Legislature(2005 - 2006)SENATE FINANCE 532

04/27/2006 05:00 PM Senate FINANCE


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05:06:39 PM Start
05:07:05 PM SB231
07:02:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+= SB 231 BUDGET: CAPITAL & OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+ --Public testimony will be limited to no TELECONFERENCED
more than 3 minutes --
Fairbanks, Mat-Su
Anchorage
Glenallen, Seward, Homer
Kenai, Kodiak, Dillingham
"Off-Nets"
+ Bills Previously Heard/Scheduled TELECONFERENCED
5:07:05 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 231                                                                                                        
     "An   Act    making   appropriations,    including   capital                                                               
     appropriations and appropriations to capitalize funds; and                                                                 
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was  the fifth hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green  announced that  funding  for  the University  of                                                               
Alaska would  be restored in  a forthcoming  committee substitute                                                               
to the  amount requested by  the Governor  in his proposed  FY 06                                                               
Capital Budget.                                                                                                                 
                                                                                                                                
5:08:40 PM                                                                                                                    
                                                                                                                                
Senator Bunde  relayed he had  received electronic  messages from                                                               
several  constituents unable  to  attend this  hearing. He  would                                                               
forward their written testimony to the Committee.                                                                               
                                                                                                                                
5:09:07 PM                                                                                                                    
                                                                                                                                
JEROME  SELBY,  Mayor,  Kodiak   Island  Borough,  testified  via                                                               
teleconference from  Kodiak to request funding  to supplement the                                                               
funding appropriated the previous year  for construction of a new                                                               
Department of Fish and Game  building in Kodiak. He reminded that                                                               
the  Borough  would construct  and  maintain  the facility  while                                                               
allowing  the  Department  of  Fish  and  Game  to  be  the  sole                                                               
occupant.                                                                                                                       
                                                                                                                                
5:11:44 PM                                                                                                                    
                                                                                                                                
HAROLD  HEINZE,  Chief  Executive  Officer,  Alaska  Natural  Gas                                                               
Development   Authority,   testified  via   teleconference   from                                                               
Anchorage  to written  testimony he  had submitted  prior to  the                                                               
meeting.   To  secure   this  resource   for  use   by  Alaskans,                                                               
significant decisions  must be made.  Extensive data  and studies                                                               
are necessary to make informed decisions.                                                                                       
                                                                                                                                
5:14:35 PM                                                                                                                    
                                                                                                                                
JEWEL   JONES,    Brother   Francis   Shelter,    testified   via                                                               
teleconference  from  Anchorage  that  she  is  involved  in  the                                                               
construction  of  a new  facility.  The  previous facility  is  a                                                               
former  storage  building and  was  intended  to be  a  temporary                                                               
location for  the Shelter. This  shelter is a vital  component of                                                               
the Anchorage society. Additional capital funding is needed.                                                                    
                                                                                                                                
Co-Chair Green indicated  that this funding would  be included in                                                               
a forthcoming committee substitute.                                                                                             
                                                                                                                                
5:17:27 PM                                                                                                                    
                                                                                                                                
ALBERT   PAGH,   Four   Star  Lumber   Company,   testified   via                                                               
teleconference from Fairbanks about  the importance of the timber                                                               
industry. The  Governor requested $250,000 and  the Committee has                                                               
to  date  approved  a $150,000  appropriation.  This  funding  is                                                               
necessary to  conduct an inventory  of available timber  to allow                                                               
for harvest and milling.                                                                                                        
                                                                                                                                
5:19:41 PM                                                                                                                    
                                                                                                                                
Co-Chair   Green  announced   that   the  forthcoming   committee                                                               
substitute  would include  an appropriation  in  the full  amount                                                               
requested by the Governor.                                                                                                      
                                                                                                                                
5:19:52 PM                                                                                                                    
                                                                                                                                
Senator Bunde excused himself for a previous commitment.                                                                        
                                                                                                                                
5:20:23 PM                                                                                                                    
                                                                                                                                
CINDY   SCHUMAKER,   Morris   Thompson  Center,   testified   via                                                               
teleconference from Fairbanks that this  facility is planned as a                                                               
tribute to  the late Mr.  Thompson. It  is intended as  a fitting                                                               
way  to continue  his good  works. The  efforts to  construct the                                                               
Center   represent  a   unique  partnership   of  the   Fairbanks                                                               
Convention and Visitors Bureau,  the Tanana Chiefs Conference and                                                               
the National Park  Service to create a new multi  use facility to                                                               
"inspire  visitors" to  explore  the State.  The  State is  being                                                               
requested to contribute  $2.9 million or 15 percent  to the total                                                               
cost. She detailed the federal  funding and private contributions                                                               
received.                                                                                                                       
                                                                                                                                
Co-Chair Green  reported that "more  than half of that  money has                                                               
been restored and the conversation goes on."                                                                                    
                                                                                                                                
5:23:54 PM                                                                                                                    
                                                                                                                                
GABRIEL  LAYMAN, Palmer  Senior  Citizens  Center, testified  via                                                               
teleconference from  Mat-Su about  the number of  senior citizens                                                               
from  the Matanuska-Susitna  Valley  area served  by the  Center.                                                               
Many who  receive these services  are able to  remain independent                                                               
rather  than  relocating  to  a   nursing  home  facility,  at  a                                                               
significantly higher cost to the  State. The Center is located in                                                               
a  former church,  which is  dilapidated and  overcrowded. A  new                                                               
Center  is proposed  and  funds are  requested  for planning  and                                                               
design.                                                                                                                         
                                                                                                                                
Co-Chair  Green  stated  that efforts  were  underway  to  secure                                                               
funding for this project.                                                                                                       
                                                                                                                                
5:27:31 PM                                                                                                                    
                                                                                                                                
HOWARD  DELO,  Chair, Matanuska  Valley  Fish  and Game  Advisory                                                               
Committee,  testified via  teleconference from  Mat-Su to  read a                                                               
letter from  the Advisory Committee.  This letter  requested $1.6                                                               
million proposed by  the Governor for the Department  of Fish and                                                               
Game for  game management  activities. Additionally,  $30,000 was                                                               
requested to allow the Board  of Game to secure surveys necessary                                                               
to make decisions on the Tier II hunting seasons.                                                                               
                                                                                                                                
Co-Chair Green remarked she would review this request.                                                                          
                                                                                                                                
5:32:09 PM                                                                                                                    
                                                                                                                                
LOUIE  BENCARDINO,  Board  Member,  Alaska  Vocational  Technical                                                               
Center, testified  via teleconference  from Seward  that although                                                               
the  committee  substitute  includes  a portion  of  the  funding                                                               
requested by the  Governor for several projects  at the facility,                                                               
funding  for  three other  important  projects  was omitted.  The                                                               
projects include  a new  distance training  facility, replacement                                                               
of the  dormitory and  a maintenance  building, and  planning for                                                               
new design  technology facility. The  Center serves a  vital role                                                               
in training Alaskans  for jobs necessary to  the State's economy.                                                               
Most of  the Center's  14 buildings  were constructed  during the                                                               
1970s  and  were of  "cheap"  quality.  Federal funds  have  been                                                               
authorized, but require matching funds from the State.                                                                          
                                                                                                                                
5:39:39 PM                                                                                                                    
                                                                                                                                
DON  SWARNER,  Ice  Alaska,  testified  via  teleconference  from                                                               
Fairbanks  that the  organization  hosts an  event that  provides                                                               
entertainment for  many and promotes winter  tourism. The current                                                               
facility   is  outdated   and  does   not   meet  building   code                                                               
requirements. Many  of the  buildings at the  park site  would be                                                               
replaced  at the  organization's expense.  However, the  proposed                                                               
assembly building  replacement would  require State  funding. The                                                               
Governor has expressed interest in this project.                                                                                
                                                                                                                                
5:42:58 PM                                                                                                                    
                                                                                                                                
DAVE FERREE, Fairbanks North Star  School District, testified via                                                               
teleconference from  Fairbanks that  the District's  top priority                                                               
is the replacement of the  central kitchen facility. The existing                                                               
facility is  located on Eielson  Air Force Base and  was designed                                                               
and  constructed  in  the  1970s  to  serve  approximately  1,500                                                               
students. Currently,  the kitchen  provides meals for  over 4,000                                                               
students and faculty.  Federal funds have been  secured but state                                                               
funds are necessary.                                                                                                            
                                                                                                                                
5:45:15 PM                                                                                                                    
                                                                                                                                
SUSAN   BOMALASKI,   Executive   Director,   Catholic   Community                                                               
Services,   testified  via   teleconference  from   Anchorage  to                                                               
identify  herself  as  new  to  the position  and  to  thank  the                                                               
Committee for the funding provided.                                                                                             
                                                                                                                                
5:45:32 PM                                                                                                                    
                                                                                                                                
JEAN WALL,  Director, Alaska  Small Business  Development Center,                                                               
testified via  teleconference from  Anchorage to  request funding                                                               
at the same  level provided in FY 06. The  Center had submitted a                                                               
report of its progress and  future plans and goals, which include                                                               
support of the Buy Alaska Program.                                                                                              
                                                                                                                                
5:48:13 PM                                                                                                                    
                                                                                                                                
PATRICK  SHIFLEA,   Alaska  Community   Development  Corporation,                                                               
testified  via  teleconference  from  Mat-Su to  request  the  $6                                                               
million  appropriation proposed  by the  Governor for  the Alaska                                                               
Housing  Finance Corporation  Low Income  Weatherization Program.                                                               
The  current high  fuel costs  place an  increased burden  on low                                                               
income Alaskans. This  program has long lasting  benefits to low-                                                               
income households.                                                                                                              
                                                                                                                                
5:49:44 PM                                                                                                                    
                                                                                                                                
CASSANDRA   PINKEL,    Project   Manager,    Fairbanks   Economic                                                               
Development  Corporation,   testified  via   teleconference  from                                                               
Fairbanks  to thank  the Committee  for  supporting the  Interior                                                               
Alaska timber inventory project.                                                                                                
                                                                                                                                
5:50:09 PM                                                                                                                    
                                                                                                                                
COLEEN TURNER,  Executive Director,  Resource Center  for Parents                                                               
and Children,  testified via teleconference from  Fairbanks about                                                               
the  services the  Center provides  to break  the cycle  of child                                                               
abuse and  neglect and  the funding  necessary to  continue these                                                               
efforts.                                                                                                                        
                                                                                                                                
5:51:39 PM                                                                                                                    
                                                                                                                                
JOEL GROVES, Professional Engineer,  Polar Consultants of Alaska,                                                               
testified via teleconference from  Anchorage about the efforts of                                                               
this  organization  to  provide professional  services  to  rural                                                               
villages to assist in power intertie systems.                                                                                   
                                                                                                                                
5:54:10 PM                                                                                                                    
                                                                                                                                
GEOFFREY  PARKER,  Attorney,  testified via  teleconference  from                                                               
Anchorage regarding  the Juneau  Access project and  the Williams                                                               
Port/Pile  Bay  Road  project. The  Juneau  Access  road  project                                                               
involves multiple  legal problems that should  be resolved before                                                               
the project commences. Funding projects  in one area of the State                                                               
should not be  appropriated at the expense of other  areas of the                                                               
State. He  also opposed the  Williams Port/Pile Bay  Road project                                                               
near Lake Illiamna.                                                                                                             
                                                                                                                                
5:57:26 PM                                                                                                                    
                                                                                                                                
JOHN  HAWCHETT,   Finance  Chair,   Ice  Alaska,   testified  via                                                               
teleconference from  Fairbanks thanking  Co-Chair Wilken  for his                                                               
efforts in  assisting the organization. Promoting  winter tourism                                                               
is an  important continuing undertaking  and this  event attracts                                                               
thousands  of   visitors  from  the   United  States   and  other                                                               
countries. Many  conferences and other gatherings  are planned to                                                               
coincide with  this event.  The existing  facilities do  not meet                                                               
fire  safety code  requirements.  He requested  that the  funding                                                               
requested by the Governor be restored.                                                                                          
                                                                                                                                
6:00:27 PM                                                                                                                    
                                                                                                                                
JERRY  WALKER,  Student  and  Adjunct  Instructor,  and  Advisory                                                               
Council  Member,  Tanana  Valley Campus,  University  of  Alaska,                                                               
Fairbanks,  testified  via  teleconference  from  Fairbanks  that                                                               
education is  of primary importance  to him. Efficiency  in these                                                               
efforts is  vital. He requested  funding to address  the building                                                               
efficiency  and  improve  energy  efficiency. This  would  be  an                                                               
investment rather than an expenditure.                                                                                          
                                                                                                                                
6:02:21 PM                                                                                                                    
                                                                                                                                
GRACE CHANG, Volunteer, Ice  Alaska, testified via teleconference                                                               
from Fairbanks about her attraction  to the event. She has gotten                                                               
her children involved  as well. An ice slide  constructed for the                                                               
event  is popular  with  children and  provides  them with  vital                                                               
physical  exercise.  She  serves  as  a  Chinese  translator  for                                                               
visitors  from  China  and  the   Republic  of  China  and  their                                                               
attendance to this event is beneficial.                                                                                         
                                                                                                                                
6:05:43 PM                                                                                                                    
                                                                                                                                
KAREN  PARR, Retirement  Community  of  Fairbanks, testified  via                                                               
teleconference  from Fairbanks  that  although  Fairbanks is  the                                                               
second-largest  community  in  the  State, it  does  not  have  a                                                               
facility for  those transitioning  from an  independent lifestyle                                                               
to  a full  care arrangement.  The Fairbanks  Pioneers' Home  had                                                               
served as primarily  an assisted living facility,  but has become                                                               
more of  a nursing home.  Low-income senior citizens need  such a                                                               
service  and  an  assisted living  style  apartment  building  is                                                               
planned. Without  such a facility,  many are forced to  leave the                                                               
community, their friends and relatives.                                                                                         
                                                                                                                                
6:10:30 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken thanked  the  witness for  her  efforts on  this                                                               
matter.  He   cautioned  about  the   precedence  such   a  State                                                               
appropriation would establish for future similar requests.                                                                      
                                                                                                                                
6:11:22 PM                                                                                                                    
                                                                                                                                
MARY  RASMUSSEN, Chair,  Anchorage Library  Board, testified  via                                                               
teleconference  from an  offnet location  to request  funding for                                                               
renovation   of  the   Lusak   Library  in   Anchorage  and   the                                                               
construction of a new facility in Girdwood.                                                                                     
                                                                                                                                
6:13:17 PM                                                                                                                    
                                                                                                                                
JAN  WRENTMORE, Skagway  resident, testified  in Juneau  that she                                                               
has operated  tourism-related businesses  in Skagway  since 1978.                                                               
Skagway  voters have  voted in  opposition to  the Juneau  Access                                                               
project in several elections. The  current plan would involve the                                                               
road ending  in a desolate area  and would not address  the needs                                                               
placed on the  ferry system. The road would cost  45 percent more                                                               
to  maintain over  its life  than  the Marine  Highway System.  A                                                               
proposal to  operate ferries from  Cascade Point in  Berners Bay,                                                               
north of  Juneau, is a  preferable alternative.  Existing ferries                                                               
could be  utilized under  this plan and  three new  vessels would                                                               
not need to be constructed and maintained.                                                                                      
                                                                                                                                
6:18:43 PM                                                                                                                    
                                                                                                                                
ALLEN  GUGGISBERG  testified  via teleconference  from  Fairbanks                                                               
that  he resides  near Healy  and  does not  support funding  the                                                               
Stampede  Road project.  He understood  the  desire for  improved                                                               
access to Denali National Park,  although this project represents                                                               
a  poor  alternative  and  the  $14  million  proposed  would  be                                                               
insufficient.                                                                                                                   
                                                                                                                                
6:20:50 PM                                                                                                                    
                                                                                                                                
RICK  CAULFIELD, Director,  Tanana Valley  Campus, University  of                                                               
Alaska,  Fairbanks, testified  via teleconference  from Fairbanks                                                               
to  thank  the Committee  for  its  support of  the  University's                                                               
community  college mission.  This  mission  focuses on  workforce                                                               
development, academic  preparation and lifelong  learning. Future                                                               
projections of job  needs indicate that only 25  percent of those                                                               
jobs would require a four-year  college degree, three-quarters of                                                               
future workers would require  an associate degree, apprenticeship                                                               
training, certificates  or other  skills that facilities  such as                                                               
this  campus  would  provide.  He  supported  the  $4.39  million                                                               
request for  improvements to the  Community Campus  Center, which                                                               
has  been identified  as the  highest  priority of  the Board  of                                                               
Regents for community campuses.                                                                                                 
                                                                                                                                
6:23:39 PM                                                                                                                    
                                                                                                                                
WILL  FORSBERG  testified  via   teleconference  from  an  offnet                                                               
location  that  he  represents  the  135-member  area  homeowners                                                               
association of residents along the  Stampede Road area who oppose                                                               
the proposed project for that area.  It is poorly designed and is                                                               
not the best alternative for access to Denali National Park.                                                                    
                                                                                                                                
6:24:57 PM                                                                                                                    
                                                                                                                                
MELISSA  CHAPIN testified  via teleconference  from Fairbanks  to                                                               
request funding for the Ice Alaska capital funding request.                                                                     
                                                                                                                                
6:26:15 PM                                                                                                                    
                                                                                                                                
ART  WEEKS,  Municipal  Librarian, testified  via  teleconference                                                               
from  an  offnet location  in  Anchorage  in support  of  funding                                                               
improvements  to the  Lusak Library.  This building  is 20  years                                                               
old. A  teen gathering  center is planned  for this  location. He                                                               
also supported the construction of a library in Girdwood.                                                                       
                                                                                                                                
6:28:15 PM                                                                                                                    
                                                                                                                                
MATT  ATKINSON,  Northern  Alaska  Tour  Company,  testified  via                                                               
teleconference from Fairbanks to  request restoration of the full                                                               
$2.9  million  for  the  proposed  Morris  Thomson  Cultural  and                                                               
Visitor Center.                                                                                                                 
                                                                                                                                
6:30:41 PM                                                                                                                    
                                                                                                                                
CATHY  LIESER   testified  via  teleconference  from   an  offnet                                                               
location as  a resident of  the Denali Borough to  the importance                                                               
of separating "the  wants from the needs."  The proposed Stampede                                                               
Road project  is a  want of  the Governor  and the  Department of                                                               
Transportation and Public Facilities.  These funds should instead                                                               
be allocated  to needs in  Interior Alaska such as  turning lanes                                                               
on  the  Parks  Highway  at  the north  entrance  to  the  Denali                                                               
National Park.                                                                                                                  
                                                                                                                                
6:32:04 PM                                                                                                                    
                                                                                                                                
JERRYNE  COLE   testified  via  teleconference  from   an  offnet                                                               
location in  agreement with past  testimony that findings  on the                                                               
proposed   Stampede  Road   project  must   be  reviewed   before                                                               
construction  begins.  Additionally,  attempts must  be  made  to                                                               
secure  federal  funding  rather than  solely  utilizing  general                                                               
funds.                                                                                                                          
                                                                                                                                
6:33:52 PM                                                                                                                    
                                                                                                                                
KAREN  KELLER,  Mother of  a  teenager  and part-time  librarian,                                                               
testified  via   teleconference  from   an  offnet   location  to                                                               
encourage  funding for  the  proposed teen  center  at the  Lusak                                                               
Library.                                                                                                                        
                                                                                                                                
6:35:01 PM                                                                                                                    
                                                                                                                                
DICK BRICKLEY  testified via teleconference from  Fairbanks about                                                               
the attributes of  Ice Alaska. A building at the  park site could                                                               
no longer be  utilized as multi-use facility,  as currently done.                                                               
A  new facility  must be  constructed and  the existing  facility                                                               
returned to its original use as housing for visiting artists.                                                                   
                                                                                                                                
6:38:13 PM                                                                                                                    
                                                                                                                                
ALAN ARMBRUSTER testified via  teleconference from Fairbanks that                                                               
the Ice  Alaska event  has expanded  and attracted  more visitors                                                               
each year.  It is time that  State funds are contributed  to this                                                               
effort.                                                                                                                         
                                                                                                                                
6:38:53 PM                                                                                                                    
                                                                                                                                
WALLACE  COX testified  via teleconference  from Fairbanks  about                                                               
the non-profit  Ice Alaska organization that  annually raises and                                                               
expends approximately  $500,000. Local businesses  and volunteers                                                               
contribute significantly to these  efforts. If the operation were                                                               
run  by  a   for-profit  entity,  this  would   be  considered  a                                                               
successful  business and  would be  responsible for  amassing the                                                               
resources necessary to fund these projects.                                                                                     
                                                                                                                                
At ease 6:43:57 PM / 6:44:15 PM                                                                                             
                                                                                                                                
Co-Chair Green  announced that those  signed up to  testify about                                                               
the Juneau Access road project would be heard the following day.                                                                
                                                                                                                                
6:44:58 PM                                                                                                                    
                                                                                                                                
RON  DIXON,  Chair,  Community Advisory  Council,  Tanana  Valley                                                               
Campus,   University   of   Alaska,  Fairbanks,   testified   via                                                               
teleconference  from  Fairbanks in  support  of  funding for  the                                                               
campus center project.                                                                                                          
                                                                                                                                
                                                                                                                                
6:45:58 PM                                                                                                                    
                                                                                                                                
CLICK BISHOP,  Alaska Operating  Engineers Local  1302, testified                                                               
via  teleconference from  Fairbanks  to thank  the Committee  for                                                               
approving  the  $3  million request  for  the  Pipeline  Training                                                               
Center in  Fairbanks. Future workers  must be  adequately trained                                                               
for jobs on the upcoming  construction of a natural gas pipeline.                                                               
He also supported funding for the Tanana Valley Campus project.                                                                 
                                                                                                                                
6:48:17 PM                                                                                                                    
                                                                                                                                
DICK  BOUSSON   testified  via  teleconference  from   an  offnet                                                               
location in Skagway  to request that the funding  be removed from                                                               
the  Juneau Access  project.  This project  would  be subject  to                                                               
litigation.                                                                                                                     
                                                                                                                                
6:49:42 PM                                                                                                                    
                                                                                                                                
KEN RUSSO  testified via teleconference  from an  offnet location                                                               
in opposition  to funding the  Juneau Access project. This  is an                                                               
unpopular project  as indicated by  many residents of  Haines and                                                               
Skagway. Any  money appropriated to  this project would  be "good                                                               
money after bad".                                                                                                               
                                                                                                                                
AT EASE to 6:55:30 PM                                                                                                         
                                                                                                                                
FAY  VON GEMMINGEN,  Certified Public  Accountant, testified  via                                                               
teleconference from  Anchorage in  support of the  Small Business                                                               
Development  Corporation.  As  a  small  business  operator,  she                                                               
frequently  refers   clients  to   the  Corporation   to  receive                                                               
assistance in establishing and operating successful businesses.                                                                 
                                                                                                                                
AT EASE 6:57:16 PM / 7:01:33 PM                                                                                             
                                                                                                                                

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