Legislature(2015 - 2016)SENATE FINANCE 532
03/16/2015 09:15 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB26 | |
| Overview: Fy 16 Budget Department of Fish and Game | |
| Overview: Fy 16 Budget Department of Education and Early Development | |
| Overview: Fy 16 Budget Department of Labor and Workforce Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 26 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 16, 2015
9:18 a.m.
9:18:05 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:18 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Sam Cotten, Commissioner, Department of Fish and Game;
Kevin Brooks, Deputy Commissioner, Department of Fish and
Game; Mike Hanley, Commissioner, Department of Education
and Early Development; Heidi Teshner, Director, Division of
Administrative Services, Department of Education and Early
Development; Elizabeth Nudelman, Director, School Finances
and Facilities, Department of Education and Early
Development; Heidi Drygas, Commissioner, Department of
Labor and Workforce Development; Paloma Harbour, Director,
Division of Administrative Services, Department of Labor
and Workforce Development;
PRESENT VIA TELECONFERENCE
SUMMARY
SB 26 BUDGET: CAPITAL
SB 26 was HEARD and HELD in committee for further
consideration.
FY 16 BUDGET OVERVIEWS:
DEPARTMENT OF FISH and GAME
DEPARTMENT OF LABOR and WORKFORCE DEVELOPMENT
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
9:18:30 AM
Co-Chair MacKinnon discussed housekeeping.
9:19:16 AM
SENATE BILL NO. 26
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF FISH and GAME
9:19:25 AM
SAM COTTEN, COMMISSIONER, DEPARTMENT OF FISH AND GAME,
testified that the three capital requests were an effort to
capture the $3 to $1 matching federal funds.
9:19:57 AM
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, explained that the three projects totaled $15.250:
$13.875, federal; $1.250, general fund match; $125,000,
Fish and Game funds.
Mr.Brooks spoke to the first project:
RN 60594
$11,750,000
Wildlife Management, Research and Hunting Access
Brief Summary and Statement of Need:
The department proposes a multi-year appropriation
approach to designate significant short-term
investments in the wildlife management infrastructure
to use a dramatic increase in available federal
Pittman Robertson Wildlife Restoration funding. The
multi-year appropriation will enable the department to
plan for targeted wildlife management, mapping, and
hunter access improvements.
The department will create grant agreements with the
U.S. Fish and Wildlife Service through the
Wildlife Restoration program. The following program
guidelines authorize this project initiative: restore
and manage wildlife for the benefit of the public;
build structures or acquire equipment, goods, and
services to provide public access for hunting or other
wildlife-oriented recreation; obtain data to guide and
direct the regulation of hunting.
Project Description/Justification:
The department has been apportioned a significant
increase in federal funding from the Pittman-Robertson
(PR) program. There are two subprograms within PR,
Wild life Restoration and Hunter Education. The
Wildlife Restoration subprogram is primarily used to
restore and manage wildlife for the benefit of the
public. It cannot be used for hunter education or for
shooting ranges; the Hunter Education subprogram is
available for those programs. Alaska receives funding
through a formula based on land mass and the number of
hunting license holders. Due to the geographic size
alone, Alaska receives the maximum of five percent of
the yearly gross receipts for Wildlife Restoration.
The Wildlife Restoration subprogram, 20 to 25 times
larger than Hunter Education, derives its receipts
from federal excise taxes on the manufacture of
handguns, long guns, ammunition, and archery
equipment. For long guns and ammunition, 100 percent
of the national gross receipts are set aside for this
program and 50 percent from handguns and archery
equipment. Sales nationwide on these items increased
dramatically over the past twelve to fifteen months
and consistently over the past seven years. Over seven
years the program has increased nationwide by over 230
percent. A 25 percent match is required from non-
federal sources to access funds and the division must
obligate and expend additional funding as it becomes
available. This appropriation does not request the
full required match. The general fund match included
will be used to initially launch federal grant
agreements. Pursuit of other sources of non-federal
funding will be required to meet federal grant
management guidelines (75 federal / 25 match).
9:22:01 AM
Co-Chair MacKinnon explained that the committee was
searching for value in what the administration was
proposing as investments in general fund dollars. She
requested information concerning any other source of funds
the department might have outside of general funds to use
as a match for the project.
Mr. Brooks replied that normally within the operating
component for wildlife, DF&G funds were used as match
funds. He said that the department had currently fully
allocated the revenue derived from hunting licenses and
tags. He opined that the funding options were limited to
general fund match and partnerships.
9:23:02 AM
Senator Dunleavy asked for an overview of the plans for the
funding request in particular areas.
Mr. Brooks related that the focus of this request included
Hunter Access, Sheep Management Plan, Wildlife Surveys -
Research and Genetics, Data Systems for Wildlife
Management, and Digital Mapping.
Senator Dunleavy asked whether there was a specific boat
launch, in a specific locale, that the department was
looking to upgrade.
Mr. Brooks replied that boater access projects would be
discussed in the next request.
9:23:50 AM
Co-Chair MacKinnon related that in a previous overview the
committee heard about a potential purchase of a hunting and
fishing property from a corporation.
Mr. Brooks said he would follow-up on the issue.
Co-Chair MacKinnon inquired about any fees paid by out-of-
state hunters who their game out of the state. She wondered
whether that was an available revenue source.
Commissioner Cotton replied that legislation had been
introduced that would address the issue.
9:25:30 AM
Vice-Chair Micciche understood that the capital request was
for funding for five-years of the program.
Mr. Brooks replied in the affirmative.
9:26:17 AM
Senator Bishop inquired whether the department would be
using drones in the sheep management program.
Mr. Brooks related that there had been discussions about
the issue of drones. He said that the aerial range of the
devices were being researched.
Senator Bishop asked about digital mapping.
Mr. Brooks stated that the department was a member of the
Alaska Geospatial Council and that the goal was to identify
wildlife populations that would benefit from the digital
mapping.
Senator Bishop requested an update about funding from the
previous year that had been used to purchase of top of the
line cameras to assist with wildlife population counts.
Mr. Brooks indicated that he would get back to the
committee with the information.
9:28:41 AM
Mr. Brooks spoke to the next request:
RN 30432
$3,000,000
Sport Fish Recreational Boating and Angler Access
Brief Summary and Statement of Need:
This project allows the Division of Sport Fish to
continue to construct and upgrade recreational power
boating and sport fish angler access facilities state
wide using Sport Fish Restoration apportionment funds
comprised of 75 percent federal assistance and 25
percent non-federal match. Federal regulations require
that 15 percent of the annual Sport Fish Restoration
(Dingell-Johnson/Wallop-Breaux Amendment)
apportionment be dedicated to projects that benefit
recreational power boaters. Projects include boat
launches, mooring floats, parking lots, restrooms,
fish cleaning facilities, and other services.
Project Description/Justification:
Sport Fish Restoration (SFR) funds require a match of
one state dollar for every three federal dollars, or a
state match of 25 percent of the total project cost.
The required match dollars are an investment that
produces an instant threefold return. Since federal
SFR funds are derived from excise taxes on the sale of
sport fishing tackle, this capital request is a user
pay/user benefit approach to providing access
facilities. The facilities that result from this
project improve recreational boating and sport fishing
angler access to the fish and wildlife resources of
the state. The Federal Assistance in SFR Act (16 USC
777-777k), also known as the Wallop-Breaux / Dingell
Johnson program mandates that 15 percent of the
federal funds available to the state be set-aside for
boating access improvement and development projects.
The annual amount of the federal receipts request is
based on a set five-year 15 percent average of
Alaska's federal apportionment of SFR funds,
(currently covering Federal FY2013-2017). Any portion
of the 15 percent set-aside for boating access
projects that is unused reverts back to the U.S. Fish
and Wildlife Service and is lost to the state;
therefore, it is in the state's best interest to
utilize these funds.
Sites will be selected so that all regions of the
state receive a share of this program. Site
development projects will be accomplished in
cooperation with local government units and other
state agencies. It has been the experience of the
department that local communities are very supportive
of better access facilities.
This project will provide some new access sites and
will renovate or upgrade other sites. Many of the
existing access sites throughout the state have either
reached the end of their useful life and/or do not
meet current standards. These sites no longer
adequately serve the public and are very expensive to
maintain. The facilities provided by this project will
be designed for low maintenance over a service life of
20 years. The facilities will also be accessible to
users with disabilities in compliance with the
Americans with Disabilities Act.
User fees can be established for new and renovated
facilities to place them on a self-supporting basis.
User fees will be charged where feasible and will be
used to offset the cost of site operation and
maintenance. Under federal regulations, user fees
charged at a facility developed with federal funds
must be used for the operation, maintenance, or
improvement of the facility. Fees collected in excess
of actual site operation and maintenance costs must be
credited back to the federal program. This ensures
that the users of the facility benefit from the fees
they pay.
Development and maintenance of sport angler and
recreational boating access facilities and
improvements is a core function and goal of the
Division of Sport Fish Strategic Plan. One of the
performance measures of this goal is to complete
construction of a total of five priority boating
access projects per year over a five year period.
Additional and enhanced recreational boating access
facilities are needed in order to provide improved and
greater sport fishing opportunity throughout the
state.
Mr. Brooks said that a list of anticipated projects for
2016 could be made available to the committee.
9:29:44 AM
Senator Dunleavy asked whether the discussed boat launches
would be new or existing.
Mr. Brooks replied that the request involved fixing
existing launches and building new ones; the department
received the appropriation annually, and then spread it
across launches throughout the state.
9:30:41 AM
Mr. Brooks continued to the final request:
RN AMD45482
$500,000
Shooting Range Deferred Maintenance
Brief Summary and Statement of Need:
The Division of Wildlife Conservation operates three
shooting range facilities; one outdoor range and two
indoor ranges. The indoor ranges are 12-14 years old.
Repairs to floors and roofs as well as painting is
anticipated in the next few years. The outdoor range
at Rabbit Creek needs shooting lane coverings and
electrical upgrades. Parking facilities often need
repair due to climatic conditions.
Prior Funding History / Additional Information:
The department will create grant agreements with the
U.S. Fish and Wildlife Service through the Hunter
Education subprogram of Wildlife Restoration. The
following program guidelines authorize this project
initiative: construct, operate, or maintain firearm
and archery ranges for public use.
Project Description/Justification:
The department has been apportioned a significant
increase in federal funding from the Pittman-Robertson
(PR) program. There are two subprograms, Wildlife
Restoration and Hunter
Education. The Hunter Education subprogram derives its
receipts from federal excise taxes on the manufacture
of handguns and archery equipment. 50 percent of the
national gross receipts are set aside for this
program. Alaska receives funding through a formula
based on state population. This entitles Alaska to one
percent of the yearly gross receipts. This amount of
funding can be used for a comprehensive hunter
education program and/or the development and
management of shooting ranges. A 3:1 match is required
from non-federal sources to access funds and the
division must obligate and expend additional funding
as it becomes available. The appropriation is
anticipated to provide a source of funding for the
significant repairs needed to facilities over the next
several years. The department proposes an approach to
designate significant short-term investments in the
program and infrastructure of shooting ranges to use
the significant increase in available PR funding
dedicated to Hunter Education. The multi-year
appropriation will enable the department to distribute
funding for targeted repairs with assured funding.
9:31:42 AM
Vice-Chair Micciche asked for a list of the three ranges,
their locations, and which was the outdoor range.
Mr. Brooks commented that the outdoor range was at Rabbit
Creek Shooting Range in Anchorage. He added that there was
an indoor range in Fairbanks and a smaller one in Juneau.
9:32:12 AM
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF EDUCATION and EARLY
DEVELOPMENT
9:32:46 AM
MIKE HANLEY, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, explained that he would be presenting a
single capital project and several major maintenance
projects.
HEIDI TESHNER, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
began with the first request:
RN 60679
$4,600,400
Kivalina K-12 Replacement School - Kasayulie
Brief Summary and Statement of Need:
This project provides for the design of a new
facility, approximately 34,425 square feet, to replace
facilities built between 1962 and 1984. The current
facility is at 175 percent capacity with 56 unhoused
students.
Prior Funding History / Additional Information:
This project is the final project in the 2011
Kasayulie v. State Consent Decree and Settlement
Agreement (3AN-97-3782 CI).
Ms. Teshner stated that the request would fund the school
design; the total cost to the state for the project would
be $50.4 million.
9:33:49 AM
Senator Dunleavy asked what would happen if the legislature
denied the request.
Commissioner Hanley explained that in the Kasayulie
settlement the state agreed to provide funding for the
construction of 5 schools; Kivalina was the final school to
be built. He said he had been working with the plaintiffs
to fund the project in phased form because the state was
not ready to fund the settlement in its entirety. He said
the case would most likely be reopened if the state failed
to fund the request.
Senator Dunleavy understood that discussions were still
underway as to the location of the school.
Commissioner Hanley replied in the negative. He said that
the location of the school was approximately 8 miles from
the barrier island that the community resided on.
9:35:13 AM
Senator Olson queried the repercussions of reopening the
Kasayulie case.
Commissioner Hanley related that based on a recent
discussion with the head of the Citizens for the
Educational Advancement of Alaska's Children (CEAAC), the
plaintiff in the case representing the rural district,
there was no desire to reopen the case. However, reopening
the case would be on the grounds that the state was
continuing to fund urban schools to a greater extent than
rural schools.
Senator Olson requested the cost to the state by reopening
the case.
Commissioner Hanley stated that the expense would be
whatever it cost to build the last school, plus legal fees.
Senator Olson asked whether the cost could decrease if the
court went into summary judgement.
Commissioner Hanley deferred the question to the Department
of Law (DOL).
9:37:01 AM
Senator Dunleavy spoke of the different costs of building
the school that had been discussed; $63 million, down from
$100 million. He asked whether the $4.6 million request was
in addition to the $63 million.
Commissioner Hanley clarified that the $4.6 million was the
first phase in the $50.4 million state share, He furthered
that Kivalina was part of the Northwest Arctic Borough,
which would pay for 20 percent of the expense.
Senator Dunleavy asked whether the borough was being forced
the pay for part of the school as a result of the lawsuit
settlement.
Commissioner Hanley explained that Kivalina had been on the
department's capital improvement projects list (CIP) prior
to the Kasayulie settlement. He said that the project had
been on the list under the understanding that the borough
had a 20 percent share. He furthered that when Kasayulie
was settled, the easiest way to address the department's
responsibilities to fund rural schools was to take the top
5 rural projects, one of which was Kivalina.
Sen. Dunleavy understood that the borough had to pay for a
portion of the cost to build the school.
Commissioner Hanley shared that the borough could go to the
voters to bond their project, or they could get on the CIP
list. He said that if they were on the CIP list, their
share would be 20 percent; if the voters voted for a bond
their share would be 30 percent.
Senator Dunleavy understood that the state's share of the
$63 million would be 50.4 million, which left $12.6 million
coming from the borough. He asked whether this funding
breakdown was part of the settlement.
Commissioner Hanley related that the funding amounts were
not a part of the settlement. He reiterated that the
department would fund the schools as they were prioritized
on the CIP list. He said that there were several REAA's on
the list, which contribute 2 percent, and others like
Kivalina that were already on the list with a higher local
contribution. He stressed that the lawsuit did not set an
amount, rather it said that the department would honor the
projects on the CIP list, and Kivalina was listed with a 20
percent share.
9:40:21 AM
Senator Dunleavy surmised that what had been agreed upon
was that the state would build a school in Kivalina.
Commissioner Hanley replied yes.
Sen. Dunleavy wondered how DEED arrived at the cost of the
school.
Commissioner Hanley related that there was a process to get
on the CIP list. He related that often applicants arrived
with a high number and then worked with the department to
come up with a final figure.
Senator Dunleavy asked what would happen if there was no
longer authority to cover the 70/30 split, if the committee
elected to suspend the program.
Commissioner Hanley stated that the removal of the 70/30
would not have an impact on the project. He said it would
eventually impact the funding for the REAA fund.
9:42:22 AM
Senator Olson asked whether the result of the lawsuit
brought by the City of Ketchikan against the State of
Alaska, over the state's education funding mandate, would
affect the cost of the school in Kivalina.
Commissioner Hanley responded that if the Supreme Court had
similar findings to the superior court, the state would
have to find an alternative way to collect local share,
which covered operating costs. He did not believe it would
affect the construction cost of schools.
9:43:21 AM
Co-Chair MacKinnon noted that the chosen property for the
school was 8 miles from the city center. She asked how the
site was chosen for the school, and if there was property
available closer to the center of the community.
Commissioner Hanley related that the school at Kivalina on
its original site had risen to the top of the CIP list in
2007 for a renovation project. He said that concerns about
the site were raised at that time by former Representative
Reggie Joule and it was decided then to not invest more
state funds at that site. He stated that the new site was
on higher, less vulnerable ground.
Co-Chair MacKinnon lamented that the state had not been
part of the process for the project, which would be of
great financial cost to the state. She opined that
department could set a cap on what boroughs could spend and
then "drop the bill at the feet of the legislature". She
asked what the square footage was of the standing school in
Kivalina.
Commissioner Hanley did not have the information. He noted
that the school was at 175 percent capacity.
Co-Chair MacKinnon commented that the new square footage
would be 34,500 square feet for 140 students. She
understood that the capacity numbers could be modified
based on the usable square footage inside the school. She
requested the number of square feet available for classroom
space.
9:47:28 AM
Senator Dunleavy asked Co-Chair MacKinnon whether legal
testimony would be provided to the committee concerning the
state's legal obligation on the issue.
Co-Chair MacKinnon replied that she would check the
availability of a representative from DOL to come before
the committee to discuss the Kasayulie case as well as the
lawsuit involving the state and Ketchikan.
9:48:50 AM
Senator Dunleavy asked for a timeline on the Kivalina
construction project.
Commissioner Hanley related that the access road was a
hindrance, and furthered estimated that construction would
begin in 5 to 6 years. He said that the state had a
commitment to fund the project in a manner that would allow
the school to be constructed without delay. He offered to
provide a letter from CEAAC that could speak to the issue.
9:49:59 AM
Vice-Chair Micciche felt that decisions about the
construction of the school were being made without any
regard for logic and reason. He asked whether there was a
cost-per-student model used in consideration of the
project.
Commissioner Hanley indicated that such a model was not
used; however, there was a square footage model that
limited the size of the school.
Vice-Chair Micciche asked whether there was a way to reopen
the CIP request to reevaluate upgrading the old school in
an effort to avoid the cost of the road construction. He
characterized the project as an expansion of the community
of Kivalina.
Commissioner Hanley said that he could not answer the
question at this time. He stated that his goal was to honor
the commitment that had already been made by the state
through the settlement.
Vice-Chair Micciche felt that the committee's hands were
tied due to the decisions of a past legislature. He
requested an evaluation of the CIP request.
9:52:58 AM
Co-Chair MacKinnon noted that the community of Kivalina had
been suffering significant erosion issues, she queried the
relationship of the existing school to the coastline. She
asserted that the legislature should have as much control
as possible ever the money it expended.
9:53:43 AM
Senator Dunleavy commented that it was a complex issue
because it involved a rural school in an eroding community.
He articulated that the legislature had long ago ceded
control of the situation and was now only receiving bills,
with an obligation to pay.
9:55:09 AM
Vice-Chair Micciche suggested that the project, with the
construction of the new road, was an attempt to build the
school as a catalyst to move the village. He said if that
were the case he would be more supportive of the project.
9:56:09 AM
Co-Chair Kelly asked Senator Olson how far Kivalina was
from Kotzebue and Point Hope.
Senator Olson replied that Kotzebue was approximately 75
miles away, Point Hope was about 80 miles.
9:56:35 AM
Senator Hoffman recounted a past discussion of the
department's decision to take Kivalina and put it aside
because the school could not be built within the next 5
years. He asked how the department planned to proceed with
the utilization of the funds for the rest of the rural
schools.
Commissioner Hanley stated that it did not make sense to
fully fund the $50.4 million at this time, but to do the
construction in phases. He said that schools were ranked on
a point system and that Kivalina was currently zeroed out
and at the top. He relayed that the commitment to fund
Kivalina had been recognized, but that it should not block
the path of funding for other schools on the list.
9:58:51 AM
Co-Chair MacKinnon asked whether the legislature was
required to use a particular amount of money for rural
schools based on what was being spent on urban schools.
Commissioner Hanley related that in 2011 the legislature
passed a bill to set money aside on an annual basis, based
on the amount of money that was appropriated through the
70/30 program for communities that were able to bond and
for communities that were not able to bond (the REAA Fund).
He said that the REAA fund was populated at approximately
$38 million per year, with a cap of $70 million. He related
that the fund would ensure equity in the funding between
urban and rural schools.
10:00:29 AM
Co-Chair Kelly thought that "education by lawsuit" was not
the best way to educate Alaska's children. He furthered
that determining what to spend in rural Alaska based on
what was spent in urban Alaska was not a good way to fund
schools. He felt that the problems in Kivalina would not be
fixed with a $60 million school. He said that there was no
guarantee that a new school would result in better
education for the children in Kivalina.
10:02:04 AM
Senator Dunleavy acknowledged the uniqueness of the
situation. He thought that more legal information was
necessary in order for the body to proceed on the issue. He
added that the children of Kivalina deserved an education
as much as any other children in the state, but that the
mechanics of the issue needed to be examined.
10:02:46 AM
Senator Olson forecasted that the kindergarteners currently
attending school in Kivalina would be halfway through their
K-12 education by the time the state broke ground on a new
facility. He wondered how the department planned to deal
with the current problem of over-capacity.
Commissioner Hanley responded that there had been recent
renovations done in order to allow the school to be
functional. He said that students continued to be added
each year, and that the teacher's lounge and the library
had been converted into classroom space. He did not
anticipate that renovation funds would be provided for the
current facility while the school was listed on the CIP
list.
Senator Olson related he was recently in Kivalina, and
observed that smaller buildings had been added surrounding
the main building, which presumably added to utility costs.
10:04:34 AM
Commissioner Hanley stressed that, lawsuits aside, based on
the statutes in place to fund new projects, Kivalina would
be at the top of the capital request list.
10:05:18 AM
Senator Dunleavy pointed out that the Northwest Arctic
Borough should be listed on the recipient page as the
recipient and not the Lower Kuskoquim School District.
10:05:48 AM
Ms. Teshner spoke to the next two capital requests:
RN AMD45658
$3,941,192
School District Major Maintenance Grants
RN AMD60751
$0
Reappropriation for School District Major Maintenance
Grants
Brief Summary and Statement of Need:
The FY2016 Department of Education and Early
Development appropriation in the amount of $3,491,192
and reappropriation not-to-exceed $10,000,000 will
fund the first four projects on the January 2015
Capital Improvement Projects list for School Major
Maintenance:
1) Petersburg Middle/High School Boiler Repair -
$24,565.00
2) Andrew K Demoski K-12 School Renovation, Nulato -
$10,637,668
3) Nome City School District - Districtwide Lighting
Replacement - $192,813
4) Bethel Campus Boiler Replacement - $2,636,146
10:06:45 AM
Co-Chair MacKinnon asked if there was another revenue
source aside from the general fund that could be allocated
for the maintenance requests; she suggested the Public
School Trust.
Ms. Teshner understood that, historically, major
maintenance dollars came from the general fund.
ELIZABETH NUDELMAN, DIRECTOR, SCHOOL FINANCES AND
FACILITIES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
noted that there was one funding source from the cigarette
tax that was used toward a municipal debt appropriation.
She added that the Public School Trust Fund was small, and
was currently use towards the foundation program funding.
She said that money from that trust was specifically
designated for education.
Co-Chair MacKinnon asserted that she had been reviewing the
stipulations surrounding the trust, and it appeared that
there could be some funds available that could be a funding
source for the major maintenance projects.
10:08:47 AM
Senator Dunleavy understood that the school in Nulato had
32 students.
10:09:24 AM
Senator Bishop stated that there were over 40 students in
the school, which had originally been built to house over
100.
Senator Dunleavy stated that, in the future, when
constructing schools it would be important to consider
growth and future capacity. He contended that student
populations in most places in Alaska were dropping.
10:10:22 AM
Vice-Chair Micciche expressed the desire to investigate the
Public School Trust, and the potential land trust that had
been vetoed, as funding sources for education.
Co-Chair MacKinnon noted the request.
10:11:04 AM
Co-Chair MacKinnon pointed out to the committee that items
1, 3, and 4 on the project list were reimbursements. She
wondered if the state was responsible for refunding cities
that had paid for their own major maintenance.
Ms. Nudelman explained that projects could incur expenses
up to three years prior to submitting an application, while
still being considered in the application process. She
furthered that the projects rated high and had been
completed within the past three years.
Co-Chair MacKinnon considered the expense another
uncontrollable cost that landed at the feet of the
legislature and should be taken up in policy discussions.
10:12:33 AM
Co-Chair MacKinnon noted that the Nulato project had been
on the major maintenance list for 10 years, and asked why
it had not ranked higher, sooner.
Ms. Nudelman stated she could provide the information at a
later date.
10:13:07 AM
Senator Olson relayed that the maintenance at Nulato would
alleviate a possible health issue due to frozen toilets
that had not been adequately fixed, which forced the use of
honey buckets and heightened the risk of the spread of
Hepatitis A.
10:14:08 AM
Ms. Teshner shared that the State Library, Archives, and
Museums Building (SLAM) project was on schedule and on
budget with the soft opening in May of 2016.
10:15:22 AM
AT EASE
10:21:30 AM
RECONVENED
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF LABOR and WORKFORCE
DEVELOPMENT
10:21:59 AM
HEIDI DRYGAS, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, introduced the presentation,
"Department of Labor and Workforce Development Capital
Budget Overview, Senate Finance, March 16, 2015"(copy on
file). She turned to Slide 1, which listed the department's
only capital request:
RN AMD60306
$0
Reappropriation for AVTEC Information Technology
Systems Refresh
Brief Summary and Statement of Need:
The unexpended and unobligated balance, estimated to
be $530,000, of the appropriation made in sec. 1, ch.
17, SLA 2012, page 121, lines 12-13 (Third Avenue
Dormitory Replacement - $16,075,000) is reappropriated
to the Department of Labor and Workforce Development
for the Alaska Vocational Technical Center information
technology systems refresh.
Ms. Drygas stated that in FY 13 the department received a
capital appropriation to replace Alaska Vocational
Technical Center's (AVTEC) 3rd Avenue dormitory. She
related that the only item left on the project was the 1
percent required for art, which was scheduled for
completion by June 30, 2015. She said that the systems
refresh was necessary to replace outdated equipment and
maintain security compliance requirements.
10:23:51 AM
Senator Bishop asked whether the upgrades included both
administrative and classroom upgrades.
Commissioner Drygas replied both.
Senator Bishop queried whether the dormitory was going to
be finished on budget.
Commissioner Drygas relayed that the department was very
confident that the dormitory would come in on budget. She
reiterated that the only remaining expense was the 1
percent for art.
10:24:50 AM
Co-Chair MacKinnon wondered why the 1 percent for art was
being considered, given the state's current fiscal climate.
She though that the committee should get to see the art
that Alaska's money was being spent on.
Commissioner Drygas related that she had a picture of the
piece on her phone, for future reference. She added that
the 1 percent for art expense was a state requirement.
10:25:43 AM
Senator Dunleavy clarified that there was a legal
requirement.
Co-Chair MacKinnon suggested that during the current trying
fiscal environment it might be necessary to reevaluate the
1 percent for art requirement.
Senator Dunleavy pontificated that policy should drive
programs and then programs should drive the facility. He
said that in education this was rarely the case. He noted
that there were a number of labor training facilitates
across the state. He asked how the programs they offered
were determined.
10:27:21 AM
Commissioner Drygas explained that the department was
looking into the issue and had created a Career and
Technical Education Taskforce to examine programs for
inefficiencies.
10:29:01 AM
Senator Olson asked whether the dormitory would still open
if the required 1 percent for art was not funded.
Commissioner Drygas replied in the affirmative.
10:29:35 AM
Co-Chair MacKinnon surmised that the piece of art in
question had already being commissioned.
Commissioner Drygas said yes.
Co-Chair MacKinnon lamented that the legislature had placed
the responsibility on itself through statute, which she
believed needed to be examined.
10:30:14 AM
Vice-Chair Micciche asked what triggered the 1 percent.
Commissioner Drygas believed that state capital
appropriations triggered the requirement for facilities.
Vice-Chair Micciche surmised that of the $42 million
appropriated since 2008 for AVTEC, $420,000 had been set
aside for art.
Commissioner Drygas replied that the requirement was for
new facilities only, and that the amount for art in the
dormitory was less that 1 percent of the appropriation.
10:31:22 AM
Senator Bishop believed that the full committee understood
that AVTEC was out of compliance with its computer
security. He expressed concern for security breaches.
10:31:59 AM
Senator Dunleavy referred to Alaska Statute, chapter 27,
35.27.020 Art Requirements. He said that the statute
related to all state facilities, with preference given to
Alaska Native art.
Co-Chair MacKinnon read the statute:
AS 35.27.020. Art Requirements For Public Buildings
and Facilities.
(a) A building or facility constructed after June 30,
1975, or remodeled or renovated after June 30, 1975,
shall include works of art, including but not limited
to sculptures, paintings, murals or objects relating
to Native art.
(b) The department, before preparing plans and
specifications for buildings and facilities, shall
consult with the Alaska State Council on the Arts
regarding the desirability of inclusion of works of
art.
(c) At least one percent or, in the case of a rural
school facility, at least one-half of one percent of
the construction cost of a building or facility
approved for construction by the legislature after
September 1, 1977, will be reserved for the following
purposes: the design, construction, mounting and
administration of works of art in a school, office
building, court building, vessel of the marine highway
system, or other building or facility which is subject
to substantial public use.
(d) A building or facility with an estimated
construction cost of less than $250,000 is exempt from
the requirements of this chapter unless inclusion of
works of art in the design and construction of the
building or facility is specifically authorized by the
department.
(e) The artist who executes these works of art shall
be selected by the architect for the department with
the approval of the department, after consultation
with the Alaska State Council on the Arts and the
principal user of the public buildings or facilities.
(f) The artist who executes these works of art in the
public schools shall be selected by the superintendent
of a school district in which a public school is to be
built with the approval of the school board. Should
the department find in the best interest of the state
that the selection of the artist who executes these
works of art by the superintendent may result in a
cost overrun to the state or delay of construction,
the department shall make the selection of the artist
in consultation with the superintendent.
(g) The architect, superintendent, department, and the
Alaska State Council on the Arts shall encourage the
use of state cultural resources in these art works and
the selection of Alaska resident artists for the
commission of these art works.
10:33:17 AM
Co-Chair Kelly thought that the problem with the statute
was that it paid for bad art. He said that pieces by Fred
Machetanz or Eustace Zeigler hanging in public facilities
were more than likely a result of the 1 percent for art
statute, which he qualified were a "good thing". He opined
that there was "a lot of stuff that just ain't art………beauty
was in the eye of the beholder, but we all pretty much
agree on ugly." He asserted that he was a supporter of the
1 percent, but that people should be discerning about what
was called "art".
10:35:12 AM
Co-Chair MacKinnon related that it was commendable that
past legislative bodies had been investing in Alaskan
artists.
10:36:28 AM
Senator Olson asked how many students would occupy the
AVTEC dormitory.
Commissioner Drygas answered that the building could house
up to 160 students.
Senator Olson asked how full it would be immediately after
construction was complete.
Commissioner Drygas said she would get back to the
committee with the information.
Senator Olson stated that AVTEC's ability to continue
providing services had come under question in the past few
years.
10:37:41 AM
Commissioner Drygas presented Slide 2, "Capital
Appropriation Status Report (CASR)", which showed that the
department had 15 open capital appropriations, totaling
$42.5 million. She said that 92 percent of the funding was
expended or encumbered, 3 projects were pending final
billings before they could be closed, and another 5
projects, not including the reappropriation request, would
be completed by the end of the fiscal year (Slide 3).
10:37:56 AM
Commissioner Drygas furthered that $2.7 million were still
unobligated, but the funding was necessary to complete the
projects; of that funding, $1.4 million were just received
in FY 15 and activity on the project would pick up in the
spring. She related that there were $530,000 that were
anticipated to be available for lapse, or the
reappropriation for the IT request.
10:38:42 AM
Commissioner Drygas moved to Slide 5, which read that the
department's deferred maintenance back log comprised 9
projects, totaling $15.1 million. She relayed that the
department was not requesting an FY 16 deferred maintenance
appropriation, but was focusing on completing projects that
had already been funded. She shared that the AVTECH
facility's maintenance team had utilized the appropriations
for the following:
· student housing remodeling and mold remediation
· cafeteria and dish room remodel
· retrofitted air handling system and new ventilation
system to the new Applied Technology campus
· replacement of boilers and underground aging fuel
tanks
10:39:36 AM
Commissioner Drygas said that given the age of AVTEC's
facilities there were many building needs well beyond the
scope of general maintenance, which represented AVTEC's
greatest facility maintenance challenge; continued
investment in deferred maintenance would be needed to
ensure that ground was not lost in addressing facility
needs and avoiding the need for replacement facilities. She
stressed that the facility needed to be fully functional to
provide a safe and uninterrupted educational environment in
order to deliver program services to train Alaskans for
Alaska's jobs. She said that a capital project on the
horizon for AVTEC was an upgrade to the maritime simulator,
which would cost $1.3 million; the project would be
necessary to upgrade AVTEC's 3, full mission, bridge
simulator hardware and software. She relayed that AVTEC was
currently actively seeking federal or private funding
opportunities to accomplish the $1.3 million upgrade.
10:40:37 AM
Vice-Chair Micciche felt that more prevention work could be
done through the maritime simulator exercise than all other
efforts combined. He warned of the potential of losing a
crude carrier due to challenging weather, noting that the
training facilities saved the state from potentially
dangerous incidences. He revealed to the committee that
AVTEC had been responsive on needed services for industries
in the state that employed many Alaskans.
10:41:43 AM
Senator Olson asked how many maritime simulators were
currently in the state.
Commissioner Drygas said that there was only one.
PALOMA HARBOUR, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,
relayed that there was a computer based simulator in
Kechikan, but that it was not a full mission bridge, which
was what AVTEC offered. She asserted that the two were not
the same. She added that there was a privately owned
simulator in Anchorage that was not available for training
Alaskans entering into the workforce.
10:42:54 AM
Co-Chair Kelly asked whether the facility had welding
simulators.
Ms. Harbour responded that that department had partnered
with training providers through a grant program to purchase
welding equipment, but the equipment ultimately belonged to
the training providers.
Co-Chair Kelly understood that there were a couple of
simulators in the state that could travel from site to
site. He said that they were great things to have.
10:43:46 AM
Co-Chair MacKinnon disclosed that her husband was the
Executive Director of the Continuing Education Foundation
and served on their board, which was one of the
organizations that owned a welding simulator.
10:44:23 AM
Senator Olson asked how many students could be accommodated
by the maritime simulator.
Ms. Harbour stated that about 500 students went through the
program per year. She explained that the program was an on
demand program that provided contract training.
10:44:56 AM
Senator Bishop asked for a full update on the maritime
program in order to highlight the value of the program for
the committee.
10:45:27 AM
Commissioner Drygas responded that the update could be
provided.
Co-Chair MacKinnon discussed housekeeping.
10:46:48 AM
ADJOURNMENT
10:47:07 AM
The meeting was adjourned at 10:47 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 031615 DOL&WFD Capital Budget Overview.pdf |
SFIN 3/16/2015 9:15:00 AM |
SB 26 |