Legislature(2005 - 2006)SENATE FINANCE 532
05/17/2005 10:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| SB97 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 46 | ||
| = | SB 97 | ||
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
May 17, 2005
10:10 a.m.
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 10:10:16 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Fred Dyson
Senator Bert Stedman
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: GINGER BLAISDELL, Staff to Co-Chair Green
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 46-APPROP: CAPITAL BUDGET
The Committee adopted a committee substitute and two amendments.
The bill was reported from Committee.
SB 97-SUPPLEMENTAL APPROPRIATIONS/CBR
The Committee adopted a committee substitute and six amendments.
The bill was reported from Committee.
10:10:32 AM
CS FOR SENATE BILL NO. 46(FIN) am
"An Act making and amending appropriations, including capital
appropriations, supplemental appropriations, reappropriations,
and appropriations to capitalize funds; making appropriations
under art. IX, sec. 17(c), Constitution of the State of
Alaska, from the constitutional budget reserve fund; and
providing for an effective date."
This bill had been previously heard and reported out of the Senate
Finance Committee. This bill was returned to the Senate Finance
Committee for further consideration.
10:10:41 AM
GINGER BLAISDELL, Staff to Co-Chair Green, explained the proposed
committee substitute, Version "P" before the members is "slightly
changed" from the version reported from Committee at an earlier
hearing. Every item with an FY 06 effective date is included in
this committee substitute; every item with an FY 05 effective date
is included in a proposed committee substitute to SB 97.
10:11:35 AM
Ms. Blaisdell reported that all technical corrections have been
incorporated into the proposed committee substitute.
10:11:49 AM
Co-Chair Green noted that school maintenance projects have been
removed from this bill and would be included in SB 97. All other
capital projects included in the version previously reported from
the Senate Finance Committee are included in the proposed committee
substitute.
10:13:06 AM
Ms. Blaisdell affirmed, with one exception. An appropriation for
Chitina Dip Net activities was adopted by the full Senate, but
withdrawn. That project is included in the proposed committee
substitute.
10:13:24 AM
Co-Chair Green understood this would allow fees to be collected to
operate concession and infrastructure necessary for the Chitna
fishing program.
10:14:00 AM
Co-Chair Wilken moved for adoption of CS SB 46, 24-GS 1074\P
Amended, as a working document. [Note: handwritten changes were
made to the committee substitute before distribution and were
included in the motion to adopt this committee substitute.]
There was no objection and the amended committee substitute was
ADOPTED as a working document.
10:14:24 AM
Amendment #97: This amendment redirects the $700,000 general fund
appropriation for the Chitna Personal Use Dip Net Fishery Access
Area (HD 1-40) component from the Department of Natural Resources
to the Department of Transportation and Public Facilities, deleting
the language from page 43, lines 10 - 20 and reinserting the
language on page 49, following line 28. This amendment also adds
additional intent language. The complete conditional and intent
language for this component reads as follows.
This appropriation shall be made available at the time the
Chitna Native Corporation, AHTNA Native Corporation and the
State of Alaska enter into a concession area management
agreement for the Chitna Personal Use Dip Net Fishery Area.
It is the intent of the Legislature that this appropriation
provide for the basic infrastructure to develop the Chitna
Personal Use Dip Net Fishery Area to begin the public-private
concession program as outlined in the management agreement.
It is the intent of the Legislature that future appropriations
for the Chitna Personal Use Dip Net Fishery Area be made
available based on program receipts collected for this
purpose.
The Department of Transportation and Public Facilities shall
have the authority to use the appropriation for the purpose of
providing, over a five-year period, access and facilities in
support of the Chitina Personal Use Dip Net Fishery and
related activities, including the authority to make grants to
Chitina Native Corporation and AHTNA Native Corporation.
Accompanying explanatory language reads as follows.
This will move the appropriation for the Department of Natural
Resources to the Department of Transportation and Public
Facilities.
Co-Chair Wilken moved for adoption.
10:14:38 AM
Ms. Blaisdell explained the amendment consists of an appropriation
to the Chitina fisheries program and intent language.
Co-Chair Green furthered that it was discovered that the funds
should be appropriated through the Department of Transportation and
Public Facilities rather than the Department of Natural Resources
to allow for proper management of the project.
The amendment was ADOPTED without objection.
AT EASE to 10:28:54 AM
10:28:56 AM
Amendment #98: This amendment inserts a new Academy Charter School
Gym Construction (HD 13-16) component and $2,500,000 general fund
appropriation to the Grants to Named Recipients (AS 37.05.316)
Budget Request Unit (BRU) on page 4, following line 12.
Co-Chair Wilken moved for adoption.
Co-Chair Green informed that this project was inadvertently
excluded from the legislation.
There was no objection and the amendment was ADOPTED.
AT EASE 10:29:35 AM / 10:30:05 AM
Co-Chair Green announced directive to the Division of Legislative
Finance to insert an effective date of July 1, 2005. Otherwise the
provisions of this legislation would not become effective until 90
days after signature by the governor.
AT EASE
10:30:57 AM
Co-Chair Wilken offered a motion to report CS SB 46, 24-GS 1074\P
Amended, as amended, with individual recommendations.
There was no objection and 2d CS SB 46 (2d FIN) MOVED from
Committee.
10:31:27 AM
SENATE BILL NO. 97
"An Act making supplemental, capital, and other
appropriations, and reappropriations; amending appropriations;
making appropriations to capitalize funds; making an
appropriation under art. IX, sec. 17(c), Constitution of the
State of Alaska, from the constitutional budget reserve fund;
and providing for an effective date."
This bill had been previously heard in the Senate Finance
Committee.
10:31:34 AM
GINGER BLAISDELL, Staff to Co-Chair Green, informed this
legislation is the original "slow track" FY 05 supplemental
appropriation legislation. The version of SB 46 that the Senate
Finance Committee initially reported from Committee merged
supplemental appropriations with the FY 06 capital budget. The
supplemental appropriations have been eliminated from the capital
budget legislation and would be addressed separately in this bill.
With few exceptions, all provisions of this bill have an FY 05
effective date.
Ms. Blaisdell continued that this bill also includes appropriations
for all the school projects originally included in SB 155. The
funding source would not be general funds, but rather revenues from
bonds issued from the commonly referenced Amerada Hess settlement
account included in the Alaska Permanent Fund. She noted that
school projects recommended by members of the House of
Representatives had been included in the original Senate Finance
committee substitute for SB 46, but are not included in this
version.
AT EASE 10:33:20 AM / 10:34:35 AM
AT EASE
11:00:43 AM
Co-Chair Wilken offered a motion to adopt CS SB 97, 24-GS1076\G
Amended, as a working document.
11:01:09 AM
Ms. Blaisdell explained the Section 1 pertains to school and
education projects originally included in SB 155 before that bill
was amended. These projects are scheduled to be paid from Amerada
Hess bond proceeds. She directed attention to the marked out
language on page 13, stating this is duplicated language. The
maintenance projects were itemized for the benefit of bond
purchasers.
11:02:19 AM
Ms. Blaisdell stated that Section 6 contains the FY 05 supplemental
appropriations approved by the Committee in an earlier version of
SB 46. No changes have been made to these appropriations with the
possible exception of the $2,693,700 general fund appropriation for
fuel costs of the Alaska Marine Highway System.
11:03:25 AM
Ms. Blaisdell concluded by noting that the language from page 15
through the end of the bill was contained in the version of SB 46
that was originally reported from Committee. This language
primarily relates to FY 05 effective dates for other provisions in
the bill.
11:03:52 AM
Co-Chair Green clarified that the school projects would be funded
with bond proceeds guaranteed by the Amerada Hess settlement.
11:03:58 AM
Ms. Blaisdell affirmed.
11:04:02 AM
Co-Chair Green noted that an amendment [Amendment #2] would be
offered to replace the marked out language of Section 9. Alaska
Court System., on page 16 lines 22 - 24. That language reads as
follows.
Sec. 9. ALASKA COURT SYSTEM. The sum of $140,000 is
appropriated from the general fund to the Alaska Court System,
trial courts for the Matanuska-Susitna drug court position for
the fiscal years ending June 30, 2005 and June 30, 2006.
There was no objection and the committee substitute was ADOPTED as
a working document.
11:04:26 AM
Amendment #1: This amendment inserts a new subsection to Section 6.
DEPARTMENT OF ADMINISTRATION., on page 15, following line 26 to
read as follows.
(g) The sum of $770,000 is appropriated to the Department
of Administration, Public Defender Agency, for the operating
costs of the agency for the fiscal year ending June 30, 2005,
from the following sources in the amounts stated:
General Fund $725,100
General Fund/Program Receipts 24,900
Statutory Designated Program Receipts 20,000
It is the intent of the legislature that the Department of
Administration will work with the Alaska Court System to
review indigency requirements to ensure that only those that
are truly eligible receive public council through the Public
Defender Agency or the Office of Public Advocacy. The
Department of Administration shall report to the legislature
any recommended changes by February 15, 2006.
It is the intent of the legislature that if the Public
Defender Agency or the Office of Public Advocacy become aware
that a client is not indigent, that they move to withdraw from
the case.
Accompanying explanatory language reads as follows.
The increase for the Public Defender Agency is $250,000
(originally passed as $520,000 general funds) due to the
caseload and the statutory requirement to defend those cases
it is assigned by the courts. Reducing supplemental funding
could cause the Public Defender Agency to cease operations
before the end of the FY 06 fiscal year and be non-compliant
within the law.
The intent language provides guidance to the Department of
Administration to review the cases assigned to the Public
Defender Agency for client asset values and indigency.
Currently, approximately 80 % of court cases are tried using
public defenders.
Co-Chair Wilken moved for adoption.
11:04:34 AM
Ms. Blaisdell pointed out subsection (d) of Section 6, on lines 13
- 18 of the committee substitute is identical to the language of
this amendment; however, it provides less funding for the Public
Defender Agency. This amendment adds $50,000 general funds. If this
increase were not provided, the Agency would be required to
significantly reduce or stop providing some services.
11:05:33 AM
Co-Chair Green offered a motion to amend the amendment to delete
Section 6 (d) and replace it with the language of the amendment.
11:06:53 AM
Ms. Blaisdell read the intent language into the record.
11:07:38 AM
Co-Chair Green relayed that she has heard reports that some
defendants receiving services from the Public Defender Agency did
not qualify for those services. This decreases the availability of
services to those who do qualify.
There was no objection and the Amendment #1 was AMENDED.
The amendment as amended was ADOPTED without objection.
11:08:18 AM
Amendment #2: This amendment inserts two subsections to Section 7.
Department of Commerce, Community and Economic Development., on
page 16, following line 12 to read as follows.
(d) The sum of $70,000 is appropriated from the general
fund to the Department of Commerce, Community and Economic
Development, division of community advocacy, for payment as a
grant under AS 37.05.315 to the City of Palmer for partial
funding for a drug enforcement position for the fiscal years
ending June 30, 2005 and June 30, 2006.
(e) The sum of $70,000 is appropriated from the general
fund to the Department of Commerce, Community and Economic
Development, division of community advocacy, for payment as a
grant under AS 37.05.315 to the City of Wasilla for partial
funding for a drug enforcement position for the fiscal years
ending June 30, 2005 and June 30, 2006.
Accompanying explanatory language reads as follows.
The appropriation was originally passed in SB 46 as an
appropriation to the Alaska Court System but should have been
a grant to a municipality under AS 37.05.315.
Co-Chair Wilken moved for adoption.
11:08:24 AM
Co-Chair Green noted the net zero impact of this amendment, given
the deletion of the appropriation contained in Section 9. A
misunderstanding was the cause of the original appropriation made
to the drug court, rather than drug enforcement positions.
There was no objection and the amendment was ADOPTED.
11:09:07 AM
Amendment #3: This amendment inserts a new subsection to Section
25. Department of Transportation and Public Facilities., on page
26, following line 18 to read as follows.
(u) The sum of $62,500,000 is appropriated from the
general fund to the Department of Transportation and Public
Facilities for the following projects in the amounts stated,
subject to reallocation among the projects under AS
37.07.080(e):
PROJECT AMOUNT
McCarthy Road, major maintenance $2,000,000
Denali Borough, Stampede Road Improvements 5,000,000
Fairbanks, Richardson Highway northbound 3,500,000
Chena overflow bridge for gas pipeline
DeLong Mountain, port expansion EIS 2,000,000
completion
North Slope, Foothills West Road EIS 4,000,000
North Slope, Bullen Point EIS 5,000,000
Dalton Highway, surfacing upgrades 9,000,000
Dalton Highway, Washington Creek Bridge 3,500,000
Richardson Highway, highway passing lanes, 7,500,000
Milepost 265-341
Richardson Highway, Shaw Creek Bridge 2,500,000
Kenai Peninsula, Kalifornsky Beach Road 11,000,000
rehabilitation
Industrial roads 3,500,000
Cordova: Copper River Highway 4,000,000
rehabilitation
Accompanying explanatory language reads as follows.
These projects were originally requested by the Governor for
Roads to Resources and were included in SB 46 as funded by
AMHESS [Amerada Hess settlement] interest earnings. These
projects will now be funded from the FY 05 general fund
projected lapse.
Co-Chair Wilken moved for adoption.
11:09:15 AM
Ms. Blaisdell explained the initial intent to utilize interest
earnings to repay bonds guaranteed from the Amerada Hess settlement
account of the Alaska Permanent Fund. This amendment proposes
utilizing higher than anticipated revenues from FY 05 deposited to
the general fund.
Ms. Blaisdell suggested miner changes to the language of this
amendment that would assist agencies in undertaking these projects:
"or bypass" inserted in the Fairbanks, Richardson Highway
northbound Chena overflow bridge for gas pipeline project; and "and
community access" inserted in the Industrial roads project. The
amended amendment would read as follows.
(u) The sum of $62,500,000 is appropriated from the
general fund to the Department of Transportation and Public
Facilities for the following projects in the amounts stated,
subject to reallocation among the projects under AS
37.07.080(e):
PROJECT AMOUNT
McCarthy Road, major maintenance $2,000,000
Denali Borough, Stampede Road Improvements 5,000,000
Fairbanks, Richardson Highway northbound 3,500,000
Chena overflow or bypass bridge for
gas pipeline
DeLong Mountain, port expansion EIS 2,000,000
completion
North Slope, Foothills West Road EIS 4,000,000
North Slope, Bullen Point EIS 5,000,000
Dalton Highway, surfacing upgrades 9,000,000
Dalton Highway, Washington Creek Bridge 3,500,000
Richardson Highway, highway passing lanes, 7,500,000
Milepost 265-341
Richardson Highway, Shaw Creek Bridge 2,500,000
Kenai Peninsula, Kalifornsky Beach Road 11,000,000
rehabilitation
Industrial roads and community access 3,500,000
Cordova: Copper River Highway 4,000,000
rehabilitation
11:12:02 AM
The amendment was AMENDED and ADOPTED without objection.
11:12:54 AM
Amendment #4: This amendment inserts a new bill section on page 23,
following line 19 to read as follows.
Sec. 20. RURAL ELECTRIFICATION REVOLVING LOAN FUND.
Notwithstanding AS 42.45.020(g), the balance of the rural
electrification revolving loan fund (AS 42.45.020) on June 30,
2005, estimated to be $330,000, is appropriated to the
Department of Commerce, Community and Economic Development for
the electrical emergencies program.
Accompanying explanatory language reads as follows.
This is a supplemental appropriation for FY 05 so it is being
moved from SB 46 to SB 97.
Co-Chair Wilken moved for adoption.
11:12:58 AM
Ms. Blaisdell explained the transfer of this appropriation from the
capital budget legislation to this bill is intended to coordinate
the effective date.
There was no objection and the amendment was ADOPTED.
Amendment #5: This amendment inserts an Academy Charter School gym
Construction - Matanuska-Susitna Borough (HD 13-16) component on
page 9, following line 12 and appropriates $2,500,000 to that
component. The funding source was not specified.
This amendment was NOT OFFERED.
11:13:27 AM
Amendment #6: This amendment inserts a State BRAC (Base Realignment
and Closure Commission) Task Force component to the Office of the
Governor budget and appropriates $1,000,000 general fund to that
component. Accompanying explanatory language reads as follows.
On May 13,2005, the Department of Defense recommended to the
Base Realignment and Closure Commission (BRAC) that Alaska's
Air Force bases (Elmendorf and Eielson) be realigned, that
Kulis Air Guard Station be closed and that the Fort Richardson
Army Post in Anchorage also be realigned. It is estimated that
a loss of 4,700 jobs in the Fairbanks area alone may occur
with the realignment of Eielson Air Force Base.
Governor Murkowski has appointed a 15-member State BRAC Task
Force to help fight this devastating proposal and to convince
the BRAC to firmly reject the Department of Defense's
recommendation. The BRAC will present its final decision to
the United States Congress on September 8, 2005. It is
imperative that Alaska responds quickly.
Directly impacting communities are planning special meetings
to consider similar funding requests at the local level. The
Fairbanks North Star Borough is expected to put $500,000
toward the effort in an emergency meeting to be held this week
in Fairbanks.
Co-Chair Wilken moved for adoption.
11:13:32 AM
Co-Chair Wilken remarked that the recommendation of the closure of
the Kulis Air Guard Station was expected; however, the recommended
realignments of other military bases in Alaska were not
anticipated. He listed the number of jobs that would be eliminated
as a result of the proposed changes: 459 related to the closure of
the Kulis Air Guard Station; 934 from Elmendorf Air Force Base; 286
from Fort Richardson; 2,940 from Eielson Air Force Base. The
Governor and municipalities are "rallying to the cause" to present
the State's position to the BRAC Commission. The timeline is
limited. He was unsure if $1 million would be adequate for these
efforts, but emphasized that at least $500,000 would be necessary.
[A spreadsheet titled "BRAC Response Effort Budget" listing
projected expenditures of this appropriation and a $500,000 from
the Fairbanks North Star Borough, is on file.] He stressed the
importance to protect the status of these military bases and
prevent the loss of jobs
There was no objection and the amendment was ADOPTED.
11:16:26 AM
Amendment #7: This amendment inserts a new Dillingham Middle/High
School construction and renovation - Dillingham City Schools (HD
37) component on page 9, following line 26 and appropriates
$9,500,000 other funds to this component.
Senator Hoffman moved for adoption.
11:16:36 AM
Co-Chair Green informed that this project was inadvertently omitted
in the transfer of school projects from SB 46 to this bill.
Without objection the amendment was ADOPTED.
11:16:49 AM
Co-Chair Wilken offered a motion to report CS SB 97, 24-GS1076\G
Amended, as amended, from Committee with individual
recommendations.
11:17:12 AM
There was no objection and CS SB 97 (FIN) MOVED from Committee.
Recess to Call of the Chair 11:17:33 AM / 5:07:34 PM
ADJOURNMENT
Co-Chair Green adjourned the meeting at 05:07 PM
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