Legislature(2017 - 2018)SENATE FINANCE 532
04/03/2018 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB198 | |
| HB76 | |
| HB128 | |
| SB142 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 286 | TELECONFERENCED | |
| += | SB 142 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 76 | TELECONFERENCED | |
| += | HB 128 | TELECONFERENCED | |
| += | SB 198 | TELECONFERENCED | |
SENATE BILL NO. 142
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
3:06:44 PM
PAT PITNEY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, discussed the presentation, "State
of Alaska FY2019 Capital Budget and Economic Recovery Act
Overview" (copy on file). She addressed slide 2, "FY2019
Capital Budget":
Two Separate Capital Appropriation Bills
?Base Capital Budget (SB142/HB284)-
?Lean compared to previous years
?Provides for leverage of available federal
funds and certain DGF supported energy
projects
?Certain technology efficiencies
?Alaska Economic Recovery Act (SB140/HB282)-
?Supported by a payroll tax
?Shovel ready/deferred maintenance projects
designed to get work started today
?Many smaller projects directed to
communities throughout the state (urban and
rural)
Ms. Pitney looked at slide 3, "Capital Budget Trend":
?The capital budget has been reduced 93 percent or
$1.8 billion from FY2013 to FY2018.
?Important needs such a deferred maintenance have been
unaddressed
?Less support to communities
?Impacting employment
3:10:12 PM
Ms. Pitney highlighted slide 4, "Base Capital Budget
(SB142/HB284)":
Base Capital Budget
The Governor's FY2019 capital budget prioritizes
annual federal match programs, housing, energy,
maintenance, and information technology.
Vice-Chair Bishop wanted a later conversation about
redirection of the money.
Ms. Pitney addressed slide 5, "Base Capital Budget":
?Federal Match
?Transportation Match -$70.1 million leverages
$700.0 million in federal
?Village Safe Water and Sewer Projects -$12.1
million leverages $52.3 million federal
?Housing
?Status quo housing project appropriations
including teacher, health professional and
trooper housing, cold climate research and grants
through HUD
?Energy
?Renewable Energy Projects $11.0 million
?Rural Power Systems Upgrades -$11.0 million
?Maintenance
?AMHS Vessel Certification -$13.5 million
?Public Building Fund Deferred Maintenance -$5.0
million
?Information Technology
?Various state-wide software upgrades, continued
IRIS implementation, Automated Park fee
collections
?High Priority Investments
?Enhanced "9-1-1" -$8.5 million
?AKLNG legal and financial due diligence -$1.5
million
3:16:12 PM
Ms. Pitney discussed slide 6, "Alaska Economic Recovery Act
(SB140/HB282)":
Alaska Economic Recovery Act
?$800.0 million over 3 years ($280.0 million in
FY2019)
?$1.4 billion in economic impact with federal, local,
and private funds
?Housing, state and school deferred maintenance, and
energy projects
?Many smaller projects to ensure work is started
today, not after years of environmental studies
?School maintenance impacts 60+ communities, both
rural and urban
?Does not grow government, takes care of current
liabilities
?Funded by a 1.5 percent wage tax, capped at 2 times
the PFD amount
?Receipts designated for high-value capital projects
?Sunsets in 2.5 years
?Creating jobs and getting the economy working is the
number one priority. Reassess in 2022
Ms. Pitney highlighted slide 7, "Construction Industry
Employment":
?According to ISER, $100.0 million in reductions to
the capital budget results in 506 direct and 425
indirect job losses. (Recall that that $1.8 billion
has been cut from FY2013)
?Ensuring that Alaska has a trained construction
workforce will ensure future development opportunities
employ as many Alaskans as possible (additional North
Slope exploration, AKLNG, etc.)
?Employment figures have a direct link to spending
elsewhere in the budget (Public Assistance, Medicaid,
etc.)
?For each percentage point of job loss, the
traditional Medicaid population grows at an annualized
rate of 4.04 percent
Ms. Pitney addressed slide 8, "Deferred Maintenance":
?The state owns over 2,200 facilities though only
about 200 over 10,000 square feet.
?19 million square feet of space
?Replacement value of $8.6 B
?Various types of facilities
?Classrooms
?Airport/maintenance shops
?Offices
?Laboratories
?Parks
?Pioneer Homes
?Correctional Facilities
?Road maintenance
Ms. Pitney looked at slide 9, "Deferred Maintenance":
?DM appropriations of $100.0 M annually for 5 years
(FY11-15) has brought the back-log down
?Lean funding since FY2015 is causing the backlog to
grow again
?Without a consistent level of funding, entities
cannot effectively execute planned renewal
?Current level of funding only prioritizes life/safety
concerns
?Failure of building systems is much more costly than
addressing the problem early through deferred
maintenance
3:20:33 PM
Ms. Pitney highlighted slide 10, "Alaska Economic Recovery
Multi-Year Plan." She noted that the projects began with
the K-12 Major Maintenance Grant program. She noted that AS
14.10 had schools send in their highest deferred
maintenance projects, with a required local match in most
cases. She stated that there was a prioritized list
throughout the state.
Ms. Pitney looked at slide 11, "K-12 Major Maintenance
Grant Fund":
?Projects ranked according to AS 14.10
?Participating share ranges from 5 percent to 35
percent based upon taxable property over Average Daily
Membership
?Both municipal School Districts and REAAs
Ms. Pitney discussed slide 12, "University Deferred
Maintenance." She highlighted the deferred maintenance of
the University of Alaska campuses.
Ms. Pitney addressed slide 13, "State Deferred
Maintenance." She stated that the size of the projects
directed the money to local contractors.
Ms. Pitney looked at slide 14, "Other Items":
Alaska Economic Recovery Act
?Municipal Harbor Projects
?Sitka: Crescent Harbor
?Whittier: Small Boat Harbor
?Sitka: Eliason Harbor
?Ketchikan: Bar Harbor North Harbor
?Bulk Fuel Upgrades
?Statewide Impact
?Weatherization
?State-wide impact
?Senior Citizen Housing Development
?Anchorage Port
?Required Municipal Match
?Anchorage: South Float
?Whale Pass: Small Boat Harbor
?Juneau: Douglas Harbor
?Juneau: Harris Harbor
3:25:20 PM
Co-Chair MacKinnon stated that the seismic would be
discussed at a later meeting.
Co-Chair MacKinnon discussed committee business.
SB 142 was HEARD and HELD in committee for further
consideration.