Legislature(2003 - 2004)
05/07/2003 09:01 AM Senate FIN
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SENATE BILL NO. 100
"An Act making capital appropriations and reappropriations;
capitalizing a fund; 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."
This was the thirteenth hearing for this bill in the Senate Finance
Committee.
Amendment #8: This amendment is outlined in a memorandum from Mike
Barton, Commissioner, Department of Transportation and Public
Facilities to Cheryl Frasca, Director, Office of Management and
Budget dated May 2, 2003, which reads as follows.
The Department of Transportation and Public Facilities is
requesting amendments to the capital budget bills (HB 150 and
SB 100) before the Legislature.
Rural Airport Projects
The Department is requesting the following changes to rural
airport capital projects:
Amend
Chevak: Snow Removal Equipment Building
Increase from $50,000 to $200,000 federal receipt
authority. The cost to build this structure has increased over
previous estimates. This amount is needed in addition to an FY
03 appropriation to bring the total estimated cost to
$750,000.
Add
Scammon Bay: Airport Snow Removal Equipment Building
$100,000 federal receipts. Reflects revised Airport
Improvement Program request. This project will upgrade the
Scammon Bay Snow Removal Equipment Building.
Statewide: Various Airport Snow Removal Equipment
$4,300,000 federal receipts. This was inadvertently
omitted from the Department's original request. The project
provides federal authority to purchase new or replacement snow
removal equipment at several rural airports.
Surface Transportation Projects
The Department's current AMATS [Anchorage Metropolitan Area
Transportation Study] and Surface Transportation requests are
$68,734,000 and $416,092,600.
The following reductions are being requested to various
highway projects:
($39,906,000) Over the past year there has been a
decrease in the amount of federal fuel tax revenues collected,
which have caused a corresponding reduction in the highway
construction program. A reduction in specific projects is
being requested to reflect delays due to the decreased federal
funding.
($48,125,000) This amendment requests project
reductions where the Department has determined that adequate
project authority already exists to continue work through FH
04.
($1,205,000) Also being requested is a reduction in
TRAAK [Trails and Recreation Access for Alaska] projects to
reflect a program allocation decrease.
The following additions are being requested:
$55,416,000 New or increased federal project authority
is being requested where scope changes, funding breakdown,
updated estimates or priorities have changed.
$21,700,000 Project authority is needed for earmarks
contained within the recently approved congressional
appropriation bill.
Finally, the amendment contains the elimination of individual
pavement and bridge projects and combines them into regionwide
allocations. This will provide the regions flexibility in
determining their greater need, pavement or bridge repair.
Similar adjustments are taking place for AMATS and FMATS
[Fairbanks Metropolitan Area Transportation Study] projects.
The net effect of these amendments is a reduction of
$12,220,000 to the AMATS and Surface Transportation
appropriation requests. A spreadsheet with the changes is
attached [copy on file].
Co-Chair Wilken moved for the adoption of Amendment #8 and objected
for discussion. He shared that the Department of Transportation and
Public Facilities has submitted this amendment as the result of an
expected decrease in FY 04 federal funding.
Amendment to Amendment #8: This amendment to the amendment proposes
to alter the funding methodology regarding Anchorage Metropolitan
Area Transportation Study (AMATS) and Fairbanks Metropolitan
Transportation Study (FMATS).
Co-Chair Wilken moved to amend Amendment #8. He stated that this
motion is in response to Committee questions regarding the
amendment's affect on AMATS and FMATS. Furthermore, he stated that
the effective date of June 30, 2003, as referenced on page two,
line eight of Amendment #8, should be correctly identified as July
1, 2003. Co-Chair Wilken objected to the motion in order to allow
for further explanation.
At Co-Chair Wilken's request, Senator B. Stevens explained that the
amendment to the amendment would address Committee concerns
regarding proposed funding reductions to AMATS and FMATS. He stated
that upon discussion with the Department, the determination was
made to combine sections of the budget pertaining to pavement and
bridge refurbishment improvements and to divvy up that combined $46
million in funding between the National Highway System and non-
National Highway System entities also referred to as non-
Metropolitan Planning Organizations (non-MPOs) and MPOs. He
continued that due to the uncertainty of the actual amount of
federal funding that would available, intent language is included
to specify that AMATS would be allocated its historical funding
level of 27 percent and FMATS would be allocated 6.9 percent of the
forthcoming federal funds. He stated "this is a good solution to
the issue," and he urged the Committee to support the amendment to
the amendment.
JEFF OTTESEN, Acting Director, Statewide Planning, Department of
Transportation and Public Facilities stated that the amendment to
the amendment would compress the three regional projects breakouts
into a single line item in the budget. Subsequently, he continued,
the intent language would specify that a pro-rata system, based on
the Statewide Transportation Improvement Plan (STIP) formula, be
used to distribute money to the MPOs. Therefore, he concluded, the
federal funds received by the State would be "fairly" appropriated
to the non-MPOs and MPOs as these federal funds "rise and fall."
Senator Hoffman asked whether the intent language would negatively
affect the flexibility of the Department to allocate funding and
potentially jeopardize construction projects that might incur cost
overruns in either Fairbanks or Anchorage.
Mr. Ottesen responded that MPOs are allocated a specific quantity
of money to manage. He stated that were a project to incur cost
overruns, the MPO could shift funding to it. However, he noted that
by doing so, the MPO might be required to delay another project.
Additionally, he noted that historically, when large projects have
incurred cost overruns, MPOs have submitted additional funding
requests to the State. He communicated that, on occasion, the State
has awarded additional monies to the MPO.
Co-Chair Wilken removed his objection to the motion.
There being no further objection, Amendment #8, as amended, was
ADOPTED.
Amendment #10: This amendment deletes the "Alaska Boating Safety
(ED [Election District] 99)" component and the $720,000 other funds
appropriation from the Department of Natural Resources on page 27,
lines 15 and 16.
Co-Chair Wilken moved for adoption of Amendment #10 and objected
for purposes of explanation. He stated that when the original
Boating Safety bill was adopted a few years earlier, the
Legislature understood that the program would be 100 percent
federally funded and that no additional funds would be required to
administer the program. He communicated that, without affecting the
federal contribution, the State annually collects approximately
$120,000 in user fees, which are deposited into the general fund.
Senator Bunde asked which boating safety programs would be impacted
by the funding reduction.
Co-Chair Wilken clarified that the program's overall funding was
decreased from the requested $720,000 to $600,0000. He mentioned
that, at the $600,000 level, the program would receive essentially
flat funding, as its historical funding levels were $600,000 in FY
03 and $660,000 each for FY 02 and FY 01.
Senator Hoffman questioned the Amendment's wording as it indicates
that the entire funding amount of $720,000 would be eliminated.
AT EASE 9:12 AM / 9:13 AM
Amendment to Amendment #10: This amendment specifies that the
funding level for the Boating Safety Programs would be $600,000.
Co-Chair Wilken moved to amend Amendment #10. He concurred that the
dollar amount specified in the amendment is in error. He moved to
amend the amendment to retain the "Alaska Boating Safety (ed 99)"
component and appropriate $600,000 in federal funds. He noted that
the language being altered is located on page 27, line 15 of the
bill.
There being no objection, Amendment #10, as amended, was ADOPTED.
Amendment #11: This amendment adds a "Juneau Public Health Center
Heating and Ventilation Upgrades, Phase 2 (ED 3)" component in the
Department of Health and Social Services and appropriates $647,191
general funds and $142,066 federal funds on page 24. Accompanying
explanatory language reads as follows.
The heating and ventilation systems at the Juneau Public
Health Center are on the edge of failure. Restoring funding
for this Governor's request will complete a phased project for
which the legislature has appropriated startup money in recent
years.
The current systems at the Public Health Center are inadequate
for patient care, staff comfort, and the air quality necessary
at a medical facility. The systems are in such dire need of
work that they are out of compliance with building codes. The
existing stopgap measures are expensive electric baseboard
heaters and opening and closing windows. Should the systems
fail completely, patient care will be compromised and the
center may face closure.
Because the heating and ventilation systems must be completely
replaced, further phasing of this project is not possible.
Senator Olson moved for adoption of Amendment #11.
Co-Chair Wilken objected.
Senator Olson explained that this amendment would address local
concerns regarding an inadequate and non-compliant air quality
system at the medical facility.
Co-Chair Wilken reminded that the State has previously spend
approximately $750,000 on air quality improvements at this
facility. He voiced concern that, were this amendment adopted, the
total amount spent on addressing the system would exceed one
million dollars. He suggested that perhaps the Center should
consider relocating to another facility, as the current system's
expense would be "extraordinary." He asked the Committee to not
adopt this amendment.
Senator Hoffman referenced previous comments made by Co-Chair
Wilken whereby he had specified that the State would capitalize all
federal matching funds. Senator Hoffman continued that the
amendment denotes that $142,000 in federal funds would be available
for this funding request. Therefore, he asked Co-Chair Wilken to
comment about not "capturing" these federal funds.
Co-Chair Wilken stated that he was "in error" when he voiced that
the State would match all federal match money. He stated that even
capturing $142,000 in federal money "would not make this project
better."
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Green and Co-Chair Wilken
The motion FAILED (2-5)
Amendment #11 FAILED to be adopted.
Amendment #12: This amendment adds a "Division of Sport Fish
Lower Kenai River Public Use Impact Study" component and $100,000
Fish and Game Fund appropriation to the Department of Fish and Game
and inserts intent language to read as follows.
It is the intent of the Legislature that the Department of
Fish and Game enter into an agreement for services with the
Department of Natural Resources to conduct a public analysis
on the impact of overcrowding on the lower Kenai River by
recreational user groups.
Accompanying explanatory language reads as follows.
This project and accompanying intent language, allows the
Department of Fish and Game to contract with the Department of
Natural Resources (Department of Natural Resources) for an
analysis on the impact of overcrowding on the lower Kenai
River by recreational user groups. The previous Administration
imposed a hasty guide moratorium on the Kenai River and the
current Administration rescinded that moratorium. This project
will enable the Department of Natural Resources to seek the
input of recreational users and businesses before any further
use restrictions are imposed.
This amendment also adds a "Division of Wildlife Conservation
Laboratory Remodel" component and $150,000 Fish and Game Fund
appropriation for the Department of Fish and Game. Accompanying
explanatory language reads as follows.
This project was submitted by the Office of Management and
Budget on March 24, 2003. Backup is attached [not provided.]
Co-Chair Wilken moved to adopt Amendment #12. He commented that
this amendment would result in a net zero change in the capital
budget. He clarified that in order to act upon Amendment #12, the
Committee would be required to rescind its previous action on
Amendment #6 which specifies that the fund recipient be the
Department of Natural Resources. He explained that Amendment #12
correctly specifies that the recipient of the funds be the
Department of Fish and Game. He clarified that the change is
required because State statutes require Department of Fish and Game
funds to be tunneled through the Department of Fish and Game.
In order to act on Amendment #6, Co-Chair Wilken withdrew his
motion to adopt Amendment #12.
Without objection, Amendment #12 was WITHDRAWN.
Amendment #6: This amendment adds a "Division of Parks Lower
Kenai River Public Use Impact Study" component and $100,000 Fish
and Game Fund appropriation to the Department of Natural Resources
on page 27. Accompanying explanatory language reads as follows.
This project allows the Department of Natural Resources to
conduct a public analysis on the impact of overcrowding on the
lower Kenai River by recreational user groups. The previous
administration imposed a hasty guide moratorium on the Kenai
River and the current administration rescinded that
moratorium. This CIP [Capital Improvement Project] will enable
the Department to seek the input of recreational users and
businesses before any further use restrictions are imposed.
This amendment also adds a "Division of Wildlife Conservation
Laboratory Remodel" component and $150,000 Fish and Game Fund
appropriation to the Department of Fish and Game on page 23.
Accompanying explanatory language reads as follows.
This CIP request was submitted by the Office of Management and
Budget on March 24, 2003. Backup is attached [copy on file.]
Senator Taylor moved to rescind Committee action on Amendment #6.
There being no objection, the action to adopt Amendment #6 was
RESCINDED.
Amendment #12 was again before the Committee.
Co-Chair Wilken moved for the adoption of Amendment #12. He
clarified that the language in Amendment #12 specifies that that
the funds be allocated to the Department of Fish and Game rather
than the Department of Natural Resources as incorrectly identified
in Amendment #6.
In response to a question from Senator Taylor, Co-Chair Wilken
stated that the funds in question are Department of Fish and Game
funds monies and would result "in net zero" affect on the budget.
There being no objection, Amendment 12 was ADOPTED.
Amendment #13: This amendment deletes the "Municipality of
th
Anchorage Laurel St. Upgrade, Dowling Rd. to 64 Avenue (ED 17-
32)" component in the Grants to Municipalities (AS 37.05.315) BRU
and $270,000 general fund appropriation on page 9, lines 13 16.
This amendment also inserts a "Municipality of Anchorage
Raspberry Road Upgrade, Minnesota Drive to Arctic Boulevard (ED 17-
32)" component in the in the Grants to Municipalities (AS
37.05.315) BRU on page 9, lines 13 16 and appropriates $270,000
general funds.
Accompanying explanatory language reads as follows.
According to the Municipality of Anchorage, sufficient local
bond funding is available to complete the Laurel Street
Upgrade. This amendment would utilize $270,000 previously
identified for Laurel Street Upgrade to fund the State owned
portion of the Raspberry Road Upgrade project.
Co-Chair Wilken moved for the adoption of Amendment #13 and
objected for explanation. He stated that this is a technical
amendment to redirect funding to upgrade Raspberry Road rather than
Laurel Street in Anchorage. He noted that the funding element would
remain constant.
Co-Chair Wilken removed his objection.
There being no further objection, Amendment #13 was ADOPTED.
Amendment #14: This amendment to the Department of Transportation
and Public Facilities budget is outlined in a letter to the co-
chairs of the Senate Finance Committee and the House Finance
Committee from Cheryl Frasca, Director, Office of Management and
Budget, dated May 6, 2003, as follows.
Amendment 1
Amends the title of the Surface Transportation Program
allocation
From:
"Anchorage Metropolitan Area Transportation System 2004
Preventative Maintenance on State Roads"
To:
"Anchorage Metropolitan Area Transportation System 2004
Preventative Maintenance State and Local Roads"
Amendment 2
Amends the title of the Surface Transportation Program
allocation
From:
"Fairbanks Metropolitan Area Transportation System 2004
Preventative Maintenance on State Roads"
To:
"Fairbanks Metropolitan Area Transportation System 2004
Preventative Maintenance State and Local Roads"
[Note: The components are not specified in the committee substitute
as indicated.]
Co-Chair Wilken presented Amendment #14 on behalf of Governor
Murkowski's Administration.
Co-Chair Wilken communicated that this is a technical amendment in
that it would expand some previously adopted AMATS and FMATS
project titles to include preventive road maintenance for local
roads, in addition to State roads.
Senator Taylor asked for clarification that this is a title change
rather than a reappropriation of funds.
Senator Stevens verified that the projects have previously been
approved in the legislation and that this action "is simply a
technical correction."
There being no objection, Amendment #14 was ADOPTED.
Amendment #15: This amendment adds a "City of Palmer Eagle Avenue
Improvement (ED 1316) component and $200,000 general fund
appropriation to the Grants to Municipalities (AS 37.05.315) BRU on
page 3, lines 21 and 22.
This amendment also reduces the general fund appropriations in the
following amounts to the following components in the Grants to
Municipalities (AS 37.05.315) BRU.
Page 5, lines 23 - 25
City of Wasilla Gravel to Asphalt Road Program (ED 13-16)
Reduce $250,000 to $150,000
Page 5, lines 26 28
City of Wasilla Maintenance Building (ED 13-16)
Reduce $200,000 to $150,000
Page 5, lines 29 and 30
City of Wasilla Sports Arena Equipment (ED 13-16)
Reduce $75,000 to $25,000
Accompanying explanatory language reads as follows.
The net impact of this amendment to CS SB 100 (FIN) is zero.
Eagle Avenue is a significant collector street connecting the
Glenn Highway with north Palmer neighborhoods and the Sherrod
School and Swanson School complex. The street is presently a
gravel street. This project will reconstruct approximately
2,000 feet of Eagle Avenue from the Glenn Highway to the North
Valley Way intersection to a paved street with drainage and
sidewalk improvements. This project is important to the City
as a new elementary school located at the end of Eagle Avenue
is opening in the fall of 2003.
Co-Chair Green moved to adopt Amendment #15.
Co-Chair Wilken objected for an explanation.
Co-Chair Green stated that this amendment would shift some funds
from the City of Wasilla to support a street project in the City of
Palmer. She noted that the amendment is supported by both
communities and would produce a net zero affect on the budget.
Co-Chair Wilken removed his objection.
There being no further objection, Amendment #15 was ADOPTED.
Amendment #16: This amendment adds a "Federally Funded Landowner
Incentive Program Bristol Bay/North Aleutians project" component
and $1,642,500 federal funds to the Department of Fish and Game on
page 23, line 21.
Senator Hoffman moved to adopt Amendment #16.
Co-Chair Wilken objected.
Senator Hoffman spoke to the amendment by specifying that the
amendment would provide $1.6 million in federal funds to purchase
land. He informed the Committee that several land user groups are
participating in this project.
Co-Chair Wilken noted that a $500,000 [unspecified] match would be
required in order to receive $1.6 million in federal funds with
which to purchase conservation easements on private land in the
Dillingham/Bristol Bay region. He reminded the Committee of its
"considerable discussions" regarding the removal of private land
from tax rolls and from potential development. He stated that these
are the primary reasons for his objection to the amendment.
Senator Hoffman understood that the vast majority of the affected
land would remain in private ownership.
Co-Chair Wilken agreed, but asserted that the conservation easement
might hinder future development of the land.
PAT WALKER, Staff to Senator Lyman Hoffman, informed that a
coalition comprised of fishing guides, local Native Corporations,
and local community entities has been formed in Southwest Alaska
with the intent of furthering fishing and sporting endeavors to
provide future economic development opportunities in the region.
Co-Chair Wilken understood that a conservation easement "would not
allow future development of the land."
Ms. Walker responded that the intent of the coalition is to open up
the region to these activities.
Senator Taylor inquired as to how an easement would affect the
viability of the land; specifically how would it "make property
better or worse."
Ms. Walker stated that the coalition is working to avoid adverse
impacts on the land.
Senator Taylor asked for further information regarding possible
adverse impacts.
Ms. Walker responded that pollution might be an adverse impact.
Senator Taylor stated, "that development could only happen" if
private owners chose to sell the land to developers or develop it
themselves.
Ms. Walker clarified that the Southwest Alaska coalition is
comprised of a multitude of people in the area including private
landowners. She noted that a resolution [copy on file] in support
of the easement has been provided with the amendment.
Senator Hoffman stated that, without these funds, the land could
not be purchased and utilized to enhance the economy of the region.
He asked Ms. Walker how the status of the land would be affected
were it not purchased.
Ms. Walker responded that she is unsure of the affect.
Co-Chair Wilken understood that 10,000 acres of land could be
purchased; however, he attested that the acreage has not been
identified.
Senator Bunde commented that, "realistically ? the only industry"
that could be developed in this region would be sport fishing and
sport hunting. He voiced that granting conservation easements would
have "little negative impact."
Co-Chair Wilken characterized this situation as a "policy call,"
since this transaction would involve mainly federal funds.
Senator Taylor asked for examples of the entities that would
provide the matching funds.
Ms. Walker stated that, in addition to the $1.6 million in federal
funds, a $500,000 local match, including money from the
Conservation Fund, would be required. She stated that the
Department of Fish and Game has been working with the Conservation
Fund on this issue.
Senator Taylor asked for further information regarding the
Conservation Fund organization.
Co-Chair Wilken noted that he could provide information [copy not
provided] regarding the Conservation Fund and the Southwest Alaska
Coalition to Committee members.
Senator Stevens asked the current titleholder of the land in
question.
Senator Hoffman responded that the land is private property and he
assumed that it belonged to a Native corporation.
Senator Hoffman removed his motion to adopt Amendment #16 in order
to obtain further information to present to the Committee.
There being no objection, the motion to adopt Amendment #16 was
WITHDRAWN.
Co-Chair Wilken stated that the information regarding the
Conservation Fund and the Southwest Alaska Coalition would be
provided to Members.
Co-Chair Wilken ordered the bill HELD in Committee.
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