Legislature(2011 - 2012)HOUSE FINANCE 519

05/12/2011 04:30 PM House FINANCE


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04:37:15 PM Start
04:38:02 PM SB46
04:51:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 107 BUDGET: CAPITAL TELECONFERENCED
= SB 46 BUDGET: CAPITAL
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       May 12, 2011                                                                                             
                         4:37 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
4:37:15 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the House Finance Committee meeting                                                                     
to order at 4:37 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Mark Neuman                                                                                                      
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong,  Staff, Representative Bill  Stoltze; Karen                                                                    
Rehfeld,  Office of  Management  and Budget,  Office of  the                                                                    
Governor;  Representative   Alan  Austerman;  Representative                                                                    
Mike  Chenault;  Representative Kurt  Olson;  Representative                                                                    
Steve Thompson.                                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 46(FIN)                                                                                                                    
          BUDGET: CAPITAL                                                                                                       
                                                                                                                                
          CSSB 46(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
CS FOR SENATE BILL NO. 46(FIN)                                                                                                  
                                                                                                                                
"An  Act  making   and  amending  appropriations,  including                                                                    
capital  appropriations, savings  deposits  in  the form  of                                                                    
appropriations  to the  statutory budget  reserve fund,  and                                                                    
other  appropriations; making  appropriations to  capitalize                                                                    
funds; and providing for an effective date."                                                                                    
                                                                                                                                
4:38:02 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  MOVED to  ADOPT HCS for  CSSB 46(FIN)                                                                    
(27-GS1740\Y, Kurtz, 5/12/11).                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
4:39:04 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
4:40:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
4:41:00 PM                                                                                                                    
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   STOLTZE,                                                                    
highlighted  the  changes  in   the  HCS.  The  new  version                                                                    
included   title  changes,   project   scope  changes,   and                                                                    
technical changes  including effective  dates in  Section 1.                                                                    
The  HCS  maintained  the  Senate  structure  in  Section  4                                                                    
related  to  energy projects  (pages  126  through 138)  and                                                                    
removed $50 million of Alaska  capital income funding for an                                                                    
increase   to  the   Alaska   Housing  Finance   Corporation                                                                    
weatherization program.                                                                                                         
                                                                                                                                
Co-Chair  Stoltze communicated  that an  amendment had  been                                                                    
drafted to replace the $50 million with general funds.                                                                          
                                                                                                                                
Mr. Armstrong relayed  that the HCS fully  funded the Alaska                                                                    
Gas Pipeline  Development Corporation at $21  million for FY                                                                    
12,  which had  not  been included  in  the Senate  version.                                                                    
Section  7  amended cruise  ship  funding  for one  project.                                                                    
There  were  no changes  to  education  related projects  in                                                                    
Section 10. He directed attention  to pages 153 through 155,                                                                    
which related  to the  supplemental capital  budget. Funding                                                                    
in the amount  of $44 million was included from  FY 11 funds                                                                    
for the Tanana River Bridge.                                                                                                    
                                                                                                                                
Mr.  Armstrong  addressed  funding  for  the  Department  of                                                                    
Corrections (DOC) in Section 25,  page 161, lines 24 through                                                                    
26.                                                                                                                             
                                                                                                                                
Co-Chair Stoltze detailed that  DOC operating budget funding                                                                    
had  been   included  to  allow  the   prison  [Goose  Creek                                                                    
Correctional Center] to move forward.                                                                                           
                                                                                                                                
4:44:04 PM                                                                                                                    
                                                                                                                                
Representative Doogan  wondered how the money  allocated for                                                                    
DOC would  be utilized. He  asked whether the  funding would                                                                    
allow the prison to begin operating.                                                                                            
                                                                                                                                
Co-Chair Stoltze  replied that the funding  would allow work                                                                    
on the prison to continue forward.                                                                                              
                                                                                                                                
KAREN REHFELD,  OFFICE OF MANAGEMENT  AND BUDGET,  OFFICE OF                                                                    
THE GOVERNOR,  explained that the  change would  restore DOC                                                                    
FY  12 funding  to the  original amount.  The administration                                                                    
planned  to  bring in  a  small  group of  minimum  security                                                                    
prisoners  and staff  during the  last three  months of  the                                                                    
fiscal  year  in order  to  conduct  testing throughout  the                                                                    
facility;  funds  allocated   in  the  conference  committee                                                                    
process  had not  sufficiently met  the required  needs. The                                                                    
funds would help  ensure that the facility could  open in FY                                                                    
13.                                                                                                                             
                                                                                                                                
Co-Chair Stoltze added that the  budget reflected the amount                                                                    
that had  been supported by  the committee and the  House in                                                                    
the operating budget.                                                                                                           
                                                                                                                                
Representative  Neuman  recognized  the  importance  of  the                                                                    
project  and the  350  jobs  that would  be  created by  the                                                                    
prison.  The  funding helped  to  complete  the project  and                                                                    
ensured  that DOC  would not  have  to request  supplemental                                                                    
money the following year. He  believed that it was important                                                                    
for the prison  to move forward on its soft  opening to make                                                                    
certain that warrantees were up  and running and covered for                                                                    
the following year.                                                                                                             
                                                                                                                                
4:46:31 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong  directed attention page 163,  lines 4 through                                                                    
18.  The bill  retained  Senate language  that allocated  $8                                                                    
million for the Low Income Home Energy Assistance Program.                                                                      
                                                                                                                                
Co-Chair  Stoltze  remarked that  the  $8  million had  been                                                                    
added to the bill version adopted by the Senate.                                                                                
                                                                                                                                
Mr. Armstrong highlighted that language  in Section 31, page                                                                    
164, lines 15 through 18  restored the governor's request of                                                                    
$4  million for  the  Alaska Aerospace  Corporation's FY  12                                                                    
operations.  Page  166, lines  21  through  29, reflected  a                                                                    
request by  the governor's office  that allowed it  to carry                                                                    
forward  previous appropriations  for FY  12 operations.  He                                                                    
expounded that  prior to FY  09 it had been  common practice                                                                    
for   the  governor's   office   to   carry  forward   prior                                                                    
appropriations.                                                                                                                 
                                                                                                                                
Co-Chair Stoltze commented that  the legislature conducted a                                                                    
similar process on an annual basis.                                                                                             
                                                                                                                                
Mr.  Armstrong addressed  a new  legislative reappropriation                                                                    
on   page   179,   lines  8   through   15.   The   language                                                                    
reappropriated  $500,000 of  previous  legislative funds  to                                                                    
the Municipality of Anchorage  for the Point Mackenzie shoal                                                                    
study project, which  was a top priority  of Anchorage Mayor                                                                    
Dan Sullivan.                                                                                                                   
                                                                                                                                
Co-Chair Stoltze  shared that the  funds had  been requested                                                                    
by  the mayor.  There was  $500,000 for  the Mat-Su  Borough                                                                    
that would be  matched by $1 million from the  Army Corps of                                                                    
Engineers;  the issue  was important  for navigation  at the                                                                    
largest port and the emerging industrial port.                                                                                  
                                                                                                                                
Mr. Armstrong looked  at page 179, lines 16  through 19. The                                                                    
section  appropriated $50  million in  FY 11  funds and  $50                                                                    
million in FY  12 funds to the Statutory  Budget Reserve. He                                                                    
discussed  that  Section  13 related  to  FY  11  supplement                                                                    
funding, had a new effective date  of May 17, 2011; the date                                                                    
had been  changed from  June 30, 2011  to allow  projects to                                                                    
begin at an earlier time.                                                                                                       
                                                                                                                                
Mr. Armstrong communicated that  members should have a House                                                                    
district summary, which provided  the total funding for each                                                                    
of the sections within the HCS.                                                                                                 
                                                                                                                                
4:51:24 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
CSSB 46(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 5:22 PM.                                                                                           

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