Legislature(2005 - 2006)SENATE FINANCE 532
04/26/2006 09:00 AM Senate FINANCE
| Audio | Topic |
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| Start | |
| SB231 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 231 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
MINUTES
SENATE FINANCE COMMITTEE
April 26, 2006
9:15 a.m.
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately
9:15:54 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Bert Stedman
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: PETE KELLY, Director, Government Relations,
University of Alaska; KATHRYN DAUGHHETEE, Director, Division of
Administrative Services, Department of Law; CRAIG TILLERY,
Deputy Attorney General, Civil Division, Department of Law;
SCOTT NORDSTRAND, Commissioner, Department of Administration;
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration; DOUG WOOLIVER, Administrative
Attorney, Office of the Administrative Director, Alaska Court
System; MCKIE CAMPBELL, Commissioner, Department of Fish and
Game; MAJOR GENERAL CRAIG CAMPBELL, Adjutant
General/Commissioner, Department of Military and Veterans
Affairs; CHRIS CHRISTENSEN, Deputy Administrative Director,
Office of the Administrative Director, Alaska Court System;
Attending via Teleconference: From an offnet location: MARK
HAMILTON, President, University of Alaska
SUMMARY INFORMATION
SB 231-BUDGET: CAPITAL & OTHER APPROPRIATIONS
The Committee heard from the University of Alaska, the
Department of Law, the Department of Administration, the
Department of Fish and Game, the Department of Military and
Veterans Affairs, and the Alaska Court System on requests for
projects affecting these departments. The bill was held in
Committee.
9:16:22 AM
SENATE BILL NO. 231
"An Act making appropriations, including capital
appropriations and appropriations to capitalize funds; and
providing for an effective date."
This was the fourth hearing for this bill in the Senate Finance
Committee.
A motion was made at a previous hearing to adopt CS SB 231, GS-
242034\F as a working document. However, no action was taken on
the motion.
9:16:35 AM
MARK HAMILTON, President, University of Alaska, testified via
teleconference from an offnet location to remind the Committee
that the Board of Regents focused its efforts on deferred
maintenance needs. Of $98 million in identified projects, the
legislature has appropriated an average of $7 million annually
in recent years, while appropriating an average of $20 million
for the construction of new facilities. The consistent lack of
funding for deferred maintenance projects has resulted in unmet
needs that are unacceptable.
9:18:49 AM
Mr. Hamilton noted the Small Business Development Center is
funded through the University's capital budget. The Center
performs functions important to small businesses statewide. The
requested $550,000 State funding would secure $2.1 million in
matching federal grants. This program arguably should not be
included in the University budget but is nonetheless important
and would assist the state in preparing for a potential economic
boom related to a natural gas pipeline.
9:20:11 AM
Mr. Hamilton next addressed science facilities. Funding to
construct an integrated science facility at the University of
Alaska, Anchorage campus has been requested for the past six
years. The project was partially funded in the FY 06 budget, and
the University is requesting the remaining funds necessary to
complete the project in FY 07.
Mr. Hamilton stressed that increased interest in science
programs and successful attraction of the "best and brightest"
Alaskan students through the Alaska Scholars program, many who
want to participate in biology and other sciences, has created a
need for more programs and expanded facilities. Currently, the
University is unable to meet the need.
9:21:44 AM
Mr. Hamilton continued speaking to the science facility needs
informing that the International Polar Year event occurs once
every 50 years and would next begin the following year. The
previous event included the creation of the Geophysical
Institute at the University of Alaska, Fairbanks campus. The
upcoming event would impact arctic research for the next 50
years. The University recently offered post-doctorate study
positions to 15 students worldwide after receiving 180
applications. The chosen scholars are "the best and the
brightest in arctic sciences" in the world.
Mr. Hamilton told of the opportunity, as the nation's arctic
research institution, to secure approximately $440 million in
federal grants. The non-general funds that the University
receives is "calculated on" the existing quality of programs and
facilities. The Fairbanks campus requires funding to maintain
the high quality of its science facilities.
9:24:07 AM
Mr. Hamilton noted that the proposed FY 07 capital budget
submitted by Governor Murkowski recognizes the need to address
deferred maintenance projects. However, if the legislature were
to decide to fund the construction of new facilities, those
facilities should be science related at both the Anchorage and
Fairbanks campuses.
9:24:43 AM
Co-Chair Green announced that many identified projects would be
funded with revenues generated from bonds issued on the State's
settlement of tobacco litigation. The integrated science
facility at University of Alaska, Anchorage is one such project;
however, the proposed facility for the Fairbanks campus is not
included.
9:25:22 AM
Co-Chair Wilken referenced a chart listing all identified
deferred maintenance needs from 1988 to present. He requested
this information be distributed to Members [copy on file.]
9:26:27 AM
Department of Law
KATHRYN DAUGHHETEE, Director, Division of Administrative
Services, Department of Law, testified that funding is needed
for additional judgments and claims rendered since the budget
was last updated. The proposed workdraft committee substitute
distributed prior to this hearing does not include the $3.67
million general funds and $2,800 non-general funds.
Ms. Daughhetee also requested an extension of the lapse date of
appropriations designated for oil and gas negotiations. Some
these efforts would be delayed into FY 07.
9:28:21 AM
CRAIG TILLERY, Deputy Attorney General, Civil Division,
Department of Law, testified to a request of $800,000 in two
separate appropriations for asserting a claim, if so decided, to
the Exxon Valdez oil spill settlement. Such action is known as a
"reopener" and relates to a condition of the original court
ruling allowing additional claims to address environmental
damage that could not have been anticipated at the time of the
original settlement. The requested funding would be utilized to
provide Exxon with a detailed list of projects. If Exxon
declines the opportunity to fund these projects, court action
would be likely.
Mr. Tillery emphasized that the Department has not yet
determined whether to assert additional claims.
9:31:25 AM
Co-Chair Green asked whether any of the requested funding is
included in the FY 06 supplemental appropriation legislation.
9:31:31 AM
Mr. Tillery responded that all the funding is requested to be
included in the FY 07 capital budget appropriation.
9:31:47 AM
Department of Administration
SCOTT NORDSTRAND, Commissioner, Department of Administration,
expressed appreciation for the indicated approval of funding for
requested projects, specifically the critical information
technology projects.
Mr. Nordstrand reminded that the Department requested $5.5
million for deferred maintenance projects. He understood the
changes made in the proposed workdraft committee substitute
would "request" that public building funds (PBF) rate source be
expended for these projects rather than general funds. The PBF
would require approximately three years to accumulate the amount
necessary to fund these projects. The issue of how much general
fund dollars should be appropriated for deferred maintenance
projects is a policy call.
9:34:13 AM
Mr. Nordstrand stated that the Department had requested
approximately $5.5 million for the Enterprise Technology
Services (ETS) Infrastructure CIP (capital improvement project).
The intent was to obtain additional funding from other
departments to assist in the projects, particularly the
conversion of all State systems to Microsoft software. The State
has entered into an enterprise agreement with Microsoft to
standardize and consolidate servers to gain efficiencies over
time. Evaluation of existing systems has identified additional
needs. Currently, an estimated $2 million in additional funding
would be required to accomplish the transitions.
9:35:15 AM
Mr. Nordstrand pointed out that the FY 06 supplemental
appropriation requests for the Office of Public Advocacy (OPA)
and the Public Defenders Agency (PDA) were not included in the
proposed committee substitute. Although the $217,000 needed for
the PDA is not a significant amount, the OPA requires $2.5
million. The latter amount would fund approximately one month of
operations and if not provided, the OPA would run out money in
May. The OPA has no control over the number of cases assigned to
it, nor does it have the option of settling cases if a client
does not want to. Situations must be avoided in which OPA
attorneys become so overburdened they make mistakes or leave for
other employment. Mistakes result in appeals of court decisions
and, when successful, require the OPA to begin the cases anew,
adding again to the workload.
Mr. Nordstrand thanked the Committee for funding case management
systems for the PDA, OPA and the Office of Administrative
Hearings. These systems would allow the agencies to increase
efficiencies.
9:37:58 AM
Mr. Nordstrand spoke to the need to replenish the Information
Services Fund with $23.3 million general funds.
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration confirmed the amount and stated the
intent to fund the capital ETS project.
9:38:43 AM
Alaska Court System
DOUG WOOLIVER, Administrative Attorney, Office of the
Administrative Director, Alaska Court System, testified that
$1.95 million requested for the replacement of the recording
system, a critical information technology project, is not
included in the proposed committee substitute distributed by Co-
Chair Green. This would fund the first of a two-phase project
and has been identified as the highest capital funding priority
for the Alaska Court System. Alaska is the only state that does
not rely on court stenographers to document court proceedings.
To employ the necessary 63 professionals would cost $4.5 million
annually. However, to ensure these savings, occasional equipment
upgrades are necessary. Incompatibility with other systems,
incomplete recordkeeping and recording malfunctions are problems
experienced with the existing system. The previous system
upgrade changed from cassette tapes to digital recordings. The
upcoming project is to upgrade software.
9:41:00 AM
Mr. Wooliver continued with the second critical information
technology project, an appellate case management system. The
current system no longer meets industry standards for
compatibility and security. The Alaska Court System requests
$1.3 million to upgrade the system.
9:41:46 AM
Department of Fish and Game
MCKIE CAMPBELL, Commissioner, Department of Fish and Game,
testified that the Department attempted to submit a "very
responsible request", and appreciated the Committee's response
to it. However, two needs were outstanding.
Mr. Campbell reminded of the $400,000 request for sonar system
units necessary to count fish more accurately in obscured or
cloudy waters. This funding is not included in the proposed
committee substitute due to Commercial Fisheries Entry
Commission (CFEC) "funding receipt issues" rather than
opposition to the project.
9:43:11 AM
Mr. Campbell then addressed funding reductions to the Western
Alaska Salmon Stock Identification Program (WASSIP) from an
original amount of $1.5 million to $500,000 and further reduced
to $200,000 in the proposed committee substitute. This program
is important, although not "easily scalable" to account for
lower funding levels. He was concerned that minimal operation of
the program would create expectations that the Department would
be unable to fulfill. Therefore, he requested the $200,000
general funds be appropriated to the aforementioned sonar
response system. This would allow for the purchase of two of the
four units. The Department would retain the federal funds
allocated to the WASSIP and attempt to secure additional funding
from other sources.
9:44:42 AM
Department of Military and Veterans Affairs
MAJOR GENERAL CRAIG CAMPBELL, Adjutant General/Commissioner,
testified that the Governor had requested a $7.5 million
appropriation for the Alaska Military Youth Academy, comprised
of $7 million federal funds and $500,000 general funds. This is
not included in the proposed committee substitute. The funding
would allow for the expansion of the Academy to include a
facility located in Interior Alaska and is a funding priority of
the Governor's. A site has yet to be selected and the $500,000
State funds would be utilized for site selection and planning.
The federal funds would be expended for renovation of the
existing facilities at the identified site. A new facility would
not be constructed.
9:46:26 AM
Co-Chair Green asked the funding source for this project in
future years.
9:46:34 AM
Major General Campbell responded that if a location were found,
an additional $5 million general funds would be requested to
supplant the $7 million federal funds. If a site were not
secured or if the selected site was not in compliance to qualify
for the federal funds, no further State funds would be
requested.
9:47:03 AM
Co-Chair Green asked the intention for funding operation of the
new facility.
9:47:07 AM
Major General Campbell acknowledged that staffing and operating
costs would increase once a second facility was added to the
Academy system. Education foundation funding formula monies
would be received based on the student population of the
previous year.
9:48:24 AM
Co-Chair Green asked the amount of federal funds that would be
secured with a $5 million State appropriation. She asked the
current match requirements governing federal allocations to the
existing Academy location at Fort Richardson in Anchorage.
9:48:47 AM
Major General Campbell stated he would provide this information.
9:48:54 AM
Senator Bunde remarked upon the "unfortunate" fact that this
program is relatively expensive to administer; however, it is
effective and possibly necessary. He attended the graduation
ceremony of one of the first classes to complete the program and
encountered "confident" young people making comments to the
effect of "We made it, we're not in jail and we got our GED
(general equivalency diploma)." Senator Bunde reiterated that
this program is costly, but asserted that housing inmates in
prisons is more expensive.
9:50:03 AM
Co-Chair Wilken expressed his support for the Academy. However,
he questioned the intent to distribute the program's efforts
across the state. Instead he asked why the existing facilities
would not be expanded to accommodate additional students while
utilizing the same centralized facilities such as the kitchens.
Before planning begins on the second facility the costs and
benefits must be analyzed as well as a determination made on
whether the Anchorage facility is "bursting at the seams."
9:51:31 AM
Major General Campbell respected Co-Chair Wilken's opinion on
this matter, but contended that the timing was right to develop
a second location in the Interior. The Academy is prohibited
from constructing new buildings at its current location near a
residential area. A large number of Interior at-risk youth are
not being served. Many who would otherwise enroll in the program
do not participate because they would be required to relocate to
the Anchorage area and away from their families and support
systems. A significant element to the program involves mentoring
and oversight after graduation.
9:53:36 AM
Senator Dyson identified with Co-Chair Wilken concerns. He asked
whether the characterization that the Alaska program is the best
of its kind in the nation was an exaggeration.
Major General Campbell responded this Academy consistently
receives national awards and is considered at least one of the
top programs.
9:54:26 AM
Senator Dyson asked if this is because the pool of students is
less at-risk than those in other states.
9:54:43 AM
Major General Campbell replied that challenged youth are present
in Alaska and face the same problems with drugs, crime, family
disputes and other issues as do young people across the country.
This is despite Alaska's lower population scattered over a large
area.
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 9:56:25 AM
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