Legislature(1993 - 1994)

1993-02-03 Senate Journal

Full Journal pdf

1993-02-03                     Senate Journal                      Page 0221
SB 88                                                                        
SENATE BILL NO. 88 by the Senate Rules Committee by request                    
of the Governor, entitled:                                                     
                                                                               
"An Act relating to grants to municipalities, named                           
recipients, and unincorporated communities;                                    
establishing capital project matching grant programs                           
for municipalities and unincorporated communities;                             
establishing a local share requirement for capital                             
project grants to municipalities, named recipients,                            
and unincorporated communities; and providing for                              
an effective date."                                                            
                                                                               
was read the first time and referred to the Community and Regional             
Affairs and Finance Committees.                                                
                                                                               
Zero fiscal notes from Department of Environmental Conservation,               
Department of Labor and Department of Commerce and Economic                    
Development and fiscal notes from Department of Administration and             
Department of Community and Regional Affairs (2) published today.              
                                                                               
                                                                               

1993-02-03                     Senate Journal                      Page 0222
SB 88                                                                        
Governor's transmittal letter dated February 3:                                
                                                                               
Dear Mr. President:                                                            
                                                                               
In accordance with art. III, sec. 18, of the Alaska Constitution, I am         
transmitting a bill establishing capital project matching grant                
programs for municipalities and unincorporated communities, and                
establishing local share requirements for other capital project grants         
to municipalities, named recipients, and unincorporated communities.           
                                                                               
The capital project matching grant programs and the local share                
requirements for other capital project grants have two main                    
objectives.  One objective is to encourage a sense of local ownership          
in capital projects by requiring municipalities, unincorporated                
communities, and named grant recipients to participate financially in          
them.  This local participation will help grantees to determine their          
highest priorities and help ensure that only the most important and            
cost-effective projects are undertaken.  The second objective is to            
leverage the use of state money in the financing of capital projects,          
which will be a particularly important policy to adopt given the               
expected decline of state revenue in the future.  In addition, the new         
capital project matching grant programs for municipalities and                 
unincorporated communities provide an orderly and thoughtful                   
planning and review process that involves local communities, the               
executive branch, and the legislature.                                         
                                                                               
There is a distinction between the new capital project matching grant          
programs and the new local share requirements for other capital                
project grants.  It is intended that the new matching grant programs           
be used for relatively small capital projects proposed by                      
municipalities and unincorporated communities, and that the new                
local match requirements for municipalities, named recipients, and             
unincorporated communities apply to other types of larger capital              
projects funded through grants made under AS 37.05.315 -                       
37.05.317.                                                                     
                                                                               
The focus of this bill is the proposed new capital project matching            
grant programs in AS37.06.  Much like a block grant program,                   
these programs would establish two funds (one with individual                  
accounts for all municipalities and one with individual accounts for           
all unincorporated communities participating in the state's revenue-           

1993-02-03                     Senate Journal                      Page 0223
SB 88                                                                        
sharing program) from which small-scale capital projects can be                
funded by project-specific appropriations.  (I am also transmitting a          
companion bill making appropriations to the two funds, as the first            
step in this funding process.)  The projects would be selected and             
prioritized at the local level, well before each year's legislative            
session, and a prioritized project list would be submitted to the              
governor for inclusion in the capital improvements program.  The               
governor would provide the legislature with reasons for any                    
differences between the local list and the capital improvements                
program submitted to the legislature.  In each case, the projects              
funded by the appropriations would be subject to local financial               
match requirements, including allowances for in-kind matching                  
contributions.  In addition, under the bill the same local match               
requirements and in-kind allowances would be extended to all grants            
currently made to municipalities, named recipients, and                        
unincorporated communities under AS37.05.315-37.05.317.                        
                                                                               
My Office of Management and Budget has prepared a section-by-                  
section description of the bill which is available for your review.            
                                                                               
The net effect of the bill is that all capital project grants to               
municipalities, named recipients, and unincorporated communities               
would be subject to local financial match requirements, regardless of          
whether they are funded through the capital project matching grant             
programs established by this bill or under the existing provisions of          
AS37.05.315 - 37.05.317 as amended by this bill.                               
                                                                               
This bill is important because it expands the role of local                    
communities in determining the capital improvements and capital                
projects that will best suit their local needs.  It is also important          
because of the precedent it sets in requiring a local stake in capital         
projects and because it allows limited state financial resources to            
support a greater number of needed capital projects than otherwise             
would be possible.  For all of these reasons, I seek and encourage             
your support for this bill.                                                    
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor