Legislature(2009 - 2010)BELTZ 211
03/12/2009 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB113 | |
| SB94 | |
| SB130 | |
| HCR7 | |
| SB130 | |
| HCR7 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 113 | TELECONFERENCED | |
| *+ | SB 130 | TELECONFERENCED | |
| + | HCR 7 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 94 | TELECONFERENCED | |
SB 130-ECONOMIC STIMULUS TASKFORCE
9:29:00 AM
CHAIR MENARD announced the consideration of SB 130.
SENATOR LESIL MCGUIRE, Alaska State Legislature, said she is the
sponsor of SB 130, which is a tool for analyzing the Federal
Recovery and Reinvestment Act (ARRA) that contains almost $1
trillion to be spread among the states. It is coming to Alaska
very rapidly with some complex rules and deadlines. The first
deadline was March 10. There have been people in this building
hard at work to understand this stimulus package and what
Alaskans can do to respond to its deadlines. The bill is not
aimed at embarrassing anyone or to imply that nothing has been
done. The bill responds to the rapid nature of ARRA without a
logical place for the public to turn to, and it will help
communications between the administration and the legislature.
Larry Persily, in the House, and Steve Porter, in the Senate,
are lead staff working on ARRA. The governor has appointed Karen
Rehfeld as the lead from the Office of Management and Budget.
Alaska has responded to ARRA regarding transportation and
infrastructure. The next deadline is April 3, and it includes
education and Medicaid.
9:32:01 AM
SENATOR MCGUIRE said she was in Washington DC last week and
discussed ARRA. She wants SB 130 to go to the finance committee
where it can be considered with other tools and strategies for
using ARRA. The narrower scope is the third portion of the
stimulus package and pertains to competitive grants. There are
grants with large pots of money to be applied for across the
United States with a myriad of dates and deadlines. There are 33
pots of money for renewable energy, hunger, and more. Alaska's
municipalities and nonprofits are eligible for many of these
grants. The taskforce can oversee the distribution of the
grants. The bill suggests that the taskforce consist of three
members each from the House and Senate, two members from the
administration, and one from the Alaska Municipal League.
9:34:06 AM
SENATOR MCGUIRE said the taskforce could be set up for the
interim as a natural place for people to go for information
exchange. One concern stems from individuals from outside who
announced they had already begun applying for Alaska's portion
of the energy funds to develop algae biomass energy. Savvy
people may be ahead of the curve and in possession of
information that Alaska lacks. A taskforce is not the magic
answer but has gotten a lot of traction from the public. There
is concern about the money from the stimulus package.
9:36:01 AM
CHAIR MENARD asked how many other states have a taskforce.
SENATOR MCGUIRE said many states have, including Ohio, Virginia,
and Maryland. About 30 percent of the states are using the
taskforce model, which are largely organized with members of the
legislatures and the administrations. Some were created by an
assembly or through the governor, and some states include
members of the public. The committee could consider that. This
is not an original idea. The majority of states have some
organized method of responding to ARRA.
9:37:49 AM
CHAIR MENARD said Alaska has money and skilled people. She has
some reservations because she recognizes "the quality of
financial people that we do have, even in this building."
SENATOR FRENCH said he thinks this is a wonderful idea. There is
no clear central entity steering this money and that is
unfortunate. It looks like April 3 is a crucial date. He asked
what the taskforce will do after that date.
9:39:26 AM
SENATOR MCGUIRE said this bill has been referred to two
committees, which made that date null and void for the
taskforce. It can deal with the myriad of deadlines for the
competitive grants that occur in May, June, August, September,
December, and January. At this stage, Larry Persily, Steve
Porter, and the co-chairs of the finance committees will have
the leadership for the April 3 date. This taskforce will begin
right after legislative session on April 19 by gathering
information and distributing it to communities and nonprofits.
That money doesn't come through the state; it comes directly to
the boroughs and nonprofits, which makes it more onerous. The
taskforce will help guide folks who do not have financial savvy
and experience. The legislature will be held accountable in the
end. "If we want to put our hands up and say you folks out there
apply for it and so on, if they miss deadlines, if the money
goes to people from outside who are more savvy or snake oil
salesmen ... we, the elected members of the House and Senate,
are going to be held accountable anyway."
9:42:26 AM
SENATOR FRENCH asked about the existing entities that could do
the work, including Senator Meyer who chairs the joint
Legislative Budget and Audit Committee. "Why wouldn't that be
the perfect interim entity to do this work?
9:43:20 AM
SENATOR MCGUIRE said that could be the place, but there are no
members of the public or the municipal league. She is just
looking for someone to recognize the magnitude of this and take
the reins. If the bill moves to the next committee it will keep
the pressure and momentum for the topic. If Senator Meyer is
designated the czar of Alaska competitive grants, she would be
grateful. He and his committee would be well-suited.
SENATOR PASKVAN asked about the act being repealed in July 2009.
SENATOR MCGUIRE said that needs to be changed.
SENATOR PASKVAN asked if February 1, 2010, would be better.
9:44:56 AM
SENATOR MCGUIRE said that is a good question. The bill was
drafted to set up a framework right away. There are dates that
go through 2012, but the drop-dead date is January 1, 2011. It
could be left until the taskforce finishes its work. She
suggested repealing it in April 2010.
SENATOR PASKVAN said that is appropriate.
SENATOR MEYER said this is a concept that should be considered.
There are a lot of people working on this issue, including
Alaska's congressional senators. Larry Persily has been working
on it more than anyone and at the request of the House Finance
Committee. The Senate has hired Steve Porter. The next key date
is April 3, and it will be up to the administration to request
the funds, and it is uncertain that if the governor doesn't
request them, what role, if any, the legislature plays. Some
people think the legislature has 45 days to request it. He has
found that most of this will require the executive branch to
make the request and apply for the grants. The role of the
legislature is unknown. It may be to just oversee the
administration. Thus far, Karen Rehfeld has been fairly
cooperative. It is still early in the process. Things are
working pretty well, but if things don't continue to work well,
a taskforce should be considered.
9:48:03 AM
SENATOR MCGUIRE said it will just be a tool. A taskforce doesn't
have the weight of the law, but it can help if things don't
progress and if the state needs more coordination. There is a
lot of work being done in discreet parts, but it may not be
getting out to the public. There is no fiscal note.
9:48:56 AM
LARRY PERSILY, Staff to the House Finance Committee, Alaska
State Legislature, said he has been trying to decipher,
translate, and gather information on the economic stimulus bill
for the past several weeks. He has been sending updates to all
legislators and to a growing list of Alaskans who have requested
them. The stimulus requires the governor of each state to
certify whether the state wants the money by April 3. If a
governor does not request funds then the legislature, by
concurrent resolution, can request them for the state. That
April deadline only applies to money going through the state.
There are a lot of grant funds that the state will administer;
"the feds will give money to the state; the state will then
grant them out. Those would be covered by the April 3rd
deadline." There are a lot of grant programs that don't go
through the states. Federal agencies will administer those
directly to nonprofits and other entities. The April deadline
doesn't apply to those. If Alaska didn't want any funds it would
eliminate the money going through the state but not the money
going to nonprofits directly from federal agencies.
9:51:03 AM
SENATOR PASKVAN asked the amount of the funds going to states.
MR. PERSILY said if direct federal spending is subtracted, it is
a little more than $800 million, but some of it is by formula,
like Medicaid, and some is by formula with kickers, like an
increase in unemployment. There are formula grants and
competitive grants. Most of those dollars will go to airports,
transportation, transit, Medicaid, and education. There is very
little discretionary money for the state.
9:52:23 AM
SENATOR PASKVAN asked if this taskforce or some other oversight
entity will be useful.
MR. PERSILY said it would depend on the public demand for
information. He was supposed to be at a meeting in Anchorage for
170 representatives of nonprofits who are trying to find out
what there is to apply for. There is a need for information.
"People got a little hyped up from the news media that the money
was instant, but there's a couple dozen programs that never
existed until three weeks ago when this was signed into law. So
we shouldn't blame federal agencies if they don't have the grant
criteria or the applications." Alaskans want information and
want to apply for the money. Whether it is a taskforce or office
coordinator, the legislature needs to decide what role the state
should have in assisting nonprofits and communities in getting
money. The Department of Transportation and Public Facilities
and Medicaid can take care of themselves, but the question is
for the nonprofits. It won't be tens of millions of dollars
flowing to Alaska, but it will be worth applying for.
9:54:15 AM
CHAIR MENARD asked if Alaska is going to be a good steward of
the stimulus money. "Do you have a high confidence level that
you're doing everything possible with the limited amount of
people that are working on this and the caliber of people that
are working on this?"
MR. PERSILY said that based on his conversations with John Katz,
Karen Rehfeld, the congressional delegation, and agency staff,
he is confident that Alaska is doing a good job of determining
what is there for Alaska, how to spend it wisely, and how to
have a good shot of getting its fair share.
SENATOR MEYER said there are a lot of people working on this
including the legislature, several nonprofits, and a lot of
mayors and municipalities. He is not convinced that a taskforce
will help or hinder. The taskforce may be a central point for
the public, municipalities, legislators, and nonprofits to get
information. Senator Stedman "wants to level it out statewide,
so he needs to know what the municipalities have already gotten
through the economic stimulus program." He doesn't know how Nome
got $125 million for its hospital. That is where a central point
could be helpful. Do you agree that the legislative role is
secondary? The administration is the lead dog, "but I do think
that we can help them and probably should oversee them to make
sure they are being as aggressive as possible." Legislation is
needed. A joint resolution will be needed if the governor
doesn't pursue the certification. What else do you see the
legislature needing to do?
9:57:46 AM
MR. PERSILY said he was told to not give opinions, but it's his
nature. The money for the Indian Health Service hospital in Nome
didn't involve the state. If the governor doesn't want funds,
the legislature needs to decide if it wants them. When money
comes in, the legislature has the power of appropriation for
transit and transportation. There is some discretion in the
fiscal stabilization funds - the 18 percent that doesn't have to
be spent on education but could. That's $20 million subject to
legislative appropriation. Helping nonprofits fits in a category
of public policy. The legislature needs to look at how it wants
to help, whether it is with a taskforce, a coordinating office,
staff assignments, or any other means.
10:00:12 AM
JEREMY WOODROW, Communications Coordinator, Alaska Municipal
League (AML), Juneau, said the AML supports SB 130. Alaska is
expected to receive more than $800 million of the ARRA funds.
Numerous national and state deadlines come with the package. To
make sure that these funds are fully and adequately distributed
across the state will be challenging. AML supports a fair and
equitable distribution that benefits all Alaska regions and
municipalities. The formation of a taskforce is a step in the
right direction in minimizing the effect of the recession in
Alaska. Including municipalities in the process provides insight
and benefit to the taskforce. AML is grateful that SB 130
includes AML as a taskforce member.
10:01:56 AM
SENATOR KOOKESH asked if the AML will cover all of its
transportation costs related to the taskforce.
MR. WOODROW said, yes, AML has participated in many kinds of
taskforces, and the board usually supports the travel costs.
BRENDA HEWITT, President, United Way Southeast Alaska, Juneau,
said her group includes 24 communities and over 30 nonprofit
agencies. She asked all her nonprofits, and they see the
taskforce as a benefit. Some of the larger agencies already
belong to several organizations and they are analyzing the bill
from their perspective. The national organizations are already
dissecting the bill. Some smaller groups don't have that
benefit. "Right here in Juneau we know that there's $990,000
that are sitting on the table unapplied for -- earned income tax
credits. We've never been able to get the information out or we
haven't gotten people who are below that poverty line to apply
for their income tax rebates." The group wasn't coordinated
enough to apply for the neighborhood stabilization grant money.
There is money that sits on the table that could be spent and
put into our economy and used for projects that we know we need.
A taskforce or some other entity would be a coordinated effort.
Karen Rehfeld has a lot on her plate, and if a nonprofit calls
her to ask how to interpret this 1,000-page bill, it will be
overwhelming. "I would encourage you to come forth with some
avenue that nonprofits can approach."
10:05:17 AM
The committee took a brief at-ease.
10:06:28 AM
SENATOR PASKVAN moved to adopt Amendment 1 to change the date in
section 2 to April 1, 2010. This date will allow the legislature
to extend the taskforce if need be.
SENATOR FRENCH said the taskforce issues its final report on
July 1, 2009.
SENATOR MEYER objected to Amendment 1 for discussion purposes.
10:07:44 AM
SENATOR PASKVAN said the bill has a final report, but there will
be additional activities that will need to be monitored. There
would be time for legislators to get more information.
SENATOR MCGUIRE recommended calling for a preliminary report on
July 1, 2009, and a final report in April 2010. The preliminary
report would provide the structure and goals of the taskforce
and inform the public of its role. The final report would be
issued when the taskforce ends.
10:09:42 AM
SENATOR FRENCH suggested moving Amendment 1.
SENATOR MEYER removed his objection. Hearing no further
objection, Amendment 1 was adopted.
SENATOR FRENCH moved Amendment 2 as follows: page 2, line 16,
delete "final" and insert "initial". He will suggest a further
amendment.
10:11:05 AM
SENATOR MEYER objected for the purpose of discussion.
SENATOR KOOKESH said in order to vote on this, he wants to know
what Senator French's next amendment will be.
SENATOR FRENCH said his next motion will be to add a final
report in April 2010.
SENATOR MEYER removed his objection. Hearing no further
objection, Amendment 2 was adopted.
SENATOR FRENCH moved Amendment 3 as follows: On page 2, line 16,
add subsection (g) as follows: "the taskforce shall submit a
final report to the legislature before April 1, 2010."
SENATOR MEYER objected for the purpose of discussion.
10:12:17 AM
SENATOR PASKVAN said he assumes that the legislature could
extend the taskforce if it needed more time.
SENATOR FRENCH said right now the taskforce goes away July 1,
2010, and if the body saw fit to extend it, it could.
SENATOR MEYER removed his objection. Hearing no further
objection, Amendment 3 was adopted.
10:13:42 AM
SENATOR FRENCH said the bill is back for discussion. These were
minor changes. It needs to be hashed out in finance committee.
SENATOR MEYER moved to report SB 130, as amended, from committee
with individual recommendations and attached fiscal note(s).
There being no objection, CSSB 130(STA) moved from committee.
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