Legislature(1993 - 1994)

04/30/1993 06:40 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 30, 1993                                        
                            6:40 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #70, Side 2 (150-end)                                                
  SFC-93, #72, Side 1 (000-end)                                                
  SFC-93, #72, Side 2 (end-050)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair,  convened the  meeting  at                 
  approximately 6:40 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce and Frank,  Senators Kelly,                 
  Kerttula, Rieger,  and Sharp  were present.   Senator  Jacko                 
  arrived while the meeting was in progress.                                   
                                                                               
  ALSO  ATTENDING:    Shelby  Stastny,  Director,   Office  of                 
  Management & Budget, Office of  the Governor; Cheryl Frasca,                 
  Division  Director, Division  of  Budget Review,  Office  of                 
  Management & Budget,  Office of the Governor;  Brian Rogers,                 
  Vice President  for  Finance,  University  of  Alaska;  Mike                 
  Greany,  Director,  Karen  Rehfeld,  Joan Kasson,  and  Dave                 
  Tonkovich,  Fiscal  Analysts, Legislative  Finance Division;                 
  and aides to committee members.                                              
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 50 -   An Act making appropriations for capital projects;                 
            and providing for an effective date.                               
                                                                               
            Amendments 1 through 39 were offered  and ADOPTED,                 
            except for  amendments 12, 14 (which  was combined                 
            with 19), 36, and 38 which FAILED.  Amendments 16,                 
            21, 22, and  35 were withdrawn.   CSSB 50(FIN)  as                 
            amended was REPORTED  OUT of committee with  a "do                 
            pass."  Senators  Rieger, Jacko, Sharp, Kelly  and                 
            Co-chairs  Frank  and  Pearce  signed  "do  pass."                 
            Senator Kerttula signed "no recommendation."                       
                                                                               
                                                                               
  SENATE BILL NO. 50:                                                          
                                                                               
       An Act  making appropriations for capital projects; and                 
       providing for an effective date.                                        
                                                                               
  CO-CHAIR DRUE PEARCE announced that  CSSB 50(FIN) work draft                 
  "E"  dated  April 29,  1993.   SENATOR  TIM KELLY  MOVED for                 
                                                                               
                                                                               
  ADOPTION  of CSSB  50(FIN) work  draft "E"  dated  April 29,                 
  1993.   SENATOR  JAY KERTTULA  OBJECTED  for  clarification.                 
  After  a short  discussion,  Senator  Kerttula withdrew  his                 
  objections.  No  further objections  having been raised,  it                 
  was ADOPTED.                                                                 
                                                                               
  Co-chair Pearce announced that amendments  would be numbered                 
  and considered in order.                                                     
                                                                               
  SENATOR  STEVE  RIEGER MOVED  for  ADOPTION of  amendment 1,                 
  inserting   a  new   section  to   read,"  Sec.   6.     The                 
  appropriations made by this Act are for capital projects and                 
  lapse under AS  37.25.020."   Senator Rieger clarified  that                 
  the words "and lapse under AS  37.25.020" means that it does                 
  not automatically lapse at the  end of the fiscal year.   No                 
  objections having been raised, amendment 1 was ADOPTED.                      
                                                                               
  Co-chair Pearce explained that amendment  2a was a technical                 
  amendment to  increase the  "other funds"  line for  federal                 
  funds to allow  the University of Alaska  Anchorage Aviation                 
  Technology Center to  receive federal  matching funds.   The                 
  new number is  $10,590,000 and  the increase is  $6,885,000.                 
  In answer to Senator Kerttula,  BRIAN ROGERS, Vice President                 
  for Finance, University of Alaska, stated that those federal                 
  funds were not  available for  any other  purpose.   Senator                 
  Rieger MOVED  for ADOPTION of  amendment 2a.   No objections                 
  having been raised, amendment 2a was ADOPTED.                                
                                                                               
  Co-chair Pearce explained that amendment  2b would add a new                 
  section  for  the  University  of  Alaska  Southeast,  Sitka                 
  campus, classroom/ program planning/lab  expansion.  Senator                 
  Kelly asked if profit from the Indian River project would be                 
  used  for some  of the  facility maintenance  that has  been                 
  allowed to  lapse.   Mr. Rogers  said that  since the  funds                 
  would accrue from the community  campus, the University felt                 
  those funds should  be used  at the Sitka  campus.   Senator                 
  Rieger MOVED for  ADOPTION of  amendment 2b.   In answer  to                 
  Senator Kelly's  objection, Mr.  Rogers said  that it  would                 
  provide sufficient funding to complete the classrooms in the                 
  hanger that is now being used.  In  answer to Senator Kelly,                 
  Mr.  Rogers  said the  expected  revenue would  be somewhere                 
  between $700.0 and  $1,000.0.  No further  objections having                 
  been raised, amendment 2b was ADOPTED.                                       
                                                                               
  Co-chair  Pearce said that  amendment 3 was  a correction of                 
  $50,000 from the Copper Valley Economic Development  Council                 
  for the Nitty  Gritty Dirt Bank Tourism  Production to Small                 
  Business  Assistance  & Regional  Marketing.   SENATOR  BERT                 
  SHARP MOVED  for ADOPTION  of  amendment 3.   No  objections                 
  having been raised, amendment 3 was ADOPTED.                                 
                                                                               
  Senator Kelly said that  amendment 4 would move  $270.0 from                 
  the  Department  of  Community  &  Regional Affairs  to  the                 
  Department  of  Administration.   Senator  Kelly  MOVED  for                 
                                                                               
                                                                               
  ADOPTION of amendment  4.  No objections having been raised,                 
  amendment 4 was ADOPTED.                                                     
                                                                               
  Senator Kelly said that amendment 4b would combine lines  29                 
  and 32  on page  48, saving  15 percent  in costs.   Senator                 
  Kelly MOVED  for ADOPTION  of amendment  4b.   No objections                 
  having been raised, amendment 4b was ADOPTED.                                
                                                                               
  Co-chair Pearce announced  that amendment 5 was  proposed by                 
  Senator Randy Phillips  and moved  $55.0 general funds  from                 
  the municipality  of  Anchorage  to  Anchorage  Neighborhood                 
  Housing.  Senator Kelly MOVED  for ADOPTION of amendment  5.                 
  No objections having been raised, amendment 5 was ADOPTED.                   
                                                                               
  Co-chair  Pearce  said  that  amendment  6 was  proposed  by                 
  Senator  Johnny  Ellis  and  was  a technical  amendment  to                 
  include both of his election districts in the description of                 
  the bill.   Senator Rieger pointed  out that page 77  should                 
  read page 73.  Senator Kelly MOVED for ADOPTION of amendment                 
  6 amended  to read  "page 73."   No  objections having  been                 
  raised, amendment 6 was ADOPTED.                                             
                                                                               
  Co-chair  Pearce  said  that amendment  7  also  proposed by                 
  Senator Johnny Ellis  were discretionary projects and  a net                 
  zero.  Senator Kelly MOVED for ADOPTION of amendment 7.   No                 
  objections having been raised, amendment 6 was ADOPTED.                      
                                                                               
  Co-chair Pearce  announced that  amendment 8  was a  project                 
  description  change  proposed  by  Senator  Suzanne  Little.                 
  SENATOR JAY KERTTULA MOVED for ADOPTION  of amendment 8.  No                 
  objections having been raised, amendment 8 was ADOPTED.                      
                                                                               
  Co-chair Pearce explained that some allocations under Alaska                 
  Mental  Health  Board designated  projects  were incorrectly                 
  listed  and  amendment  9  corrected  those  appropriations.                 
  Senator  Rieger  MOVED for  ADOPTION  of  amendment  9.   No                 
  objections having been raised, amendment 9 was ADOPTED.                      
                                                                               
  Co-chair  Pearce  said  that amendment  10  by  Senator Mike                 
  Miller  replaced the  North Pole  Water system  construction                 
  with the Kodiak water system  improvements.  Co-chair Pearce                 
  said  she understood  that  the Kodiak  project  is a  pilot                 
  project for  the state  that will  be test  a new  filtering                 
  system.  If  it works, other  systems can take advantage  of                 
  the new technology.  She also  pointed out that this request                 
  made by Senator  Miller was  in frustration with  non-action                 
  taken  by  DOT/PF  regarding  the  North Pole  water  system                 
  construction.  For the past several years,  this project has                 
  been replaced with  other projects.  Senator  Kerttula MOVED                 
  for  ADOPTION of  amendment 10.   No objections  having been                 
  raised, amendment 10 was ADOPTED.                                            
                                                                               
  Co-chair Pearce said  that amendment  11 by Co-chair  Frank,                 
  and  Senators Miller and  Sharp provided rewording  and is a                 
                                                                               
                                                                               
  net zero  effect.    Senator Sharp  MOVED  for  ADOPTION  of                 
  amendment 11.   Senator Rieger  MOVED that the  amendment be                 
  changed  to  read,  $53,200  instead  of 53.2,  and  $22,800                 
  instead of 22.8.  No further objections having been  raised,                 
  amendment 10 as amended was ADOPTED.                                         
                                                                               
  Co-chair  Pearce  asked  if  Senator  Kerttula  would  offer                 
  amendment  12.    Senator   Kerttula  explained  that   this                 
  allocation for DEC was in the Governor's original budget and                 
  asked  that  $1,350.0 be  added  to the  Kenai-Thompson Park                 
  water and  sewer.   Senator Kerttula  MOVED for  ADOPTION of                 
  amendment  12.   Senator  Kelly  OBJECTED.   Co-chair Pearce                 
  called for a show  of hands and the motion FAILED  on a vote                 
  of 4-1.  (Senator Kerttula was in support.  Co-chairs Pearce                 
  and Frank, Senators Kelly and  Sharp were opposed.  Senators                 
  Jacko and Rieger did not vote.)                                              
                                                                               
  Senator Rieger MOVED for ADOPTION of  amendment 13.  He said                 
  that amendment 13 added intent language, made corrections to                 
  wording, and changed  appropriations for a net  zero result.                 
  No objections having  been raised,  amendment 13 as  amended                 
  was ADOPTED.                                                                 
                                                                               
                          Recess 7:15pm                                        
                        Reconvene 7:25pm                                       
                                                                               
  Amendment  14 was held  and later included  in amendment 19.                 
  (See amendment 19 for detail.)                                               
                                                                               
  Co-chair Pearce announced that amendment 15 would add intent                 
  language regarding $15,000.0 for the  University of Alaska -                 
  deferred maintenance.  Senator Kerttula MOVED amendment  15.                 
  No objections being heard, amendment 15 was ADOPTED.                         
                                                                               
  Amendment 16 was not offered.                                                
                                                                               
  Amendment 17 was held until later in the meeting.                            
                                                                               
  SENATOR GEORGE JACKO MOVED amendment 18 moving funds between                 
  projects at a zero net, and  two projects from Department of                 
  Environmental Conservation  to the Department  of Education.                 
  Senator Kerttula OBJECTED and advised the committee that the                 
  Goodnews Bay  project would  probably not  begin and  would,                 
  over time,  cost  the  state  approximately $5M  if  it  was                 
  allowed  to   continue.    Senator  Kerttula   withdrew  his                 
  objection.                                                                   
                                                                               
                          Recess 7:30pm                                        
                        Reconvene 7:35pm                                       
                                                                               
  After  some discussion, about  amendment 18,  Senator Rieger                 
  OBJECTED.  Co-chair  Pearce called for  a show of hands  and                 
  amendment  18  was ADOPTED  on  a  vote of  4-2.   (Senators                 
  Kerttula  and  Rieger were  opposed.   Co-chairs  Pearce and                 
                                                                               
                                                                               
  Frank, Senators Jacko  and Sharp were  in support.   Senator                 
  Kelly did not vote.)                                                         
                                                                               
  Senator  Rieger explained  that  amendment 14  would include                 
  amendment 19 "revised."   He said that this amendment  would                 
  add $450.0 of  general fund  money to the  budget.   Senator                 
  Rieger MOVED amendment  14 including 19 "revised."   Senator                 
  Jacko OBJECTED.  Co-chair Pearce called  for a show of hands                 
  and  the motion FAILED on a vote of 4-2.  (Senators Kerttula                 
  and Rieger were  in support.  Senators Pearce, Kelly, Jacko,                 
  and Sharp were opposed.  Co-chair  Frank was absent from the                 
  meeting at the time the vote was taken.)                                     
                                                                               
                          Recess 7:40pm                                        
                        Reconvene 7:42pm                                       
                                                                               
  Co-chair Pearce  MOVED amendment 17 which  increased federal                 
  authorization   of   $5,000,000   for    the   multi-purpose                 
  replacement vessel.  Discussion was  had by Co-chair Pearce,                 
  Senators Kelly, and Sharp regarding  federal funding for the                 
  state, discretionary funding, and the total cost  of the new                 
  replacement vessel.   Co-chair Pearce invited Karen Rehfeld,                 
  Fiscal  Analysts, Legislative Finance  Division, to join the                 
  committee at the  table and  explain the replacement  vessel                 
  funding.  Co-chair Pearce called for a show of hands and the                 
  motion FAILED on a vote of  4-3.  (Senators Kerttula, Rieger                 
  and  Jacko were  in support.    Co-chairs Pearce  and Frank,                 
  Senators Sharp and Kelly were opposed.)  (Note: Action taken                 
  on  Amendment 17  was  rescinded later  in  the meeting  and                 
  amendment 17 was ADOPTED.)                                                   
                                                                               
  End SFC-93 #70, Side 2                                                       
  Begin SFC-93 #72, Side 1                                                     
                                                                               
  Senator  Rieger MOVED  amendment  20 which  is  a change  of                 
  language for the  Port of Anchorage.   In answer to  Senator                 
  Kerttula, Co-chair Pearce  said the projects had  nothing to                 
  do  with the Ship Creek area.   Senator Jacko OBJECTED.  Co-                 
  chair Pearce called for a show of hands and amendment 20 was                 
  ADOPTED on a  vote of  5-1.  (Co-chair  Pearce and  Senators                 
  Kelly, Kerttula,  Sharp and Rieger were in support.  Senator                 
  Jacko  was opposed.    Co-chair Frank  was  absent from  the                 
  meeting at the time the vote was taken.)                                     
                                                                               
  Amendment 21 was not offered by Senator Kerttula.                            
                                                                               
  Amendment 22 was not offered by Senator Robin Taylor.                        
                                                                               
  Senator Kerttula MOVED  amendment 23  changing the  election                 
  district reference.  No objections being heard, amendment 23                 
  was ADOPTED.                                                                 
                                                                               
  Senator Kerttula MOVED amendment 24  moving $60,000 from the                 
  Seward  SeaLife  project  to the  Frontier  Training  Center                 
                                                                               
                                                                               
  Rehabilitation Construction project.  Discussion                             
  . was had by Senators Kelly, Kerttula and Co-chair Pearce in                 
  an effort to identify the Seward project.  It was determined                 
  to be discretionary  money and  a net zero.   No  objections                 
  being heard, amendment 24 was ADOPTED.                                       
                                                                               
  Senator Kerttula MOVED  amendment 25 changing  discretionary                 
  money.  Senator Kelly OBJECTED.  It was determined that this                 
  amendment was discretionary  money and a net zero.   Senator                 
  Kelly withdrew his  objection.  No further  objections being                 
  heard, amendment 25 was ADOPTED.                                             
                                                                               
                          Recess 8:02pm                                        
                        Reconvene 9:00pm                                       
                                                                               
  Senator Kerttula  MOVED  to RESCIND  prior committee  action                 
  failing to  adopt amendment 17.   Senator  Kelly voiced  his                 
  concern  again  over the  projected  $85M  cost  of the  new                 
  vessel.    No  objections  being  heard,  prior  action  was                 
  RESCINDED.  Senator  Kerttula MOVED  to adopt amendment  17.                 
  No objections being heard, amendment 17 was ADOPTED.                         
                                                                               
  Co-chair Pearce invited Shelby Stastny, Director,  Office of                 
  Management  &  Budget, Office  of  the Governor,  and Cheryl                 
  Frasca, Division Director, Division of Budget Review, Office                 
  of Management & Budget, Office of  the Governor, to join the                 
  committee at the table and  explain the following amendments                 
  by OMB.   SHELBY STASTNY said that in most  cases the figure                 
  that appeared in  the amendment column was  the figure found                 
  in the House budget.                                                         
                                                                               
  CO-CHAIR STEVE FRANK  MOVED amendment 26 for  the Department                 
  of Administration.   Intent language  and the Mount  Roberts                 
  Marina were not moved.  No objections being heard, amendment                 
  26 was ADOPTED.                                                              
                                                                               
  Co-chair  Frank  MOVED amendment  27  for the  Department of                 
  Commerce  &   Economic  Development.    The   Alaska  Energy                 
  Authority,  adding  Electrical   Services  Extension   Grant                 
  Program,  was  not  moved.     No  objections  being  heard,                 
  amendment 27 was ADOPTED.                                                    
                                                                               
  Co-chair  Frank  MOVED amendment  28  for the  Department of                 
  Community & Regional Affairs adding only the data processing                 
  equipment.    No objections  being  heard, amendment  28 was                 
  ADOPTED.                                                                     
                                                                               
  Co-chair  Frank  MOVED amendment  29  for the  Department of                 
  Education adding only State Library materials and equipment,                 
  statewide  data   management  system  and   AVTEC  equipment                 
  purchases,  and  deleting  department  micro  image  optical                 
  system.    No  objections  being  heard,  amendment  29  was                 
  ADOPTED.                                                                     
                                                                               
                                                                               
  Co-chair Frank MOVED amendment 30 which moved the Governor's                 
  cutoff line  up to but  including Togiak  on page  3 of  the                 
  amendment.    On page  1,  Kodiak water  system construction                 
  (included and  already moved  in amendment  10), Holy  Cross                 
  sanitation and lagoon,  and Huslia  water and sewer  design,                 
  was excluded.   Senator Kerttula  OBJECTED and asked  if the                 
  projects excluded  below Togiak  were less  important.   Co-                 
  chair Frank said  instead of choosing certain  projects, the                 
  line  was  used for  the  purpose  of  changing the  funding                 
  figure.  Discussion  was had by  Co-chair Frank and  Senator                 
  Kelly for clarification of projects.  Co-chair Pearce called                 
  for a  show of hands and amendment 30  was ADOPTED on a vote                 
  of 6-1.  (Co-chairs Pearce and Frank, Senators Kelly, Jacko,                 
  Sharp and  Rieger were  in support.    Senator Kerttula  was                 
  opposed.)                                                                    
                                                                               
  Co-chair Frank MOVED amendment 31  adding funding for Toklat                 
  Chum  Salmon  restoration,  and  funding  to  vessels  major                 
  maintenance, assert and protect the  state's right to manage                 
  Alaska's resources,  and major  equipment  replacement.   No                 
  objections being heard, amendment 31 was ADOPTED.                            
                                                                               
  Co-chair Frank  MOVED amendment  32 adding  funding for  the                 
  Department of  Labor for  workers' compensation  records and                 
  claims  handling/imaging  system.   Senator  Kelly OBJECTED.                 
  Amendment 32 was held until later  in the meeting.  Co-chair                 
  Frank MOVED amendment 32 amending the funding to $200.0.  No                 
  objections being heard, amendment 32 as amended was ADOPTED.                 
                                                                               
  Co-chair Frank  MOVED amendment  33 adding  funding for  the                 
  Department of  Natural Resources.   Senator  Kelly OBJECTED.                 
  Amendment 33 was held until later  in the meeting.  Co-chair                 
  Frank  asked  Mr.  Stastny  to   speak  to  the  final  land                 
  selections by the Department of  Natural Resources.  Senator                 
  Kelly voiced  his concern over  the increase in  funding for                 
  the land selections.   Mr. Frasca  spoke to a definition  of                 
  owner  state  assertions/land  selections.   Co-chair  Frank                 
  MOVED to amend  the number to $1,000.0  for land selections.                 
  Senator Kelly MOVED  to amend  that figure to  $750.0.   Co-                 
  chair  Frank  MOVED  amendment  33  adding funding  for  the                 
  recorder's  office-records  preservation,  forest inventory,                 
  hydrological    network    evaluation   and    owner   state                 
  assertions/land selections amended to $750.0.  No objections                 
  being raised, amendment 33 as amended was ADOPTED.                           
                                                                               
  Co-chair Frank  MOVED amendment  34 adding  funding for  the                 
  Department    of   Safety    to    facilities   renewal    &                 
  replacement/deferred  maintenance,   and  Training   Academy                 
  equipment.   No objections  being raised,  amendment 34  was                 
  ADOPTED.                                                                     
                                                                               
                          Recess 9:20pm                                        
                        Reconvene 9:22pm                                       
                                                                               
                                                                               
  Co-chair  Frank  MOVED  amendment  35  adding funds  to  the                 
  Department of Transportation & Public Facilities.  Amendment                 
  35 was held until  later in the  meeting.  Amendment 35  was                 
  then withdrawn but Senator Kerttula moved related  amendment                 
  36.                                                                          
                                                                               
  Senator Kerttula  MOVED amendment  36 to  add Juneau  access                 
  route  PE  funding  for $1,800.0.    Senator  Kelly OBJECTED                 
  because  of  the  funding  already  designated for  the  new                 
  vessel.  Co-chair  Pearce called for a show of hands and the                 
  motion FAILED  on a vote of  6-1.  (Senator Kerttula  was in                 
  support.  Co-chairs Pearce and Frank, Senators Sharp, Jacko,                 
  Rieger, and Kelly were opposed.)                                             
                                                                               
  Senator  Kerttula MOVED  amendment  37  by  Senator  Lincoln                 
  reallocating  discretionary  funds.    No  objections  being                 
  raised, amendment 37 was ADOPTED.                                            
                                                                               
  Senator Kerttula MOVED  amendment 38 for the  Mat-Su Borough                 
  "Chickaloon  Trail" road  upgrade.  Senator  Sharp OBJECTED.                 
  Co-chair Pearce called  for a show  of hands and the  motion                 
  FAILED on a vote of 6-1.   (Senator Kerttula was in support.                 
  Co-chairs  Pearce and Frank,  Senators Sharp, Jacko, Rieger,                 
  and Kelly were opposed.)                                                     
                                                                               
                          Recess 9:40pm                                        
                        Reconvene 9:45pm                                       
                                                                               
  End SFC-93 #72, Side 1                                                       
  Begin SFC-93 #72, Side 2                                                     
                                                                               
  Senator  Kerttula  MOVED  amendment  39  by  Senator Lincoln                 
  reallocating discretionary  funds.  Senator  Kelly OBJECTED.                 
  Discussion  followed,   and  Senator   Kelly  withdrew   his                 
  objection.  No further objections being raised, amendment 39                 
  was ADOPTED.                                                                 
                                                                               
  In answer to Senator Kelly, Co-chair Frank said the increase                 
  at the  request  of the  Governor  and by  these  amendments                 
  amounted to $4.6M.  Senator Kelly MOVED for adoption of CSSB
  50(FIN)  as amended.    No objections  being  heard, it  was                 
  ADOPTED.  Co-chair  Pearce informed the committee  that CSSB
  50(FIN)  would   be  used   as  an   amendment  to   another                 
  appropriations  bill.  She suggested if  there were any more                 
  amendments to be  made, that they  be brought to the  Senate                 
  floor.  Co-chair Frank MOVED for  passage of CSSB 50(FIN) as                 
  amended from committee with  individual recommendations.  No                 
  objections being  heard, CSSB  50(FIN) was  REPORTED OUT  of                 
  committee.    (Co-chairs Frank  and Pearce,  Senators Kelly,                 
  Rieger, Sharp  and Jacko signed "do pass."  Senator Kerttula                 
  signed "no recommendation.")                                                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
                                                                               
  The meeting was adjourned at approximately 10:15 p.m.                        
                                                                               

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