04/08/2009 04:35 PM Senate FIN

SENATE BILL NO. 75                                                                                                            
                                                                                                                                
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     and appropriations  to capitalize funds;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
6:27:55 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  MOVED  to ADOPT  Work  Draft  26-GS1003\C,                                                                    
Kane, 4/8/09. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
MILES  BAKER,  STAFF,  SENATE FINANCE  COMMITTEE,  explained                                                                    
that  the  appropriations in  version  C,  CSSB 75(FIN)  are                                                                    
depicted  in  the  summary  handouts  "2009  Capital  Budget                                                                    
Agency  Summary,  Senate   Structure"  and  "Capital  Budget                                                                    
Statewide  Totals, Senate  Structure" (copies  on file).  He                                                                    
explained  that  the  various   columns  correspond  to  the                                                                    
sections noted in the CS.                                                                                                       
                                                                                                                                
6:33:22 PM                                                                                                                    
                                                                                                                                
Mr. Baker called attention to  the Funds Transfer section on                                                                    
page 62, Section 14, subsections  (a) through (e). He called                                                                    
attention to subsection (a) the  transfer of income from the                                                                    
Amerada Hess  earnings to the capital  income fund estimated                                                                    
at $21  million. He also  pointed out that Section  17, page                                                                    
64,  contains  the  legislative re-appropriations  based  on                                                                    
lapsing or unexpended  unobligated prior year appropriations                                                                    
based on  consultations with  each individual  member broken                                                                    
out by House district.                                                                                                          
                                                                                                                                
Mr. Baker cited Section 37,  page 75 the re-appropriation of                                                                    
legislatures    lapsing   operating    appropriations   from                                                                    
Legislative   Council,   Legislative    Budget   and   Audit                                                                    
Committee,  and  legislative  operating  appropriations.  He                                                                    
summarized that  most of the  re-appropriated money  will be                                                                    
spent on  capital improvements in  the Capitol  Building and                                                                    
noted  that  $300,000   is  re-appropriated  to  Legislative                                                                    
Council to develop a statewide energy plan.                                                                                     
                                                                                                                                
6:36:03 PM                                                                                                                    
                                                                                                                                
Mr. Baker  noted that  Section 39,  page 76,  delineates the                                                                    
appropriations  of  the  federal  Coastal  Impact  Assistant                                                                    
Program. He explained that these  funds are to help mitigate                                                                    
the impact of oil and  gas development.  The larger boroughs                                                                    
in the state receive 35 percent  of the funds directly via a                                                                    
federal  designation,  Costal Political  Subdivisions.  This                                                                    
group is expected to receive  approximately $29 million. The                                                                    
amount that is  passed through the state is  estimated to be                                                                    
$53.6 million.  The distribution of these  funds is detailed                                                                    
in Section 39.                                                                                                                  
                                                                                                                                
6:39:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman summarized  that the  capital bill  totals                                                                    
approximately $1.8  billion, which includes the  DOT federal                                                                    
economic  stimulus funds.  He stated  that out  of the  $1.8                                                                    
billion  roughly,  $483 million  are  state  funds and  $1.3                                                                    
billion are federal funds. This  bill produces less spending                                                                    
than  the  administration's  original  proposal  of  $513.14                                                                    
million.                                                                                                                        
                                                                                                                                
Co-Chair Stedman voiced that  this capital budget represents                                                                    
a balance between the need  to stimulate the economy without                                                                    
consuming the state's savings accounts too precipitously.                                                                       
                                                                                                                                
CSSB  75  was  HEARD  and  HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
6:42:57 PM