04/07/1995 01:40 PM Senate CRA

        SB 124 HUMAN SERVICES COMMUNITY MATCHING GRANTS                       
                                                                              
 Number 370                                                                    
                                                                               
 SENATOR TORGERSON brought  SB 124  before the committee as the final          
 order of business.                                                            
                                                                               
 TERESA SAGER, staff to Senator Mike Miller, the prime sponsor of SB
, explained that the legislation would permanently set the local           
 match rate for the Human Services Community Matching Grant Program.           
 The local match would be 30 percent and the state portion would be            
 70 percent.                                                                   
                                                                               
 Ms. Sager said the program, when created a few years ago, was                 
 intended to start out at a 10 percent local match, increase the               
 following fiscal year to a 30 percent match, and then in the third            
 and subsequent years the local match would be 50 percent.                     
 Unfortunately, the 50 percent match would become difficult for the            
 municipalities to meet due to declines in federal funds that they             
 receive, as well as declines in municipal assistance and revenue              
 sharing.                                                                      
                                                                               
 Ms. Sager noted that similar legislation passed the Senate and                
 House last session but was vetoed by the Governor.  She also                  
 pointed out that this legislation would bring the Human Services              
 Matching Grants program in line with other matching grant programs            
 which are set at 30 percent.                                                  
                                                                               
 Number 395                                                                    
                                                                               
 SENATOR TORGERSON voiced concern with the Fairbanks North Star                
 Borough applying for a large share of these grants when according             
 to a municipal population figure there are only 47,000 in the                 
 municipality instead of the 65,000 figure stated in the definition            
 of a "second class borough."  However, he added that he realizes              
 they are including the population of the City of Fairbanks                    
                                                                               
 Number 406                                                                    
                                                                               
 CHARLES MCKEE, testified from Anchorage on SB 124, but did not                
 state a position on the legislation.                                          
                                                                               
 Number 440                                                                    
                                                                               
 CHERYL KEEPERS, an employee of the Fairbanks North Star Borough,              
 stated their population is closer to 82,000 so they do meet the               
 minimum of 65,000.  SENATOR TORGERSON said he made the point that             
 they are including the City of Fairbanks to reach that 82,000                 
 figure, but the borough itself is at 47,000 and he considers that             
 double dipping with the program.  MS. KEEPERS clarified that the              
 City of Fairbanks is no longer applying for the grants and FY 94              
 was the last year they did so.                                                
                                                                               
 Number 465                                                                    
                                                                               
 NADINE WINTERS, an employee of the Fairbanks North Star Borough,              
 stated she was present to respond to questions, and she urged the             
 passage of SB 124 out of committee.                                           
                                                                               
 Number 469                                                                    
                                                                               
 There being no further witnesses to testify on SB 124, SENATOR                
 TORGERSON asked for the will of the committee.                                
                                                                               
 SENATOR R. PHILLIPS stated he was not in support of SB 124.                   
                                                                               
 SENATOR KELLY stated that although he knows that this would benefit           
 his community and some of the larger municipalities, it is not a              
 responsible position for the State of Alaska to be taking when                
 looking at a $500 million deficit at the state level, so he will              
 continue to oppose the bill.                                                  
                                                                               
 Number 484                                                                    
                                                                               
 SENATOR TORGERSON stated that due to the lack of a motion, SB 124             
 would be held over until the next committee meeting.