04/27/2001 09:31 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 29                                                                                                         
     "An Act making  capital appropriations and capitalizing  funds;                                                            
     making appropriations  under art. IX, sec. 17(c),  Constitution                                                            
     of the State of Alaska,  from the constitutional budget reserve                                                            
     fund; and providing for an effective date."                                                                                
                                                                                                                                
                                                                                                                                
DJ WHITMAN  testified  via teleconference  from  Seward, and  voiced                                                            
concern about  the funding  allocation for  the Seward Shipyard.  He                                                            
noted that $1.5  million was "scheduled out for Ketchikan  shipyard"                                                            
while there  is only $1 million for  the Seward shipyard.  He stated                                                            
that both ports  serve the Alaska  Marine Highway System  on a "fair                                                            
and equal basis" and Seward should be funded equally.                                                                           
                                                                                                                                
BEN CARDINO testified via  teleconference from Seward, and indicated                                                            
that he  felt the same way  as Mr. Whitman.  He noted that  this was                                                            
not  against Ketchikan,  but  that Seward  should  receive an  equal                                                            
share of the money that was available.                                                                                          
                                                                                                                                
Co-Chair  Kelly directed  attention to COMMITTEE  SUBSTITUTE  SB 29,                                                            
22-GS1050/F,  page 4,  line 4  and the  funding  information on  the                                                            
Seward Shipyard for $1 million.                                                                                                 
                                                                                                                                
Senator  Leman  noted  that  on  page  68  of  Version  "F"  is  the                                                            
information on  the funding for the Ketchikan shipyard.  He informed                                                            
that it specifies  $1 million of state  funds that would  be matched                                                            
by local  funds of an additional  $1.5 million.  He commented  there                                                            
might have been  some misinformation on the amount  of state funding                                                            
and hoped this would clarify it.                                                                                                
                                                                                                                                
Co-Chair Kelly commented that was a good point.                                                                                 
                                                                                                                                
DAVID  BROSSOW  testified   via  teleconference  from   Seward,  and                                                            
commented  that Seward  would like  to be given  the opportunity  to                                                            
receive "fair and equal treatment" where funding is concerned.                                                                  
                                                                                                                                
Senator Austerman  responded to comments  from the Seward  witnesses                                                            
by stating  that the  Ketchikan funding  was based  on a need  for a                                                            
feasibility study for an  expansion project there. He asked if there                                                            
was any expansion program planned for Seward.                                                                                   
                                                                                                                                
Mr. Whitman  answered, on  behalf of Seward's  dry-dock operations,                                                             
that there  is an expansion  plan for Seward's  dry-dock, and  it is                                                            
just as critical to them as Ketchikan's is to Ketchikan.                                                                        
                                                                                                                                
Senator Leman  stated that  he had seen the  expansion plan  for the                                                            
Ketchikan shipyard, but  had not seen Seward's. He asked, if one was                                                            
available,  to let the Committee members  know where it was  so they                                                            
could look at it.                                                                                                               
                                                                                                                                
Co-Chair Kelly  added that the $1 million for Seward  was not in the                                                            
governor's  budget, but  had been  added at the  request of  Senator                                                            
Torgerson.                                                                                                                      
                                                                                                                                
NATHAN ORR, Seward  City Council, testified via teleconference  from                                                            
Seward, and  thanked Senator Torgerson  and the Committee  for their                                                            
consideration.  He commented that most of the improvements  that had                                                            
been done  at the Seward  dry-dock were done  with private  business                                                            
funds.  With these  additional state  funds, he  added, and  perhaps                                                            
with a  match by  Seward city  funding,  the yard could  be taken  o                                                            
another level of service.                                                                                                       
                                                                                                                                
JAMES  PRUITT,  President,  Seward  Ships Dry  Dock,  testified  via                                                            
teleconference  from Seward, commented  that his company  and Seward                                                            
are on  "a development  path."  He appreciated  the funding  support                                                            
that  could  create  jobs  for  the  community  and  boost  economic                                                            
development.                                                                                                                    
                                                                                                                                
Co-Chair Kelly commented  that when planning a capital budget, there                                                            
is a  limited amount  of money  available,  and it  is not just  one                                                            
community  in competition  with another,  but all  communities  in a                                                            
sense  are in  competition with  each other.  He  said that  Senator                                                            
Torgerson  did  an "outstanding  job"  finding  $1 million  for  the                                                            
community of Seward.                                                                                                            
                                                                                                                                
JANET MCCABE,  Board of Directors,  Downtown Progress in  Anchorage,                                                            
testified via teleconference  from Anchorage, asked for the addition                                                            
to  the budget  of $272,000  for  the Anchorage  Wellness  Court,  a                                                            
therapeutic  court at the District  Court level. She said  that this                                                            
"program  works  by  getting  to  the  core  of  the  problem".  She                                                            
continued  that the court  was extremely  cost effective because  it                                                            
offset the  costs of jail  time, alcoholism  treatment, court  time,                                                            
and other costs incurred by alcoholism.                                                                                         
                                                                                                                                
Co-Chair Kelly  stated $75,000 is allocated for the  Wellness Court,                                                            
and he thought that was  the level of current need. He noted further                                                            
discussion  could  take place  during  the  budget process  if  that                                                            
funding was inadequate.                                                                                                         
                                                                                                                                
AT EASE 9:40 AM/10:57 AM