Legislature(2013 - 2014)
04/09/2014 03:10 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB119 | |
| SB218 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 119
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds."
3:11:54 PM
Co-Chair Kelly MOVED to ADOPT the proposed committee
substitute for CSSB 119 (FIN), Work Draft 28-GS2672\Y
(Martin, 4/9/14). There being NO OBJECTION, it was so
ordered.
3:12:31 PM
AT EASE
3:15:26 PM
RECONVENED
Co-Chair Meyer queried the changes in the committee
substitute.
SUZANNE ARMSTRONG, STAFF, SENATOR KEVIN MEYER, spoke to two
reports prepared by the Legislative Finance Division (LFD)
titled, "Multi-year Agency Summary" and "Multi-year Agency
Summary - Capital Budget" (copies on file). She looked at
the first column was the FY 15 capital column, which
totaled $2,094.229 million. The unrestricted general funds
(UGF) totaled $545.816 million. The designated general
funds (DGF) totaled $182.550 million. The other state funds
totaled $266.517 million. The federal receipts totaled
$1,099.344 million. The second column was the FY 14 capital
supplemental column, which totaled $7.31 million. It was
approximately $2 million more than the bill that was
considered on the previous Monday, because of a
supplemental amendment that was presented by the Office of
Management and Budget (OMB). The third column was the FY 14
operating supplemental column, which totaled $45 million,
of which UGF was $41 million; DGF totaled $126,000; and
other state funds were $3.9 million. The largest difference
in the bill occurred in the University of Alaska (UA) FY 15
capital budget. She looked at page 59 of the bill, which
was the heat and power plant at the University of Alaska
Fairbanks (UAF). On page 59, lines 21 through 25 contained
the appropriation which totaled $195 million, of which
$37.5 million was DGF from the Alaska Capital Income Fund.
The other fund columns noted $157.5 million, which were
bond proceeds that were under consideration in a separate
bill. She noted some intent language that stipulated that
it was the intent of the legislature that UA implement a
utility surcharge, or increase tuition, in an amount not to
exceed annual revenue of $2 million. This funding and the
fuel savings resulting from the construction of the new
plant shall be used to offset university revenue bond debt
service for the UAH heat and power plant.
Co-Chair Meyer remarked that the funding for the
engineering building was $5 million from the governor's
office request and $5 million for receipt authority. He
stated that it was his original goal to fully fund the
engineering building, but Co-Chair Kelly felt that there
needed to be adequate power and heat for the new building.
Vice-Chair Fairclough wondered if the State Library and
Archives Museum (SLAM) was funded in its entirety. Co-Chair
Meyer replied that SLAM was fully funded.
Co-Chair Kelly remarked that the maintenance money was
moved from UAF and some capital requests. He stressed that
the funding for the new facility was originally intended
for UAF deferred maintenance. Co-Chair Meyer stated that
$195 million was not the total cost for the new facility,
and additional costs would be in front of the legislature.
3:21:49 PM
Co-Chair Kelly stated that there were many different funds
shifted in order to obtain the new facility. Co-Chair Meyer
felt that Fairbanks was incurring a great sacrifice in
order to make the project seem viable from his perspective.
Ms. Armstrong spoke to Section 41, on page 109 of the bill,
lines 13 through 18, there was a $50 million
reappropriation to UA for design and construction for the
UAF combined heat and power plant. The total funding
proposed for the project in the current version of the
legislation was $245 million.
Co-Chair Meyer noted the transfer of $50,000 in the SETS
fund. Ms. Armstrong clarified that it was a transfer of $50
million.
Co-Chair Meyer asked if there were any other changes that
should be presented. Ms. Armstrong indicated in the
negative.
Vice-Chair Fairclough asked that the community revenue
sharing aspect be put on the record. She noted that there
were a great number of public testimonies that stressed the
importance of community revenue sharing. Ms. Armstrong
stated there was nothing in the legislation that pertained
to community revenue sharing. The community revenue sharing
was funded through the operating budget. She remarked that
the legislation could be viewed as a type of revenue
sharing, because of the local investments in the bill.
Co-Chair Kelly commented on the operating budget would
contain $3 million for revenue sharing.
Vice-Chair Fairclough noted that he mayor of Fairbanks was
in the audience.
Co-Chair Meyer remarked that the UAF power plant was the
largest change in the budget. He noted that the Loussac
Library was now at the original funding request of $10
million. He wondered if there were any other changes in the
committee substitute. Ms. Armstrong shared that the grant
to the Alaska Railroad for Positive Train Control was
restored to the governor's original request of $15 million.
Co-Chair Kelly queried the total request for positive train
control. Ms. Armstrong replied that the request was $15
million.
3:28:01 PM
Senator Hoffman MOVED to ADOPT AMENDMENT 1 (copy on file):
Funding Source
Amount Federal Receipts: $18,900,000
GF/Match: $2,100,000
Project Description:
This project will construct the third and final phase
of the road connecting the City of King Cove with the
City of Cold Bay and its all-weather airport. The
project will construct a 17.2 mile single lane gravel
road with turnouts. This project contributes to the
Department's Mission by reducing injuries, fatalities
and property damage and by improving the mobility of
people and goods. Funding is dependent on receipt of
funds from the Federal government.
The Aleutians East Borough owns and maintains the road
up to the National Park boundary. The state will own
the road within the National Park boundaries, but the
Aleutians East Borough agrees to maintain the road
within the National Park boundaries.
Co-Chair Meyer OBJECTED for discussion.
Senator Hoffman stated that the amendment pertained to
safety and access in the community of King Cove. He stated
that the project was in its final phase, and there were
attempts to get federal funding for access to its airport.
Co-Chair Meyer surmised that the state would match with
$2.1 million, if the state received the federal receipts
for $18.9 million. Senator Hoffman replied in the
affirmative, and furthered that the road could not be
constructed until the federal funds were appropriated and
the decision was reversed by the Secretary of the Interior.
Vice-Chair Fairclough wondered if there was funding for the
road in any other form. Senator Hoffman responded that he
was not aware of any other funding for the project.
Vice-Chair Fairclough looked at page 39, line 14, which was
a $100,000 appropriation. She wondered if there were any
existing allocations for development. She remarked that she
was in support of the road, but was merely wondering if
there were existing funds. Co-Chair Meyer deferred to the
Department of Transportation and Public Facilities
(DOT/PF).
Vice-Chair Fairclough restated her question.
JEFF OTTESEN, DIRECTOR, DIVISION OF PROGRAM DEVELOPMENT,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated
that the $100,000 for permitting. He stressed that it was
considerate separate funds for a separate purpose.
Vice-Chair Fairclough wondered if there were any
construction funds. Mr. Otteson agreed to provide that
information. He remarked that there was a substantial
amount of work that was done on the airport.
Vice-Chair Fairclough surmised that the amendment would
meet current projections for construction, and there were
no other appropriations for construction. Mr. Otteson
responded that the budget requests were drafted after
extensive examination of possible previous appropriations.
Co-Chair Meyer wondered if DOT/PF supported the amendment.
Mr. Otteson responded that he was very supportive of the
amendment. He shared that he had worked on the project for
his entire career at DOT/PF.
Co-Chair Meyer REMOVED his objection. There being NO
further OBJECTION, AMENDMENT 1 was adopted.
3:34:57 PM
AT EASE
3:37:46 PM
RECONVENED
Co-Chair Meyer noted that each member of the committee
would like to be added as sponsors to AMENDMENT 1.
Ms. Armstrong sated that LFD prepared a report that
compared the prior year's budget with the current budget.
She stated that the Senate Finance Committee had
established criteria that determined to reduce UGF spending
in both the capital and operating budgets. The report
showed a reduction of $439.301 million in UGF in comparison
to the previous year's capital budget. The report also
showed an additional $44.5 million reduction in DGF. She
stated that the reduction in UGF was an effort to preserve
the reserve accounts that were available to the
legislature.
Co-Chair Meyer wondered if the bonding proceeds were the
reason that the current version of the bill was higher than
the house version of the bill. Ms. Armstrong responded in
the affirmative. She furthered that the total reduction,
comparing 2013 to 2014, it only showed a $184 million
reduction. The bond proceeds related to the addition of the
heat and power plant at UAF.
3:41:30 PM
AT EASE
3:42:52 PM
RECONVENED
3:43:09 PM
Vice-Chair Fairclough moved Amendment 2:
page 21, line 27
after the word "and" insert the word "or."
There being NO OBJECTION it was so ordered.
Co-Chair Kelly MOVED to REPORT CSSB 119(FIN) out of
committee with individual recommendations, and drafting
instructions for Legislative Legal Services and the
Legislative Finance Division to make any necessary or
conforming changes to the bill.
CSSB 119(FIN) was REPORTED out of committee with a "do
pass" recommendation.
3:45:56 PM
AT EASE
3:51:24 PM
RECONVENED
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