Legislature(1995 - 1996)
04/09/1996 04:10 PM Senate TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE TRANSPORTATION
April 9, 1996
4:10 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Lyda Green
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Robin Taylor, Vice Chair
Senator Al Adams
COMMITTEE CALENDAR
SENATE BILL NO. 290
"An Act making capital and other appropriations; and providing for
an effective date."
PREVIOUS SENATE ACTION
SB 290 - No previous action to record.
WITNESS REGISTER
Annalee McConnell, Director
Office of Management & Budget
Office of the Governor
PO Box 110020
Juneau, Alaska 99811-0020
POSITION STATEMENT: Offered suggestions to the committee.
Nancy Slagle, Director
Budget Review
Office of Management & Budget
Office of the Governor
PO Box 110200
Juneau, Alaska 99811-0020
POSITION STATEMENT: Reviewed SB 290.
Tom Lawson, Business/Regional Development
Division of Trade and Development
Department of Commerce & Economic Development
PO Box 110804
Juneau, Alaska 99811-0804
POSITION STATEMENT: Answered questions.
Guy Bell, Director
Central Office
Division of Administrative Services
Department of Commerce & Economic Development
PO Box 110803
Juneau, Alaska 99811-0803
POSITION STATEMENT: Answered questions.
Bob Cole, Director
Division of Administrative Services
Department of Corrections
PO Box 112000
Juneau, Alaska 99811-2000
POSITION STATEMENT: Answered questions.
Karen Rehfeld, Director
Administrative Services
Department of Education
801 W 10th Street, Suite 200
Juneau, Alaska 99801-1894
POSITION STATEMENT: Answered questions.
Keith Kelton, Director
Division of Facility Construction & Operation
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, Alaska 99801-1795
POSITION STATEMENT: Answered questions.
Greg Capito, Section Chief
Village Safe Water Program
Division of Facility Construction & Operation
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, Alaska 99801-1795
POSITION STATEMENT: Answered questions.
Jim Hayden, Program Manager
Storage Tank Program
Division of Spill Prevention & Response
Department of Environmental Conservation
410 Willoughby Avenue, Suite 105
Juneau, Alaska 99801-1795
POSITION STATEMENT: Answered questions.
ACTION NARRATIVE
TAPE 96-11, SIDE A
SB 290 APPROPRIATIONS: CAPITAL & OTHERS
CHAIRMAN RIEGER called the Senate Transportation meeting to order
at 4:10 p.m. and introduced SB 290 as the first order of business
before the committee.
ANNALEE MCCONNELL, Director of the Office of Management & Budget,
suggested that a hearing on the Governor's six year capital plan
would be valuable in order to establish a context for the annual
capital budget that is before the committee. She informed the
committee that communities have commented that a longer term
capital plan would be very helpful. She recommended that the
legislature adopt a six year capital plan which is required by
statute, although it is not observed or practiced. This would
provide a planning guideline. Ms. McConnell indicated that the
legislature should consider holding public hearings regarding the
infrastructure needs of the state in the reality of decreasing
budgets.
Number 060
Ms. McConnell noted that she had copies of the 1997 budget. She
suggested that there be some intent language at the beginning of
the capital budget which could adopt the guidelines contained in
the six year plan. Over the years, some of the items in the
capital budget have been determined to be more appropriate in the
operating budget such as license plates, manuals, and some marine
highway maintenance. She noted that the House and Senate Finance
Committees were asked to let her know if any of the items proposed
to be moved into the operating budget did not belong. House
Finance moved the items placed in the operating budget back into
the capital budget. Ms. McConnell proposed that once the
committees' deal with the capital budget and make recommendations
about the funding level, the previously mentioned items could be
permanently moved into the operating budget. These items total $7
million.
Ms. McConnell informed the committee of the proposal for revenue
bonds for technology and equipment improvements. The state leases
equipment frequently, but Ms. McConnell believed that the state
could receive a better deal through consolidated purchasing. The
proposal is for $6 million with an annual debt service of $1.4
million. By the end of the week, there will be a final
recommendation of the candidates for those projects and their
ranking. Ms. McConnell emphasized that some of these are very
critical projects such as the Criminal Justice System and new
computers for the Department of Labor. The revenue bond proposal
seems to be a good way to stretch the dollar. Ms. McConnell stated
that Alaska is falling behind in its technology and many of these
projects could not only improve services but could also reduce the
cost of operations.
Number 160
NANCY SLAGLE, Director of the Division of Budget Review, began with
Section 1 of SB 290. Section 1, the capital matching grant
program, provides $15 million for distribution to communities
throughout the state for capital projects. Of that $15 million,
$13.3 million is allocated for municipalities and $1.7 million for
unincorporated communities. Section 1 also provides appropriations
for the interest accrued on the monies being held in the general
fund for those communities. This mechanism allows communities to
cover larger sized projects than the original allocation. Section
2 of the bill provides the authority to go to Legislative Budget &
Audit if additional federal funds or program receipts are received
for capital projects. Ms. Slagle noted that this does not happen
often. Section 3 is the technology equipment lease which is the
revenue bonding. The debt service on that amounts to $1.4 million
which is the annual amount over five years on the $6 million of
equipment. Ms. Slagle informed the committee that there is a list
of potential projects which could be provided to the committee.
There should also be a prioritized listing of the projects
forthcoming this week.
CHAIRMAN RIEGER read this section to mean that the $1.4 would be
borrowed and paid back in fiscal year 1997; why is the $1.4 not
appropriated directly to the projects that are funded for that
year? NANCY SLAGLE understood that during that year, the debt
service would begin on those certificates of participation. The
intent is to begin as soon as possible. Ms. Slagle believed the
timing to be such that debt service would need to be paid sometime
in that year which would allow more projects to begin. There is
almost $3 million in need for the Criminal Justice Information
System as well as $900,000 for imaging in the Recorder's Office,
and various other critical projects.
Number 229
NANCY SLAGLE continued with Section 4 which is the lapse statement.
Section 5 begins with the Department of Administration. The first
project is for $350,000 for the Division of Information Services
(DIS) data network modernization. Basically, this project would
modernize the hardware used by DIS, the network that most
departments rely upon for information processing. She noted that
Mark Badger, the Director of DIS, was present for specific
questions.
CHAIRMAN RIEGER asked if the $350,000 was part of the funds
received from the telecommunications charge back or part of the
technology revenue bond. NANCY SLAGLE explained that this is a
charge back from the charges each department pays into the
information services fund. The departments pay a rate for the
services that are provided by DIS.
NANCY SLAGLE stated that the data network modernization project and
the high speed printers replacement project will help find
efficiencies wherever possible in order to reduce costs to the
departments. The appropriation for high speed printers in DIS is
$30,000. Ms. Slagle continued with the Department of Commerce and
Economic Development which has a $400,000 appropriation for the
Economic Development Matching Grant Program in order to provide
state funds to nonprofit corporations, cities, boroughs, and other
eligible applicants to match the federal, nonstate agencies, or
private sector agencies' funding.
CHAIRMAN RIEGER asked if there was a list of projects or would the
$400,000 be spent at the discretion of the department.
Number 279
TOM LAWSON, Section Chief of the Division of Trade & Development,
explained that the detailed budget contains a list of projects that
have been funded over the last few years. The projects are done on
a first come first serve basis. For fiscal year 1997, the
department does not yet have any projects.
CHAIRMAN RIEGER asked if such a list could be provided. TOM LAWSON
informed the chair that the list changes almost weekly. Mr. Lawson
said that he could provide the committee with a list, but the list
would not be meaningful.
SENATOR LINCOLN inquired as to how the $400,000 amount was arrived
at. TOM LAWSON noted that in the past, the appropriation has been
more. The demand typically exceeds the amount of money available.
In response to Senator Lincoln, Mr. Lawson said that in the last
couple of years the appropriation has been $500,000. At its
highest a few years ago, the appropriation was $800,000.
SENATOR LINCOLN asked if regional representation is reviewed when
awarding these grants. TOM LAWSON explained that there are
guidelines which specify that one region can not receive more than
one grant or a certain amount of money in any one grant year. This
spreads the money evenly.
NANCY SLAGLE continued with the Four Dam Pool Divestiture
appropriation of $725,000 which is corporate receipts for the
transfer of the Four Dam Pool Hydroelectric Projects. This
appropriation would provide funding for the upfront transfer costs
such as land titles, permits, environmental, and legal services.
Once the projects are sold, the costs will be reimbursed.
Number 321
In response to Chairman Rieger, GUY BELL, Director of
Administrative Services for the Department of Commerce, believed
that the corporate receipts would be a combination of AIDEA and AEA
corporate receipts. Mr. Bell said that he would have to obtain the
numbers from AIDEA. AIDEA and AEA share the same board while the
AIDEA staff manages the energy authority. The AEA cannot employ
staff, therefore, AEA contracts with AIDEA to supply staff
services. Mr. Bell offered to provide more information regarding
where the upfront money would come from. Mr. Bell reiterated Ms.
Slagle's point that these costs would be reimbursed to AIDEA/AEA
once the projects were sold.
CHAIRMAN RIEGER asked if it was specified in an existing agreement
between the purchasing utilities that the transfer cost would be
reimbursed; is it merely a payment of a cash sum that the executive
branch would be responsible to replace in AIDEA's account. GUY
BELL explained that the transfer cost initial agreement specifies
that the upfront costs would be shared and the proceeds of the bond
issue will include the reimbursement of the transfer costs. Mr.
Bell said that this agreement is a precondition for negotiations.
CHAIRMAN RIEGER clarified that he was referring to the level of
assurance that the money would return to AIDEA upon the transfer to
the utilities. GUY BELL explained that AIDEA and AEA do not want
to incur expenses unless there is significant progress and an
agreement. There was a meeting in February and another meeting is
to be held. Mr. Bell pointed out that the value issue has not yet
been agreed upon. AIDEA will not continue with land surveying,
permitting, environmental expenses, etc. until an agreement is
developed. This appropriation would be used after reaching an
agreement with the utilities.
NANCY SLAGLE continued with the next project which fell under the
Department of Community and Regional Affairs. She explained that
the Rural Power Systems Upgrades/Alaska Rural Energy Initiative
will provide repair and upgrade of power systems in rural Alaska.
This appropriation will provide grants and contracts for upgrades
and new construction. Ms. Slagle informed the committee that the
division has received 541 requests from utilities which total $54
million in requests which illustrates the large amount of need.
Number 371
SENATOR LINCOLN inquired as to how such a large volume of requests
would be prioritized. NANCY SLAGLE assumed that the requests would
be ranked by priority by the department. Many of the grant
programs, such as Village Safe Water, are in similar situations
where the need far exceeds the money available.
CHAIRMAN RIEGER asked Ms. Slagle if she could provide a specific
list of the projects that would be funded. NANCY SLAGLE offered to
check with the department on this question and relay the
information to the committee.
NANCY SLAGLE continued with the $50,000 request for the Head Start
Program. Many of the Head Start facilities across the state need
health and safety repairs and upgrades. She informed the committee
that OMB has been provided with a list of potential projects that
amounts to $500,000 in needs. Again the most critical needs must
be determined in order to decide which projects would be funded.
SENATOR LINCOLN expressed concern with the Head Start appropriation
in that $50,000 does not amount to much. It seems that the
facilities housing the small children are not receiving the
necessary attention. NANCY SLAGLE noted that the same amount of
money was provided for Head Start last year. Ms. Slagle agreed
that there is much need.
SENATOR LINCOLN inquired as to what would happen if a fire marshall
or a DEC inspector came in and said that the system must be
corrected in order to continue housing a Head Start Program. Are
all of these facilities up to code for the fire marshall and DEC?
NANCY SLAGLE did not know. She offered to provide any information
that may be related to fire code violations or requirements.
SENATOR LINCOLN expressed interest in anything relating to any code
requirement.
Number 423
SENATOR GREEN asked if these facilities were owned or leased by the
state. NANCY SLAGLE explained that these are nonprofit
organizations. The Association of Village Council Presidents,
Rural CAP, and various other nonprofit organizations run these
programs. Ms. Slagle did not know if the nonprofits owned or
leased the facilities; however, the facilities are not state owned.
NANCY SLAGLE continued with the federal receipts for energy
projects which totals $1 million. This provides pass through
federal grants in order to assist communities, electric utilities,
or other eligible entities by performing functions that others
cannot. This is a way for the state to save money so that the
money can be used for energy projects such as the Institutional
Conservation Program pass through grants. The Institutional
Conservation Program provided the installation of waste heat
systems in schools, the extension of transmission lines for federal
public health services, etc.
CHAIRMAN RIEGER asked if the money received for federal grants was
project specific or is it a grant for energy projects left to the
discretion of the department. NANCY SLAGLE was unsure if these
pass through grants were project specific, but offered to find that
information for the committee.
NANCY SLAGLE continued with the rural development grants that is a
$1,280,000 request of which $480,000 are federal receipts and
$800,000 are inter-agency receipts from AIDEA. This is the
Governor's coordinated approach to economic development. She noted
that the rural development grants used to be in the operating
budget. This appropriation supports community and economic
development activities in rural communities which lead to the
request for the appropriations to be transferred to the capital
budget. These are small grants with a long duration and moving the
grants into the capital budget would eliminate the need to pursue
extensions every year. Ms. Slagle listed the following as examples
for possible grants in fiscal year 1996: product development,
business expansion to increase production in tourist novelty items,
a museum gift shop, and the development of a cooperative artist
training and retailing facility.
CHAIRMAN RIEGER asked if these grants were left to the discretion
of the agency. He also asked Ms. Slagle to provide a list of the
projects slated for fiscal year 1997. NANCY SLAGLE said yes, those
grants are left to the discretion of the agency. She agreed to
provide the committee with a list of proposed projects.
NANCY SLAGLE continued with community block grants which is $9
million in federal receipts. This includes several block grants.
The community services block grant is required by federal
regulation to be passed through to community action agencies, to
provide services to low income and homeless persons throughout the
state, and to alleviate the conditions of poverty. She informed
the committee that Alaska has one community action agency to which
these funds are passed through and that portion totals about $5
million. There is $4 million from the community services block
grant, the homeless grant, and the food and nutrition grant. The
emergencies shelter grant provides funds to local communities and
nonprofits for homeless service providers and for renovation
payment of maintenance operations, insurance, utilities,
furnishings, etc. which is part of the community block grant.
In response to Chairman Rieger, Ms. Slagle believed that the $5
million for the community development block grant was at the
discretion of the department. She explained that the community
development block grant awards approximately 30-35 grants of about
$200,000 each to local governments. Ms. Slagle offered to provide
the committee with information regarding where those grants went in
the past and where the grants are anticipated in the upcoming year.
Number 510
CHAIRMAN RIEGER asked if EMS service was eligible for block grants
under this program. NANCY SLAGLE did not think so, but offered to
provide that information.
SENATOR LINCOLN suggested that it would be helpful to compare the
appropriations before the committee to those from last year. NANCY
SLAGLE said that could be provided to the committee. Depending
upon the grant program, the grant may be awarded on a competitive
basis. Therefore, the information regarding the anticipated needs
for fiscal year 1997 may not be readily available.
CHAIRMAN RIEGER was struck by the fact that more than half of the
appropriations thus far are to be awarded at the discretion of the
agency. This does not look like the capital budget that he was
accustomed to seeing. As a legislator, he had no idea of where the
money would go other than comparing where the money had gone in the
past. Chairman Rieger was uncomfortable with awarding lump sums to
be allocated at the discretion of the department.
NANCY SLAGLE pointed out that the criteria the departments used in
determining who would be awarded the money was reviewed.
Information was gathered on that and could be provided to the
committee.
CHAIRMAN RIEGER inquired as to where the $4 million would go after
being awarded to Rural CAP. NANCY SLAGLE explained that Rural CAP
is to use that $4 million in assisting the poor, securing and
retaining employment, education, housing, and emergency assistance.
Those funds have annually supported the village participation
conference and the rural providers conference both of which are
sponsored by Rural CAP. Ms. Slagle informed the committee that
those funds have been used in alcohol and drug abuse prevention
programs, energy conservation strategies and child development
programs.
NANCY SLAGLE continued with the Department of Corrections which has
83 buildings that constantly have repair needs. Currently, the
primary concerns that the appropriation would address are the
security systems, the roofs, the walls, the mechanical systems, and
the electrical systems. There is not enough money to deal with all
of the outstanding deferred maintenance needs. In response to
Chairman Rieger, Ms. Slagle said that this money would be left to
the discretion of the agency. She noted that a break out of the
$1.5 million had been provided and she reviewed that list. The
department has determined the most critical needs and have
identified those areas.
CHAIRMAN RIEGER asked if any of that money could be used in order
to enter into an agreement for a new facility. NANCY SLAGLE said
that was not the intent.
BOB COLE, Administrative Director for the Department of
Corrections, said that was not the intention. The department would
only move in that direction if there was a specific agreement
between the legislature and the executive branch to proceed in that
direction.
NANCY SLAGLE pointed out that the money would be specifically
appropriated for deferred maintenance as is the title of that
appropriation. Ms. Slagle did not believe that could legally be
used for anything other than deferred maintenance.
TAPE 96-11, SIDE B
NANCY SLAGLE continued with the Palmer Correctional Facility
contaminated site cleanup. The $72,000 is from the oil and
hazardous spill response and prevention fund in order to cleanup
$20,000 worth of diesel fuel which has leaked at the Palmer
Correctional Center.
SENATOR LINCOLN asked if the $1.5 million in deferred maintenance
included funding for Palmer's underground fuel tanks. NANCY SLAGLE
clarified that was $170,000. Ms. Slagle deferred to Mr. Cole. BOB
COLE explained that $170,000 in general funds was requested in the
deferred maintenance of the capital budget in order to dig up and
replace the underground fuel tanks. The other money comes from the
cleanup fund and is available and does not come from the general
fund. Mr. Cole specified that the area would be clean for the
installation of the underground fuel tanks. The state pays to dig
up and replace the tanks and utilizes the cleanup fund to do just
that. This saves the department $72,000.
Number 570
NANCY SLAGLE continued with the allocation for community jails
which would deal with some of the needed fire, life, health, and
safety requirements of the community jails facilities. This would
provide $25,000 for a fire sprinkler installation in Unalaska,
$45,000 for remote cell locks in the North Slope Borough facility,
and $68,000 for the Kodiak facility.
BOB COLE noted that these projects were hold overs from last year
which were recommended from the community jails task force, but
were not funded.
NANCY SLAGLE moved on to the Fort Richardson allocation, $900,000,
of which $200,000 is from the general fund and $700,000 from
federal receipts. This would be used in order to renovate the U.S.
Fort Richardson confinement facility to open up 40 beds for use by
the Department of Corrections. She specified that the facility
would house lower custody, pre-trial prisoners, misdemeanants and
felons in the Anchorage area. This would help with overflow that
has occurred in that area.
CHAIRMAN RIEGER asked if military people would be placed in this
facility. BOB COLE informed the committee that Fort Richardson has
a confinement facility that can hold about 50 people. There are 6-
12 military inmates in the facility at any given time. Fort
Richardson would like to close this facility, lease it, or make use
of it in some way. Mr. Cole noted that the Municipality of
Anchorage brought this to the department's attention a year and a
half ago. The Municipality of Anchorage is still interested as a
short-term solution while the larger question of overcrowding is
discussed. Mr. Cole pointed out that it would be a cheap fix; it
would cost about $1 million to renovate the facility. The
contingency is the $700,000 worth of federal funds. Mr. Cole
discussed the possibility of allocations being tagged for this in
the Defense Appropriations Bill. If this happens, then a
discussion regarding the operational funding for the last quarter
of fiscal year 1997 would be necessary.
CHAIRMAN RIEGER said that this is not a deal yet. Is there an
understanding that if the federal government comes through with
$700,000, then Fort Richardson would cooperate with its portion,
$200,000. BOB COLE agreed that the deal was not sealed, but stated
that the Army is very eager to do this. Mr. Cole explained that
the engineers reviewed the job and projected the cost to be around
$900,000.
NANCY SLAGLE moved on to the $250,000 in general funds to renovate
and convert the Harborview Development Center to a therapeutic
community for substance abusers. She informed the committee that
about 85 percent of incarcerated adults are involved with substance
abuse. This would help deal with this problem.
In response to Senator Green, BOB COLE said that the facility could
be occupied early in FY 1998. There would not be an operating
budget impact this fiscal year.
Number 517
SENATOR LINCOLN noted that there is a large sum of money from the
Council in Valdez in order to assist with the Harborview
conversion. The amount in the bill is a small amount of the total.
BOB COLE mentioned that the total cost of the Harborview conversion
is about $1 million or $20,000 per bed to renovate. The Fairbanks
Community Council is on record in support of this project as well
as the Valdez Community Council.
NANCY SLAGLE continued with the Department of Education which
begins with a list of the department's major maintenance projects.
The last two projects deal with construction.
CHAIRMAN RIEGER asked if there was a priority list for major
maintenance as with school construction. Are the top five major
maintenance projects listed? NANCY SLAGLE replied yes.
KAREN REHFELD, Department of Education, explained that the
department's major maintenance list included two roof repair
projects for Juneau. The Governor's office combined those two
projects, the roof repair for the High School and the Mendenhall
River School, and collapsed the dollar amount.
NANCY SLAGLE interjected that the remaining projects were taken off
the DOE list.
SENATOR LINCOLN inquired as to what was meant by the rest were
taken off the list; does that mean that one of the Juneau projects
was not on the priority list? NANCY SLAGLE said no, both the
Juneau projects were on the priority list. The two projects were
combined and a smaller dollar amount was assigned for those
projects. Furthermore, the money for the Fairbanks School District
is just funding for the planning portion of the project.
SENATOR LINCOLN inquired as to the total amount requested for
Fairbanks School District. NANCY SLAGLE informed the committee
that the Fairbanks School District requested $3,194,692. The
$223,600 is enough to do the planning and design for the project
anticipating that the Fairbanks School District would still be at
the top of the list next year for funding. KAREN REHFELD
interjected that the process does allow that projects be phased
when reasonable to do so. The application would specify that the
project is a phase project and would be ranked accordingly. Ms.
Rehfeld said that the project would receive points for being a
phased project.
NANCY SLAGLE pointed out that the Lower Kuskokwim School District
project was the top project from the school construction grant
list. This is a major portion of the money for the project, but
not the full amount. The total amount is around $6.9 million.
Number 455
SENATOR LINCOLN asked how the department determines how far the
construction would get on a project such as this. NANCY SLAGLE
explained that the entire capital budget was reviewed in order to
determine the priorities while funding major maintenance. This is
a balance between construction and major maintenance.
SENATOR LINCOLN inquired as to what would be given up since the
project lacked $2 million to be funded in total. KAREN REHFELD
understood that there would be insurance proceeds, about $6
million, to help support the cost of construction of Hunter
Elementary. Therefore, the total of the project would be $12
million. Ms. Rehfeld clarified that the amount the department
requested was for the remaining piece, there was no phasing. Ms.
Rehfeld assumed that the district would revisit its plans.
NANCY SLAGLE continued with the Public Library construction grants.
This federal money is received every year. KAREN REHFELD noted
that the local municipality must make a match in order to receive
these funds. In response to Chairman Rieger, Ms. Rehfeld believed
that the community of Gustavus had requested the construction of a
library. There may be others and Ms. Rehfeld offered to provide
the committee with a list.
NANCY SLAGLE moved on to Village Safe Water projects. She passed
out copies of the priority listing for village safe water
appropriations which includes the CIP project administration.
There is money for clinic sanitation facilities,
engineering/feasibility studies, federal sewerage grants from EPA,
etc.
CHAIRMAN RIEGER summarized that this was all itemized except for
the $15 million for the federal sewerage grants. NANCY SLAGLE
directed the committee to the Federal EPA column which identifies
where the money is going. Ms. Slagle said that it is a dollar for
dollar match with the state.
Number 395
KEITH KELTON, Department of Environmental Conservation (DEC),
explained that the EPA money is at least 50 percent of the project
cost and in some cases a little more. In the case of a strict
sewerage project, the match would be 55 percent federal and 45
percent state. A combination water and sewer project would be
50/50 split. A solid waste project receives 50 percent federal
funding from the Rural Economic and Community Development
Administration and the general fund would supply the remaining 50
percent. Those funds go directly to the project accounts,
therefore, the DEC is not requesting authority to receive and
expend those funds. Mr. Kelton pointed out that the EPA money does
go through the DEC who is required to receive and expend the $15
million.
CHAIRMAN RIEGER referred to page 6, line 17 when asking if the $15
million was strictly federal funds or the 55/45 split of the $15
million. KEITH KELTON believed the $15 million is entirely federal
funding. Mr. Kelton agreed with Chairman Rieger that the $15
million would amount to 55 percent of the total sewerage grant
money, unless there was a combination water and sewerage project
which would then be a 50/50 split.
CHAIRMAN RIEGER inquired as to why the general fund total was
higher than the other funds, especially if the general fund is 50
or 45 percent. KEITH KELTON pointed out that the Rural Economic
and Community Development Administration federal funds do not show
in the budget as receiving and expending almost $3.8 million. This
money does not come to the state, but the state provides a match to
those project funds. Also the first four projects, $2.5 million,
are entirely general fund projects and do not receive any federal
participation.
SENATOR LINCOLN thought the matching for water and sewer for last
year was about $23 million. KEITH KELTON remembered that the state
general fund for Village Safe Water projects was $21.3 last year
while the federal funds amounted to $15 million plus a small amount
of farmers' home. In the last three years, that has remained
within a couple million in all funding sources.
SENATOR LINCOLN mentioned the $100 million that Senator Stevens
spoke about over four or five years, when asking if the state was
planning for the federal amount. KEITH KELTON explained that the
bill has seven year language for the authorization of the safe
drinking water act which has not yet passed. Senator Stevens
assumed that $15 million per year would total the $105 million.
The priority list would be developed on an annual basis based on
the specific appropriation that was obtained.
Number 337
SENATOR LINCOLN asked if the federal amount would decrease if the
state does not appropriate that amount. KEITH KELTON was unsure as
to the statute of limitations on that. Other grant programs with
the federal government allow two years for use of the capital
construction funds.
CHAIRMAN RIEGER asked if the other funds listed were federal FY 96
monies that are already in hand or is this next year's
appropriation monies. NANCY SLAGLE explained that the $16.888
million consists of $15 million in EPA funds and $1.888 million of
AHFC funds. KEITH KELTON interjected that the $15 million is
federal funding for FY 96. The funding must still go through
continuing resolutions, but all the funding will be received.
CHAIRMAN RIEGER inquired as to how $1.888 million worth of AHFC
corporate receipts was placed into this request. NANCY SLAGLE said
that those projects specific to housing were reviewed and those
projects fell under the statutory authority and mission of the
AHFC. Corporate receipts from AHFC were used for a few projects.
Ms. Slagle noted that some projects within the municipal matching
grants, water and sewer projects are also funded by AHFC funds.
The specific projects are identified on the priority list as to
which are funded by AHFC.
KEITH KELTON informed the committee that Alakanuk, Metlakatla, and
Hooper Bay are the three projects. Those projects are identified
by the "1*" on the priority list.
CHAIRMAN RIEGER inquired as to why $450,000 was being put into a
system in Allakaket as this community was just relocated.
Number 287
GREG CAPITO, Village Safe Water, explained that the funds requested
here are to augment the Federal Emergency Management funds that
have already been received. This would provide a water source,
well drilling and transmission of the water into the new village
which FEMA did not anticipate. FEMA paid for the new village, the
state will try to buy the new water source and transmission line.
CHAIRMAN RIEGER asked if the $18,456,000 was the minimum match to
capture the $15 million in federal grants plus the $3.8 off budget.
KEITH KELTON said that assuming the first four items of $2.5 are
also included in the general fund, those would not be required to
receive the federal match but without those items the program could
not run. CHAIRMAN RIEGER surmised that other than the $2.5, that
is the minimum.
NANCY SLAGLE went to the next group of projects which begin on page
10, line 17. These are the Municipal Matching Grants Projects
which amount to $7,586,000 in general funds and $5,142,000 in IA
receipts from AHFC. In response to Chairman Rieger, Ms. Slagle
said that the same logic used in Village Safe Water program to use
AHFC funds was used here. These projects were related to housing
and would qualify for AHFC's mission and statutory authority.
CHAIRMAN RIEGER asked if this was a different municipal matching
grant program than the front section. Is there a program on the
books for these matches?
KEITH KELTON informed the committee that the program had been in
place since about 1970. The appropriations have averaged $10-$12
million for the last six years. The list is developed from a
questionnaire sent to the communities. The questionnaire solicits
information on environmental hazards, public health hazards, and
the need to build a project in conjunction with other activities.
A criteria system scores and ranks these projects. He pointed out
that a list of projects is generated annually for the legislature
to consider. In response to Chairman Rieger, Mr. Kelton said that
the match percentage depends upon the size of the community. In
the larger communities, the ratio is 50/50 while communities with
a population under 1,000 have a ratio of 85/15. Mr. Kelton noted
that the ratio is patterned after the same percentage as the
Governor's matching grant program. There is also a 70/30 ratio for
certain communities.
CHAIRMAN RIEGER asked if Mr. Kelton had the list of matches for
each project. KEITH KELTON said that information could be provided
to the committee. Mr. Kelton listed some of the ratios for some
communities in order to give the committee a general idea.
NANCY SLAGLE moved on to the above ground storage tanks. The $1.6
million in general funds would fund surveying and identifying state
owned storage tanks with a capacity of 660 gallons or more.
CHAIRMAN RIEGER asked if this was discretionary on the part of the
agency.
Number 209
JIM HAYDEN, Storage Tank Program in DEC, said that no priority list
had been established for the use of these funds. An executive
cabinet between the various agencies has been established in order
to develop a priority system. The form has been developed and the
questionnaire is in development at this time. The capital projects
speak to a survey. The survey will attempt to identify those
systems that need repair. Mr. Hayden emphasized that the bulk of
the funds would be spent to upgrade those facilities that are
prioritized through this process. Since the priority system has
not been completed, the funds would be discretionary.
SENATOR GREEN inquired as to where an above ground storage tank
would be located and who would own them. JIM HAYDEN informed the
committee that these tanks would primarily be found in rural
Alaska. The two major locations where these tanks would be are
schools and utilities. Mr. Hayden predicted that above ground
tanks in about 100 schools and over 60 utilities are currently in
need of repair.
NANCY SLAGLE went on to the Statewide Emergency Response
Communication System which consists of $100,000 from the spill
response prevention funds. This would provide a two-way radio
repeater system for Southeast Alaska and the North Slope in order
to deal with emergency spill response communication needs for DEC.
This is part of a phase project.
CHAIRMAN RIEGER said that the committee would stop at this point
and would intend to continue on Thursday after the committee deals
with the three bills of Thursday's agenda. He said that he did not
intend to go through the Municipal Capital Matching Grants.
NANCY SLAGLE asked if DOT needed to be present to discuss the
highway and airport projects. DOT has provided some discussion on
the STIP previously.
CHAIRMAN RIEGER stated that he would like DOT or someone who could
speak to the projects. He understood that in a budget amendment
from the Governor, a lump sum is not requested.
NANCY SLAGLE noted that there are a few other small amendments that
address the university.
There being no further business before the committee, the meeting
was adjourned at 5:35 p.m.
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