Legislature(2005 - 2006)HOUSE FINANCE 519

05/08/2006 01:45 PM House FINANCE


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02:11:25 PM Start
02:14:15 PM SB231
02:38:32 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
--Continued from 08:30 AM Meeting Today--
= SB 231 BUDGET: CAPITAL & OTHER APPROPRIATIONS
Moved HCS CSSB 231(FIN) Out of Committee
Bills Previously Heard/Scheduled
CS FOR SENATE BILL NO. 231(FIN) am                                                                                            
                                                                                                                                
     An   Act  making   appropriations,   including   capital                                                                   
     appropriations,       supplemental       appropriations,                                                                   
     reappropriations,   and  appropriations   to  capitalize                                                                   
     funds; 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.                                                                                                         
                                                                                                                                
Co-Chair  Chenault MOVED  to ADOPT  work draft  #24-GS2034\C,                                                                   
Kurtz/Kane,  5/08/06.    There  being NO  OBJECTION,  it  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
PETE ECKLUND,  STAFF, REPRESENTATIVE  KEVIN MEYER,  explained                                                                   
the  changes  incorporated  into  the  committee  substitute.                                                                   
There  were  a  number of  items  redirected  by  legislators                                                                   
within their  districts; as  well as  cleanup in grants,  and                                                                   
state  funds that  were  not  appropriated in  the  operating                                                                   
budget,   which    slightly   lowered   the    general   fund                                                                   
appropriation.                                                                                                                  
                                                                                                                                
2:14:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  MOVED to  ADOPT  Amendments  5 and  5a.  Mr.                                                                   
Ecklund explained  that Amendment  5 would: change  the grant                                                                   
recipient from  the City of  Dillingham to the  Department of                                                                   
Transportation   and  Public   Facilities;  remove   "tobacco                                                                   
cessation" from  a project title;  delete "Hatcher  Pass" and                                                                   
insert "Fish  Hook"; move  funding from  a project  in Thorne                                                                   
Bay  to  Coffman  Cove; move  funds  between  Metlakatla  and                                                                   
Gustavus; and delete the requirement  to run municipal grants                                                                   
through  the capital  Matching  Grant Program.  He  explained                                                                   
that the deletion would speed grants.                                                                                           
                                                                                                                                
Mr.  Ecklund  explained  that  Amendment 5A  would  shift  an                                                                   
appropriation from the City of Shishmaref to Kawarek, Inc.                                                                      
                                                                                                                                
There being NO OBJECTION, Amendments 5 and 5A were adopted.                                                                     
                                                                                                                                
2:18:14 PM                                                                                                                    
                                                                                                                                
Representative  Joule  MOVED to  ADOPT Amendment  #1(a):  add                                                                   
$1,759,000 to unincorporated communities.                                                                                       
                                                                                                                                
Co-Chair Meyer OBJECTED                                                                                                         
                                                                                                                                
Representative  Joule explained that  the amendment  would be                                                                   
in  addition  to  funding  in  the  Department  of  Commerce,                                                                   
Community  and Economic  Development  for municipalities  and                                                                   
boroughs.   There   are   approximately   70   unincorporated                                                                   
communities, which  would receive approximately  $25 thousand                                                                   
each, with the adoption of the  amendment. He maintained that                                                                   
the funding  would help  protect the  state's investments  in                                                                   
these communities in terms of maintaining infrastructure.                                                                       
                                                                                                                                
Vice-Chair   Meyer   spoke   against    the   amendment.   He                                                                   
acknowledged   the  need,  but   emphasized  his   intent  to                                                                   
encourage communities to incorporate.  He observed that there                                                                   
is no government  to government relationship  for transfer of                                                                   
funding.                                                                                                                        
                                                                                                                                
2:20:59 PM                                                                                                                    
                                                                                                                                
Representative    Joule    observed    that    unincorporated                                                                   
communities  received  state   funding  under  the  Community                                                                   
Assistance and  Safe Communities  programs. He did  not think                                                                   
that it would be difficult to distribute the funds.                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Kerttula, Moses                                                                                                
OPPOSED:  Weyhrauch,  Foster, Hawker,  Holm, Kelly,  Stoltze,                                                                   
          Meyer, Chenault                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
2:22:33 PM                                                                                                                    
                                                                                                                                
Representative  Holm  MOVED  to ADOPT  Amendment  #2(a):  add                                                                   
$500,000 General Fund for the University of Alaska Museum.                                                                      
                                                                                                                                
Co-Chair Chenault OBJECTED for the purpose of discussion.                                                                       
                                                                                                                                
Representative  Holm spoke  in support  of the amendment  and                                                                   
stressed the  value of the  museum in presenting  the history                                                                   
of Alaska.  He observed that  the museum needs  approximately                                                                   
$4 million.                                                                                                                     
                                                                                                                                
Co-Chair Meyer spoke in support of the amendment.                                                                               
                                                                                                                                
Representative  Kelly  spoke  in  support.  He  noted  public                                                                   
support and emphasized its statewide benefit.                                                                                   
                                                                                                                                
In response to a question by Representative  Hawker, Co-Chair                                                                   
Meyer observed  that the tobacco  bond contained  $89 million                                                                   
for the  University. Mr.  Ecklund noted  there was  over $100                                                                   
million in the capital budget for the University.                                                                               
                                                                                                                                
2:26:04 PM                                                                                                                    
                                                                                                                                
In response to  a question by Co-Chair  Meyer, Representative                                                                   
Holm noted  that only  30 percent  of the museum's  operating                                                                   
costs come from the University.                                                                                                 
                                                                                                                                
There being NO OBJECTION, Amendment 2 was adopted.                                                                              
                                                                                                                                
2:27:22 PM                                                                                                                    
                                                                                                                                
SARAH  GILBERTSON, LEGISLATIVE  LIAISON,  DEPARTMENT OF  FISH                                                                   
AND GAME, responded  to questions by Representative  Stoltze.                                                                   
She noted that the department  is supportive of the increment                                                                   
requested by the Cook Inlet Aquaculture  Fishing Association,                                                                   
but  not  at  the cost  of  other  department  projects.  The                                                                   
Department will  work closely  with the Association.  Current                                                                   
funding  will  complement  projects relating  to  Matsu  fish                                                                   
runs. The  Association will be  implementing fish  weirs that                                                                   
will  help the  Department with  recapture project(s).  There                                                                   
would not be competing science.                                                                                                 
                                                                                                                                
2:29:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  spoke in support of the  project and noted                                                                   
that there  have been concerns  regarding the salmon  runs in                                                                   
the Matanuska Susitna  drainage area and how  to best address                                                                   
the problem.                                                                                                                    
                                                                                                                                
2:30:40 PM                                                                                                                    
                                                                                                                                
Representative  Moses  MOVED  to  ADOPT  Amendment  #3,  #24-                                                                   
LS8009\A.97, Kane,  5/02/06: add  $6 million dollars  to King                                                                   
Cove and Cold Bay, road and hovercraft.                                                                                         
                                                                                                                                
JOHN    MACKINNON,    DEPUTY    DIRECTOR,    DEPARTMENT    OF                                                                   
TRANSPORTATION   AND   PUBLIC   FACILITIES,   explained   the                                                                   
amendment represents  an allocation  of federal funds,  which                                                                   
would be expanded. The funds are already in the budget.                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
2:32:42 PM                                                                                                                    
                                                                                                                                
Representative Joule  MOVED to ADOPT Amendment  #4, Grants to                                                                   
Municipalities (AS37.05.315),  add Northwest Arctic Borough -                                                                   
Northwest Arctic Borough School  District for maintenance and                                                                   
equipment in the amount of $300,000 general fund dollars.                                                                       
                                                                                                                                
Co-Chair Meyer observed that it would be a new item.                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
2:34:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer MOVED  to ADOPT  Amendment 6.  Representative                                                                   
Stoltze  OBJECTED.   Co-Chair  Chenault  observed   that  the                                                                   
amendment would change a project  description in District 35;                                                                   
no monies are  involved. Mr. Ecklund explained  the funds are                                                                   
for fire  department utility extension  for a  senior housing                                                                   
project.  The   title  would   be  changed  to   reflect  the                                                                   
intention.                                                                                                                      
                                                                                                                                
2:35:40 PM                                                                                                                    
                                                                                                                                
Representative  Kelly MOVED  to  ADOPT Amendment  7: page  4,                                                                   
line 27  to insert "American  Lung Association".  There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
2:38:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer   MOVED  to  give  the   Legislative  Finance                                                                   
Division  the  authority  to make  technical  and  conforming                                                                   
changes. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
2:38:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  observed that the legislation  contains money                                                                   
for  municipal   assistance,  three  rural   schools,  roads,                                                                   
harbors, and  docks; and  shares the larges  of the  state of                                                                   
Alaska.                                                                                                                         
                                                                                                                                
Representative Foster MOVED to  report HCS CSSB 305 (FIN) out                                                                   
of Committee. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
HCS CS SB 231 (FIN) was reported  out of Committee with a "do                                                                   
pass" recommendation.                                                                                                           

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