Legislature(2017 - 2018)SENATE FINANCE 532
04/11/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB107 | |
| SB23 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 23 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 107 | ||
SENATE FINANCE COMMITTEE
April 11, 2017
8:58 a.m.
8:58:00 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 8:58 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
Senator Mike Dunleavy
ALSO PRESENT
Miles Baker, Associate Vice President, Government
Relations, University of Alaska.
PRESENT VIA TELECONFERENCE
Greg Meissner, Harbormaster, Wrangell Harbor Department,
Wrangell; Clay Hammer, Chair, Wrangell Port Commission,
Wrangell; Carol Rushmore, Acting Borough Manager, Wrangell;
Jodi Mitchell, CEO, Inside Passage Electric Cooperative,
Juneau; Peter Mjos, Self, Anchorage; David Krause, Self/The
Wilderness Society, Anchorage; William Harrington, Self,
Anchorage; Chris Reitan, Superintendent, Galena City School
District, Galena.
SUMMARY
SB 23 APPROP: CAPITAL BUDGET
SB 23 was HEARD and HELD in committee for further
consideration.
SB 107 ALASKA CAPITAL INCOME FUND
SB 107 was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal
note from the Senate Finance Committee.
SENATE BILL NO. 107
"An Act relating to the Alaska capital income fund."
8:59:09 AM
Vice-Chair Bishop MOVED to REPORT SB 107 with individual
recommendation and attached fiscal note.
SB 107 was REPORTED out of committee with a "do pass"
recommendation and with one new zero fiscal note from the
Senate Finance Committee.
8:59:43 AM
AT EASE
9:01:46 AM
RECONVENED
SENATE BILL NO. 23
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
9:01:53 AM
^PUBLIC TESTIMONY
9:02:39 AM
GREG MEISSNER, HARBORMASTER, WRANGELL HARBOR DEPARTMENT,
WRANGELL (via teleconference), spoke in support of the
Municipal Harbor Fund. He announced that Wrangell's
Shoemaker Bay Harbor replacement project was ranked number
one by the Department of Transportation and Public
Facilities (DOT/PF). He stated that the $5 million in the
proposed budget would cover the request, and guarantee the
completion of the project. He stated that Shoemaker Bay
represented approximately 35 percent of Wrangell's moorage
capacity. The existing float system was unsafe, out of
code, and partially condemned. He stressed that a new float
system would allow Wrangell to provide safe and up-to-code
moorage; and the new float walls would allow for some
growth. He stated that the governor's plan to create a
sustainable Alaska was dependent on communities becoming
sustainable themselves. He stressed that the coastal
communities needed safe and useful marine infrastructure.
He remarked that Wrangell would commit half of the state's
contribution. He shared that the intention of turning the
facilities over to municipality was to ensure state funds.
9:05:20 AM
CLAY HAMMER, CHAIR, WRANGELL PORT COMMISSION, WRANGELL (via
teleconference), spoke in support of the Municipal Harbor
Matching Grant Fund. He stressed that Wrangell had been
proactive in responsibly maintaining its port harbor
facility since assuming ownership from the state. He
remarked that the infrastructure represented a key and
vital component of Wrangell's survival. He shared that
Wrangell had recently increased its moorage rates by 30
percent to ensure adequate reserves to forward fund
maintenance and future replacement, which represented a
commitment to maintaining the facilities. He shared that
Wrangell had worked to secure funding for the replacement
of the harbor. He announced that the Shoemaker Bay Harbor
had outlived its useful life to the point of becoming a
liability. He stated that it was Wrangell's second largest
mooring facility and played an important role in the local
commercial, charter, and sport boat fleet.
9:06:53 AM
CAROL RUSHMORE, ACTING BOROUGH MANAGER, WRANGELL (via
teleconference), spoke in support of the Municipal Harbor
Matching Grant Fund. She stressed that the marine industry
in Wrangell was the largest private sector employment in
the community. The success of its economy was greatly
affected by the marine infrastructure. The grant program
was a critical economic investment to benefit the economic
opportunities statewide. She stressed that the program was
a 50/50 match, so the $5 million would leverage $6.2
million or more of local funds. She remarked that it was
also a competitive grant program, so all programs must meet
strenuous review and criteria. She stressed that the
project was on the top of the program's list.
9:08:39 AM
JODI MITCHELL, CEO, INSIDE PASSAGE ELECTRIC COOPERATIVE,
JUNEAU (via teleconference), spoke in support of funding
for the project in Kake. She felt that the $1.45 million
from another project should be reappropriated to build a
project that would help the community with decreased power
costs. She remarked that the project would work along with
the Kake Hatchery. She stressed that the project would
increase rates currently.
9:10:20 AM
Co-Chair MacKinnon queried the project's name. Ms. Mitchell
replied that the funds were in the Renewable Energy Fund
for the Intertie Project. She stated that the Intertie
Project was not moving forward, so it would be appropriated
from one grant to another. She explained that it would be
used for the Kake Hydro Project.
9:11:04 AM
PETER MJOS, SELF, ANCHORAGE (via teleconference), opposed
the money for the King Cove to Cold Bay road. He stated
that he had been involved in many medivacs from King Cove
to Cold Bay, by sea and air, and each medivac had been
successful. He remarked that the original intent of the
road in 1994 was to create positive economic impacts, with
no mention of health or safety. He felt that the road's
declaration to save lives, but posed a great danger of
threat to life itself. He felt that the proposed 27-mile
road would not be passable, because the area was already
extremely dangerous.
9:13:20 AM
DAVID KRAUSE, SELF/THE WILDERNESS SOCIETY, ANCHORAGE (via
teleconference), opposed to the $10 million reappropriation
for the Izembek Road Project in the FY 17 Supplemental
Budget. He stressed that the Izembek Road controversy was
addressed in the Clinton administration, when the federal
government provided substantial funds to King Cove's
medical needs. The funds were intended to end the dispute.
He remarked that the federal government had allocated over
$37 million to upgrade access to quality medical care to
the community in lieu of building the proposed road.
Co-Chair MacKinnon queried Mr. Krause's affiliation. Mr.
Krause replied that he represented the Wilderness Society
and himself.
9:15:54 AM
WILLIAM HARRINGTON, SELF, ANCHORAGE (via teleconference),
wondered if the topic for the day's meeting was only the
King Cove Road.
Co-Chair MacKinnon replied that there was an allocation in
the budget to take $10 million of reappropriated money to
spend on development of the Izembek Road.
Mr. Harrington wondered if he could speak to the budget as
a whole. Co-Chair MacKinnon replied in the affirmative.
Mr. Harrington encouraged the committee to ask the
testifiers whether they are government employees or private
sector employees. He felt that the question was important
to gauge the real sentiment of the support of the income
tax. He felt that the lack of the natural gas pipeline to
support Fairbanks was terrible. He felt that it was a shame
that Alaskans paid the nation's highest gas prices at the
pump. He stressed that it was important to protect the real
estate values by continuing to keep employment in the
state. He shared that he experienced two real estate "fall
out" recessions.
9:18:46 AM
MILES BAKER, ASSOCIATE VICE PRESIDENT, GOVERNMENT
RELATIONS, UNIVERSITY OF ALASKA, spoke to the deferred
maintenance challenge at the University of Alaska (UA). He
remarked that UA was the largest landlord in state
government with 400 buildings over 7.7 million square feet
with a $3 billion asset value. The legislature was a
generous partner in helping build the campuses, and he
thanked the committee for the past support. He shared that
UA had received $240 million over the last 10 years for
deferred maintenance and renewal from the legislature. He
shared that over that same time period the legislature had
appropriated $666 million for new facilities alone, which
was an average $66 million per year. He remarked that there
were wonderful new facilities including new engineering
facilities at the University of Alaska Anchorage (UAA) and
the University of Alaska Fairbanks (UAF); a new Health
Sciences building; the Alaska Airlines Center; dorms at the
University of Alaska Southeast (UAS); and a soon to be
commissioned new power plant at UAF. He remarked that the
challenge was the maintenance of the facilities, because UA
also had some of the oldest buildings in the state. He
stated that the average age of the UA buildings was 33-
years-old; with a weighted average of approximately 22-
years-old. He stated that the inventory had a large
deferred maintenance backlog at approximately $1 billion.
He stated that maintaining the backlog required $60 million
a year toward deferred maintenance, based on a 1.5 percent
facility adjusted value, which was the minimum best
practice industry standard. He stated that UA had
historically relied on the legislature for capital
appropriations to maintain the new facilities and to
address deferred maintenance. He remarked that UA did not
have any capital funds in the current budget. He shared
that UA had put $35 million a year from all the funding
sources toward maintenance of the facilities. He remarked
that, in 2017, the Board of Regents redirected an
additional $10 million of general fund (GF) for a total of
$45 million toward maintenance of the facilities. He
stressed that, as the operating budget of UA was
continually reduced, the campuses were struggling to keep
up with that challenge. He remarked that, without state
support, the backlog was likely to grow, and the risk of
costly emergency maintenance would increase. He understood
that the committee was looking for creative ways to address
deferred maintenance in all state agencies. He appreciated
the introduction of SB 107, which would make funds
available for preventative and deferred maintenance.
9:22:59 AM
CHRIS REITAN, SUPERINTENDENT, GALENA CITY SCHOOL DISTRICT,
GALENA (via teleconference), spoke in support of the
Department of Education and Early Development (DEED) Major
Maintenance Grant Fund. He stated that there was currently
no money allocated in the fund. He shared that was no money
allocated in the year prior also. He stressed that the
grant fund was critical to school districts to address some
of the major maintenance projects in the communities and
school districts. He urged the committee to add money to
the grant fund, so the districts could continue to address
their ongoing issues.
9:24:24 AM
AT EASE
9:24:55 AM
RECONVENED
Co-Chair MacKinnon CLOSED public testimony.
SB 23 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:26:09 AM
The meeting was adjourned at 9:26 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 23 Testimony Alaska Commission on Aging.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Testimony Lavin.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 University of Alaska Testimony.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Testimony DeBartolo.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Great Land Trust Testimony.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Uyak Natives Inc. Letter.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Trans-Pac Support letter for Thorsheim Bay EVOS.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |
| SB 23 Testimony City and Burough of Wrangell.pdf |
SFIN 4/11/2017 9:00:00 AM |
SB 23 |