-                                                                    
     way work  related to bringing  North Slope  natural gas                                                                    
     to market, made  in Section 22(c), ch.14,  SLA 2009, as                                                                    
     amended by  sec.11(c), ch.1, FSSLA 2011,  from June 30,                                                                    
     2012 to June 30, 2013.                                                                                                     
                                                                                                                                
     State Debt and Other Obligations                                                                                           
     International Airports Revenue Bonds                                                                                       
     Amend: Section 32(q), ch.3, FSSLA 2011                                                                                     
     This allows the Alaska  International Airport System to                                                                    
     restructure   debt  payments   to  include   additional                                                                    
     passenger  facility   charge  (PFC)  revenue   and  the                                                                    
     International Airports Construction Fund.                                                                                  
     Int. Airports Revenue Fund - ($13,5000.0)                                                                                  
     $10,000.0 - Int. Airports Construction Fund                                                                                
     $3,500.0 - Passenger Facility Charges                                                                                      
                                                                                                                                
     Fund Capitalization                                                                                                        
     Disaster Relief Fund                                                                                                       
     Supplemental Disaster Funding                                                                                              
     Current   disasters  are   expected   to  exhaust   the                                                                    
     available general  funds in  the Disaster  Relief Fund.                                                                    
     In addition  to fall  and winter  storms, traditionally                                                                    
     there  are spring  floods that  have been  eligible for                                                                    
     expenditures form the Disaster  Relief Fund. The impact                                                                    
     of this supplemental request is  being considered for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $3,000.0 - General Fund                                                                                                    
                                                                                                                                
9:27:13 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld  explained that the  remaining line  items spoke                                                                    
to 3  ratification requests for fire  suppression for $36.4,                                                                    
as well as two small requests from public safety.                                                                               
                                                                                                                                
Co-Chair  Hoffman solicited  further questions  or testimony                                                                    
on the legislation.                                                                                                             
                                                                                                                                
SB  184  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 130                                                                                                           
                                                                                                                                
"An  Act  establishing in  the  Office  of the  Governor  an                                                                    
advisory  council  for  the preservation,  restoration,  and                                                                    
revitalization of Alaska Native languages."                                                                                     
                                                                                                                                
9:28:31 AM                                                                                                                    
                                                                                                                                
Senator Olson introduced Mr. Peterson.                                                                                          
                                                                                                                                
LOREN PETERSON,  STAFF, SENATOR DONNY OLSEN,  testified that                                                                    
the  companion bill,  HB 254,  had been  heard in  the other                                                                    
body and  set aside for  further discussion. He  stated that                                                                    
there had  been concerns  regarding the recommendation  of a                                                                    
bush  caucus  member to  be  appointed  to the  council.  He                                                                    
stressed that  it was important  that a  representative from                                                                    
rural  Alaska,  both  form the  House  and  Senate,  provide                                                                    
representation on the council.                                                                                                  
                                                                                                                                
9:30:18 AM                                                                                                                    
                                                                                                                                
Senator Olson  shared that there  had been a lot  of support                                                                    
throughout the state for the legislation.                                                                                       
                                                                                                                                
Co-Chair Hoffman discussed a fiscal  note from Department of                                                                    
Commerce,  Community and  Economic Development  for $240,200                                                                    
in general  funds to cover  the council's cost  of staffing,                                                                    
travel, and per diem for meetings.                                                                                              
                                                                                                                                
Senator Ellis MOVED  to report SB 130 out  of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
SB  130 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with a new  fiscal impact note  from the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
SENATE BILL NO. 135                                                                                                           
                                                                                                                                
     "An Act relating to the rights of crime victims;                                                                           
     relating to the duties of prosecuting attorneys; and                                                                       
     amending Rule 45, Alaska Rules of Criminal Procedure."                                                                     
                                                                                                                                
9:31:53 AM                                                                                                                    
                                                                                                                                
SENATOR HOLLIS  FRENCH, noted that the  previous fiscal note                                                                    
had  been replaced  by an  indeterminate note.  He explained                                                                    
that the bill was  designed to strengthen the constitutional                                                                    
right of a  victim to the timely disposition  of their case.                                                                    
He  said  that  frequently  there  were  lengthy  delays  in                                                                    
criminal cases being brought to trial.                                                                                          
                                                                                                                                
9:33:50 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman discussed  the  fiscal notes  in the  bill                                                                    
packet.                                                                                                                         
                                                                                                                                
Senator Ellis MOVED  to report SB 135 out  of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
SB  134 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and with  a  new  indeterminate fiscal  note                                                                    
from  the Senate  Finance Committee  for  the Department  of                                                                    
Law, a new indeterminate fiscal  note from the Department of                                                                    
Administration, a previously  published indeterminate fiscal                                                                    
note:  FN2 (DOA),  and a  previously  published zero  fiscal                                                                    
note: FN3 (DOC).                                                                                                                
                                                                                                                                
HOUSE BILL NO. 65                                                                                                             
                                                                                                                                
"An Act making regional  Native housing authorities eligible                                                                    
to  receive  grants  through   the  Alaska  Housing  Finance                                                                    
Corporation  from the  senior  citizens housing  development                                                                    
fund."                                                                                                                          
                                                                                                                                
9:35:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BRYCE EDGMON,  introduced HB  65. He  stated                                                                    
that  the intent  of the  legislation  was to  speak to  the                                                                    
increasing housing demands for  seniors. He relayed that the                                                                    
legislation would allow the  regional housing authorities in                                                                    
the state to  be more competitive when  attempting to access                                                                    
the  Senior Housing  Grant Fund  through the  Alaska Housing                                                                    
finance  Corporation (AHFC).  The housing  authorities would                                                                    
be placed  directly under Title  18, enabling them  to apply                                                                    
directly for the fund.                                                                                                          
                                                                                                                                
Senator Olson  asked how many  seniors were affected  by the                                                                    
lack provisions for the available housing grants.                                                                               
                                                                                                                                
Representative  Edgmon  assumed  that the  number  would  be                                                                    
significant.                                                                                                                    
                                                                                                                                
Senator Olson  queried the  distribution of  the legislative                                                                    
effects.                                                                                                                        
                                                                                                                                
Representative  Edgmon replied  that there  were 14  housing                                                                    
authorities across  the state, half  of which had  not taken                                                                    
the  step to  form a  not-for-profit. He  believed that  the                                                                    
bill would have significant impact across the state.                                                                            
                                                                                                                                
9:37:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  noted that the legislation  was a priority                                                                    
for the Association of Alaska Housing Authorities.                                                                              
                                                                                                                                
Co-Chair Hoffman OPENED public  testimony. There being none,                                                                    
public testimony was CLOSED.                                                                                                    
                                                                                                                                
Co-Chair Hoffman discussed a fiscal note in the packet.                                                                         
                                                                                                                                
HB  65  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:38:38 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:42:08 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 160                                                                                                             
                                                                                                                                
"An  Act  making   and  amending  appropriations,  including                                                                    
capital  appropriations  and  other  appropriations;  making                                                                    
appropriations  to capitalize  funds; and  providing for  an                                                                    
effective date."                                                                                                                
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES                                                                                               
                                                                                                                                
JEANMARIE  DAVIS, DIRECTOR,  DIVISION  OF SUPPORT  SERVICES,                                                                    
DEPARTMENT OF  NATURAL RESOURCES, detailed  the department's                                                                    
capital requests:                                                                                                               
                                                                                                                                
9:43:46 AM                                                                                                                    
                                                                                                                                
     RN 37762                                                                                                                   
     Cooperative Water Resource Program                                                                                         
     $2,500,000                                                                                                                 
                                                                                                                                
     This  project would  allow  the  Department of  Natural                                                                    
     Resources  (DNR)  to  accept  funds  from  the  private                                                                    
     sector,  and local  governments and  to pass  the funds                                                                    
     through to  US Geological Survey (USGS)  and US Natural                                                                    
     Resources  Conservation  Service   (NRCS)  as  part  of                                                                    
     funding  agreements  for   cooperative  water  resource                                                                    
     programs. Industry  and local government  often request                                                                    
     and  pay  for USGS  and  NRCS  to install  and  operate                                                                    
     equipment  to obtain  hydrologic data.  These data  are                                                                    
     needed   for   resource  development   and   permitting                                                                    
     projects  such  as  mining,  hydroelectric,  or  public                                                                    
     water  supply. If  gaging funding  is passed  through a                                                                    
     state agency,  funds can be  matched up to  100 percent                                                                    
     by the federal government.                                                                                                 
                                                                                                                                
Senator Egan asked  why the request had  increased nearly 3-                                                                    
fold from historic levels.                                                                                                      
                                                                                                                                
Ms. Davis  replied that  the Division  of Mining,  Land, and                                                                    
Water had  laid out  the requests and  would need  the large                                                                    
increase  in  order  to  accommodate  the  wide  variety  of                                                                    
requests.                                                                                                                       
                                                                                                                                
Senator Egan assumed that the  increase was due to increased                                                                    
mining activity and hydro development.                                                                                          
                                                                                                                                
JOE  BALASH,  DEPUTY  COMMISSIONER,  DEPARTMENT  OF  NATURAL                                                                    
RESOURCES,  interjected that  it  was  for activity  largely                                                                    
associated with  mining but could  also be attributed  to an                                                                    
increased  focus in  renewable power  in multiple  region of                                                                    
the state.                                                                                                                      
                                                                                                                                
9:45:18 AM                                                                                                                    
                                                                                                                                
Ms. Davis continued:                                                                                                            
                                                                                                                                
     RN 32552                                                                                                                   
     Land and Water Conservation Fund Federal Grant Program                                                                     
     $600,000                                                                                                                   
                                                                                                                                
     The  Land and  Water  Conservation  Fund Federal  Grant                                                                    
     Program (LWCF)  is a 50/50 matching  grant program that                                                                    
     provides  funding   for  the  development   of  outdoor                                                                    
     recreation areas  and facilities.  More than  any other                                                                    
     state in  the union,  Alaskans recreate  outdoors. LWCF                                                                    
     develops,  conserves and  maximizes Alaska's  resources                                                                    
     consistent  with  LWCF   policy,  addressing  a  second                                                                    
     desired end  result. LWCF program staff  is responsible                                                                    
     for  monitoring compliance  with  LWCF regulations  and                                                                    
     policies.                                                                                                                  
                                                                                                                                
     RN 6854                                                                                                                    
    National Recreational Trails Grant Federal Program                                                                          
     $2,600,000                                                                                                                 
                                                                                                                                
     Alaskans  rely on  trails  for recreation,  subsistence                                                                    
     and  transportation. These  trails need  maintenance to                                                                    
     ensure  safe passage  and to  ensure  that they  remain                                                                    
     open and  available for use.  Funds are  distributed by                                                                    
     80-20   matching  grants   for   trail  and   trailhead                                                                    
     development   and   maintenance,  and   for   education                                                                    
     programs  relating  to  trail  safety  and  responsible                                                                    
     trail  use.   Grants  are  awarded   to  organizations,                                                                    
     agencies  and local  governments. The  end result  is a                                                                    
     variety  of safe,  high-quality, tear  round, motorized                                                                    
     and non-motorized, trails.                                                                                                 
                                                                                                                                
     RN 39042                                                                                                                   
     National Coastal Wetlands Grant                                                                                            
     $1,060,000                                                                                                                 
                                                                                                                                
     The  Coastal   Wetlands  program  focuses   on  coastal                                                                    
     wetlands ecosystems including  both wetlands and upland                                                                    
     buffers. Wetlands  provide essential fish  and wildlife                                                                    
     habitat, which  in Alaska  support many  commercial and                                                                    
     recreational  human  uses,  particularly  in  and  near                                                                    
     communities,  parks,  and   refuges.  Wetlands  provide                                                                    
     substantial contributions  to water quality,  flood and                                                                    
     storm  control as  well as  providing habitat  for fish                                                                    
     and wildlife. This program  provides federal funding to                                                                    
     the  state for  the long-term  protection of  wetlands,                                                                    
     which  is matched  with private  sector donations.  The                                                                    
     program     considers     acquisition,     restoration,                                                                    
     enhancement or management of coastal wetlands.                                                                             
                                                                                                                                
     RN AMD 54914                                                                                                               
     Alaska Land Mobile  Radio Emergency Response Narrowband                                                                    
     Compliance                                                                                                                 
     $2,960,000                                                                                                                 
                                                                                                                                
     This is  a new FY2013  capital project due to  the cost                                                                    
     estimates  that were  finalized after  the December  15                                                                    
     release  of the  Governor's budget.  This project  will                                                                    
     fulfill  the  Federal Communications  Commission  (FCC)                                                                    
     January  1,  2013  mandate for  narrowbanding  specific                                                                    
     spectrum bands used by the  department and complete the                                                                    
     migration to  ALMR. The department is  migrating to the                                                                    
     shared  system, the  Alaska  Land  Mobile Radio  (ALMR)                                                                    
     system,   for   emergency   response,   logistics   and                                                                    
     operations. Sites  not served by ALMR  must be upgraded                                                                    
     to narrowband standards.  Radios and dispatch equipment                                                                    
     that is  not narrowbanded  and is  incompatible prevent                                                                    
     total migration to  the shared system and  also must be                                                                    
     upgraded.                                                                                                                  
                                                                                                                                
     RN AMD 54937                                                                                                               
     Wildland Fire-Fighting Aircraft Maintenance                                                                                
     $500,000                                                                                                                   
                                                                                                                                
     This  is  a new  FY2013  capital  project due  to  cost                                                                    
     estimates  that were  finalized after  the December  15                                                                    
     release   of  the   Governor's  budget.   This  request                                                                    
     promotes the  continued use of  state-operated aircraft                                                                    
     to   provide  Wildland   Fire  Suppression   on  state,                                                                    
     private, and local lands. This  proposal will allow for                                                                    
     the authority  to keep  revenues collected  from flying                                                                    
     to be  used for periodically scheduled  and unscheduled                                                                    
     maintenance.   These  maintenance   costs  exceed   the                                                                    
     capability  of  the  annual operating  budget  and  may                                                                    
     occur  once in  several  budget cycles.  Many of  these                                                                    
     revenues are reimbursable from the federal government.                                                                     
                                                                                                                                
     RN AMD 54913                                                                                                               
     Large Dam Projects Application Review                                                                                      
     $506,000                                                                                                                   
                                                                                                                                
     The purpose  of Large  Dam Projects  Application Review                                                                    
     is to fund the work  necessary to issue Certificates of                                                                    
     Approval for  the construction  and operation  of large                                                                    
     dams  based o  relatively  large fees.  Large dams  are                                                                    
     needed for  the development and operation  of mines and                                                                    
     for  hydroelectricity, which  are  consistent with  the                                                                    
     Department's   mission.   AS   46.17.020   allows   the                                                                    
     Department  to  retain  consultants to  assist  in  the                                                                    
     performance  of its  duties  under  the respective  dam                                                                    
     safety statutes  and regulations.  In order  to conduct                                                                    
     timely and  competent reviews  of complex  designs, the                                                                    
     Dam  Safety Unit  must utilize  this  provision of  the                                                                    
     statute to retain  qualified consultants under existing                                                                    
     term contracts with the Department.                                                                                        
                                                                                                                                
9:49:03 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman asked about the request for the Wood                                                                           
Tikchik Area.                                                                                                                   
                                                                                                                                
Ms. Davis explained:                                                                                                            
                                                                                                                                
     RN 51720                                                                                                                   
     Parks  and Outdoor  Recreation  Deferred Maintenance  -                                                                    
     Wood Tikchik Area                                                                                                          
     $70,000                                                                                                                    
                                                                                                                                
     The division is striving  to protect visitor health and                                                                    
     safety by  providing safe,  clean, and  well maintained                                                                    
     parks.  State Parks  had over  $60 million  in deferred                                                                    
     maintenance needs which are  causing serious health and                                                                    
     safety  concerns  and  are  generating  copious  public                                                                    
     comments that are embarrassing to  the State of Alaska.                                                                    
     This request  will fund  multiple projects  within each                                                                    
     of  the  seven regional  park  areas.  On a  percentage                                                                    
     basis, each area across the  state will have funding to                                                                    
     decrease    their   specific    deferred   maintenance,                                                                    
     including  upgrades, repairs  or replacement  of roads,                                                                    
     trails,  shelters,  toilets,  drinking  water  systems,                                                                    
     parking areas  and other facilities  to keep  them from                                                                    
     becoming even greater hazards.                                                                                             
                                                                                                                                
Ms.  Davis  specified that  the  repairs  would include  the                                                                    
Shelter  Point cabin,  the Eagle  Island Campground  and the                                                                    
Ranger Station.                                                                                                                 
                                                                                                                                
Senator Thomas asked what the  anticipated timeframe was for                                                                    
replacing the Department of  Natural Resources Wildland Fire                                                                    
Facility in Fairbanks.                                                                                                          
                                                                                                                                
Mr. Balash  explained that the  department was aware  of the                                                                    
facility  needs.  He  stated that  the  replacement  of  the                                                                    
facility was  in the 10-year  plan. He said that  the annual                                                                    
process  to determine  capital  budget  requests was  always                                                                    
difficult, but he  believed the issue would  be addressed in                                                                    
the near future.                                                                                                                
                                                                                                                                
Senator   Thomas   encouraged   the   department   to   make                                                                    
improvements sooner rather than later.                                                                                          
                                                                                                                                
Senator  Olson  noted  the five  aircraft  operated  by  the                                                                    
department.  He understood  that they  assisted in  fighting                                                                    
fires in the Lower 48.                                                                                                          
                                                                                                                                
Ms. Davis responded that when it  was not fire season in the                                                                    
Alaska, the state assisted other states in need.                                                                                
                                                                                                                                
Senator  Olson asked  where the  aircraft  were housed.  Ms.                                                                    
Davis replied that she would  get back to the committee with                                                                    
the information.                                                                                                                
                                                                                                                                
Senator Olsen queried whether the  state owned the aircraft.                                                                    
Ms. Davis said one was still under lease.                                                                                       
                                                                                                                                
DEPARTMENT OF FISH AND GAME                                                                                                   
                                                                                                                                
KEVIN   BROOKS,   ADMINISTRATIVE   DIRECTOR,   DIVISION   OF                                                                    
ADMINISTRATIVE  SERVICES,  DEPARTMENT   OF  FISH  AND  GAME,                                                                    
detailed the capital requests:                                                                                                  
                                                                                                                                
9:54:07 AM                                                                                                                    
                                                                                                                                
     RN 54418                                                                                                                   
     Kenai River King Salmon Sonar Assessment Program                                                                           
     $1,813,000                                                                                                                 
                                                                                                                                
     This capital  project will expedite the  transition and                                                                    
     implementation  to   a  new   sonar  program   to  more                                                                    
     accurately  assess   abundance  of  Kenai   River  king                                                                    
     salmon.  Results will  minimize uncertainty  and reduce                                                                    
     public  and user  group  concerns about  sustainability                                                                    
     and  in-season  management   of  a  recreationally  and                                                                    
     economically important resource.                                                                                           
                                                                                                                                
Senator  Thomas asked  if the  department was  familiar with                                                                    
the work  that the  Alaska Center for  Energy and  Power had                                                                    
done  in  the  Yukon  River when  positioning  the  in-river                                                                    
generation.  He  noted  that the  center  had  studied  fish                                                                    
populations  and migration  patterns and  had found  helpful                                                                    
information. He  wondered if the information  had been taken                                                                    
into consideration when determining placement.                                                                                  
                                                                                                                                
CHARLES   SWANTON,  DIRECTOR,   DIVISION   OF  SPORT   FISH,                                                                    
DEPARTMENT  OF FISH  AND GAME,  replied that  the department                                                                    
was familiar  with the  work. He said  that the  dynamics of                                                                    
different  river  systems, and  how  fish  reacted to  those                                                                    
dynamics, made the information non-applicable.                                                                                  
                                                                                                                                
Senator Thomas felt that the information could be applied.                                                                      
                                                                                                                                
9:57:08 AM                                                                                                                    
                                                                                                                                
Mr. Brooks continued with the capital requests:                                                                                 
                                                                                                                                
     RN 54419                                                                                                                   
     Wild/Hatchery Management Tools                                                                                             
     $2,500,000                                                                                                                 
                                                                                                                                
     To continue  economic benefits provided  by large-scale                                                                    
     hatchery production, the state  must ensure wild salmon                                                                    
     stocks are  managed for sustained yield  as required by                                                                    
     statute.  Research  on  possible  interactions  between                                                                    
     wild and  hatchery fish is  required that  will improve                                                                    
     this  knowledge in  Southeast  Alaska  (SE) and  Prince                                                                    
     William   Sound  (PWS).   Project  results   will  help                                                                    
     determine  if  wild  stocks  are  surviving  at  levels                                                                    
     commensurate  with  manager's expectations  at  current                                                                    
     hatchery production levels.  Benchmark information will                                                                    
     also  be provided  for  consideration  of increases  in                                                                    
     hatchery production.                                                                                                       
                                                                                                                                
     RN 54420                                                                                                                   
     Susitna River Sockeye Salmon Migration                                                                                     
     $625,000                                                                                                                   
                                                                                                                                
     The goal  of this project  is to better  understand the                                                                    
     spatial  and temporal  sockeye  salmon distribution  of                                                                    
     Susitna  River drainage  stocks  and  those from  other                                                                    
     Cook  Inlet  drainages  migrating  through  Upper  Cook                                                                    
     Inlet's (UCI)  Central District. This  knowledge should                                                                    
     allow managers the ability  to more efficiently harvest                                                                    
     non-Susitna stocks,  while allowing  Susitna-bound fish                                                                    
     passage through the Central District.                                                                                      
                                                                                                                                
     RN 54421                                                                                                                   
     Upper  Cook  Inlet East  Side  Set  Net Chinook  Salmon                                                                    
     Harvest Patterns                                                                                                           
     $789,000                                                                                                                   
                                                                                                                                
     The  objective  of  this   project  are  two-fold:  (1)                                                                    
     examine patters of Chinook salmon  harvests in the East                                                                    
     Side  Set Net  (ESSN)  fishery Upper  Cook Inlet  (UCI)                                                                    
     through analyses  of historical  fish ticket  data; and                                                                    
     (2)  examine patterns  of Chinook  salmon harvests  and                                                                    
     stock  composition in  the ESSN  fishery. This  project                                                                    
     could  provide  additional  fishing  opportunities  for                                                                    
     both sport  and commercial fishermen,  specifically for                                                                    
     sockeye  salmon  in  the  Kenai   Section  of  the  UCI                                                                    
     management  area and  for Chinook  salmon in  the Kenai                                                                    
     and  Kasilof Rivers  and provide  economic benefits  to                                                                    
     the Kenai Peninsula.                                                                                                       
                                                                                                                                
     RN 43347                                                                                                                   
     Research on Endangered Species Act Candidate Species                                                                       
     $1,550,000                                                                                                                 
                                                                                                                                
     This  capital project  will  provide  funds to  conduct                                                                    
     baseline  science to  inform listing  decisions (status                                                                    
     reviews) for species  currently under consideration for                                                                    
     listing  under   the  Endangered  Species   Act  (ESA):                                                                    
     Pacific  walrus,  Alexander   Archipelago  wolves,  and                                                                    
     flying  squirrels in  Southeast  Alaska,  or to  inform                                                                    
     biological opinions  of other required  ESA consultants                                                                    
     on Stellar sea lions and beluga whales in Cook Inlet.                                                                      
                                                                                                                                
10:00:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman   queried  the   need  to   assess  flying                                                                    
squirrels.  Mr. Brooks  replied  that he  believed that  the                                                                    
listing of flying squirrels could impact timber harvests.                                                                       
                                                                                                                                
Senator Thomas wondered if  the assessments were prioritized                                                                    
based on where money was  spent. Mr. Brooks replied that the                                                                    
department worked closely with  LAW to preempt listings; the                                                                    
six species  listed were determined  by both  departments to                                                                    
currently be most relevant to the state.                                                                                        
                                                                                                                                
Mr. Brooks continued with the capital requests:                                                                                 
                                                                                                                                
     RN 43322                                                                                                                   
     Facilities, Vessels, and  Aircraft Maintenance, Repair,                                                                    
     and Upgrades                                                                                                               
     $1,000,000                                                                                                                 
                                                                                                                                
     This  annual  request  funds  repair,  maintenance  and                                                                    
     renovation  of  department   facilities  statewide  and                                                                    
     vessel and aircraft  repair and maintenance. Facilities                                                                    
     funding is  managed by  the Division  of Administrative                                                                    
     Services  (DAS),  vessel  funding by  the  Division  of                                                                    
     Commercial  Fisheries  and   aircraft  funding  by  the                                                                    
     Divisions   of   Commercial  Fisheries   and   Wildlife                                                                    
     Conservation.                                                                                                              
                                                                                                                                
Senator Olson  wondered what types  of aircraft  the request                                                                    
was  intended to  cover. Mr.  Brooks replied  that he  could                                                                    
provide a list at a later date.                                                                                                 
                                                                                                                                
10:03:07 AM                                                                                                                   
                                                                                                                                
JEFF  REGNART, DIRECTOR,  DIVISION OF  COMMERCIAL FISHERIES,                                                                    
DEPARTMENT   OF   FISH   AND  GAME   (via   teleconference),                                                                    
interjected that the Division of Commercial Fisheries had                                                                       
four aircraft: 2 Super cubs, 1 Cessna 185, and a                                                                                
deHavilland Beaver, all located in Kodiak.                                                                                      
                                                                                                                                
Senator Olson asked if any of the aircraft had been in an                                                                       
accident within the last year. Mr. Regnart replied no.                                                                          
                                                                                                                                
Mr. Brooks continued with the capital requests:                                                                                 
                                                                                                                                
     RN 54422                                                                                                                   
     Boards of Fisheries and Game Sound Systems Replacement                                                                     
     $100,000                                                                                                                   
                                                                                                                                
     Alaska  Board  of  Fisheries   and  Game  meetings  are                                                                    
     recorded to  ensure an accurate record  of proceedings.                                                                    
     The audio recordings for  these meetings are frequently                                                                    
     utilized by  members of the  public, state  and federal                                                                    
     agencies,  and   court  systems.  All   recordings  and                                                                    
     meeting  documents  are  submitted  as  official  state                                                                    
     archives. The  Board of Fisheries typically  meets five                                                                    
     times  a year  plus  holds  teleconferences to  address                                                                    
     petitions,  for  approximately  40 days  annually.  The                                                                    
     Board of Game  typically meets three times  a year plus                                                                    
     holds  teleconferences,   for  approximately   20  days                                                                    
     annually.                                                                                                                  
                                                                                                                                
     RN 47181                                                                                                                   
     Replacement of R/V Resolution                                                                                              
     $3,700,000                                                                                                                 
                                                                                                                                
     The  existing  R/V Resolution  was  built  in 1970  and                                                                    
     requires substantial  capital funds to keep  the vessel                                                                    
     seaworthy.  The  vessel  supports  research  and  stock                                                                    
     assessment  operations in  the  Gulf  of Alaska,  which                                                                    
     uses  sophisticated  electronics,  requiring  continual                                                                    
     platform   modifications   to    support.   Without   a                                                                    
     replacement  vessel,  the division  risks  interrupting                                                                    
     long-term  data series  that ensure  reproductive goals                                                                    
     are  met and  may  be unable  to  sustain fisheries  on                                                                    
     stocks  of fish  and shellfish  based upon  control and                                                                    
     regulation  of harvests  through responsive  management                                                                    
     systems.                                                                                                                   
                                                                                                                                
Mr. Brooks added that the proceeds from the sale of the                                                                         
Resolution would be used to outfit the new boat.                                                                                
                                                                                                                                
Co-Chair Hoffman wondered when the sale would take place.                                                                       
Mr. Brooks replied that the sale would occur after the new                                                                      
boat was built.                                                                                                                 
                                                                                                                                
Mr. Brooks continued with the capital requests:                                                                                 
                                                                                                                                
     RN 54426                                                                                                                   
     Fish Passages,  Counting and  Sampling Sites,  and Weir                                                                    
     Facilities Design, Repair and Upgrades                                                                                     
     $700,000                                                                                                                   
                                                                                                                                
     This  initial project  funding will  be  used to  cover                                                                    
     design and  engineering services,  and some  repairs of                                                                    
     numerous  fish passages,  counting and  sampling sites,                                                                    
     and    weir   facilities    across   the    state.   As                                                                    
     designs/estimates  are completed,  and funding  allows,                                                                    
     additional contracts  will be issued for  the follow-on                                                                    
     construction services.  Major locations  with immediate                                                                    
     needs  to remain  operationally viable  include: Fraser                                                                    
     Lake  fish   passage  design/repairs/upgrades,  Crooked                                                                    
     Creek  Raceway  design/repairs/upgrades,  Chignik  weir                                                                    
     upgrades and  repairs, plus a variety  of other Afognak                                                                    
     Island  fish  passage/weir projects.  These  facilities                                                                    
     are ling-term  (very old) major  project sites  for the                                                                    
     department, and are quite complex.                                                                                         
                                                                                                                                
     RN 50951                                                                                                                   
     Eradication of Invasive Tunicates  in Whiting Harbor in                                                                    
     Sitka                                                                                                                      
     $500,000                                                                                                                   
     This  project will  provide  the  Alaska Department  of                                                                    
     Fish and  Game funds  to support  efforts aimed  at the                                                                    
     containment  and  eradication   of  invasive  tunicates                                                                    
     recently  found in  Whiting Harbor,  Sitka and  monitor                                                                    
     the   area  for   two   additional   years  to   assess                                                                    
     effectiveness of the projected response efforts.                                                                           
                                                                                                                                
     RN 30432                                                                                                                   
     Sport Fish Recreational Boating Access                                                                                     
     $2,500,000                                                                                                                 
                                                                                                                                
     This annual  request authorizes  the Division  of Sport                                                                    
     Fish to continue to  construct and upgrade recreational                                                                    
     power   boating  and   sport  fish   access  facilities                                                                    
     statewide   using    Sport   Fish    Restoration   Fund                                                                    
     apportionment  funds comprised  of  75 percent  federal                                                                    
     assistance  and 25  percent non-federal  match. Federal                                                                    
     regulations  require  that  15 percent  of  the  annual                                                                    
     Sport  Fish Restoration  (Dingell-Johnson/Wallop-Breaux                                                                    
     Amendment)  Fund  apportionment  will be  dedicated  to                                                                    
     projects  that  benefit   recreational  power  boaters.                                                                    
     Projects   include  boat   launches,  mooring   floats,                                                                    
     parking lots, restrooms,  fish cleaning facilities, and                                                                    
     other services.                                                                                                            
                                                                                                                                
     RN 33647                                                                                                                   
     Pacific Coastal Salmon Recovery Fund                                                                                       
     $7,500,000                                                                                                                 
                                                                                                                                
     This  project  will  allow the  department  to  receive                                                                    
     federal  grant funds  for  the  Pacific Coastal  Salmon                                                                    
     Recovery Fund. This has been  an on-going program since                                                                    
     FY2000  and  provides  funding  for  a  wide  range  of                                                                    
     fisheries  research, management,  and restoration  work                                                                    
     which will enhance the  agency's ability to sustainably                                                                    
     manage Alaska's  salmon and  contribute to  the economy                                                                    
     and  general  well-being  of   the  people  of  Alaska.                                                                    
     Federal funding  has been going down  and will continue                                                                    
     to  do so.  Starting in  state FY2010,  state match  is                                                                    
     required per the  federal appropriation. The department                                                                    
     passes the  33 percent match requirement  on to project                                                                    
     funding recipients.                                                                                                        
                                                                                                                                
     RN 41451                                                                                                                   
     Equipment   Replacement   and  Upgrade   for   Wildlife                                                                    
     Research and Management Statewide Programs                                                                                 
     $200,000                                                                                                                   
                                                                                                                                
     The  Division  of  Wildlife  Conservation  maintains  a                                                                    
     presence  in 22  locations statewide.  Field management                                                                    
     and  research  staff  must  use  motor  vehicles,  all-                                                                    
     terrain  vehicles (ATV),  snow machines,  and boats  to                                                                    
     access large areas  of land and water  to perform their                                                                    
     wildlife management and  research duties. Technological                                                                    
     equipment  is necessary  to help  staff communicate  in                                                                    
     the   field  and   to  enhance   computer  applications                                                                    
     including  GIS  and   web-based  software  development.                                                                    
     Equipment  needs replacement  on a  scheduled basis  to                                                                    
     ensure  safety and  dependability  for  field staff  as                                                                    
     they execute their duties.                                                                                                 
                                                                                                                                
     RN 54772                                                                                                                   
     Seward  Vessel   Wash-Down  and   Wastewater  Recycling                                                                    
     Facility                                                                                                                   
     $641,300                                                                                                                   
                                                                                                                                
     The  Exxon Valdez  Oil Spill  Trustee Council  (EVOSTC)                                                                    
     will   provide  one-time   capital   funding  for   the                                                                    
     construction  of  a  vessel  wash-down  and  wastewater                                                                    
     recycling  facility  to the  City  of  Seward -  Harbor                                                                    
     Department.  The project  will include  a concrete  pad                                                                    
     which drains  into a system that  collects, treats, and                                                                    
     recycles 100  percent of the wastewater  for subsequent                                                                    
     vessel washing. This project will  help protect the bay                                                                    
     from  incremental  pollutions  associated  with  vessel                                                                    
     cleaning  and maintenance  activities that  may prevent                                                                    
     Resurrection Bay from fully  recovering from the spill.                                                                    
     Once  complete, the  City of  Seward  will operate  and                                                                    
     maintain the facility.                                                                                                     
                                                                                                                                
     RN 45482                                                                                                                   
    Deferred Maintenance, Renewal, Repair and Equipment                                                                         
     $1,400,000                                                                                                                 
                                                                                                                                
     This is an appropriation  for the department's deferred                                                                    
     maintenance program  and the  details are  described in                                                                    
     the allocations.                                                                                                           
                                                                                                                                
10:10:03 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  wondered if there  were any  general funds                                                                    
appropriated  for  releasing  additional salmon  into  dying                                                                    
streams.  Mr.  Brooks  replied   that  the  departments  top                                                                    
priority request was for $1.8 million for the Kenai River.                                                                      
                                                                                                                                
Co-Chair  Hoffman   argued  that  the  funds   were  for  an                                                                    
assessment of the  river and not to replenish.  He urged the                                                                    
department to be more proactive  in adding additional salmon                                                                    
to Alaska's rivers.                                                                                                             
                                                                                                                                
Senator Olson added that not  enough was being done to avoid                                                                    
the  depletion of  the fish  population in  Alaska's rivers.                                                                    
He  opined   that  the  department   had  not   presented  a                                                                    
definitive way to create a  program that would ensure future                                                                    
escapement stocks for sport fishing and subsistence.                                                                            
                                                                                                                                
Mr.  Brooks  replied  that the  issue  should  be  discussed                                                                    
further.                                                                                                                        
                                                                                                                                
10:13:21 AM                                                                                                                   
                                                                                                                                
Mr. Regnart added that the  department was very aware of the                                                                    
issue.  He stated  that there  were  on-going projects  that                                                                    
would  hopefully  result  in   new  ways  to  approach  fish                                                                    
population  management. He  assured the  committee that  the                                                                    
department was doing everything in  its power to comply with                                                                    
the  constitutional   mandate  to  assure  that   fish  were                                                                    
returning  to  Alaska's  rivers.  He  said  that  department                                                                    
members would  be discussing  the issue  in Bethel  over the                                                                    
next few days.                                                                                                                  
                                                                                                                                
Senator Olson stated that there  was only a small portion of                                                                    
the  departments capital  requests  that  was going  towards                                                                    
increasing the  salmon runs for  the future. He asked  if he                                                                    
could  expect  to  see the  development  of  more  proactive                                                                    
programs in the future.                                                                                                         
                                                                                                                                
Mr.  Regnart  replied that  the  concerns  of the  committee                                                                    
would be taken into  consideration during further department                                                                    
discussion concerning new work.                                                                                                 
                                                                                                                                
Senator  Olson stated  that  he looked  forward  to the  new                                                                    
programs.                                                                                                                       
                                                                                                                                
Senator Thomas echoed the concerns.  He pointed attention to                                                                    
Page 23,  RN 41451. He  wondered if  any of the  funding for                                                                    
the request  would be available for  airboat maintenance and                                                                    
refurbishing in the Interior River System.                                                                                      
                                                                                                                                
Mr. Brooks responded in the affirmative.                                                                                        
                                                                                                                                
10:16:39 AM                                                                                                                   
                                                                                                                                
Senator McGuire  stated that the  department should  be more                                                                    
focused on initiatives. She believed  that the salmon stocks                                                                    
were more important than  deferred maintenance of buildings.                                                                    
She  spoke  of  her  work  with  the  Moose  Federation  and                                                                    
wondered  if  the   department  supported  the  federation's                                                                    
initiatives.                                                                                                                    
                                                                                                                                
Mr.  Brooks replied  that the  department  had been  working                                                                    
with the  Moose Federation  to help  quell the  instances of                                                                    
moose  on  the  highways.  He  furthered  that  efforts  for                                                                    
wildlife  conservation could  be found  in the  department's                                                                    
operating requests.                                                                                                             
                                                                                                                                
Senator  McGuire stated  that  it would  be  helpful if  the                                                                    
department  would  present   future  initiative  plans.  She                                                                    
wondered if the department could benefit from more                                                                              
legislative guidance.                                                                                                           
                                                                                                                                
10:19:49 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  believed that the focus  of the department                                                                    
should not be  studies and tools for  assessment, but rather                                                                    
it should  become more  proactive in  getting more  game and                                                                    
fish to all Alaskans.                                                                                                           
                                                                                                                                
10:21:31 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF CORRECTIONS                                                                                                     
                                                                                                                                
JOSEPH SCHMIDT, COMMISSIONER, DEPARTMENT OF CORRECTIONS,                                                                        
presented the department's capital requests:                                                                                    
                                                                                                                                
     RN 47567                                                                                                                   
     Goose Creek Correctional  Center Start-Up Furniture and                                                                    
     Equipment                                                                                                                  
     $5,000,000                                                                                                                 
                                                                                                                                
     Construction of Goose  Creek Correctional Center (GCCC)                                                                    
     is complete  and housing of  offenders is  scheduled to                                                                    
     begin in  calendar year 2012. The  requested funding is                                                                    
     needed to  support the costs  associated with  the one-                                                                    
     time   start-up  items   and  the   initial  Furniture,                                                                    
     Fixtures  &   Equipment  (FF&E)  needed  to   meet  the                                                                    
     operational needs of the new facility.                                                                                     
                                                                                                                                
     RN 46995                                                                                                                   
     Information Technology  MIS/Disaster Recovery Equipment                                                                    
     & Novell Replacement Project                                                                                               
     $250,000                                                                                                                   
                                                                                                                                
     Design   and  establish   a  reliable   recovery  plan,                                                                    
     infrastructure,  equipment, and  networking system  for                                                                    
     the Department of Corrections.  This project assists in                                                                    
     providing   secure   confinement,   and   keeping   the                                                                    
     community   safe   from   offenders   placed   in   the                                                                    
     department's custody.                                                                                                      
                                                                                                                                
     RN 45637                                                                                                                   
     Annual Facilities Maintenance and Repairs                                                                                  
     $1,000,000                                                                                                                 
     This  project   will  provide  funding   for  essential                                                                    
     renewal,   replacement,   renovation,  remodeling   and                                                                    
     repair of electrical,  mechanical, roofing, walls, fire                                                                    
     and  life safety,  security, structural,  food service,                                                                    
     pavement and site drainage  systems ay all correctional                                                                    
     facilities. This  work is required to  enable continued                                                                    
     safe,  secure and  efficient operation  of the  24-hour                                                                    
     incarceration  facilities.  This   project  assists  in                                                                    
     providing secure confinement  and keeping the community                                                                    
     safe   from  offenders   placed  in   the  department's                                                                    
     custody.                                                                                                                   
                                                                                                                                
     RN 49376                                                                                                                   
    Deferred Maintenance, Renewal, Repair and Equipment                                                                         
     $5,000,000                                                                                                                 
                                                                                                                                
     This project will  provide deferred maintenance funding                                                                    
     for  117 state-owned  buildings.  Areas of  maintenance                                                                    
     this project  will address include but  are not limited                                                                    
     to  electrical,  mechanical,  roofing,  walls,  safety,                                                                    
     security,  structural,   pavement  and   site  drainage                                                                    
     systems.  This work  is  required  to enable  continued                                                                    
     safe,  secure and  efficient operation  of the  24-hour                                                                    
     incarceration facilities.                                                                                                  
                                                                                                                                
10:22:48 AM                                                                                                                   
                                                                                                                                
Senator  McGuire  felt  that $5  million  was  an  excessive                                                                    
amount  of money  for  furniture at  GCCC.  She wondered  if                                                                    
furniture could be  pulled from state surplus  and reused to                                                                    
furnish the facility.                                                                                                           
                                                                                                                                
LESLIE   HOUSTON,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,   DEPARTMENT  OF   CORRECTIONS,   said  that   the                                                                    
department had explored the idea  of using surplus furniture                                                                    
in administrative offices. She  shared that inmate furniture                                                                    
was a durable  and specialized line of  furniture that would                                                                    
not be found in state surplus.                                                                                                  
                                                                                                                                
Co-Chair  Hoffman noted  that there  was no  funding request                                                                    
that spoke to the issues  faced by the correctional facility                                                                    
in the Arctic-Yukon-Kuskokwim Region  (AYK). He assumed that                                                                    
the  space  issues  that  burdened  the  facility  had  been                                                                    
corrected.                                                                                                                      
                                                                                                                                
Commissioner Schmidt  replied that  the space issues  at the                                                                    
facility had  not been solved.  He said that money  had been                                                                    
moved  in the  budget from  maintenance projects  to try  to                                                                    
keep  up with  the AYK  gym renovations,  and that  the work                                                                    
would not require new construction.                                                                                             
                                                                                                                                
10:24:40 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman stated  that the  gym was  being used  for                                                                    
beds for inmates and people  were rotating three times a day                                                                    
for meals. He wondered what  the department's plans were for                                                                    
dealing with  the problem of  overcrowding at  the facility.                                                                    
He  asked if  the department  was waiting  for a  lawsuit to                                                                    
motivate improvements.                                                                                                          
                                                                                                                                
Commissioner Schmidt  responded that the department  did not                                                                    
hope for  a lawsuit, although sometimes  lawsuits did occur.                                                                    
He  hoped  that  the  department  could  get  ahead  of  the                                                                    
problem. He recognized that the  department had been focused                                                                    
on GCCC, which had detracted  from attention to the facility                                                                    
in Bethel.                                                                                                                      
                                                                                                                                
10:25:37 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  asked what the department's  timeframe was                                                                    
for addressing the problem. He  reminded the commissioner of                                                                    
their joint  tour of the  facility, which had  revealed that                                                                    
the  facility was  overcrowded and  that working  conditions                                                                    
were deplorable.                                                                                                                
                                                                                                                                
Co-Chair  Hoffman noted  that the  facility had  been number                                                                    
one on  the list of  facilities to  be addressed for  over a                                                                    
decade.  He  felt  that  the  department  was  ignoring  the                                                                    
problem.                                                                                                                        
                                                                                                                                
Commissioner Schmidt  replied that  the department  had been                                                                    
working on the issue. He said  he could not to promise a new                                                                    
building for Bethel  would be a capital request  in FY14. He                                                                    
relayed that the department felt  the most pressure from the                                                                    
Bethel facility,  and when the next  expansion was discussed                                                                    
the Bethel facility would be at the top of the list.                                                                            
                                                                                                                                
Co-Chair Hoffman  asked if the  department had any  plans to                                                                    
address the critical needs of  any facilities outside of the                                                                    
Railbelt.                                                                                                                       
                                                                                                                                
Commissioner Schmidt replied  that he could not  commit to a                                                                    
date or timeframe for the improvements.                                                                                         
                                                                                                                                
10:27:35 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  probed whether  the problem in  Bethel was                                                                    
getting better  or worse. Commissioner Schmidt  replied that                                                                    
it was certainly not getting any better.                                                                                        
                                                                                                                                
Senator Thomas was curious about  the $20,000,000 total that                                                                    
would fund the furnishing of GCCC.                                                                                              
                                                                                                                                
10:29:26 AM                                                                                                                   
                                                                                                                                
Ms. Houston  said that the  plumbing and inmates  bunks were                                                                    
already  in  place.  She  explained  that  the  $20  million                                                                    
allocation  would be  used  for:  copiers, office  supplies,                                                                    
information  technology between  computer to  work stations,                                                                    
software  licenses,  printers,  servers, two-way  hand  held                                                                    
radios, base  stations, dispatch consoles,  antenna systems,                                                                    
hand  guns,  shot  guns,   pepper  balls,  ammunition,  riot                                                                    
equipment,  body armor,  tasers, training  protection suits,                                                                    
restraints,  busses vans,  groceries,  serving and  cleaning                                                                    
supplies  for  inmates,  inmate clothing,  bedding,  laundry                                                                    
equipment,  janitorial   equipment,  information  technology                                                                    
systems  required  for  inmate education,  books,  supplies,                                                                    
vocational equipment and  supplies, dental supplies, medical                                                                    
supplies,  mental  health  materials,  facility  maintenance                                                                    
equipment, snow removal and shop equipment and supplies.                                                                        
                                                                                                                                
10:31:02 AM                                                                                                                   
                                                                                                                                
Senator McGuire stated that  another emergency expansion was                                                                    
needed at  Bethel. She assumed  that another year  would not                                                                    
go by without any action  taken by the department. She noted                                                                    
that   litigation  against   the  state   was  a   realistic                                                                    
possibility  given the  circumstances  at  the facility.  He                                                                    
thought  that  the  same  energy  that  the  department  was                                                                    
putting into GCCC could be extended to the Bethel facility.                                                                     
                                                                                                                                
Commissioner  Schmidt   replied  that  the   population  had                                                                    
stabilized  in  Bethel,  but  further  discussion  would  be                                                                    
needed if the numbers continued to increase.                                                                                    
                                                                                                                                
Senator Olson expressed a concern  that there was no request                                                                    
for the  jail in Kotzebue.  He noted that OMB  had testified                                                                    
to  spending over  $100 thousand  in prisoner  transport. He                                                                    
requested an update on the conditions in Kotzebue.                                                                              
                                                                                                                                
Commissioner Schmidt  replied that  the department  had been                                                                    
working  with the  community of  Kotzebue on  the issue.  He                                                                    
shared  that a  brief closure  of the  jail in  Kotzebue had                                                                    
cost    the   department    $106   thousand    in   prisoner                                                                    
transportation expenses.  He said  that the department would                                                                    
continue to work with Kotzebue on the problem.                                                                                  
                                                                                                                                
10:34:16 AM                                                                                                                   
                                                                                                                                
Senator Olson asked if he  could tell the people of Kotzebue                                                                    
that  improvements   were  imminent.   Commissioner  Schmidt                                                                    
replied that "imminent"  was not the term he  would use, but                                                                    
that the solution was not that far away.                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 104(RLS)                                                                                                
                                                                                                                                
     "An  Act renaming  the  Alaska performance  scholarship                                                                    
     and  relating  to  the   scholarship  and  tax  credits                                                                    
     applicable   to  contributions   to  the   scholarship;                                                                    
     relating to AlaskAdvantage  education grant funding and                                                                    
     to    Alaska     performance    scholarship    funding;                                                                    
     establishing an  account and  fund for  those purposes;                                                                    
     making  conforming  amendments;  and providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
CSHB 104(RLS) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 307(FIN)                                                                                                
                                                                                                                                
     "An  Act  making supplemental  appropriations,  capital                                                                    
     appropriations,  and   other  appropriations;  amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
CSHB 307(FIN) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
10:35:03 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:35 AM.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 65 Senate Finance.pdf SFIN 3/5/2012 9:00:00 AM
HB 65