HOUSE FINANCE COMMITTEE August 3, 2008 1:15 P.M. CALL TO ORDER Co-Chair Chenault called the House Finance Committee meeting to order at 1:15:24 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Harry Crawford Representative Les Gara Representative Mike Hawker Representative Mike Kelly Representative Mary Nelson Representative Bill Thomas Jr. MEMBERS ABSENT Representative Richard Foster Representative Reggie Joule ALSO PRESENT Representative Jay Ramras; Representative Nancy Dahlstrom; Representative Kurt Olson; Suzanne Armstrong, Staff, Representative Kevin Meyer; Ron Kreher, Chief, Field Operations, Division of Public Assistance, Department of Health and Social Services; Jon Sherwood, Director, Office of Program Review, Department of Health and Social Services; Sarah Fisher-Goad, Deputy Director of Operations, Alaska Industrial Development and Export Authority and Alaska Energy Authority, Department of Commerce, Community and Economic Development; Allie Fitzjarrald, Acting Director, Division of Public Assistance, Department of Health and Social Services; Amanda Ryder, Director, Division of Administrative Services, Department of Commerce, Community and Economic Development; Jerry Burnett, Director, Division of Administrative Services, Department of Revenue PRESENT VIA TELECONFERENCE Aves Thompson, Executive Director, Alaska Trucking Association (ATA), Anchorage; Paul Kendall, Anchorage; Luke Hopkins, Member, North Star Borough Assembly, Fairbanks; Dennis Wheeler, Commissioner, Regulatory Commission of Alaska BILL SUMMARY: HB 4001 An Act making supplemental appropriations, capital appropriations, reappropriations, and other appropriations; making appropriations to capitalize a fund; and providing for an effective date. HB 4005 was HEARD & HELD in Committee for further consideration. HB 4005 An Act amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; and providing for an effective date. HB 4005 was HEARD & HELD in Committee for further consideration. HOUSE BILL NO. 4001 "An Act making supplemental appropriations, capital appropriations, reappropriations, and other appropriations; making appropriations to capitalize a fund; and providing for an effective date."   1:15:47 PM Co-Chair Chenault convened the portion of the meeting that would be taking statewide public testimony on: HB4001- APPROP: SUPP/CAP/OTHER RELATED TO AGIA. 1:17:03 PM AVES THOMPSON, EXECUTIVE DIRECTOR, ALASKA TRUCKING ASSOCIATION, ANCHORAGE testified via teleconference, He indicated support for HB 4001. House Bill 4001 provides $129,900,000 for gas pipeline structure preparation. This includes major work on the Dalton Highway, the Richardson Highway, the Chilkat River Bridge, and the Alaska and Haines Highways. Important infrastructure improvements must begin soon. There are not many seasons left between now and the beginning of the gas line construction. He informed that if HB 4001 passes, then construction can begin next spring. He referenced testimony provided the Committee. (Copy on File.) He urged support of the bill. 1:18:45 PM PAUL KENDALL, ANCHORAGE testified via teleconference. He asked if the oil companies' testimony had been requested. Co-Chair Chenault replied that he had not called them personally, but the right to testify exists for all who are interested. Discussion between Co-Chair Chenault and Mr. Kendall continued regarding the bill available for testimony. Mr. Kendall noted his appreciation for the work done by the Governor and her team. He applauded the work done by Mr. Palmer. He asked to testify on HB 4005. Co-Chair Chenault replied that Mr. Kendall had testified last week on HB 4005. Mr. Kendall apologized. He had misunderstood the intention of the meeting. 1:22:23 PM Co-Chair Chenault stated that the public testimony on HB 4005 was closed. 1:24:26 PM Co-Chair Chenault Noted that public testimony would be held for HB 4001 only. 1:24:56 PM HOUSE BILL NO. 4005 An Act amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; and providing for an effective date. Co-Chair Meyer pointed out that all 20 amendments had been incorporated into the committee substitute. 1:25:57 PM Vice-Chair Stoltze recommended that the bill be clarified by Ms. Armstrong. 1:26:37 PM Vice-Chair Stoltze MOVED to ADOPT work draft version, #25- LS1757\M, Kane, 8/2/08. There being NO OBJECTION, it was adopted. 1:27:21 PM SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE KEVIN MEYER, provided a sectional analysis. · Section 1 pertained to the amendments made to the bulk fuel bridge loan fund increasing the maximum allowable loan from $500,000 to $750,000. · Section 2 pertained to the addition of commercial customers under the current Power Cost Equalization (PCE) calculations. · Section 3 reverted to the current formula in statute that does not allow commercial customers to be under the PCE calculations. · Section 4 was the revision to the PCE formula incorporated in amendment #1, which is a floor of 12.83 cents and a ceiling of 75 cents, and also allows calculation for residential customers as well as commercial rate adjustments. · Section 5 reverted back to the current formula, effective June 30, 2011 with the floor at 12.83 cents and the ceiling at 52.5 cents, without commercial customers. · Section 6 pertained to the addition of commercial customers. · Section 7 reverted back to the current formula effective June 30, 2011, again without commercial customers. · Section 8 pertained to the bulk fuel revolving loan fund and increasing the loan amount from $500,000 to $750,000. · Section 9 - There were no changes to this section. · Section 10 included power cost assistance, in which those individuals who are not eligible Power Cost Equalization (PCE) will qualify for five cents per kWh for the first 500 kWh per month. · Sections 11 & 12 pertain to the Federal Low Income Heating and Assistance Program. There were no changes to these sections. · Section 13 pertained to the Alaska Resource Rebate and was without changes, except for an addition of an "opt out" process for those who wish to refuse the rebate and changes for certain individuals who receive federal veteran's benefits. · Section 14 pertained to the suspension of the motor fuel tax, with the one change giving the discretion to the Department of Revenue requesting invoices on sales and transfers of gasoline, diesel, and aviation fuel when distributers submit their reports to the Department of Revenue. 1:30:32 PM Representative Nelson asked about Section 11, Page 5. She thought that the program was correctly termed the Federal Low Income Home Energy Assistance Program, which qualified for air conditioning in other states. Ms. Armstrong stated that she would amend this section to accurately reflect the title of the program. 1:32:38 PM Representative Gara referenced Page 6, Line 8, regarding the Low Income Heating Energy Assistance Program (LIHEAP) program. The point system is done by regulation. It is based on how much money is allocated by the legislature. He thought that Line 8 should not be adopted by statute, because the policy is driven by the appropriation. Ms. Armstrong explained that the section is in uncodified law; the dollar figure will not be in statute. In drafting the bill, the intended direction was to ensure that the point would double. 1:34:47 PM Representative Gara reiterated the question. RON KREHER, CHIEF, FIELD OPERATIONS, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, commented that technically the point system is driven by the amount of funding that is available. The point system stands alone. Historically, the federal funding amount was used and the size of the population was estimated. That relationship drove the dollar value per point. 1:36:30 PM Representative Gara suggested allocating a different amount of funding every year. He asked if there was a down-side to creating a point system. Mr. Kreher responded that there has never been a statutory reference to the dollar value per point. 1:37:22 PM JON SHERWOOD, DIRECTOR, OFFICE OF PROGRAM REVIEW, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the purpose of putting the point in statute came about in discussions with Legislative Finance. One option was to determine the points and then putting them into regulation. The other option was to make an indefinite appropriation adequate to pay a fixed point value. The Department does not have a preference as to which approach the legislature takes. Representative Gara provided a hypothetical situation. Mr. Sherwood stated that it would fix the point value and if more individuals applied, LIHEAP could still pay out at that point value. To raise the point value, a change to the uncodified law would be required. Representative Gara asked if the legislature could fund a certain amount without adopting a point system. Mr. Sherwood affirmed that the point value would be set based on an estimate of applications. 1:39:41 PM Representative Crawford wondered if the federal government changed the amount, would that mean that the state would run the risk of a surplus or possibly a lack of funds for needy applicants. He asked if the Department needed flexibility. Mr. Kreher clarified that the point system does not change and that the state could be in a situation and the federal government could restrict what a household is paid. He assumed that the state could not go above 127 dollars per point. Representative Crawford asked if $127.50 was the maximum restriction. He asked what would happen if the federal government program was funded at $5 million instead of $10 million. Mr. Kreher informed that the dollar value sets a maximum amount. Representative Crawford asked if this meant less money per household. Mr. Kreher acknowledged that the dilemma was to either serve fewer households or give each household less money. Representative Crawford understood and hoped to serve all households at a lesser amount. 1:42:59 PM Representative Nelson asked about the emergency contingency funds. Mr. Kreher explained that the emergency contingency fund portion is uncertain. The federal government does appropriate a fixed amount and this is divided among states. Typically, Alaska waits until the end of the heating assistance year and then issues supplemental payments. 1:44:20 PM Representative Nelson asked if the Department would find it easier to administer the program without the dollar figure included. She supposed that the cap might limit the benefit. She asked if the Department would prefer that the cap be removed. Mr. Sherwood thought that it could be done either way and both would have complications depending on the actions of Congress. He stated that the department has more experience in managing without a maximum limit, but they can manage the fund with either approach. 1:46:53 PM Representative Gara asked about the technical change that would occur in the CS by deleting the last sentence on Page 6, Line 7. Mr. Kreher affirmed that the change would serve the intended purpose. 1:47:53 PM Ms. Armstrong pointed out that the intent of Section 11 and 12 was to address the issue of assisting individuals with high heating costs and to attempt to design a package, the PCE changes were made to enhance the home heating program. This was the way to double the assistance to individuals in the 0 to 225% poverty guideline. It does apply October 1, 2008 to June 30, 2011. 1:49:14 PM Representative Crawford commented that if the point system is set at $127.50 and something does happen to change, it would be unacceptable to leave some people unassisted. He thought it should be leveled out so that some aid gets to everyone in that condition. He did not want to see the heating cost point set in statute. Ms. Armstrong clarified that this will be in uncodified law for 2.5 years; it can be amended. It is to implement home heating and energy assistance programs. The allocation may not exceed $127.50. If there were insufficient funds on the federal level, then the allocation could be brought down and pro rated. Households will not be cut out because money is unavailable. The dollar assistance may be smaller. 1:51:40 PM Representative Crawford heard that there would be circumstances in which fewer households would be served. Mr. Kreher mentioned that when funding is restricted, the choices are to pay fewer homes, or to reduce payments so all could be served. There is the risk of not having enough funds to make a payment to every eligible household. 1:53:01 PM Mr. Sherwood clarified that applications are accepted and payments are made in November, but individuals can apply through April. Payments are made prior to knowing the total amount of eligible individuals. Initially the department may pay less and then make a supplement payment if there is a surplus. 1:53:50 PM Vice-Chair Stoltze was encouraged by the approach. He thought it would help the state control the budget. Mr. Kreher offered that the situation is tenuous because now the President is proposing a 22% cut to LIHEAP funding. 1:55:02 PM Representative Gara commented that setting the heating cost point in statute reduces flexibility. The policy would remain the same. He guessed that a simple regulation may take a long time. He asked how long it would take to change the regulation. Mr. Kreher anticipated that the legislation for emergency regulations were in the works at this time. If a maximum payment amount were regulated, the change could happen relatively quickly. 1:57:51 PM Vice-Chair Stoltze noted an example where Alaska Housing Finance Corporation (AHFC) prepared for emergency regulations and made necessary changes quickly. Co-Chair Chenault commented that the last budget cycle was the first time that state money was allocated for the LIHEAP program. 1:59:07 PM Representative Hawker applauded the fiscal analysis provided by the department and the complex process that had been undertaken. Next year, the budget subcommittee can reevaluate the transaction. He did not feel that it was a burden to use the benefit level to drive the calculation, which is evidenced by the adult dental program. He commended the approach. Mr. Kreher pointed out that there would be a revised fiscal note coming to members. 2:01:23 PM Representative Hawker clarified the revision which stated that 16 new personnel would be necessary to operate the program when the fiscal note was based on five. Representative Kelly asked if the personnel positions were to implement what was done last year. Mr. Kreher responded that it would be to manage the additional staff. He estimated that the department would be serving more than anticipated. He stated that he was addressing the equivalents of those positions, because the plan is to contract with Tribal organizations. Some administrative funds would be transferred to those tribal entities. The total staff would be eight or nine staff. Representative Kelly questioned the contract with tribal organizations. Mr. Kreher responded that the intent is to contract with tribal organizations that have been approved by the federal government to operate tribal assistance heating programs. Representative Kelly reiterated that the contract comports with the requirement that was passed, but it does not involve contracting with new entities. Mr. Kreher affirmed. LUKE HOPKINS, MEMBER, NORTH STAR BOROUGH ASSEMBLY, FAIRBANKS testified via teleconference. He indicated support for the additional funding for the Alaska Gasoline Inducement Act (AGIA) and transportation projects in the Fairbanks area. He noted concern that construction might not be facilitated. He urged extra funding to HB 4001 for Fairbanks to prepare bids for necessary road projects. 2:07:08 PM Vice-Chair Stoltze asked if Fairbanks had an Interstate Maintenance (IM) program. Mr. Hopkins replied that they do and the program is being submitted through the Department of Environmental Conservation (DEC). He hoped that it would be a low level maintenance plan if the Environmental Protection Agency (EPA) accepts the plan. RECESS: 2:08:36 PM Reconvened: 3:09:08 PM DENNIS WHEELER, COMMISSIONER, REGULATORY COMMISSION OF ALASKA testified via teleconference. He addressed concerns with the current M version of the bill and two areas where the addition of commercial customers will have an impact on the Regulatory Commission of Alaska (RCA.) · The first concern was in respect to calculating the actual rate located on Page 2, Line 13. When calculating consumption the customer rate will be factored in. Many utilities have a tiered rate system where the commercial cost is broken down into small and large customers, which will provide some additional work. He did not think this would prove too difficult. · The second concern was located on Page 3, Lines 5 & 6, where the base rate calculations were done. He interpreted the structure of the sentence and stated that a base rate calculation was preformed separately from a base rate calculation for retail/commercial customers. The second base rate would involve averaging to account for small and large commercial users and industrial users. He did not know how to average it. Mr. Wheeler thought that the issues could be worked out but stst not by October 1. He recommended that January 1be the effective date for that aspect of the bill. 3:12:36 PM Co-Chair Meyer anticipated that the effective date could be st changed to January 1. Representative Thomas agreed. Representative Hawker recommended that the change be adopted as a formal amendment. 3:13:23 PM Representative Thomas MOVED to CHANGE the effective date of st commercial PCE portion be January 1, 2009. There being NO OBJECTION, it was adopted. 3:14:11 PM Co-Chair Meyer asked how the changes would be overseen. Mr. Wheeler responded that it would be a challenge to implement changes, which has been addressed in a fiscal note. With the intent of passing a credit to customers, rate regulated utilities can be adequately monitored. For utilities that are not regulated, RCA does not have control of what will be passed on to the customers. 3:16:11 PM Vice-Chair Stoltze asked if there was a reduction in the natural gas subsidy, would approval through Regulatory Commission of Alaska be required. Mr. Wheeler answered that RCA regulates Enstar but not Fairbanks Natural Gas. If the program was similar to PCE, the expectation would be to have Enstar file a tariff sheet with RCA. 3:17:26 PM Co-Chair Meyer asked how many people in Fairbanks use natural gas. Representative Kelly responded 1,100. Representative Gara asked if PCE would extend to the new entrants in the commercial portion. Co-Chair Meyer replied that there would be no commercial in the non PCE. He reiterated "no commercial in the non PCE." 3:18:46 PM Co-Chair Meyer requested Mr. Wheeler address the fiscal note. Mr. Wheeler explained that regulatory cost charges for the utilities are regulated. He informed that PCE has 70 utilities that are not regulated. The regulated utilities subsidize the work done for the PCE program. He recommended that General Fund money be used to support the positions. Co-Chair Chenault asked for the number of charges to administer the PCE program in current form. Mr. Wheeler hesitated to guess. He stated that the Regulatory Commission of Alaska has two positions that work in the PCE program. He offered to provide specifics in the future. 3:21:37 PM SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY AND ALASKA ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, addressed the fiscal notes associated with the Alaska Energy Authority. She stated that the estimated capitalization of the PCE fund for the changes in this program is $130 million dollars. She added the commercial estimates will adjust that number downward. For the PCE staff, two new employees will be required to process invoices for the addition of commercial customers and the power cost assistance program. The personnel costs of the Alaska Energy Authority's (AEA) fiscal note show up as two new positions for interagency receipt funded positions. 3:23:54 PM Co-Chair Meyer summarized that $130 million would cover the PCE proposal that was passed. Ms. Fisher-Goad concurred, but pointed out that there is already $28 million in the program for FY09. In January 2009, the rate increases and new PCE levels will be known. 3:25:12 PM Representative Kelly referenced the note and asked if it reflected the increase in the program only, or did it include the endowment? Ms. Fisher-Goad informed that the note included money to capitalize the program but not the endowment. Representative Kelly requested the current annual cost of the program. Ms. Fisher-Goad responded that the annual cost for the program is $37 million. Representative Kelly asked how many households would be served in the PCE program. Ms. Fisher-Goad replied 25,797 households. Representative Kelly requested the number of businesses that might apply. Ms. Fisher-Goad estimated that 6,400 would be the largest expectation. She indicated that the information regarding commercial customers was over 10 years old. 3:27:36 PM Co-Chair Meyer imagined that the $130 million would decrease slightly because the commercial aspect would not go into effect until later. Ms. Fisher-Goad commented that it could be divided in half. The number will change with the average PCE level. 3:28:22 PM Representative Thomas indicated that the fiscal note covered both PCE and non PCE. Ms. Fisher-Goad agreed; she recommended that the fiscal notes be refined. The House approach is different from the Senate; $67 million would be allocated for the non PCE portion of the power cost assistance and $91 million dollars allocated for the traditional PCE communities which will be adjusted when there is more information regarding commercial customers. 3:29:23 PM Representative Kelly asked if the current program would be the $37 million, if the supplemental passed, moving to $67 million dollars. Ms. Fisher-Goad noted Page 2 of the fiscal note which indicates the breakdown of the $158 million dollars for PCE classic and the new program which includes commercial applicants. 3:30:20 PM Vice-Chair Stoltze did not understand the mechanics regarding separate meters for home businesses. Ms. Fisher- Goad understood that there would be separate meters and the utilities do distinguish between those customers. Typically, there would be two meters, one for commercial and the other for residential. Home businesses in PCE eligible communities are considered residential, up to 500 kWh. 3:32:26 PM Representative Kelly asked direction to the $158 million dollar reference in the fiscal note. Ms. Fisher-Goad stated that she had provided the information and would ensure that it got to the committee. 3:34:09 PM Mr. Sherwood addressed three fiscal notes prepared by the Department of Health and Social Services. The first is for LIHEAP and the Alaska Heating Assistance Programs. The total cost is just over $10 million dollars which will pay $9,772,000 including $300,000 for administration. The programs using the maximums in the bill would cost $30 million, with $20.7 million already appropriated for the two programs. The average benefit under LIHEAP using 13 points would be $1,657 per person and Alaska Heating Assistance with five points per household would be $637.50. 3:36:45 PM Mr. Sherwood explained that the next fiscal note addresses the permanent fund hold harmless program, which is affected by the increased Permanent Fund Dividend (PFD) component. This hold harmless program amounts to $400,000. Additional funds have been received in anticipation of a larger hold harmless program. Representative Hawker understood that the administration level is adequate. Lost benefits are sourced out of the PFD hold harmless category. He asked if that was correct or would additional General Funds be needed to charge the fund first. Mr. Sherwood requested that Ms. Fitzgerald testify. ALLIE FITZJARRALD, ACTING DIRECTOR, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, addressed the query. 3:40:28 PM Mr. Sherwood addressed a hold harmless benefit for veterans'. The estimate is $1.2 million required to provide these hold harmless benefits. Additional staff would be necessary with funds to support them. Some veterans receive their benefit based on a priority level. The pension benefit is estimated at about $1000 per person and $831,000 is the estimated cost of providing medical benefits for the 500 veterans receiving medical assistance. 3:42:44 PM Representative Thomas asked if the Senate version of the bill would involve the same expense to the state. Mr. Sherwood responded that the other proposal involves paying both a dividend and fuel assistance and the Veterans' Administration would count the fuel assistance as income. The Senate proposal would cost more money to replace the lost Veterans' benefits. Co-Chair Meyer understood that the other proposal was fluid. Ms. Fitzjarrald commented on the other version and the Veterans' piece possibly making up the high end of the cost. There is not enough information to accurately gage the cost. 3:44:46 PM Representative Gara mentioned the hold harmless provisions and the classes of people affected. The payment should not be counted as income, meaning they might lose eligibility for public housing. He asked if all of the individuals currently protected by the hold harmless provision were still protected. Ms. Fitzjarrald responded that the programs operated by HESS are still protected. Representative Gara understood that because the resource rebate was a one year payment, it would not count as income. Representative Gara questioned whether individuals with subsidized payments at the Pioneer Home would be allowed to keep their payments. Ms. Fitzjarrald said yes. 3:47:29 PM AMANDA RYDER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, addressed the two fiscal notes provided by the Department for the bulk fuel bridge loan fund. The first note capitalizes the fund at $2,518,000. The appropriation from the fund for administrative costs is $18,000. The $2,518,000 is due to the raised cap of $500,000 to $750,000. Representative Hawker expressed agreement with the fiscal note. He clarified that the money would increase the bulk fuel bridge loan fund. He had not seen a fiscal note for the bulk fuel revolving loan fund which is submitted by the Alaska Energy Authority (AEA.) Co-Chair Meyer asked if the Committee was expecting a fiscal note from AEA. Representative Hawker reiterated that the committee had raised both Bulk Fuel Bridge loan fund and the Bulk Fuel Revolving Loan Fund and he expected a comparable fiscal note from AEA. He asked if AEA had adequate funding authority. Ms. Ryder stated that an additional $3 million dollars would be required for the fiscal note. It is being worked on in an appropriation bill. She had not signed a fiscal note for the Bulk Fuel Revolving Loan Fund. 3:51:44 PM JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE, referenced two fiscal notes. The first note concerned the Resource Rebate or $1000 per PFD eligible individual at an amount of $620 million dollars, with $100,000 for administrative expenses. Mr. Burnett did not anticipate putting the General Fund through the Department of Revenue for the hold harmless provision. The payment would be identified separately, even though it is on the same check. If a college student were to request financial aid, then a request to the financial aid advisor must be made so that the one time payment is not considered income. 3:54:24 PM Representative Hawker asked if the cash distribution stream was taken into consideration for needs based programs. If there is another big cash distribution next year, will money be collected then? Mr. Burnett did not expect that to happen. Representative Hawker asked if it was the administration's position that this is a one-time only payment. Mr. Jerry Burnett affirmed that this is a one-time only payment. 3:56:17 PM Representative Gara asked why the student was responsible to communicate to the financial aid advisor when hold harmless was automatic. Mr. Burnett explained that federal law requires that with a one-time payment, the student must request that the university not consider it income, which is true of any kind of federal payment. Representative Gara did not think that it would be simple to notify students about this federal law. The only way to do it would be to have Universities flag applications for financial aid. Mr. Burnett reported that in Juneau, where his wife is the director of financial aid, applications will be handled appropriately. Representative Gara asked if intent language would be helpful to ensure that Universities address this need on financial aid applications. Mr. Burnett did not know, because many of these students will be attending schools throughout the United States. Representative Gara planned to talk to Legislative Legal or the University about that. Representative Nelson suggested the Alaska Post Secondary Commission be contacted on this note. 3:58:36 PM Mr. Burnett said the second fiscal note is for the motor fuel tax suspension. This includes a reduction in revenue of $33,250,000 in FY09 and $39 million in FY10 and FY11. The appropriation bill included $150,000 for shared taxes which was noted in the fiscal note for municipalities. Co-Chair Meyer was given the fiscal note prepared by Sarah Fisher-Goad regarding the Bulk Fuel Revolving Loan Fund. Representative Thomas stated that she had explained the note to the committee earlier. Co-Chair Meyer stated that the total of all the fiscal notes was $750 million. Co-Chair Meyer suggested that since the Senate was farther along with their bill, House Finance could hold this bill for now until the Senate bill passes. 4:02:54 PM HB 4005 was HELD in Committee for further consideration. #  ADJOURNMENT The meeting was adjourned at 4:03 PM