Legislature(2011 - 2012)SENATE FINANCE 532
04/11/2011 03:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 11, 2011
3:18 p.m.
3:18:12 PM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 3:18 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Miles Baker, Staff, Senator Stedman.
SUMMARY
SB 46 BUDGETS: CAPITAL
SB 46 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 46
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
3:18:19 PM
Co-Chair Hoffman proposed committee substitute, work draft
#27-GS1740/I, Kane, 4/11/11. Co-Chair Stedman OBJECTED for
purpose of discussion.
3:19:28 PM
MILES BAKER, STAFF, SENATOR STEDMAN, explained that
committee members were presented with a packet of reports
in addition to the Committee Substitute (CS) version I.
Mr. Baker stated that Section 1 includes the FY12
governor's proposed capital budget and legislative
additions. Section 4 includes a $100 million section of the
FY 12 capital budget with a fuel trigger mechanism
attached. Section 7 includes the energy package component
of the FY 12 capital budget, which totals approximately
$470 million. Section 10 addresses cruise head tax related
projects. Section 13 of the bill includes K-12 education
infrastructure investment portion equaling approximately
$400 million. The total of the CS is $2.875 billion, $1.65
billion as unrestricted general funds, $46 million as
designated general funds and $96 million of other state
funds and $1.8 billion of federal funds.
3:23:48 PM
Mr. Baker revisited Page 3, Line 24 and the intent
language, which is repeated in other sections of the bill
including those addressing grants to municipalities, grants
to named recipients, or grants to unincorporated
communities. The topic was discussed with the Office of
Management and Budget (OMB) as a way to simplify those
small dollar value grants. The language states that "it is
the intent of the legislature that the Department of
Commerce, Community and Economic Development (DCCED)
eliminate the requirement for narrative and financial
quarterly reporting for any grant of $50 thousand or less."
The department must receive signed certification from the
grant recipient to comply with all other terms of the grant
agreement. The full grant amount will be used for the
intended purpose and the department must make a single
upfront payment for any grant of $50 thousand or less.
3:25:14 PM
Mr. Baker pointed out Page 15, Line 23 and the intent
language addressing the $20 million appropriation for the
Port of Anchorage expansion project. He continued with Page
29, Line 22 and the Section for the public library
construction program. The grants total $16,967,000 for
public library programs. He mentioned another appropriation
for deferred maintenance for the Fairbanks library that is
not part of the grant program and does not appear on the
mentioned section.
Mr. Baker discussed Page 47, Line 19, which includes a
section for deferred maintenance for statewide hatchery
facilities totaling $11,250,000. He noted that the
committee began the initiative for the statewide hatchery
facilities last year. He continued with Page 64, Line 28
addressing the $34.7 million for the tax revenue management
system.
3:27:38 PM
Mr. Baker pointed out the structure of the bill where Page
147, Line 11, Section 39(a) illustrates contingency
language. The first contingency section refers to Section
7, which includes the legislature's comprehensive energy
package. The contingency states that all appropriations in
the section are considered a single package. If any
appropriation in the section does not become law, then none
of the appropriations in the section become law. He added
that Page 100 exhibits the language stating that "it is the
intent of the legislature that the following appropriations
and projects are needed to carry out the state's energy
policy described in AS 44.99.115," which was passed last
year. "As the energy policy states, the legislature
recognizes the immense diversity of the state's geography,
cultures, and resource availability and the need to
identify and assist with development of the most cost
effective long term sources of energy for each community
statewide, therefore the legislature intends that the
package of appropriations and projects listed below are all
necessary to achieve a statewide balance in addressing the
state's diverse energy needs."
3:30:24 PM
Mr. Baker pointed out the second contingency shown in
Section 39(b), which addresses all appropriations in
Section 4 resulting in $100 million of the governor's
original capital request. The projects are contingent on
the FY12 year to date average price of ANS crude exceeding
$150 per barrel as of October 1, 2011.
Mr. Baker mentioned Section 13, Page 119 and the K-12
education portion of the CS. The intent of the legislature
is that the appropriations are considered as a single
comprehensive K-12 education infrastructure investment
program for FY 2012. The section shows grants for school
construction around the state including the Department of
Education and Early Development (DEED) major maintenance
grant fund. The governor originally requested $20 million
for major school maintenance and the CS funds an additional
$255 million of major maintenance for a total of $275
million. The section includes Page 131 under school
construction grant funds, an addition of two grant funds.
The CS adds $48 million for two additional schools.
3:33:38 PM
Mr. Baker noted Line 17, Section 17 and the $60 million
appropriation to the Alaska Gasline Inducement Act (AGIA).
The appropriation is $100 million less than the governor's
request. The funds provide enough to take the estimated
reimbursements for AGIA through the end of the FY 11
calendar year. He mentioned Line 20 and $2.4 million of
general funds and $2.4 million of Denali Federal Funds for
the emerging energy technology fund. Line 26, Section 18
documents $2.5 million for the alternative conservation
revolving loan fund, which was a portion of last session's
SB 220. He highlighted Line 28 and the $30.6 million for
the renewable energy fund. The Alaska Energy Authority
(AEA) had a total of $36 million in ranked grants
available, so this bill funds the full amount. The projects
are allocated out in the energy package portion of the
bill, Section 7. The appropriation is less than $36 million
because $6 million was already available in the AEA fund.
3:36:06 PM
Mr. Baker discussed page 136, Section 21 including a grant
for $486 thousand to the Department of Labor and Workforce
Development (DLWD) for work in the film and television
industry. Section 23 begins the legislative reappropriation
of previous legislative grants. He concluded with Page 146,
Section 37 including the language for the lapsing FY 11
legislative appropriations. He pointed out subsection (a)
and the scope change for the $750 thousand Bristol Bay
drainage study. The scope has been broadened and extended
until FY 14. Subsection (b) appropriates $900 thousand of
lapsing legislative operating to Legislative Budget and
Audit (LB&A) for FY 12 operating costs. Subsection (c)
includes $450 thousand to add to funding for a large scale
mining study from last year. The final two appropriations
of $2.23 million as estimated lapsing balance as of June
30, 2011 appropriates $10 million to legislative council to
begin scoping and planning a system wide redesign of BASIS
and a document management system to integrate legislative
finance appropriation reporting into the bill status and
reporting system.
3:38:35 PM
Co-Chair Stedman stated that the $2.9 billion proposed
capital budget was similar to that of last year in the
amount requested. He mentioned the transfer of $5 million
allocated for savings. He commented that the proceedings
allow for the savings of $2 for every $1 spent in capital
appropriations. The substantial savings will benefit future
generations.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:40:45 PM
Senator Ellis expressed appreciation for the committee's
commitment to the full major maintenance for schools. The
list included rural and urban projects. He thought it a
historic achievement to fund the entire list in one year.
He also applauded the historic commitment to the energy
projects.
SB 46 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 3:41 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2011 04 11 Rep 1 SCS SB46 HD Summary.pdf |
SFIN 4/11/2011 3:00:00 PM |
SB 46 |
| CSSB 46 Version I 041111.pdf |
SFIN 4/11/2011 3:00:00 PM |
SB 46 |
| 2011 04 11 Rep 2 SCS SB46 Agency Summary.pdf |
SFIN 4/11/2011 3:00:00 PM |
SB 46 |
| 2011 04 11 Rep 3 SCS SB46 Statewide Totals.pdf |
SFIN 4/11/2011 3:00:00 PM |
SB 46 |