Legislature(2001 - 2002)

05/02/2002 04:21 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 528                                                                                                            
                                                                                                                                
     "An Act relating to programs of state reimbursement for                                                                    
     debt payments for certain capital projects; and                                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair  Mulder  provided members  with  proposed  committee                                                                   
substitute,  work draft  22-LS1742\P, dated  5/2/02 (copy  on                                                                   
file).                                                                                                                          
                                                                                                                                
Co-Chair  Williams MOVED  to  ADOPT work  draft  22-LS1742\P,                                                                   
dated 5/2/02. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
Co-Chair Mulder explained that  funding for the Juneau museum                                                                   
project was  not included because preliminary  planning (land                                                                   
purchase and design) cannot be bonded.                                                                                          
                                                                                                                                
Representative Hudson  noted that the Juneau  Joint Readiness                                                                   
Center project  had not been  included in any  legislation to                                                                   
date. The  project would involve  the Department  of Military                                                                   
and   Veterans  Affairs   and  the   University  of   Alaska,                                                                   
Southeast. He  emphasized the  importance of the  project and                                                                   
noted that  the Armory  needs to  be relocated. Some  federal                                                                   
funds  have been  appropriated,  but the  project needs  $5.4                                                                   
million   dollars.  This   is  the   number  one   long-range                                                                   
construction  priority of  the  Army National  Guard and  the                                                                   
University  of Alaska, Southeast.  Co-Chair Mulder  expressed                                                                   
sympathy for  the project, but  emphasized the need  to "hold                                                                   
the lid on the bond package".                                                                                                   
                                                                                                                                
Co-Chair  Mulder  explained  that the  Metlakatla  light  and                                                                   
power  project  was  included   in  order  to  protect  their                                                                   
solvency. If  the project were  to go into receivership  they                                                                   
would  not be  eligible  for  other federal  assistance.  The                                                                   
appropriation would  not cover the full cost  of the project,                                                                   
but  it  would  provide  enough   assistance  to  meet  their                                                                   
obligation.  The  university indicated  that  the  university                                                                   
center could  be done through the reimbursement  methodology,                                                                   
which reduced the need on the capital budget.                                                                                   
                                                                                                                                
Representative  Davies  noted  that  the  $2  million  dollar                                                                   
project for the  Fairbanks campus needs to  occur this summer                                                                   
and asked  if it were  possible to place  the project  in the                                                                   
regular  capital budget  in order  to  meet the  construction                                                                   
schedule.  Co-Chair  Mulder  indicated   that  he  would  not                                                                   
object,  but emphasized  his concern with  moving items  from                                                                   
the deferred maintenance bond legislation.                                                                                      
                                                                                                                                
Representative  Carl  Moses MOVED  to  ADOPT AMEND:  page  4,                                                                   
line 21:  delete "Lake and  Peninsula" and insert  "Aleutians                                                                   
East". There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
Representative  Hudson reiterated his  desire to  see funding                                                                   
for the Juneau Readiness Center.                                                                                                
                                                                                                                                
WENDY REDMAN, VICE PRESIDENT,  STATEWIDE PROGRAMS, UNIVERSITY                                                                   
OF ALASKA  explained that  the university's bonding  capacity                                                                   
would  be used  to secure  funding for  the Juneau  Readiness                                                                   
Center. The  debt service  would be paid  by the  state under                                                                   
the debt  service account.  She felt  that the project  would                                                                   
fit  under  the  educational   requirements  for  bonding  or                                                                   
borrowing  capacity.  She  expressed some  concern  that  the                                                                   
University's bonding capacity  is limited to projects that do                                                                   
not exceed a  million dollars in debt service.  She felt that                                                                   
an adjustment  would needed in  statutory language  to adjust                                                                   
the limit.                                                                                                                      
                                                                                                                                
Representative Hudson  MOVED to ADOPT $5,470  million dollars                                                                   
for the  Juneau Readiness Center.  There being  NO OBJECTION,                                                                   
it was so ordered.                                                                                                              
                                                                                                                                
Representative  John Davies  MOVED to  report CSHB 528  (FIN)                                                                   
out of  Committee with  the accompanying  fiscal note.  There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
CSHB  528 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation.                                                                                                           

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