Legislature(2005 - 2006)SENATE FINANCE 532
03/17/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| SB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| = | SB 141 | ||
| + | TELECONFERENCED |
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Department of Commerce, Community and Economic Development
Manufacturing Extension Program
$1,600,000
$800,000 BLic Rcpts
$800,000 Fed Rcpts
Reference No.: 40242
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The Federal Manufacturing Extension Program (MEP) will support
Alaska's small and medium sized manufacturers throughout the
state by providing them access to knowledgeable manufacturing
and business specialists throughout the United States. This
program contributes to the Department's mission of promoting a
healthy economy by developing the business skills of Alaska's
small manufacturing companies.
JOHANA HANRAHAN, Director, Division of Administrative Services,
Department of Commerce, Community and Economic Development,
informed the Committee that this request has been removed from this
legislation, and is being advanced in the Supplemental bill
legislation.
Alaska Visitors Statistics Program
$750,000 Gen Fund
Reference No.: 40078
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005-06/30/2010
One-Time Project
Continuation of the Alaska Visitors Statistics Program (AVSP).
This Program continues the comprehensive collection and
presentation of information on Alaska's visitors. This program
contributes to the Department's mission of promoting a healthy
economy by assisting the visitor industry in marketing Alaska.
Ms. Hanrahan stated that this continuing program provides
demographic, characteristic, and expenditure patterns and opinions
of travelers to the State. The information is used to gauge impacts
to visitor infrastructures and facilities, to determine investments
in visitor attractions and services and the effect on State lands
and other natural resources, and to develop the tourism-marketing
program.
Senator Bunde commented that this program must be "a great asset"
to commercial enterprises in the visitor industry. Due to the fact
that the State is shifting to a policy of user pay, he asked
whether an estimate on the project's rate of return to the general
fund has been developed.
Ms. Hanrahan responded that data that has been gathered pertaining
to the increase in the number of visitors and revenues resulting
from promoted venues might address the question. Specific
information would be provided.
Senator Bunde stated that the State must seek more support from the
industry.
Tourism Promotion
$530,000 Gen Fund
Reference No.: 40495
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005-06/30/2010
One-Time Project
Various tourism marketing projects to promote and increase
tourism in Alaska. This request contributes to the
Department's mission of promoting a healthy economy by
assisting the tourism industry and those businesses benefiting
from the tourism industry.
Ms. Hanrahan stated that this project has five different
components: to augment national cable network television marketing
by increasing the number of weeks of advertising; to expand the
number of national cable networks being utilized; to increase the
State's online advertising presence on key trip-planning websites;
and to enhance the TravelAlaska.com website specifically to include
an online forum on the site. Research has indicated that an
increasing number of travelers are using Internet websites to plan
and research travel options.
Senator Bunde reiterated that the return to the State should be a
consideration as "creating jobs is not enough".
Senator Hoffman asked regarding the justification for requesting a
one-year rather than an on-going marketing program; specifically
whether the one-year request is being proposed to address a lull in
the number of visitors to the State.
Ms. Hanrahan responded that this is considered to be a multi-year
project, as the request would provide funds for more than one year.
The project would boost tourism.
Senator Hoffman inquired to the amount of the request that would be
expended in FY 06.
Ms. Hanrahan replied that this information would be provided.
Co-Chair Green asked that the total FY 06 tourism category funding,
to include all fund sources in both the operating and capital
budgets, be provided.
Ms. Hanrahan stated that this information would be compiled.
Ms. Hanrahan continued that the request would also promote
independent visitor traffic on the Alaska Highway by providing
funds to pre-qualified journalists to experience and write about
it. Independent travel on the Alaska Highway has been experiencing
limited growth. The fifth area that would be addressed with these
funds would be to further sales and training missions to promote an
Alaska/Asian relationship.
Organization Grants
$700,000 Gen Fund
Reference No.: 40056
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grants to unincorporated communities to defray the cost of
incorporation. Each unorganized city or borough that
incorporates after December 31, 1985 is entitled to an
organization grant under AS 29.050.180 -.200. This grant
contributes to the Department's mission of promoting a healthy
economy and strong communities by assisting communities in
achieving maximum self-government.
Ms. Hanrahan stated that this request would provide grants to
assist local governments in transitioning to a borough. Potentially
the Prince William Sound area, the City of Delta Junction/Delta-
Greely area, the Anchor Point area, and others might soon become
organized boroughs.
Co-Chair Green asked whether this could be characterized "as just
an anticipation."
Ms. Hanrahan responded that some of the petitions have been filed
and others are anticipated. According to Title 29 guidelines,
communities that organize are entitled to receive State funding
assistance for three years after organization. This funding request
would fund the first of three years.
Senator Olson asked for further information regarding the
assistance that must be provided to organizing communities.
Ms. Hanrahan responded that a newly organized borough or unified
municipality would receive $300,000 its first year, $200,000 the
second year, and $100,000 the third year.
Senator Olson understood therefore that $600,000 would be provided.
Co-Chair Green commented this is the amount specified in State
statute.
Ms. Hanrahan concurred.
Community Development Grants
$14,538,000
$14,050,000 Fed Rcpts
$ 488,000 Gen Fund
Reference No.: 38943
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Multiple federally-funded programs, enabling Commerce to
provide grants to communities and non-profit organizations for
community development. This program contributes to the
Department's mission of promoting a healthy economy and strong
communities by providing economic growth in the communities it
serves.
Ms. Hanrahan informed that this program assists communities with
developing flood plains and erosion management programs; grants to
assist small communities expand and diversify their economy; and
programs that allow Rural communities to construct or remodel
multi-use facilities. Communities contribute a match ranging from
ten to 25 percent of the cost of such projects. In FY 05 and FY 06,
48 unmapped communities in the Lower Kuskokwim and Bering Straits,
Copper Valley, and Southeast areas would receive accelerated
infrastructure development grants that would allow them to develop
profile maps. The request would also provide funds to the State's
Bulk Fuel Bridge Loan program and funds to mitigate the impact of
the Fort Greely Missile Defense development's construction and
operation.
Community Block Grants
$6,115,000
$6,045,000 Fed Rcpts
$ 70,000 Gen Fund
Reference No.: 38946
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Multiple federally-funded programs, enabling Commerce to
provide grants to communities and non-profits that provide
services and/or benefit the low- to moderate- income
individuals. This program contributes to the Department's
mission of promoting a healthy economy and strong communities
by providing economic growth in the communities it serves.
Ms. Hanrahan stated that this long-term on-going program would
provide funds to the Rural Alaska Community Action Program (RACAP)
for such things as training and educational drug and alcohol abuse
programs as well as nutrition grant programs. Homeless assistance
grants, emergency shelter grants, and funds to municipalities to
assist planning and infrastructure development are also provided.
The federal funds require a small State match.
Energy Projects
$20,750,000
$250,000 Bond Funds
$20,000,000 Fed Rcpts
$500,000 I/A Rcpts
Reference No.: 38950
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Multiple federally funded energy programs of Bulk Fuel
Upgrades, Rural Power Systems Upgrades, Alternate Energy and
Energy Efficiency projects. This program contributes to the
Department's mission of promoting a healthy economy and strong
communities by providing economic growth in the communities it
serves.
Ms. Hanrahan explained that this mostly federally funded program
would fund a wide variety of energy programs including bulk fuel
upgrades, rural power system upgrade programs, and alternative
energy and energy efficiency projects.
Senator Bunde declared that he was "not looking forward to the day"
when these federal funds might dissipate and the onus might be to
replace them with general funds.
Language Section: Electrical Emergencies
$330,000 Rural Elec
Reference No.: 32590
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30-2010
On-Going Project
To provide technical support when an electric utility has lost
the ability to generate or transmit power to its customers and
the condition is a threat to life, health, and/or property in
the rural community. This program contributes to the
Department's mission of promoting a healthy economy and strong
communities by providing economic growth in the communities it
serves.
Ms. Hanrahan read the project description.
Language Section: NPR-A Impact Grant Program
$29,517,700 NPR Fund
Reference No.: 38948
Category: Development
Location: Barrow
Election District: Arctic
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Grants to communities for public facilities and services.
Priority is given to those communities directly or severely
impacted by the leases and development of oil and gas within
the National Petroleum Reserve. This program contributes to
the Development's mission of promoting a healthy economy and
strong communities by providing economic growth in the
communities it serves.
Ms. Hanrahan reviewed the project description.
Co-Chair Green asked that a list of the projects affected by this
request be provided.
Ms. Hanrahan agreed to provide the information.
Co-Chair Wilken requested that this project be assigned to a
subcommittee that he might chair, for further analyzing and
development.
Co-Chair Green agreed.
Senator Stedman, Senator Dyson, and Senator Olson asked to serve on
the subcommittee.
Co-Chair Green announced that Co-Chair Wilken would be the
subcommittee chair.
Kodiak Launch Site Infrastructure
$36,000,000 Fed Rcpts
Reference No.: 40008
Category: Development
Location: Kodiak
Election District: Kodiak
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Kodiak launch site infrastructure to support the U.S.
Department of Defense's Missile Defense Program. This program
contributes to the Department's mission of promoting a healthy
economy and strong communities by providing economic growth in
the communities it serves.
Ms. Hanrahan stated this request would be federally funded. The
intent is to bring the Kodiak launch site to meet federal
Department of Defense requirements.
Protection and Education of Investors
$300,000 Stat Desig
Reference No.: 40505
Category: Education
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Protection and education of consumers/investors in accordance
with a national securities settlement with 10 of the nation's
top investment firms. This project contributes to the
Department's mission of promoting a healthy economy and strong
communities by educating the public in sound financial
planning.
Ms. Hanrahan noted that this request is being withdrawn as it has
been determined that rather than this money being directed to the
State, the State could recommend entities within the State that it
could be directed to.
Senator Bunde suggested that the money be directed to the PERS and
TRS retirement programs so that the systems could have an informed
group of investors in regards to such things as the proposed
Defined Contribution Retirement program.
Co-Chair Green thanked Senator Bunde for the suggestion.
9:37:14 AM
Morris Thompson Cultural and Visitors Center
$250,000 Gen Fund
Reference No.: 40500
Category: Development
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grant for the Morris Thompson Cultural and Visitors Center.
Ms. Hanrahan stated that this Center would provide visitor
information services, visitor trip planning, environmental
education, and exhibits. The total estimated cost of the Center
would be $26 million: $15 million of federal funds and the
remaining funds to be from the State and private contributors.
Co-Chair Green asked when the project might be completed.
Ms. Hanrahan replied that the conceptual design phase is reaching
completion. Requests for bids have not been let. In order to
complete the construction project by the spring of 2006, $4.5
million must be raised in 2005. The final completion date is
unknown.
Co-Chair Green asked whether this is the only budget request
associated with the Morris Thompson Cultural Center.
Ms. Hanrahan replied that this is the only request being furthered
by the Department. Further research regarding the project's total
funding would be conducted.
Co-Chair Green commented that this item might be revisited.
9:39:46 AM
City of Valdez - Harborview Demolition
$1,000,000 Gen Fund
Reference No.: 40517
Category: Development
Location: Valdez
Election District: Richardson/Glenn Highways
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Demolition of Harborview building.
Ms. Hanrahan stated that the land on which this building sits was
transferred to the City of Valdez. Since there is no viable
economic use of the building, which was closed in 1997, the City is
requesting funds to demolish and remediate the site. The building
does contain hazardous materials.
Co-Chair Green asked whether the City of Valdez would be liable
were any hazardous materials found.
Ms. Hanrahan asked for clarification whether the question pertained
to liability during demolition.
Co-Chair Green expressed that the liability question pertained to
both during and after demolition. In other words, would the State
would have other obligation other than providing funds.
Ms. Hanrahan stated that further information would be provided.
Co-Chair Wilken asked the funding history attached to this project,
as this is the seventh request to demolish this building that he
has heard in as many years as a Member of this Committee.
Ms. Hanrahan stated that the information would be provided.
9:41:53 AM
Tongass Coast Aquarium, Inc.
$100,000 Bond Funds
Reference No.: 40497
Category: Development
Location: Ketchikan Gateway Borough
Election District: Ketchikan
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
A grant for the Tongass Coast Aquarium, which will be a
regional facility providing education, research and exhibits
focusing on the coastal and marine ecosystems of Southeast
Alaska. This project contributes to the Department's mission
of promoting a healthy economy and strong communities by
providing educational opportunities and economic development
in Southeast Alaska.
Ms. Hanrahan read the project description and stated that the funds
would assist in constructing a 28,000 square foot aquarium.
Co-Chair Green asked that the funding history, to include the
State's total obligation; the amount the federal government has
provided; and other revenue sources, of this project be provided.
Ms. Hanrahan informed that this project is currently in the design
phase. No formal bids have of yet been requested. The total cost is
projected to be $27 million. The total funding request to the State
might range between one and four million dollars.
Co-Chair Green asked for clarification purposes, the amount being
requested this year.
Ms. Hanrahan stated that the FY 06 request is for $100,000.
Alaska Native Heritage Center
$500,000 Gen Fund
Reference No.: 40498
Category: Development
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grant to the Alaskan Native Heritage Center for the repair and
construction of Alaskan Native village exhibit sites. This
request contributes to the Department's mission of promoting a
healthy economy and strong communities by assisting the
tourism industry and those businesses benefiting from the
tourism industry.
Ms. Hanrahan noted that this is the only Native educational and
cultural center in the State that showcases the cultures of the
State's native people "to the public and to school children". The
Center is a premier tourist destination and, in partnership with an
international and Alaskan tour operators, hosts approximately
100,000 visitors annually. It provides in excess of 100 jobs and is
a marketing outlet for Rural handicrafts and cultural items.
Co-Chair Green asked whether this project could be supported by its
revenues, private donations, and other resources.
Ms. Hanrahan expressed that this request would fund the
construction of one village site and a playground within that site.
The overall plan is to construct five village sites that would
represent the dwellings of each of the State's five regions.
Co-Chair Green pointed out that the request states that the funds
would be for the repair and construction of exhibit sites. Ticket
sales and other income processing venues should provide for the
cost of repairs, as the project should be self-sustaining rather
than continuing to request State funding.
Ms. Hanrahan stated that further information would be provided.
Lower Kuskokwim School District - The People's Learning Center
$1,000,000 Gen Fund
Reference No.: 40502
Category: Development
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grant to the Lower Kuskokwim School District for the
construction of the Yuut Elitinaurviat, The People's Learning
Center. This project contributes to the Department's mission
of promoting a healthy economy and strong communities by
providing educational opportunities in the community.
Ms. Hanrahan read the project description and noted that three
million of the total eight million dollar project cost has been
raised. Additional funding has been requested from the Alaska
Native Education Grant Program, the Bureau of Indian Affairs, and
from Alaska Congressman Ted Stevens' office.
9:47:06 AM
City of Unalaska - Boat Harbor
$2,000,000 Bond Funds
Reference No.: 40501
Category: Development
Location: Unalaska
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grant to the City of Unalaska for a boat harbor at Little
South America in Unalaska. This project contributes to the
Department's mission of promoting a healthy economy and strong
communities by providing infrastructure necessary for
commercial enterprises and the community of Unalaska.
Ms. Hanrahan stated that this request would address "a serious lack
of moorage" in Unalaska. The breakwater construction would cost
approximately $11 million. While the City of Unalaska is
responsible for the inner harbor improvements, this request would
assist to support the total $17 million project cost.
Senator Stedman asked whether additional funding requests, beyond
this two million dollar request, might be forthcoming.
Co-Chair Green asked the Department to provide this information.
Senator Stedman also asked whether moorage fees and other income
venues established by the City would sufficiently provide for on-
going maintenance and replacement reserves for the project upon
completion. The concern is that this harbor might be in a state of
disrepair in 30 years as has been the experience with other harbors
in the State.
Senator Bunde asked that information be provided about the plans to
fund the on-going operating and maintenance costs of the Lower
Kuskokwim School District - The People's Learning Center
Senator Olson asked whether the Unalaska boat harbor is located at
the staging area site for the response to the December 2004 wreak
of the tanker, the Selendang Ayu.
Ms. Hanrahan would clarify that information.
City of Cordova - Cordova Center
$1,000,000 Gen Fund
Reference No.: 40503
Category: Development
Location: Cordova
Election District: Cordova/Southeast Islands
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Grant to the City of Cordova for the construction of a
Community Center in Cordova. This Request contributes to the
Department's mission or promoting a healthy economy and strong
communities by providing infrastructure necessary for
commercial enterprises and the community of Cordova.
Ms. Hanrahan stated that this request would provide for a 32,000
square foot community center that would provide conference,
convention, theater and training spaces; oil spill response
training; an incident and emergency command and communication
center; as well as space for a joint State and federal visitors
facility. A public library for the elementary school might also be
included.
Senator Bunde asked that information be provided regarding the
funding source for the center's operations and maintenance needs.
Ms. Hanrahan stated that this concludes the Department's capital
project requests.
Co-Chair Wilken understood that the Department might be requesting
funds for a film project.
Ms. Hanrahan responded that no request in that regard is being
presented.
AT EASE: 9:51:53 AM / 10:04:59 AM
Department of Corrections
Institution Closed Circuit TV System Recording
$2,500,000 Bond Funds
Reference No.: 40267
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Project will provide digital video recording systems within 11
Correctional Facilities statewide.
MARC ANTRIM, Commissioner, Department of Corrections, stated that
this request would provide for closed circuit television and
digital video recording systems through which to monitor prisoners.
The first phase of the project would be the installation of cameras
and the second phase would be the installation of the recording
equipment. This project would expand the current system to allow
the monitoring of living areas in addition to doorway and other
traffic areas. In addition to reducing incidents of prisoner
violence and property damage, the system would allow the Department
to comply with federal laws enacted in 2003.
Deferred Maintenance, Repair, and Renovations
$8,000,000 Bond Funds
Reference No.: 36788
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 60/30/2011
On-Going Project
Essential repair and renovation of electrical, mechanical,
roofing, fire/life safety, security, structural, food service,
pavements and site drainage systems at all correctional
facilities. This work is required to enable continued safe,
secure and efficient operation of the 24-hour incarceration
facilities.
Commissioner Antrim stated that this request would address the
extensive list of deferred maintenance needs of the 117 facilities
maintained by the Department. The majority of these facilities
exceed twenty years of age; ten percent are at least 30 years old;
and another ten percent exceed 40 years of age. A list of needs is
included in the packet.
Statewide Equipment Replacement
$450,000 Bond Funds
Reference No.: 30815
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2011
On-Going Project
Replace essential security, life safety, food service,
laundry, medical, records storage and maintenance equipment at
all correctional institutions. This equipment is required to
provide continued support of the officers and staff in
confining incarcerated offenders and in maintaining safe
operation of the institutions.
Commissioner Antrim stated that these funds would provide for the
replacement of many critical items, including such things as snow
removal equipment, grounds equipment such as lawnmowers, and fixed
kitchen items such as stoves, steam kettles, and microwave ovens.
Maintenance needs for such items has been deferred for many years.
Community Jails Life, Safety and Security Renovations and
Miscellaneous Equipment
$100,000 Bond Funds
Reference No.: 30818
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2011
On-Going Project
This project funds essential safety and security renovations
and equipment at fourteen (14) local governmental contract
jails. These jails require repairs and modifications to
continue their operation.
Commissioner Antrim noted that this request would provide necessary
upgrades at 14 community jails that, while operated by the local
community police departments, are under contract to the State. The
upgrades would be akin to the upgrades that would be occurring at
the State's jail facilities.
Co-Chair Green announced that this concludes the Department of
Commerce, Community and Economic Development and the Department of
Corrections capital project requests.
The bill was HELD in Committee.
| Document Name | Date/Time | Subjects |
|---|