HOUSE BILL NO. 461 "An Act making supplemental and special appropriations; and providing for an effective date." Co-Chair Hanley provided members with a proposed committee substitute for HB 461, Work Draft 0-LS1638\E, dated 3/4/98(copy on file). Representative Martin MOVED to ADOPT Work Draft 0-LS1638\E, dated 3/4/98. There being NO OBJECTION, it was so ordered. Co-Chair Hanley compared CSHB 461 (FIN) with the original version, HB 461. He noted that the language "appropriations that are time sensitive" was removed at the request of the drafter. The drafter accidentally removed subsection (a). He observed that Amendment 1 would add subsection (a) back into the committee substitute (copy on file). He observed that section 1 (b) was deleted because it is contained in HB 370. Subsection (c) of the old version is now subsection (a). He noted that the total amount is the same. There was a funding source change. Subsection (c) of the committee substitute is similar to subsection (d) of the previous version. The funding source was changed from general fund program receipts to federal funds. The federal funding source is the time study match money received by school districts. This will not count as general fund expenditures because federal funds will be used. Subsection (d) and (e) of the committee substitute correspond to subsections (e) and (I). These sections provide funding for the Poker Flats Research range. Total funding for the Poker Flats project is $20 million dollars. Subsection (f) in the committee substitute is the same. Subsection (g) is the same dollar amount. Subsistence harvest research projects was changed to subsistence data collection. Subsection (h) was previously subsection (j). Subsection (i) was previously subsection (k). Representative Martin MOVED to ADOPT Amendment 1, to add subsection (a). Subsection (a) would add $1,786,400 thousand dollars in Alaska Housing Finance Corporation corporate receipts for operation of the Bank of America building. There being NO OBJECTION, it was so ordered. Mr. Spencer discussed Amendment 2. Amendment 2 would add $1,303,600 thousand dollars to the Department of Revenue for Child Support Enforcement Division grants (copy on file). He observed that state and federal funding would cover three federal fiscal years, which is the life of the grants. He suggested that the appropriation be made as a capital expense so that the funding does not lapse at the end of the fiscal year. Representative Davies MOVED to ADOPT Amendment 2 with a conceptual amendment to include the appropriation in the back section as a capital project. There being NO OBJECTION, it was so ordered. Co-Chair Hanley noted that he anticipated an additional amendment from the Department of Corrections. Representative Davies referred to subsection (f), Glennallen to Tok highway funding. Co-Chair Hanley noted that the Statewide Transportation Improvement Program (STIP) was amended to include the project. The Department has sufficient funding to provide the state match. ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR noted that the condition of the road has deteriorated. She stressed that the urgency of completing this project is greater than any other project that is underway. NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION noted that the Department wants to complete the work this summer. The bid would have to be released in April. Poor weather conditions caused the road to deteriorate faster than anticipated. The Department had projects included in the STIP that went through to the year 2004. These were removed from the STIP and combined into one project. Approval has been received from the federal Highways Department. No other projects will be delayed because of the project. The Department is unsure of the level of federal funding it will receive in FY 99. Representative Grussendorf noted that the original supplemental request included $464 thousand dollars in test fisheries receipts for a project relating to herring roe on kelp. He stressed the need for quick action on this appropriation. Ms. McConnell stressed that many of the supplemental projects are time sensitive. She spoke in support of the appropriation. HB 461 was HELD in Committee for further consideration.