Legislature(2005 - 2006)
05/01/2006 06:40 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB231 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 1, 2006
6:40 p.m.
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately
6:40:31 PM.
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: SENATOR TOM WAGONER; JOHN MACKINNON, Deputy
Commissioner of Highways and Public Facilities, Department of
Transportation and Public Facilities; JOAN BROWN, Chief Budget
Analyst, Office of Management and Budget, Office of the
Governor; CHERYL FRASCA, Director, Office of Management and
Budget, Office of the Governor; CHRIS CHRISTENSEN, Deputy
Administrative Director, Alaska Court System;
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 231-BUDGET: CAPITAL & OTHER APPROPRIATIONS
The Committee adopted a committee substitute and amendments. The
bill reported from Committee.
6:40:50 PM
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 sixth hearing for this bill in the Senate Finance
Committee. At the previous hearing a motion was made to adopt CS
SB 231, 24-GS2034\I, and an objection was made to that motion.
No further action was taken on the motion.
Co-Chair Green noted a new proposed committee substitute was
distributed to correct errors and omissions discovered since the
previous committee substitute was presented.
Co-Chair Wilken offered a motion to adopt CS SB 231, 24-
GS2034\L, as a working document.
Co-Chair Green objected for discussion purposes.
[NOTE: No further action was taken on this motion; it was
assumed that the committee substitute was adopted as a working
document.]
[NOTE: Unless otherwise noted, the following amendments were
offered to the previously offered committee substitute, Version
"I".]
6:42:16 PM
Department of Administration
ADMIN #1: This amendment to committee substitute Version "L",
increases from $1,518,000 to $2,568,000, the general fund
appropriation to the Legal and Advocacy Services Budget Request
Unit (BRU), Office of Public Advocacy component on page 97, line
18. Accompanying explanatory language reads as follows.
This amendment restores $1,050,600 general funds of the
supplemental requested for the Office of Public Advocacy
(OPA).
Costs have increased in FY 07 because caseload is
dramatically up. In FY 06, felony cases, the most expensive
for OPA to handle, are up 17% from the previous year and
over 50% since FY 03. Guardianship appointments are up over
12% in FY 06 from the previous year and over 29% since FY
03.
The funding is necessary to keep the Office of Public
Advocacy operating for the remainder of FY 06. If the
additional funding is not appropriated OPA would have to
close its doors for at least ten days in June and be unable
to pay contract attorney and other billings received in
June, July, and August for work performed in FY 06.
The lack of funding would also create another problem
because attorneys are not ethically allowed to withdraw
from a case unless authorized by the court. It is unlikely
the court would grant such motions. Accordingly, the state
would be exposed to contractual liability to OPA's
contractors, and wage and hour claims, as well as potential
claims under the federal Fair Labor Standards Act, for
staff required to work.
[NOTE: This amendment was submitted by the co-chair's staff
without a designated sponsor.]
Co-Chair Green corrected the original version of the amendment
to accurately state the page number of the committee substitute
in which the component is listed. She then moved for adoption.
Senator Dyson noted that this matter was addressed in the
Department of Administration budget subcommittee, of which he
served as chair. He supported the adoption of this amendment.
Co-Chair Wilken announced that he would support the amendment if
Co-Chair Green also supported it. However, he did not intend to
approve a supplemental appropriation if one was requested the
following legislative session.
Senator Dyson agreed that the intention is to limit the amounts
of supplemental funding appropriations. The Office of Public
Advocacy has made "noteworthy" efforts to reduce expenses and
improve efficiency.
The amendment was ADOPTED without objection.
6:44:00 PM
Department of Commerce, Community and Economic Development
COMMERCE #1: This amendment to Section 7 of the committee
substitute inserts a new Department of Commerce, Community and
Economic Development heading and a Community Assistance &
Economic Development BRU, Office of Economic Development
component on page 96 and appropriates $50,000 Statutory
Designated Program Receipts (SDPR) to that component.
Accompanying explanatory language reads as follows.
The authority to received and expend receipts is needed due
to the Office's co-hosting of the second annual Small
Business Conference in Anchorage in June. The U.S. HUD
Secretary and other high-ranking federal officials will be
attending. Conference costs will be paid for by
registrations and donations a statutory designated program
receipts (SDPR). The Office expects the total cost to be
$50,000.
[NOTE: This amendment was submitted by the co-chair's staff
without a designated sponsor.]
Co-Chair Green moved for adoption and read the explanatory
statement into the record.
Without objection the amendment was ADOPTED.
6:44:35 PM
COMMERCE #2: This amendment, sponsored by Senator Dyson, was
pulled from circulation and was NOT OFFERED. [Copy on file.]
COMMERCE #3: This amendment inserts a new Four Dam Pool Power
Agency: Swan Lake - Tyee Lake Intertie component to the Grants
to Named Recipients (AS 37.05.316) BRU, on page 4, lines 4 and 5
and appropriates $20 million to that component. Accompanying
explanatory language reads as follows.
Grant to be used for continued construction of the
Southeast Alaska Intertie and the transmission lines
connecting Swan Lake (Ketchikan) to Tyee Lake (Wrangell).
The Swan-Tyee Intertie is a major infrastructure project in
SE Alaska. This 57-mile project will interconnect the Lake
Tyee hydroelectric project south of Wrangell with the Swan
Lake hydroelectric facility near Ketchikan and is a
critical link of the SE Alaska Intertie Project that will
eventually interconnect all of SE Alaska into an electrical
grid. When completed, a primary transmission line will be
in place and operational from Ketchikan to Petersburg. This
will also set in motion the ability to begin exporting
surplus hydropower out of Alaska into Canada and the North
American grid.
Senator Stedman moved for adoption. He explained the benefits of
this project to the economy of the community of Ketchikan. The
intertie would be an extensive system in Southeast Alaska and
would allow small communities access to a more affordable energy
source.
Co-Chair Green objected to the motion.
6:46:01 PM
Senator Dyson asked if this intertie would connect to power
systems in British Columbia, Canada.
6:46:26 PM
Senator Stedman replied that the next phase of the project would
include three hydroelectric projects located at Thomas Bay north
of Petersburg, to link to the Swan Lake facility and continue
into the Bradfield Fjord to join the power grid in Canada. This
would allow for power exports through the North American grid.
It would also allow for the construction of a smaller submarine
cable between Metlakatla and Ketchikan, construction of a
facility at Mahoney Lake and eventual construction of a large
dam located on the eastern side of Baranof Island.
6:47:33 PM
Senator Bunde noted this amendment would provide partial funding
of the total cost of the project. He asked the plans of the next
phase and its estimated cost.
Senator Stedman answered that to date approximately $50 had been
expended and that approximately $50 million in additional
funding would be required to complete the project. The State has
invested funding for the Four Dam Pool "when it was divested"
but has made no other appropriations to the project.
Senator Stedman asserted that the appropriation requested in
this amendment would demonstrate to the Alaskan congressional
delegation that the State is contributing to the construction of
infrastructure in Alaska. This would better enable these
lawmakers to secure matching federal funding.
Senator Bunde surmised that this project would affect the three
communities of Ketchikan, Petersburg and Wrangell.
Senator Stedman affirmed that the current phase of the project
would affect these communities. The next phase would link the
power source to Canada. The community of Kake and others north
of Chatham Strait would next be affected. Ultimately, the system
would be connected with Juneau and a loop would be created in
Southeast Alaska. The timeframe of this project is 20 years.
Senator Bunde asked the population of Ketchikan.
Senator Stedman listed the current population of the Ketchikan
area and the remainder of Senate District A is approximately
30,000 residents. Approximately 4,000 residents live in
Petersburg and less than 2,000 residents live in Wrangell.
Senator Bunde commented to the request for $20 million to
benefit 60,000 people. He calculated the amount of generators
that could be purchased for this amount.
Co-Chair Green told of "information" and "goals" that the Four
Dam Pool Agency has been directed to address. A business plan,
"better performance" and organization must be established to
provide for reasonable rates. Appropriation of these funds would
be premature. She maintained her objection to the adoption of
the amendment.
Senator Stedman recognized past difficulties of the Four Dam
Pool Agency, due to "infighting" and geographical differences.
Because the project includes the island of Kodiak and the area
of Copper Valley, the unit is cumbersome to operate.
6:51:01 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman Senator Olson Senator Stedman
OPPOSED: Senator Bunde Senator Dyson Co-Chair Wilken Co-Chair
Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
COMMERCE #4: This amendment deletes the Juneau Access (HD 3-4)
component of the Transportation Initiative BRU, on page 82, line
33, and the $45 million general fund appropriation to that
component, and inserts a new Borough Formation Incentives
component to an unspecified BRU within the Department and
appropriates $45 million general funds to that component.
This amendment also inserts intent language to read as follows.
It is the intent of the legislature to encourage the
formation of home rule boroughs within the model borough
boundaries by awarding an incentive of $15 million dollars
to each of the first three applicants to file and complete
the borough formation process. These funds shall be
appropriated to the Department of Commerce, Community and
Economic Development.
Senator Hoffman announced that this amendment would be NOT
OFFERED.
COMMERCE #5: This amendment inserts a new Central Peninsula
Health Centers, Inc. - New Health Facility (HD 33) component to
the Grants to Named Recipients (AS 37.05.316) BRU on page 4,
lines 4 and 5 and appropriates $250,000 general funds to that
component. Accompanying explanatory language reads as follows.
This request will provide funds for a new facility to house
medical and behavioral health services. Central Peninsula
Health Center (CPHC) has been in the design stage for the
construction of a new $10.6 million facility. This request
will provide matching funds required of primary funding
sources.
Since opening for business, CPHC has increased health care
access to many people and continuously operated in the
black. In 2005, CPHC provided over 19,000 patient
encounters in its medical and dental centers. From an
initial federal grant of $650,000, CPHC has grown to a
budget of over $4 million in total revenues, while
maintaining the federal budget share at just over $1
million.
Co-Chair Green moved for adoption.
Senator Bunde requested an explanation of the amendment.
Co-Chair Green explained that this funding would allow for the
construction of a new health care facility. The federal
allocation primarily intended to fund the project require
$250,000 in matching funds.
The amendment was ADOPTED without objection.
COMMERCE #6: This amendment adds $44,500 general funds for a new
Copper River Native Corporation (CRNC) - Hudson Lake Healing
Camp component [presumably to the Grants to Named Recipients
BRU.] Accompanying explanatory language reads as follows.
This appropriation is for the purpose of rebuilding the
trail including bridges over the sunken tundra in order to
access the Camp during the summer. Presently they charter
with local floatplane companies to access the camp - due to
the impassible trails and washed out bridges.
Building/supplies would consist of storage shed, Chinking
(insulating) cabins, Extend insulated stovepipe, (2) new
outhouses @ $1,000 each. New flooring for five cabins,
underground wiring.
This amendment, sponsored by Co-Chair Green, at the request of
Senator Ralph Seekins, was NOT OFFERED.
COMMERCE #7: This amendment adds a new Rural Tele-health Network
(ARTN) component to an unspecified BRU and appropriates $1
million general funds to that component. Accompanying
explanatory language reads as follows.
This appropriation completes the funding for rural
hospitals ability to instantly electronically send x-rays
and other radiological images to off-site radiologists for
reading. Currently, these images are sent via mail, which
means a delay in providing treatment of illnesses and is
unacceptable in emergency instances.
Other funding sources:
$2 million - Denali Commission
$1 million - Rasmussen Foundation
$703,000 - M.J. Murdoch Trust
$300K - AK USDA Rural Development Office
$1.0 million - State of Alaska
This amendment, sponsored by Co-Chair Green, at the request of
Senator Ralph Seekins, was NOT OFFERED.
COMMERCE #8: This amendment, sponsored by Co-Chair Green "as
requested", was pulled from circulation and was NOT OFFERED.
[Copy on file]
COMMERCE #9: This amendment increases the general fund
appropriation to the Grants to Named Recipients (AS 37.05.316)
BRU, Tongass Coast Aquarium, Inc. Project Development (HD 1)
component on page 15, lines 24 through 26, from $1 million to $2
million. Accompanying explanatory language reads as follows.
The Governor originally requested $5,000,000 general funds
for this economic development project in his capital Budget
request. This amendment restores $1,000,000 of the
$4,000,000 that was removed in the committee process.
Senator Stedman outlined the explanatory statement. This
aquarium project would be integrated with education and research
and would facilitate the growth of the shellfish industry in
Southeast Alaska. This funding would be utilized for design of
the facility. Once the design is completed, the organization
could secure grant funding for the construction of the project.
Co-Chair Green reminded of the numerous testifiers who spoke in
support of this project.
Senator Stedman agreed. Identifying projects in which the
majority of a community could support is difficult. This is one
of those projects.
6:54:50 PM
Senator Bunde surmised this appropriation would be the first
portion of a $5 million project. He calculated the amount per
resident of Ketchikan to be $260,000. He considered this,
"pretty expensive fish watching."
Senator Bunde objected to the adoption of the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson, Senator Stedman, Co-
Chair Wilken and Co-Chair Green
OPPOSED: Senator Dyson and Senator Bunde
The motion PASSED (5-2)
The amendment was ADOPTED.
AT EASE 6:56:15 PM / 6:56:57 PM
COMMERCE #10: This amendment sponsored by Co-Chair Green "as
requested" was pulled from circulation and was NOT OFFERED.
COMMERCE #11: This amendment increases the general fund
appropriation to the Grants to Municipalities (AS 37.05.315),
City of Seward - Aluttiq Pride Shellfish Hatchery (HD 33-35)
component, on page 21 line 32 through page 22 line 1, from
$50,000 to $150,000. Accompanying explanatory language reads as
follows.
This will provide the funds necessary for the development
of King Crab and Cockle Seed Stocks.
This amendment sponsored by Co-Chair Green "by request" was NOT
OFFERED.
COMMERCE #12: This amendment, sponsored by Co-Chair Green "by
request" was pulled from circulation and was NOT OFFERED.
COMMERCE #13: This amendment adds a new Saint Mary's Training
Center Renovation (HD 39) component to the Grants to Named
Recipients (AS 37.05.316) BRU, and appropriates $1,927,500
general funds to that component.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson remarked that St. Mary's is the "most progressive"
community located along the Yukon River. It is a first class
city that collects property and sales taxes. Revenues from these
taxes are utilized to contribute to education expenses. The city
purchased a facility that formally served as a Catholic mission,
with the intent of creating a training center. Activities at the
training center would enhance the job skills of area residents
to allow them to secure seasonal employment in the construction
field and other fields.
Co-Chair Green asked if the facility also serves as a school.
Senator Olson replied that it was originally a school.
Senator Olson furthered that a first class city is responsible
for operating its schools. The plans for this facility would
also include a technical training center.
Senator Bunde asked if the funds would be utilized to purchase
or renovate the building.
Senator Olson responded that the city has ownership of the
building and surrounding property. The requested funds would
allow for renovation.
Senator Bunde asked the purchase price of the facility.
Senator Olson answered that the total cost of the project is
$3.8 million.
7:00:00 PM
Senator Bunde announced that because the community of St. Mary's
contributes financially to local education costs, he would
support adoption of the amendment.
Senator Olson reiterated that this community is the most
progressive city on the Yukon River.
7:00:39 PM
Senator Dyson restated Senator Bunde's question asking the
purchase price of the facility.
Senator Olson clarified that the city expended $2.7 million to
purchase the property and the building.
Senator Dyson asked the percentage of the $1.9 million requested
in this amendment would be utilized for renovation.
Senator Olson answered "a major portion" of the amount is
intended for renovation of the facility.
Senator Dyson asked the population of St. Mary's.
Senator Olson reported the population at 840 residents. However,
the facility would not only train residents of St. Mary's, but
would benefit all residents of the Yukon and Kuskokwim river
delta.
Senator Dyson understood this request does not include funding
for operating expenses of the first year.
Senator Olson affirmed.
Senator Bunde requested that this amendment be set aside to
await additional information that Senator Olson indicated would
become available.
Co-Chair Green agreed. She cautioned that this center, with its
residential housing, could become cumbersome in future years.
While, "the dreams are admirable", she expressed concern about
"expanded costs over the years."
Co-Chair Green ordered the amendment HELD in Committee. The
amendment was reconsidered later in this meeting.
Senator Olson acknowledged the concerns about ongoing costs of
this facility. However, the community has demonstrated its
ability to undertake the project. He declared the residents of
St. Mary's include "some of the more enlightened people I've
seen within the rural population."
Senator Olson indicated he would distribute documentation of the
plans that St. Mary's has developed.
7:03:33 PM
COMMERCE #14: This amendment adds $375,000 general funds to the
Grants to Named Recipients (AS 37.37.05.316) BRU, Life Alaska
Donor Services - Building Purchase and Remodel (HD 17-32)
component on page 11, lines 22 through 24. Accompanying
explanatory language reads as follows.
This would be a legislative match to the Governor's request
bringing the total to $750,000. This is a grant to purchase
and remodel the first floor of the Ann Stevens Building to
provide additional office space and donor recovery
facilities for Life Alaska Donor Services and the American
Red Cross.
Life Alaska was founded in 1991 and has supplied thousands
of tissues for transplantation to Alaska Patients. Life
Alaska is committee to Alaskan donor families while
striving to meet the transplant needs for all Alaska. More
than one-third of all Alaskans (233,888) have registered to
donate tissues and organs, and Life Alaska has recovered
tissues for transplant from Barrow to Ketchikan. Life
Alaska operates 24 hours a day to discuss potential donor
suitability, bereavement support, critical incident stress
debriefing, tissue transplantation, and their donor program
in Alaska. Alaskan patients and physicians who are awaiting
transplant tissues are given priority basis through Life
Alaska's tissue distribution process. In 2005, Life Alaska
had 178 donors and provided tissue to almost 700 Alaskans.
Life Alaska operations are spread across 4 locations and
the organization will soon lose its recovery facility.
Hospital space is frequently unavailable and is
prohibitively expensive. Life Alaska has outgrown their
leased facilities and needs a larger space for both office
and donor recovery procedures. Total project costs are $1.8
million with half to come from foundation grants and
private fundraising.
Senator Bunde moved for adoption.
Co-Chair Green objected.
Senator Bunde told of the current challenges of harvesting
tissue and organs from donors who expire in a location other
than a hospital. Governor Murkowski deemed this project worthy
and included one-half the necessary funding in his proposed
capital budget with a challenge to the legislature to approve
that amount as well as the remaining cost.
Co-Chair Green calculated the Governor's requested amount of
$375,000, which is included in the committee substitute, plus
the $375,000 proposed in this amendment.
Senator Olson spoke in favor of the amendment. This project
would benefit the efforts of harvesting organs.
7:05:43 PM
Senator Bunde outlined the total cost of the project and the
other funding sources as described in the explanatory statement.
Co-Chair Green removed her objection to the adoption of the
amendment.
There was no further objection and the amendment was ADOPTED.
COMMERCE 15: This amendment adds a new Life Alaska Donor
Services - Organ Donor Program component, to the Grants to Named
Recipients (AS 37.05.316) BRU, on page 4, lines 4 and 5, and
appropriates $30,000 general funds to that component.
Accompanying explanatory language reads as follows.
Funds from one-dollar donation form driver's license
renewal for anatomical gift awareness fund.
This is money has been collected by the Department of Motor
Vehicles through voluntary donations to the organ donor
awareness fund created under (AS 13.50.160). This money has
been collected but no mechanism to get the money to Life
Alaska Donor Services. This Grant will give 30,000 of the
35,000 in the fund to promote organ donor awareness under
AS 37.05.316.
Senator Bunde moved for adoption.
Co-Chair Green objected.
Senator Bunde explained the option given to those renewing their
driver's license to donate one dollar toward increasing
awareness of the organ donor program. Collected funds to date
total $35,000 and have been deposited to the general fund.
However, authorization is necessary for expenditure of these
funds for their intended purpose. This amendment would provide
that ability.
Co-Chair Green removed her objection.
The amendment was ADOPTED without further objection.
COMMERCE #16: This amendment adds $75,000 general funds to the
Grants to Named Recipients (AS 37.05.316) BRU, American Red
Cross of Alaska - Debt Retirement (HD 17-32) component on page
5, lines 11 through 13. Accompanying explanatory language reads
as follows.
The Red Cross provides relief to victims of disasters
throughout the state and helps Alaskans prevent, prepare
for, and respond to emergencies. It provides extensive
services to military families. In 2005, more than one in
four Alaska families used a Red Cross service.
The Alaska Red Cross is in the process of repaying its 20-
year Alaska Industrial Development and Export Authority
debt, which creases an onerous financial burden that
undermines its life-saving mission.
The Governor's request is for $75,000. This request
anticipated a legislative match, brining the total to
$150,000. I would like to help them retire their debt
sooner and be able to use their other financial resources
for the true purpose of their life-saving mission.
Senator Bunde moved for adoption.
Co-Chair Green objected.
Senator Bunde overviewed the explanatory statement. The American
Red Cross operations would be located at the same facility as
the Life Alaska Donor Services organization.
Co-Chair Green removed her objection.
Without further objection the amendment was ADOPTED.
7:09:23 PM
COMMERCE #17: This amendment adds a new Juneau Family Birth
Center (HD 3-4) component to the Grants to Named Recipients (AS
37.05.316) BRU on page 4 lines 4 and 5, and appropriates
$300,000 general funds to that component. [Accompanying
explanatory statement is on file.]
Co-Chair Green announced that this amendment, which she
sponsored "as requested", would be NOT OFFERED.
7:09:49 PM
COMMERCE #18: This amendment adds a new Arctic Winter Games Team
Alaska (HD 1-40) component to the Grants to Named Recipients (AS
37.05.316) BRU on page 4, lines 4 and 5, and appropriates
$250,000 general funds to that component.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson explained that Arctic Winter Games were
successfully held recently in Kenai. Yellowknife, Northwest
Territories, Canada, is the site of the next games. This funding
would be utilized toward Team Alaska's attendance at those
games.
Senator Olson informed that $200,000 was raised from the private
sector for the games held in Kenai.
Senator Bunde commented to the differences between "wants and
needs". This funding would be better spent elsewhere.
7:11:41 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Dyson, Senator Olson and
Senator Stedman
OPPOSED: Senator Bunde, Co-Chair Wilken and Co-Chair Green
The motion PASSED (4-3)
The amendment was ADOPTED.
7:12:13 PM
COMMERCE #19: This amendment adds a new Southeast Alaska Dive
Fisheries Association (SARDFA) - Geoduck Fisheries Development
Grant component to the Grants to Named Recipients (AS 37.05.316)
BRU on page 4, lines 4 and 5 and appropriates $150,000 general
funds to that component. Accompanying explanatory language reads
as follows.
Grant to be used for the development of the geoduck
fishery. Funding to be used to increase surveying in the
geoduck fishery in order to analyze and update guideline
harvest levels (GHL). A portion of the grant will also be
used for a paralytic shellfish poison (PSP) monitoring
program.
The geoduck fisherman approved a self-assessment (tax) of
5% in 1999 and raised this assessment to the maximum under
AS 43.76.150(e) of 7% in 2004. The geoduck industry intends
to pay its way, however, the industry needs temporary
assistance in order to reach its developmental potential.
Senator Stedman moved for adoption.
Co-Chair Green objected.
Senator Stedman overviewed the explanatory statement. This
funding would be utilized to assist the Department of Fish and
Game in developing a new fishery.
Co-Chair Green questioned the inclusion of this appropriation in
the budget of the Department of Commerce, Community and Economic
Development.
7:13:52 PM 7:14:20 PM
Senator Stedman explained that the funding would "funnel
through" the Department of Commerce, Community and Economic
Development. The undertaking of these efforts could create a new
fish industry.
Co-Chair Green maintained her objection.
7:15:01 PM
Senator Dyson recalled that in 1999, these fishermen approached
the legislature and requested they be taxed to benefit the
Department of Fish and Game.
Co-Chair Green pointed out that the Association is again
requesting funding in 2006, which demonstrates that the existing
system is flawed.
7:15:40 PM
A roll call was taken on the motion.
IN FAVOR: Senator Stedman, Senator Dyson and Senator Olson
OPPOSED: Senator Bunde, Senator Hoffman, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
7:16:09 PM
COMMERCE #20: This amendment adds a new Alaska Small Hospital
and Nursing Home Association - ARTN Project (HD 1-40) component
to the Grants to Named Recipients (AS 37.05.316) BRU on page 4
lines 4 and 5, and appropriates $1 million general funds to that
component.
Senator Olson moved for adoption.
Co-Chair Green and Senator Bunde objected.
Co-Chair Green asked if this is the project in which a doctor
provided public testimony to the Committee.
Senator Olson affirmed and explained this project would benefit
communities that do not have a radiologist on staff at the local
health facility. Upon implementation, x-rays could be
transmitted to radiologists in other locations for diagnosis.
7:17:20 PM
Senator Olson continued speaking to the importance of this
service. He supported an appropriation of $1 million by the
State to match the $4 million generated from the Rasmussen
Foundation, the Denali Commission, the Murdock Trust, and the
U.S. Department of Agriculture, Rural Development Office.
Co-Chair Green understood that "ongoing" appropriations would
not be requested of the State. She was impressed with the number
of areas that would be served by this program.
Co-Chair Green withdrew her objection.
Senator Bunde questioned the cost of $1 million for the services
of one radiologist.
Senator Olson explained that the funding would be utilized to
establish infrastructure that would allow rural hospitals to
transmit x-ray films for review by a radiologist located
elsewhere. The current method involves mailing films to a
radiologist. Under the new system, the images would be
transmitted electronically via satellite to a central location.
Co-Chair Green recalled public testimony on this issue informing
that some service providers that currently review transmitted
films would cease this service because the quality of
transmission is poor.
Senator Olson clarified that some small hospitals would attempt
to transmit the images via facsimile. Details are difficult to
discern from the black and white images, especially if those
images were received from a facsimile.
Senator Bunde supported telemedicine as an alternative to
transporting patients. He asked if this funding would be
utilized to purchase equipment to transmit and receive the x-
rays.
Co-Chair Green affirmed, noting that such a system would allow
for faster diagnostic.
Senator Olson reported that diagnostics could be received
"within minutes".
Senator Bunde withdrew his objection to the adoption of the
amendment.
Without further objection the amendment was ADOPTED.
7:20:32 PM
COMMERCE #21: This amendment increases the general fund
appropriation to the Grants to Named Recipients (AS 37.05.316)
BRU, Ice Alaska - Ice Park, Facilities, Event (HD 7-11)
component on page 10 following line 19, from $1.1 million to $2
million. Accompanying explanatory language reads as follows.
This amendment fully funds the Ice Alaska project. The
committee substitute (version I) erroneously contained
$200,000 for this project.
Co-Chair Wilken moved for adoption.
Senator Bunde objected.
Co-Chair Wilken told of the active group which has established a
world classic ice festival. The festival is in need of a better
facility. This issue received extensive public testimony
supporting the funding.
Senator Bunde commented that requests had been made to limit the
amount of the FY 07 capital budget appropriation.
7:23:11 PM
A roll call was taken on the motion.
IN FAVOR: Senator Stedman, Senator Dyson, Co-Chair Wilken and
Co-Chair Green
OPPOSED: Senator Hoffman, Senator Olson and Senator Bunde
The motion PASSED (4-3)
The amendment was ADOPTED.
COMMERCE #22: This amendment, sponsored by Co-Chair Green "by
request", was pulled from circulation and was NOT OFFERED. [Copy
on file]
COMMERCE #23: This amendment, sponsored by Co-Chair Green "as
requested" was pulled from circulation and was NOT OFFERED.
[Copy on file]
COMMERCE #24: This amendment, sponsored by Co-Chair Green "as
requested", was pulled from circulation and was NOT OFFERED.
[Copy on file]
COMMERCE #25: This amendment adds a new Ketchikan Gateway
Borough - White Cliff School Redevelopment Project Site
Preparation, Abatement and Construction component to the Grants
to Municipalities (AS 37.05.135) BRU on page 16, line 33, and
appropriates $1 million general funds to that component.
Accompanying explanatory language reads as follows.
Funding for the redevelopment of historic White Cliff
School into a multiuse community center in Ketchikan. The
center will provide space for arts organizations, a
theater, dance studios, visual arts studios, gallery space
and a senior center.
7:24:05 PM
Senator Stedman moved for adoption.
Co-Chair Green objected.
Senator Stedman told of the plans to redevelop the former
school.
Co-Chair Green maintained her objection.
Senator Bunde declared a conflict of interest, as his wife had
attended White Cliff School.
7:25:29 PM
A roll call was taken on the motion.
IN FAVOR: Senator Stedman, Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator Dyson, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
7:26:02 PM
COMMERCE #26: This amendment adds a new section to the bill to
read as follows.
Sec. A. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. The sum of $35,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.315 to the municipality of Anchorage for a traffic
impact analysis of the Old Glenn Highway/Monte Road
intersection for the fiscal year ending June 30, 2007.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson informed that the local chamber of commerce had
requested this traffic study. Monte Road is steep and intersects
at the bottom of a hill with the Old Glenn Highway. Several
accidents have occurred as a result vehicles sliding on ice and
unable to come to a stop.
Co-Chair Green commented that generally an appropriation of
$35,000 would be acceptable. However, this amount should be
secured from the "tens of millions" that would be appropriated
for the road system in this community.
Senator Dyson shared a perception of residents of the Chugiak
and Eagle River area that they are the "poor country cousins
that don't do well" in receiving funding from the Anchorage
Metropolitan Area Transportation Solutions (AMATS) program. The
need for this traffic study has been identified for some time.
7:27:45 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson, Senator Bunde and
Senator Dyson
OPPOSED: Senator Stedman, Co-Chair Green and Co-Chair Wilken
The motion PASSED (4-3)
The amendment was ADOPTED.
7:28:22 PM
COMMERCE #27: This amendment adds a new section to the bill to
read as follows.
Sec. A. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. The sum of $450,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.315 to the Municipality of Anchorage for expenses
related to relocation of the Camp Fire USA Alaska Council
to a new facility in Mountain View, Anchorage, Alaska.
Senator Dyson announced that this amendment would be NOT
OFFERED.
[NOTE: This amendment was reconsidered later in this hearing.]
7:28:50 PM
COMMERCE 28: This amendment adds a new Alaska Native Heritage
Center Expansion and Improvements (HD 50) component to the
Grants to Named Recipients (AS 37.05.316) BRU on page 4 line 4,
and appropriates $250,000 general funds to that component.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson remarked upon the Alaska Native Heritage Center
efforts of preserving Native culture as well as serving as a
tourist attraction.
Co-Chair Green contended that funding for this project could be
secured from multiple other sources.
7:29:57 PM
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Senator Hoffman, Senator Olson and
Senator Stedman
OPPOSED: Senator Bunde, Co-Chair Wilken and Co-Chair Green
The motion PASSED (4-3)
The amendment was ADOPTED.
7:30:24 PM
COMMERCE #29: This amendment inserts a new bill section, with an
effective date of July 1, 2006, to read as follows.
Sec. X. (a) The sum of $300,000 is appropriated from
the general fund to the Department of Commerce, Community
and Economic Development for payment as a grant under AS
37.05.316 to the Fairbanks Resource Center for Parents and
Children for the Phoenix Pilot Project to provide support
and intervention services to families with children
prenatal to age 10 who are identified at-risk by the
department, medical providers, and local community service
providers.
(b) The sum of $300,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.316 to Catholic Community Services of Juneau for the
Phoenix Pilot Project to provide support and intervention
services to families with children prenatal to age 10 who
are identified at-risk by the department, medical
providers, and local community service providers.
This amendment, sponsored by Co-Chair Green "as requested" was
NOT OFFERED.
7:30:37 PM
COMMERCE #30: This amendment inserts a new bill section to read
as follows.
Sec. A. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. (a) The sum of $5,000,000 is appropriated from
the general fund to the Department of Commerce, Community
and Economic Development for payment as a grant under AS
37.05.316 to Agrium U.S., for the Phase II Development Plan
of the Kenai Coal Gasification project.
(b) It is the intent of the legislature that Agrium
U.S. Inc., repay the grant to the State of Alaska with
interest if, at the completion of Phase II, the engineering
and fiscal analysis recommendations are to proceed with the
complete project.
Co-Chair Green moved for adoption and objected.
Co-Chair Green informed that she offered this amendment at the
request of Senator Tom Wagoner.
7:31:30 PM
SENATOR TOM WAGONER testified that this appropriation would be
utilized to determine the feasibility of using coal and coal
gasification for feed stock. United States Senator Ted Stevens
suggested this project, which could receive a grant from the
federal Department of Energy. The State funding is needed in a
timely manner.
7:34:41 PM
Senator Bunde asked how the feasibility would be determined and
who would make that decision.
Senator Wagoner responded that the project would be well defined
before the funding was allocated. This would be a major project.
Senator Bunde contended that the grant contract should specify
terms and conditions.
Senator Wagoner assured this would occur and that efforts are
underway to determine the appropriation contract language.
AT EASE 7:36:25 PM / 7:39:46 PM
Co-Chair Green expressed concern that this appropriation is
intended to support a private entity. She preferred an
alternative funding mechanism.
Senator Wagoner agreed somewhat to this argument, but also
challenged that the State provides tax credits to oil companies
for similar projects. Although the proposed appropriation would
not be a tax credit, it would be a grant that would eventually
become a loan.
Senator Wagoner told of the "state-of-the-art" technology
involved in this project. Several plants are under construction
in China and other countries are also considering similar
projects. If a plant were constructed in Alaska, the economy of
the Kenai Peninsula area would benefit.
Co-Chair Green maintained her objection.
7:41:55 PM
A roll call was taken on the motion.
IN FAVOR: Senator Stedman, Senator Hoffman, Senator Stedman
Senator Dyson and Senator Bunde
OPPOSED: Co-Chair Wilken and Co-Chair Green
The motion PASSED (5-2)
The amendment was ADOPTED.
7:42:22 PM
COMMERCE #27: This amendment adds a new section to the bill to
read as follows.
Sec. A. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT. The sum of $450,000 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.315 to the Municipality of Anchorage for expenses
related to relocation of the Camp Fire USA Alaska Council
to a new facility in Mountain View, Anchorage, Alaska.
Senator Dyson announced that his earlier withdrawal of this
amendment was made in error.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson stated that this appropriation would allow the
organization to relocate to a new facility. Were this amendment
to fail to be adopted, he would request the Committee determine
an appropriate funding amount.
Co-Chair Green recalled that the previous legislative session,
the Committee was informed that additional funding would not be
requested from this entity.
Senator Bunde questioned the need for "half a million dollars"
for moving expenses. He asked if the facility was incomplete.
Senator Dyson was not aware of the details of this request.
7:44:30 PM 7:45:31 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Dyson and Senator Olson
OPPOSED: Senator Stedman, Senator Bunde, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
7:46:04 PM
Department of Education and Early Development
EDUC #1: This amendment inserts a new bill section to read as
follows.
Sec. A. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
SCHOOL CONSTRUCTION GRANT FUND. The sum of $547,178,836 is
appropriated from the general fund to the school
construction grant fund (AS 14.11.005) for payment by the
Department of Education and Early Development as grants to
the following school districts for the following school
projects in the following amounts:
PROJECT AMOUNT
(1) Anchorage - Service High School $3,788,005
phase 3 construction and phase 4
design (HD 19-32)
(2) Anchorage - Romig Middle School 1,675,407
renovation design (HD 19-32)
(3) Anchorage - West High School 1,126,230
renovation design (HD 19-32)
(4) Anchorage - Whaley Center 363,300
renovation design (HD 19-32)
(5) Bering Strait - St. Michael K-12 22,488,568
school replacement (HD 39)
(6) Bering Strait - Savoonga K-12 31,588,897
school improvement (HD 39)
(7) Copper River - Glennallen Elementary 11,417,650
School replacement (HD 12)
(8) Copper River - Copper Center 826,653
Elementary School addition (HD 6)
(9) Craig City - Alternative wood 270,142
heat project (HD 5)
(10) Delta/Greely - Delta Junction 37,180,100
Middle/High School
improvement (HD 12)
(11) Kuspuk - Johnny John Sr. School 5,570,583
renovation/addition,
Crooked Creek (HD 6)
(12) Lower Kuskokwim - Dick R. Kiunya 19,382,855
Memorial K-12 improvement,
Kongiganak (HD 38)
(13) Lower Kuskokwim - Kwigillingok 17,998,223
K-12 improvement (HD 38)
(14) Lower Kuskokwim - Chaputnguak 20,151,201
K-12 improvement,
Chefornak (HD 38)
(15) Lower Kuskokwim - Chief Paul 24,757,363
K-12 improvement,
Kipnuk (HD 38)
(16) Lower Kuskokwim - Nelson Island 17,021,353
Schools phase 2 renovation/addition
Tooksook Bay (HD 38)
(17) Lower Kuskokwim - Nightmute K-12 11,953,772
(18) Lower Kuskokwim - Kwethluk K-12 21,819,066
renovation/addition (HD 38)
(19) Lower Kuskokwim - Kuinerranmiut 21,819,066
Elitnaurviat K-12 renovation/
addition, Quinhagak (HD 38)
(20) Lower Kuskokwim - Joann A. Alexie 13,101,497
K-12 phase 2 renovation/addition
Atmautluak (HD 38)
(21) Lower Kuskokwim - Z.J. Williams 19,461,022
Memorial K-12 phase 2 renovation/
addition, Napaskiak (HD 38)
(22) Lower Kuskokwim - New Bethel 23,235,554
Mixed grade school (HD 38)
(23) Lower Kuskokwim - Newtok 18,131,436
K-12 school improvement (HD 38)
(24) Lower Kuskokwim - Napakiak 15,641,640
K-12 school improvement (HD 38)
(25) Lower Yukon - Russian Mission 18,485,899
K-12 school replacement (HD 6)
(26) Lower Yukon - Marshall 23,436,333
K-12 school replacement (HD 6)
(27) Lower Yukon Emmonak 18,999,853
K-12 renovation/addition (HD 39)
(28) Lower Yukon - Alakanuk 24,143,044
school improvement (HD 39)
(29) Lower Yukon - Ignatius Beans 7,009,266
school improvement
Mountain Village (HD 39)
(30) Northwest Arctic - Noatak 26,501,174
K-12 school replacement (HD 40)
(31) Northwest Arctic - Kobuk 7,367,481
K-10 renovation/addition (HD 40)
(32) Southeast Island - Howard 5,332,854
Valentine K-12 school replacement
Coffman Cove (HD 1)
(33) Southeast Island - Hyder new 774,723
K-12 school construction (HD 5)
(34) Southeast Island - Outdoor 1,767,277
covered physical education area,
5 schools (HD 5)
(35) Southwest Region - New Stuyahok 27,231,626
K-12 school replacement (HD 37)
(36) Southwest Region - Koliganek 14,023,713
school improvement (HD 37)
(37) Yukon Flats - Arctic Village 11,802,818
K-12 school replacement (HD 6)
Sec. B. CONTINGENCY. The appropriations made in sec. A of
this Act are contingent on the passage by the Twenty-Fourth
Alaska State Legislature and enactment into law of a
version of SB 305 relating to petroleum taxes.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson explained this amendment would provide the funding
for all school capital improvement projects identified by the
Department with the exception of the school at White Mountain.
Funding for the White Mountain project was included in FY 06
supplemental appropriation legislation and was expedited to the
destruction of that facility by a recent fire.
Senator Olson offered a motion to amend the amendment to delete
item (7) Copper River - Glennallen Elementary School replacement
(HD 12) and the $11,417,650 appropriated for that item, and to
reduce the total appropriation to $536,720,836. A notation
indicates that this project was already included in the
committee substitute.
There was no objection and the amendment was AMENDED.
Senator Hoffman pointed out the contingency language relating to
the pending legislation to change the method in which taxes on
oil and gas production would be calculated. Passage of the
current language of that bill with the effective date of April
1, 2006, would generate an additional amount in excess of $2
billion for the State. The funding would therefore be available
for the appropriation requested in this amendment, and a balance
of $1.5 billion would remain.
7:49:02 PM
Senator Bunde asked if Senator Hoffman could guarantee that the
price of oil would be sufficient for the next several years to
generate the amount of revenue necessary for such expenditures.
The revenue had yet to be collected.
Senator Bunde divulged that he would support the adoption of
this amendment if it were amended to change the funding source
from general funds to the earnings reserve account of the Alaska
Permanent Fund.
7:49:38 PM
Senator Olson corrected that several years would not be required
to generate the necessary revenue to fund this appropriation.
The change in the effective date of the proposed Petroleum
Production Tax (PPT) legislation would generate an additional
$450 million at oil prices of $60 per barrel. Currently, the
prices were over $70 per barrel, and within one year, $1.7
billion would be collected. This would include additional
revenues generated from the progressivity factor of the PPT
method.
AT EASE 7:50:29 PM / 7:58:17 PM
Senator Olson offered a second amendment to the amendment to
change the funding source from general funds to "excess earnings
of the Permanent Fund" and to delete the contingency language of
Section B of the amendment.
Senator Bunde asked whether the intent would be to utilize
funding that would otherwise be appropriated to Permanent Fund
dividends, or specifically excess earnings.
Senator Olson clarified that excess earnings would be utilized.
Senator Stedman objected to the motion, as he preferred the
original funding source.
8:01:01 PM
Co-Chair Green also objected to the motion.
Senator Olson WITHDREW his motion to amendment the amendment.
Senator Bunde cautioned that approval of this amendment would
result in expending funds not yet received. A portion of the
additional revenue should be saved for future needs. Other
projects and programs also warrant consideration for receipt of
these funds.
8:02:42 PM
Senator Olson agreed. However, the amendment is contingent on
the PPT legislation passing and therefore expenditures would not
be made without the establishment of the revenue source.
8:03:21 PM
Senator Stedman understood that if the PPT tax structure were
not adopted, this amendment would become null.
Senator Bunde maintained his objection.
8:04:14 PM
A roll call was taken on the motion.
IN FAVOR: Senator Stedman, Senator Olson and Senator Hoffman
OPPOSED: Senator Bunde, Senator Dyson, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amended amendment FAILED to be adopted.
8:04:41 PM
EDUC #2: This amendment adds a new bill section to read as
follows.
Sec. A. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT. The
sum of $2,011,000 is appropriated from the general fund to
the Department of Education and Early Development for
payment as a grant under AS 37.05.316 to Alyeska Worldwide
for the purpose of implementing the Whole Village Project.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson described the Whole Village Project created by the
Yukon-Kuskokwim School District to provide links to "virtual
schools". He viewed a presentation of this project. Through the
use of modern electronics, students are able to compile local
and family history, including photographs of their elders.
Native artisans are able to market their products on the
Internet. Schools have been linked electronically to capture and
teach the Yupik language to students in the region.
Senator Dyson stated that the requested funding would enable the
project to continue, as well as allow the District to market the
technology, training and skills statewide.
Senator Dyson emphasized that this project offers a viable
method for ecommerce and "capturing local history and local
culture."
8:06:40 PM
Co-Chair Wilken appreciated the efforts of this project.
However, the Yukon Kuskokwim School District is already
anticipated to receive $219,000 general funds in the FY 07
capital budget for the costs associated with either rejuvenating
or closing the Alyeska Central School. Enrollment in the
corresponding school, operated by this district, is declining
and the district should not be appropriated additional funding
that could divert efforts from the correspondence school. Other
school districts could undertake this modern electronic project.
The Committee should address this project thoroughly at a later
date.
Co-Chair Green pointed out that funding is included in this
committee substitute for the Association of Alaska School
Boards, Consortium for Digital Learning project. She recommended
supporting this project and possibly considering other projects,
such as the Whole Village Project, in the future.
Co-Chair Wilken maintained his objection.
8:08:58 PM
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Senator Hoffman and Senator Olson
OPPOSED: Senator Stedman, Senator Bunde, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
8:09:38 PM
EDUC #3: This amendment inserts a new subsection (j) to Section
13. FUND TRANSFERS., on page 107 following line 4 of committee
substitute Version "L", to read as follows.
(j) The sum of $4,375,000 is appropriated from the
general fund to the major maintenance grant fund (AS
14.11.007) for payment as a grant under AS 14.11.015 for
Schoenbar Middle School mold remediation, water
infiltration damage, and related retrofitting.
Accompanying explanatory language reads as follows.
This grant is for emergency mold remediation, roof
replacement and water damage repairs at Schoenbar Middle
School in Ketchikan. 7th and 8th graders at the Ketchikan
Gateway Borough School District have been displaced for
over 2 years. This year, they had to attend classes in a
shopping mall. If this grant is not provided, the Borough
will lose considerable financial flexibility in their
General Fund budget this year and students may not be back
into the remodeled school for an additional year.
Senator Stedman moved for adoption.
Co-Chair Green objected.
Senator Stedman offered a conceptual amendment to specify the
conforming page and line numbers to the current version of the
bill before the Committee, Version "L". Because this motion was
made by the sponsor of the amendment, no further action was
necessitated to make the change.
Senator Stedman overviewed the explanatory statement. The State
Department of Education and Early Development has been involved
in addressing this issue. This project qualifies for 70 percent
funding contingent upon the Ketchikan Gateway Borough securing
the remaining 30 percent. This amendment would allow the project
to be accelerated in a timelier manner than if it were included
on the Department's list of major projects.
8:12:34 PM
Senator Bunde clarified that the District had yet to apply for
inclusion on the Department's list of major projects.
Senator Stedman told of the submission deadline of September
2005. At that time, the status of the facility was in review and
the specific needs were yet to be determined. Design and
structural issues had since been identified. The building is
uninhabited and students have been schooled in a shopping mall
for three years.
8:13:36 PM
Senator Bunde recalled previous appropriations to this project
of $9 million and $5 million. This amendment represents an
additional request of over $4 million.
Senator Stedman explained the initial cost estimate of the
project was $9 million. An additional expense of $4 million was
necessary for retrofitting. The funding requested in this
amendment would be utilized for a third effort to make the
facility functional. The Department has been involved in a
bidding project, which would allow the Borough to qualify for
the 70/30 percent match ratio.
Senator Stedman told of an attempt to include funding for this
project in the FY 06 Fast Track Supplemental appropriation, but
the details were not finalized. Nonetheless, expediency is
necessary in getting this project completed.
8:16:21 PM
Senator Bunde asked at what point would demolition and
construction of a new facility would be more cost effective.
Co-Chair Green preferred that this project be included for
consideration with the other projects identified by the
Department. She maintained her objection to the adoption of the
amendment.
8:17:12 PM
Senator Olson stressed that the danger of mold is significant.
He supported the amendment.
Co-Chair Green contended that a process exists for consideration
of such projects. This amendment does not comply with that
process.
Senator Stedman agreed, but noted this amendment would allow for
acceleration of the project.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Stedman
OPPOSED: Senator Bunde, Senator Dyson, Senator Hoffman, Co-Chair
Wilken and Co-Chair Green
The motion FAILED (2-5)
This amendment FAILED to be adopted.
Senator Stedman asserted that although this amendment did not
pass, the process for achieving funding for this project would
be followed. The purpose of the amendment was to allow the
project to be undertaken earlier.
Co-Chair Green declared this to be a worthy project.
8:19:23 PM
Department of Fish and Game
FISHGAME #1: This amendment adds a $30,000 general fund
appropriation for Boards Support. Accompanying explanatory
language reads as follows.
The sum of $30,000 general funds is requested for Board of
Game activities related to the review and revision of the
Tier II subsistence proposals.
According to the department this appropriation is critical
for them to complete work initiated last year with funds
provided by the legislature. The funds provided last year
were used to conduct a review of subsistence Tier II
regulations with particular focus on the Nelchina caribou
and moose hunts. New and innovative regulations were
prepared and proposed for consideration at a board meeting
last May. The Board of Game was unable to finalize the
regulations however due to considerable opposition to
portions of the proposals. The regulations have been
assigned back to the board subcommittee for further
discussions, particularly with residents of Game Unit 13.
The intent is to bring revised regulations before the board
in FY 07. There are not enough funds in the Board Support
Section neither for the subcommittee to complete such work
nor for an additional two to four day meeting by the board.
Funds provided hereunder will only be used for this
specific purpose.
Senator Dyson announced that this amendment would be NOT
OFFERED.
AT EASE 8:19:31 PM / 8:30:00 PM
Department of Health and Social Services
DHSS #1: This amendment changes the amount of General Funds from
$3,502,100 to $2,838,100 and the amount of Other Funds from
($2,814,100) to ($2,150,100) for the Children's Services BRU, on
page 97, line 33. Accompanying explanatory language reads as
follows.
Reduce GF and Increase Federal Related to Rosales Decision
The FY 06 federal Budget Reconciliation Bill, the Deficit
Control Act, included cuts to Title IV-E Foster Care
maintenance and administrative costs funding. Provisions of
the Act are (retroactively) effective October 1, 2005.
The legislation was still in the process at the time
supplemental requests were submitted. Without specific
knowledge of the impacts, the original supplemental request
(both admin and maintenance) was based on worse case
scenario. Since submitting the supplemental request,
clarification on the specifics of the legislative impacts
has been received and the department is able to reduce the
supplemental funding request. Additionally, the Act
eliminated Title IV-E administrative claims for otherwise-
federally eligible children in unlicensed foster homes.
This amendment affects three components - Front Line Social
Workers, Foster Care Base Rate, and Subsidized Adoptions
and Guardianship - by reducing their initial general fund
supplemental request and replacing them with federal funds.
The following table shows the impact on the general fund.
Component: Front Line Social Workers
Original GF Request: $1,951,300
This Amendment: -$460,500
Amended GF Request: $1,490,800
Component: Foster Care Base Rate
Original GF Request: $759,800
This Amendment: -$179,200
Amended GF Request: $580,600
Component: Subsidized Adoptions and Guardianship
Original GF Request: $2,814,100
This Amendment: -$24,300
Amended GF Request: $78,700
Total
Original GF Request: $2,814,100
This Amendment: -$664,000
Amended GF Request: $2,150,100
The net result of this amendment is a general fund
reduction of $664,000 and an increase in federal funds of
the same amount.
Co-Chair Green moved for adoption.
Co-Chair Green explained this amendment relates to the FY 06
Supplemental appropriation.
The amendment was ADOPTED without objection.
DHSS #2: This amendment to Section 7 increases the amount of
Appropriation Items from $30,855,900 to $33,555,900, the amount
of General Fund from $13,205,100 to $14,405,100, and the amount
of Other Funds from $17,650,800 to $19,150,800 for the Senior
and Disabilities Services BRU; and increases the allocation to
the Senior and Disabilities Services component from $30,505,900
to $33,005,900 and increases the allocation to the Protection
and Community Services component from $350,000 to $550,000, on
page 98 lines 14 - 19. Accompanying explanatory language reads
as follows.
Medicaid and Assisted Living Cost Increases
Medicaid:
The original request for Senior and Disabilities Services
included $12,855,100 general funds and $17,650,800 federal
for a net increase of $30,505,900. Since submitting the
original request, projections for the year have increased
slightly. While Personal Care Attendants and Nursing have
remained fairly steady, the waivers have experienced growth
that is expected to continue through the rest of the fiscal
year.
The department asks that the Senior and Disabilities
Medicaid Services supplemental request be increased by
$1,000,000 general funds and $1,500,000 federal funds for
an adjusted request of $13,855,100 general funds and
$19,150,800, totaling $33,005,900.
Assisted Living:
The Department of Health and Social Services is requesting
to increase the Senior and Disabilities Services General
Relief/Assisted Living program FY 06 Supplemental by an
additional $200,000 general fund. This will bring the total
supplemental to $550,000.
The General Relief/Assisted Living program (AS 47.24) pays
for temporary assisted living costs for eligible adults
over the age of 18 that are not currently covered by one of
the Medicaid Waivers administered by the division.
Beneficiaries covered under this program are frequently
vulnerable adults that have been removed from their home as
a result of an investigation of harm performed by the Adult
Protective Services unit of the Division. To ensure their
immediate safety, these adults are temporarily placed in an
assisted living facility until permanent arrangements can
be made.
The original supplemental was based on providing services
to an average of 306 clients per month. This was an
increase of approximately 25% from FY 05 to FY 06. The
number of clients served has continued to increase over the
rest of the year. The monthly average is not 329 clients
with an average of 354 in the last 5 months. The increase
in number of clients served necessitates the additional
funds provided by this amendment.
Co-Chair Green moved for adoption.
Co-Chair Green noted this amendment also pertains to the FY 06
Supplemental Appropriation.
The amendment was ADOPTED without objection.
8:31:34 PM
DHSS #3: This amendment inserts a new section with an effective
date of July 1, 2006, to read as follows.
Sec. A. The sum of $1,500,000 is appropriated from the
general fund to the Department of Health and Social
Services, Office of Children's Services for the Phoenix
Pilot Project to provide support and intervention services
to families with children prenatal to age 10 who are
identified at-risk by the department, medical providers,
and local community service providers.
This amendment sponsored by Co-Chair Green "as requested" was
NOT OFFERED.
8:31:58 PM
Department of Law
LAW #1: This amendment inserts a new Oil, Gas and Mining
component to a new Civil Division BRU to Section 7 on page 98
and appropriates $1.2 million general funds to that component.
Accompanying language is also inserted to read as follows.
The amount appropriated to the Civil Division, is for work
related to the state gas pipeline and to bringing North
Slope natural gas to market and other oil and gas projects
for the fiscal year ending June 30, 2006.
Accompanying explanatory language reads, "Costs are continuing
during FY 06."
[NOTE: This amendment was submitted by the co-chair's staff
without a designated sponsor.]
Co-Chair Green moved for adoption. This amendment also pertains
to the FY 06 Supplemental appropriation.
There was no objection and the amendment was ADOPTED.
Department of Transportation and Public Facilities
DOT/PF #1: This amendment, sponsored by Co-Chair Green "as
requested", was pulled from circulation and was NOT OFFERED.
[Copy on file]
DOT/PF #2: This amendment adds a new Alaska Marine Highways:
Mooring Dolphins at Kake and Hoonah (HD 5) component to Section
1 on page 59 and appropriates $900,000 general funds to that
component. Accompanying explanatory language reads as follows.
Funds are needed for the installation of additional mooring
dolphins at the Kake and Hoonah Marine Highway terminals.
The current facilities at Kake and Hoonah only allow the
smaller LeConte and Taku vessels to moor. The Taku is
headed for a major federal project in January 2007 and will
be out of service through June 2007. Because of U.S. Coast
Guard requirements and ongoing negotiations with the labor
unions, there is a great deal of uncertainty regarding the
LeConte's deployment. Whatever is ultimately decided, it is
not possible for the LeConte to continue serving the
smaller Southeast Alaska communities as in the past. This
project will allow the larger mainliners Matanuska and
Malaspina to dock through the installation of additional
mooring dolphins and thus allow the AMHS to continue to
provide adequate service levels to Hoonah and Kake. With
general funds this project could be completed by November
2006, in time to allow the larger vessels to take over for
the Taku. Without the mooring dolphins, Kake will have no
service for six months and Hoonah will have limited service
from the LeConte as a day boat out of Juneau.
Co-Chair Green moved for adoption.
Without objection the amendment was ADOPTED.
8:33:07 PM
DOT/PF #3: This amendment deletes the Palmer: Chugach Street
Paving (HD13-16) component in the Transportation Initiative BRU
on page 83, lines 14 and 15 and the $3 million general fund
appropriation to that component.
This amendment also inserts a new Statewide: Rural Airport
Safety Improvements (HD 1-40) component to the Transportation
Initiative BRU and appropriates $3 million general funds to that
component.
Accompanying explanatory language reads as follows.
Upon careful review of the surface transportation program
as the Department of Transportation and Public Facilities
finalized the Statewide Transportation Improvements
Program(STIP), it was determined that federal funds and
legislative authority were available to allow the Chugach
Street paving project to go forward immediately. The
project has been bid using the federal authorization. The
general funds are no longer needed for this project.
It is requested that the $3 million be re-directed to
address the backlog of safety improvement projects at rural
airports throughout the state that are not eligible for
Federal Aviation Administration grants. Some of the
intended uses include, but are not limited to:
Runway Surface Repairs
Surface repairs are needed at Kake, Kwigillingok and
Konigiganak Airports.
Repair/Replace Lighting Fixtures and Airport Beacons
Many of the airport beacons are aging and need replacement
with modern, brighter lamps and beacon assemblies to
optimally perform their airport location and identification
task. Similarly, some of the towers now used to elevate the
beacons up to the specified height have fallen into
disrepair. Several towers have been damaged by vehicles,
have become rusted with time, or have otherwise been made
inoperable. This project would approach the replacement of
these failed and failing facilities with modern, more
serviceable installations as multiple-site projects. By
using a multiple-site project approach, replacement costs
are minimized by contracting for a large quantity of sites
all at the same time, gaining efficiencies of scale.
Repair/Replace Lighted Wind Cones
Lighted wind cones at various airports are getting old and
in many cases are becoming unreliable. Most need expensive
maintenance and should be replaced to increase safety and
reduce the state's liability. For example, the state
recently lost a court case for $1.4 million for a suspected
bad wind cone.
Apply Dust Palliative
Recent major maintenance efforts to protect runway and
apron surfaces by applying dust palliatives have been
successful. An additional benefit to closely adjacent
communities is the curtailment of blowing dust. This
project would apply dust palliative products to active
surfaces at various airports where it will have its
greatest impact.
Co-Chair Green moved for adoption. She pointed out that federal
funding would be available for the Chugach Street project.
The amendment was ADOPTED without objection.
DOT/PF #4: This amendment, sponsored by Co-Chair Green "as
requested" was removed from circulation and was NOT OFFERED.
[Copy on file]
DOT/PF #5: This amendment adds a new Togiak/Twin Hills Bridge
Design and Engineering (HD 37) component to an unspecified BRU
and appropriates $500,000 general funds to that component.
Accompanying explanatory language reads as follows.
A bridge will allow for community connectivity, and allow
the large fish processor in Twin Hills to truck product the
short distance to the larger Togiak airport for flyout of
more valuable fresh product. In addition, the airstrip at
Twin Hills could be closed, electric power delivered more
efficiently, and other economies resulting from eliminating
duplicate services.
Co-Chair Green moved for adoption.
Senator Bunde objected to request an explanation.
Co-Chair Green read the explanatory language into the record.
8:34:06 PM 8:34:20 PM
Co-Chair Green asked Senator Hoffman to further explain this
project.
Senator Hoffman deferred to the Department of Transportation and
Public Facilities.
8:34:40 PM
JOHN MACKINNON, Deputy Commissioner of Highways and Public
Facilities, Department of Transportation and Public Facilities,
testified that the funding requested in this amendment would be
utilized for a design study.
Senator Bunde acknowledged the reference to bridge design and
engineering. He asked the total estimated cost of the bridge
construction.
Mr. MacKinnon responded that an estimate could not be determined
until a location for the bridge was selected.
Senator Bunde asked if once completed whether this could be
operated as a toll bridge.
Mr. MacKinnon responded that such an option had not been
discussed.
Senator Bunde indicated that consideration should be given to
funding the construction costs with the collection of toll fees.
Senator Bunde removed his objection to the adoption of the
amendment.
Without further objection the amendment was ADOPTED.
DOT/PF #6: This amendment, sponsored by Co-Chair Green "as
requested", was pulled from circulation and was NOT OFFERED.
[Copy on file]
DOT/PF #7: This amendment deletes the Knik Arm Bridge/Mat-Su
Borough Road Improvements (HD 13-32) component in the
Congressional Earmarks BRU on page 80, line 9, and deletes the
$93.6 million federal fund appropriation to that component.
Senator Bunde moved for adoption.
Co-Chair Green objected.
Co-Chair Green stressed that the Knik Arm Bridge and Toll
Authority (KABATA) has worked diligently on this project. The
Authority had pursued this funding source, with should not be
denied.
8:37:50 PM
A roll call was taken on the motion.
IN FAVOR: Senator Bunde
OPPOSED: Senator Stedman, Senator Dyson, Senator Hoffman,
Senator Olson, Co-Chair Wilken and Co-Chair Green
The motion FAILED (1-6)
The amendment FAILED to be adopted.
8:38:20 PM
DOT/PF #8: This amendment deletes the Gravina Island Bridge (HD
1) component in the Congressional Earmarks BRU on page 79 line
27, and deletes the $91 million federal fund appropriation to
that component.
Senator Bunde moved for adoption.
Co-Chair Green objected.
Senator Bunde expressed that this project would not be the best
use of transportation funding. The primary reason given for
support of this bridge is the number of jobs that would be
created during its construction.
Senator Stedman objected to the motion.
8:39:42 PM
Senator Stedman recalled as a child flying into and out of the
community of Sitka on aircraft that landed and took off from the
water. A bridge was subsequently constructed to link the town
with the island that housed an airport. The proposed bridge to
accomplish the same at the community of Ketchikan has been under
consideration for some time. The present time is the most
optimal to undertake this effort, given the position of the
Alaska Congressional Delegation. The cost of this bridge is not
unreasonable considering the State's current fiscal situation.
Co-Chair Wilken announced he would not support passage of this
amendment. However, an alternative financing plan or a different
design could be forthcoming in the next year.
Senator Olson spoke to the "tight approach" experience of
landing aircraft at the Ketchikan airport. He gave an example of
an Alaska Airlines crash, noting that such crashes are not
uncommon.
Senator Bunde contended that the ferry crosses the channel
between the island and the City of Ketchikan frequently and that
the trip takes three to five minutes.
A roll call was taken on the motion.
IN FAVOR: Senator Bunde
OPPOSED: Senator Olson, Senator Stedman, Senator Dyson, Senator
Hoffman, Co-Chair Wilken and Co-Chair Green
The motion FAILED (1-6)
The amendment FAILED to be adopted.
8:47:45 PM
Department of Education and Early Development (continued.)
EDUC #4: This amendment to committee substitute Version "L"
inserts intent language to the Association of Alaska School
Boards - Consortium for Digital Learning (HD 1-40) component in
the Grants to Named Recipients (AS 37.05.316) BRU on page 6,
lines 25 through 28, to read as follows.
It is the intent of the legislature that the Association of
Alaska School Boards' Consortium for Digital Learning
include instruction for responsible use of education
technology.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson explained this language would indicate the
legislature's intention to the grant recipient as to how the
funding should be expended.
Co-Chair Green removed her objection.
There was no further objection and the amendment was ADOPTED.
8:48:56 PM
DOT/PF #9: This amendment inserts a new State Match for Gravina
Island Bridge component to Section 1 and appropriates $9,926,370
general funds to that component.
This amendment also reduces the general fund allocation to the
Federal-Aid Highway State Match (HD 1-40) component of the
Statewide Federal Programs BRU on page 63, lines 22 and 23, from
$73,837,000 to $63,910,630.
Accompanying explanatory language reads as follows.
DOT has set aside $9,926,370 general fund to match the
$91,000,000 Federal Receipt authority contained in the
bill. This amendment moves that match for the general match
pot and ensures that money is spent moving the Gravina
Bridge project forward.
AT EASE 8:49:05 PM / 8:54:40 PM
Senator Stedman moved for adoption.
Co-Chair Green objected.
Senator Stedman outlined the explanatory statement. He assured
this would incur no additional general fund expenditure.
Senator Bunde objected to the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson, Senator Stedman and
Senator Dyson
OPPOSED: Senator Bunde, Co-Chair Wilken and Co-Chair Green
The motion PASSED (4-3)
The amendment was ADOPTED.
8:55:59 PM
DPT/PF #10: This amendment adds a new Fairbanks: Illinois
Street-Barnette Street Reconstruction and Barnette Bridge
Construction (HD 7-11) component to the Transportation
Initiative BRU on page 82, line 17, and appropriates $36 million
to that component. Accompanying explanatory language reads as
follows.
This amendment supplements federal funds to construct the
Illinois-Barnette & Bridge Project. The project would
reconstruct Illinois street from 1st Avenue to College,
construct the Barnette Street Bridge and reconstruct
Barnette Street from 1st Avenue to 7th Avenue.
This project is the number 1 ranked project on the
Fairbanks Metropolitan Area Transportation System's
Transportation Improvement Program.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected.
Co-Chair Wilken told of the lack of a connector road linking the
Steese Expressway and the Parks Highway, which serve as major
arterials. Funds are not available through the Fairbanks
Metropolitan Area Transportation System (FMATS) program for this
project.
Co-Chair Green remarked upon the significant amount of funds
requested in this amendment.
8:57:28 PM
A roll call was taken on the motion.
IN FAVOR: Co-Chair Wilken
OPPOSED: Senator Dyson, Senator Hoffman, Senator Olson, Senator
Stedman, Senator Bunde and Co-Chair Green
The motion FAILED (1-6)
The amendment FAILED to be adopted.
DOT/PF #11: This amendment to the Transportation Initiative BRU
reduces the general fund appropriations to the Juneau Access (HD
3-4) component on page 82, line 33, from $45 million to $25
million, and the Roads to Resources (HD 1-40) component on page
83, line 19, from $17 million to $14 million, and inserts a new
Fairbanks: Illinois Street-Barnette Street Reconstruction and
Barnette Bridge Construction (HD 7-11) component and
appropriates $36 million to that component. Accompanying
explanatory language reads as follows.
This amendment supplements federal funds to construct the
Illinois-Barnette & Bridge Project. The project would
reconstruct Illinois street from 1st Avenue to College,
construct the Barnette Street Bridge and reconstruct
Barnette Street from 1st Avenue to 7th Avenue.
This project is the number 1 ranked project on the
Fairbanks Metropolitan Area Transportation System's
Transportation Improvement Program.
Co-Chair Wilken announced that this amendment would be NOT
OFFERED.
DOT/PF #12: This amendment to the Transportation Initiative BRU
on page 82 line 17, inserts a new Fairbanks: Steese
Expressway/3rd Street Intersection Improvements (HD 7-11)
component and appropriates $5.9 million general funds to that
component, and inserts a new Fairbanks: Fairbanks Metropolitan
Area Transportation System (FMATS): Transportation Improvement
Program (HD 7-11) component and appropriates $7.2 million
general fund to that component. Accompanying explanatory
language reads as follows.
This amendment supplements federal funds for intersection
improvements to the Steese Expressway and 3rd Street
intersection.
This amendment also supplants the FMATS allocation with
general funds.
In the FY 06-08 Statewide Transportation Improvement
Program, funds totaling $184,600,000 are programmed for the
Gravina Island Bridge and Knik Arm Bridge projects. This
funding will directly impact the Department of
Transportation's North Region funding levels by $13,100,000
annually for the next five years thereby delaying critical
transportation projects in the Fairbanks region.
This amendment would displace lost federal STIP funding
with general funds for FY 07.
Co-Chair Wilken moved for adoption.
Senator Stedman objected.
Co-Chair Wilken referred to a flowchart titled, "Impact of
Bridge Funds on National Highway System Program" [copy on file],
which includes the following information.
TEA-LU Bridge Funding $404.4 million
Gravina $175.0
Knik 229.4
48% Allocated for NHS Program $194.1
Gravina $ 81.0
Knik 110.1
Less Expenditures to Date ($18.0)
Knik ($18.0)
"Earmark" Funds Programmed in FY 06-08 STIP
Gravina $ 84.0
Knik 92.1
5-Year Impact of Bridges To National
Highway System (NHS) Program $167.1 million
STIP Funds (91%) $149.7
(Figure adjusted for estimated 85% Congressional
Appropriation)
State Match (9%) 17.4
Annual impact to Statewide NHS $ 33.4 million
Program 5 years
Northern Region 40% $13.4
Central Region 40% 13.4
S.E. Region 20% 6.7
Total "Bridge" Project Cost $925.0 million
Gravina $325.0
Knik 600.0
Total Access to Bridges Cost
Gravina 48.0
Knik Anc. TIP???
Co-Chair Wilken outlined these figures. While he supports the
two bridge projects, his constituents do not support
construction of these bridges at the expense of other projects.
The net result of these projects would be that the Northern
Region is not held harmless for the loss of $13.4 million
annually.
Senator Stedman reaffirmed his objection to the adoption of the
amendment. He challenged the annual impact figure of $33.4
million, stating that the correct amount would be approximately
$23 million. The funding impact of the bridge projects on all
areas of the state should be defined. To accomplish this, the
bridge projects should be removed from the normal Statewide
Transportation Improvement Project (STIP) process. Adoption of
this amendment would be premature.
9:02:09 PM
Co-Chair Wilken shared that he had collaborated with the
Department to identify the costs to the Northern Region. This
issue is "sensitive" to Fairbanks residents. He now asked Mr.
Mackinnon whether the flowchart accurately reflects the loss of
funding through the National Highway System (NHS) program.
Mr. MacKinnon responded that the costs could be calculated in
different ways. The flowchart reflects one method. However, the
Department had been notified by the Alaskan congressional
delegation that approximately $20 million of the earmark funds
would not have been otherwise appropriated without the existence
of the bridge projects.
9:04:37 PM
Senator Bunde pointed out that $190 million is proposed to be
appropriated to the two bridge projects and subsequently, an
unintended consequence would be that funding for other projects
would not be held harmless. The funding for FY 08 for the
bridges would amount to over $200 million, and represent only
the first portion of the total costs necessary. Significant
additional funding would be requested in future years.
Co-Chair Green reminded that the legislature instituted the Knik
Arm Bridge and Toll Authority and directed it to proceed with
the project. The Alaskan congressional delegation has been
supportive of this project. As the legislature continues to
receive direction from the delegation to further the project,
the legislature should not deny the appropriations. A statewide
"vision" is necessary to perceive this project rather than
calculations made of the funding impacts to each election
district.
9:06:12 PM
Senator Stedman distributed a document [copy on file], which
reads as follows.
What Do the Bridge Earmarks Actually Cost the NHS?
SAFETEA-LU included just over $452 million in earmarks in
seven separate earmark citations for the two Alaska Bridges
- $223 for Gravina and $229.4 for Knik. Of the total $325.4
million consisted of earmarked formula funds, and $127
million was earmarks in addition to the formula funds
Alaska receives - New Money. This "New Money" consists of
earmarked funds that Alaska would not have received if it
weren't for the Bridge Earmarks.
In November, much of these earmark funds became
undesignated to the specific bridge projects, and instead
became designated to the Department of Transportation as
"non-restricted apportionments."
Governor Murkowski, in preparing the capital budget
directed the department to allocate the maximum amount of
the re-designated earmarks to the bridges. Through a series
of calculations, the total amount subject to change and
available for the bridges is $165 million over the five
year life of SAFETEA-LU - $71.4 for Gravina and $93.6 for
Knik.
This amounts to $33 million a year of NHS funds going to
bridges.
However, when you take into consideration the $127 million
in New Money that made up the earmarks, $61 million of that
went into the $165 million bridge allocation - that equals
only $104 million of regular formula NHS funds going to the
bridges over the five year program - $20.8 million a year.
In addition to the re-designed earmarks mentioned above,
there was an additional $48 million in Gravina earmark and
$2 million in Knik earmark that was not subject to the re-
designation.
Of the $127 million in New Money Earmarks, 52% was
reallocated to other programs, included the AHS and the CTP
- this was $56 million in New, non-NHS Money.
The 2006 Capital budget appropriated almost $180 million in
general funds to transportation projects statewide. This
included $56 million to Anchorage, $27 million to Mat-Su,
$17 million to the Kenai Peninsula and $44 million to
northern region. Much of this $180 million went into NHS
projects.
[Note: This document also includes a pie chart that depicts
the following:
NHS Average Annual Target $73.3
New Money Earmarks 12.
Gravina + Knik Earmarks 20.8]
Co-Chair Wilken remarked that the congressional earmark was
removed and the money was allocated to the State to appropriate
the funding as the legislature deemed appropriate. Funding
appropriated to the bridge projects would result in reduced
funding to other areas of the state. Were the funding be
appropriated to these projects, other projects statewide would
be negatively impacted for the next five years.
9:09:02 PM
Senator Olson asked the number of other projects that were given
a priority lower than that of the bridge projects and would not
receive funding.
Mr. MacKinnon listed the number as "a dozen" statewide. He
qualified that a misconception exists that certain projects
would have been otherwise funded.
Senator Bunde warned of future situations in which federal
funding could be reduced and general funds would be needed to
offset the losses.
A roll call was taken on the motion.
IN FAVOR: Co-Chair Wilken and Co-Chair Green
OPPOSED: Senator Dyson, Senator Stedman, Senator Bunde, Senator
Hoffman and Senator Olson
The motion FAILED (2-5)
The amendment FAILED to be adopted.
9:11:05 PM
DOT/PF #13: This amendment inserts a new bill section to read as
follows.
Sec. A. PURPOSE OF DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES APPROPRIATIONS. Notwithstanding any
appropriation in this Act of federal funds for the Juneau
access improvement project, federal funds received under 23
U.S.C. 218 may not be used for the Juneau access
improvement project.
This amendment, sponsored by Senator Hoffman, was NOT OFFERED.
9:11:18 PM
DOT/PF #14: This amendment deletes the Parks Highway (HD 12)
component from the Transportation Initiative BRU and the $10.5
million general fund appropriation to that component on page 83,
line 16.
This amendment also adds a new Parks Highway (MP 185-192) (HD
12) component and a $2.5 million appropriation to that
component; and adds a new Parks Highway (MP 351-356) (HD)
component and $8 million appropriation to that component to the
Transportation Initiative BRU.
Accompanying explanatory language reads as follows.
The amendment reallocates $8,500 of the funding for the
Parks Highway (MP 185-192) project to the Parks Highway (MP
351-356) project that is ready to bid and would allow for
construction this summer. The MP 185-192 is not ready for
construction this summer.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected.
Co-Chair Wilken overviewed the explanatory statement, noting
that the Department supports this change.
Mr. MacKinnon informed that the cost of the Chilitna project,
located at mile post 351 through 356 would be $10.5 million
total. However, the project was not ready for construction to
begin.
Co-Chair Green surmised this amendment would have a fiscally
neutral impact.
Co-Chair Green withdrew her objection to the adoption of the
amendment.
Without further objection the amendment was ADOPTED.
9:13:17 PM
University of Alaska
UNIV #1: This amendment adds a new Community Campuses Renewal
component and appropriates $16,435,000 general funds to that
component. Accompanying explanatory language reads as follows.
This funding provides fundamental facility renewal at nine
community campus sites. This capital budget request is
within the Board of Regents' Highest Priority Capital
funding request "Maintaining Existing Facilities and
Equipment." In addition to those priority projects
described in the UA "Redbook" page 29-30, this amount
covers a second floor classroom addition to the Bethel
Campus facility.
Community Campuses Renewal
This request will provide urgently needed funding to
perform renewal and renovation to structural and mechanical
systems on the University's aging community campus
facilities and roadways. The nine highest priority projects
are:
· UAF Community Campus Facility Roof, Heating and
Structural Renewal
(Chukchi - GF: $338.1, IAC - GF: $717.1, Kuskokwim -
GF: $2,816.4, Northwest - GF: $250.9, Palmer - $77.5,
Total: $4,200.0)
Critical needs include issues such as repairing
railings and boardwalks, roof repair, upgrading
electrical systems, boiler replacements, interior wall
finishes, floor finishes, ventilation issues and
exterior rehabilitation. The Kuskokwim amount includes
funding necessary for immediate campus renewal as well
as funding to add a classroom into the existing campus
facility.
Kuskokwim Campus is the largest UAF rural campus. It
serves Bethel and 46 remote villages in the Wade-
Hampton and Bethel census areas. KUC has been key in
UA's ability to meet its goal of doubling the number
of nursing graduates and training students for allied
and behavioral health positions in that region. The
campus facility requires major maintenance as well as
additional adequate classroom space. The added space
will accommodate the added programs, student and
faculty needs.
· UAA PWSCC Campus Renewal (GF: $2,000.0)
This project will address various mechanical,
ventilation, plumbing, electrical and
telecommunication system repairs and upgrades.
· UAF TVCC 604 Barnette Exterior Envelope, HVAC and
Electrical Revitalization (GF: $4,390.0)
This covers the immediate need for architectural
revitalization of the third and fourth floors to allow
occupancy. The long-term project replaces the aged
mechanical and electrical systems within the old
Fairbanks Courthouse, upgrades the exterior envelope,
and completes seismic corrections, as well as
revitalizes the interior spaces to meet TVC's rapidly
expanding program needs.
· UAA Kodiak College Campus Renewal (GF: $2,500.0)
The projects included in this request are remodeling,
improving space efficiency, fixed equipment
replacement, and renewal of electrical and mechanical
systems.
· UAA Mat-Su College HVAC and Boiler Replacement (GF:
$1,000.0)
The existing air handling unit has been used to supply
air to the original Jalmar M. Kerttula Building, an
addition and several remodeled spaces. Replacement of
the air handling unit and boiler would create a more
comfortable work and study environment and meet
current code requirements and reduce maintenance
costs.
· UAA Kachemak Bay Campus Renewal (GF: $500.0)
The next phase of renewal and expansion for campus
programs involves replacement of the original building
roof and remodel of the Arts program classroom,
including renewal of specialized furnishings and
equipment for Art.
· UAA KPC Kenai River Campus Renewal (GF: $645.0)
The projects included in this request are remodeling,
fixed equipment replacement, renewal of electrical and
mechanical systems, and renewal of campus signage.
· UAA Mat-Su College Campus Renewal (GF: $400.0)
The projects included in this request are remodeling,
fixed equipment replacement, and renewal of electrical
and mechanical systems.
· UAA Mat-Su Exterior Parking/Road/Circulation Renewal
(GF: $800.0)
This project will provide paving and signage to the
unimproved parking lot east of the Snodgrass building
and associated lighting. A new secondary access loop
road along the east side of campus will provide better
vehicle flow and access to all parking lots. The
existing pedestrian bridge will be enclosed to
increase pedestrian comfort and safety. A new fire
road on the southern side of FSM/OLB is required to
meet fire access requirements.
Senator Hoffman announced that this amendment would be NOT
OFFERED.
UNIV #2: This amendment adds a new UAF Community Campuses
Renewal component and appropriates $4.2 million general funds to
that component. Accompanying explanatory language reads as
follows.
This is funding for fundamental facility renewal at UAF
rural campus sites. This capital budget request is within
the Board of Regents' Highest Priority Capital funding
request "Maintaining Existing Facilities and Equipment." In
additional to the "UAF Community Campus Facility Roof,
Heating and Structural Renewal" projects described in the
UA "Redbook" page 29, this amount covers a second floor
classroom addition to the Kuskokwim (Bethel) Campus
facility.
UAF Community Campus Facility, Roof, Heating and
Structural Renewal
(Chukchi - GF: $338.1, IAC - GF: $717.1, Kuskokwim -
GF: $2,816.4, Northwest - GF: $250.9, Palmer - $77.5,
Total: $4,200.0)
This request will provide urgently needed funding to
perform renewal and renovation to structural and
mechanical systems on the University's aging UAF's
rural campus facilities. Critical needs include issues
such as roof repair, upgrading electrical systems,
boiler replacements, interior walls, floors,
ventilation issues and exterior rehabilitation. The
Kuskokwim amount includes funding necessary for
immediate campus renewal as well as funding to add a
second floor classroom within the exiting campus
facility. This classroom addition provides 5,000 GSF
to the campus.
Kuskokwim Campus is the largest UAF rural campus. It
serves Bethel and 46 remote villages in the Wade-
Hampton and Bethel census areas. KUC has been key in
UA's ability to meet its goal of doubling the number
of nursing graduates and training students for allied
and behavioral health positions in that region. The
campus facility requires major maintenance as well as
additional adequate classroom space. The added space
will accommodate critical high demand programs
including nursing, personal care assistant, certified
nurse assistant, early childhood development, boiler
maintenance, and office management. Availability of
these programs in this region is making an impact in
keeping people in the region employed in the region.
This space will accommodate the growing student body
and faculty needs.
Providing major renewal funding for campus facilities
is an on-going need. The projects included above
address the most critical renewal needs. It is
important to note that the UA six-year plan includes
$12 million to address the full scope of major
maintenance needs at the UAF rural campus and UA has a
list totaling $440 million in deferred maintenance and
renewal needs for the entire statewide system.
Adequate annual funding for facility major renewal and
replacement is necessary.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman described the several projects that would be
undertaken were this funding appropriated.
9:14:22 PM
Senator Stedman understood the capital budget for the University
would be approximately $100 million in FY 07.
Co-Chair Green estimated the amount to be approximately $89
million.
Co-Chair Wilken clarified that the amount is not exclusively
comprised of general funds, but rather includes university
receipts, federal funds and other funding.
Co-Chair Green noted that general funds are included.
Senator Bunde questioned the disparity in the amounts needed for
maintenance of the Chukchi Campus compared to the larger Palmer
Campus.
Co-Chair Green established the figures are the amounts cited by
the Board of Regents.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Hoffman and Co-Chair Green
OPPOSED: Senator Dyson, Senator Stedman, Senator Bunde and Co-
Chair Wilken
The motion FAILED (3-4)
The amendment FAILED to be adopted.
AT EASE 9:17:01 PM / 9:21:36 PM
Language Section
LANG #1: This amendment inserts new bill sections to read as
follows.
Sec. 8. DEPARTMENT OF ADMINISTRATION. (a) The sum of
$200,000 is appropriated from the public employees
retirement system fund to the Department of Administration
for costs of an investigation related to potential
litigation on behalf of the public employees' retirement
system (AS 39.35) for the fiscal years ending June 30,
2006, and June 30, 2007.
(b) The sum of $200,000 is appropriated from the
teachers retirement system fund to the Department of
Administration for costs of an investigation related to
potential litigation on behalf of the teachers' retirement
system (AS 14.25) for the fiscal years ending June 20,
3006, and June 30, 2007.
Sec. 10. The appropriations made by sec. 8 of this Act
take effect immediately under AS 01.10.070(c).
Co-Chair Green moved for adoption. She informed that the House
Ways and Means Committee was considering pursuing litigation
against the actuary that formally was contracted by the State to
provide actuarial data. This amendment would provide funding to
determine the feasibility of such legal action.
Co-Chair Green announced the amendment would be AMENDED to
provide an effective date of May 10, 2006 for the provisions of
the new section.
Senator Stedman surmised this funding would be utilized to
contract an expert not employed by the Department of Law.
There was no objection and the amended amendment was ADOPTED.
9:23:20 PM
AT EASE 9:23:31 PM /9:24:01 PM
LANG #2: This amendment inserts a new subsection (c) to Section
23. DEPARTMENT OF HEALTH AND SOCIAL SERVICES., on page 110, line
4 to read as follows.
(c) The sum of $150,000 is appropriated from the
principal of the Alaska Children's Trust pursuant to AS
37.14.240(d), to the Department of Health and Social
Services, children's trust programs, for administrative
purposes of the Trust for the fiscal year ending June 30,
2007.
Accompanying explanatory language reads as follows.
The Department of Health and Social Services recently
received a letter from the Alaska Children's Trust
requesting expenditure authorization from the legislature
for the use of $150,000 from the Trust's principal for
administrative expenses, including investment services
provided by the Department of Revenue.
This request is made pursuant to AS 37.14.240(d), which
reads:
(d) Up to $150,000 per year may be appropriated from
the principal of the trust for the administrative expenses
of the board relating to AS 37.14.200 - 37.14.270.
By using funds from the Trust's principal for
administrative purposes, we will be able to reserve the use
of interest income generated by the Trust for grant making
and other activities.
This amendment sponsored by Co-Chair Green "as requested" was
NOT OFFERED.
LANG #3: This amendment adds a new subsection to Section 24.
DEPARTMENT OF LAW, on page 110, line 12, to read as follows.
(c) The sum of $3,671,200 is appropriated to the
Department of Law, civil division, deputy attorney
general's office, to pay claims against the state for the
fiscal year ending June 30, 2006, from the following
sources in the amounts stated:
General Fund $3,668,400
Public school trust fund (AS 37.14.110) 2,800
A notation reads, "(Needs an effective date of May 10, 2006.)"
Accompanying explanatory language reads as follows.
Funds to pay legal claims against the State of Alaska that
have been finalized.
[NOTE: This amendment was submitted by the co-chair's staff
without a designated sponsor.]
Co-Chair Green moved for adoption.
Senator Bunde asked the purpose of this amendment.
Co-Chair Green responded that this funding request pertains to
judgments and claims.
9:24:41 PM
JOAN BROWN, Chief Budget Analyst, Office of Management and
Budget, Office of the Governor, testified that this item
actually pertains to claims and settlements rather than
judgments. A judgment is determined by the court; a settlement
is determined by the parties outside the court.
The amendment was ADOPTED without objection.
LANG #4: This amendment inserts a new subsection to Section 13.
FUND TRANSFERS., on page 105, line 11 to read as follows.
(--) The sum of $182,700,000 is appropriated from the
general fund to the power cost equalization endowment fund
(AS 42.45.070).
This amendment also makes conforming changes to include
reference to the new subsection of Section 13 in the language of
subsection (a) of Section 55. LAPSE., on page 128 line 9.
This amendment also provides for an effective date of June 30,
2006 to the provisions of the new subsection of Section 13.
This amendment also inserts a new subsection (e) to Section 53.
CONTINGENCY., on page 127, line 53 to read as follows.
(e) The appropriation made in sec. 13(--) of this Act
is contingent upon there being an amount equal to or
greater than the appropriation made by sec. 13(--) as an
unappropriated balance of the operating general fund (state
accounting system number 11100) on June 30, 2006.
Co-Chair Green moved for adoption.
Senator Bunde objected to request an explanation.
9:26:24 PM
CHERYL FRASCA, Director, Office of Management and Budget, Office
of the Governor, testified that this appropriation to the power
cost equalization (PCE) endowment fund would fully fund future
operation of the PCE program at approximately $25 million
annually.
9:27:16 PM
Senator Bunde maintained his objection. Although, the PCE
program benefits many, he preferred that the appropriation be
reviewed annually.
9:27:54 PM
Co-Chair Wilken calculated that seven percent of the $366
million balance of the endowment fund would be required to fund
the PCE program; however, interest earnings from the fund are
only five percent. This discrepancy would make the fund
unsustainable and future legislative appropriations would be
requested.
Co-Chair Wilken spoke against beginning consideration of this
request so late in the legislative session. The matter requires
more review and discussion.
9:29:02 PM
Ms. Frasca noted that the effective date of this appropriation
would be contingent upon verification in FY 06 of sufficient
revenues in the general fund to cover this appropriation after
all other appropriations were made.
Senator Stedman asked if the amount was calculated as the
balance of the general fund at the conclusion of FY 06. If so,
he asked if the funds could be expended in another manner, such
as for education or "forward funding".
Ms. Frasca responded that this appropriation would occur before
the conclusion of FY 06 due to a provision in separate
legislation, SB 230 Fast Track Supplemental Appropriation, that
requires the balance of the general fund to be deposited to the
Public Education Fund.
9:30:57 PM
Senator Bunde understood therefore that if the approximately
$182 million FY 06 general fund balance were not appropriated
under this amendment, it would be deposited to the Public
Education Fund.
9:32:06 PM
Ms. Frasca had the same understanding.
Senator Bunde supported allocation of the funds for education
versus PCE.
Co-Chair Wilken reminded that the endowment was created in 1999
as part of negotiations to secure the three-quarter majority
vote of both bodies of the legislature required to authorize a
withdrawal from the Constitutional Budget Reserve (CBR) fund for
the purposes of balancing that year's budget. At that time, $188
million was transferred from the CBR into the endowment.
Senator Olson furthered that the remaining necessary funds to
operate the endowment should have been received from the
proceeds of the Four Dam Pool project, which has experienced
difficulties.
AT EASE 9:33:15 PM
Co-Chair Green offered a motion to amend the amendment to delete
"June 30, 2006" and insert "June 29, 2006" to the language of
the new Section 53(e).
The amendment was AMENDED with no further action necessary, as
the motion to amend was offered by the sponsor of the amendment.
Senator Bunde maintained his objection to the adoption of the
amendment.
Senator Olson asked the impact of the change of contingency
effective date.
Co-Chair Green responded that the date change would allow for
the funds to be appropriated to the PCE endowment fund without
dispute.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson, Senator Stedman and
Co-Chair Green
OPPOSED: Senator Bunde, Senator Dyson and Co-Chair Wilken
The motion PASSED (4-3)
The amendment as amended was ADOPTED.
9:34:35 PM
Fiscal Notes
FIS NOT #1: This amendment inserts a new subsection to Section
27. DEPARTMENT OF REVENUE., on page 111, line 31, to read as
follows.
(--) The sum of $275,000 is appropriated to the
Department of Revenue, tax division for increased operating
costs for the fiscal year ending June 30, 2006.
This amendment also includes reference to the aforementioned new
subsection in the language of Section 56(b), on page 128, line
11, to provide for a May 10, 2006 effective date for the new
subsection.
This amendment also inserts a new subsection [presumably to
Section 53. CONTINGENCY., on page 127 line 20; however the
actual language of the amendment directs the new subsection to
be inserted in "sec. 44, Contingency" although Section 44
pertains to HOUSE DISTRICT 39] to read as follows.
(--) The appropriation made by sec. 27(--) of this Act
is contingent upon passage by the Twenty-Fourth Alaska
State Legislature and enactment into law of a version of SB
305 or HB 488.
Co-Chair Green moved for adoption and explained that the
additional appropriation would be made to the Tax Division
provided that a change is enacted to the method in which oil and
gas taxes are levied.
There was no objection and the amendment was ADOPTED.
FIS NOT #2: This amendment inserts a new subsection to Section
27. DEPARTMENT OF REVENUE., on page 111 line 31 to read as
follows.
(--) The sum of $167,000 is appropriated to the
Department of Revenue to integrate the Regional Education
Attendance Areas tax into the tax accounting system.
This amendment also inserts a new subsection to Section 53.
CONTINGENCY., on page 127 line 20 to read as follows.
(--) The appropriation made by sec. 27(--) of this Act
is contingent upon passage by the Twenty-Fourth Alaska
State Legislature and enactment into law of a version of SB
112.
This amendment also specifies that the appropriation made in the
new subsection added to Section 27 is for a capital project and
would lapse under AS 37.25.020. [Note: The actual language of
the amendment instructs this provision to be included in Section
56(b), which pertains to effective dates. Section 55 pertains to
lapse dates.]
Co-Chair Green moved for adoption.
Co-Chair Wilken objected to clarify that this amendment relates
to SB 112.
Co-Chair Wilken removed his objection.
The amendment was ADOPTED without further objection.
9:36:14 PM
FIS NOT #3: This amendment inserts a new bill section to read as
follows.
Sec. XX. ALASKA COURT SYSTEM. The sum of $5,741,300 is
appropriated to the Alaska Court System for the remodel and
expansion of the Kenai and Fairbanks courthouses and the
remodel of the Anchorage courthouse.
This amendment also inserts a new subsection to Section 53.
CONTINGENCY., on page 127 line 20, to read as follows.
(--) The appropriation made by sec. XX of this Act is
contingent upon passage by the Twenty-Fourth Alaska State
Legislature and enactment into law a version of SB 237.
This amendment also inserts reference to the new bill section in
the language of subsection (b) of Section 55. LAPSE., to
stipulate that the appropriation made in the new bill section
would be considered a capital project and would lapse under AS
37.25.020.
Co-Chair Green moved for adoption. She offered an amendment to
change the amount of the appropriation to $7,149,300. She stated
the original amount was an error.
The amendment was AMENDED, being that it was offered by the
sponsor of the amendment and no further action was required.
9:37:00 PM
CHRIS CHRISTENSEN, Deputy Administrative Director, Alaska Court
System, testified that these funds would allow for the addition
of six new judge positions. The drafter of the amendment
incorrectly utilized an outdated appropriation amount from a
previous fiscal note.
There being no objection the amendment was ADOPTED.
AT EASE 9:37:57 PM / 9:39:37 PM
Technical #1: This amendment to the committee substitute Version
"L", deletes the language of subsection (a) of Section 32. HOUSE
DISTRICTS 1-14., on page 115, lines 14 through 17. The deleted
language reads as follows.
(a) The sum of $37,500 is appropriated from the
general fund to the Department of Commerce, Community and
Economic Development for payment as a grant under AS
37.05.316 to the Alaska Moving Image Preservation
Association, Inc., for the preservation of historic film.
This amendment also deletes Section 37 on page 117, lines 26
through 29. The deleted language reads as follows.
Sec. 37. HOUSE DISTRICTS 6-11. The sum of $960,000 is
appropriated from the general fund to the Department of
Commerce, Community and Economic Development for payment as
a grant under AS 37.05.316 to the Family Centered Services
of Alaska, Inc., for construction of six new therapeutic
youth homes.
This amendment also deletes Section 42 and Section 43 on page
120, lines 7 through 14. The deleted language reads as follows.
Sec. 42. HOUSE DISTRICTS 13-16. The sum of $500,000 is
appropriated from the general fund to the Department of
Commerce, Community and Economic Development for payment as
a grant under AS 37.05.316 to the Alaska Family Services,
Inc., for partial construction of the family services
complex.
Sec. 43. HOUSE DISTRICTS 17-32. The sum of $5,000 is
appropriated from the general fund to the Department of
Commerce, Community and Economic Development for payment as
a grant under AS 37.05.315 to the Municipality of Anchorage
for Camp Fire USA, Inc., lease payments.
Accompanying explanatory language reads, "These are included in
section 1".
This amendment also increases the appropriation made in Section
32(b) on page 115, line 18 through 20, from $20,000. The amended
language reads as follows.
(b) The sum of $20,000,000 is appropriated from the
general fund to the Department of Administration for
statewide administrative system replacement phase I - human
resources and payroll.
Co-Chair Green moved for adoption. This amendment would delete
four duplicate appropriations.
9:41:08 PM
Co-Chair Green furthered that the change to Section 32(b) is
necessary to correct a typographical error. It also changes the
funding source from Master Lease Line of Credit, which would
save $2.7 million per year in interest.
No further action was taken on this amendment, although it was
assumed that the Committee intent was that the amendment be
ADOPTED.
AT EASE 9:42:06 PM
Co-Chair Green announced that the Division of Legal and Research
Services would be allowed to correct discrepancies between the
amendments that were adopted and the committee substitute.
9:42:53 PM
Department of Commerce, Community and Economic Development
(continued)
COMMERCE #13: This amendment adds a new Saint Mary's Training
Center Renovation (HD 39) component to the Grants to Named
Recipients (AS 37.05.316) BRU, and appropriates $1,927,500
general funds to that component.
[Note: A motion was made to adopt this amendment earlier in the
meeting. The motion was held.]
Senator Olson asserted that the residents of the community of
St. Mary request these funds for the renovation of the training
facility.
9:43:47 PM
Senator Bunde objected. While he was appreciative of the
community effort for this project, $182 million would be
appropriated statewide for the PCE program. The State could not
afford the additional appropriation to Rural Alaska at this
time.
Co-Chair Wilken reminded of pending legislation, HB 16 that
relates to boarding schools, training schools and preparatory
schools. The proposed project would also have residential
housing and should be considered in conjunction with other such
educational facilities. Although the proposed facility located
at St. Mary's is worthwhile, others also merit attention. A new
boarding school should not be created until a statewide model is
established to ensure the best education at the most affordable
expense.
Co-Chair Wilken congratulated the residents of St. Mary's for
their efforts in operating as a first class city, especially
given that the community is located in one of the poorest
regions of the state.
Senator Olson commented that to not assist this community's
efforts in supporting an economy and contributing to its local
operating and educational costs would discourage the residents.
Such action would provide a disincentive to other communities
considering organization of a municipal government to establish
a tax structure.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator Dyson, Senator Stedman Co-Chair
Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
9:46:35 PM
Co-Chair Wilken directed attention to Section 55. RAILBELT
ENERGY FUND., of the "L" Version committee substitute. He noted
that $72 million would be expended for this program, with the
anticipation that the debts would be paid. However, not all
affected parties would be included in this appropriation. One
producer, two major customers and other minor, yet important
customers would not receive funding under this provision. Some
would incorrectly argue that he expected that the Golden Valley
Electric Association should also receive an appropriation. This
is not the issue.
Co-Chair Wilken asserted that this appropriation would be an
"ill-fated attempt to fire up the Healy Clean Coal Plant." If
the Homer Electric Association were successful in utilizing the
$30 million allocated for this purpose, the plant would produce
the most expensive power on the intertie. This is due to faulty
technology, which has failed in the past and has proven
dangerous. The equipment is one-of-a-kind; no spare parts exist
and it is no longer supported by the manufacturer.
Co-Chair Wilken furthered that the proposed plant has no power
sales agreement. Consequently, consumers located along the
intertie would be forced to pay the high cost of this power to
enable the plant to continue operations.
Co-Chair Wilken remarked that the State had already invested
$300 million in this effort, although "it doesn't work and it
won't work." Additional appropriations for this project must
involve full review and discussion "in the light of day."
Co-Chair Wilken contended that instead, an opportunity would be
lost to transfer the plant back to the Joint Action Agency
comprised of all producers to allow them to retrofit the
facility with conventional technology. The producers are able to
do this and subsequently produce inexpensive power. The Golden
Valley Electric Association would invest $12.5 million in
conjunction with other investments to participate in achieving
this goal.
Co-Chair Wilken warned that although members of the Senate had
been silent on the provisions of Section 55, it would be
challenged in the House of Representatives. He suggested
consideration be given to the best interest of all parties of
the Railbelt Energy program rather than only to those "able to
put deals together". All parties should be allowed to
participate to produce the least expensive power for consumers
located between Homer and Fairbanks.
AT EASE 9:50:37 PM / 9:51:09 PM
Co-Chair Green responded that it was her understanding that "all
players were contacted and asked to come to the table on this".
She informed that, "68 percent of the railbelt consumers [are]
included in this appropriation and that one chose not to
participate in an equitable way is certainly discussion that
they can handle among themselves."
Co-Chair Wilken acknowledged the impact of the budget process on
Ginger Blaisdell, staff to Co-Chair Green.
Co-Chair Green thanked all who were involved in this legislation
for their efforts.
Co-Chair Wilken offered a motion to report CS SB 231, 24-
GS2034\L, as amended from Committee with individual
recommendations.
There being no objection, CS SB 231 (FIN) was REPORTED from
Committee.
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 9:53:49 PM
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