Legislature(2013 - 2014)SENATE FINANCE 532

04/01/2013 01:30 PM Senate FINANCE


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01:35:49 PM Start
01:37:12 PM SB18
05:59:31 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 18 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
Statewide Public Testimony
<Public Testimony maybe limited to no more than
2 minutes>
1:30 pm Bethel, Nome, Kotzebue, Unalaska
2:00 pm Barrow, Tok, Delta Junction
2:30 pm Ketchikan, Wrangell, Petersburg
3:00 pm Sitka, Cordova, Valdez
3:30 pm Juneau
4:00 pm Kenai, Kodiak, Dillingham
4:30-5:00 pm Statewide Teleconference - Offnet
Sites
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 1, 2013                                                                                            
                         1:35 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:35:49 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer  called the Senate Finance  Committee meeting                                                                    
to order at 1:35 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Cathy Munoz; Jacob  Merculief, Mayor, City of                                                                    
St.  Paul;  Jeff   Weltzin,  Special  Projects  Coordinator,                                                                    
Tanana  Chiefs  Conference,  Kotzebue; Pat  Branson,  Mayor,                                                                    
City  of Kodiak,  Kodiak;  Chris  Rose, Executive  Director,                                                                    
Renewable  Energy  Alaska  Project  (REAP),  Juneau;  Robert                                                                    
Barr,  Director,  Juneau   Public  Library,  Juneau;  Kathie                                                                    
Wasserman,  Executive  Director,  Alaska  Municipal  League,                                                                    
Juneau;  Marie Darlin,  Member,  Alaska Historical  Society,                                                                    
Juneau;  Paul   Brown,  Alaska  Leader   Series,  Anchorage;                                                                    
Merrill Sanford,  Mayor, City and  Borough of  Juneau; James                                                                    
Marcus,   District  Manager,   Southeast   Soil  and   Water                                                                    
Conservation  District, Juneau;  Charles Clement,  Southeast                                                                    
Alaska  Regional Health  Consortium (SEARHC),  Juneau; Casey                                                                    
Anderson, Membership  Assistant, Alaska  Mobility Coalition,                                                                    
Juneau;   Mary  Hakala,   Coordinator,  Science   Technology                                                                    
Engineering Math  (STEM) Alaska, Juneau; Paul  Fuhs, Member,                                                                    
Fairview  Business  Association,  Anchorage;  Tammy  Hansen,                                                                    
Vice  President,  Kodiak  Area Native  Association,  Kodiak;                                                                    
Kathy  Niessbaum,  Director, Behavioral  Health  Department,                                                                    
Kodiak Area Native Association, Kodiak.                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
Mike  Hoffman,  Executive  Vice  President,  Association  of                                                                    
Village   Council   Presidents,   Bethel;   Greg   Roczicka,                                                                    
Director,  Natural  Resource Program,  Orutsararmiut  Native                                                                    
Council,   Bethel;  Shirley   Marquardt,   Mayor,  City   of                                                                    
Unalaska,   Unalaska;   Elizabeth   Moore,   Community   and                                                                    
Government  Affairs  Manager,   NANA  Regional  Corporation,                                                                    
Kotzebue;  Ivan  M.  Ivan,   Self,  Akiak;  Brian  Lefferts,                                                                    
Director,  Environmental  Health   and  Engineering,  Yukon-                                                                    
Kuskokwim Health Corporation,  Bethel; Kathy Leary, Training                                                                    
Manager for  Community and Workforce  Development, Ilisagvik                                                                    
College,  Barrow;   Ben  Glover,   Dean  of   Community  and                                                                    
Workforce  Development,   Ilisagvik  College,   Barrow;  Rob                                                                    
Elkins,  Deputy  Director  of  Administration,  North  Slope                                                                    
Borough,   Barrow;   Angie  David,   Tribal   Administrator,                                                                    
Mentasta  Traditional Council,  Mentasta; Mike  Tvenge, City                                                                    
Administrator,   Delta  Junction;   Bryce  Wrigley,   Alaska                                                                    
Association of Conservation  Districts, Delta Junction; Dawn                                                                    
Grossman,  Mayor, City  of  Delta  Junction; Dennis  Watson,                                                                    
General  Manager, Inter-Island  Ferry Authority,  Ketchikan;                                                                    
Timothy Rooney, City Manager, City  and Borough of Wrangell,                                                                    
Wrangell; Jim  Agner, Chief  of Police,  Petersburg Borough,                                                                    
Petersburg;  Sue  Paulsen,  Self, Petersburg;  Sally  Dwyer,                                                                    
Public  Safety Board,  Petersburg; Elizabeth  Union-Jakubek,                                                                    
Capital   Campaign   Coordinator,    First   City   Players,                                                                    
Ketchikan;   Rebecca  Valentine,   Self,  Ketchikan;   Kevin                                                                    
Gadsey,  Independent   Living  Advocate,   Southeast  Alaska                                                                    
Independent Living, Ketchikan; Lew  Williams, Mayor, City of                                                                    
Ketchikan; Peter  Rice, Medical Director,  Ketchikan Medical                                                                    
Center,   Ketchikan;  Penny   Pedersen,  Ketchikan   Medical                                                                    
Center,  Ketchikan; Richard  Hauver,  Self, Ketchikan;  Mike                                                                    
Houts,   Finance   Director,  Ketchikan   Gateway   Borough,                                                                    
Ketchikan; Jim Pomplun, Member,  State Parks Advisory Board,                                                                    
Ketchikan;  Bonnie   Newman,  Housing   Director,  Ketchikan                                                                    
Indian  Housing Authority,  Ketchikan; Bob  Berto, Chairman,                                                                    
Ketchikan Medical Center  Governing Board, Ketchikan; Bryana                                                                    
Homan,  President, Ketchikan  Health Occupation  Students of                                                                    
America, Ketchikan;  Kyan Reeve, Transit  Manager, Ketchikan                                                                    
Gateway Borough,  Ketchikan; Mim McConnell, Mayor,  City and                                                                    
Borough of  Sitka; Kristin  Carpenter, Member,  Cordova City                                                                    
Council,  Cordova; Joel  Azure,  Executive Director,  Native                                                                    
Village  of  Eyak,  Cordova;  Jim   Kacsh,  Mayor,  City  of                                                                    
Cordova;  Bret  Bradford,   Member,  Cordova  City  Council,                                                                    
Cordova; Barclay Jones Kopchak,  Stage of the Tide, Cordova;                                                                    
Katrina  Hoffman, President  and CEO,  Prince William  Sound                                                                    
Science  Center, Cordova;  RJ  Kopchak,  Self, Cordova;  Tim                                                                    
Joyce, Council  Member, Cordova City Council,  Cordova; Erin                                                                    
Cooper,  Cordova Arts,  Cordova; Dave  Cobb, Mayor,  City of                                                                    
Valdez; Charles Bud Cassidy,  Kodiak Island Borough, Kodiak;                                                                    
Andrew  Schroeder,  Island  Trails Network,  Kodiak;  Jerome                                                                    
Selby,  Kodiak  Island  Borough, Kodiak;  Jody  Seitz,  City                                                                    
Planner,  City   of  Dillingham;  Carolyn  Smith,   City  of                                                                    
Aleknagik;  Heidi Chay,  District  Manager,  Kenai Soil  and                                                                    
Water  Conservation District,  Kenai; Steve  Albers, Farmer,                                                                    
Kenai; Michelle  Martin, Kenai  Soil and  Water Conservation                                                                    
District,   Kenai;  Paul   Shadura,   Board  Member,   Kenai                                                                    
Peninsula  Fisherman's  Association,  Kenai;  Mayor  O'Hara,                                                                    
Bristol   Bay;   Carl   Marrs,  CEO,   Old   Harbor   Native                                                                    
Corporation,  Old Harbor;  Mary Matthias,  Mayor, Nightmute;                                                                    
Clarence  Baysinger,   Self,  Nenana;  Bruce   Megarr,  City                                                                    
Manager, Pilot Point; Peter  Stokes, Petroleum Engineer, UAF                                                                    
College of  Engineering and  Mines Advisory  and Development                                                                    
Council;  Evelyn Thomas,  Tribal Council  President, Crooked                                                                    
Creek  Traditional  Council,  Crooked  Creek;  Eugene  Paul,                                                                    
Tribal  Chief,  Holy  Cross; Ronald  Helgesen,  CEO,  Alaska                                                                    
Native  Tribal Health  Consortium (ANTHC),  Anchorage; James                                                                    
Beylund,  City  of  Selawik; Dan  Clarion,  Self,  Ouzinkie;                                                                    
Larson  Hunter, City  Manager, Scammon  Bay; Alexie  Temple,                                                                    
Mayor, Napakiak;  Steve Andresen, Mayor, City  of Port Lion;                                                                    
Tim  Dillon,  City  Manager, Seldovia;  Cindy  Arnold,  City                                                                    
Administrator,  Nuiqusut; Martin  Moore  Sr., City  Manager,                                                                    
City  of Emmonak;  Wilbur Hootch,  Mayor,  City of  Emmonak;                                                                    
Lorry  Brooks,  Self,  Nenana; Esther  Hugo,  City  Council,                                                                    
Anaktuvuk Pass;  Ruth Fitka, Mayor, City  of Marshall; Chris                                                                    
Kalerak,  City of  Elim;  Diane  Woodruff, Finance  Manager,                                                                    
City of  Akutan; Elsie Vent,  City Council,  Huslia; Carolyn                                                                    
Oquilluk,  City  of  Teller; Cecil  Gates,  Farmer,  Nenana;                                                                    
Stanley Tocktoo, Member, City  Council of Shishmaref; Rhonda                                                                    
Pitka, Chief, Beaver Village Council, Beaver.                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 18     BUDGET: CAPITAL                                                                                                       
                                                                                                                                
          SB 18 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 18                                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
BETHEL, NOME, KOTZEBUE, UNALASKA                                                                                              
                                                                                                                                
1:37:12 PM                                                                                                                    
                                                                                                                                
MIKE  HOFFMAN,  EXECUTIVE  VICE  PRESIDENT,  ASSOCIATION  OF                                                                    
VILLAGE  COUNCIL  PRESIDENTS, BETHEL  (via  teleconference),                                                                    
spoke  in  support of  funding  the  Yukon Kuskoquim  Energy                                                                    
Freight Corridor  and the Western Alaska  Emergency Response                                                                    
Center.  The Yukon  Kuskoquim  Energy  Freight Corridor  was                                                                    
tied to  the Roads  to Resources  project, and  would extend                                                                    
the  Elliot Highway  to Tanana.  He  felt that  the 35  mile                                                                    
corridor  connecting  the  Kuskoquim   and  Yukon  at  their                                                                    
closest points, was  essential to the economy  of Bethel. He                                                                    
stressed  that  the  corridor would  make  his  region  more                                                                    
connected  to Alaska,  and would  help improve  business. He                                                                    
explained that  the project had  received $3 million  in the                                                                    
year prior, and he was  requesting $13.2 million to complete                                                                    
the full  study, design, and environmental  impact statement                                                                    
(EIS) of the project. He  also voiced support of funding for                                                                    
the  Western Alaska  Emergency  Response  Center. He  shared                                                                    
that he had recently learned  that Alaska was unprepared for                                                                    
any environmental disasters along  the coastline and rivers.                                                                    
He shared that the  Western Alaska Emergency Response Center                                                                    
would  be   the  northern  most  response   center  for  any                                                                    
environmental  disaster  in  Alaska.   He  stated  that  the                                                                    
request was for $4 million  to retrofit a structurally sound                                                                    
building along the Kuskoquim River in Bethel.                                                                                   
                                                                                                                                
Vice-Chair Fairclough  queried the  total cost of  the Yukon                                                                    
Kuskoquim Energy Freight Corridor.  Mr. Hoffman replied that                                                                    
the total cost would be approximately $17.2 million.                                                                            
                                                                                                                                
Vice-Chair Fairclough  restated her question, and  asked for                                                                    
the total cost of the project,  not just the cost of design.                                                                    
Mr. Hoffman  replied that  the total  cost was  estimated at                                                                    
$120 million.                                                                                                                   
                                                                                                                                
1:41:28 PM                                                                                                                    
                                                                                                                                
GREG   ROCZICKA,   DIRECTOR,   NATURAL   RESOURCE   PROGRAM,                                                                    
ORUTSARARMIUT NATIVE  COUNCIL, BETHEL  (via teleconference),                                                                    
spoke in support of funding  $1.3 million for a hybrid wind-                                                                    
solar  project  as  requested  by  the  Kuskoquim  Watershed                                                                    
Council for the  Bethel Senior Center. He  stressed that the                                                                    
center served  Bethel residents  and elders  from throughout                                                                    
the 40 villages along the  Kuskoquim Delta. He remarked that                                                                    
the center  had already undergone many  upgrades like energy                                                                    
efficiency. He  stated that the  engineering firm  would use                                                                    
existing technology,  so the upgrade  would not  qualify for                                                                    
Alaska Energy  Authority (AEA) grants.  He pointed  out that                                                                    
the  project would  yield approximately  30 percent  savings                                                                    
per  year. He  furthered  that the  project  had a  training                                                                    
component, so  15 to 20  people from the community  could be                                                                    
hired to maintain  the new energy system.  He explained that                                                                    
the design could be built to  scale, so it would be possible                                                                    
to provide  power to  the entire  community. He  shared that                                                                    
the  excess power  would not  be  sold to  the utility,  but                                                                    
directed into the heating component.                                                                                            
                                                                                                                                
1:44:13 PM                                                                                                                    
                                                                                                                                
SHIRLEY MARQUARDT,  MAYOR, CITY  OF UNALASKA,  UNALASKA (via                                                                    
teleconference), testified  in support  of $5 million  for a                                                                    
new fourth engine in a  powerhouse. She stated that Unalaska                                                                    
provided  power for  a  dynamic  fishing and  transportation                                                                    
industry.  She announced  that Unalaska  had  a $56  million                                                                    
power plant for a community  of 4600 people. She shared that                                                                    
the City of  Unalaska had provided all of the  money for the                                                                    
project, except for the requested  $5 million. She felt that                                                                    
the  request would  provide efficient  power production  for                                                                    
the     community,     infrastructure,    fisheries,     and                                                                    
transportation. She thanked the  committee for prior capital                                                                    
request approval for  Unalaska's major infrastructure needs.                                                                    
She also urged  support of $60 million  for revenue sharing,                                                                    
and suggested consideration of  the $25 million supplemental                                                                    
request.  She pointed  out that  the  revenue sharing  funds                                                                    
would help  to ease the  pressure of  the high cost  of fuel                                                                    
for the communities.                                                                                                            
                                                                                                                                
1:47:20 PM                                                                                                                    
                                                                                                                                
ELIZABETH MOORE,  COMMUNITY AND GOVERNMENT  AFFAIRS MANAGER,                                                                    
NANA  REGIONAL CORPORATION,  KOTZEBUE (via  teleconference),                                                                    
urged  support  of the  $10  million  to complete  the  Cape                                                                    
Alaskan  Regional Port  Road; $9.6  million  for a  Kotzebue                                                                    
Clinic;  $5.3 million  to complete  the Kivalina  Evacuation                                                                    
and Access  Road; $2.5 million  for the Cosmos  Hills Hydro-                                                                    
Electric  Project;  and $12  million  for  the Star  of  the                                                                    
Northwest Residential  Dorm. She  also urged support  of the                                                                    
Roads  to Resources  funding for  the Alaska  Industrial and                                                                    
Export  Authority (AIDEA).  She stated  that the  mission of                                                                    
NANA Regional  was to  improve the quality  of life  for its                                                                    
people  by   maximizing  economic  growth;   protecting  and                                                                    
enhancing its  land; and promoting healthy  communities with                                                                    
decisions  inspired  its  values. She  announced  that  Nana                                                                    
Regional  had  more than  13,200  shareholders  who were  of                                                                    
Inupiat descent.  She stated that  NANA had worked  to build                                                                    
strong,  stable company  through investment  in the  Red Dog                                                                    
Mine  and the  NANA Development  Corporation to  achieve its                                                                    
mission   and  provide   direct   benefits   back  to   NANA                                                                    
shareholders.  She  stressed  the  importance  of  a  strong                                                                    
Alaska economy and  a strong local economy.  She shared that                                                                    
NANA Village Economic Development  Committee traveled to the                                                                    
eleven villages in  the NANA region to  evaluate the largest                                                                    
barriers  to  economic  growth.   The  committee  found  the                                                                    
largest   barriers  to   be  energy   costs   and  lack   of                                                                    
infrastructure.                                                                                                                 
                                                                                                                                
Senator Bishop  wondered if  the $2.5  million for  a hydro-                                                                    
electric project  was for  a study.  Ms. Moore  replied that                                                                    
the request was for  the Alaska Village Electric Cooperative                                                                    
for the  study and  permitting for  the Cosmos  Hills Hydro-                                                                    
Electric Project.                                                                                                               
                                                                                                                                
Vice-Chair  Fairclough   asked  for   a  restating   of  the                                                                    
requests. Ms. Moore responded, and  urged support of the $10                                                                    
million  to complete  the Cape  Alaskan Regional  Port Road;                                                                    
$9.6  million  for  a  Kotzebue   Clinic;  $5.3  million  to                                                                    
complete  the  Kivalina  Evacuation and  Access  Road;  $2.5                                                                    
million  for the  Cosmos Hills  Hydro-Electric Project;  and                                                                    
$12 million for the Star  of the Northwest Residential Dorm.                                                                    
She also  urged support  of the  Roads to  Resources funding                                                                    
for the Alaska Industrial and Export Authority (AIDEA).                                                                         
                                                                                                                                
1:51:48 PM                                                                                                                    
                                                                                                                                
IVAN M.  IVAN, SELF,  AKIAK (via  teleconference), testified                                                                    
in  favor  of  the  $60  million  for  municipality  revenue                                                                    
sharing.  He  stated  that  the community  of  Akiak  had  a                                                                    
population of 267 people. He  announced that there were high                                                                    
fuel costs  in Akiak, and  felt that the request  would ease                                                                    
the pressure.  He shared that fuel  was nearly $6 or  $7 per                                                                    
gallon,  so  the  revenue  sharing   would  help  the  small                                                                    
communities.  He  thanked  the committee  for  allowing  the                                                                    
small communities to participate in the public process.                                                                         
                                                                                                                                
1:54:36 PM                                                                                                                    
                                                                                                                                
BRIAN   LEFFERTS,   DIRECTOR,   ENVIRONMENTAL   HEALTH   AND                                                                    
ENGINEERING,  YUKON-KUSKOKWIM   HEALTH  CORPORATION,  BETHEL                                                                    
(via teleconference), urged support  of the addition of $2.5                                                                    
million  for  an Energy  Efficiency  Audit  Program; and  $2                                                                    
million   for  Water   Treatment  Plant   Energy  Efficiency                                                                    
Retrofitting. He  shared that running  water was one  of the                                                                    
most important ways to improve  a family's health status. He                                                                    
remarked  that  running  water was  extremely  expensive  in                                                                    
rural Alaska, because of the  cost of energy. He shared that                                                                    
two communities received retrofitting  in the prior year, so                                                                    
the  communities were  able to  see  significant savings  on                                                                    
energy expenses.                                                                                                                
                                                                                                                                
Vice-Chair   Fairclough  wondered   if  there   was  another                                                                    
testifier   that  wanted   to  speak   from  Kotzebue.   The                                                                    
Legislative  Information  Office  (LIO)  operator  indicated                                                                    
that no one else from Kotzebue had signed on to testify.                                                                        
                                                                                                                                
1:57:12 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:02:42 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
BARROW, TOK, DELTA JUNCTION                                                                                                   
                                                                                                                                
2:02:53 PM                                                                                                                    
                                                                                                                                
KATHY LEARY,  TRAINING MANAGER  FOR COMMUNITY  AND WORKFORCE                                                                    
DEVELOPMENT,     ILISAGVIK      COLLEGE,     BARROW     (via                                                                    
teleconference),   spoke  in   support   of  the   workforce                                                                    
development programs at  Ilisagvik College. She specifically                                                                    
urged  support  of  $85,000  equipment  funding  request  at                                                                    
Ilisagvik  College.  She  announced  that  there  were  some                                                                    
recent  regulatory   changes  that  had  resulted   in  more                                                                    
industry certifications. She stated  that the request was to                                                                    
update the industrial  safety training equipment. Currently,                                                                    
students  needed  to travel  to  Anchorage  to receive  pre-                                                                    
training, before  they could train  on the specific  kind of                                                                    
equipment. She stressed that  Ilisagvik College was training                                                                    
emerging,  displaced,  and underemployed  workers;  veterans                                                                    
who  were  reentering  the workforce;  and  the  chronically                                                                    
unemployed. She  explained that  the workforce  training was                                                                    
directed towards local hiring.                                                                                                  
                                                                                                                                
2:05:47 PM                                                                                                                    
                                                                                                                                
BEN  GLOVER, DEAN  OF COMMUNITY  AND WORKFORCE  DEVELOPMENT,                                                                    
ILISAGVIK    COLLEGE,     BARROW    (via    teleconference),                                                                    
specifically urged support of  $85,000 for equipment funding                                                                    
at  Ilisagvik  College. He  shared  that  the requests  were                                                                    
directed from  current employers for  work that was  done in                                                                    
Anchorage. He pointed out that  many students could not miss                                                                    
work to receive training in  Anchorage. He shared that there                                                                    
were  higher  completion  rates  with  onsite  training.  He                                                                    
announced  that  many people  did  not  have access  to  the                                                                    
training, because  it was  particularly expensive  to travel                                                                    
from  the North  Slope. He  shared that  the current  year's                                                                    
enrollment was  1780 students,  of which  20 percent  was in                                                                    
Barrow.  He  shared  that   specifically  urged  support  of                                                                    
$85,000 equipment  funding request at Ilisagvik  College had                                                                    
a workforce  development advisory  board, with  members from                                                                    
industry,   employers,  and   village  corporations,   which                                                                    
determined that the request was their top priority.                                                                             
                                                                                                                                
2:07:43 PM                                                                                                                    
                                                                                                                                
ROB ELKINS,  DEPUTY DIRECTOR OF ADMINISTRATION,  NORTH SLOPE                                                                    
BOROUGH, BARROW  (via teleconference), testified  in support                                                                    
of  funding  for $80  million  for  a comprehensive  project                                                                    
intended  to  address  erosion and  subsequent  flooding  in                                                                    
Barrow,  Wainright, and  Point Hope.  He shared  that Barrow                                                                    
had  been  working  for  twenty  years  to  address  erosion                                                                    
through    beach    nourishment    programs,    sandbagging,                                                                    
development of  earth berms, and  some revamping.  He stated                                                                    
that the  efforts were very  expensive, and  yielded limited                                                                    
effectiveness.   The  risk   was  increasing   dramatically,                                                                    
because of  the formation of  sea ice  late in the  year and                                                                    
loss of  sea ice early in  the year. He shared  that the sea                                                                    
ice acted as  a protective structure, to  dissipate the wave                                                                    
energy to the ice rather  than the shoreline. He pointed out                                                                    
that  moderate storm  events  were  currently causing  great                                                                    
destruction,  because  of  the  growing ice  free  seas.  He                                                                    
shared that  a moderate  storm event  occurred in  fall 2013                                                                    
lead  to the  destruction  of  approximately one  continuous                                                                    
mile of  road in Barrow.  He stressed  that a great  deal of                                                                    
Barrow's critical infrastructure  like water, sewer systems,                                                                    
power lines, and roads were threatening by storm events.                                                                        
                                                                                                                                
2:10:05 PM                                                                                                                    
                                                                                                                                
ANGIE  DAVID,  TRIBAL  ADMINISTRATOR,  MENTASTA  TRADITIONAL                                                                    
COUNCIL,   MENTASTA  (via   teleconference),  testified   in                                                                    
support  of  $300,000  for Mentasta  capital  projects.  She                                                                    
stated that the  money would be used to build  a new clinic,                                                                    
and would  match $$600,000  funds for  a total  of $900,000.                                                                    
She shared  that the project  received funding in  the prior                                                                    
year,  but the  matching funds  were not  available, so  the                                                                    
grant was lost.                                                                                                                 
                                                                                                                                
2:11:29 PM                                                                                                                    
                                                                                                                                
MIKE  TVENGE,   CITY  ADMINISTRATOR,  DELTA   JUNCTION  (via                                                                    
teleconference), spoke in  support of supplemental community                                                                    
revenue sharing. He  urged the committee to  add $25 million                                                                    
to  the  revenue  sharing. He  shared  that  Delta  Junction                                                                    
relied  on revenue  sharing,  and  the supplemental  funding                                                                    
allowed  Delta   Junction  to   provide  support   to  local                                                                    
nonprofits   such  as   the  2010   lower  readers   of  the                                                                    
Imagination  Library. He  remarked  that  the funding  could                                                                    
defer  or  supplement  fuel  costs to  plow  snow  and  heat                                                                    
buildings.  The  funding could  be  used  to fund  the  lawn                                                                    
maintenance  for the  community park.  He stressed  that the                                                                    
revenue  sharing helped  Delta  Junction  provide the  added                                                                    
benefits within  the community. He remarked  that the amount                                                                    
of revenue  could go a long  way at the local  level to help                                                                    
all Alaska communities.                                                                                                         
                                                                                                                                
2:13:02 PM                                                                                                                    
                                                                                                                                
BRYCE   WRIGLEY,   ALASKA    ASSOCIATION   OF   CONSERVATION                                                                    
DISTRICTS,  DELTA JUNCTION  (via teleconference),  testified                                                                    
in   support   of   funding  for   Alaska   Association   of                                                                    
Conservation  Districts  requests.   He  remarked  that  the                                                                    
districts in  the state  could provide  technical assistance                                                                    
for   mapping  wetlands;   vegetation  soil   stabilization;                                                                    
fertilizer   and   seeding   recommendations;   conservation                                                                    
planning;  geo-spatial  planning;  water  quality  sampling;                                                                    
storm  water prevention  planning  and  drainage; and  trail                                                                    
work.                                                                                                                           
                                                                                                                                
2:14:16 PM                                                                                                                    
                                                                                                                                
DAWN   GROSSMAN,  MAYOR,   CITY  OF   DELTA  JUNCTION   (via                                                                    
teleconference), echoed Mr.  Tvenge's comments. She stressed                                                                    
that the community of Delta  Junction work hard to take care                                                                    
of each other,  and provided many benefits in  order to make                                                                    
it a much better place to live.                                                                                                 
                                                                                                                                
2:15:22 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:19:02 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:19:47 PM                                                                                                                    
                                                                                                                                
JACOB  MERCULIEF,  MAYOR, CITY  OF  ST.  PAUL, testified  in                                                                    
support of  capital projects  for St.  Paul. He  stated that                                                                    
space  for vital  equipment was  limited.  He remarked  that                                                                    
emergency response vehicles had  sensitive components, so it                                                                    
was becoming  necessary to store those  vehicles indoors. He                                                                    
stated that there  was storage three miles out  of town, but                                                                    
the weather  in winter  months made  it difficult  to access                                                                    
the equipment in a timely  manner. He also urged support for                                                                    
additional  $25 million  for community  revenue sharing.  He                                                                    
also voiced support for $40,000  for a new fire alarm system                                                                    
in the Pribilof School District.                                                                                                
                                                                                                                                
Senator Bishop queried  the per gallon price  of heating oil                                                                    
in  St.  Paul. Mr.  Merculief  responded  that the  cost  of                                                                    
heating oil in St. Paul was  slightly over $5 per gallon. He                                                                    
furthered that  North Pacific Fuel  delivered the  fuel, and                                                                    
the  city stored  the fuel.  The  city did  not get  charged                                                                    
until the fuel  was delivered to the  community. He remarked                                                                    
that  it was  sometimes  difficult to  deliver  fuel to  the                                                                    
island, because of the limited number of fuel barges.                                                                           
                                                                                                                                
2:23:06 PM                                                                                                                    
                                                                                                                                
JEFF  WELTZIN, SPECIAL  PROJECTS COORDINATOR,  TANANA CHIEFS                                                                    
CONFERENCE,   KOTZEBUE,  stated   that  the   Tanana  Chiefs                                                                    
Conference  (TCC)  had  worked  to  consolidate  the  health                                                                    
clinics  and multipurpose  buildings. He  stated that  there                                                                    
was  work  to  leverage   State  funding  with  federal  and                                                                    
foundation  money.  He  stated  that TCC  had  requested  27                                                                    
projects for 27 communities, and  most of the projects could                                                                    
be completed  within the  year. He  reiterated that  most of                                                                    
the projects could be leveraged  with federal and foundation                                                                    
money at a one percent to six percent rate of return.                                                                           
                                                                                                                                
Co-Chair  Meyer  referenced  two  Tanana  Chiefs  Conference                                                                    
capital  request   memos  (copies  on  file).   Mr.  Weltzin                                                                    
affirmed and discussed the leveraging of funds.                                                                                 
                                                                                                                                
2:25:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:31:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
KETCHIKAN, WRANGELL, PETERSBURG                                                                                               
                                                                                                                                
2:32:02 PM                                                                                                                    
                                                                                                                                
DENNIS   WATSON,   GENERAL   MANAGER,   INTER-ISLAND   FERRY                                                                    
AUTHORITY,  KETCHIKAN  (via  teleconference),  testified  in                                                                    
support of  funding request for  fuel assistance.  He stated                                                                    
that the  Inter-Island Ferry Authority  operated a  200 foot                                                                    
vessel  between Hollis  and  Ketchikan;  and carried  50,000                                                                    
people  and 12,000  vehicles per  year. He  stated that  the                                                                    
Inter-Island Ferry Authority had a  $4 million budget and 25                                                                    
percent  was spent  on  fuel.  He pointed  out  that only  5                                                                    
percent of the  budget was spent on fuel,  five years prior.                                                                    
He added that he  was the mayor of the City  of Craig, so he                                                                    
also urged support of revenue sharing appropriation.                                                                            
                                                                                                                                
2:33:53 PM                                                                                                                    
                                                                                                                                
TIMOTHY ROONEY, CITY MANAGER, CITY  AND BOROUGH OF WRANGELL,                                                                    
WRANGELL  (via   teleconference),  testified  in   favor  of                                                                    
funding the  requests directed specifically at  the City and                                                                    
Borough  of  Wrangell,  including the  supplemental  revenue                                                                    
sharing.  He stated  that  Wrangell  received slightly  less                                                                    
than  $250,000  in  supplemental revenue  sharing,  and  was                                                                    
utilized to offset revenue that  was no longer received as a                                                                    
result  of the  senior  citizen property  tax exemption.  He                                                                    
stressed that Wrangell was an  aging community, and the lack                                                                    
of  revenue decreased  each year.  He pointed  out that  the                                                                    
revenue  sharing funds  provided  match  funding for  grants                                                                    
that were received from the State or federal government.                                                                        
                                                                                                                                
2:35:14 PM                                                                                                                    
                                                                                                                                
JIM AGNER,  CHIEF OF POLICE, PETERSBURG  BOROUGH, PETERSBURG                                                                    
(via  teleconference), testified  in favor  funding for  the                                                                    
Petersburg  Police   Station.  He   felt  that   the  police                                                                    
department's building  was the worst public  safety facility                                                                    
in Alaska, and warned that  it was possibly the worst public                                                                    
safety facility in the nation.  He described the dilapidated                                                                    
state  of the  current building.  He stated  that the  sewer                                                                    
backed up,  and raw sewage  flowed through the  floors jail.                                                                    
He  explained that  the building  was originally  a concrete                                                                    
slab that  was poured as  a shed in  the 1960s. In  1964, it                                                                    
was  made into  the police  department, by  adding a  second                                                                    
story. It  was illegal for  the building to be  two stories,                                                                    
and immediately began to crack,  because it was built on tie                                                                    
fills from the early 1900s.                                                                                                     
                                                                                                                                
Vice-Chair Fairclough  wondered if  Mr. Agner's  request was                                                                    
included  in  the  capital  budget.  Mr.  Agner  replied  $7                                                                    
million  was  requested to  the  governor,  but it  was  not                                                                    
included in the governor's proposed budget.                                                                                     
                                                                                                                                
2:37:36 PM                                                                                                                    
                                                                                                                                
SUE   PAULSEN,   SELF,  PETERSBURG   (via   teleconference),                                                                    
testified  in  support  of funding  for  the  State  Library                                                                    
Archives Museum.  She stressed  that the new  facility would                                                                    
be  the framework  for a  more realized  library system  for                                                                    
Alaska. She  stated that the  $20 million was  necessary for                                                                    
continued  work on  the construction  of  the building,  and                                                                    
felt that  $30 million more  would be necessary  to complete                                                                    
the construction of the building.  She urged the legislature                                                                    
to fully fund the project.                                                                                                      
                                                                                                                                
2:38:55 PM                                                                                                                    
                                                                                                                                
SALLY   DWYER,   PUBLIC   SAFETY  BOARD,   PETERSBURG   (via                                                                    
teleconference),  spoke  in support  of  funding  for a  new                                                                    
police department in Petersburg.  She reiterated Mr. Agner's                                                                    
request  of the  addition of  $7  million for  a new  police                                                                    
department in  Petersburg. She explained  that the  doors do                                                                    
not close fully; the floor  was uneven; and there were large                                                                    
gaps between  the beams  and the  ceilings. She  shared that                                                                    
Senator  Lisa  Murkowski   declared  the  Petersburg  Police                                                                    
Station  as  the worst  police  station  in the  state.  She                                                                    
shared  that modifications  could not  be made  to meet  the                                                                    
Americans  with Disabilities  Act (ADA)  for over  22 years.                                                                    
She stressed  that the  building was not  safe for  both the                                                                    
clients and  the staff. She  stated that there  was property                                                                    
near the  new fire  hall that  would be  adequate for  a new                                                                    
police department.                                                                                                              
                                                                                                                                
2:41:03 PM                                                                                                                    
                                                                                                                                
ELIZABETH   UNION-JAKUBEK,  CAPITAL   CAMPAIGN  COORDINATOR,                                                                    
FIRST  CITY PLAYERS,  KETCHIKAN (via  teleconference), urged                                                                    
support of  the $1.8 million  request for a  performing arts                                                                    
center  in  Ketchikan.  She  shared  that  the  money  would                                                                    
leverage private  funding from  large foundations.  She felt                                                                    
that  the  request  was  a   key  economic  opportunity  for                                                                    
Ketchikan, in  order to build  on one of its  strategic core                                                                    
strengths. She announced  that Ketchikan was one  of the top                                                                    
100  art communities  in the  United States.  The performing                                                                    
arts center would have five  full time jobs and fifteen part                                                                    
time jobs.  She stated that  the First City Players  and the                                                                    
Ketchikan  Theatre Ballet  would be  the anchor  tenants, so                                                                    
the operating costs  would be covered. She  shared that this                                                                    
request was  the number  one priority  for the  borough, and                                                                    
number four for the community.                                                                                                  
                                                                                                                                
2:42:55 PM                                                                                                                    
                                                                                                                                
REBECCA  VALENTINE,  SELF, KETCHIKAN  (via  teleconference),                                                                    
testified  in   favor  of   funding  for   expanding  public                                                                    
transportation. She shared that she  is disabled, so she was                                                                    
not able to walk to the  nearest bus stop two miles from her                                                                    
home.  She  stated that  many  senior  citizens and  parents                                                                    
would  benefit by  having  the bus  system  extended as  far                                                                    
north and south as possible.  She urged the committee to add                                                                    
$1  million   or  $2  million   for  expanding   the  public                                                                    
transportation system in Ketchikan.                                                                                             
                                                                                                                                
2:44:15 PM                                                                                                                    
                                                                                                                                
KEVIN GADSEY, INDEPENDENT  LIVING ADVOCATE, SOUTHEAST ALASKA                                                                    
INDEPENDENT   LIVING,    KETCHIKAN   (via   teleconference),                                                                    
testified  in  support  of   funding  for  expanding  public                                                                    
transportation in Ketchikan. He  agreed with Ms. Valentine's                                                                    
testimony,  and  felt  that  public  transportation  funding                                                                    
could be increased  to $3 million, in order  to leverage $14                                                                    
million in a federal funds  matching grant. He remarked that                                                                    
Alaska was  one of three states  in the nation that  did not                                                                    
take  advantage of  federal funding,  because the  state did                                                                    
not provide the  $3 million match. He felt  that the funding                                                                    
could help coordinated transportation  issues and the public                                                                    
bus system to get better and more frequent services.                                                                            
                                                                                                                                
2:46:19 PM                                                                                                                    
                                                                                                                                
LEW    WILLIAMS,    MAYOR,    CITY   OF    KETCHIKAN    (via                                                                    
teleconference),  urged support  of $20  million funding  to                                                                    
match a  $38 million  local contribution to  reconstruct the                                                                    
Ketchikan  Medical Center.  He stated  that the  project was                                                                    
the number  one community priority for  Ketchikan. He stated                                                                    
that the Medical Center was  owned by the City of Ketchikan,                                                                    
and was  operated Peace Health,  which was a not  for profit                                                                    
voluntary private organization. He  stated that revenue from                                                                    
existing local,  municipal, health,  and hospital  sales was                                                                    
not adequate  enough to fund  the capital needs  required to                                                                    
bring  the 47-year-old  facility to  current regulatory  and                                                                    
functional standards. He stated  that the existing operating                                                                    
rooms and surgery were over  45-years-old; and the operating                                                                    
rooms  were   undersized  for   the  types   of  procedures,                                                                    
equipment,  and practice  that occur  on a  daily basis.  He                                                                    
explained   that   equipment   updates   and   minor   space                                                                    
modifications  have kept  the surgery  space functional,  it                                                                    
was not close to meeting  the industry standards. He pointed                                                                    
out   that  room   sizes   and   configurations  result   in                                                                    
inefficiencies  and  present   challenges  in  accommodating                                                                    
advances technology and equipment.                                                                                              
                                                                                                                                
2:48:48 PM                                                                                                                    
                                                                                                                                
PETER  RICE,  MEDICAL  DIRECTOR, KETCHIKAN  MEDICAL  CENTER,                                                                    
KETCHIKAN (via  teleconference), reiterated  Mayor Williams'                                                                    
comments.  He urged  support of  additional funding  for the                                                                    
Ketchikan  Medical  Center.  He  stated  that  he  sees  the                                                                    
negative effects  of the aging surgical  areas and extremely                                                                    
limited  clinical  space.  He   remarked  that  the  current                                                                    
structure lacks the space and  efficiencies that were needed                                                                    
to address  the current access  needs. He stressed  that the                                                                    
project  was critical  to the  retention and  recruitment of                                                                    
physicians; especially surgeons  and orthopedists. He stated                                                                    
that one  of his primary  roles as the medical  director was                                                                    
recruiting, and it  was extremely difficult to  recruit to a                                                                    
rural   community   medical   center   that   had   outdated                                                                    
infrastructure.   He   remarked   that  Peace   Health   had                                                                    
consistently  invested  in state  of  the  art equipment  to                                                                    
offset  the aging  infrastructure; but  there were  too many                                                                    
structural  limitations   to  continue  to   simply  upgrade                                                                    
equipment.  He feared  that the  medical  center would  lose                                                                    
critical staff  that would ultimately result  in a reduction                                                                    
of surgical services in southern Southeast Alaska.                                                                              
                                                                                                                                
2:50:49 PM                                                                                                                    
                                                                                                                                
PENNY  PEDERSEN, KETCHIKAN  MEDICAL  CENTER, KETCHIKAN  (via                                                                    
teleconference),  echoed   Mr.  Rice  and   Mayor  Williams'                                                                    
testimony. She  urged support of  funding for  the Ketchikan                                                                    
Medical Center.                                                                                                                 
                                                                                                                                
2:51:27 PM                                                                                                                    
                                                                                                                                
RICHARD HAUVER, SELF,  KETCHIKAN (via teleconference), urged                                                                    
support of  funding for the  building of a trail  from where                                                                    
the proposed bridge  never was built. He  explained that the                                                                    
trail would  stretch to the  Black Sands Beach.  He remarked                                                                    
that  some people  had boats  to visit  the State  Park, but                                                                    
most  people did  not have  boats.  He felt  that the  trail                                                                    
would benefit active  and local people seeking  to visit the                                                                    
State Park.                                                                                                                     
                                                                                                                                
2:52:21 PM                                                                                                                    
                                                                                                                                
MIKE  HOUTS, FINANCE  DIRECTOR,  KETCHIKAN GATEWAY  BOROUGH,                                                                    
KETCHIKAN (via  teleconference), urged support  of community                                                                    
revenue  sharing,  specifically  $630,000  directed  at  the                                                                    
Ketchikan  Gateway Borough.  He explained  that the  funding                                                                    
would  be used  towards increased  energy costs.  He pointed                                                                    
out  that  the federal  funding  was  not reliable,  so  the                                                                    
reliability  of the  revenue sharing  was  necessary to  the                                                                    
comfort of the community.                                                                                                       
                                                                                                                                
2:53:41 PM                                                                                                                    
                                                                                                                                
JIM POMPLUN,  MEMBER, STATE PARKS ADVISORY  BOARD, KETCHIKAN                                                                    
(via teleconference),  testified in  support of  funding the                                                                    
trail to Black  Sands Beach. He remarked that  the beach was                                                                    
currently  only accessible  by boat.  He explained  that the                                                                    
trail would provide  increased recreation opportunities, and                                                                    
the  potential to  expand tourism  and  related services  to                                                                    
that area. He  pointed out that the request  would result in                                                                    
jobs for one  year while the project  is under construction.                                                                    
He stated  that the  Advisory Board hoped  to use  the trail                                                                    
for  foot  traffic,  equestrian,  non-motorized  bikes,  and                                                                    
cross  country skiing.  He remarked  that some  local groups                                                                    
had invested in  the park. In 2010, the  Rotary Club rebuilt                                                                    
the picnic  shelter; which was  one of the first  steps into                                                                    
utilizing Black Sands Beach.                                                                                                    
                                                                                                                                
2:55:07 PM                                                                                                                    
                                                                                                                                
BONNIE  NEWMAN, HOUSING  DIRECTOR, KETCHIKAN  INDIAN HOUSING                                                                    
AUTHORITY, KETCHIKAN (via  teleconference), urged support of                                                                    
the  $6  million for  the  Alaska  Housing Finance  for  the                                                                    
Senior Citizen Housing Development  Fund; $16.72 million for                                                                    
the supplemental  Housing Development Grant that  helps with                                                                    
infrastructure and new planning  for housing; $101.5 million                                                                    
for the Weatherization and Energy Rebate program.                                                                               
                                                                                                                                
2:56:10 PM                                                                                                                    
                                                                                                                                
BOB  BERTO,  CHAIRMAN,  KETCHIKAN MEDICAL  CENTER  GOVERNING                                                                    
BOARD,  KETCHIKAN  (via  teleconference), urged  support  of                                                                    
funding  for  the  Ketchikan   Medical  Center,  and  echoed                                                                    
comments  made  by  prior  testifiers  Dr.  Rice  and  Mayor                                                                    
Williams.                                                                                                                       
                                                                                                                                
2:56:40 PM                                                                                                                    
                                                                                                                                
BRYANA   HOMAN,  PRESIDENT,   KETCHIKAN  HEALTH   OCCUPATION                                                                    
STUDENTS   OF  AMERICA,   KETCHIKAN  (via   teleconference),                                                                    
testified in  support of funding  for the  Ketchikan Medical                                                                    
Center.                                                                                                                         
                                                                                                                                
2:57:30 PM                                                                                                                    
                                                                                                                                
KYAN  REEVE,  TRANSIT  MANAGER, KETCHIKAN  GATEWAY  BOROUGH,                                                                    
KETCHIKAN  (via teleconference),  spoke  in  support of  the                                                                    
Alaska  Mobility's Coalition's  request for  $3 million.  He                                                                    
remarked   that  funding   for  transit   supports  economic                                                                    
development and quality of life  in the communities. He felt                                                                    
that one  dollar invested in transit  capital projects could                                                                    
yield as much  as nine dollars to the State.  He shared that                                                                    
Ketchikan  received $163,000  in  state  match funds,  which                                                                    
yielded more  than $4  for every dollar  of state  match. He                                                                    
shared that the money had  funded more than $850,000 for the                                                                    
upcoming purchase  of the transit  center; and  the purchase                                                                    
of the radio  base station in the Thomas  Basin transit hub,                                                                    
which  included a  much needed  addition of  a restroom.  He                                                                    
remarked  that  the  projects  helped  sustain  the  transit                                                                    
system;  provided important  tools  for  safety; and  create                                                                    
jobs   in   the   community.   He   stressed   that   public                                                                    
transportation  in  Ketchikan  was a  vital  force  economic                                                                    
development.                                                                                                                    
                                                                                                                                
2:59:12 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:03:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SITKA, CORDOVA, VALDEZ                                                                                                        
                                                                                                                                
MIM  MCCONNELL,  MAYOR,  CITY  AND  BOROUGH  OF  SITKA  (via                                                                    
teleconference),  stated that  costs  continued to  increase                                                                    
and  revenue  sources  were disappearing.  She  stated  that                                                                    
local fees  and taxes discouraged economic  development. She                                                                    
pointed  to  the  importance   of  school  funding.  Federal                                                                    
sequestration  had impacted  the school  district's funding,                                                                    
which   put   additional   pressure   general   governmental                                                                    
revenues.  The loss  in  revenues  would cause  debilitating                                                                    
reductions in service levels  unless other revenues replaced                                                                    
them.  She stated  that municipal  and supplemental  revenue                                                                    
sharing  was critical  to  small  communities. She  stressed                                                                    
that the  legislature had a  duty to ensure  that prosperity                                                                    
was available  to all Alaskans.  She urged the  committee to                                                                    
include supplemental revenue sharing.                                                                                           
                                                                                                                                
3:06:09 PM                                                                                                                    
                                                                                                                                
KRISTIN  CARPENTER, MEMBER,  CORDOVA  CITY COUNCIL,  CORDOVA                                                                    
(via teleconference),  urged support for the  Cordova center                                                                    
appropriation in  the capital budget. She  stated that phase                                                                    
one of the  building had been completed.  She furthered that                                                                    
the  building would  be the  cultural hub  of the  town when                                                                    
completed. She stressed that the  facility would be a strong                                                                    
economic driver for the town's  economy throughout the year.                                                                    
She pointed  to a  building that  would increase  the town's                                                                    
capacity for  performing arts.  She discussed  benefits that                                                                    
would   be  obtained   through   tourism.   She  hoped   the                                                                    
legislature would provide full funding.                                                                                         
                                                                                                                                
3:07:41 PM                                                                                                                    
                                                                                                                                
JOEL  AZURE, EXECUTIVE  DIRECTOR,  NATIVE  VILLAGE OF  EYAK,                                                                    
CORDOVA  (via  teleconference),  spoke  in  support  of  the                                                                    
Cordova  center that  would  allow  opportunities for  local                                                                    
businesses and  the expansion  of visitors  in the  area. He                                                                    
spoke  in favor  of  the Native  Village  of Eyak  community                                                                    
health  center  improvements.  The  project  would  increase                                                                    
access  to affordable  health care.  The  health center  had                                                                    
been  relocated  to  a  renovated  facility.  Currently  the                                                                    
village needed approximately  $393,000 to upgrade electrical                                                                    
and mechanical  systems and  emergency egress  lighting. The                                                                    
center  served  the  majority of  residents  who  could  not                                                                    
afford primary care.                                                                                                            
                                                                                                                                
Vice-Chair Fairclough  asked for a dollar  amount related to                                                                    
the  projects. Mr.  Azure replied  that  the Cordova  center                                                                    
request  totaled $7.738  million  and  the community  health                                                                    
center request  was $393,000,  which would  cover electrical                                                                    
upgrades and other.                                                                                                             
                                                                                                                                
3:10:40 PM                                                                                                                    
                                                                                                                                
JIM  KACSH, MAYOR,  CITY  OF  CORDOVA (via  teleconference),                                                                    
spoke  in favor  of  the Native  Village  of Eyak  community                                                                    
health center upgrade request. He  supported funding for the                                                                    
Cordova community center. He stated  that the Cordova center                                                                    
was the  city's number one  priority; funding was  needed to                                                                    
help  finish interior  portion of  the building.  He relayed                                                                    
that the legislature had built  up a reserve fund savings of                                                                    
$15.7 billion;  he recommended  using some  of the  funds to                                                                    
finish projects  that had  been started.   He  stressed that                                                                    
the  work would  reduce future  costs and  would maintain  a                                                                    
strong economy.                                                                                                                 
                                                                                                                                
3:12:09 PM                                                                                                                    
                                                                                                                                
BRET BRADFORD,  MEMBER, CORDOVA  CITY COUNCIL,  CORDOVA (via                                                                    
teleconference),  spoke in  favor  of full  funding for  the                                                                    
Cordova  Center.  He  shared  that  the  center  represented                                                                    
economic  diversity.  He  furthered that  the  center  would                                                                    
bring  in tourism  dollars; he  stated  that Alaska  ferries                                                                    
would  transport  many  of  the   tourists  to  Cordova.  He                                                                    
communicated that  the completion  of phase two  should take                                                                    
approximately 18 months after funding had been received.                                                                        
                                                                                                                                
Vice-Chair Fairclough  asked about  finishing stages  of the                                                                    
project. Mr. Bradford replied that  phase two and three were                                                                    
related to  electrical, mechanical,  and other.  He detailed                                                                    
that  the   total  project  cost  was   $25.5  million;  the                                                                    
community  had secured  a $17.7  million had  been obtained.                                                                    
The  project   needed  an  additional  $7.738   million  for                                                                    
completion. He added that the  project that would house city                                                                    
offices, a  museum, library, theater,  and other.  He stated                                                                    
that the current system was inefficient.                                                                                        
                                                                                                                                
3:14:51 PM                                                                                                                    
                                                                                                                                
BARCLAY  JONES  KOPCHAK, STAGE  OF  THE  TIDE, CORDOVA  (via                                                                    
teleconference), spoke  in favor of funding  for the Cordova                                                                    
center. She relayed that the  roof of a storage facility had                                                                    
collapsed  the prior  winter costumes  had been  ruined. She                                                                    
stressed  the  importance of  a  performance  space and  the                                                                    
positive impacts the theater had on the town.                                                                                   
                                                                                                                                
3:16:19 PM                                                                                                                    
                                                                                                                                
KATRINA  HOFFMAN, PRESIDENT  AND CEO,  PRINCE WILLIAM  SOUND                                                                    
SCIENCE  CENTER,  CORDOVA  (via  teleconference),  spoke  in                                                                    
support for full  funding of the Cordova  center. She shared                                                                    
that the science center was  the administrator of two multi-                                                                    
year research programs funded by  the Exxon Valdez Oil Spill                                                                    
Trustee  Council.  She  furthered  that  the  programs  were                                                                    
slated  to receive  up to  20 years  of funding.  She stated                                                                    
that Cordova center would enable  the science center to hold                                                                    
conferences  and other.  She relayed  that the  organization                                                                    
would  relish the  opportunity  to  provide conferences  and                                                                    
teacher training at the center.  She stated that the ability                                                                    
to raise  support for research  and education in  the region                                                                    
was  about getting  people to  understand some  of the  most                                                                    
compelling  ecosystems   on  earth.  She  stated   that  the                                                                    
community  was  a  hub  and the  demand  exceeded  what  the                                                                    
current facility space could provide.                                                                                           
                                                                                                                                
3:19:21 PM                                                                                                                    
                                                                                                                                
RJ  KOPCHAK, SELF,  CORDOVA (via  teleconference), spoke  in                                                                    
support of the  Cordova center. He spoke  to broad community                                                                    
support   and   involvement   in  the   center.   [Technical                                                                    
teleconferencing    difficulties    occurred   during    the                                                                    
testimony.] He stated  that the center would  replace a city                                                                    
hall  that was  in disrepair.  He asked  the legislature  to                                                                    
provide $7.7 million for the project.                                                                                           
                                                                                                                                
3:20:53 PM                                                                                                                    
                                                                                                                                
TIM  JOYCE, COUNCIL  MEMBER, CORDOVA  CITY COUNCIL,  CORDOVA                                                                    
(via  teleconference),  spoke  in  support  for  funding  to                                                                    
complete  the  Cordova  center. The  community  was  solidly                                                                    
behind the completion  of the facility that  had been funded                                                                    
through a variety  of sources that required  a funding match                                                                    
by December of  2014. The funds would  enable the completion                                                                    
of the facility. He spoke to the immediacy of the need.                                                                         
                                                                                                                                
3:22:25 PM                                                                                                                    
                                                                                                                                
ERIN  COOPER, CORDOVA  ARTS,  CORDOVA (via  teleconference),                                                                    
spoke in support of the  Cordova Center. She stated that the                                                                    
performing arts were  a lively part of  the community, which                                                                    
brought outside individuals into  the town. She believed the                                                                    
center  would increase  residents' desire  to remain  in the                                                                    
community. The  center provided  life blood  in the  town in                                                                    
the winter and a higher quality of living.                                                                                      
                                                                                                                                
3:24:24 PM                                                                                                                    
                                                                                                                                
DAVE  COBB,  MAYOR,  CITY OF  VALDEZ  (via  teleconference),                                                                    
spoke in  support of supplemental revenue  sharing funds. He                                                                    
stressed  that   revenue  sharing   was  paramount   to  the                                                                    
operation  of  many  communities throughout  the  state.  He                                                                    
pointed to  increased energy costs.  He asked  the committee                                                                    
to  find a  long-term funding  source for  municipal revenue                                                                    
sharing.                                                                                                                        
                                                                                                                                
3:26:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:35:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JUNEAU                                                                                                                        
                                                                                                                                
PAT  BRANSON, MAYOR,  CITY OF  KODIAK, KODIAK,  testified in                                                                    
support  of  the  replacement  of  a  pump  house  that  was                                                                    
deteriorating;  it  provided  the community's  entire  water                                                                    
supply for  residents and the  fishing community.  The total                                                                    
project  was $6.8  million, but  the  community had  secured                                                                    
matching  funds from  various  areas.  The community  needed                                                                    
$4.531 million  for the project.  She stated that  the parts                                                                    
for the  pump house were no  longer available. Additionally,                                                                    
there was a  bat infestation in the facility.  She asked for                                                                    
support  for  the  emergency  911  replacement  system;  the                                                                    
request was $350,000. She understood  that funds were tight;                                                                    
the community had been resourceful.  She asked the committee                                                                    
to  support  supplemental  revenue  sharing  that  had  been                                                                    
provided  for  the  past  two  years.  She  emphasized  that                                                                    
municipalities  relied heavily  on  the  funding for  school                                                                    
districts, community  projects, and  other. She  stated that                                                                    
$25 million had been allocated the prior year.                                                                                  
                                                                                                                                
3:38:47 PM                                                                                                                    
                                                                                                                                
CHRIS  ROSE,  EXECUTIVE  DIRECTOR, RENEWABLE  ENERGY  ALASKA                                                                    
PROJECT  (REAP),  JUNEAU, spoke  in  support  of the  Alaska                                                                    
Housing Finance  Corporation (AHFC)  weatherization program.                                                                    
He stated  that the  program saved  a significant  amount of                                                                    
money annually and provided jobs  for Alaskans; he asked for                                                                    
$100  million   for  the  project.  He   stated  that  there                                                                    
continued to  be a high  demand for  the program. He  was in                                                                    
favor of Renewable  Energy Grant Fund; the  program had been                                                                    
extended to  2023. He  encouraged increasing  the governor's                                                                    
proposed increment  to $56 million  annually for  ten years.                                                                    
He spoke  to the  success of the  program. He  supported the                                                                    
governor's  $2  million  request  for  the  Emerging  Energy                                                                    
Technology Fund  that provided  funding for  small projects.                                                                    
He was  in favor of  a $3.5  million request for  the Alaska                                                                    
Center of Energy and Power.                                                                                                     
                                                                                                                                
3:41:29 PM                                                                                                                    
                                                                                                                                
ROBERT BARR, DIRECTOR, JUNEAU  PUBLIC LIBRARY, JUNEAU, spoke                                                                    
in  support  of the  State  Library  Archives Museum  (SLAM)                                                                    
project. The  governor's request was $20  million; the total                                                                    
project  would cost  $50 million.  He stated  that excluding                                                                    
the  $50  million  the  project  was  currently  62  percent                                                                    
funded.  The  project  currently had  a  guaranteed  maximum                                                                    
price  that would  increase  if the  project  was not  fully                                                                    
funded  in the  current  year. The  building  would free  up                                                                    
space in the  State Office Building for use.  He stated that                                                                    
the facility represented  a doubling of space  for the state                                                                    
library. He  furthered that operational costs  were expected                                                                    
to  remain the  same due  to the  consolidation of  multiple                                                                    
offsite  locations.  He  stated   that  energy  costs  could                                                                    
decrease  10 percent  to 15  percent  if alternative  energy                                                                    
goals were met.                                                                                                                 
                                                                                                                                
3:43:41 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN,  EXECUTIVE   DIRECTOR,  ALASKA  MUNICIPAL                                                                    
LEAGUE,  JUNEAU,   spoke  in  support  of   $25  million  in                                                                    
supplemental revenue sharing. She  touched on a past revenue                                                                    
sharing allocation.  She furthered  that the cost  totaled 1                                                                    
percent of the general fund.  She mentioned that the federal                                                                    
government  would  sequester  communities  on  their  timber                                                                    
receipts at a  total of 10 percent; the  governor would have                                                                    
the option to  pay the bill or take the  money out of timber                                                                    
receipts,  which were  currently  slim. She  noted that  the                                                                    
receipts funded schools and roads throughout the state.                                                                         
                                                                                                                                
3:45:05 PM                                                                                                                    
                                                                                                                                
MARIE  DARLIN, MEMBER,  ALASKA  HISTORICAL SOCIETY,  JUNEAU,                                                                    
spoke in support of the  SLAM project. The project needed an                                                                    
additional $30 million; around $5  million would be added to                                                                    
the cost if the project was  not funded in the current year.                                                                    
She recommended against piecemealing  the project. She urged                                                                    
the committee's support.                                                                                                        
                                                                                                                                
Co-Chair Meyer  noted that the  legislature hoped  to finish                                                                    
many  projects statewide.  He welcomed  Representative Cathy                                                                    
Munoz to the room.                                                                                                              
                                                                                                                                
3:46:55 PM                                                                                                                    
                                                                                                                                
PAUL BROWN,  ALASKA LEADER SERIES, ANCHORAGE,  shared that a                                                                    
television project on former Governor  Wally Hickel had been                                                                    
completed and would  begin in the spring; 42  percent of the                                                                    
project  had  been state  funded.  The  group was  currently                                                                    
working on  a film on  former Senator Ted Stevens.  He spoke                                                                    
in support of  state funding for 42 percent  of the project.                                                                    
He  stressed  that  funding  the   project  at  present  was                                                                    
important because  when individuals  passed away a  piece of                                                                    
history was  lost. He  pointed to  films underway  that were                                                                    
hiring Alaskans.  He invited members  to the premier  of the                                                                    
Wally Hickel film in Anchorage on May 2, 2013.                                                                                  
                                                                                                                                
3:49:08 PM                                                                                                                    
                                                                                                                                
MERRILL  SANFORD,   MAYOR,  CITY  AND  BOROUGH   OF  JUNEAU,                                                                    
vocalized support  for revenue sharing. The  funds were some                                                                    
of  the  only  basic  funds received  by  some  of  Alaska's                                                                    
smaller communities.  He urged the committee  to provide $25                                                                    
million  in  supplemental  revenue  sharing  that  had  been                                                                    
provided in  the past  two years.  He stressed  that revenue                                                                    
sharing  represented 1  percent of  the state  general fund.                                                                    
Juneau  would receive  $2 million  from the  base and  would                                                                    
receive an  additional $850,000  if supplemental  funds were                                                                    
provided.  He stated  that a  loss of  revenue to  CBJ would                                                                    
require the  city to make  up the funds. He  emphasized that                                                                    
any  additional loss  of revenue  could only  be made  up by                                                                    
reducing services.                                                                                                              
                                                                                                                                
3:51:57 PM                                                                                                                    
                                                                                                                                
JAMES  MARCUS, DISTRICT  MANAGER, SOUTHEAST  SOIL AND  WATER                                                                    
CONSERVATION  DISTRICT, JUNEAU,  asked  for  support of  the                                                                    
Alaska  Association of  Conservation  Districts  and the  13                                                                    
Soil and  Water Districts throughout Alaska.  He shared that                                                                    
the Southeast  district was new  and fell under  the purview                                                                    
of  the Department  of Natural  Resources. He  spoke to  the                                                                    
organization's   mission    related   to    food   security,                                                                    
mariculture,  and the  prevention  of  invasive species.  He                                                                    
thanked the legislature for its past support.                                                                                   
                                                                                                                                
3:54:16 PM                                                                                                                    
                                                                                                                                
CHARLES   CLEMENT,   SOUTHEAST    ALASKA   REGIONAL   HEALTH                                                                    
CONSORTIUM (SEARHC),  JUNEAU, voiced support for  the Hoonah                                                                    
Clinic.  The  project  cost  would  total  approximately  $8                                                                    
million; SEARHC had secured approximately  $6 million of the                                                                    
needed funds.  He asked the  committee to fund  $1.9 million                                                                    
for the  clinic. He  shared that the  current clinic  was in                                                                    
two  trailers  and  provided services  in  less  than  ideal                                                                    
conditions. He  stated that the  Denali Commission  would no                                                                    
longer provide  funding to  clinics in  the near  future. He                                                                    
stressed that  the matching funds  would expire in  the fall                                                                    
of 2013  and would  be lost without  the state  funding. The                                                                    
funds would allow the clinic  to go into construction in the                                                                    
summer  of 2013.  He  pointed to  jobs  associated with  the                                                                    
clinic.                                                                                                                         
                                                                                                                                
3:56:59 PM                                                                                                                    
                                                                                                                                
CASEY  ANDERSON,   MEMBERSHIP  ASSISTANT,   ALASKA  MOBILITY                                                                    
COALITION, JUNEAU,  testified in  favor of maintaining  a $2                                                                    
million   state  match   for   public  transportation.   The                                                                    
coalition  was  aware  of  the   state's  need  to  restrain                                                                    
spending. The  funds had enabled  the coalition  to leverage                                                                    
$12  million  that  covered   projects  in  various  regions                                                                    
throughout  the  state.  He noted  that  the  funding  would                                                                    
require dollar  for dollar match. He  reiterated his request                                                                    
for  the legislature  to maintain  the $2  million increment                                                                    
from the prior year.                                                                                                            
                                                                                                                                
Senator Bishop complemented Mr. Anderson on his testimony.                                                                      
                                                                                                                                
3:58:59 PM                                                                                                                    
                                                                                                                                
MARY  HAKALA,  COORDINATOR, SCIENCE  TECHNOLOGY  ENGINEERING                                                                    
MATH   (STEM)   ALASKA,   JUNEAU,  requested   a   strategic                                                                    
investment  in  STEM  education for  Alaskan  children.  She                                                                    
pointed to  the First Robotics  and other programs  that had                                                                    
historically been funded by the  U.S. Department of Defense;                                                                    
the federal funds were no  longer available. She shared that                                                                    
in 1950  there were  82,000 science and  engineering workers                                                                    
in  the U.S.;  the number  had increased  to 5.5  million by                                                                    
2007.  She  pointed to  the  increasing  importance of  STEM                                                                    
applied  abilities. She  encouraged the  committee to  think                                                                    
about what  the nonprofit sector  could provide in  terms of                                                                    
education. She  stated that the sector  provided efficiency,                                                                    
value,  and  innovation;  the   sector  could  advocate  for                                                                    
specific items that were proven  to work. She pointed to the                                                                    
capital budget  reference number  60701. She mentioned  a t-                                                                    
shirt that read  "NERD a four letter word with  a six figure                                                                    
income"; she stressed that the  state needed more innovators                                                                    
who could take the state into the 21st century.                                                                                 
                                                                                                                                
4:02:18 PM                                                                                                                    
                                                                                                                                
PAUL   FUHS,   MEMBER,    FAIRVIEW   BUSINESS   ASSOCIATION,                                                                    
ANCHORAGE, spoke  in favor of  a social service  program and                                                                    
the expansion of the Karluk  Manor facility in Anchorage. He                                                                    
stated  that  the business  community  had  been overrun  by                                                                    
homeless  inebriates  due  to   a  concentration  of  social                                                                    
services in the area. He  furthered that the association had                                                                    
initially  been against  the Karluk  Manor; however,  it had                                                                    
come to realize that the  facility was part of the solution.                                                                    
He detailed  that without housing  people would  continue to                                                                    
live on the streets. The  project for a new facility totaled                                                                    
approximately  $11  million;  a  business  in  Fairview  was                                                                    
willing  to buy  and renovate  the existing  facility for  a                                                                    
worker  training housing.  He stressed  that the  population                                                                    
cost  the state  and  municipality a  significant amount  of                                                                    
money; some individuals were going  to the emergency room up                                                                    
to 200 times per year.                                                                                                          
                                                                                                                                
KENAI, KODIAK, DILLINGHAM                                                                                                     
                                                                                                                                
4:04:20 PM                                                                                                                    
                                                                                                                                
CHARLES  BUD CASSIDY,  KODIAK  ISLAND  BOROUGH, KODIAK  (via                                                                    
teleconference),  spoke in  support  funding  for the  final                                                                    
phase  of  the wastewater  treatment  plant  in Kodiak.  The                                                                    
plant would  be located at  the Kodiak landfill.  He pointed                                                                    
to  the  treatment  of  water  quality  standards  that  had                                                                    
increased project  costs. The request  was for  $4.5 million                                                                    
to complete the  project. He also requested  water and sewer                                                                    
extensions to  256 residential  subdivisions with  a request                                                                    
of  $500  thousand.  He spoke  in  support  of  supplemental                                                                    
revenue  sharing   that  was  funded  last   year  for  $300                                                                    
thousand.   He  added   support  for   two  rural   projects                                                                    
addressing damn restoration.                                                                                                    
                                                                                                                                
4:08:36 PM                                                                                                                    
                                                                                                                                
ANDREW  SCHROEDER,   ISLAND  TRAILS  NETWORK,   KODIAK  (via                                                                    
teleconference), discussed the thousands  of tons of tsunami                                                                    
debris that  was washing  up on  the community's  shores. He                                                                    
asked  for support  for a  $5  million request  to fund  the                                                                    
cleanup effort.  He stressed that the  community was seeking                                                                    
federal aid to  pay for the majority of costs.  He asked the                                                                    
committee  to  help  fund the  cleanup  effort  and  protect                                                                    
Alaska's coastal communities.                                                                                                   
                                                                                                                                
4:10:31 PM                                                                                                                    
                                                                                                                                
JEROME   SELBY,   KODIAK   ISLAND   BOROUGH,   KODIAK   (via                                                                    
teleconference), spoke in support  for funding of a landfill                                                                    
project  with  the  increased  costs  generated  by  federal                                                                    
regulations.  He relayed  that  the city  required a  change                                                                    
from a grey water quality  to drinking water quality because                                                                    
of the regulations  and the costs increased as  a result. He                                                                    
echoed the testimony  of Mr. Cassidy regarding  the need for                                                                    
damn  reconstruction,  which  would ultimately  improve  the                                                                    
drinking water  quality for  rural residents.  He encouraged                                                                    
the committee  to support  the full  funding of  $25 million                                                                    
supplemental  for revenue  sharing. Without  the funding,  a                                                                    
$300,000 cut  to the community's  budget was  inevitable. He                                                                    
spoke  to  high  heating  costs in  Kodiak  and  surrounding                                                                    
villages.                                                                                                                       
                                                                                                                                
4:13:42 PM                                                                                                                    
                                                                                                                                
JODY   SEITZ,  CITY   PLANNER,  CITY   OF  DILLINGHAM   (via                                                                    
teleconference),  spoke to  several  projects including  the                                                                    
self-contained  breathing apparatus  project, emergency  911                                                                    
funding, and the proposed  supplemental revenue sharing. She                                                                    
stated that  the Alaska Fire Chiefs  Association had brought                                                                    
forward  a $1.6  million  request for  critical upgrades  to                                                                    
safety equipment.  The Department of Public  Safety required                                                                    
funding  for  a back-up  emergency  911  warning system  for                                                                    
$200,000.  She urged  the committee  to fully  fund the  $25                                                                    
million  in supplemental  revenue  sharing. She  appreciated                                                                    
the committee's  support for revenue sharing  that was vital                                                                    
for funding needed items.                                                                                                       
                                                                                                                                
4:16:12 PM                                                                                                                    
                                                                                                                                
CAROLYN  SMITH,  CITY  OF  ALEKNAGIK  (via  teleconference),                                                                    
spoke  in support  of the  supplemental revenue  sharing for                                                                    
communities.  She pointed  to the  struggle  faced by  small                                                                    
communities paying  high fuel  heating bills.  Her community                                                                    
considered  raising their  sales tax  to 9  percent, without                                                                    
any  other viable  options for  balancing their  budget. The                                                                    
community required the revenue  sharing in order to continue                                                                    
needed services.                                                                                                                
                                                                                                                                
4:17:31 PM                                                                                                                    
                                                                                                                                
TAMMY   HANSEN,   VICE   PRESIDENT,   KODIAK   AREA   NATIVE                                                                    
ASSOCIATION,  KODIAK, spoke  in  support of  a $3.5  million                                                                    
project  that  would  enable the  community  to  expand  and                                                                    
renovate its  existing health center.  The next  phase would                                                                    
allow  the clinic  to expand  upon  existing services  while                                                                    
adding  new ones,  providing cost  savings to  the community                                                                    
and state.  The increased  services would  allow a  shift in                                                                    
Federal  Medical Assistance  Percentage (FMAP).  In addition                                                                    
to the  cost savings provided, the  association would extend                                                                    
services to a population of veterans on Kodiak Island.                                                                          
                                                                                                                                
4:20:19 PM                                                                                                                    
                                                                                                                                
KATHY  NIESSBAUM,  DIRECTOR, BEHAVIORAL  HEALTH  DEPARTMENT,                                                                    
KODIAK AREA NATIVE ASSOCIATION,  KODIAK, spoke in support of                                                                    
funding  for  the  community health  center  expansion.  She                                                                    
explained the  process at the  clinic and stressed  the need                                                                    
for   collaboration  of   behavioral   health  and   medical                                                                    
services.  She  pointed to  studies  in  suicide and  mental                                                                    
health services;  less than 50  percent made  an appointment                                                                    
after being  discharged from emergency services.  The center                                                                    
expansion would  enable the behavioral health  clinicians to                                                                    
reach   the  individuals   immediately  after   leaving  the                                                                    
emergency evaluation.                                                                                                           
                                                                                                                                
Vice-Chair Fairclough  asked how much the  project cost. Ms.                                                                    
Hansen replied that the project requested $3.5 million.                                                                         
                                                                                                                                
4:23:07 PM                                                                                                                    
                                                                                                                                
HEIDI  CHAY,   DISTRICT  MANAGER,   KENAI  SOIL   AND  WATER                                                                    
CONSERVATION  DISTRICT, KENAI  (via teleconference),  shared                                                                    
information about her organization.  She spoke in support of                                                                    
the  organization, which  partnered with  private landowners                                                                    
on  various projects  that protected  soil and  clean water.                                                                    
She noted that  AS 41.10 specified the role  of districts in                                                                    
developing, monitoring and  updating state farm conservation                                                                    
plans.  The   Kenai  district  monitored  950   acres  under                                                                    
permanent   state  agricultural   covenants.  The   district                                                                    
promoted  education in  schools related  to agriculture  and                                                                    
would  host  a  food  safety  conference.  She  thanked  the                                                                    
committee  for  its   past  support  and  urged   it  for  a                                                                    
continuation of funds.                                                                                                          
                                                                                                                                
Vice-Chair Fairclough asked individuals  to relay the amount                                                                    
of  funding needed  for  a project.  Ms.  Chay replied  that                                                                    
there was not a separate  request on behalf of the district.                                                                    
The  total  request  included   $1.2  million  for  multiple                                                                    
districts.                                                                                                                      
                                                                                                                                
4:26:14 PM                                                                                                                    
                                                                                                                                
STEVE ALBERS,  FARMER, KENAI (via teleconference),  spoke in                                                                    
support for  the Kenai Soil and  Water Conservation District                                                                    
funding.  He  shared  his  personal  story  related  to  the                                                                    
farming business. He stated that  the region was challenging                                                                    
for  agriculture, but  had potential.  The  Kenai Water  and                                                                    
Soil  Conservation  District  helped  growers  by  providing                                                                    
information on marketing, conferences,  and growing tips. He                                                                    
added  that the  district  rented out  farming equipment  at                                                                    
reasonable rates.                                                                                                               
                                                                                                                                
4:28:46 PM                                                                                                                    
                                                                                                                                
MICHELLE   MARTIN,  KENAI   SOIL   AND  WATER   CONSERVATION                                                                    
DISTRICT, KENAI  (via teleconference),  spoke in  support of                                                                    
the  organization.  She  pointed   out  that  her  community                                                                    
received food from thousands of  miles away. She appreciated                                                                    
the effort  related to  local food  security in  the region.                                                                    
She stressed  that the resources were  needed by small-scale                                                                    
local farmers. She asked for  the committee's support of the                                                                    
increment in the capital budget  and appreciated past years'                                                                    
funding.                                                                                                                        
                                                                                                                                
PAUL  SHADURA,  BOARD  MEMBER, KENAI  PENINSULA  FISHERMAN'S                                                                    
ASSOCIATION,   KENAI   (via   teleconference),   asked   the                                                                    
committee   for   support   of  the   regional   aquaculture                                                                    
association. He advocated for a  focus on efforts to enhance                                                                    
the  properties   experiencing  declines.  He   spoke  about                                                                    
hatcheries  and their  expansion needs.  He pointed  out the                                                                    
sportfish and recreational boating request for $3 million.                                                                      
                                                                                                                                
STATEWIDE OFFNET SITES                                                                                                        
                                                                                                                                
4:34:06 PM                                                                                                                    
                                                                                                                                
MAYOR O'HARA,  BRISTOL BAY (via teleconference),  spoke to a                                                                    
considerable  increase  in   production  in  the  processing                                                                    
capability  of   the  Naknek  River.  He   stated  that  the                                                                    
community  septic  system  could  handle  approximately  175                                                                    
thousand gallons per day.  With further community expansion,                                                                    
the  system  handled 500  thousand  gallons  per day,  which                                                                    
challenged  the  system.  He  stated  the  request  of  $3.8                                                                    
million for  the capital project.  He spoke in favor  of the                                                                    
additional $25 million in supplemental revenue sharing.                                                                         
                                                                                                                                
4:36:14 PM                                                                                                                    
                                                                                                                                
CARL MARRS,  CEO, OLD HARBOR NATIVE  CORPORATION, OLD HARBOR                                                                    
(via  teleconference), testified  in support  of an  airport                                                                    
extension in the amount of  $6.6 million. He stated that the                                                                    
prior   year's  request   included  $4   million,  but   the                                                                    
governor's  FY 14  capital budget  request  did not  include                                                                    
funding  for community  projects. The  funds would  continue                                                                    
blasting  and   removal  of  rocks.   He  stated   that  the                                                                    
Department   of   Transportation   and   Public   Facilities                                                                    
estimated that the  estimated the cost of the  runway at $38                                                                    
million. He added that a  portion of last year's funding was                                                                    
used to  help local  community members become  operators and                                                                    
truck drivers for the project.                                                                                                  
                                                                                                                                
4:40:36 PM                                                                                                                    
                                                                                                                                
MARY  MATTHIAS,   MAYOR,  NIGHTMUTE   (via  teleconference),                                                                    
voiced   support  or   increased  public   safety  including                                                                    
improvements to  streetlights near roads and  housing areas.                                                                    
She  voiced   the  need  for   funding  for   public  health                                                                    
facilities  maintenance.  She  noted  that  the  community's                                                                    
sewage needs  were unmet due  to lack of  maintenance, which                                                                    
led to  illegal sewage  waste dumping.  She voiced  the need                                                                    
for a  community GED program  to youth and adults  achieve a                                                                    
high  school   diploma  before  2014.  She   requested  help                                                                    
creating additional jobs in the  fields of public health and                                                                    
safety.                                                                                                                         
                                                                                                                                
4:42:38 PM                                                                                                                    
                                                                                                                                
CLARENCE  BAYSINGER,  SELF,   NENANA  (via  teleconference),                                                                    
asked  the  legislature to  refrain  from  funding a  bridge                                                                    
access  project for  Nenana. He  pointed to  a $6.5  million                                                                    
grant  for a  bridge; there  was  an estimated  need for  an                                                                    
additional $10.5 million  in the future. He  did not believe                                                                    
the city was  capable of administering grants  for a project                                                                    
of this  size. He  spoke about oil  and gas  exploration and                                                                    
the  lack  of  a  commercial opportunity  in  his  area.  He                                                                    
disagreed with  state spending of  $17 million for  a bridge                                                                    
without the prospect of finding oil and gas.                                                                                    
                                                                                                                                
4:45:45 PM                                                                                                                    
                                                                                                                                
BRUCE    MEGARR,   CITY    MANAGER,    PILOT   POINT    (via                                                                    
teleconference),  encouraged the  support  of state  revenue                                                                    
sharing  funds.   He  stated   that  currently   there  were                                                                    
approximately 1,300 fishing  boats stored between Dillingham                                                                    
and Port Heiden; boat owners paid  up to $3,000 per year for                                                                    
storage that  was many miles  from the fishing  grounds. The                                                                    
city hoped to  provide storage for the  fisherman and boats;                                                                    
it  could be  offered at  a lower  cost for  boat owners  of                                                                    
various   communities.  He   furthered   that  the   state's                                                                    
investment would  bring $32,000 to city  and tribal coffers.                                                                    
He discussed  the storage plan  for the next  several years.                                                                    
He added that  funding would provide power  and security for                                                                    
the s.                                                                                                                          
                                                                                                                                
4:49:50 PM                                                                                                                    
                                                                                                                                
PETER   STOKES,   PETROLEUM   ENGINEER,   UAF   COLLEGE   OF                                                                    
ENGINEERING AND MINES ADVISORY  AND DEVELOPMENT COUNCIL (via                                                                    
teleconference),  spoke  in  support   of  funding  for  the                                                                    
completion of  the engineering facilities at  the University                                                                    
of Alaska  Anchorage and Fairbanks campuses.  The facilities                                                                    
were  needed   for  the  continuation  of   the  engineering                                                                    
program.  He pointed  to the  expense of  bringing engineers                                                                    
into the state; the  engineering programs would put Alaskans                                                                    
to   work.  He   pointed  to   various  industries   needing                                                                    
engineers. He understood the need  to budget in the presence                                                                    
of  declining  revenues.  He  thanked  the  legislature  for                                                                    
funding of engineering projects the prior year.                                                                                 
                                                                                                                                
4:52:42 PM                                                                                                                    
                                                                                                                                
EVELYN  THOMAS,  TRIBAL  COUNCIL  PRESIDENT,  CROOKED  CREEK                                                                    
TRADITIONAL  COUNCIL,  CROOKED CREEK  (via  teleconference),                                                                    
testified in  support of  a $4.5  million increment  for the                                                                    
installation   of  wells   and  septic   systems;  currently                                                                    
residents  were still  using  honey  buckets. She  expounded                                                                    
that the master plan was  complete and was pending approval;                                                                    
the village  was ineligible for  village safe  water funding                                                                    
until  the  plan was  approved.  She  stated that  a  garage                                                                    
facility to  provide storage  for septic  system maintenance                                                                    
equipment was included  in the request. She  stated that the                                                                    
project would be broken down  into phases if partial funding                                                                    
was the  only option. She  furthered that the  project would                                                                    
provide residents with clean drinking  water and safe sewage                                                                    
disposal.  She  asked for  the  committee's  support of  the                                                                    
project.                                                                                                                        
                                                                                                                                
4:55:04 PM                                                                                                                    
                                                                                                                                
EUGENE PAUL, TRIBAL CHIEF,  HOLY CROSS (via teleconference),                                                                    
testified  in  favor of  the  $300,000  for the  Holy  Cross                                                                    
Community Center.  He relayed that the  project had received                                                                    
federal Housing  and Urban Development (HUD)  funds totaling                                                                    
$600,000,   state   funds   totaling  $150,000,   and   U.S.                                                                    
Department  of Energy  funds. He  shared that  the community                                                                    
center  was  60  percent complete;  the  proposed  increment                                                                    
would allow  for the completion  of the project in  2013. He                                                                    
stated that  the building would allow  for the consolidation                                                                    
of  social services  programs. He  shared that  the building                                                                    
would be energy efficient and would reduce costs.                                                                               
                                                                                                                                
4:57:07 PM                                                                                                                    
                                                                                                                                
RONALD   HELGESEN,   CEO,   ALASKA  NATIVE   TRIBAL   HEALTH                                                                    
CONSORTIUM   (ANTHC),    ANCHORAGE   (via   teleconference),                                                                    
testified in  support of  funding for  the expansion  of the                                                                    
Kodiak  Area Native  Association  (KANA)  health center.  He                                                                    
detailed  that   the  expansion  would  provide   space  for                                                                    
behavioral health  services, a  radiology suite, a  lab, and                                                                    
other specialty  clinics. The  local services  would greatly                                                                    
improve access  to care for  tribal members and  veterans in                                                                    
the  Kodiak area;  it would  subsequently reduce  associated                                                                    
with travel. He pointed to  savings that would result in the                                                                    
Medicaid program.                                                                                                               
                                                                                                                                
4:58:37 PM                                                                                                                    
                                                                                                                                
JAMES  BEYLUND,   CITY  OF  SELAWIK   (via  teleconference),                                                                    
vocalized support for the  supplemental revenue sharing that                                                                    
would   allow  the   community   to   fund  payroll   taxes,                                                                    
administration payroll,  public safety, and  maintenance. He                                                                    
pointed  to  increased  costs   that  resulted  in  reducing                                                                    
employee hours.  He furthered that the  funding would enable                                                                    
the  city to  employ full-time  workers. He  discussed water                                                                    
and  sewer  issues.  He  thanked  the  committee  for  funds                                                                    
related to the landfill and other items.                                                                                        
                                                                                                                                
5:00:20 PM                                                                                                                    
                                                                                                                                
DAN CLARION,  SELF, OUZINKIE (via teleconference),  spoke in                                                                    
support for  funds for the Ouzinkie  water and hydroelectric                                                                    
plant replacement  project. The project had  two phases; the                                                                    
request  was   for  $1.8   million  for   finalized  design,                                                                    
engineering, and  construction of  a new  permanent concrete                                                                    
and steel dam and access  road for the community. He relayed                                                                    
that  the  current  dam  was in  danger  of  collapsing.  He                                                                    
pointed to a grant that  was contingent upon receiving state                                                                    
funds. He shared that the  project would increase efficiency                                                                    
to meet  current needs; currently the  community experienced                                                                    
constant  outages. He  pointed  to other  fund sources.  The                                                                    
project would be  shovel-ready by July 2013.  He stated that                                                                    
the school was operating on  a backup generator. Power costs                                                                    
had increased  approximately 150 percent. The  project would                                                                    
help the school  district to cut costs and  would remove the                                                                    
community from the state  subsidized Power Cost Equalization                                                                    
(PCE) program,  which would save approximately  $100,000 per                                                                    
year.                                                                                                                           
                                                                                                                                
5:03:36 PM                                                                                                                    
                                                                                                                                
LARSON    HUNTER,   CITY    MANAGER,   SCAMMON    BAY   (via                                                                    
teleconference),  encouraged  funding  of  the  $25  million                                                                    
supplemental  revenue sharing  increment. Past  supplemental                                                                    
funding  had enabled  the community  to expand  services for                                                                    
its  500  residents.  The  funding  would  help  communities                                                                    
facing  hardships and  high costs.  He pointed  to important                                                                    
services including public  safety and water/sewer utilities.                                                                    
He  stated that  services  that were  not adequately  funded                                                                    
were  subject   to  decreases  or  elimination.   He  listed                                                                    
benefits  that the  funding would  provide.  He shared  that                                                                    
without the funds the community  would be unable to fund all                                                                    
needed   items.  He   urged   the  committee   to  add   the                                                                    
supplemental funding back into the budget.                                                                                      
                                                                                                                                
5:07:16 PM                                                                                                                    
                                                                                                                                
ALEXIE TEMPLE,  MAYOR, NAPAKIAK (via  teleconference), spoke                                                                    
in support  of $25  million in supplemental  revenue sharing                                                                    
funds.  He  stated  that  the funds  would  help  with  road                                                                    
maintenance  and other  required  services.  He spoke  about                                                                    
other community needs.                                                                                                          
                                                                                                                                
5:10:14 PM                                                                                                                    
                                                                                                                                
STEVE   ANDRESEN,   MAYOR,   CITY    OF   PORT   LION   (via                                                                    
teleconference),  testified in  support of  funds for  a new                                                                    
ferry dock;  the current  dock was  in disrepair.  He shared                                                                    
that $1  million had  been appropriated  from the  state for                                                                    
design; $11 million had  been appropriated for construction,                                                                    
but   $3.5  million   more  was   needed.  He   stated  that                                                                    
construction had  begun and the  city was partnering  with a                                                                    
regional native corporation on  the project. The corporation                                                                    
was opening a  large granite rock quarry across  the bay. He                                                                    
furthered  that  the  quarry  had  potential  to  provide  a                                                                    
substantial  number  of  jobs.  He spoke  in  favor  of  the                                                                    
restoration  of  supplemental   revenue  sharing  funds;  he                                                                    
stressed that the revenue sharing  made up 37 percent of the                                                                    
city's operating  budget. He relayed  that the city  did not                                                                    
have  a  source of  income  that  would  cover the  loss  in                                                                    
funding.                                                                                                                        
                                                                                                                                
5:13:30 PM                                                                                                                    
                                                                                                                                
TIM  DILLON, CITY  MANAGER,  SELDOVIA (via  teleconference),                                                                    
spoke in strong  support of the $25  million in supplemental                                                                    
revenue  sharing.  He urged  the  committee  to restore  the                                                                    
funding. He  asked for  funding for  a generator  that would                                                                    
service  multiple communities;  the  area  had been  without                                                                    
power on several days. He  asked for support of an equipment                                                                    
request.  He   appreciated  the  legislature's   support  on                                                                    
multiple items.                                                                                                                 
                                                                                                                                
5:15:10 PM                                                                                                                    
                                                                                                                                
CINDY    ARNOLD,   CITY    ADMINISTRATOR,   NUIQUSUT    (via                                                                    
teleconference),  spoke  in  support   of  funding  for  the                                                                    
community center  and city hall.  The facilities  provided a                                                                    
location for city meetings and  other. She stated that water                                                                    
had saturated the building's  insulation and had compromised                                                                    
its electrical system. There was  also a mold problem due to                                                                    
the water  damage. She relayed  that the project  could cost                                                                    
above $500,000.                                                                                                                 
                                                                                                                                
5:16:54 PM                                                                                                                    
                                                                                                                                
MARTIN  MOORE  SR.,  CITY  MANAGER,  CITY  OF  EMMONAK  (via                                                                    
teleconference), shared information  about the community. He                                                                    
stated that  the Yukon River  was the  community's lifeblood                                                                    
related to fishing and transportation.  He pointed to unsafe                                                                    
port  conditions.  He  spoke  in support  of  a  modern  and                                                                    
efficient port that would serve  commerce in the region; the                                                                    
port  cost  was  estimated  at $16  million.  He  urged  the                                                                    
committee  to  fund the  remaining  $7  million to  complete                                                                    
stage one of the port.                                                                                                          
                                                                                                                                
Co-Chair Meyer passed the gavel to Co-Chair Kelly.                                                                              
                                                                                                                                
5:22:37 PM                                                                                                                    
                                                                                                                                
WILBUR HOOTCH, MAYOR, CITY  OF EMMONAK (via teleconference),                                                                    
mentioned current legislation including SB  21 and SB 23. He                                                                    
stated  that  the  first  SB 21  proposal  did  not  provide                                                                    
sufficient  tax breaks;  therefore oil  companies would  not                                                                    
promise  investment  in  Alaska.  He  discussed  SB  23.  He                                                                    
mentioned economic  development, education and  other items.                                                                    
He stressed  that a safe  and efficient port  was essential.                                                                    
He asked  the legislature to  consider a project  to provide                                                                    
liquid  natural  gas  to  Interior   Alaska.  He  urged  the                                                                    
committee to focus funding on job-ready projects.                                                                               
                                                                                                                                
5:26:13 PM                                                                                                                    
                                                                                                                                
LORRY BROOKS,  SELF, NENANA  (via teleconference),  spoke in                                                                    
opposition  to a  $6.5 million  bridge  project. She  stated                                                                    
that  an additional  $10  million would  be  needed for  the                                                                    
project's  completion.   She  recommended  waiting   on  the                                                                    
project.  She referred  to  a  proposed agriculture  project                                                                    
that was  cited as one of  the reasons to build  the bridge.                                                                    
She  opined   that  until  the  state   became  involved  in                                                                    
improving the situation  for farmers there was  no reason to                                                                    
start  a  new  agriculture   project.  She  listed  existing                                                                    
agriculture projects; the farmers  had been required to fund                                                                    
their own  work. She  stated that one  of the  main problems                                                                    
facing  farmers was  a lack  of  market for  the goods.  She                                                                    
asked  the state  to fund  profitable  projects for  current                                                                    
farmers.  She  noted  that  if  the  bridge  was  built  the                                                                    
maintenance of the road was a concern of Nenana residents.                                                                      
                                                                                                                                
5:30:33 PM                                                                                                                    
                                                                                                                                
ESTHER   HUGO,    CITY   COUNCIL,   ANAKTUVUK    PASS   (via                                                                    
teleconference), asked  for support of  supplemental revenue                                                                    
sharing funds for the city's  operating costs. She asked the                                                                    
legislature to  maintain the funding. She  pointed to school                                                                    
renovation  and bridge  projects that  were incomplete.  She                                                                    
referenced the  high cost  of fuel.  The city  wanted future                                                                    
funding for a  renovated community center and  a building to                                                                    
attract tourists in the summer months.                                                                                          
                                                                                                                                
5:32:58 PM                                                                                                                    
                                                                                                                                
RUTH FITKA,  MAYOR, CITY  OF MARSHALL  (via teleconference),                                                                    
spoke in  favor of funding  for public safety; the  city had                                                                    
been  without  any public  safety  for  the past  couple  of                                                                    
years. She  pointed to  high rates  of alcohol  and domestic                                                                    
violence.  Funding  was also  needed  to  pay high  workers'                                                                    
compensation and insurance costs.  She encouraged support of                                                                    
funding for a new dump truck.                                                                                                   
                                                                                                                                
5:34:12 PM                                                                                                                    
                                                                                                                                
CHRIS KALERAK, CITY OF  ELIM (via teleconference), testified                                                                    
in support of increased firefighting  needs in the amount of                                                                    
approximately $1.5  million for  a hydrant system  to ensure                                                                    
proper way to fight fires.                                                                                                      
                                                                                                                                
5:35:43 PM                                                                                                                    
                                                                                                                                
DIANE  WOODRUFF,  FINANCE  MANAGER,   CITY  OF  AKUTAN  (via                                                                    
teleconference),  testified   in  support  of   funding  for                                                                    
upgrades to  the city dock.  The city supported  the funding                                                                    
for  an installation  of harbor  floats; without  floats the                                                                    
harbor would  not be  functional for  the fishing  fleet and                                                                    
harbor use  would be limited.  The improvements  would allow                                                                    
for  increased  activity  and   employment.  She  urged  the                                                                    
committee  to  support  the   $25  million  in  supplemental                                                                    
revenue sharing.                                                                                                                
                                                                                                                                
5:38:04 PM                                                                                                                    
                                                                                                                                
ELSIE  VENT,  CITY  COUNCIL,  HUSLIA  (via  teleconference),                                                                    
asked  for  support  for the  $25  million  in  supplemental                                                                    
revenue sharing.  The community needed the  money for water,                                                                    
sewer, and high energy and electricity costs.                                                                                   
                                                                                                                                
Co-Chair Kelly passed the gavel to Co-Chair Meyer.                                                                              
                                                                                                                                
5:38:50 PM                                                                                                                    
                                                                                                                                
CAROLYN  OQUILLUK,  CITY  OF  TELLER  (via  teleconference),                                                                    
spoke in  favor of  supplemental revenue sharing  funds. She                                                                    
shared that  funds were used  to cover high energy  and fuel                                                                    
costs for city  buildings. She asked for  funding that would                                                                    
enable the city  to maintain its buildings.  She mentioned a                                                                    
fuel shortage  that put  a strain  on the  entire community.                                                                    
Supplemental funds were used to  support daily operations of                                                                    
administration,  washateria,  honey  bucket,  and  bathhouse                                                                    
services.  The city  was currently  working on  village safe                                                                    
water. She discussed water and sewer needs.                                                                                     
                                                                                                                                
5:43:49 PM                                                                                                                    
                                                                                                                                
CECIL  GATES,  FARMER,  NENANA (via  teleconference),  spoke                                                                    
against the  proposed $17 million increment  for the bridge.                                                                    
He stated  that state financing of  agriculture problems had                                                                    
been dismal;  he pointed to  existing projects.  He believed                                                                    
the increment  was a waste  of money until  more information                                                                    
was known about gas and oil.                                                                                                    
                                                                                                                                
5:45:31 PM                                                                                                                    
                                                                                                                                
STANLEY  TOCKTOO, MEMBER,  CITY COUNCIL  OF SHISHMAREF  (via                                                                    
teleconference),  spoke  in  favor of  supplemental  revenue                                                                    
sharing in  the amount  of $25 million.  He stated  that the                                                                    
majority  of the  funds would  go to  high energy  costs. He                                                                    
pointed to a  budget shortfall. He spoke  to needs including                                                                    
water, sewage, public safety, heating  fuel for operation of                                                                    
buildings, and other.                                                                                                           
                                                                                                                                
5:49:07 PM                                                                                                                    
                                                                                                                                
RHONDA  PITKA, CHIEF,  BEAVER VILLAGE  COUNCIL, BEAVER  (via                                                                    
teleconference), spoke  in support  for funding  to renovate                                                                    
the   washateria.  She   stated   that   the  facility   was                                                                    
fundamental to the public health  and safety of the village;                                                                    
there  was currently  only one  working  washer, dryer,  and                                                                    
shower for  80 residents. She  asked for support of  the $25                                                                    
million supplemental  revenue sharing funds. She  pointed to                                                                    
high  fuel costs.  She thanked  the legislature  for funding                                                                    
past pre-paid metering project.                                                                                                 
                                                                                                                                
Co-Chair  Meyer relayed  that the  committee would  continue                                                                    
public testimony beginning at 6:00 p.m. that day.                                                                               
                                                                                                                                
5:51:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:59:31 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:59 p.m.                                                                                          

Document Name Date/Time Subjects
SB 18 KANA Public Testimony - Kodiak.pdf SFIN 4/1/2013 1:30:00 PM
SB 18
SB 18 Public Testimony - Weld.doc SFIN 4/1/2013 1:30:00 PM
SB 18
SB 18 Tanana Chiefs Conference Public Testimony.pdf SFIN 4/1/2013 1:30:00 PM
SB 18
SB 18 FW Support funding for Loussac Library.msg SFIN 4/1/2013 1:30:00 PM
SB 18
LoussacRenewal_1 11 13.pdf SFIN 4/1/2013 1:30:00 PM
SB 18
SB 18 FW Loussa Renewal - Kroll.msg SFIN 4/1/2013 1:30:00 PM
SB 18