Legislature(1999 - 2000)
05/07/1999 09:21 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 32
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
The committee considered amendments to the committee
substitute, 1-GS1022/D 5/3/99, in the following order:
DEPARTMENT OF ADMINISTRATION
ADM #1: This amendment increases the amount for the
Pioneers' Home Health and Safety Repairs component from
$144,000 to $250,000. The original request was $500,000;
this amendment would fund the request at 50 percent.
Senator Gary Wilken moved for adoption. He explained this
would allow the department to fund the Sitka Pioneer home
elevator mechanical upgrade. He said there would be a small
amount leftover to respond to emergency situations or to
address violations as they appear in the five other
Pioneer's Homes.
Senator Al Adams supported the amendment but noted it only
granted half of what was needed. He hoped the maker of the
motion would support the full cost.
Co-Chair John Torgerson commented that he wished the
committee could vote yes on all the amendments but there
was not adequate funding to do so. However, he stated that
he supported this amendment.
There was no objection and the amendment was ADOPTED.
ADM #2: This amendment of $3,500,000 for the Information
Service Fund Equipment Replacement is funded by the state's
Information Services Fund. Adoption would not reduce costs
to the Information Technology Group nor to user agencies in
fiscal year 2000 (FY00). Senator Gary Wilken moved for
adoption. Co-Chair John Torgerson objected. Senator Gary
Wilken explained this would have no general fund impact and
would be paid with interagency receipts. He said the
amendment authorized the expenditures of monies collected
from the agencies in order to upgrade the $40-50 million
investment in equipment. He added that this represents
about 70 percent of an on-going process.
Co-Chair John Torgerson removed his objection and the
amendment was ADOPTED.
ADM #3: This amendment is identical to the previous
amendment. Senator Al Adams did NOT OFFER due to action
taken on ADM #2.
ADM #4: This amendment is for $250,000 to fund the Bethel
Courthouse Transfer. Senator Al Adams requested this be
HELD.
ADM #5: This amendment increases the amount of funding for
the Pioneer's Home Health and Safety Repairs to the
original Governor's request of $500,000. Senator Al Adams
stated that due to action taken in ADM #1 that restores
fifty percent of the funding, he would NOT OFFER this
amendment.
ADM #6: This amendment inserts a new item, Information
Technology Literacy Project with $175,000 of general funds.
Senator Al Adams moved for adoption. Senator Dave Donley
objected. Senator Al Adams explained the amendment
provides continuation of funding for on-line technology
training for all public employees, including university
staff, faculty and students. He noted that Alaska is the
only state in the nation to provide this training
opportunity, a goal accomplished through a partnership
between the state and the Gartner Group, a private company.
The appropriation leverages a $4.5 million grant package to
enhance information technology management skills. He warned
that without this amendment, the state would have lost the
most cost-effective means of training state employees.
Training either will not occur, or will be more expensive.
Currently, 3,345 users are enrolled in 4,000 on-line
training courses.
Senator Loren Leman noted this had a 26-1 match ratio and
it seemed to him that the departments could find the funds
needed. Senator Al Adams said he could have the department
testify but guessed that when unallocated general
reductions were made, it would affect the availability of
flexible funds.
ANNALEE MCCONNELL, Director, Office of Management and
Budget, Office of the Governor came to the table and agreed
with Senator Al Adams. She stressed that when, in addition
to specific program cuts, cuts were made to unallocated
funds it was difficult to "find" funds. She spoke to the
importance of this training program. She felt the technical
investment is an important leverage in a time of tight
budgets.
Senator Lyda Green wanted to know if there were ever a fee
imposed for the students taking these training courses.
Annalee McConnell replied that the kind of training
provided is for basic skills needed for state employees to
perform their jobs, so they are not charged a fee. She
continued stressing the advantage of the partnership with
the Gartner Group, saying it allowed for a high level of
training using very little state dollars.
Co-Chair John Torgerson said he would remain opposed to the
amendment.
The amendment FAILED by a vote of 1-8. Senator Al Adams
cast the yea vote.
ADM #7: (This amendment was introduced and acted upon later
in the meeting.)
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
CED #1: This amendment inserts $100,000 in general funds
for Economic Development Administration (EDA) Annual
Planning Grant. Senator Sean Parnell moved for adoption.
Co-Chair John Torgerson explained this amount is matched
with an equal amount of federal funds and is a high
priority for the department.
Senator Lyda Green asked what is the function of the
planning grant.
TOM LAWSON, Director, Division of Administrative Services,
Department of Commerce and Economic Development, explained
the purpose of the grant is to annually provide funds to
continue economic development efforts. He said that in the
past three years, the department operated several different
programs, including a cultural tourism program in rural
regions of the state. This year, the goal is to work with
rural businesses to get them export-ready.
He pointed out that the federal funds were authorized in
the FY00 Operating Budget.
Senator Dave Donley wanted to know why the general funds
were requested in the capital budget rather than the
operating budget. Tom Lawson explained that in the past,
the matching funds were part of the Economic Development
Matching Grant program, which had not been funded for the
last two years. Therefore this year, the EDA grant request
was separated out to better obtain funding. Based on what
the department learned, he said next year the federal funds
would be removed from the operating budget and put in the
capital budget along with this matching fund request.
Senator Lyda Green objected to the motion.
Senator Dave Donley pointed out that the department had
flexibility in the operating budget and he believed this
request should not have been included in the capital
budget.
Senator Sean Parnell stated he supported the motion.
By a vote of 5-4 the amendment was ADOPTED. Senator Pete
Kelly, Senator Lyda Green, Senator Randy Phillips and
Senator Dave Donley voted against the motion.
CED #2: This technical amendment increases the amount of
other funds for the Kodiak Launch Complex by one million
dollars to $6 million to correspond to the Front section of
the bill. Co-Chair John Torgerson explained he would NOT
OFFER this amendment at this time due to a possible
technical problem. Senator Al Adams wanted to know if this
amendment would capture all the funding. Co-Chair John
Torgerson answered there is another bill pending that would
give authorization to spend the funds and that he would
check to see if all available funds would be captured.
CED #3: This amendment restores the originally requested
$200,000 general fund match for the Economic Development
Matching Grant Program. Senator Al Adams moved for
adoption. Co-Chair John Torgerson objected. Senator Al
Adams said this would restore the cornerstone of the
department's economic efforts since 1980. He explained that
an eligible project would be the construction of an
economic development facility and international trade show
or small business economic development conference. He spoke
of past grants and projects, saying that from 1995 to 1997,
the Division of Trade and Development funded more than
forty economic development projects statewide totaling more
than $1.3 million through this program. He pointed out that
the funds matched over $9.2 million of non-general fund
monies. He felt this was a great program to assist small
economic projects that should be continued.
The amendment FAILED by a vote of 1-8. Senator Al Adams
voted in favor of adoption.
CED #4: Because this amendment is identical to CED #1,
Senator Al Adams did NOT OFFER.
CED #5: (This amendment was addressed later in the
meeting.)
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Amendments for this department were deferred until later in
the meeting.
DEPARTMENT OF CORRECTIONS
COR #1: This amendment increases the amount for Equipment
Replacement from $125.0 to $250.0 general funds. Senator Al
Adams moved for adoption. Senator Dave Donley and Senator
Loren Leman objected. Senator Al Adams explained that the
present capital budget only provided for half of the amount
needed. He spoke to the equipment failures and said these
monies would be used to replace equipment that is either
inoperable or worn down. He detailed the major kitchen
equipment, laundry room commercial equipment and security
and safety equipment and the daily reliance on this
equipment. He talked about the need to address deferred
maintenance projects.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams cast the yea vote.
COR #2: This amendment doubles the amount of general
funding to $900.0 for Maintenance, Renovation, Repair,
Renewal and Replacement from what was granted in the
committee substitute. Senator Al Adams moved for adoption.
Co-Chair John Torgerson objected. Senator Al Adams said
only half of the needed funds had been granted. He
repeated his argument of the need to fund deferred
maintenance. He noted the replacement value investment of
the approximate 112 state-owned buildings is over $324
million. The funds in this request would only be used to
replace equipment that is already broken or inoperable. He
stressed that the equipment is used 24 hours a day 365 days
a year. The state is responsible for the security; safety
and medical care for an annual daily average of 985,000
inmates.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams cast the yea vote.
ALASKA COURT SYSTEM
CRT #1: This amendment inserts $100,000 general funds for
Deferred Maintenance. Co-Chair John Torgerson announced
that although he sponsored this amendment, he would not
offer it for adoption. Senator Al Adams moved for its
adoption. Co-Chair John Torgerson objected. Senator Al
Adams again stressed the need for deferred maintenance and
noted the small dollar amount requested.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams voted yea.
DEPARTMENT OF EDUCATION
EDU #1: This amendment deletes $90,000 general funds for
Library-Repair Archives, Building Foundation and inserts
that same amount for Library-Statewide Library, Electronic
Doorway (SLED). Senator Gary Wilken moved for adoption. He
explained this is a transfer of funds to SLED. He detailed
the services SLED provides. Through a cooperative venture
between the University of Alaska-Fairbanks and the State
Library, SLED provides Internet access to more than 50
communities in Alaska. SLED allows access to the state and
legislative home pages, basic government, education,
medical and legal information. SLED does not provide e-mail
or other commercial Internet services. The major goal of
SLED is to provide increased information access for
Alaskans.
Senator Gary Wilken noted that the repair of the Archives
Building foundation is not a safety-related project. A
safety study by the Department of Transportation and Public
Utilities determined that the building, staff and contents
are secure. The project as proposed will not fix the
problems with the building. The Department of Education
will continue to work with the Department of Transportation
and Public Utilities to identify the scope and cost for the
foundation work.
Senator Randy Phillips asked if this amendment proposes
substituting capital funds for an operating expense.
KAREN CRANE, Director, Division of Libraries, Archives and
Museums, Department of Education came to the table. She
told the committee that SLED had been traditionally funded
through the capital budget. Senator Randy Phillips wanted
to know if the funds would be used to buy hardware, which
is considered capital expenditures. Karen Crane answered it
would not.
Senator Randy Phillips wanted to know how long SLED had
been funded from the capital budget. Karen Crane replied
SLED has been funded in this manner since its inception in
1994. She added that there was some funding contained in
the operating budget for SLED.
Senator Dave Donley said he knew the department had great
flexibility within the operating budget and could fund SLED
from the operating budget general fund. He thought the
program should funded from the operating budget and not the
capital budget. He supported maintaining the Archive
Building repair component. He warned that if the problems
with the building's foundation were not addresses there
would be problems with the entire building.
Senator Al Adams noted the original request was $100,000
and asked if the program could proceed with the $90,000
allocation. Karen Crane affirmed that it could.
Senator Randy Phillips wanted to know if the funding
mechanism to fund SLED through the capital budget was an
administrative decision or legislative.
Karen Crane explained that the original capital funds were
for SLED equipment costs. She pointed out that the cost
has been steadily reduced over the years, adding that AT&T
contributed to the program.
Co-Chair John Torgerson wanted to know if the witness
supported the fund shift. Karen Crane did.
Senator Randy Phillips wanted to know if it was true that
the archive building was not safety related. Karen Crane
said the Department of Transportation and Public Facilities
had examined the building and found no danger to contents
or employees. She qualified that at some time repairs to
the building will need to be addressed but that it will
cost several hundred thousand dollars. The Department of
Transportation and Public Utilities determined it would be
better to address the project as a whole rather than
piecemeal as proposed in the original request.
Senator Pete Kelly had toured the building, saw the
extensive damage and concluded that it was not a problem
that can be fixed with only $90,000.
Senator Randy Phillips wanted to know if this funding shift
was an administrative request. Karen Crane replied that the
funding request was included in the Governor's capital
budget.
Senator Dave Donley noted that the $90,000 request for the
archive building came from the Governor. Karen Crane
admitted she submitted the original request and was
recommended by the Governor. Senator Dave Donley said he
wondered what else was in the governor's budget was
unnecessary.
The amendment was ADOPTED by a vote of 7-2. Senator Dave
Donley and Senator Sean Parnell voted against it.
EDU #2: This amendment is similar to the previous amendment
but with an amount of $100,000. Senator Al Adams did NOT
OFFER based on action taken on EDU #1.
Senator Dave Donley suggested Annalee McConnell come to the
table and tell the Committee what other items were included
in the Governor's budget request that are not really
necessary. Senator Al Adams suggested that the Committee
should therefore discuss the items the Capital Budget
Subcommittee added to the budget that were not originally
included. Co-Chair John Torgerson noted that discussion on
the budget as a whole would be held later.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
An amendment for this department's budget was considered
later in the meeting.
DEPARTMENT OF FISH AND GAME
F&G #1: This amendment deletes $200,000 general funds for
Statewide Facilities Deferred Maintenance, $100,000 general
funds for Vessel and Aircraft Maintenance and inserts
$400,000 general funds for Deferred Maintenance, Renewal,
Replacement of Facilities, Equipment, Vessels and Aircraft.
Senator Sean Parnell moved for adoption. Co-Chair John
Torgerson explained the amendment combines the facilities
deferred maintenance and the vessel and aircraft
maintenance and increases the funding amount by $100,000.
He noted the amendment would give the department more
flexibility to spend the funds within the components.
There was no objection, and the amendment was ADOPTED.
F&G #2: This amendment deletes, "Rabbit Creek Shooting
Range" and inserts, "Anchorage Indoor Rifle Range" on page
16 line 26 of the committee substitute. Senator Dave Donley
moved for adoption. Senator Al Adams objected. Senator Dave
Donley explained that this is a technical correction to the
Subcommittee report. He listed past legislative
appropriations of fish and game funds for indoor shooting
ranges in Fairbanks and in Juneau. The current funding
amount is to begin the process of research and planning to
build a similar facility in Anchorage, according to Senator
Dave Donley. He noted that the fish and game funds are
generated by taxes on ammunition.
Co-Chair John Torgerson pointed out that this amendment is
simply a name change and that no additional funds are added
to the budget.
Senator Al Adams remarked this appropriation is a case of
the Subcommittee chair taking care of his own needs rather
than considering the rest of the Committee. He stressed
that this item was contained in the Governor's capital
budget.
By a vote of 7-1-1, the amendment was ADOPTED. Senator Al
Adams cast the nay vote. Senator Pete Kelly was absent.
F&G #3: This amendment inserts $1,240,400 general funds and
$137,800 other funds for the Southeast Region Vessel
Facility. Senator Al Adams moved for adoption. Co-Chair
John Torgerson objected. Senator Al Adams explained this
amendment provides funds to replace the Southeast vessel
maintenance shop, which is currently housed in the Subport
building on the Juneau waterfront. The Subport is sited on
land owned by the Mental Health Trust Authority and
although the Subport lease has been extended several times,
new space must be secured before the facility is forced to
move.
Senator Al Adams continued saying the Department of Fish
and Game has negotiated a cooperative agreement with the
National Oceanic Atmospheric Administration (NOAA) and the
National Marine Fisheries Service (NMFS) to construct a
building on their site and use the NOAA and NMFS existing
dock facility. This agreement substantially reduces the
cost of the project, according to Senator Al Adams. He
warned that all other options are more expensive and may
lead to loss of fishery management capability if vessels
must be mothballed for lack of a maintenance facility.
The amendment FAILED by a 1-7-1 vote. Senator Al Adams
voted in favor and Senator Pete Kelly was absent.
F&G #4: This amendment adds $375,000 general funds for Dock
Repair, Maintenance and Replacement. Senator Al Adams moved
for adoption. Co-Chair John Torgerson objected. Senator Al
Adams detailed the poor condition of the timber retaining
walls and support pilings at the two dock facilities
located in King Salmon and Cordova. In order to protect
state equipment, he surmised these funds must be allocated.
Senator Lyda Green wanted to know if funds for this request
were provided in Co-Chair John Torgerson's earlier
amendment. Co-Chair John Torgerson replied F&G #1 provided
significantly less money, but did put all items in one
component to allow the department to prioritize projects.
The amendment FAILED to be adopted by a vote of 6-2-1.
Senator Loren Leman and Senator Al Adams cast yea votes.
Senator Pete Kelly was absent.
At Ease 10:00 AM / 1:43 PM
OFFICE OF THE GOVERNOR
There were no amendments submitted for the Office of the
Governor's budget.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
HSS #1: This amendment adds $34,500 general funds for
Alaska Center for the Blind - Sprinkler System. Senator Al
Adams moved for adoption. Co-Chair John Torgerson objected.
Senator Al Adams spoke to the motion, saying the request is
for a nonprofit organization's residential living and
training center. He explained that when the facility was
purchased and remodeled, the fire code did not require a
sprinkler system. The fire Marshall is now insisting a
system be installed, according to Senator Al Adams. The
funds will cover the cost of design, engineering, permits,
materials and labor, plus connection to the city water
system.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams cast the yea vote.
HSS #2: This amendment adds $600,000 general funds for the
Alano Club Land Purchase. Senator Al Adams moved for
adoption. Senator Lyda Green objected. Senator Al Adams
explained the club is a self-supported non-profit
organization that provides alcohol free and drug free
social and educational settings for people recovering from
addiction. He continued saying the club provides nearly two
dozen Alcoholics Anonymous meetings each week, a social
atmosphere for Friday and Saturday night dances and holiday
dinners and gifts for families in need.
Senator Al Adams pointed out that the Municipality of
Anchorage granted the organization $260,000 toward the
purchase of land that cost $350,000. He said the cost of
the requested 4,000 square foot building is approximately
$564,000 and the amount of funds needed for access,
landscaping, development and paving amounts to
approximately $200,000. The members of the Alano club are
asking for $600,000 from the state to help cover the costs.
Senator Dave Donley noted a member of the public was
present and he wished this person be allowed to come
forward to testify on this request.
BILL BREDESEN came to the table and told the Committee that
the Municipality of Anchorage is widening 15th Avenue,
where the current facility is located, and therefore the
organization is forced to relocate. As a realtor, he has
been searching unsuccessfully for an existing facility to
move into. He said the Municipality is unable to grant
enough money to cover to entire cost of new construction
and therefore, the request is being made to the state. He
pointed out that the Department of Law; judges through
court orders and the Veteran's Administration refer
individuals to the Alano program.
Senator Dave Donley told the Committee that he was aware of
the problem with the relocation of the club facility and
had attempted to assist earlier in the session, but was
told the organization had a policy to not accept
governmental assistance. He said he recently learned that
the organization has changed its policy because of the need
for funds for a new facility.
By a vote of 1-8 the amendment FAILED to be adopted.
Senator Al Adams cast the yea vote.
HSS #3: This amendment adds $7,000 for Alaska Center for
the Blind - Boiler Replacement. Senator Al Adams moved for
adoption. Co-Chair John Torgerson and Senator Lyda Green
objected. Senator Al Adams detailed the need to replace the
twenty-year old boiler at the facility.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams voted in favor.
HSS #4: This amendment adds $100,000 general funds for
Public Health Nursing Wide Area Network and Computer
Upgrade. Senator Al Adams moved for adoption. Senator Sean
Parnell objected. Senator Al Adams explained this request
would help the public health nurses have a reliable, cost
effective and secure rapid data exchange network to handle
a volume of sensitive patient care data across the State Of
Alaska. He stated that the existing modems are slow,
expensive and unreliable. He added that they must run 24
hours a day to maintain the best possible data exchange
with the outdated technology. He noted that the Alaska
Native Tribal Health Consortium pays the modem and toll
charges.
The amendment FAILED to be adopted by a vote of 1-7-1.
Senator Al Adams voted yea and Senator Loren Leman was
absent.
Tape: SFC - 99 #127, Side B 1:52PM
HSS #5: This amendment adds $100,000 general funds for
Family Services Field Safety, Office and Transportation
Equipment. Senator Al Adams moved for adoption. Senator
Sean Parnell objected. Senator Al Adams explained that the
Division of Family and Youth Services' social workers are
frequently exposed to potentially dangerous situations
while performing their duties of protecting the children of
the state. He stressed that the ability for workers to call
for assistance in the event of an emergency is critical. He
believed modern communications equipment including radios,
cellular and satellite telephones provide increased worker
safety and are cost-effective. He warned that if this
request is not funded, the department's ability to provide
this equipment will be seriously diminished and the safety
of state employees will be compromised.
Senator Al Adams noted that this request was only half of
the original amount asked for in the Governor's proposed
capital budget.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams cast the supporting vote.
DEPARTMENT OF LABOR
There were no amendments submitted for this department's
budget.
DEPARTMENT OF LAW
An amendment for this department's budget was considered
later in the meeting.
LEGISLATURE
There were no amendments submitted for the Legislature's
budget.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
MVA #1: This amendment appropriates $30,000 from the
general fund to the Air Force Association for an air show
at the Elmendorf Air Force Base celebration of the 18th
Anniversary of the Third Wing in June 1999. Senator Loren
Leman moved for adoption.
AT EASE 1:53 PM / 1:56PM
Senator Al Adams and Senator Sean Parnell objected to the
adoption of the amendment. Senator Al Adams admonished that
this request is for an air show while the Committee was
rejecting more critically needed items. He felt the
priorities were backwards. Co-Chair John Torgerson reminded
him that this amendment had not yet passed.
Senator Loren Leman stressed that the issue is more than
just granting $30,000 for an air show, it is an investment
in the state because the military is a big part of the
state's economy. He noted that the State had contributed to
the air show the previous year and that the air show is
largely supported by private and military contributions. He
added that over 10,000 people would participate in the air
show this year.
Senator Al Adams stated that the native organization he
works for in the interim would be happy to contribute $500
toward the air show. He suggested the organizers attempt to
gather more contributions from businesses. Senator Loren
Leman had asked the air show organizers to try harder for
private contributions.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Loren Leman voted in favor.
DEPARTMENT OF NATURAL RESOURCES
DNR #1: This amendment adds $200,000 general funds for Land
Status Geographic Information Systems to complete the
automation of the State's land status plats. Senator Sean
Parnell moved for adoption. Co-Chair John Torgerson
explained the original request was $300,000 for this
project and he was proposing to restore $200,000.
The amendment was ADOPTED without objection.
DNR #2: this amendment inserts $100,000 general funds for
Copper River Basin Best Interest Finding. Senator Randy
Phillips moved for adoption. Co-Chair John Torgerson
objected. Senator Randy Phillips noted this item was
originally in the operating budget but the Department of
Natural Resources Subcommittee decided to address in the
capital budget.
Senator Randy Phillips stated that there are two companies
interested in oil exploration in the Copper River Basin
area. He said this request would provide the funding to
gather data for the statutorily required best interest
finding. He added that this project would be a revenue-
generating item if and when gas is discovered.
Senator Al Adams supported the amendment, but wanted to
know about the revenue that would be generated. Senator
Randy Phillips responded that future revenues are unknown
but that if gas were discovered, the state would get
royalties.
Co-Chair John Torgerson said he would support the amendment
but admonished this item belonged in the operating budget.
There was no objection to the motion and the amendment was
ADOPTED.
DNR #3: This amendment appropriates as a grant, $120,000
general fund to the Alaska State Snowmobile Association for
snowmobile trail development. Senator Lyda Green moved for
adoption. Senator Al Adams objected. Senator Lyda Green
pointed out that legislation passed the last session
requires snowmobile registration. She said the intended use
for the registration fees is for trail development. She had
received information and comments complaining about the
oversight of the Division of Parks regarding trail
development. She concluded that there is more emphasis
placed on trail closures than on development of new trails.
Therefore, she wanted the funds to be paid directly to the
association to be used for the development of a trail
system.
Co-Chair John Torgerson wanted to know if this item was
already in the budget and if the amendment simply
reappropriates the funds. Senator Lyda Green answered it
was. Co-Chair John Torgerson noted the amendment then
results in a net zero change. Senator Dave Donley pointed
out that the original appropriation was on page 19 line 17
of the committee substitute.
Senator Lyda Green added that Committee members might have
heard from varying factions on which group should have
oversight of the funds. She said another amendment could
accomplish the same purpose. However, she wanted to make
sure the Division of Parks is directed to show an interest
in developing trails rather than spending the funds on
employees or other items.
Senator Loren Leman wanted to know if the overhead of the
Alaska State Snowmobile Association is as high as the
State's. Senator Lyda Green estimated the overhead for the
volunteer organization would be about $6000 compared to
over $50,000 for the division.
Senator Randy Phillips asked if there would need to be a
Request for Proposal (RFP) to give the funds to a specific
group. Co-Chair John Torgerson responded the grant line
appropriation is as specific as the legislation could get
although contractual language could be added later as a
letter of intent. Senator Randy Phillips indicated interest
in doing so.
Senator Al Adams did not think the funds should be granted
to one snowmachine organization that did not have full
membership participation from across the State,
particularly in rural Alaska. He suggested the revenue
generated from the snowmobile registration fees be granted
to the state park service for distribution to this
organization and also to others across the state. He also
suggested utilizing some of the trails program's federal
funding to match these state funds.
Senator Lyda Green quoted correspondence from Jim Stratton,
Director, Division of Parks written to Elizabeth Harron,
President, Alaska Quiet Rights Coalition. The letter stated
in part, "I share your disappointment that we were unable
to move forward with our proposed closure to snowmobiles in
Denali State Park, though the political climate would not
permit it to occur. These are not closures we speak loudly
about, for fear of legislative retribution. And we know
from our proposed snowmobile closure experience on Curry
and Kesugi ridges that retribution to be real. I am
managing the state's park system to provide natural quiet
as often as possible, given the current political climate."
(Copy of letter on file.)
Senator Al Adams realized the intent of the amendment due
to the content of the memo, was that the funds be dedicated
to snowmachine trail development. He recommended the next
amendment, DNR #4 instead, since it did not limit the
allocation of funds to one organization.
Senator Lyda Green asked if there was a way to amend the
amendment to give direction to allocate the funds to an
association rather than the Division of Parks.
Senator Sean Parnell said he had some correspondence from a
constituent, the president of the Alaska Snowmobile
Representatives Alliance stating, "We have worked closely
for the last several years with Jim Stratton and his
department to institute both a funding source and a
mechanism for programs to be handled fairly. The Alaska
State Snowmobile Association and the Alaska Snowmobile
Representatives Alliance in concert with the Alaska State
Parks and Outdoor Recreation have agreed to the entire
process. I would urge you to stay the course and allocate
the funding in the budget to State Parks and Outdoor
Recreation." Senator Sean Parnell concluded that at least
one of the affected snowmobile organizations believed the
Division of Parks was handling the matter fairly.
Therefore, though he was not involved in the negotiations,
he opposed the amendment.
Senator Randy Phillips suggested removing the name of the
organization from the amendment and adding a letter of
intent to RFP the funds through a competitive bid at a
later time. He understood Senator Lyda Green's concerns
and also understood the difficulties in trying to referee
competing groups.
It was determined that Senator Lyda Green would draft new
language to address the concerns of granting the funds to a
single organization.
Senator Lyda Green removed her motion to adopt the
amendment. There was no objection and the amendment was
HELD.
DNR #4: This amendment added intent language that states,
".the $120,000 in general funds being appropriated for
Snowmobile Trails Development be expended only on
snowmobile trail development and maintenance, safety
education programs and the Snowmobile Grant-In-Aid program.
The Legislature does not intend for any snowmobile point of
sale receipts to be spent on a Snowmobile Program
Coordinator." Senator Gary Wilken requested this amendment
be HELD pending the outcome of Senator Lyda Green's
revision to DNR #3.
DNR #5: This amendment inserts $85,000 general funds for
the Mat-Su Harvest Access. Senator Lyda Green moved for
adoption. Senator Dave Donley objected. Senator Lyda Green
explained that a small grant was given to the Division of
Forestry two years ago for summer volunteers and interns to
build a portion of a road to allow access to timberland
that is otherwise inaccessible. She pointed out that
numerous businesses were created with the addition of that
road. This allocation would be used to extend the road and
would result in a value many times the cost, according to
Senator Lyda Green, because of the method of construction
using volunteer labor. She said it would make more land
accessible for timber harvest.
Co-Chair John Torgerson stated that he would oppose the
amendment because of budget constraints.
Senator Randy Phillips understood that the road extension
project would generate an estimated $200,000 in general
funds.
The amendment FAILED to be adopted by a vote of 2-7.
Senator Lyda Green and Senator Randy Phillips voted in
favor.
DNR #6: This amendment adds a new section, and appropriates
$350,000 general funds for Reforestation Funding. Senator
Al Adams moved for adoption. Senator Sean Parnell objected.
Senator Al Adams stressed that in order to have a viable
timber industry, restoration is important in areas where
nature does not take care of itself. He said that this
project would affect 1,335 acres in Fairbanks, Delta, Tok,
Copper River and the Kenai areas. He said the money would
be used to contract for cone collection, storage, seedling
growing, planting and seeding.
By a vote of 7-2, the amendment FAILED to be adopted.
Senator Al Adams and Senator Loren Leman voted in favor.
DNR #7: This amendment doubles the amount of general funds
allocated to the Division of Parks to $400,000. Senator Al
Adams moved for adoption. Senator Dave Donley objected.
Senator Al Adams spoke of the state park system's $35
million backlog in deferred maintenance projects. He
explained that $56,000 is for restoration and repairs of
campgrounds, leveling trails, road repair and to replace
tables in the Kenai, Kodiak and Sitka parks. He continued
saying $50,000 would be used for trailhead and trail
repairs in Chugiak State Park, Tonsina Point Park and Point
Bridget and $70,000 would be used for roof repair,
communications and cabin repair in the Mat-Su, Kodiak and
Kenai areas. The remainder of the allocation, $24,000,
would be used for water and sewer upgrades in the Chena
River State Recreation Site and the Anchor River State
Recreation Areas plus toilet repairs in Seward.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams cast the yea vote.
DNR #8: This amendment shifts $48,000 general funds from
State Park Emergency Repairs to Perseverance Trail
Emergency Repairs and Transfer of Ownership of Repaired
Trail. Senator Al Adams moved for adoption. Senator Sean
Parnell and Senator Lyda Green objected. Senator Sean
Parnell asked Senator Al Adams to hold the amendment until
he could distribute a letter from the City and Borough of
Juneau to be considered with the amendment. The letter
gives a written commitment that the municipality will
assume ownership and maintenance responsibility for the
trail. (Copy on file.) Senator Sean Parnell stated he had
worked for several years to convey ownership of the trail
to the city and borough.
Senator Randy Phillips wanted the Department of Law to
review the letter to make sure the commitment is
constitutional.
Senator Sean Parnell pointed out that the amendment results
in a net zero change to the budget.
Senator Al Adams withdrew his motion to adopt the amendment
and without objection, it was HELD.
DNR #9: This amendment appropriates $300,000 general funds
for Land Status Geographic Info Systems. Senator Al Adams
stated that he would not offer due to action taken on DNR
AT EASE 2:20PM / 3:04 PM
DEPARTMENT OF PUBLIC SAFETY
DPS #1: This amendment deletes $500,000 general funds from
Aircraft Vessel Repair and Maintenance and $125,000 general
funds from Fish and Wildlife Protection - Statewide
Equipment and inserted $975,000 general funds into Repair,
Replacement and Maintenance of Vessels, Fish and Wildlife
Enforcement Vessels and Aircraft. Senator Sean Parnell
moved for adoption. Co-Chair John Torgerson explained the
combination of the two items and that there is a $350,000
increase.
There was no objection and the amendment was ADOPTED.
DPS #2: This amendment adds $650,000 other funds for
Village Police Officer Training and Equipment. Senator Sean
Parnell moved for adoption. Co-Chair John Torgerson
explained this amendment appropriates one-time federal
receipts for advanced training, uniforms and equipment for
village and tribal police officers at the request of the
Administration. He noted no general funds are involved.
Senator Dave Donley commented that the Subcommittee had no
opportunity to review what uses the federal funds are
really available for to determine the best allocation. He
thought it would be interesting to see how the funds are
actually used and how much flexibility is possible.
The amendment was ADOPTED without objection.
DPS #3: This amendment adds $8000 general funds for
Birchwood Squadron, Alaska Civil Air Patrol. The funding is
to remove two underground fuel storage tanks at the Civil
Air Patrol hanger at the Birchwood Airport. The Alaska
Civil Air Patrol has applied for, and received approval for
matching funds from the Department of Environmental
Conservation Storage Tank Assistance Program for $12,000.
This funding provides the required match. Senator Randy
Phillips moved for adoption. Co-Chair John Torgerson
objected.
Senator Randy Phillips corrected the description of the
amendment stating that the two underground fuel storage
tanks are 12,000 gallons in size. He said the tanks are
actually 4,000 gallons.
Co-Chair John Torgerson wanted to know why this did not
qualify for 470/response funds. Senator Randy Phillips and
Senator Al Adams requested Senator Rick Halford's staff to
address the matter.
BILL STOLTZ, staff to Senator Rick Halford, came to the
table. He told the Committee the Alaska Civil Air Patrol
had qualified for the Department of Environmental
Conservation grant for a sixty-percent match. He noted the
facility has been under a non-compliance order but had been
granted an extension. He could not answer the question on
why the project does not qualify for "470" funding, but he
stressed that this is a high priority item. Co-Chair John
Torgerson thought the project does qualify.
Senator Dave Donley wanted to amend the amendment to ensure
no general funds are used for the project.
Bill Stoltz pointed out that the facility is a
contamination site and the tank removal is required.
Senator Dave Donley noted the project would qualify for
"470" funding if the pending Storage Tank Assistance Fund
legislation (SB 128) passes because of enabling language to
allow similar projects to qualify.
Senator Al Adams asked to hear from the Department of
Environmental Conservation.
BARBARA FRANK, Director, Division of Administrative
Services, Department of Environmental Conservation said
this project could be eligible but the department would
then need to cost recover against the civil air patrol. She
explained that by statute the state is required to recover
the cost of tank removal from the responsible party.
Co-Chair John Torgerson wanted to know if, of the millions
of dollars spent on the storage tank clean-up program, the
department intends to seek recovery. Barbara Frank
clarified that the storage tank assistance fund is
different than the 470/response fund, which is proposed in
this discussion. Co-Chair John Torgerson then asked if the
storage tank fund can be used to fund this project. Barbara
Frank answered that it is eligible for the fund and would
not require reimbursement.
Co-Chair John Torgerson offered a friendly conceptual
amendment to change the funding source to Storage Tank
Assistance Funds.
Bill Stoltz commented that the army had already applied for
and received 60-percent funds from the storage tank
assistance fund. The amount requested in this amendment
would be used as matching funds required for the grant. He
noted that the civil air patrol functions with a small
operating budget and is staffed by volunteers.
The amendment was ADOPTED by a vote of 5-2-2. Senator Sean
Parnell and Senator John Torgerson cast nay votes and
Senator Pete Kelly and Senator Lyda Green were absent.
DPS #4: This amendment adds $537,500 general funds for Fish
and Wildlife Protection Enforcement Replacement Vessels.
Senator Al Adams moved for adoption. Senator Sean Parnell
objected. Senator Al Adams recounted testimony heard in
Committee regarding the need for a replacement vessel to be
stationed in Kodiak.
The amendment FAILED to be adopted by a vote of 1-6-2.
Senator Al Adams voted in favor and Senator Pete Kelly and
Senator Lyda Green were absent.
DPS #5: This amendment increases the amount of general
funds for Alaska State Trooper Statewide Equipment from
$175,000 to $350,000. Senator Al Adams moved for adoption.
Senator Sean Parnell objected. Senator Al Adams noted that
only half of the requested amount was included in the
committee substitute for this item. He said amendment would
fund the In-Car Video Systems program to install 23 cameras
in state trooper vehicles across the state. He stated that
the video technology has improved conviction rates for
traffic citations and other driving related matters. He
believed this project would save time and reduce costs
within the criminal justice system.
By a vote of 1-7-1, the amendment FAILED to be adopted.
Senator Al Adams cast the yea vote and Senator Lyda Green
was absent.
DPS #6: This amendment increases the Fish and Wildlife
Protection Enforcement Officer Equipment from $125,000 to
$250,000 general funds. Senator Al Adams moved for
adoption. Senator Sean Parnell objected. Senator Al Adams
said this amendment represents the other half of the
requested amount from the Governor's budget proposal. He
stated that the committee substitute reduction eliminates
half of the funding to replace skiffs, outboards,
snowmachines, ATV's and other equipment required for
Division of Fish and Wildlife Protection officers to
accomplish their enforcement duties.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams voted in favor of the motion.
DPS #7: This amendment doubles the amount appropriated from
the general fund to Aircraft Vessel Repair and Maintenance
to $1 million. Senator Al Adams did not offer due to action
taken on DPS #1.
DEPARTMENT OF REVENUE
REV #1: This amendment appropriates $2,315,300 Alaska
Housing Finance Corporation (AHFC) receipts to Senior
Citizen Housing Development Program; allocating $1,100,000
to Wasilla Senior Housing and $1,215,300 to Talkeetna
Senior Housing. Senator Lyda Green requested this be HELD.
REV #2: This amendment adds $500,000 general funds for AHFC
Riverbend Multi-Purpose Building. Senator Al Adams moved
for adoption. Senator Sean Parnell, Senator Randy Phillips
and Senator Dave Donley objected. Senator Al Adams
explained the appropriation would fund a multi-purpose
facility at the Riverbend affordable housing project in
Juneau. Currently, he said, the tenants of the housing
complex have no facility available for meetings or after-
school activities for resident children, and there is a
lack of adequate shop and storage space. He warned that if
the planned construction of this facility were not
undertaken this year, the cost would increase by
approximately $25,000.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams voted in favor of the motion.
REV #3: This amendment adds $3,917,000 general funds for
AHFC Mountain View Senior Units, Phase II. Senator Al Adams
moved for adoption. Senator Sean Parnell objected. Senator
Al Adams explained the housing remodel is required in order
to meet new federal guidelines relating to housing for
seniors and disabled persons, and if not completed, the
facility will be out of compliance with federal
regulations. He pointed out that a delay in construction
would result in a cost increase of approximately $195,000.
In addition, he warned, the housing complex would lose
$71,475 in rental income on the eight apartments already
vacated in preparation for the interior renovation.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams cast the yea vote.
REV #4: This amendment increases AHFC receipts funding for
AHFC Low Income Weatherization from $2,400,000 to
$5,400,000. Senator Al Adams moved for adoption. Co-Chair
John Torgerson objected. Senator Al Adams testified this
project improves the quality of life for low-income
residents and lowers their cost of living. He added that
the program provides jobs and boosts the economy of
Anchorage - home to many installation workers, contractors
and suppliers of building materials.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams voted in favor of the motion.
REV #5: This amendment adds $4,000,000 AHFC receipts for
Senior Citizens Housing Development. Senator Al Adams moved
for adoption. Senator Sean Parnell objected. Senator Al
Adams believed the housing development grant program should
be continued, but noted all the funds were eliminated in
the committee substitute. He listed the amount of money
lost by various groups: the Elders Action Group in Naknek,
$675,000; Wasilla Area Seniors, $1.1 million; Upper
Susitina Seniors in Talkeetna, $1.2 million; Residents
Senior Services in Ketchikan, $156,000; Homer Seniors,
$754,000; and the AHFC Pre-Development Grants Program,
$99,400. He thought the impact of losing funds for this
program would result in displacement of senior citizens
from their communities due to inadequate housing. He
believed the state should assist its seniors no matter
where they lived.
The amendment FAILED to be adopted by a vote of 2-7.
Senator Al Adams and Senator Lyda Green cast yea votes.
REV #6: This amendment adds $6,000,000 AHFC receipts for
AHFC Supplemental Housing Development Funds. Senator Al
Adams moved for adoption. Co-Chair John Torgerson objected.
Senator Al Adams referred to testimony heard earlier in the
Committee stating this funding will leverage approximately
$48 million federal Housing and Urban Development funds. He
explained the combined funding will complete about 6500
homes throughout the state and will benefit the state's
urban economy because over fifty-percent of the money will
be used for the purchase of supplies and expertise from
urban areas.
Tape: SFC - 99 #128, Side A 3:25PM
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams voted in favor of the motion.
AT EASE 3:25PM / 3:30PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
DOT #1: This amendment appropriates $11,500,000
international airport revenue funds for Anchorage
International Airport Terminal Baggage System
Upgrade/Replacement. Senator Sean Parnell moved for
adoption. Co-Chair John Torgerson explained this
appropriation comes from airport funds and has a net zero
effect on general funds. He said the air carriers had voted
to assess themselves to generate revenues for this project.
Senator Randy Phillips wanted to hear from the department
whether the air carriers intend to absorb the cost of this
project or if they intend to pass the cost along to their
passengers.
KURT PARKAN, Deputy Commissioner, Department of
Transportation and Public Utilities testified that the
revenues would be an assessment by the airlines and imposed
through landing fees. He could not speak the matter of
whether the costs would be passed along to passengers. He
stressed that the airlines will pay for the project rather
than the State.
Without objection, the amendment was ADOPTED.
DOT #2: This amendment specifies that $150,000 of the
$1,028,000 general funds appropriated to Facilities
Deferred Maintenance and Critical Repairs is to be
allocated to Closure of State-Maintained Portion of
Harborview Facility. Senator Sean Parnell moved for
adoption then removed his motion without objection. Co-
Chair John Torgerson WITHDREW this amendment to defer to
DOT #11.
DOT #3: This amendment shifts funding to the National
Highway System Program (NHS) Construction allocating
$24,500,000 to Anchorage International Airport Terminal
Expansion Landslide Access Improvements. Senator Sean
Parnell moved for adoption. Co-Chair John Torgerson
explained this moves a NHS project from the Airport
Improvement Program. He claimed this allocation was the
original intent for the funds but that an error was made in
drafting the committee substitute. He stated this change
results in a zero net affect to the general fund.
Kurt Parkan addressed the matter saying this amendment is a
technical amendment. The component was originally located
in the Airport Improvement Program portion of the budget as
a national highway project and this amendment restores the
location of the funds, he stated.
The amendment was ADOPTED without objection.
DOT #4: This amendment specifically allocates the following
federal and general funds to certain bridge projects under
the NHS Bridge Replacement Program: Copper River Highway,
Million Dollar Bridge #0206, $10,500,000; Glenn Highway, MP
105 Caribou Creek Bridge Replacement, $14,000,000; and
Sterling Highway, Soldotna Urban and Kenai River Bridge
for adoption. He stated that the amendment to the State
Transportation Improvement Program (STIP) is offered on the
recommendation of the Capital Budget Subcommittee. He
explained that there is $100 million in federal
discretionary funds available nationwide for bridge
projects and that the Department of Transportation and
Public Utilities plans to apply for grants to construct
three bridges. While the department did not anticipate
receiving a grant for all three bridges, Senator Dave
Donley remarked that they did expect to receive at least
one and maybe two. Therefore, the purpose of this funding
is to give legislative approval for matching funds for
whichever projects did receive a federal grant. He
preferred legislative oversight and authorization rather
than allowing the department to arbitrarily remove funding
from another project, which was the department's original
intent.
Senator Al Adams did not recall a recommendation on this
matter during the Subcommittee process and suggested the
discussion may have occurred behind closed doors. He asked
if the department supported his theory that allocating
specific projects in this fashion will result in
construction delays.
Kurt Parkan replied that the potential for project delays
is present when projects are categorized into multiple
appropriations. He stressed that Alaska will be competing
for the bridge construction grants and could expect to
receive at least one, but possibly more. However, he
cautioned that there is a 20-percent state match
requirement and the appropriation in this amendment only
contains enough funds to match one grant. If more than one
grant is approved, there will not be enough general funds
to cover the match requirement and he warned that this is
where the delays will occur.
Senator Dave Donley stated that he didn't feel strongly on
this matter, but noted that it was discussed during a
Subcommittee meeting when Senator Al Adams was out of town.
Senator Dave Donley wanted to give the full Committee an
opportunity to review the merits of the request. He
stressed the ramifications for not adopting the amendment
is that $14 million designated for other projects could
"disappear" to be used as matching funds for the bridge
grants and the legislature would have no say in the matter.
Kurt Parkan answered Senator Lyda Green's question that the
grants would all be awarded in one year rather than over
several years, and would cover the construction portion of
the projects that need to be completed in one phase.
Senator Lyda Green noted no general fund match for the
bridge projects is provided in the committee substitute.
Senator Dave Donley responded saying the committee
substitute contains $3.5 million not designated for
specific projects. He explained that the department is
speculating on the possibility of receiving one or more
grants. If one grant is awarded, the committee substitute
contains adequate matching funds, according to Senator Dave
Donley. However, if more than one grant is awarded, the
department would need to draw matching funds from the STIP
and that would affect other projects. His intention is to
remove all three bridge projects from the STIP so the STIP
funds cannot be raided. He stressed that there are
advantages and disadvantages of either funding method and
that this is a policy decision for the Committee to make.
Senator Randy Phillips asked about the department's
priority system that determines which project will be
addressed if more than one grant is awarded. Kurt Parkan
answered that the federal government would make the
priority determinations. He spoke of the new discretionary
system under the TEA-21 (federal transportation plan) where
states can apply for funding for various projects. Because
the department has had no experience with the new system,
Kurt Parkan explained the plan is to submit several
projects in hopes of gaining at least one approval. He
stressed that the department wants to capture as much
federal funding as possible and therefore applies for more
than it expects to receive. Therefore, he could not say how
the federal government would prioritize the three projects
or what criteria would be applied. He only knew that there
is a set amount of funds available nationwide for the
discretionary bridge project.
Senator Lyda Green asked if the grants required a 20-
percent state match rather than the usual ten-percent for
most transportation projects. Kurt Parkan said that is
correct and is because the projects are in addition to the
regular projects.
Senator Lyda Green calculated the amount requested in the
amendment was inadequate to provide the match for all three
bridge projects. Kurt Parkan clarified that the department
did not anticipate receiving all three grants and that the
amount requested in the amendment would cover one project.
Kurt Parkan then answered Co-Chair John Torgerson's
question that if the bill were not amended, the projects
would remain in the STIP program, which contains adequate
funds for two projects.
Co-Chair John Torgerson stated that he did not approve of
the way the department implemented the intent of the
legislature with regard to the STIP. However, he felt that
the committee substitute is better than the amendment.
Co-Chair John Torgerson asked what would happen if none of
the bridge project grants were awarded. Kurt Parkan
responded the department would spend the funds set aside in
this amendment.
Senator Dave Donley removed his motion without objection
and WITHDREW the amendment.
DOT #5: This amendment eliminates the appropriation
distinctions for Trials and Recreational Access for Alaska
(TRAAK) Category A: $12,528,663, Category B: $1,005,826 and
Category C: $8,392,877, combines the funding into a single
TRAAK appropriation of $22,175,799, and specifies certain
projects and amounts to be spent on each project. Senator
Dave Donley moved for adoption. Senator Al Adams objected
because he wanted to know what projects would be
eliminated.
Senator Dave Donley said one project, $100,000 federal
receipts and $9,926 general funds for the Copper River Bike
Path, is deleted from the TRAACK at the request of the
Governor. He noted several projects are added back into the
budget: Church Road Bike Path, Petersburg/Mitkof Highway
Coastal Path and Wrangell Airport Loop Phase I.
Senator Al Adams asked the department about the project
breakdown and if the amendment will hamper any projects.
Kurt Parkan replied the amendment to remove the TRAAK
categories is an improvement over the original draft
submitted by the Subcommittee. The department wished the
Copper River trail had not been removed. He noted that the
department's original request contained a "collapsed"
matching fund from which projects could draw that would
minimize the amount of general funds required. By
compartmentalizing the projects, the general fund match
requirement is increased, he cautioned. He detailed the
past Capital Project Clean-up Effort and attributed the
difficulties in getting adequate matching funds to the fact
that the matching funds were already attached to specific
projects. He summarized that compartmentalizing the
projects makes it more difficult for the department to
capture federal dollars and is a less efficient use of
general funds. He added that this argument also applies to
other amendments coming before the Committee.
Senator Randy Phillips wanted to know why Juneau is
receiving $3.5 million for trails and why Anchorage is
receiving less than that amount. He wanted to know the
criteria the department uses in selecting projects.
Kurt Parkan explained the criteria compares projects
against others across the state and that while Juneau
receives significant funds this year, Anchorage may get
more next year.
Senator Randy Phillips commented that he believed Juneau is
receiving a disproportionate amount of funding. Kurt Parkan
responded that this is just a snapshot in time and over the
course of several years, the TRAAK funds are allocated
fairly across the state. Senator Randy Phillips requested a
history of the funding.
Senator Dave Donley addressed Senator Randy Phillips's
concerns saying the department had adopted informal
criteria and internal policies to set priorities. The
Administrative Procedures Act states that the allocation of
resources must be done by regulation so he speculated the
department's practices could be illegal under the Supreme
Court's interpretation of the state statute. In spite of
this, he said, the department has refused to adopt
regulations to replace the current policy. He said the
legislature is attempting to make reforms in this area and
he is disappointed the department has not addressed the
matter already. Senator Dave Donley complained that the
current criteria did not weigh a project based on the
volume of use.
Senator Randy Phillips wanted to hold the amendment until a
detailed funding history of TRAAK is provided to the
Committee. TOM BRIGHAM, Director, Division of Statewide
Planning, Department of Transportation and Public Utilities
replied the information will be prepared for the Committee.
Senator Dave Donley pointed out that there is funding for
TRAAK projects under the Anchorage Metropolitan Area
Transportation Study (AMATS) program. He said the reason
the US Forest Service Portage Valley Trail System is
included in this amendment is because it is outside the
Municipality of Anchorage.
Senator Dave Donley withdrew his motion without objection
and the amendment was HELD.
DOT #6: This amendment breaks down the $49,912,059
appropriation for AMATS into individual projects and
assigns specific funding amounts for each. Senator Dave
Donley WITHDREW this amendment saying that DOT #10 will be
offered in its place.
DOT #7: This amendment eliminates the appropriation
distinctions for Community Transportation Program (CTP)
Category A: $69,207,533, Category B: $23,845,880 and
Category C: $2,717,694, combines the funding into a single
CTP appropriation of $95,723,564, and specifies certain
projects and amounts to be spent on each. Senator Dave
Donley moved for adoption. Senator Al Adams objected.
Senator Dave Donley noted one project is deleted from the
Governor's list of requested projects, the
Iliamna/Nondalton Road Completion Project. He also noted
the addition of $1,395,000 for Sitka Harbor Way
Reconstruction/O'Connell Bridge-Harbor Drive project. He
explained this project was included in the STIP until a
month ago when it was deleted despite the Subcommittee's
recommendation to maintain it.
Senator Al Adams referred to the elimination of the
Iliamna/Nondalton Highway project and pointed out that the
project is "ready to go". He wondered why a different
project is not eliminated instead and stated he would be
offering DOT #9 to address the matter. He argued that the
project should not be taken away from rural Alaska.
Senator Randy Phillips wanted to know if this amendment
would build any new roads or just provide improvements on
existing roads. Senator Dave Donley explained the CTP
component of the STIP includes both new roads and
rehabilitation of old roads in a combination of traffic
improvements and revisions. The new roads include one to
St. Mary's Airport and a new sanitation road in Venati.
Senator Al Adams repeated his concern with the change of
appropriations. He wanted the department to identify which
projects are eliminated by this amendment and how this
amendment affects existing projects. Kurt Parkan concurred
with Senator Dave Donley that the Iliamna/Nondalton Highway
is the only project eliminated. Kurt Parkan stated the
department feels this highway is a good project that
connects two communities. He noted that the project scored
high on the priority determination.
Co-Chair John Torgerson asked why the Sitka Harbor Way
project was dropped off the STIP. Kurt Parkan did not know
specifically why but stated he would find out and report
back to the Committee.
The amendment was ADOPTED by a vote of 7-1-1. Senator Al
Adams voted against the motion and Senator Pete Kelly was
absent.
DOT #8: This amendment increases the general funds for Nome
Port and Harbor Improvements from $1,231,000 to $2,462,000.
Senator Al Adams moved for adoption. Senator Dave Donley
objected. Senator Al Adams spoke to the amendment saying it
restores the funds to the original request made by the
Governor. He claimed that the Subcommittee took the money
allocated to this project and instead appropriated it to
the Port of Anchorage. The City of Nome already expended $1
million in matching funds for this project and is prepared
to provide an additional $4.8 million for completion of the
entire project, he stressed. Because of the city's efforts,
he thought the money should be returned to the project.
Senator Dave Donley reminded Senator Al Adams that the
appropriation in the committee substitute was part of the
Subcommittee report that was adopted during a public
meeting.
Senator Al Adams countered that he still didn't think it
was right to take funding from a rural project to give to
an urban project.
Senator Loren Leman commented that the Municipality of
Anchorage is contributing greatly to the match requirement
for the Port of Anchorage project. He added that 85
percent of the cargo coming into the state arrives at the
Port of Anchorage and is then spread out across the state,
including rural Alaska. Therefore, he concluded that
dredging the Knik Arm Schoal has a substantial effect on
the cost of goods coming into Alaska.
Senator Al Adams stated that these were two good projects
and neither one should be compromised. He pointed out that
the Port of Nome project would encourage economic
development in the mining industry for rural Alaska.
In response to Senator Randy Phillips' inquiry, Kurt Parkan
explained the department merely forwarded the port project
requests from communities to the legislature for allocation
of matching funds. He noted the Municipality of Anchorage
request came in late and missed the deadline for inclusion
in the Governor's budget proposal. He stated that the
department has supported this project in the past and
continues to support it.
Senator Randy Phillips wanted to know if the projects are
compared against each other or simply considered as they
are received. Kurt Parkan replied that the department
makes no modifications to the requests.
Senator Dave Donley pointed out the Nome project is funded
in the committee substitute for more than the Anchorage
project.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams voted in favor.
DOT #9: This amendment adds $4,845,000 federal funds for
Iliamna/Nondalton Highway. Senator Al Adams moved for
adoption. Senator Sean Parnell objected. Senator Al Adams
explained this is a top project of the Senator from Bethel,
Lyman Hoffman. Senator Al Adams repeated his earlier
statement that the project is ready to begin.
Senator Randy Phillips wanted to know why the project was
dropped from the Governor's budget request. Senator Dave
Donley answered the removal was the recommendation of the
Subcommittee. Senator Randy Phillips asked if the project
only involves federal funds. Senator Dave Donley answered
that the funding is a combination that includes state
matching funds. Kurt Parkan explained this project
requires the usual 90-10 split with the federal government
providing 90 percent of the funds and the state providing
ten-percent in matching funds. Senator Randy Phillips
calculated that the amendment would require $485,000
general funds.
Kurt Parkan commented that this project could be considered
a new road. Co-Chair John Torgerson noted a bridge is also
included in the project.
Senator Dave Donley noted the Subcommittee heard testimony
that the number of vehicles available to use the highway is
only thirteen. He added that those vehicle owners pay no
registration fees to assist in the cost of road
construction or maintenance. Co-Chair John Torgerson said
his office had received phone calls informing him that
there are more than thirteen vehicles that would use the
highway. Kurt Parkan stated the highway would serve
approximately 500 residents.
Senator Randy Phillips wanted to know if the purpose of the
highway is to connect two communities, access mining
development or perhaps serve a different purpose. Kurt
Parkan responded saying there are several benefits to the
connection of the two communities including consolidation
of emergency services and sharing one airport and landfill.
Senator Al Adams commented that this is an overland access
route to help the economy of the two communities and the
Lake and Peninsula Borough as a whole. He added that the
highway will help reduce Department of Public Safety's
response time, reduce air travel and would also prevent
accidents caused by snowmachines breaking through ice.
Educational and medical services would also benefit, he
stated.
Kurt Parkan elaborated saying that with the completion of
the highway, the department would probably concentrate
improvement efforts on only one of the two airports in the
two communities, which would benefit the state in the long-
term.
Senator Randy Phillips wanted to know the savings for
combining all the services. Kurt Parkan did not know but
thought the Borough could determine an amount.
Senator Gary Wilken wanted to know if this would allow the
consolidation of two schools. Kurt Parkan said that is
conceivable and possible.
Senator Al Adams noted the highway could improve the
transportation of supplies and of students. It could
enhance educational opportunities, allow for staff
reductions and provide competition between two schools, he
stated.
Senator Randy Phillips wanted the Borough to provide
information showing the cost savings to the Committee by
the next day. Kurt Parkan said he would contact the
Borough.
Senator Lyda Green appreciated Senator Randy Phillips's
interest, but noted if cost saving information is required
on this project, it should be required for all projects.
The amendment FAILED to be adopted by a vote of 2-7.
Senator Al Adams and Senator Loren Leman voted in favor.
Tape: SFC - 99 #128, Side B 4:17 PM
AT EASE 4:17PM / 4:17PM
DOT #10: This amendment breaks the AMATS appropriation of
$49,912,059 into specific projects and states the amount to
be spent on each. Senator Dave Donley moved for adoption.
Senator Al Adams moved to amend the amendment. Senator Sean
Parnell objected. The amendment to DOT #10 deletes $655,800
federal highway funds from Anchorage Area Contingency for
Planning Construction Shortfalls and Road/Intersection
Improvements and $1,364,700 federal highway funds from
Dowling Road-Raspberry to Lake Otis Parkway. The funds are
then inserted into the Iliamna/Nondalton Highway project.
Senator Al Adams spoke to the amendment changes noting the
two deleted projects have already been funded in the
previous year's budget.
Senator Dave Donley explained the projects were placed in
last year's budget, but that the Commissioner of the
Department of Transportation and Public Utilities failed to
submit them to the AMATS committee for consideration and
the funds were never utilized. That was why the projects
are seen here with no general fund match, according to
Senator Dave Donley. He referred to Commissioner Perkins'
testimony before the Committee in January stating that
adjustments must be made within the existing STIP
allocation to accommodate these two projects if they were
to be included. Senator Dave Donley remarked that DOT #10
provides the accommodation.
Senator Al Adams argued the funds granted last year for the
projects still remains and did not need to be
reappropriated. Senator Dave Donley commented that argument
was true for the Victor Road project and that the
Commissioner refused to incorporate the project into the
STIP.
The amendment to the amendment FAILED by a vote of 1-8.
Senator Al Adams cast the yea vote.
Senator Al Adams stated he would oppose the amendment
citing it as a double appropriation.
Co-Chair John Torgerson noted the department's
recommendation to handle the funding of the two projects in
this manner.
The amendment was ADOPTED by a vote of 8-1. Senator Al
Adams voted against the motion.
DOT #11: This amendment adds $150,000 general funds to
Facilities Deferred Maintenance and Critical Repairs
allocating it for Closure of State-Maintained Portion of
Harborview Facility. Senator Sean Parnell moved for
adoption. Co-Chair John Torgerson explained that this
amendment replaces DOT #1 and provides funding for closure
of the state's portion of the Harborview facility in Valdez
and seal it off from the community-maintained hospital. The
funds also provide for the purchase of a generator to allow
the two portions of the facility to operate independent of
each other.
Senator Al Adams moved to amend DOT #11. Senator Sean
Parnell objected. The amendment to the amendment inserts
$400,000 AHFC funds for Maniilaq Senior Center. Senator Al
Adams favored the original amendment but wanted to improve
it by adding funds for foundation repair of this senior
center. He noted the additional funds are not general funds
and that the intent is to turn the state-owned facility
over to a non-profit organization after repairs are
completed.
The motion to amend the amendment FAILED by a vote of 1-8.
Senator Al Adams voted in favor of the motion.
Co-Chair John Torgerson spoke to the state's $232,000
annual maintenance cost for the Harborview facility and the
attempts to sell it to the City of Valdez. In the operating
budget, he stated that he denied the funding request for
on-going maintenance and asked the department to provide an
estimate of the cost to close the facility. Therefore, this
amendment is in lieu of the on-going operating expense, he
said.
The amendment was ADOPTED without objection.
DOT #12: This amendment adds $3,500,000 federal funds to
the CTP and allocates it to Kenai Peninsula Roads. Senator
Gary Wilken told the Committee of a recent Federal Highway
Administration creation of a Public Lands Discretionary
project on the Kenai Peninsula that provides 100-percent
federal funding. He moved for adoption of the amendment.
Senator Sean Parnell asked the department to confirm that
this project requires no state match. Kurt Parkan
confirmed.
Senator Loren Leman asked where this project is located.
Kurt Parkan replied that there are several projects,
including Homer East End Road. Tom Brigham elaborated,
saying the principle project is the East End Road and that
if funds are left over, additional projects will be
undertaken. He said the regional branch of the department
is in the process of identifying which projects would be
addressed with South Kenai as the target area.
Senator Randy Phillips asked about this program. Kurt
Parkan spoke about requests received for projects on
adjoining state and federal public lands, including state
parks. He said most requests come from a community,
however, the department itself identified the East End Road
project. Co-Chair John Torgerson noted the federal funds
available for the program are limited.
There was no objection and the amendment was ADOPTED.
DOT #13: (This amendment was introduced and acted upon
later in the meeting.)
DOT #14: (This amendment was introduced and acted upon
later in the meeting.)
DOT #15: (This amendment was introduced and acted upon
later in the meeting.)
UNIVERSITY OF ALASKA
UNV #1: This amendment appropriates $800,000 university
receipts for Juneau PE/Recreational Facility. Co-Chair John
Torgerson said he would HOLD this amendment.
UNV #2: This amendment adds $450,000 general funds for
Small Business Development Program and "Buy Alaska"
Program. Senator Loren Leman said he would NOT OFFER this
amendment, deferring to UNV #3, of the same topic.
UNV #3: This amendment adds $450,000 general funds for the
Small Business Development Program. Senator Lyda Green
moved for adoption. Co-Chair John Torgerson stated he
supports the amendment, believing the program should be
funded because of the impact it has on the state. Senator
Lyda Green pointed out that this item was omitted from the
original Governor's budget.
Without objection, the amendment was ADOPTED.
UNV #4: This amendment adds $7 million general funds for
UAF-Tanana Valley College/Hutchison Career Center
Renovation. Senator Gary Wilken moved for adoption. Co-
Chair John Torgerson and Senator Lyda Green objected.
Senator Gary Wilken explained the funds requested are in
addition to the Governor's original request of $3 million.
Senator Gary Wilken noted that this appropriation also pays
for $1,480,000 in deferred maintenance required to complete
the project. He added that the Fairbanks North Star Borough
plans to match the appropriation with $14 million. He
stressed that the facility is a unique and innovative
concept in grades K-14 education and has support from
Interior educators and administrators.
Senator Dave Donley remarked that this was one of the most
painful reductions that had to be made this year. He
complemented the community of Fairbanks for its support of
this project. He noted that no other school projects are
included in the budget this year therefore no community is
singled out. He hoped funding could be included in the
capital budget next year. He pointed out a large influx of
funds for the university through AHFC bonds in the prior
year.
Co-Chair John Torgerson agreed with Senator Dave Donley
that it is hard to oppose funding for this project.
Senator Gary Wilken applauded the community for their
efforts and hoped other communities would use this
situation as a model. He was convinced the project will go
forward, if somewhat delayed.
The amendment FAILED to be adopted by a vote of 2-6-1.
Senator Gary Wilken and Senator Pete Kelly voted in favor
and Senator Al Adams was absent.
UNV #5: This Amendment adds $3 million general funds for
UAF-Tanana Valley College/Hutchison Career Center
Renovation. Senator Gary Wilken moved for adoption. Senator
Sean Parnell objected. Senator Gary Wilken emphasized that
this amount is necessary to allow the passage of the local
bond issue in the fall election. He noted this is the
amount originally requested in the Governor's budget.
By a vote of 3-5-1, the amendment FAILED to be adopted.
Senator Gary Wilken, Senator Pete Kelly and Senator Loren
Leman cast yea votes and Senator Al Adams was absent.
AT EASE 4:38PM / 4:38PM
UNV #6: This amendment inserts $30,470,000 general funds
for UAA Consortium Library. Senator Al Adams moved for
adoption. Senator Lyda Green and Co-Chair John Torgerson
objected. Senator Al Adams spoke to the motion, saying the
funds are to construct this library. He pointed out that
$10 million was appropriated the prior year to fund site
design and preparation. The $30 million will complete the
project, he noted.
Senator Al Adams stressed that failure to fund this request
would allow the previous year's efforts go to waste. He
suggested there are many financial ways the project can be
addressed, including a bond issuance.
Senator Sean Parnell stated he fully supported the
University of Alaska-Anchorage, had approved of past
allocations, and that he will support this project in the
future when the budget gap is not as big. He said he could
not support this request when the smaller Hutchison project
was not being funded.
Senator Al Adams suggested that an equitable bond package
could be made in the Committee.
Senator Loren Leman supported the project as one of the
first signers of a petition calling for a new library and
he also co-sponsored enabling legislation. However, he felt
this is not the appropriate mechanism to address the
funding. He appreciated that Senator Al Adams recognized
that some of the core Anchorage projects supported all of
Alaska.
Senator Al Adams stressed rural Alaskans supported
Anchorage pointing out that a healthy rural Alaska makes
for a healthy urban Alaska.
Senator Gary Wilken hoped the Committee would consider that
an assessment was being done to identify the most important
university facilities. He stated that the facilities are
being designed to better accommodate many needs and that
libraries of the future won't need to be as large because
of the availability of information on computers. He wanted
to ensure that the entire $30 million request is truly
necessary.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Al Adams cast the favoring vote.
UNV #7: This amendment inserts $800,000 university receipts
for University of Alaska Southeast, Juneau PE/Recreation
Facility. Senator Al Adams moved for adoption. Co-Chair
John Torgerson objected. Senator Al Adams noted a technical
correction of changing "general funds" to "university
receipts". He pointed out that this amendment authorizes
the university to receive university receipts to construct
a physical education and recreation facility. He stressed
that currently the Juneau campus has no recreation
facility.
Senator Randy Phillips wanted to know if this amendment is
similar to UNV #1. Co-Chair John Torgerson replied that it
is identical and that he recommends the committee hold this
amendment to wait for UNV #1 to be re-offered, or simply
vote it down.
Senator Al Adams WITHDREW his motion to defer to UNV #1.
UNV #8: This amendment adds $450,000 general funds for the
Small Business Development Center and was NOT OFFERED due
to action taken on UNV #3.
MUNICIPAL/ UNINCORPORATED GRANTS
MUNI #1: This is a two-part amendment. The first part
addresses Municipal Capital Project Matching Grants,
shifting $25,000 other funds from Mountain Village-
Community Facilities and Equipment to Mountain Village Teen
Center Renovation and Equipment Purchase. The second part
of the amendment addresses Municipal and Unincorporated
Capital Project Matching Grants-Title Changes. The title
changes are Chefornak Community Building Phase II to
Chefornak Generator Purchase; Juneau Fire Station Repairs
Phase IV to Juneau Building Maintenance: Deferred Building
Maintenance and Koliganek Emergency Completion VPSO
Building to Koliganek Equipment Repairs. Senator Sean
Parnell moved for adoption. Co-Chair John Torgerson
explained that the amendment appropriates the municipal
grant funds in the Mountain Village account to a particular
project and also provides for requested project changes to
three grantees.
Senator Randy Phillips moved to divide the question.
Without objection, the amendment was divided into MUNI #1A,
Municipal Capital Project Matching Grants and MUNI #1B,
Municipal and Unincorporated Capital Project Matching
Grants-Title Changes.
MUNI #1A: Senator Randy Phillips objected to its adoption.
Co-Chair John Torgerson noted that the funds have a net
zero affect on the general fund. He explained that
communities are allowed to accrue $25,000 a year for five
years for a particular project and at that point, the funds
must be appropriated to that project, which is the case
here. He stated that this amendment deletes the funds from
the Front section of the committee substitute and inserts
them into the Back section to appropriate them to a
project.
The amendment was ADOPTED by a vote of 8-1. Senator Randy
Phillips cast the nay vote.
MUNI #1B was ADOPTED without objection or further
discussion.
MUNI #2: This amendment reduces the capital matching grant
for Shungnak from $50,000 to $25,000. Senator Al Adams
moved for adoption. Co-Chair John Torgerson objected for
explanation. Senator Al Adams explained the community
wishes to save its capital matching grant allocations for a
larger project but had encountered a sewer system emergency
and needed some funds to address repairs. Only $25,000 was
needed for the repairs and the amendment returns the
balance to the community's account. There is a net zero
affect on the budget.
There was no objection and the amendment was ADOPTED.
SUPPLEMENTAL
SUPP #1: In this amendment, front section language is added
to read, ".Fish and Game. The appropriation made by chapter
137, SLA 1998, page 32, line 20 (Administration and
Support) is amended by adjusting the "Other Funds" as
follows: Federal Receipts, $60,000, Inter-Agency Receipts,
($60,000)".
Senator Sean Parnell moved for adoption. Co-Chair John
Torgerson said the amendment is submitted at the request of
the Department of Fish and Game. He explained that in FY99
the department had lower expenditures of inter-agency
receipts and higher expenditures of federal funds than
estimated. He stressed this amendment is a net zero
adjustment to compensate for the actual expenditures and
does not increase the department's spending authority.
Without objection, the amendment was ADOPTED.
FRONT SECTION
FRONT #1: This amendment extends the lapse date of
appropriations made to the Department of Natural Resources
in 1998 for Appraisal Of Public School Trust Fund Lands.
Senator Sean Parnell moved for adoption. Co-Chair John
Torgerson told the Committee that the original appraisal
was challenged in court without success and this extension
will allow the department to proceed with the appraisals.
He added that this amendment will have a net zero impact on
the budget.
The amendment was ADOPTED without objection.
FRONT #2: This amendment replaces $15,000,000 general funds
with the same amount of unappropriated AHFC receipts for
Capital Project Matching Grant Programs. Senator Sean
Parnell moved for adoption. Senator Al Adams objected. He
wanted to hear from AHFC about the impact this amendment
would have on the AHFC budget.
JOHN BITTNEY, Legislative Liaison, Alaska Housing Finance
Corporation, Department of Revenue came to the table and
said the Corporation was hoping for some consideration to
the reductions made to the AHFC capital budget. With the
remaining funds from the AHFC dividends, he requested they
be used for the outstanding capital projects. He also
wanted to prevent the dividend from being overspent.
Senator Al Adams clarified that the Corporation wants to
see the AHFC restored funds used for projects they
requested. John Bittney agreed, noting that the preferred
projects are those that will benefit their residents and
also will protect the high investment rating of the bonds.
The amendment was ADOPTED by a vote of 7-2. Senator Al
Adams and Senator Lyda Green voted against the motion.
FRONT #3: This amendment appropriates $100,000 general
funds to the Department of Health and Social Services for
payment as a grant to the Hope Community Resources for
improvements, maintenance and repairs. Senator Dave Donley
sponsored this amendment and announced he would NOT OFFER
it for consideration.
FRONT #4: This amendment appropriates a total of $566,000
federal funds to the Department of Natural Resources and
the Department of Fish and Game for specific projects.
Senator Loren Leman moved for adoption. Co-Chair John
Torgerson objected.
Senator Loren Leman WITHDREW his motion to await action on
FRONT #9.
FRONT #5: This amendment appropriates $250,000 general
funds to the Department of Community and Regional Affairs
for payment as a grant to Arctic Power for education
efforts to open the coastal plain of the Arctic National
Wildlife Refuge for oil and gas exploration and
development. Senator Loren Leman moved for adoption. Co-
Chair John Torgerson stated that he supported the
amendment.
Without objection, the amendment was ADOPTED.
FRONT #6: This amendment appropriates $200,000 of statutory
designated program receipts to the Department of Health and
Social Services for construction of a regional
youth/residential diagnostic treatment facility in
Ketchikan. Senator Dave Donley moved for adoption. Co-Chair
John Torgerson explained he sponsored the amendment at the
request of Senator Robin Taylor. Co-Chair John Torgerson
referred to an attached memo explaining the funds were
given to the City of Ketchikan who wants to transfer them
to the Department of Health and Social Services for
construction of the facility. This amendment allows the
appropriation and Co-Chair John Torgerson noted there is no
general fund impact.
The amendment was ADOPTED without objection.
FRONT #7: This amendment appropriates $900,000 general
funds to the Department of Administration for payment as a
grant to the Matanuska-Susitna Borough for construction of
public infrastructure at Hatcher Pass. Senator Lyda Green
moved for adoption. Co-Chair John Torgerson and Senator Al
Adams objected. Senator Lyda Green spoke to the motion
saying the requested $900,000 will secure $8 million in
private sector investments, $2 million from the Matanuska-
Susitna Borough and over $2 million from federal sources.
Senator Al Adams stated that his concern was related to
unresolved legislation regarding the transfer of land from
the State to the Borough. He felt the funds should be
appropriated to the Department of Natural Resources and, if
and when the land did transfer to the Borough, RSA the
funds to the Borough.
Senator Lyda Green countered that the property proposed for
development in this amendment is not the property under
consideration for transfer. She said the developer has
already made land use arrangements with the Department of
Natural Resources and the Borough.
Senator Al Adams then asked if a private developer is
undertaking the Hatcher Pass development. Senator Lyda
Green confirmed but noted that this amendment addresses the
infrastructure involved with the development.
By a vote of 1-8, the amendment FAILED to be adopted.
Senator Lyda Green voted in favor.
AT EASE 5:04 PM / 5:28PM
Tape: SFC - 99 #129, Side A 5:28PM
FRONT #8: This amendment reappropriates the 1994 Department
of Administration's unexpended and unobligated corporate
receipt balances for Boiler System Replacement at the
Fairbanks Pioneer's Home to the Department of Community and
Regional Affairs for state match of federal funds from the
US Department of Commerce. Senator Sean Parnell moved for
adoption.
Without discussion or objection, the amendment was ADOPTED.
FRONT #9: This amendment appropriates $566,000 from
interagency receipts to the Department of Natural Resources
and the Department of Fish and Game for specific projects.
Senator Loren Leman moved for adoption.
Senator Loren Leman moved to amend the amendment on page 1
line 3 after "interagency receipts" to insert "from the
Department of Environmental Conservation from federal non-
point source pollution funds".
He noted that the federal allocations are for Section 319
projects and that this amendment corresponds to the
operating budget through an amendment he had submitted to
the Conference Committee to reduce the amount of non-point
source pollution grants.
Senator Al Adams asked if this amendment to the amendment
would result in any restrictions regarding expenditures of
the funds. Co-Chair John Torgerson wanted to know if the
Administration requested this change.
BARBARA FRANK, Director, Division of Administrative
Services, Department of Environmental Conservation came to
the table and testified that the department did not propose
the amendment but the uses are consistent with the Section
319 projects. Senator Loren Leman interjected saying the
amendment to the amendment was offered at the request of a
high-ranking employee of the department.
Senator Al Adams asked if there are restrictions attached
to the non-point pollution funds. Barbara Frank responded
that the allocations are within the perimeters of the fund.
Senator Randy Phillips wanted to know if this would
increase the general fund obligation in the next fiscal
year. Senator Loren Leman didn't think so and said this
appropriation is for specific projects. He reminded the
Committee that the funds were originally distributed to
different projects, but at the request of the departments,
some of the funds are now redirected to these high-priority
projects.
Without objection, the amendment was AMENDED and the
amended amendment was ADOPTED.
FRONT #10: This amendment adds $25,000 general funds for
Hope Community Resources fire Suppression Sprinkler System
and $34,500 general funds for Alaska Center for the Blind
Fire Suppression Sprinkler System. Senator Dave Donley
moved for adoption. Co-Chair John Torgerson objected.
Senator Dave Donley spoke of the earlier request from the
AK Center for the Blind and the Hope center for sprinkler
systems. This amendment would address both requests.
Senator Lyda Green stated she did not support the amendment
and was bothered by the fund source.
Senator Al Adams supported the amendment however he was
concerned about the diversion of funds from AHFC senior
housing deferred maintenance projects and recommended
reinstating at least half of the funds.
Senator Gary Wilken asked if the remaining appropriations
listed on line 5 page 21 of the committee substitute would
be available for similar projects. Senator Dave Donley
affirmed and stressed that he believed the fire suppression
systems are fair and necessary requests.
By a vote of 6-3 the amendment was ADOPTED. Senator Lyda
Green, Senator Gary Wilken and Senator Pete Kelly cast nay
votes.
FRONT #11: This amendment reduces the amount of general
funds appropriated to the Cordova Mile 17 Landfill
Construction to $1,745,000 and adds a new section relating
to the Exxon Valdez Oil Spill Restoration Fund and the
appropriation of $215,000 from the settlement fund to the
landfill project. Senator Sean Parnell moved for adoption.
Senator Lyda Green objected. Co-Chair John Torgerson
explained this amendment would reappropriate income accrued
from the Exxon fund to the Cordova landfill construction
project and frees money from the general fund. In the
past, the Exxon funds were used for similar projects but
had to meet certain criteria and be located in the spill
area, according to Co-Chair John Torgerson. He said that
the Cordova landfill is the only project in the FY 00
budget that meets the criteria.
Senator Lyda Green asked if the settlement judgement is
currently under appeal. Co-Chair John Torgerson answered it
is not, that this fund source is interest earned off the
criminal settlement.
Senator Dave Donley wanted to know if this funding change
frees federal match funds. Co-Chair John Torgerson said it
does not and that it only replaces a portion of the general
fund needed to construct the project.
Senator Lyda Green removed her objection and the amendment
was ADOPTED.
FRONT #12: This amendment appropriates $500,000 general
funds for the Ketchikan Juvenile Detention Center and is
contingent on receipt of at least $250,000 from the Mental
Health Trust Authority. Senator Sean Parnell moved for
adoption. Senator Al Adams objected.
Senator Al Adams asked if the amendment language contains a
binding stipulation on the receipt of MHTA receipts. Co-
Chair John Torgerson responded that he did not intend to
support this amendment and therefore had not considered a
stipulation.
SENATOR ROBIN TAYLOR came to the table to speak to the
request saying this is the final funding increment
necessary to complete the juvenile detention facility in
Ketchikan. He spoke of the millions spent on the Johnson
Youth Center in Juneau noting that approximately fifty-
percent of the residents are from southern Southeast
Alaska. He stated that prior commitments to fund a facility
in Ketchikan were not fulfilled and as a result, the City
of Ketchikan is willing to contribute between $500,000 to
$750,000 in matching funds. He also noted that if the
general funds were appropriated, the Mental Health Trust
Authority would contribute $250,000 since it will utilize
the facility as well. He stressed that if the facility is
not completed, youths will continue to be transported from
the Ketchikan area into Juneau.
The amendment FAILED to be adopted by a vote of 4-5.
Senator Dave Donley, Senator Loren Leman, Senator Lyda
Green and Senator Randy Phillips voted in favor.
FRONT #13: This amendment inserts $331,400 general funds
and appropriates $2,641,200 federal funds for Ketchikan
Shipyard Facility Development. Senator Sean Parnell moved
for adoption. Co-Chair John Torgerson objected. Senator Al
Adams asked what was the recommendation of the Subcommittee
on this item. Senator Dave Donley replied that the project
was not discussed because the request was submitted past
the deadline for consideration.
Senator Robin Taylor indicated that the project was not
submitted until three weeks prior and therefore the
Subcommittee did not have an opportunity to fully review
it. He noted that the City of Ketchikan is willing to
contribute an equal amount of funding as requested from the
state to pay for improvements to the state-owned facility.
He understood that the Department of Transportation and
Public Facilities, Division of Marine Highways strongly
supports this project. He stressed that the funding is a
90-10 match with the state contributing only ten percent
and that he understood 90-10 projects would be funded in
this year's budget. He asked that this project be given the
same consideration as the Governor's requested projects.
Co-Chair John Torgerson pointed out that if money were put
into this project, funds would have to be removed from
another project elsewhere. Therefore, he opposed the
amendment.
Senator Loren Leman asked if this project dislodges other
federal funds. Senator Robin Taylor answered that the funds
are lost if not matched.
Senator Dave Donley wanted to know if the federal money for
this project comes from a US Corps of Engineers fund.
Senator Robin Taylor replied that it is not. Senator Dave
Donley stated that he was unfamiliar with any harbor
projects funded under the TEA 21 program. He said the other
harbor projects considered by the Subcommittee qualify for
US Corps of Engineers funding and are not a 90-10 match but
instead are limited only by the amount of the match
contribution.
Senator Robin Taylor responded that this project is very
specific and the city is willing to match the state's
funds. He felt that if the project were brought up in
time, it would have been included in the Governor's budget.
He pointed out that the Committee diverted funds from the
deferred maintenance account for another project submitted
late. He emphasized that he hated to see the federal money
lost.
Senator Al Adams recalled that the Committee put adequate
funds into last year's appropriation for this project. Kurt
Parkan said only the federal funds were appropriated last
year. He added that this was a high priority project of
Alaska's congressional delegation the prior year. However,
he noted there is a 20 percent match requirement, which was
not included in the FY99 state's budget. He said this
amendment would fulfill the match requirement because the
city is contributing half the needed amount. He explained
that the federal appropriation is unlike most
appropriations that are lost if the match money is not
produced by a certain date. The federal funds for this
project are available indefinitely because of the high
priority of the project, according to Kurt Parkan.
Senator Lyda Green wanted to know if this is a Department
of Commerce and Economic Development project. Senator
Robin Taylor responded that it is because AIDEA operates
the facility, leasing it from the state.
Senator Gary Wilken expressed regret that the project did
not come before the Committee earlier. He asked if there
are other projects in the sponsor's district that the
sponsor could reprioritize to allow for this project.
Senator Robin Taylor stressed there are many 90-10 projects
across the state and pointed out that another project the
Committee added to the budget does not have a 90-10 match.
He apologized for the lateness of the project.
Senator Al Adams suggested changing the funding source from
general funds to AIDEA funds since the project pertains to
economic development.
AT EASE 5:52PM / 8:08PM
Senator Robin Taylor answered Senator Loren Leman' question
about whether this project would "exceed authority", saying
the Department of Transportation and Public Utilities
determined this is a unique project.
Senator Dave Donley's understanding was that if this
amendment did not pass today, the federal funds would not
lapse and would be available the next year. Co-Chair John
Torgerson had the same understanding.
The amendment FAILED to be adopted by a vote of 2-7.
Senator Loren Leman and Senator Al Adams voted in favor.
FRONT #14: This amendment inserts $500,000 general funds
for Wrangell Heritage Harbor Project. Senator Sean Parnell
moved for adoption. Co-Chair John Torgerson objected for
the same reason he objected to the previous amendment.
Senator Robin Taylor restated his assertion that funding
should be granted for 90-10 match projects. He testified
that this $13 million dollar project only recently received
approval from the federal government for $11,700,000. He
added that the City of Wrangell will provide six percent of
the required match, and the state will only need to provide
four percent. He emphasized that this is a major economic
development project.
By a vote of 3-6, the amendment FAILED to be adopted.
Senator Al Adams, Senator Dave Donley and Senator Loren
Leman cast yea votes.
FRONT #15: This amendment inserts a new section relating to
appropriations from the Constitutional Budget Reserve
(CBR). It increases the CBR appropriation for FY99
expenditures from $900,000,001 to $1,050,000,000 and
inserts an FY00 appropriation amount not to exceed
$1,007,000,000. Senator Sean Parnell moved to adopt.
Senator Sean Parnell then moved to amend the amendment to
increase the FY99 appropriation amount (located on line 11
of the amendment) to $1,100,000,000. He explained that CBR
expenditures had already exceeded the $900 million and
because of lower than anticipated corporate income tax
receipts, additional funds are needed.
Senator Sean Parnell then shared that the FY00 CBR
appropriation is based on projections made in the Spring
Revenue Forecast. He noted that the provision does not
authorize an open-ended CBR withdrawal, but instead is an
amount-certain.
Without objection the amendment was AMENDED.
There was no objection and the amended amendment was
ADOPTED.
AT EASE 8:16PM / 8:17PM
FRONT #16: This amendment extends the lapse date of the
FY98 American Red Cross Grant to the Department of Military
and Veterans Affairs for Disaster Planning and Control to
June 30, 2000. Senator Sean Parnell moved for adoption.
The amendment was ADOPTED without objection.
FRONT #17: This amendment appropriates general funds to the
Department of Administration: $2,423.29, Department of Fish
and Game: $1,952.90 and the Department of Law: $1,189.20 to
pay miscellaneous claims and stale-dated warrants for FY
99. Senator Sean Parnell moved for adoption. He explained
that this amendment is for funds in addition to those
appropriated in the FY99 Supplemental budget and was made
at the request of the Office of Management and Budget.
Senator Randy Phillips commented that the law requires the
funds to be appropriated retroactively.
Without objection, the amendment was ADOPTED.
FRONT #18: This amendment appropriates $100,000 general
funds to the Department of Law and $100,000 to the Alaska
Legislative Council for costs associated with the proposed
BP Amoco/ARCO merger for FY99 and FY00. Senator Sean
Parnell moved for adoption. He stated that both Senator
Rick Halford and Senator Drue Pearce supported the
amendment and that he believed the funding will help the
Administration and the Legislature send a strong message
showing that Alaskans have a stake in the merger.
Senator Dave Donley supported the amendment but had a
question on the status of the Conference Committee's
efforts in reallocating funds from the Oil and Gas
Litigation Section. He wanted to know if reductions could
be made, citing that testimony in budget hearings showed
funds given to the Section were "really soft".
Senator Sean Parnell agreed with Senator Dave Donley's
assessment and added that there was another argument in
favor of using permanent fund receipts to address the
merger.
Senator Sean Parnell WITHDREW his motion to adopt and
requested the amendment be HELD. There was no objection.
FRONT #19: This amendment appropriates $30,000 general
funds to the Department of Law for costs relating to the
Glacier Bay-Tongass Submerged Lands Quiet Title Litigation
for FY99. Senator Sean Parnell moved for adoption and
explained this is a supplemental request sponsored by
Senator Rick Halford and Senator Jerry Mackie. Senator Sean
Parnell urged the members' support for the amendment.
Senator Randy Phillips wanted to know if this amendment is
in the same category as FRONT #18. Senator Dave Donley
pointed out this is a supplemental budget request and is
somewhat different.
Senator Dave Donley lamented that while he chaired the
budget Subcommittee, the Department of Law never came to
him with this request.
With no objection, Senator Sean Parnell WITHDREW his motion
and the amendment was HELD until the sponsors could address
the Committee.
Senator Dave Donley asked if there was written backup
accompanying the amendment. Senator Sean Parnell replied
that he had a memorandum but it was not with him.
AT EASE 8:23PM / 8:33PM
FRONT #18: This was the second consideration for this
amendment. Senator Sean Parnell moved for adoption. He
stated that he did not have backup available relating to
the possible use of permanent fund receipts but he wished
the amendment to be considered on its merits as is.
Senator Al Adams asked if sufficient funds were not already
provided to the Legislative Council in the operating budget
to address matters similar to the BP-ARCO merger. Senator
Sean Parnell's understanding was that the legislature did
not. He stated that both the legislature and the governor
have a vested interest in ensuring accurate information and
quality legal expertise relating to the merger.
The amendment was ADOPTED without objection.
FRONT #19: This was the second consideration of this
amendment. Senator Sean Parnell moved for adoption.
BRETT HUBER, staff to Senator Rick Halford, addressed the
Committee. He said that in looking at the department's
need for FY99, an additional $30,000 was required.
Alternate funding sources had been discussed but it was
determined that the matter fell outside the scope of the
Oil and Gas Litigation Section, according to Brett Huber.
There was no objection and the amendment was ADOPTED.
FRONT #20: This amendment adds a new section stipulating
that federal or other program receipts that exceed the
amounts appropriated in FY98 are appropriated to FY99,
conditioned upon compliance with the program review
provisions. Senator Sean Parnell moved for adoption.
DAVID TEAL, Director, Division of Legislative Finance
explained the language is typical in every capital bill
with the exception of the previous year's bill, which it
was omitted. He said there were some technical problems in
transferring funds because of the omission. This amendment
will correct the matter and be retroactive.
AT EASE 8:37PM / 8:45PM
Senator Dave Donley objected to the motion.
By a vote of 7-2, the amendment was ADOPTED. Senator Dave
Donley and Senator Loren Leman voted in opposition.
DEPARTMENT OF LAW
LAW #1: This amendment extends the lapse date to June 30,
2000 of a $300,000 general fund appropriation for
additional costs associated with court challenges to the
statutes dealing with medical procedures and parental
consent for abortions. Senator Sean Parnell moved for
adoption and explained the amendment was offered at the
request of the department. Senator Loren Leman asked if the
funds are used for outside council. Senator Sean Parnell
was unsure.
BARBARA RICHIE, Deputy Attorney General, Civil Division,
Department of Law explained that the funds are not for
outside council and that the cases are being handled by the
Office of Special Prosecutions and Appeals. She noted that
the case in question is currently pending before the
Supreme Court.
Senator Sean Parnell said he had understood the
appropriation was for outside council. He then WITHDREW his
motion to adopt the amendment.
DEPARTMENT OF ADMINISTRATION (Continued from earlier in the
meeting.)
ADM #7: This amendment appropriates $188,000 general funds
to the Alaska Oil and Gas Conservation Commission (AOGCC)
and $100,000 general funds to the Longevity Bonus Grant
Program for increased operating costs for FY99. Senator
Sean Parnell moved for adoption and explained this is a
supplemental request submitted by the department. He had
spoken to the Commissioner regarding the AOGCC request and
learned that if the additional funds are not appropriated,
the Commission will close beginning June 4, 1999. Given the
importance of the BP-ARCO merger and the role of the
Commission, Senator Sean Parnell recommended the additional
funds be approved.
Senator Loren Leman asked for an explanation on the second
portion of the amendment regarding the longevity bonus
program. Annalee McConnell explained that the funds
requested are based on a projection of the amount needed to
pay the last longevity bonus payment in FY99. She said
that the projections indicate the program will run out of
money in the eleventh month.
Senator Dave Donley moved to DIVIDE the question. ADM #7A
contains the appropriation to the AOGCC and ADM #7B
contains the Longevity Bonus Grant Program appropriation.
Tape: SFC - 99 #129, Side B 8:50PM
ADM #7A: By a vote of 7-2, the amendment was ADOPTED.
Senator Randy Phillips and Senator Dave Donley cast nay
votes.
ADM #7B: Without objection, the amendment was ADOPTED.
Senator Randy Phillips questioned why the supplemental
items and other operating items are included in this
capital bill. Senator Sean Parnell explained that the
practice of considering supplemental requests for inclusion
in the capital budget has always been done because this
budget is the final appropriation bill for the session.
Senator Dave Donley commented to his concerns with the
appropriation to the AOGCC made with the last amendment. He
ascertained that the agency overspent its budget without
making any reductions even with the knowledge that the
money was running out. He felt that the threat to close
down the agency if more funds are not approved sets a bad
example and could result in other agencies using the same
strategy next year. Because of this, he concluded that the
request should have been made to the Committee during the
regular supplemental process and if additional funds were
not approved, reductions should be made accordingly.
Senator Sean Parnell understood the concerns but shared
that he learned from Cammy Oechsli, a Commissioner with
AOGCC, that a request was submitted to the Department of
Administration but was never forwarded to the Legislature
by the Office of Management and Budget. Therefore, he
learned about the matter after the supplemental process was
complete.
Senator Dave Donley wanted the special circumstances of
this situation made clear on the record. He hoped that
other omissions of the Office of Management and Budget
would not result in an influx of similar requests in the
future.
DEPARTMENT OF NATURAL RESOURCES (Continued from earlier in
the meeting.)
DNR #10: This amendment inserts intent language directing
the department to contract with appropriate entities to
develop snowmobile trails, safety and education programs.
The language also stipulates that funds appropriated for
this purpose are not to be spent on additional staff in the
department. Senator Lyda Green moved for adoption.
Senator Al Adams moved to AMEND the amendment. The amended
amendment directs the department to develop "rural" trails.
Without discussion or objection, he WITHDREW his motion to
amend the amendment. Senator Dave Donley noted that almost
one-half million dollars are appropriated for rural trails
in the TRAAK portion of this budget.
There was no objection, and the amendment was ADOPTED.
DEPARTMENT OF TRANSPORTATION AND PUBLIC UTILITIES
(Continued from earlier in the meeting.)
DOT #13: This amendment inserts a new section that
allocates general and federal funding in specific amounts
to specific AMATS projects. It also replaces three other
sections relating to effective dates and stipulates that
the appropriation section takes effect on the day after the
Commissioner publishes public notice of a proposal to amend
the STIP to reflect the specific projects indicated in this
amendment. The provisions in this amendment are similar to
those in DOT #14 and #15. Senator Dave Donley moved for
adoption and explained this amendment is the result of
joint efforts to amend the STIP to enforce legislative
intent. By withholding the effective date until the
appropriation provisions of the amendment are published, he
hoped the projects requested by the legislature would be
addressed through the public process. He stated that the
process would not be delayed because the only extra work
required of the department is the public notice.
Senator Dave Donley clarified for Senator Al Adams's
benefit that this amendment only relates the Anchorage STIP
projects. The next two amendments address the CIP and
TRAAK.
KURT PARKAN told the Committee that the recently submitted
amendments were distributed after federal highway personnel
had gone home and so they had no opportunity to review the
changes. However, he stressed that in principle, the
provisions are inconsistent with federal regulations and
could jeopardize federal funding. He explained that the
state has only one vote out of five members on the AMATS
Policy Committee that determines which projects will be
undertaken. Therefore to stipulate that the Commissioner
must insert specific projects when he did not have that
authority is inconsistent with federal regulations.
Senator Dave Donley moved to AMEND the amendment to insert,
"the AMATS Policy Committee authorizes" on page 1 line 5
following, "the day after the". The amended amendment also
changes language on line six from, "facilities publishes"
to "facilities to publish" for grammatical clarification.
The section now stipulates that the Commissioner must
submit the amendment's specific project list for public
comment after receiving authorization from the AMATS Policy
Committee.
Senator Al Adams pointed out that the AMATS Policy
Committee has two members who are appointed by the
legislature and he wondered if this amendment is to take
effect before or after the next appointments are made. It
was determined that the appointment legislation was not
before the Committee at this time and the question went
unanswered. Co-Chair John Torgerson stated that the
membership of the AMATS Policy Committee has no affect on
this amendment.
Senator Lyda Green wanted the sponsor to explain why the
provision is desired. Senator Dave Donley related that in
the previous year, the Legislature had added several
projects but that the AMATS Policy Committee never
considered those projects. In addition he stated, the
Legislature added contingent language relating to a 15th
Avenue project requesting public hearings, which was also
ignored. He pointed out that the reconstruction of that
street displaced the Alano Club and resulted in the club's
$600,000 request to the Legislature for funds to construct
a new facility. He felt this and other actions demonstrated
the department's disregard for legislative intent and that
this amendment would require the department to participate
in a public process before receiving funding. He pointed
out that the amendment does not require the department to
institute the appropriations made in the amendment, only to
follow a public process in considering them.
Senator Lyda Green asked if this amendment applies only to
the initial stage of projects or if it applies to on-going
projects as well. Senator Dave Donley replied that this
provision applies only to the specific projects listed in
this section of the bill.
Senator Al Adams referred to DOT #13, #14 and #15 and
wanted to know if any of the listed projects could be
jeopardized, delayed or hampered because of an
inconsistency with federal regulations. He was concerned
that even with the amendment to the amendment, the federal
funding could be delayed. Curt Parkan replied that it is
conceivable that these projects could be jeopardized.
However, it would be unknown until the federal highway
employees could review and advise on the matter.
The amendment was AMENDED by a vote of 7-2. Senator Al
Adams and Senator Lyda Green cast nay votes. The amended
amendment was ADOPTED by a vote of 6-3. Senator Al Adams,
Senator Pete Kelly and Senator Lyda Green voted in
opposition.
DOT #14: This amendment inserts a new section that
allocates general and federal funding of specific amounts
to specific STIP (except AMATS) projects. It also replaces
three other sections relating to effective dates and
stipulates that the appropriation section takes effect on
the day after the Commissioner publishes public notice of a
proposal to amend the STIP to reflect the specific projects
indicated in this amendment. The provisions in this
amendment are similar to those in DOT #13 and #15. Senator
Dave Donley moved for adoption. Senator Al Adams objected.
Senator Dave Donley explained this amendment is a parallel
amendment that deals with the Community Transportation
Program (CTP) section of the STIP. He noted that the AMATS
Policy Committee is not involved in these proposed projects
and therefore, their participation in the public notice
process is not necessary. He pointed out that this
amendment includes a change to the Sitka Harbor Way
Reconstruction/O'Connell Bridge project.
Senator Al Adams asked, if because it is unknown whether
the "public notice" stipulation will meet federal
requirements for the AMATS projects, is it necessary to
insert the same provision into the CTP projects. Kurt
Parkan responded that the department feels the stipulation
is not necessary. He commented that the stipulation
requires public notice but does not necessarily require
that all the proposed projects be added to the STIP.
Co-Chair John Torgerson said this amendment is another
attempt to force the Department of Transportation and
Public Facilities to do the projects set forth in the
capital budget appropriated by the legislature and signed
into law by the governor. He spoke to the ranking system
employed by the department pointing out that department
refuses to undertake some projects even though funding is
appropriated by the legislature. He stressed that this
amendment requires the department to start the process by
amending the STIP. He noted this is the forth year in a row
such an attempt has been made. He hoped this method would
be successful because the effective language cannot be
vetoed from the capital bill.
Senator Al Adams opposed the amendment and thought the
Department of Transportation and Public Facilities did a
good job with rural Alaska roads and airports. Co-Chair
John Torgerson countered that the department made the same
promises in rural Alaska as in urban areas that have not
been followed through. He added that this project list
contains some projects requested by rural legislators that
have not been fulfilled.
Senator Lyda Green still did not see how this amendment
would accomplish the goal of making the department address
specific projects. She suggested the department could
publish a public notice but never follow through with
changes. Co-Chair John Torgerson and Senator Dave Donley
agreed that is possible, but Co-Chair John Torgerson
repeated this will prevent the department from completely
ignoring the legislature's directives.
Senator Dave Donley explained the amendment begins the
public information process for working toward an amendment
in the STIP that is necessary to implement the legislative
intent. He said this is an improvement of the previous
year's process, which ignored the legislative intent and
did not allow public comment on the changes the legislature
proposed.
Co-Chair John Torgerson stated that if this amendment does
not work; another attempt will be made next year.
The amendment was ADOPTED by a vote of 7-2. Senator Lyda
Green and Senator Al Adams cast nay votes.
DOT #15: This amendment inserts a new section that
allocates general and federal funding of specific amounts
to specific TRAAK projects. It also replaces three other
sections relating to effective dates and stipulates that
the appropriation section takes effect on the day after the
Commissioner publishes public notice of a proposal to amend
the STIP to reflect the specific projects indicated in this
amendment. The provisions in this amendment are similar to
those in DOT #13 and #14. Senator Dave Donley moved for
adoption. Senator Al Adams objected.
Senator Randy Phillips wanted to know if the department had
the information he requested regarding the history of funds
spent on TRAAK projects across the state. Kurt Parkan did,
and the information was handed out.
By a vote of 7-2, the amendment was ADOPTED. Senator Lyda
Green and Senator Al Adams voted against the motion.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEC #1: This amendment replaces $10,365,868 general funds
with AHFC receipts for Village Safe Water Grants. It also
reduces the general fund allocation from $8,364,900 to
1,289,818 and adds $6,860,082 AHFC receipts for Municipal
Matching Grant Program reducing the total appropriation to
$17,949,200. Senator Sean Parnell moved for adoption.
Senator Al Adams objected. Co-Chair John Torgerson
explained this is a funding source change.
Senator Al Adams wanted to know the impact of removing an
additional $52 million from the AHFC. Annalee McConnell
said she was calculating to see if this appropriation goes
above the total amount available from AHFC. Co-Chair John
Torgerson stated that according to the Division of
Legislative Finance, it does not, but that a conforming
amendment would be made to allow adjustments if necessary.
Senator Al Adams removed his objection and the amendment
was ADOPTED.
AT EASE 9:18PM / 9:32PM
DEPARTMENT OF ADMINISTRATION (Continued from earlier in the
meeting.)
ADM #4: This amendment adds $250,000 general funds for
Bethel Courthouse Transfer. Senator Al Adams moved for
adoption. Senator John Torgerson, Senator Sean Parnell and
Senator Lyda Green objected. Senator Al Adams spoke to the
efforts the local community made to raise a portion of the
funds needed to remodel the city office building, add
additional square footage and bring the building up to Y2K
standards. He read a statement in support of the amendment,
saying the upgrades are necessary for the operation of the
Court System, Department of Corrections, Department of Law,
Department of Environmental Conservation, the Recording
Office and other agencies housed in the facility. He stated
that the remodel would create efficiencies for the public
and cost less over time for the agencies. He noted the
agencies have agreed to the lease requirements with the
City of Bethel. However, the cost of moving into the
building is not part of the lease agreement and needs to be
financed.
Co-Chair John Torgerson maintained his objection.
The amendment FAILED to be adopted by a vote of 1-8.
Senator Al Adams voted in favor.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (Continued
from earlier in the meeting.)
CED #2: This amendment increases the appropriation for the
Kodiak Launch Complex from $5 million to $6 million in
other funds to correspond to the front section of the bill.
Senator Sean Parnell moved for adoption. Co-Chair John
Torgerson explained no technical adjustment was needed to
this amendment as earlier mentioned.
Without objection, the amendment was ADOPTED.
CED #5: This amendment deletes $5,000,000 other funds for
the Kodiak Launch Complex from the front section of the
committee substitute. Co-Chair John Torgerson stated he
would NOT OFFER the amendment, due to action taken on CED
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
CRA #1: This amendment adds $350,000 other funds for Flood
Mitigation Assistance Grants. Senator Pete Kelly moved for
adoption and explained this is a federal fund
authorization. Co-Chair John Torgerson pointed out that
this amendment is totally federal funded with no impact on
the general fund.
Senator Loren Leman wanted to know where the funds go and
if they are spent on small projects across the state.
[Inaudible answer]
There was no objection and the amendment was ADOPTED.
CRA #2: This amendment appropriates $75,000 general funds
for Arctic Winter Games Team Alaska. Senator Randy Phillips
moved for adoption. Senator Gary Wilken objected and asked
what amount was funded the prior year. Senator Randy
Phillips answered it was $125,000.
The amendment was ADOPTED by a vote of 7-2. Senator Lyda
Green and Senator Gary Wilken voted in opposition.
DEPARTMENT OF NATURAL RESOURCES (Continued from earlier in
the meeting.)
DNR #3: This amendment was NOT OFFERRED deferring to DNR
DNR #4: This amendment was NOT OFFERRED deferring to DNR
DNR #8: This amendment pertaining to Perseverance Trail
emergency repairs had been held earlier in the meeting.
Senator Al Adams moved for adoption and noted a letter from
the City and Borough of Juneau handed out by Senator Sean
Parnell.
Senator Sean Parnell spoke about his efforts to transfer
ownership of the trail to the municipality because it is
located on borough land rather than state or federal land.
He stated that the legislature appropriated money for other
repairs to the trail in the past with a contingency that
the trail is turned over to the city upon completion. He
noted the repairs were done without the use of state funds
and yet the state still had ownership of the trail. He
referred to the aforementioned letter where the city
manager wrote, "These repairs would address the major
safety concerns of this portion of the trail. In return,
the city would take over ownership and maintenance of the
repaired portion of the trail. Expenditure of the
appropriation would be contingent upon agreement between
the State and CBJ to take over ownership and maintenance.."
Senator Sean Parnell stressed that this is the first time
the legislature has had anything in writing from the city
promising to take over ownership of the trail. He pointed
out the net zero affect the amendment has on the general
fund and he urged the Committee's support.
Senator Sean Parnell also pointed out that the original
request of $134,000 was reduced to $48,500 through the use
of volunteer and donated labor and equipment secured by
Trail Mix, Inc. He referred to a letter before members from
Trail Mix, Inc. detailing the projected expenditures.
Senator Sean Parnell added that by granting ownership to
the city, the state is relieved of the responsibility of
maintenance of the trail.
Senator Randy Phillips wanted to know if this appropriation
would take funds from other state park emergency repairs.
NICO BUS, Administrative Services Manager, Division of
Support Services, Department of Natural Resources,
responded that the department will have to reprioritize
other projects to accommodate this reduction. Senator Randy
Phillips asked if he had a current priority list of the
projects. Nico Bus did not.
Senator Lyda Green wanted to know if another request would
be made the next year before the city will assume
ownership. Senator Sean Parnell said that was up to the
city and the legislative body on whether to approve an
additional request. He remarked that earlier requests had
been denied because of the high expense and the
municipality's requirement that the entire trail be
repaired before accepting ownership. His intent with this
amendment is to do repairs at the minimal safety level. It
would be up to the legislature to decide future funding, he
concluded.
Senator Al Adams noted there was a representative of the
city present. Co-Chair John Torgerson didn't know what
capacity the representative held.
CLARK GREUNING, lobbyist, spoke to his understanding of the
city assembly's desire to eventually assume ownership of
all downtown area trails. He also believed the intent is to
one day take over responsibility for all trails located
within the borough. He noted that the portion of the trail
this amendment will address is a high-maintenance area that
experienced a washout last fall. He spoke of the reduction
in the original request made in the FY99 Supplemental
budget.
Co-Chair John Torgerson asked if there would be a
supplemental request next year. Clark Gruening replied that
a request could be submitted as part of a future capital
budget for a different part of the trial and also have a
transfer of ownership contingency.
Nico Bus had a list of identified state park emergency
repairs projects that he would make available.
By a vote of 8-1, the amendment was ADOPTED. Senator Randy
Phillips cast the nay vote.
DEPARTMENT OF REVENUE (Continued from earlier in the
meeting.)
REV #1: This amendment appropriates $2,315,300 AHFC
receipts, allocating $1,100,000 to Wasilla Senior Housing
and $1,215,300 to Talkeetna Senior Housing. Senator Lyda
Green moved for adoption. Co-Chair John Torgerson objected.
Senator Lyda Green spoke to the amendment, saying it
pertains to two senior housing projects in the Mat-Su
Valley, which are supported by fund raising efforts. She
stated that substantial amounts of money are tied to the
projects and is contingent upon receipt of this AHFC
funding. Some of the funds will be lost without this match,
she warned.
Senator Al Adams stated that he tried to obtain funding for
these projects with REV #5, which funds the entire senior
housing component. While he supported the Wasilla area
projects, he said he didn't believe they should be singled
out at the expense of the others.
Senator Loren Leman asked if Senator Lyda Green knew why
the cost of the facilities is so high. He thought that
$200,000 per unit seems higher than it should be. Senator
Lyda Green noted this amount covers the costs starting from
ground zero including road access, site prep, utilities,
etc.
Tape: SFC - 99 #130, Side A 9:50PM
The amendment FAILED to be adopted by a vote of 2-7.
Senator Loren Leman and Senator Lyda Green voted in favor.
UNIVERSITY OF ALASKA (Continued from earlier in the
meeting.)
UNV #1: This amendment was addressed earlier in the meeting
and appropriates $800,000 university receipts for Juneau
PE/Recreation Facility. Co-Chair John Torgerson stated he
would NOT OFFER this amendment.
UNV #7: This amendment was also heard earlier in the
meeting and appropriates $800,000 university receipts for
Juneau PE/Recreation Facility as well. Senator Al Adams
moved for adoption. Senator Sean Parnell objected. Senator
Al Adams said this amendment uses university receipts to
finance the construction of a recreation facility. He noted
similar facilities are located on the Fairbanks and
Anchorage campuses and the legislature has the ability to
build one in Juneau. He stressed that no general funds are
used.
Senator Randy Phillips asked if the program receipts are
generated by the Juneau campus or statewide. Senator Al
Adams believed the revenues come from the Juneau campus.
Senator Randy Phillips requested a representative from the
university come to the table to verify that.
WENDY REDMOND, Vice President, University Relations,
University of Alaska said the revenues are expected to come
from student fees as is done on the other campuses. She
stressed that this is a very limited facility that will
house a running track and some basketball courts.
Senator Dave Donley asked how $800,000 could possibly be
raised in only one year. Wendy Redmond said it would not
be raised in one year, that a revenue bond would be issued
and additional student fees will pay for the facility for
many years into the future. She added that there are a
couple other funding ideas including the sale of the Bill
Ray Center.
Co-Chair John Torgerson remained opposed to the amendment.
Senator Lyda Green asked if this amendment failed and if
the Bill Ray Center were sold, would the proceeds of the
sale have to fund a capital project. Wendy Redmond replied
that in either case, revenues from the building sale would
have to be reappropriated as university receipts.
Senator Dave Donley asked how the university expected to
pay for the operating costs of the recreational facility.
Wendy Redmond responded that all costs are considered,
including the operating costs and debt service when
determining the student fees. She noted the process is the
same for the Fairbanks campus and is very successful.
Senator Loren Leman asked what is the fee in Fairbanks.
Wendy Redmond replied the current amount charged is $75 per
semester. Senator Loren Leman wanted to know if every
student pays the fee or only those who used the facility.
Wendy Redmond answered that everyone must pay the fee.
Senator Al Adams moved to technically amend the amendment
to change "general funds" to "university receipts". The
amendment was AMENDED.
By a vote of 3-6, the amended amendment FAILED to be
adopted. Senator Loren Leman, Senator Al Adams and Senator
Randy Phillips voted in favor.
DEPARTMENT OF TRANSPORTATION AND PUBLIC UTILITIES
(Continued from earlier in the meeting.)
DOT #5: This amendment was held earlier in the meeting. It
eliminates the appropriation distinctions for Trials and
Recreational Access for Alaska (TRAAK) Category A:
$12,528,663, Category B: $1,005,826 and Category C:
$8,392,877, combines the funding into a single TRAAK
appropriation of $22,175,799, and specifies certain
projects and amounts to be spent on each. Senator Dave
Donley moved for adoption. Senator Al Adams objected.
Senator Dave Donley reminded the Committee that this
amendment had been held because Senator Randy Phillips
requested information from the department regarding the
locations of past projects. Senator Randy Phillips had the
information and was ready to take action on the amendment.
The amendment was ADOPTED by a vote of 8-1. Senator Al
Adams voted in opposition.
CONFORMING AMENDMENTS
Conform Amend #1: This amendment instructs the Division of
Legislative Finance and the Division of Legal Services to
make necessary technical adjustments to ensure that all
back section appropriations and language conform with the
front section items. Senator Sean Parnell moved for
adoption.
There was no objection, and the amendment was ADOPTED.
Conform Amend #2: This amendment stipulates, "that any
adjustment to limit the AHFC receipt appropriation to the
total of $52,628,300 be made to the Sanitation Grant
identified in DEC #1 as discussed. The intent is to fully
fund those sanitation grants, first with AHFC receipts and
second with general funds." Senator Sean Parnell read the
amendment language into the record and moved for adoption.
Co-Chair John Torgerson explained the purpose of the
amendment is to replace general funds with AHFC receipts
for the Department of Environmental Conservation water
programs.
Senator Sean Parnell moved to technically AMEND the
amendment to change the amount to $52,638,300 and there was
no objection.
Without objection, the amended amendment was ADOPTED.
AT EASE 10:02PM / 10:17PM
Co-Chair John Torgerson verified the amendments with the
Committee Secretary, the Division of Legislative Finance
and the Office of Management and Budget. Everything
appeared to be in order.
Co-Chair John Torgerson announced the schedule for
distribution of the new committee substitute, which should
be available by 5:00 PM tomorrow.
Co-Chair John Torgerson thanked Senator Dave Donley for his
work as Subcommittee chair. He believed this added more
scrutiny to the process.
Co-Chair John Torgerson thanked Tracy Carpenter from the
Division of Legislative Finance and Terry Cramer from the
Division of Legal Services and also Llewellyn Lutchansky
from his office.
.
Senator Sean Parnell offered a motion to move CS SB 32
(FIN) as amended from committee. Senator Al Adams objected.
Senator Al Adams made a statement denouncing the Capital
Budget Subcommittee process as an obscene way of doing
business, especially with the removal of funds from rural
areas. He took special exception to the removal of $1.2
million for the Port of Nome and the diversion of those
funds into an urban project. While he believed both the
Nome and Anchorage ports were good projects, he felt both
should have been funded. He also criticized the elimination
of the $4.8 million in federal funds for the
Nondalton/Iliamna Highway. He charged that the Subcommittee
process was a hidden process done behind closed doors. As a
member of the Senate Minority, he could graciously accept
defeat on different projects as long at the process is held
in an open forum. He listed several projects that were not
funded, which he felt were important and should have been
addressed. These projects included supplemental housing,
weatherization, senior housing, the Hutchison training
center and deferred maintenance projects throughout the
State Of Alaska. He also suggested that additional school
projects should have been considered. For these reasons, he
opposed the committee substitute.
By a vote of 8-1, the bill moved from committee. Senator Al
Adams voted in opposition.
Co-Chair John Torgerson thanked the Senate Finance
Secretary and the Senate Finance Committee Page.
Co-Chair John Torgerson announced there will be no finance
committee meeting tomorrow. Bills scheduled for Monday
morning are SB 157, SB 169 plus others listed on the
agenda.
ADJOURNED
Senator Torgerson adjourned the meeting at approximately
10:30 PM.
SFC-99 (1) 5/7/99
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