Legislature(2013 - 2014)HOUSE FINANCE 519
03/20/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB64 | |
| HB99 | |
| HB84 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 84 | TELECONFERENCED | |
| + | HB 99 | TELECONFERENCED | |
| *+ | HB 64 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 64
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
2:05:05 PM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, addressed the legislation. She
referred to a spreadsheet that included FY 14 capital
budget amendments (copy on file). The capital budget
request including the amendments and the mental health
budget totaled $1.86 billion. Of that, $799.2 million was
unrestricted general funds for approximately 43 percent of
the total budget. She pointed out that $74.6 million was
classified as designated general funds while $56.6 million
was "other funds" and $938.4 million was federal funds.
Ms. Rehfeld highlighted that designated general funds
included the Regional Educational Attendance Area Fund and
$46.2 million was requested for two school construction
projects. The Renewable Energy Grant Fund request was $25
million for round 6 of the renewable energy grants. She
noted that "other funds" addressed items like the Highway
Working Capital Fund, International Airport Funds and
Statutory Designated Program Receipts.
Ms. Rehfeld noted that HB 64 contained 14 sections. Section
1 was considered the number section of the bill and
contained individual department projects. The projects were
organized by department in order of priority. She stated
that the exception was the Department of Transportation and
Public Facilities (DOT/PF), which was organized by program
area in alphabetical order. The deferred maintenance
requests appeared at the end of each department's budget.
Sections 2 and 3 of the bill were the funding summaries for
the numbers included section 1. The language section began
on page 48.
2:08:36 PM
Ms. Rehfeld moved to the language section. She pointed to
Section 4, which included the Legislative Budget and Audit
Committee provisions. Section 5 on page 48, lines 17-21
included requests for fund capitalization. She pointed out
that (a) addressed the Alaska Gasline Inducement Act (AGIA)
reimbursement for a request of $25 million. She explained
that $305 had been appropriated for the project and the
additional increment would bring the total to $330 million
of the $500 million. She noted that $223 million had been
paid out in reimbursements in December 2012.
Ms. Rehfeld continued with section 5 (b) and the request
for $2 million for the Emerging Energy Technology Fund
created in 2010 for demonstration projects. She repeated
that section 6, page 48 addressed fund transfers. She
continued with section 7, page 48, which authorized
settlements from insurance claims to go to the catastrophic
reserve or appropriate state agency. Section 8, page 48 and
49 addressed the National Petroleum Reserve Alaska (NPRA)
Grants. She noted that the Office of Management and Budget
(OMB) brought forward an estimate of the amount of revenue
available for the next fiscal year. The amended budget
contained a revised amount and a list of grants. The
Department of Commerce, Community and Economic Development
(DCCED) managed the annual grant program for communities in
the impacted area of the NPRA.
Ms. Rehfeld continued with section 9, page 49 and a request
for reappropriation of $1,750,000 in funds from the Alaska
Energy Authority for a project for Akiak Rural Power System
Upgrade. The project was complete and the request was to
repurpose the balance for the completion of a project in
Atmautluak. Section 10, page 49 included a request to
reappropriate remaining balances from projects under the
Department of Environmental Conservation (DEC) for the
municipal matching grant program for project administration
of continuing water, sewer and solid waste facility grants.
The amount was estimated at $359,541.
2:12:04 PM
Ms. Rehfeld pointed to Section 11 on page 50. She mentioned
the Kodiak Near Island Research Facility through the
Department of Fish and Game to repurpose the funds for
their hunting and fishing licensing system. She continued
with Section 12 and the lapse provisions including (a), the
NPRA grant and (b) addressed fund capitalizations for AGIA
and the emerging technology. Section 13 provided
reappropriations and their effective date of June 30, 2013.
She added that section 14 was the effective date of the
bill July 1, 2013.
Ms. Rehfeld continued to highlight specific funding sources
proposed in the budget. Under the Alaska Housing Capital
Corporation funding source, $95.2 million was proposed for
the Susitna Watana project. She mentioned that the Alaska
Industrial Development and Export Authority annually
declared a dividend available and the FY 14 dividend amount
was $20,745,000, which was proposed for utilization in 4
projects. The projects included the Ambler Road to
Resources for $8.5 million, the Dalton Highway improvements
for $7.5 million and the general Roads to Resources program
for smaller timber harvest and other roads for $2 million
and the Strategic Mineral Assessment for $2,745,000.
Ms. Rehfeld noted that the Alaska Housing Finance
Corporation (AHFC) did not have dividends available for
projects, so their $10.6 million was allocated for debt
service under AHFC. She noted that the energy components of
the governor's capital request included the Susitna
project, the Alaska Industrial Development and Export
Authority (AIDEA) appropriation of $50 million to leverage
other funds and financing for natural gas treatment and
distribution for interior Alaska, weatherization at $31.5
million, home energy rebates at $20 million, and the
renewable energy grants at $25 million.
Ms. Rehfeld mentioned approximately $1 billion requested
for statewide infrastructure projects. The projects were
typically introduced for aviation and highway facilities,
the village safe water components municipal water and sewer
projects. She included the request for funding for 12 major
maintenance projects from the Department of Education and
Early Development (DEED) list with an amendment to fund
project 13. She noted that year 4 of the governor's
deferred maintenance initiative to address state facilities
for $100 million.
2:16:12 PM
Ms. Rehfeld pointed to a request for $15 million for the
Geologic Materials Center to purchase and renovate an
existing facility in Anchorage. She added the Chinook
Salmon Research Initiative for $10 million over a five year
period to take a strategic look at sustainability of the
initiative.
Ms. Rehfeld discussed the amendment package. She reviewed
the spreadsheet, line 2 and DEED's major maintenance
project, number 13 on the department's list. She noted that
OMB had the opportunity to reappropriate funds from two
prior projects; one from Susitna Valley Replacement School
and one from Petersburg Elementary School Roof Replacement.
She explained the legislative request to repurpose the
funds to finish Tununak K-12 Major Maintenance.
Ms. Rehfeld continued with lines three and four of the
spreadsheet, which were corrections to the submitted back-
up. The dollar amounts were unchanged. She pointed to line
4 and the Nome Airport Runway and Airport Pavement Rehab
should include the north apron area. She continued with a
request for $26.5 million in federal receipt authority
found on line 5. The request addressed 4 projects found on
lines 6, 7, 8 and 9. She mentioned the State Transportation
Improvement Program (STIP) amendment process. Most of the
projects occurred after the December budget was released.
She requested consideration for $10 million for the
Ketchikan Water Street Trestle replacement and $1.5 million
for Parks Highway Passing Lanes. She continued with a
request for $10 million for St. Mary's in Mountain Village
Road Rehabilitation. She added line 9 and the Wrangle
Evergreen Road Improvements.
Ms. Rehfeld continued with Line 10 and the adjustment to
the National Petroleum Reserve Alaska Impact Grant Program
containing a list of grants for the individual projects in
the back-up. She continued with line 11 and the earlier
mentioned reappropriation for the ability to fund the
Tununak School. Line 12 was a reappropriation through
DOT/PF to continue efforts to build sand storage buildings
in central region as part of an Environmental Protection
Agency (EPA) requirement.
2:21:06 PM
Ms. Rehfeld looked at line 1 of an additional spreadsheet
submitted March 19 (copy on file). The first item addressed
the Medallion Foundation. She explained that $750 thousand
would be added to the $250 thousand requested in the
governor's budget. She mentioned the second item for the
Northwest Arctic Borough for the Kivalina Evacuation Road.
The community of Kivalina had decided on an official
relocation site, and the evacuation road would provide safe
access to that location. Ultimately, the Kivalina School
would require replacement and the evacuation site would
house the new school.
Co-Chair Austerman pointed to the four DOT/PF projects and
the STIP. He asked if a state match would be requested the
following year. Ms. Rehfeld replied that a state match was
included annually in the request. She understood that
providing the authority would not require additional state
funds.
2:23:47 PM
Co-Chair Austerman pointed to reappropriations on page 1.
He asked about the Tununak school maintenance with a
request of $727.9 thousand. Ms. Rehfeld responded that
there were two components to funding the Tununak project.
She noted that the reappropriation with the $727.9 thousand
would total the $16,381,000 required for the project. She
pointed out line 2, which stated the $727.9 thousand and
line 11. The reappropriation estimated at $15,653,451 would
total the amount necessary to fund the Tununak project.
Representative Guttenberg asked about line 8 of the
amendments and the Saint Mary's road rehabilitation. He
wondered follow-up maintenance was planned for the road.
Ms. Rehfeld replied that DOT/PF would be responsible for
the road maintenance.
Representative Guttenberg asked if the department had
submitted a maintenance request for the item. He stated
that the maintenance was not a priority in the current time
and he reported to the committee that driving the 16 mile
stretch took approximately one hour.
Representative Wilson asked about safe-water projects
(pages 8 through 10 in the legislation). She noted that
there was an air-quality problem in Fairbanks. She wondered
why the Fairbanks problem was not a priority when safe-
water was.
Ms. Rehfeld replied that the Village Safe Water Program for
$8.7 million was a general fund match for federal funds.
The projects were not meant to be mutually exclusive to
clean air.
2:28:02 PM
Representative Wilson believed that the state should be
responsible for helping to address the air quality issue in
Fairbanks.
Representative Gara discussed the legislature's intent to
appropriate $50 million to the Renewable Energy Fund. The
intention was to allow for the completion of as many
projects as possible. He wondered why $25 million as
opposed to the $50 million statutory request.
Ms. Rehfeld answered that it was necessary to evaluate
budget items every year. She opined that the energy
component for the capital budget was robust. She pointed
out that the legislature had opportunity to amend the
request. She mentioned competing interests. She stated that
the administration believed there had been significant
investment in renewable energy with many good projects
leading to reductions in costs. The package included
renewables, the Home Energy Rebate, weatherization, the
interior energy project and Susitna.
Representative Gara noted that the decision was not based
on an evaluation about whether more than $25 million of
good applications would save communities money. Ms. Rehfeld
responded that the Alaska Energy Authority (AEA) had an
annual evaluation process, with a project list submitted to
the legislature at the end of January. She noted that AEA
had not completed its review process prior to the release
of the governor's budget.
Representative Gara asked about the request of $2 million
for the Emerging Energy Grant Fund. He requested further
explanation of the fund and its use. Ms. Rehfeld deferred
the question to AEA.
2:31:48 PM
Representative Guttenberg remarked that there had been a
long conversation regarding the Kivalina project.
Co-Chair Stoltze noted the bill would come before the
committee again.
HB 64 was HEARD and HELD in committee for further
consideration.
2:32:53 PM
AT EASE
2:37:39 PM
RECONVENED