Legislature(2005 - 2006)
05/02/2005 10:36 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This bill had previously been heard in the Senate Finance
Committee.
GINGER BLAISDELL, Staff to Co-Chair Green, prefaced her remarks by
stating that the committee substitute work draft, Version 24-
GS1074\F, being explained would require additional amending to
correct spelling and other errors. Requests from Legislators are
continuing to be incorporated.
Ms. Blaisdell stated that the first 72 pages of Version "F" list
"standard" capital budget projects, broken out by agency. Sec. 4,
page 73 through page 88, would address the projects that are also
included in SB 155-APPROP: SCHOOLS/UNIV/VIROLOGY LAB/MUSEUM. The
introductory language in SB 46 specifies that were SB 155 to fail
passage, the projects included in that bill would be funded by
general funds (GF) rather than by the Permanent Fund Earnings
Reserve Account as specified in SB 155. She pointed out that the
lone difference between the language in SB 155 and that of Sec. 4
is that SB 155 has a "general appropriation of $141,000,000 for
school maintenance projects", whereas SB 46 identifies each project
by school name.
2:17:54 PM
Co-Chair Green stated that that would account for the number of
pages in the section. This detailed information would be helpful to
Legislators.
2:18:02 PM
Ms. Blaisdell stated that the list includes each school that was
identified on the Department of Education and Early Development's
maintenance list. A few other school projects were also included.
Ms. Blaisdell noted that Sec. 6 on page 89 would address those
projects that would funded by the interest earnings of the Amerada
Hess Fund in the Permanent Fund via the Alaska Capital Income Fund.
There would be a few corrections to this list, as it had been
developed from an older list version.
2:18:42 PM
Ms. Blaisdell commented that the majority of the projects in Sec. 6
were included in Governor Frank Murkowski's transportation
initiatives and Roads to Resources endeavor.
2:19:00 PM
Ms. Blaisdell stated that Sec. 7 on page 89 contains "standard
language" that is included in every capital bill. It would include
such things as federal program receipts. This section would also
include language pertaining to projects that were originally
included in SB 97-SUPPLEMENTAL APPROPRIATIONS/CBR.
Ms. Blaisdell pointed out that the Alaska Gas Pipeline project is
included in the bill on page 94. That project had been previously
vetoed in the Fast Track Supplemental bill.
2:20:05 PM
Ms. Blaisdell continued that Reappropriations, which are listed by
House District, are included in Sec. 36 beginning on page 104. Most
of these were projects that were "highlighted" to Committee Members
by the Department of Commerce, Community and Economic Development.
2:20:39 PM
Co-Chair Green conveyed that that is the traditional procedure for
any money that has not been utilized.
2:20:52 PM
Ms. Blaisdell stated that a reappropriation could consist of any
money that had been appropriated in an earlier fiscal year and is
being reappropriated into a following fiscal year. The funds could
be reappropriated to support an entirely different use. These funds
could include such things as extended lapse dates or scope of
project changes.
2:21:09 PM
Co-Chair Green communicated that the reappropriation projects would
provide for projects "across the State and every district probably
has something going …" either at the request of the district or a
department.
2:21:24 PM
Ms. Blaisdell mentioned that the projects prefaced by "House
District are typically" advanced by the Department of Commerce,
Community and Economic Development.
2:21:39 PM
Ms. Blaisdell communicated that a few projects that were included
in the Supplemental Bill are provided for in the Appropriations
sections of the bill.
2:22:00 PM
Ms. Blaisdell stated that the final pages of the bill contain
contingency language to the effect of specifying that, were SB 155
to fail, money for the projects in that bill would be provided for
through this bill. In other words, language in this bill would
negate duplication of funding those projects specified in SB 155
were SB 155 to pass. Similar language is included in regards to the
Amerada Hess Capital Income Fund projects.
2:22:31 PM
Ms. Blaisdell concluded her testimony by specifying that lapse
dates and effective dates are included in the final sections of the
bill.
2:22:36 PM
Co-Chair Green pointed out that, other than the inclusion of the
Amerada Hess interest earning projects, this bill would be
characterized as a typical capital budget bill in regards to its
fund sources.
2:22:53 PM
Ms. Blaisdell concurred. Efforts were made to provide a fairly
traditionally formatted bill. "Past precedence" was adhered to as
much as possible.
2:23:08 PM
Co-Chair Green asked whether some of the items she had mentioned in
her initial review of Version "F" had been altered.
2:23:14 PM
Ms. Blaisdell clarified that the contents of Version "F" have not
been changed. The work draft does contain some typographical errors
and incorrect numbers; corrections are being made and a corrected
committee substitute would be provided.
2:23:36 PM
Co-Chair Green asked Members to communicate any corrections they
might find to Ms. Blaisdell.
Ms. Blaisdell expressed that she had identified ten items requiring
corrections. In addition, the Division of Legislative Finance is
addressing changes relating to Legislators' requests.
2:24:34 PM
Senator Hoffman asked whether a capital budget total has been
determined.
Co-Chair Green replied that a total has not yet been determined.
2:24:45 PM
Senator Dyson asked regarding language in Sec. 12, page 91, lines
12 and 13.
2:25:28 PM
Co-Chair Green responded that that language is standard in every
piece of legislation pertaining to marine vessels; specifically it
would allow for vessel retrofitting.
2:26:07 PM
Senator Dyson asked whether that language could be used as "a
loophole".
2:26:13 PM
Co-Chair Green replied "absolutely".
2:26:20 PM
Ms. Blaisdell stated that the language in question typically
pertains to Department of Public Safety and Department of Fish and
Game vessels. She noted that "the average amount for the sale and
resale" of those vessels is $250,000 to $300,000 per year.
2:26:42 PM
Senator Olson asked the reason that this loophole is not closed.
2:26:52 PM
Co-Chair Green responded that with a fleet, over the course of a
year, it might be necessary to discard and/or sell parts. Some of
the resulting income might be used to rehabilitate or refurbish
another vessel, airplane, or helicopter in the fleet. This language
is the traditional language in this regard. She stated that Senator
Olson, being an airplane owner, would understand this.
2:27:26 PM
Senator Olson voiced being aware of the issue. However, his concern
is that, as aircraft are sold and new ones bought, the situation
builds on itself. This is evidenced by the request for a new
hangar. That hanger would be filled, and then another hangar would
be required. He disagreed with such progression.
Co-Chair Green asked whether the concern is in regards to the fact
that increasing the number of aircraft in the fleet would require a
hangar.
Senator Olson stated that his concern pertained to the Department
of Public Safety request for a hangar that was in excess of
$6,000,000. That hangar would be filled and then another hangar
would be requested. This cycle would continue to escalate.
Co-Chair Green asked whether Senator Olson had observed a request
for a six million dollar hangar in this legislation.
Senator Olson responded that his concern is to "the mentality on
that absurd request".
2:28:55 PM
Co-Chair Green reiterated that the language in question is
identical to that of previous bills. It would allow for the
continuance of efforts. To that point, she stated that it would
also support the efforts being exerted by the Governor Murkowski
Administration in regards to reducing the number of aircraft and
marine vessels in State operations. Some would argue that there is
an insufficient number of aircraft and vessels in State service.
Others would argue that there are too many.
2:29:17 PM
Co-Chair Green asked whether there were any other Committee
questions or concerns. None were forthcoming.
Co-Chair Green reiterated that a new committee substitute is being
developed.
2:29:36 PM
Ms. Blaisdell specified the timeframe in which Members could
communicate any "technical corrections" to her. Members' amendments
that might incur significant changes to the bill could be developed
with the assistance of Members' own staff or with the Division of
Legislative Legal and Research.
2:30:11 PM
The bill was HELD in Committee.
2:30:27 PM
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