Legislature(1993 - 1994)

04/07/1994 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  CHAIRMAN VEZEY opened HB 393 for discussion.  He stated                      
  information had been prepared to answer questions about                      
  financing additional cities.  He asked JOE RYAN for an                       
  explanation of the report.                                                   
  Number 595                                                                   
  JOE RYAN, STATE AFFAIRS COMMITTEE AIDE, explained the report                 
  on HB 393.  He stated there had been concern from the                        
  Fairbanks North Star Borough as to whether it would lose                     
  revenue if HB 393 went into effect.  He discussed the                        
  concern with Judi Slajer, Chief Financial Officer, Fairbanks                 
  North Star Borough, who felt there would be an approximate                   
  10 percent loss, or perhaps $120,000 less moneys.                            
  MR. RYAN stated the report (on file) illustrates what the                    
  allocations would be.  He understood the legislative                         
  function would be that two programs will be set up, whereby                  
  certain amounts of funds will be allocated to the rural                      
  program and other amounts will be allocated to the other                     
  programs.  The report breaks down what each community would                  
  be eligible to receive, examining grant number, population,                  
  matching amount and grant, if HB 393 goes into effect.                       
  MR. RYAN stated he was unable to answer whether the                          
  percentage of grant would be reduced for the smaller                         
  communities.  He noted a 30 percent reduction for the larger                 
  Number 619                                                                   
  CHAIRMAN VEZEY clarified the report illustrates how the                      
  program would distribute if HB 393 became law.  He noticed                   
  there was not a comparison of current status.                                
  Number 624                                                                   
  MR. RYAN commented there have been several people out sick                   
  from different departments, therefore he has had difficulty                  
  getting comparative data.                                                    
  Number 631                                                                   
  CHAIRMAN VEZEY stated the extra grants to the unincorporated                 
  communities within boroughs would be allocated out of the                    
  total program receipts.                                                      
  MR. RYAN clarified the allocation is made by the                             
  legislature.  He stated the distribution formula is based                    
  upon population figures, with central pie.  If the                           
  population in a borough was reduced or not counted, they                     
  would proportionately receive less money.  Additional                        
  communities figured in individually would subtract from the                  
  total population figure, thereby the share of the pie for                    
  the larger community would proportionately reduce.                           
  Number 641                                                                   
  CHAIRMAN VEZEY estimated the formula appears to allocate in                  
  boroughs about $10 per citizen.  For example, presently if                   
  Salcha represented 400 people in the Fairbanks North Star                    
  Borough (FNSB), the borough would receive $4,000.  Under HB
  393, if Salcha was eligible, it would receive $25,000,                       
  reducing the money available in the pool.                                    
  Number 645                                                                   
  MR. RYAN added the population of the FNSB would be reduced.                  
  (REPRESENTATIVE KOTT left the meeting at 9:39 a.m.)                          
  Number 658                                                                   
  REPRESENTATIVE GARY DAVIS agreed HB 393 would reduce the                     
  amount to the borough; however, in most cases the borough                    
  would already have a project they were funding in that                       
  unincorporated area.                                                         
  MR. RYAN pointed out HB 393 hinges on legislative                            
  appropriation because, from his understanding, there will be                 
  two appropriations.                                                          
  Number 674                                                                   
  CRYSTAL SMITH, ALASKA MUNICIPAL LEAGUE, commented on HB 393.                 
  She stated there are two concerns about HB 393:  1) funding                  
  within a borough would shift from the borough to the                         
  unincorporated communities - organized to unorganized                        
  government structure; and 2) in the absence of additional                    
  funding and the letter of intent from the Community &                        
  Regional Affairs Committee, the effect of adding several                     
  unincorporated communities would be to reduce every                          
  incorporated community's share of the total appropriation.                   
  She noted there is a net need for additional funds, or a net                 
  decrease for municipal governments.  HB 393 is another                       
  example of a disincentive to the organization of local                       
  (REPRESENTATIVE OLBERG left the meeting at 9:40 a.m.)                        
  (REPRESENTATIVE KOTT returned to the meeting at 9:40 a.m.)                   
  Number 692                                                                   
  CHAIRMAN VEZEY clarified HB 393 would be a good policy if                    
  the legislature was looking for a method to go to something                  
  other than organized boroughs.                                               
  Number 693                                                                   
  MS. SMITH stated she would not say that, but HB 393 is                       
  another disincentive for people to organize or keep                          
  Number 695                                                                   
  CHAIRMAN VEZEY recognized the joint session starting at 9:45                 
  a.m.  HB 393 was held in committee.                                          
  CHAIRMAN VEZEY adjourned the meeting at 9:43 a.m.                            
  BILLS NOT HEARD                                                              

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