Legislature(2007 - 2008)SENATE FINANCE 532
04/18/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB100 | |
| SB76 | |
| SB53 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 53 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 100 | ||
| = | SB 76 | ||
MINUTES
SENATE FINANCE COMMITTEE
April 18, 2007
9:05 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:05:17 AM.
PRESENT
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Joe Thomas
Senator Fred Dyson
Senator Kim Elton
Senator Donny Olson
Also Attending: SENATOR JOHNNY ELLIS; GABE ACEVES, Staff to
Senator Johnny Ellis; MIKE LESMANN, Community Relations Manager,
Office of Children's Services, Department of Health and Social
Services; MICHAEL CURRAN, Program Coordinator, Office of Faith
Based and Community Initiatives, Office of the Commissioner,
Department of Health and Social Services; JOHN CRAMER, Director,
Division of Administrative Services, Department of Military and
Veterans Affairs; EDDIE JEANS, Director, School Finance and
Facilities Section, Department of Education and Early
Development; TOM LAWSON, Director, Division of Administrative
Services, Department of Fish and Game; KAREN REHFELD, Director,
Office of Management and Budget; SAMUEL THOMAS, Director,
Division of Administrative Services, Department of Commerce,
Community and Economic Development;
Attending via Teleconference: From an offnet location: JAMES
LYNCH, University of Alaska.
SUMMARY INFORMATION
SB 100-SUBSTANCE ABUSE/MENTAL HEALTH PROGRAMS
The Committee heard from the sponsor. The bill was reported from
Committee.
SB 76-TUITION FOR CERTAIN CHILDREN
The Committee heard from the sponsor, the University of Alaska
and the Department of Health and Social Services. The bill was
reported from Committee.
SB 53-BUDGET: CAPITAL, SUPP. & OTHER APPROPS
The Committee heard overviews on the capital budget requests of
the Department of Commerce, Community and Economic Development,
the Department of Military and Veterans Affairs, the Department
of Education and Early Development, the Department of Fish and
Game, the Office of the Governor, the Department of Health and
Social Services, the Department of Labor and Workforce
Development, and the Department of Natural Resources. The bill
was held in Committee.
9:06:32 AM
CS FOR SENATE BILL NO. 100(STA)
"An Act relating to substance abuse and mental health
disorder prevention and treatment programs; and relating to
long-term secure treatment programs for persons with
substance abuse or co-occurring substance abuse and mental
health disorders."
This was the second hearing for this bill in the Senate Finance
Committee.
9:06:37 AM
Co-Chair Stedman announced intent to report this bill from
Committee. He noted receipt of a revised fiscal note to replace
the two previous fiscal notes. The new fiscal note indicates the
cost to implement this legislation would be zero.
9:07:35 AM
SENATOR JOHNNY ELLIS, Sponsor of the bill, testified that the
Senate State Affairs Committee substitute of this bill retains
the "non-controversial" provisions of the original bill. He
listed these as treatment priority for pregnant women, non-
discrimination against faith-based oriented treatment programs
and public facilities, provided they meet the same criteria as
qualifying secular programs, and requirement of research-based
and evidence-based programming for substance abuse treatment.
The latter provision is intended to ensure that effective
programs were funded, and represents a national trend. These
provisions would update or provide "fine tuning" of the State's
statutes governing substance abuse treatment.
9:08:38 AM
Senator Ellis told of the provision contained in the original
version of the bill and deleted from the committee substitute
pertaining to utilization of the current involuntary commitment
statute for "secure detox beds". This provision would have
allowed for a pilot project of ten to 12 beds providing
detoxification treatment in a secure facility.
Senator Ellis informed that he would convene a meeting of
"stakeholders" including the Executive Branch and "other
potential funders, to attempt to create a "longer term project".
He relayed interest expressed by Senate Finance Committee
members to create an expanded rural program located in
additional communities.
9:09:32 AM
Co-Chair Stedman reiterated that the revised fiscal note is in
the amount of zero.
9:09:40 AM
Senator Olson asked the timeframe in which a pilot program would
be instituted.
Senator Ellis indicated intent that funding for the program
would be included in the FY 09 operating budget to be considered
in the next legislative session. The delay is a disappointment
to advocates, many who argue such a program should have been
implemented "years ago". The program would be directed to
intervene in situations involving the most "dangerous substance
abusers" and those incurring the highest cost to government and
organizations.
9:10:57 AM
Senator Huggins offered a motion to report the bill from
Committee with individual recommendations and new fiscal note.
There was no objection and CS SB 100(STA), was REPORTED from
Committee with a new zero fiscal note dated 4/17/07 from the
Department of Health and Social Services, Behavioral Health
Administration.
9:11:34 AM
CS FOR SENATE BILL NO. 76(HES)
"An Act establishing a higher education savings program for
eligible children who were placed in out-of-home care by
the state; and providing for confidentiality of identifying
information of a beneficiary under the program."
This was the first hearing for this bill in the Senate Finance
Committee.
9:11:52 AM
Co-Chair Stedman commented that although this legislation would
have no impact on the adult population, the benefits could be
significant for future generations.
9:12:07 AM
SENATOR JOHNNY ELLIS, Sponsor of the bill, testified that this
proposal had been offered in previous legislatures, although had
not been passed into law. The legislation before the Committee
had "even stronger support" and "no known opposition." This bill
would create the A.S.P.I.R.E. Program, an acronym of Alaska's
Youth Succeed When People Invest Resources in Education. The
pilot program was designed to connect churches, community
groups, nonprofit organizations, businesses and individuals,
with foster children for the purpose of providing "educational
opportunities beyond high school".
Senator Ellis told of the approximately 2,000 children of
various ages who reside in "out of home placement" and are
commonly referred to as foster children. Each year approximately
100 of those foster children "age out of the system". Foster
parents could not be expected to fund the college education of
these youth given the expenses these parents incur in raising
the children. Nor could grandparents or other relatives be
expected to establish higher education funds. Additionally,
"government can't do everything."
Senator Ellis stated that the education of these youth could be
addressed through a "non-governmental approach". These youth
have "very few educational opportunities and some pretty bad
outcomes" once they reach the age of legal adulthood and are no
longer served by the children's services system and move "from
loving homes".
Senator Ellis advised that the ASPIRE program utilized a similar
program administered in the state of Missouri as a model, "as a
way to connect a lot of the compassion and generosity" of the
private sector. Contributors could essentially adopt youth for
educational purposes. This legislation "is making use… of the
award winning, brilliant, terrific 529 college savings
accounts." He qualified that the aforementioned statement was
somewhat misleading because the funding could be expended at any
educational institute for any approved educational expense.
Although administered by the University of Alaska, the funding
could be utilized for any educational program in the nation.
This would provide flexibility for foster children to "achieve
their potential."
9:15:17 AM
Co-Chair Stedman requested further explanation of how the funds
contributed to this program could be expended.
9:16:04 AM
GABE ACEVES, Staff to Senator Johnny Ellis, testified that once
established, the funds held in these savings accounts could be
expended for any form of further education. This would include
not only university costs, but also vocational institutions and
community college courses.
9:17:04 AM
Co-Chair Stedman listed examples of vocational occupations as
welders, machinists, auto and diesel mechanics and hairdressers.
Co-Chair Stedman asked the portability of the savings account in
the event that the designated youth opted not to further his or
her education.
9:17:32 AM
Mr. Aceves explained that the accounts would be administered and
controlled by the State. If the youth designated on an account
did not utilize the funds, the beneficiary could be changed.
9:18:10 AM
Co-Chair Stedman pointed out that the accounts commonly known as
529 college savings plans are structured to allow for
transferability in the event that the child does not expend the
funds. Therefore, the provisions of this bill would not
implement a new procedure and flexibility would be ensured.
9:18:40 AM
JAMES LYNCH, University of Alaska, testified via teleconference
from an offnet location that he was involved with the creation
of the original University of Alaska college savings plan.
Accounts established in the regular plan typically are
transferable to relatives of the initial beneficiary. However,
accounts established by a faith based organization or as a
scholarship could be transferred to any eligible beneficiary.
The portability of the ASPIRE accounts would be permitted to any
institution of higher education eligible to receive federal
financial aid funding.
9:20:44 AM
Co-Chair Stedman understood the structure of the original 529
college savings plans is intended to allow parents, grandparents
or other relatives to assist in the funding of their children's
college education.
9:21:05 AM
Mr. Lynch affirmed. Higher education had traditionally been
funded through loans; however costs have accelerated at a
significantly faster rate than income. Those students of lower
economic status would qualify for financial assistance and those
students of higher economic status could afford the costs. The
college savings plan system is intended to address those
students from middle income families.
Mr. Lynch expressed that Alaskans receive discretionary income
through the Alaska Permanent Fund. The dividend applications
include an option to allow recipients to designate up to one-
half of the dividend to a college savings plan. Approximately 66
percent of participants are from families with an annual income
of less than $50,000.
9:22:57 AM
Co-Chair Stedman surmised that this legislation would model the
original college savings plan to allow accounts to be
established for foster children by corporations and
organizations.
9:23:39 AM
MIKE LESMANN, Community Relations Manager, Office of Children's
Services, Department of Health and Social Services, testified to
the Department's involvement and support of this bill. He
continued to read his testimony into the record as follows.
Children that become wards of the State are sometimes not
financially prepared to enroll in postsecondary educational
opportunities. The ASPIRE program would create the
potential for their community to assist them in that
endeavor.
If we believe that our children are our future, then this
is very important legislation to all of Alaska.
9:24:45 AM
Senator Olson referenced the sponsor statement indicating that
current statutes relating to confidentiality must be amended to
allow for the private contributions for education. He asked if
this issue had been a problem in the past.
9:25:07 AM
Mr. Lesmann elaborated that this bill would amend AS 47.10.093
to allow the Department to disclose information regarding
children in State custody to the University of Alaska so
accounts could be established for these children.
9:25:42 AM
Senator Olson concluded therefore that confidentiality issues
had not arisen.
Mr. Lesmann affirmed.
9:25:46 AM
Senator Ellis reaffirmed that no such problems had occurred but
that the statutory change is necessary to allow the ASPIRE
program to be implemented.
9:26:02 AM
MICHAEL CURRAN, Program Coordinator, Office of Faith Based and
Community Initiatives, Office of the Commissioner, Department of
Health and Social Services, testified in support of this
legislation. He detailed his credentials working in the "social
justice" and "community building" fields, as a teacher and
ordained priest. He shared an experience in reading an obituary
for a 21-year old former student who had committed suicide. This
person had been a foster child, was "bright and intelligent",
aspired to be an astronomer, and who could have been accepted
into any university. Instead, at the time of his death, this
person was homeless and had had no opportunity to receive the
education "he deserved." The ASPIRE program could have changed
this.
Mr. Curran characterized children as a "most precious commodity;
they are our future." Foster children should have the same
opportunities as a child "born in privilege" or at least in a
"stable home situation".
9:30:35 AM
Senator Elton asked if the account were considered an asset to
the beneficiary how the existence of these funds would affect
the ability of that person to secure other financial aid.
9:31:26 AM
Senator Ellis indicated he would research the matter and provide
a response.
9:31:46 AM
Co-Chair Stedman cited language in subsection (a)(1) of Section
47.05.100 Higher education savings program, inserted by Section
1 of the bill on page 1, line 10. This provision required the
program to include "a central office, dedicated to faith-based
and community services, for development and marketing of the
program". He requested an explanation of the envisioned office
and the issues it would address.
9:32:12 AM
Senator Ellis acknowledged that the provision "sounds expensive"
to implement; however, the program would be located within the
existing Office of Faith Based and Community Initiatives.
9:32:33 AM
Mr. Aceves affirmed. The existing Office would be tasked with
undertaking outreach efforts to promote the program. The Office
has extensive contact with churches and social services
organizations.
9:33:02 AM
Co-Chair Stedman next referenced Sec.47.05.400(a)(6) on page 2
lines 9 through 11, pertaining to a procedure for monitoring
success of the program. He asked the sponsor to describe the
intended procedure.
9:33:39 AM
Senator Ellis supported the missions and measures methodology,
which applies to all State agencies. This bill does not provide
specifics about the procedure that would be implemented for the
ASPIRE program. However, he assumed that the number of accounts
established, the amount of funds donated and the number of youth
participating would be included in any assessment of the
program's success. These factors would be "easy to measure".
9:34:47 AM
Co-Chair Stedman suggested that the number of accounts, the
appreciation of the balances of these accounts, and the amount
of donations made by "corporate Alaska" could be utilized.
9:35:10 AM
Senator Ellis anticipated that the Office of Faith Based and
Community Initiatives would benefit from its efforts to measure
success, as the program would be a "flagship" for the Office's
intentions.
9:35:53 AM
Co-Chair Stedman opined that some youth were not prepared to
begin postsecondary education immediately after graduating from
high school and wait until they are 23 years of age. He noted
the deadline for beneficiaries to participate would be the age
of 30 years. He asked what changes would be made to a fund
established for a person who does not attend an institute of
higher education by the age of 31 years.
Mr. Aceves responded that at age 30, the beneficiary would be
changed. Mr. Lynch, the Division of Legal and Research Services,
and himself, determined this age to be appropriate. The existing
college savings plan provides that a beneficiary could retain
the account indefinitely; however, the intention for the ASPIRE
program would allow for other beneficiaries to participate in
the event the original beneficiary opted against doing so.
Mr. Aceves qualified that many youth transitioning from foster
care are not prepared to immediately continue their education.
Many are attempting to establish themselves "in regular life".
9:38:04 AM
Co-Chair Stedman understood the regular "529's" are subject to a
federal requirement that the beneficiary must begin
participation by the age of 30 years.
9:38:20 AM
Mr. Aceves deferred to Mr. Lynch who Mr. Aceves recalled
testified to a previous committee that the original college
savings plan accounts could be held "forever".
9:38:55 AM
Co-Chair Stedman stated he would review the issue.
9:39:18 AM
Co-Chair Stedman asked if donors would have options to specify a
beneficiary or make a donation that could be utilized to assist
multiple foster children.
9:39:51 AM
Senator Ellis relayed this issue was addressed with the program
administered by the state of Missouri. In some instances
corporations donate a large amount to the program to be utilized
for unspecified foster children. Other accommodations could be
made in the ASPIRE program for a donation to be specified for a
child of certain circumstances, such as a girl from Rural Alaska
who was a victim of abuse and neglect. In other instances, a
donor could know a child directly and choose to specify
contributions to that beneficiary.
Mr. Aceves continued that this issue was discussed extensively
with the Department and the decision was reached to establish a
procedure to allow a donor to direct contributions to a specific
child. In most cases, churches and other organizations would
unlikely have direct relationships with specific children and
therefore donations would be to unnamed beneficiaries.
Beneficiaries would be selected by administrators based on the
age of the child and length of time before transition from State
custody. Additionally, a mechanism would allow for anonymous
donors.
9:42:09 AM
Co-Chair Stedman directed attention to the fiscal note providing
for a $41,400 appropriation to be expended on set up costs and
marketing efforts.
9:42:34 AM
Senator Ellis stated the amount was not significant, but would
be necessary. In consultation with the Office of Faith Based and
Community Initiatives, he determined that the costs could not be
absorbed within the existing budget. Funding would be required
for the program to be successful. Of the amount requested,
$20,000 would be utilized for "additional staff time" and the
remainder would be expended on "small print", television and
radio "package" to advertise the program.
9:43:58 AM
Co-Chair Stedman suggested that information on the program also
be provided by the University of Alaska.
9:44:20 AM
Senator Ellis stated he would approach the University for
inclusion of ASPIRE information on its website.
9:44:33 AM
Senator Thomas understood that the funds would be disbursed
directly to the postsecondary education institution rather than
to a third party.
Mr. Aceves detailed that the State would serve as the holder of
the account with the University of Alaska disbursing the funding
to other institutes.
9:45:10 AM
Co-Chair Stedman asked if the funds could be utilized to pay
tuition costs and purchase books and other materials.
Mr. Aceves affirmed and added that housing and other living
expenses would qualify as well.
Senator Ellis assured that the funds could not be used by the
beneficiary to host a "big party".
9:45:25 AM
Senator Olson asked the accreditation requirements of a
postsecondary education institute qualified to accept these
funds and whether a private institution that does not receive
federal funding would qualify.
9:46:07 AM
Mr. Aceves responded that a qualifying institution must qualify
to receive federal financial aid for its students. This is
unrelated to federal funding appropriated directly to an
institution.
9:46:57 AM
Co-Chair Hoffman offered a motion to report SB 76, 25-LS0443\M,
from Committee with individual recommendations and accompanying
and new fiscal notes.
There was no objection and CS SB 76 (HES) was REPORTED from
Committee with zero fiscal note #1 from the University of
Alaska, and a new fiscal note dated 3/22/07 for $41,400 from the
Department of Health and Social Services.
AT EASE 9:47:23 AM / 9:52:01 AM
9:52:16 AM
SENATE BILL NO. 53
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman directed that "lessor questions" on the budget
requests should be posed after the meeting to his staff.
9:55:02 AM
KAREN REHFELD, Director, Office of Management and Budget,
communicated that she would be available to respond to
questions.
9:56:45 AM
Department of Commerce, Community and Economic Development
Alaska Energy Authority Energy Projects
$30,000,000 Federal Receipts
$1,200,000 General Fund Match (G/F Match)
$500,000 Interagency (I/A) Receipts
Reference No.: 38950
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Multiple federally funded energy programs of Bulk Fuel
Upgrades, Rural Power Systems Upgrades, Alternative Energy
and Energy Efficiency projects. This program contributes to
the Department's mission of promoting a healthy economy and
strong communities by providing economic growth in the
communities it serves.
SAMUEL THOMAS, Director, Division of Administrative Services,
Department of Commerce, Community and Economic Development,
testified to this item referencing information contained in the
accompanying Project Description/Justification, [copy on file.]
10:01:17 AM
Community Block Grants
$6,030,000 Federal Funds
$70,000 G/F Match
Reference No.: 38946
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Multiple federally-funded programs, enabling Commerce to
provide grants to communities and non-profits that provide
services and/or benefit the low- to moderate-income
individuals. This program contributes to the Department's
mission of promoting a healthy economy and strong
communities by providing economic growth in the communities
it serves.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:03:08 AM
Language Section: NPR-A [National Petroleum Reserve-Alaska]
Impact Grant Program
$13,000,000 NPR-A Funds
Reference No.: AMD38948
Category: Development
Location: Barrow
Election District: Arctic
Estimated Project Dates: 07/01/2007 - 06/30/2012
Grants to communities for public facilities and services.
Priority is given to those communities directly or severely
impacted by the leases and development of oil and gas
within the National Petroleum Reserve. This program
contributes to the Department's mission of promoting a
healthy economy and strong communities by providing
economic growth in the communities it serves. This project
has been amended to revise the amount anticipated from the
National Petroleum Reserve fund from an original estimate
of $40 million to a more current estimate of $13 million.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:05:16 AM
Kodiak Launch Complex Infrastructure
$15,000,000 Alaska Aerospace Development Corporation (AERO)
Receipts
Reference No.: 41789
Category: Development
Location: Kodiak
Election District: Kodiak
Estimated Project Dates: 07/01/2007 - 06/30/2012
The Kodiak Launch Complex requires modification and
maintenance to adequately support the satellite launch
program. This program contributes to the Department's
mission of promoting a healthy economy and strong
communities by providing economic growth in the communities
it serves.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
AT EASE 10:05:58 AM / 10:06:36 AM
10:07:00 AM
Manufacturing Extension Program
$806,401 Business License & Corporate Receipts
$806,401 Federal Receipts
Reference No.: 40242
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
The Federal Manufacturing Extension Program (MEP) will
support Alaska's small and medium sized manufacturers
throughout the state by providing them access to
knowledgeable manufacturing and business specialists
throughout the United States. This program contributes to
the Department's mission of promoting a healthy economy and
strong communities by providing economic growth in the
communities it serves.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:08:25 AM
Language Section: Electrical Emergencies
$240,000 General Funds
$90,000 Rural Electric Funds
Reference No.: AMD32590
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
To provide technical support when an electrical utility has
lost, or will lose, the ability to generate or transmit
power to its customers and the condition is a threat to
life, health, and/or property in the rural community. This
program contributes to the Department's mission of
promoting healthy economy and strong communities by
providing economic growth in the communities it serves.
This amendment adds $240,000 in general funds to this
project. Historically, an average of $330,000 annually has
been needed to provide for electrical emergencies.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:09:42 AM
Language Section: NPR-A Impact Grant Program
$13,000,000 NPR Fund
Reference No.: AMD38948
Category: Development
Location: Barrow
Election District: Arctic
Estimated Project Dates: 07/01/2007 - 06/30/2012
Grants to communities for public facilities and services.
Priority is given to those communities directly or severely
impacted by the leases and development of oil and gas
within the National Petroleum Reserve. This program
contributes to the Department's mission of promoting a
healthy economy and strong communities by providing
economic growth in the communities it serves. This project
has been amended to revise the amount anticipated from the
National Petroleum Reserve fund from an original estimate
of $40 million to a more current estimate of $13 million.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:11:58 AM
Alaska Energy Authority - Napakiak-Bethel Intertie Right-
of-Way and Site Control
$84,000 General Funds
Reference No.: AMD43323
Category: Development
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/6012
The Alaska Energy Authority owned electrical distribution
line between Napakiak and Bethel is in the process of being
upgraded from a single distribution line to a three-phase
line through a federal grant to Napakiak Ircinraq Power
Company. To comply with the terms of the federal grant,
State funds are required to complete the right of way
acquisition and to cover associated site control costs.
This amendment is being requested as it was recently
discovered that the right-of-way filings had not been
finalized and needs to be done before the federal project
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:13:36 AM
Four Dam Pool Power Agency
$28,000,000 AK Cap Inc
Reference No.: AMD42941
Category: Natural Resources
Location: Southeast Alaska
Election District: Southeast Districts 1-5
Estimated Project Dates: 07/01/2007 - 06/30/2012
This amendment is a name change from Alaska Energy
Authority - Swan Lake-Lake Tyee Intertie to clarify that
this appropriation to the Four Dam Pool Power Agency will
be a Grant to Named Recipient (AS 37.05.316) through AEA.
The Swan Lake-Lake Tyee Intertie is a major infrastructure
project in Southern Southeast Alaska. This 57-mile project
will connect the Lake Tyee hydroelectric project south of
Wrangell with the Swan Lake hydroelectric facility near
Ketchikan. The project is a critical link of the Southeast
Alaska Intertie Project envisioned to interconnect all of
Southeast Alaska. When completed, a primary transmission
line will be in place and operational from Ketchikan to
Petersburg.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:15:57 AM
Morris Thompson Cultural and Visitor Center - Construction
$3,000,000 General Funds
Reference No.: AMD40500
Category: Development
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will provide a grant for partial funding for
the construction of the Morris Thompson Cultural and
Visitors Center. This program contributes to the
Department's mission of promoting strong communities. This
amendment is requested to help finish the construction
phase of this project.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:17:14 AM
Data Security and Encryption Information Technology Project
$200,000 Receipt Supported Services (RSS)
Reference No.: AMD42927
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Banking and Securities requires data security and
encryption enhancements.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:19:16 AM
Co-Chair Stedman asked for an explanation of Reference Number
#38948.
Mr. Thomas repeated his references to the Project
Description/Justification.
10:21:30 AM
Institute of the North
$100,000 General Funds
Reference No.: AMD41953
Category: Education
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will provide funding to the Institute of the
North, which is an educational organization that advances
issues related to economic growth and sustainability in
Alaska and throughout the Arctic region.
Mr. Thomas testified to this item referencing information
contained in the accompanying Project Description/Justification,
[copy on file.]
10:23:26 AM
Senator Olson asked the reason the initial $40 million
appropriation to the National Petroleum Reserve-Alaska (NPR-A)
Grant had been reduced to $13 million.
Mr. Thomas responded that he was unfamiliar with the details and
that "something happened" with regard to "the land issue". He
would research the matter and provide additional information.
10:24:27 AM
Department of Military and Veterans Affairs
10:24:32 AM
Army Guard Facilities Projects
$$750,000 Federal Receipts
$750,000 G/F Match
Reference No.: 42900
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
With 237 Alaska Army National Guard buildings at 96 various
locations, with an average age of approximately 30 years,
deferred maintenance and renewal and replacement are a high
priority. Alaska National Guard preventative maintenance is
performed on a schedule, yet building components have a
limited life requiring eventually renewal and replacement.
This project requests $750,000 federal and $750,000 state
funds to be applied to over $17.4 million backlogged
deferred maintenance projects statewide. Life safety
enhancements end results, ability to protect our citizens
and infrastructure, will continue to improve within our
performance management framework.
JOHN CRAMER, Director, Division of Administrative Services,
Department of Military and Veterans Affairs overviewed this
item. The backlogged deferred maintenance projects have been
addressed in segments.
10:25:37 AM
Anchorage Readiness Center Security Compliance
$250,000 Federal Receipts
$50,000 G/F Match
Reference No.: 42930
Category: Public Protection
Location: Fort Richardson
Election District: Military
Estimated Project Dates: 07/01/2007 - 06/30/2012
Security modification of the Alaska National Guard
Readiness Center located at Ft. Richardson is necessary to
comply with the Alaska Army National Guard Anti-Terrorism
Force Protection (ATFP) facility requirements. Due to
recent security regulations outlined in Army Regulation
(Ms. Ryder) 190-11, the paved road running parallel to the
front of the Readiness Center can no longer be used for
non-emergency vehicular traffic. Additionally,
implementation of a security barrier is necessary. This
project is required to meet life safety enhancements and
directly relates to protection of National Guard facility
infrastructure within our department's performance
management framework.
Mr. Cramer explained this project. Use of the roadway would be
limited to emergency vehicle access.
10:26:34 AM
Military Youth Academy Deferred Maintenance, Renewal and
Replacement
$1,000,000 General Fund
Reference No.: AMD35774
Category: Education
Location: Fort Richardson
Election District: Military
Estimated Project Dates: 07/01/2007 - 06/30/2012
Alaska Military Youth Academy (AMYA) ChalleNGe program
currently has 22 buildings totaling 61,805 sq feet and an
average building age of 30 plus years. The building design
function has become inadequate for the purpose of training
students. This request will fund the modification of the
Academy's ChalleNGe facilities to improve technical skills
training and educational opportunities. Projects to meet
usable standards include deferred maintenance, renewal,
replacement and life safety.
Mr. Cramer spoke of the increased number of cadets participating
in the program. The funds would be utilized to upgrade latrines,
showers and other necessary facilities.
10:27:27 AM
State Homeland Security Grant Program
$9,500,000 Federal Receipts
Reference No.: 42901
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
The 100% federally funded State Homeland Security grant
program is annually awarded by the U.S. Department of
Homeland Security. Programs include homeland security
planning, equipment, training, and exercises to support
local first responders, private sector critical
infrastructure and state preparedness. Citizen preparedness
and life safety end results will be enhanced and improved
within our performance management framework.
Mr. Cramer overviewed this item.
10:27:54 AM
National Guard Counterdrug Support Program
$100,000 Federal Receipts
Reference No.: 42898
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This program participates in the U.S. Department of Justice
Asset Forfeiture Program. This federal program's primary
purpose is to deter crime by depriving criminals from
profits and proceeds from their illegal activities. Citizen
protection and life safety end results will improve without
our performance management framework.
Mr. Cramer explained that these funds would be expended to
purchase equipment to assist in detection and other law
enforcement efforts.
10:28:34 AM
Compliance Cleanup Site Restoration
$5,000,000 Federal Receipts
Reference No.: AMD43330
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2013
The Compliance Cleanup Site Restoration projects address
soil and groundwater contamination issues at numerous
Alaska Army National Guard facilities throughout the state.
The total current year (FY2007) estimate of the compliance
cleanup liability is $28.5 million. Program funds are used
to investigate and cleanup contaminated sites. Projects are
100% federally reimbursable through the National Guard
Bureau Army National Guard (ARNG) compliance cleanup
program and effectively address the environmental
compliance liabilities associated with ARNG training and
facility operations on federal, state and third party
properties.
Mr. Cramer outlined this request.
10:29:07 AM
Co-Chair Hoffman asked if local residents and businesses were
employed for the cleanup efforts in rural communities.
10:29:21 AM
Mr. Cramer replied that local contractors are utilized whenever
possible. Requests for proposals specify a preference for local
hire. As most projects are not large, this is frequent.
10:29:49 AM
Co-Chair Hoffman asked the status of construction of the Bethel
Readiness Center.
10:30:01 AM
Mr. Cramer noted the project was not included in the funding
requests for FY 08. The Department was in the process of
securing federal funding.
10:30:12 AM
Co-Chair Hoffman asked the expected timetable for completion of
the project.
10:30:19 AM
Mr. Cramer replied that project would likely be completed in two
years and assured that the completion date would be no later
than the year 2011.
10:30:36 AM
Senator Thomas recalled some projects in villages located on the
Seward Peninsula. In anticipation of those projects, a training
program was implemented to allow residents to obtain skills to
undertake these projects. He suggested similar programs be
provided to the villages in which the Site Cleanup projects are
located nearby.
10:31:43 AM
Department of Education and Early Development
EDDIE JEANS, Director, School Finance and Facilities Section,
Department of Education and Early Development testified to the
seven projects submitted by the Department. Five projects
involve school construction and two involve renovation. All had
received State funding previously but additional funding is
required due to increased costs caused by unforeseen factors
such as the impacts of Hurricane Katrina.
10:32:53 AM
Russian Mission K-12 School Replacement
$5,082,761 General Funds
Reference No.: AMD43328
Category: Education
Location: Russian Mission
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will construct a new 31,891 square foot K-12
facility to replace the existing facilities, built between
1960 and 1988. The school is currently operating at 182
percent capacity and is expected to increase to 226 percent
by FY 2014. This project was funded in FY 2008 at
$18,485,899. The original project estimates have been
determined to be inadequate due to escalating construction
costs associated with building materials and transportation
costs. Additional funding is required to complete
construction of the new school.
Mr. Jeans described this project.
10:33:29 AM
Bethel Regional High School Renovation, Phase 2
$4,458,824 General Funds
Reference No.: AMD36594
Category: Education
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will complete renovation at the 75,972 square
foot facility built in 1971. Phase 2 work includes toilet
room renovations and interior work in the "B" and "D"
wings. Interior work includes mechanical systems,
electrical systems, and architectural finishes demolition
and replacement. The original project estimates have been
determined to be inadequate due to escalating construction
costs associated with building materials and transportation
costs. Additional funding is required to complete the
renovation of this school.
Mr. Jeans outlined this request.
10:34:05 AM
Arctic Village K-12 Replacement Completion
$3,276,004 General Funds
Reference No.: AMD36736
Category: Education
Location: Arctic Village
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will construct a 16,256 square foot facility
on a new site. The 2,152 square foot elementary building,
c. 1950 and its 1970 addition have been identified as
unsafe and are in danger of roof collapse. This building
will be demolished. The high school, built in 1980, will
cease to be used as an education related facility and will
either be transferred or converted to teacher housing. The
school is currently operating at 135 percent capacity and
is projected to reach 165 percent by FY 2013. The original
project estimates have been determined to be inadequate to
complete construction of this school due to escalating
construction costs associated with building materials and
transportation costs.
Mr. Jeans highlighted this project.
10:34:30 AM
Howard Valentine K-12 School Replacement Completion,
Coffman Cove
$1,923,207
Reference No.: AMD36737
Category: Education
Location: Coffman Cove
Election District: Ketchikan
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will build a 10,304 square foot K-12
replacement school. The current elementary school and
kindergarten classroom are two portables build in 1970 and
1977 totaling 2,172 square feet. They are suffering from
dry rot and have multiple deficiencies. The 2,302 square
foot secondary school will cease to be used as an education
facility. The school is currently operating at 179 percent
of capacity and is projected to reach 224 percent by FY
2014. Planning and design were funded in FY 2003 and
construction was funded for FY 2008. The original project
estimates have been determined to be inadequate due to
escalating construction costs associated with building
materials and transportation costs.
Mr. Jeans listed this funding request.
10:34:53 AM
D.R. Kiunya Memorial School Improvement, Kongiganak
$5,645,676 General Funds
Reference No.: AMD36741
Category: Education
Location: Kongiganak
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will construct a 16,404 square foot addition
and renovate the original 15,617 square foot school built
in 1976. The school is currently operating at 181 percent
capacity and is expected to reach 219 percent by FY 2014.
The planned addition will include classrooms, specialty
classrooms, a gymnasium, locker and shower rooms, and
storage, circulation and mechanical spaces. The original
project estimates have been determined to be inadequate due
to escalating construction costs associated with building
materials and transportation costs. Additional funding is
required to complete construction at this facility.
Mr. Jeans overviewed this project.
10:35:18 AM
Fort Yukon Gym Renovation Completion
$1,442,554 General Funds
Reference No.: AMD36709
Category: Education
Location: Fort Yukon
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will renovate the 11,524 square foot gymnasium
built in 1960. Work includes repairs to the foundation and
superstructure. The roof, interior doors, flooring,
ceiling, and plumbing fixtures will be replaced in addition
to the mechanical, electrical, and communications systems.
This project was previously funded in FY 2003 and for FY
2006. The original project estimates have been determined
to be inadequate due to escalating construction costs
associated with building materials and transportation
costs. Additional funding is required to complete
construction at this facility.
Mr. Jeans reviewed this request.
10:35:44 AM
Kilbuck Elementary Replacement School, Bethel
$6,152,451 General Funds
Reference No.: AMD36710
Category: Education
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will replace the 43,843 square foot elementary
school originally built in 1960 with three subsequent
additions, the last in 1968. The original project estimates
have been determined to be inadequate due to escalation
construction costs associated with building materials and
transportation costs. Additional funding is required to
complete construction at this school.
Mr. Jeans highlighted this project.
10:36:29 AM
Co-Chair Stedman suggested new school construction in both rural
and urban locations utilize a prototype school design with
possibly four options to accommodate for population and specific
climates. State funding for school construction is substantial
and the State should contract with an architect to develop
designs that could be replicated in multiple communities.
10:38:50 AM
Mr. Jeans informed that a bond reimbursement review committee
includes two legislators, one of whom is Co-Chair Hoffman, which
addresses this issue. A position paper found that prototype
schools are feasible for locations in Anchorage and Fairbanks
because these communities have multiple elementary schools.
However, the different climates and terrains of the state
prevent the general application of prototype schools.
Co-Chair Stedman requested the position paper, announcing he
would talk with Co-Chair Hoffman about the matter. The cost of
the new school in Coffman Cove is of concern to local residents
because, in addition to the capital costs, future operational
costs would be incurred. He commended the prototype school
approach.
10:41:20 AM
Mr. Jeans noted that the Department collaborates with the US
Department of Energy to secure the location of new power
facilities near a school to allow the use of "waste energy" by
that school.
Co-Chair Stedman commented that this practice was also employed
by the Department of Transportation and Public Facilities.
10:42:01 AM
Senator Thomas considered the opportunity not necessarily to
construct "cookie cutter schools", but rather to review designs
to ensure integrity of roofs and other structural components as
well as energy efficiency.
10:42:57 AM
Senator Elton pointed out the cost "escalation" of the Coffman
Cove project was 36 percent. He asked whether the Department of
Education and Early Development had attempted to reconfigure
this project, or any of the other projects, to contain the
costs.
10:43:47 AM
Mr. Jeans told of the cost estimating program run on all
projects. The impacts of Hurricane Katrina were unforeseen.
Additionally the Legislature had provided capital funding two
years in advance, but did not appropriate funds to account for
the increased costs of the out year.
10:45:09 AM
Department of Fish and Game
Delete: Mendenhall Wetlands State Game Refuge Lands
Conservation
$0
Reference No.: AMD42112
Category: Natural Resources
Location: Juneau (Mendenhall Valley)
Election District: Juneau/Mendenhall Valley
Estimated Project Dates: 07/01/2007 - 06/30/2010
$1,253,500 is currently in the FY 08 capital budget request
for Mendenhall Wetlands State Game Refuge Lands. Federal
funding was not approved for this project and this
amendment eliminates the funding request.
TOM LAWSON, Director, Division of Administrative Services,
Department of Fish and Game, explained the removal of this
funding request.
10:45:49 AM
Sport Fisheries and Recreational Boating Access
$2,100,000 Federal Receipts
$700,000 Fish/Game Funds
Reference No.: 30432
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2013
Provides funds to the Sport Fisheries RDU to construct
boating and support fishing access facilities throughout
the state. The Sport Fisheries Restoration (SFR) program
requires that 15% of the federal funds available to Sport
Fisheries be used for recreational boating access
development. If these funds are not used for this purpose,
they are lost to the state. Support for boating and sport
fishing access facilities contributes to the Division of
Sport Fisheries outcome to sustain recreational fishing
opportunities while optimizing social and economic benefits
from these opportunities. Access projects directly address
Strategy #5, to maintain access to public resources.
Mr. Lawson cautioned that if the federal funds were not
expended, they would revert to the US Fish and Wildlife Service.
10:47:02 AM
Language: Sport Fisheries Hatchery Construction Investment
Earnings
$3,300,000 Misc Earnings Fund
Reference No.: 42983
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2010
The Alaska Sport Fishing Construction Account (fund 13211)
was established by law as per AS 16.05.130(f) after the
sale of State of Alaska Sport Fishing Revenue Bonds (issued
under AS 37.15.765 - 37.15.799) in April of 2006. This
request would allow the Division of Sport Fisheries to
utilize investment earnings of the Alaska Sport Fishing
Construction Account for construction of new hatchery
facilities in the Anchorage and Fairbanks areas, as well as
increased king salmon production in Southeast Alaska.
Mr. Lawson stated this language is necessary to address
unanticipated cost increases.
10:48:23 AM
Statewide Deferred Maintenance, Repair, Upgrades, and
Equipment
$1,000,000 General Funds
Reference No.: AMD43322
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This request provides for repair, maintenance and
renovation of department facilities statewide; vessel and
aircraft repair and maintenance; upgrades to facilities;
and the purchase of field equipment. An amendment is being
requested as the FY 08 capital budget does not include
funding for these projects.
Mr. Lawson pointed out that such projects had been listed
individually in previous fiscal year funding requests.
Office of the Governor
Pacific Coastal Salmon Recovery Fund
$22,000,000 Federal Receipts
Reference No.: 33647
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2010
Federal fiscal year 2007 (FFY07) appropriations legislation
contains funding for the Pacific Coastal Salmon Recovery
Fund (PCSRF). Coordination of individual state funding is
through the respective Governor's offices. The Alaska
portion of the FFY07 appropriation is estimated to be $22.0
million. Funding comes to the state through a Memorandum of
Understanding with the U.S. Department of Commerce
designating Alaska Department of Fish and Game as the
program manager.
Mr. Lawson relayed that although this item was categorized as an
Office of the Governor project, the Department of Fish and Game
was requested to provide the overview.
Mr. Lawson highlighted the Project Description/Justification
accompanying this item, which reads as follows.
Federal fiscal year 2006 is the seventh year of PCSRF
funding for Alaska. Alaska's program for administrating
these funds is the Southeast Sustainable Salmon Fund.
The State-Federal Memorandum of Understanding (MOU) was
revised in 2002, 2003 and 2005 to provide for distribution
of Congressionally designated projects and administration
of the remaining funds.
The State intends to apply the salmon funds over a five-
year period. The overall objective is to assure that Alaska
salmon and salmon fisheries are sustainable and continue to
provide jobs and income for Alaskan families and
communities.
The Office of the Governor, through the Division of
Administrative Services, will provide overall
administration and accountability in accord with the
general intent of the federal legislation. Consistent with
applicable laws and regulations, the State may award
grants, direct funding to State agencies, or enter into
contracts to implement the priority recommendations
regarding salmon habitat stewardship and restoration,
salmon research and monitoring, and increasing economic
opportunities for salmon fishing communities and fishermen
in Southeast Alaska.
No match is required for these federal funds.
Mr. Lawson informed that most of the funding is dedicated to
specific projects. The funds would be utilized to ensure that
Alaskan salmon and fisheries were sustainable and would continue
to provide income.
10:51:33 AM
Senator Elton asked why the appropriation was made to the Office
of the Governor given that the Department of Fish and Game would
be "making decisions" in administering the program.
10:51:53 AM
Mr. Lawson responded that this arrangement was made by the
federal government and dictated that the funding would be
appropriated to the governors' of the participating Western
states for allocation to the appropriate agencies.
10:52:15 AM
Senator Elton requested a list of the projects undertaken in the
past three to four years.
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 10:53:11 AM
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