Legislature(1995 - 1996)
03/29/1995 01:40 PM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 136 APPROP: FY 96 CAPITAL PROJECTS BUDGET
Number 310
SENATOR TORGERSON brought SB 136 before the committee as the next
order of business and stated it was his intention to only take
testimony on sections relating to the Capital Matching Grants
Program. He then invited Jack Fargnoli to the table to respond to
questions regarding the program that were directed to the Office of
Management & Budget in a memo dated March 23, 1995.
JACK FARGNOLI, Senior Policy Analyst, Office of Management &
Budget, said the program has been existence since 1993.
Essentially, there are two programs: one addresses municipalities
in the Department of Administration and the other addresses
unincorporated communities in the Department of Community &
Regional Affairs. They are referred to collectively as the
Matching Grant Program, but there are two separate funds, one in
each department to which money is appropriated. From OMB's
perspective, the program is running well. The few main concerns
they've had from municipalities and unincorporated communities
they've been able to address, and the feedback has been mainly
positive with little on the negative side.
Speaking to the equity issue, OMB believes that the program is
functioning as it was intended to function. The two groups of
grantees in the two programs are treated differently from other.
The municipalities have a much more elaborate set of criteria and
a set of factors that influence the distribution of money. The
unincorporated communities basically divide up whatever amount of
money is funded to the program. For the municipalities, all
grantees in both programs are subject to a maximum percentage match
of 30 percent. For the unincorporated communities, it is a flat 5
percent. So for the municipalities there is some shifting, by
policy in the legislation, that shifts more money to smaller
municipalities and provides less of a burden in terms of the match
required for them. The larger and more wealthy the municipality is
the higher their match tends to be. Mr. Fargnoli said OMB is not
aware of any equity concerns or problems.
Number 400
Mr. Fargnoli said there has been a question of a policy call nature
before them and before the legislature the last couple of years
which involves unincorporated communities lying within boroughs.
Under the current legislation those entities are not grantees. The
unincorporated community program that's in place only addresses
those located in the unorganized borough. The rationale for
treating them this way is not to establish any inequity between
unincorporated communities lying within and without of boroughs so
much as to not supplant the capital project planning authority that
is set out through a constitutional basis for boroughs.
OMB feels that the boroughs are the proper planning authority for
capital project planning, so they are "happy" with the program the
way it stands now. Further, Mr. Fargnoli said part of the
operational problem or difficulty they would have in making
amendments to change the program in this regard is the definitional
problem of trying to identify unincorporated communities located
within a borough.
Number 431
Addressing the future of the program, Mr. Fargnoli stated the new
administration is finding its own level of comfort with the
program. It has been communicated to him that the program will go
forward and the Governor's capital budget is proposing to fund the
program at the same $20 million level as it has been funded in the
past.
Number 437
SENATOR R. PHILLIPS recalled that a 10 percent administrative cost
for doing a project had been added to the statute, and he asked
Mr. Fargnoli how that was working out. JACK FARGNOLI said he is
not aware of there being any problem with the provision.
Number 445
SENATOR KELLY questioned 1993 population figures being used for a
program that is going into effect in 1996. He said he thought the
Anchorage figure was considerably higher than what was shown on the
chart. JACK FARGNOLI responded that it was a footnote mistake on
the chart and should read July 1, 1994. The numbers in the model
are taken each year and certified by the commissioner of the
Department of Community & Regional Affairs. That has been done
again for this year so those are the correct figures. SENATOR
KELLY commented that he would have staff check with the
municipality on those figures for the Anchorage area.
Number 511
SENATOR TORGERSON stated public testimony would be taken on SB 136.
TOM ARMOUR, Administrator, City of Pelican, voiced his strong
support for the Capital Matching Grants Program, encouraged its
continuation, and stated its works particularly well for the
smaller communities like Pelican.
Number 549
SENATOR KELLY informed the committee he had received the updated
population figures from the Municipality of Anchorage, and the
unofficial figure for 1994 is 250,006. The state will come out
with the official 1994 figures in September.
Number 561
SCOTT STERLING, a member of the Mat-Su Borough Assembly, stated the
Capital Matching Grants Program works well for the Mat-Su Borough.
He noted they are the fastest growing municipality in the State of
Alaska and have more road miles to take care of and the program
helps them in that way.
Number 583
WALT WREDE, Manager of the Lake & Peninsula Borough, stated the
borough likes the program and agrees with it in principle, but they
have an equity issue. The borough has 17 villages, five of them
are incorporated and twelve of them are not. They feel there is an
equity issue in that regard because part of those villages are not
guaranteed the $25,000 that unincorporated villages receive.
TAPE 95-10, SIDE B
Number 001
As an example, Mr. Wrede pointed out that in this year's Governor's
budget the Lake & Peninsula Borough would receive $44,000 for 12
communities. He noted that they tried to rectify this inequity
last year with legislation, but it failed to pass the legislature.
However, it is their intent to have legislation reintroduced again
this session.
Number 020
AL RIOG, a resident of Kenny Lake testifying via the teleconference
network, stated his support for the Capital Matching Grants Program
and encouraged its continued funding.
Number 566
There being no further witnesses to testify on SB 136, SENATOR
TORGERSON asked for the will of the committee.
SENATOR ZHAROFF moved that SB 136 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
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