Legislature(1993 - 1994)
05/02/1994 08:30 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 2, 1994
8:30 A.M.
TAPE HFC 94 - 150, Side 1, #000 - end.
TAPE HFC 94 - 150, Side 2, #000 - #260.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Martin
Representative Foster Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf
Representatives Hanley and Hoffman were not present for the
meeting.
ALSO PRESENT
Representative John Davies; Representative Jerry Mackie;
Sherrie Goll, Fairbanks Alliance for People, Anchorage In-
Service Coalition, Juneau; Elmer Lindstrom, Special
Assistant, Department of Health and Social Services; Wendy
Redman, Vice President for University Relations, University
of Alaska; Will Gay, (Testified via teleconference), Alaska
Housing Finance Corporation, Anchorage; Alison Elgee, Budget
Director, University of Alaska, Anchorage.
SUMMARY
SB 368 An Act relating to the human services community
matching grant program; and providing for an
effective date.
SB 368 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Health and Social Services dated
4/08/94.
HB 466 An Act authorizing the issuance of bonds by the
Alaska Housing Finance Corporation to pay for the
costs of repair and rehabilitation of student
housing facilities of the University of Alaska;
authorizing the issuance of bonds by the
University of Alaska to pay for the costs of
1
repair and rehabilitation of facilities of the
University of Alaska; amending powers of the
Alaska Housing Finance Corporation; amending the
definition of "public building"; relating to the
Alaska debt retirement fund; and providing for an
effective date.
HB 466 was HELD in Committee for further
consideration.
SENATE BILL 368
"An Act relating to the human services community
matching grant program; and providing for an effective
date."
Representative Therriault endorsed SB 368 introduced by
Senator Bert Sharp. The Anchorage and Fairbanks Social
Service Block Grants were created in the early 1980's to
provide those communities with state assistance for needed
social services. In addition to serving local residents,
approximately 11% of the total clients and as many as 73% of
clients served by some local providers would come from other
areas within the State.
He added, in 1992, a statutory basis was established for the
Human Services Community Matching Grant Program. The
program required an increased match rate, although
previously no local match was required. Representative
Therriault noted that local municipalities are seeing
reductions of municipal assistance and revenue sharing, and
that the proposed legislation would stabilize the matching
grants at the 30/70 percent match rate which would bring the
Human Services Community Matching Grant Program into line
with other programs that require matching funds.
Co-Chair MacLean questioned why the grant would cover only
Fairbanks and Anchorage.
SHERRIE GOLL, FAIRBANKS ALLIANCE FOR PEOPLE, THE ANCHORAGE
IN-SERVICE COALITION, JUNEAU, explained that the statute was
not written so that it would exclude other communities. It
was written to address the greatest population baseline.
The only communities which qualify in that baseline would be
Anchorage and Fairbanks which are the only communities
required to provide a match. She added that the other
grants in the human service block, which are not state
provided are in the BRU's for the various rural communities.
There are not required to make a match.
Representative Therriault commented that the block grants
had statutory authority. The balance was then assigned to
2
departmental BRU's and the large municipalities did not
participate in that funding.
Co-Chair MacLean predicted that there would be a state
fiscal impact. Representative Therriault replied that the
request would match current fiscal year percentages.
Representative Brown spoke in support of the Anchorage human
service grant program which provides vital services to
people in need.
ELMER LINDSTROM, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, reiterated that
there would be no fiscal impact to the State although the
measure could have an effect of reducing the amount
available for projects if the municipalities do not provide
a higher match level.
Representative Parnell MOVED to report SB 368 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 368 was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Health and Social Services dated 4/08/94.
HOUSE BILL 466
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date."
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, ANCHORAGE, explained that HB 466 would
include authorization for $30 million dollars in bonds to
construct student housing at the Anchorage campus. She
added that student housing has been an UAA's capital request
for a number of years. UAA's 384 beds can accommodate only
2.6% of the student needs. The current demand was measured
by a student survey which indicated a need for an additional
2000 beds. The proposed funding would enable UAA to
construct 600 dormitory beds as well as common areas for
food service, study, lounge and laundry facilities.
Ms. Redman continued, that the legislation would authorize
3
the Alaska Housing Finance Corporation to issue $30 million
dollars in bonds for student housing repair and
rehabilitation of other university facilities. The program
would allow buildings to be constructed with the cost spread
over the remaining life of the facilities.
Ms. Redman provided Committee members with a list of
priority projects. [Copy on file]. Repayment of the debt
service will be made from annual legislative appropriations
from the Alaska debt retirement fund (AS 37.05.011).
Co-Chair MacLean inquired who would be responsible for the
cost of the payment. Ms. Redman replied that the bill would
direct that the Alaska debt retirement fund pay for the
bond. Those payments would appear in the FY96 budget. She
added that the total deferred maintenance need in Anchorage
amounted to $22 million dollars.
Representative Brown questioned the zero fiscal note. Ms.
Redman noted there would be no payment in FY95. Discussion
followed regarding the fiscal impact of the legislation.
Ms. Redman explained that no revenue is generated on the
facilities except for student housing and that revenue is
placed into the costs of operations and maintenance of those
facilities.
Representative Brown asked the cost to the State without the
legislation. Ms. Redman replied that it would total the
cost of protecting the infrastructure. Co-Chair MacLean
argued that additional costs would exist for any state
facilities. Ms. Redman reminded the Committee that she
spoke for the student body and that deferred maintenance was
their number one priority. Co-Chair MacLean criticized the
University's level of financial support in the FY95 budget.
She did not feel they should be requesting additional funds.
WILL GAY, (TESTIFIED VIA TELECONFERENCE), ALASKA HOUSING
FINANCE CORPORATION, ANCHORAGE, noted that Alaska Housing
Finance Corporation (AHFC) would support the bonding
requested by the legislation. HB 466 would allow AHFC to
exchange assets for a chance to have income to offset the
transfer.
Representative Brown asked how the bonding debt service
would be paid. Mr. Gay responded the bill provided a
section defining the special obligations originating from
revenue and receipts derived under agreement with the
University of Alaska as described and provided by the
University's budget and student housing payments.
Representative Therriault reiterated that deferred
4
maintenance was the number one priority of the University,
stressing that it is a problem which will continue to grow
if not addressed. The Board of Regents has guaranteed that
once the problem is remedied, they will not allow it to
occur again.
(Tape Change, HFC 94-150, Side 2).
Co-Chair MacLean provided the Committee with a handout
itemizing the Department of Education's deferred maintenance
project list requested statewide from K - University level.
She suggested that these projects should be considered in
addition to the University's projects. [Copy on file].
Representative Therriault strongly opposed the list as
provided by Co-Chair MacLean. Co-Chair MacLean stated that
this legislation would be a policy call.
REPRESENTATIVE JOHN DAVIES deliberated on concerns impacting
the University's deferred maintenance which have resulted in
action by the University to request bonding. He recommended
that adding Co-Chair MacLean's list would negatively impact
the legislation's passage. Discussion followed regarding
incorporation of the maintenance projects for K-12 to HB 466
and how that would impact the bills passage.
HB 466 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 9:50 A.M.
HOUSE FINANCE COMMITTEE
May 2, 1994
8:30 A.M.
TAPE HFC 94 - 150, Side 1, #000 - end.
TAPE HFC 94 - 150, Side 2, #000 - #260.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Martin
Representative Foster Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf
Representatives Hanley and Hoffman were not present for the
5
meeting.
ALSO PRESENT
Representative John Davies; Representative Jerry Mackie;
Sherrie Goll, Fairbanks Alliance for People, Anchorage In-
Service Coalition, Juneau; Elmer Lindstrom, Special
Assistant, Department of Health and Social Services; Wendy
Redman, Vice President for University Relations, University
of Alaska; Will Gay, (Testified via teleconference), Alaska
Housing Finance Corporation, Anchorage; Alison Elgee, Budget
Director, University of Alaska, Anchorage.
SUMMARY
SB 368 An Act relating to the human services community
matching grant program; and providing for an
effective date.
SB 368 was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Health and Social Services dated
4/08/94.
HB 466 An Act authorizing the issuance of bonds by the
Alaska Housing Finance Corporation to pay for the
costs of repair and rehabilitation of student
housing facilities of the University of Alaska;
authorizing the issuance of bonds by the
University of Alaska to pay for the costs of
repair and rehabilitation of facilities of the
University of Alaska; amending powers of the
Alaska Housing Finance Corporation; amending the
definition of "public building"; relating to the
Alaska debt retirement fund; and providing for an
effective date.
HB 466 was HELD in Committee for further
consideration.
SENATE BILL 368
"An Act relating to the human services community
matching grant program; and providing for an effective
date."
Representative Therriault endorsed SB 368 introduced by
Senator Bert Sharp. The Anchorage and Fairbanks Social
Service Block Grants were created in the early 1980's to
provide those communities with state assistance for needed
social services. In addition to serving local residents,
approximately 11% of the total clients and as many as 73% of
6
clients served by some local providers would come from other
areas within the State.
He added, in 1992, a statutory basis was established for the
Human Services Community Matching Grant Program. The
program required an increased match rate, although
previously no local match was required. Representative
Therriault noted that local municipalities are seeing
reductions of municipal assistance and revenue sharing, and
that the proposed legislation would stabilize the matching
grants at the 30/70 percent match rate which would bring the
Human Services Community Matching Grant Program into line
with other programs that require matching funds.
Co-Chair MacLean questioned why the grant would cover only
Fairbanks and Anchorage.
SHERRIE GOLL, FAIRBANKS ALLIANCE FOR PEOPLE, THE ANCHORAGE
IN-SERVICE COALITION, JUNEAU, explained that the statute was
not written so that it would exclude other communities. It
was written to address the greatest population baseline.
The only communities which qualify in that baseline would be
Anchorage and Fairbanks which are the only communities
required to provide a match. She added that the other
grants in the human service block, which are not state
provided are in the BRU's for the various rural communities.
There are not required to make a match.
Representative Therriault commented that the block grants
had statutory authority. The balance was then assigned to
departmental BRU's and the large municipalities did not
participate in that funding.
Co-Chair MacLean predicted that there would be a state
fiscal impact. Representative Therriault replied that the
request would match current fiscal year percentages.
Representative Brown spoke in support of the Anchorage human
service grant program which provides vital services to
people in need.
ELMER LINDSTROM, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, reiterated that
there would be no fiscal impact to the State although the
measure could have an effect of reducing the amount
available for projects if the municipalities do not provide
a higher match level.
Representative Parnell MOVED to report SB 368 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
7
SB 368 was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Health and Social Services dated 4/08/94.
HOUSE BILL 466
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date."
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, ANCHORAGE, explained that HB 466 would
include authorization for $30 million dollars in bonds to
construct student housing at the Anchorage campus. She
added that student housing has been an UAA's capital request
for a number of years. UAA's 384 beds can accommodate only
2.6% of the student needs. The current demand was measured
by a student survey which indicated a need for an additional
2000 beds. The proposed funding would enable UAA to
construct 600 dormitory beds as well as common areas for
food service, study, lounge and laundry facilities.
Ms. Redman continued, that the legislation would authorize
the Alaska Housing Finance Corporation to issue $30 million
dollars in bonds for student housing repair and
rehabilitation of other university facilities. The program
would allow buildings to be constructed with the cost spread
over the remaining life of the facilities.
Ms. Redman provided Committee members with a list of
priority projects. [Copy on file]. Repayment of the debt
service will be made from annual legislative appropriations
from the Alaska debt retirement fund (AS 37.05.011).
Co-Chair MacLean inquired who would be responsible for the
cost of the payment. Ms. Redman replied that the bill would
direct that the Alaska debt retirement fund pay for the
bond. Those payments would appear in the FY96 budget. She
added that the total deferred maintenance need in Anchorage
amounted to $22 million dollars.
Representative Brown questioned the zero fiscal note. Ms.
Redman noted there would be no payment in FY95. Discussion
followed regarding the fiscal impact of the legislation.
Ms. Redman explained that no revenue is generated on the
8
facilities except for student housing and that revenue is
placed into the costs of operations and maintenance of those
facilities.
Representative Brown asked the cost to the State without the
legislation. Ms. Redman replied that it would total the
cost of protecting the infrastructure. Co-Chair MacLean
argued that additional costs would exist for any state
facilities. Ms. Redman reminded the Committee that she
spoke for the student body and that deferred maintenance was
their number one priority. Co-Chair MacLean criticized the
University's level of financial support in the FY95 budget.
She did not feel they should be requesting additional funds.
WILL GAY, (TESTIFIED VIA TELECONFERENCE), ALASKA HOUSING
FINANCE CORPORATION, ANCHORAGE, noted that Alaska Housing
Finance Corporation (AHFC) would support the bonding
requested by the legislation. HB 466 would allow AHFC to
exchange assets for a chance to have income to offset the
transfer.
Representative Brown asked how the bonding debt service
would be paid. Mr. Gay responded the bill provided a
section defining the special obligations originating from
revenue and receipts derived under agreement with the
University of Alaska as described and provided by the
University's budget and student housing payments.
Representative Therriault reiterated that deferred
maintenance was the number one priority of the University,
stressing that it is a problem which will continue to grow
if not addressed. The Board of Regents has guaranteed that
once the problem is remedied, they will not allow it to
occur again.
(Tape Change, HFC 94-150, Side 2).
Co-Chair MacLean provided the Committee with a handout
itemizing the Department of Education's deferred maintenance
project list requested statewide from K - University level.
She suggested that these projects should be considered in
addition to the University's projects. [Copy on file].
Representative Therriault strongly opposed the list as
provided by Co-Chair MacLean. Co-Chair MacLean stated that
this legislation would be a policy call.
REPRESENTATIVE JOHN DAVIES deliberated on concerns impacting
the University's deferred maintenance which have resulted in
action by the University to request bonding. He recommended
that adding Co-Chair MacLean's list would negatively impact
the legislation's passage. Discussion followed regarding
9
incorporation of the maintenance projects for K-12 to HB 466
and how that would impact the bills passage.
HB 466 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 9:50 A.M.
10
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