Legislature(2005 - 2006)SENATE FINANCE 532

04/28/2006 05:00 PM Senate FINANCE


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05:04:05 PM Start
05:04:11 PM SB231
07:11:54 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 --
Bethel, Nome, Kotzebue
Barrow, Tok, Delta Junction
Ketchikan, Petersburg, Wrangell
Sitka, Cordova, Valdez
Juneau
"Testimony on Juneau Access limited to
6 PRO and 6 CON"
+ Bills Previously Heard/Scheduled TELECONFERENCED
5:04:11 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 sixth hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
5:04:29 PM                                                                                                                    
                                                                                                                                
DENNIS FENTIE,  Premier, Yukon  Territory, Canada,  testified via                                                               
teleconference from  an offnet location  in the  Yukon Territory,                                                               
in support  of the  Railroad Feasibility  Study and  the proposed                                                               
Juneau Access project.                                                                                                          
                                                                                                                                
5:08:34 PM                                                                                                                    
                                                                                                                                
AT EASE 5:09:18 PM / 5:09:44 PM                                                                                             
                                                                                                                                
Co-Chair  Wilken offered  a  motion  to adopt  CS  SB 231  (FIN),                                                               
GS2034\I, as a working document.                                                                                                
                                                                                                                                
Senator  Dyson  requested  an   explanation  of  the  differences                                                               
between this version and the previous Version "F".                                                                              
                                                                                                                                
Co-Chair Green stated that time would not permit this.                                                                          
                                                                                                                                
5:10:48 PM                                                                                                                    
                                                                                                                                
JAMIE  PARSONS  testified  via   teleconference  from  an  offnet                                                               
location in Seattle  in favor of a $45  million appropriation for                                                               
the  Juneau Access  road project.  He  has expended  considerable                                                               
efforts for  a road over many  years in his capacity  as mayor of                                                               
the City and Borough of Juneau, and as a community member.                                                                      
                                                                                                                                
5:13:16 PM                                                                                                                    
                                                                                                                                
CATHY  HOSSFORD  testified  via  teleconference  from  an  offnet                                                               
location  in Skagway  that she  served as  chairperson of  a pro-                                                               
access group. She spoke of  the need for access infrastructure in                                                               
the  state, including  road access  between  Skagway and  Juneau.                                                               
Support for this overdue capital effort is important.                                                                           
                                                                                                                                
5:15:53 PM                                                                                                                    
                                                                                                                                
MIKE KORSMO testified via teleconference  from an offnet location                                                               
in  Skagway  in opposition  to  funding  the Juneau  Access  road                                                               
project. The selected  location is unsuitable for  a winter road.                                                               
The funds would be better spent on marine highway access.                                                                       
                                                                                                                                
5:17:05 PM                                                                                                                    
                                                                                                                                
BART  HENDERSON,  Business  Owner, testified  via  teleconference                                                               
from Haines that  he has followed the issue of  the road proposal                                                               
since its  inception. He and other  Haines businesspeople opposed                                                               
the project. Their  efforts to question the project  had been met                                                               
by supporters with  an uncompromising attitude. A  request to the                                                               
legislature is  the only  remaining option  to stop  the project.                                                               
Funding this project would divert  needed funding from the Alaska                                                               
Marine  Highway  System  that   serves  the  entire  Southeastern                                                               
region.                                                                                                                         
                                                                                                                                
5:22:01 PM                                                                                                                    
                                                                                                                                
THOMAS  BOLEN,  Emergency   Manager,  Northwest  Arctic  Borough,                                                               
testified  via teleconference  from  Kotzebue  to request  $1.625                                                               
million  for  a shoreline  rivettment  project  for the  Kivalina                                                               
area. Erosion from  the Chukchi Sea is  threatening the stability                                                               
of the community infrastructure and  the safety of its residents.                                                               
Facilities at risk include a bulk fuel facility and a school.                                                                   
                                                                                                                                
5:25:08 PM                                                                                                                    
                                                                                                                                
THOR   WILLIAMS,   Mayor,   City   of   Bethel,   testified   via                                                               
teleconference  from  Bethel in  support  of  the requested  $9.1                                                               
million for  the construction of  a water treatment  center, $1.3                                                               
million to  address dust control,  funding for construction  of a                                                               
National Guard  Armory, over $4 million  for road rehabilitation,                                                               
and  restoration of  $1 million  for the  regional Public  Safety                                                               
Building for use  by Alaska State Troopers and  the Bethel Police                                                               
Department.                                                                                                                     
                                                                                                                                
5:27:55 PM                                                                                                                    
                                                                                                                                
DAVID  ROEMHILDT,   Councilmember  and  Acting  Mayor,   City  of                                                               
Cordova,  testified via  teleconference from  Cordova to  request                                                               
$400,000  for Cordova  Dock repairs.  Additionally, he  requested                                                               
$5,552,000 for Cordova Airport improvement projects.                                                                            
                                                                                                                                
5:30:09 PM                                                                                                                    
                                                                                                                                
MARLENE  CLARKE testified  via  teleconference  from Wrangell  to                                                               
request  funding for  University of  Alaska deferred  maintenance                                                               
projects.  She  detailed her  involvement  in  operations of  the                                                               
university system.                                                                                                              
                                                                                                                                
5:31:49 PM                                                                                                                    
                                                                                                                                
MARLENE  CAMPBELL,  City  and Borough  of  Sitka,  testified  via                                                               
teleconference  from Sitka  to  defer her  allotted  time to  Mr.                                                               
Riggs.                                                                                                                          
                                                                                                                                
5:32:04 PM                                                                                                                    
                                                                                                                                
RICHARD  RIGGS,  Director,  Public  Works, City  and  Borough  of                                                               
Sitka,  testified   via  teleconference  from  Sitka   about  the                                                               
industrial park  located at  the former sight  of the  Sitka Pulp                                                               
Mill.  Utilities and  water and  sewer projects  are underway  to                                                               
allow  for  economic development  utilizing  this  area. He  also                                                               
spoke  in  favor   of  $2.9  million  funding   for  boat  harbor                                                               
improvements and  funding for utility  infrastructure development                                                               
of "benchline" property to provide additional housing.                                                                          
                                                                                                                                
Co-Chair Green noted Senator Stedman  had spoken to her about the                                                               
benchline project and that she was considering the request.                                                                     
                                                                                                                                
5:34:34 PM                                                                                                                    
                                                                                                                                
PETER GOLL  testified via teleconference from  an offnet location                                                               
in Haines  in opposition  of funding for  the Juneau  Access road                                                               
project. Funding for maintenance would  be difficult to secure in                                                               
the  future.   Marine  Highway  and  other   road  projects  have                                                               
"suffered greatly" from the diversion of funds.                                                                                 
                                                                                                                                
5:37:03 PM                                                                                                                    
                                                                                                                                
KEN KLAAWONDER,  Councilperson, City  of Gustavus,  testified via                                                               
teleconference  from Gustavus  regarding the  Gustavus commercial                                                               
boat  ramp project.  He  told  of the  need  for  $200,000 for  a                                                               
replacement  launch ramp  for the  community,  the National  Park                                                               
Service, commercial  fishers and  other boaters traveling  in the                                                               
area.  This ramp  provides the  only access  for supply  delivery                                                               
with the exception of air carriers.                                                                                             
                                                                                                                                
5:41:24 PM                                                                                                                    
                                                                                                                                
LESTER  LUNSFORD,   Mayor,  City   of  Whittier,   testified  via                                                               
teleconference from an  offnet location in Whittier  to request a                                                               
$2 million appropriation, as proposed  by the Governor, for small                                                               
boat harbor improvements in the city.                                                                                           
                                                                                                                                
5:44:44 PM                                                                                                                    
                                                                                                                                
MARK   EARNEST,  Manager,   City  of   Whittier,  testified   via                                                               
teleconference  from  an  offnet  location in  Whittier  that  95                                                               
percent  of the  users of  the  local boat  harbor are  non-local                                                               
residents. Most  are traveling from Anchorage  and communities in                                                               
the Prince William Sound.                                                                                                       
                                                                                                                                
5:47:26 PM                                                                                                                    
                                                                                                                                
JOHN   BRINGHURST,   Physician,  Petersburg   General   Hospital,                                                               
testified  via   teleconference  from   an  offnet   location  in                                                               
Petersburg  to  request $1  million  for  the Alaska  Tele-Health                                                               
Network  project.  This project  is  underway  for tribal  health                                                               
providers and  should be expanded to  non-tribal small hospitals.                                                               
Smaller communities are unable to  afford this technology without                                                               
assistance.                                                                                                                     
                                                                                                                                
5:49:55 PM                                                                                                                    
                                                                                                                                
Senator  Stedman  had been  unaware  of  this request  and  would                                                               
research the issue.                                                                                                             
                                                                                                                                
5:50:23 PM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  how  images   and  other  information  are                                                               
currently being transferred from this hospital.                                                                                 
                                                                                                                                
Mr. Bringhurst  explained the  outdated conversion  equipment and                                                               
the  reluctance  of  radiologists  to  rely  on  the  non-digital                                                               
images.                                                                                                                         
                                                                                                                                
5:51:38 PM                                                                                                                    
                                                                                                                                
Senator Olson stated that this project reflects industry trends.                                                                
                                                                                                                                
5:52:05 PM                                                                                                                    
                                                                                                                                
RON SUMMERVILLE,  Board of Game,  testified in Juneau  in support                                                               
of $2.9 million  for intensive management activities.  He told of                                                               
efforts of  the Board  to resolve  issues related  to subsistence                                                               
hunting in areas including Game Management Unit 19.                                                                             
                                                                                                                                
5:55:34 PM                                                                                                                    
                                                                                                                                
GLEN  THOMPSON, Ketchikan  Gateway Borough,  testified in  Juneau                                                               
about attempts to remodel the  only middle school facility in the                                                               
community.  The Borough  has issued  bonds to  fund construction,                                                               
which  is almost  complete; however,  mold and  rot permeate  the                                                               
building and it is uninhabitable.                                                                                               
                                                                                                                                
Co-Chair  Green informed  that Senator  Stedman has  relayed this                                                               
request. Funding  for debt reimbursement projects  is included in                                                               
separate  legislation   under  consideration  in  the   House  of                                                               
Representatives.                                                                                                                
                                                                                                                                
5:58:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  announced that six  testifiers in support  of the                                                               
Juneau  Access  road project  and  six  testifiers in  opposition                                                               
would be permitted  to testify. If time allowed,  others would be                                                               
heard on this issue after all other testimony was concluded.                                                                    
                                                                                                                                
5:58:48 PM                                                                                                                    
                                                                                                                                
MICHAEL  CATSI, Councilmember,  City  of  Skagway, testified  via                                                               
teleconference from  an offnet location  in Skagway to  thank the                                                               
Committee  for  funding  for  the Skagway  Clinic.  The  City  of                                                               
Skagway is  officially in  opposition to  the Juneau  Access road                                                               
project and  supports improvements to the  Marine Highway System.                                                               
This position is based on  ballot referendums voted on by Skagway                                                               
residents. A  proposed road  and terminal at  Cascade Point  is a                                                               
preferable option.                                                                                                              
                                                                                                                                
6:02:02 PM                                                                                                                    
                                                                                                                                
WALLACE  "SANDY"   WILLIAMS  testified   in  Juneau   to  dispute                                                               
information  presented  by  those  in opposition  of  the  Juneau                                                               
Access road  project. Operating  costs would  not be  higher than                                                               
that of the Marine Highway System  and travel on this route would                                                               
be less expensive than traditional vessel fares.                                                                                
                                                                                                                                
6:05:40 PM                                                                                                                    
                                                                                                                                
DICK KNAPP  testified in Juneau  to request full funding  for the                                                               
Juneau  Access  road  project. Funding  this  project  would  not                                                               
result  in reduced  funding for  road projects  elsewhere in  the                                                               
state. He  supported construction  of a  road and  utilization of                                                               
the Marine Highway System as a shuttle service.                                                                                 
                                                                                                                                
6:08:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  requested  the  data Mr.  Knapp  cited  in  his                                                               
testimony  [copy on file].                                                                                                      
                                                                                                                                
6:08:56 PM                                                                                                                    
                                                                                                                                
JIM BECKER testified in Juneau  that the Juneau Access road would                                                               
be beneficial  to the  seafood industry.  Fresh seafood  could be                                                               
delivered to markets faster and at  a lower cost if the road were                                                               
constructed.                                                                                                                    
                                                                                                                                
6:12:04 PM                                                                                                                    
                                                                                                                                
MERILL SANFORD,  Assembly Member,  testified in Juneau  about the                                                               
importance  of  improved access  to  the  capital city.  Alaskans                                                               
support road access to their government center.                                                                                 
                                                                                                                                
6:15:25 PM                                                                                                                    
                                                                                                                                
PAULETTE  SIMPSON testified  in  Juneau in  favor  of the  Juneau                                                               
Access road  project. She had  once testified to  the legislature                                                               
in opposition of the construction  of two fast ferry vessels. The                                                               
costs for  travelers using  the road and  shuttle ferry  would be                                                               
considerably less than fares on the Marine Highway System.                                                                      
                                                                                                                                
6:18:42 PM                                                                                                                    
                                                                                                                                
BOB MARTIN testified  in Juneau that his career has  been in road                                                               
building  and  rural  utility  construction.  He  spoke  in  full                                                               
support of  the Juneau Access  road project. Goldbelt,  Inc., the                                                               
Juneau area  Native Corporation,  would benefit from  road access                                                               
to  Juneau. The  corporation would  be able  to develop  its land                                                               
holdings for the economic benefit of its shareholders.                                                                          
                                                                                                                                
6:22:02 PM                                                                                                                    
                                                                                                                                
GARY FREITAG,  President, Tongass  Coast Aquarium,  testified via                                                               
teleconference from Ketchikan to  request restoration of proposed                                                               
funding  for this  project. This  facility would  assist economic                                                               
development in the community and Prince of Wales region.                                                                        
                                                                                                                                
6:25:31 PM                                                                                                                    
                                                                                                                                
Senator Stedman  informed the  witness that  $1 million  has been                                                               
included  for this  project in  the  recent committee  substitute                                                               
before the members.                                                                                                             
                                                                                                                                
6:26:08 PM                                                                                                                    
                                                                                                                                
TED SMITH, Mayor,  City of Petersburg, testified  in Juneau about                                                               
the  need to  expand  the community  museum,  replace the  public                                                               
works facility and  improve the South Mitkof  Highway. The inter-                                                               
island ferry  terminal located at  the end  of this road  is near                                                               
completion and  use of the  road would  increase. The road  is in                                                               
poor  condition and  is  nearly impassable  in  winter. The  City                                                               
would  be  willing  to  provide the  requested  funding  for  the                                                               
Petersburg  hospital Tele-Medicine  Network project  if the  City                                                               
were provided a revenue sharing grant from the State.                                                                           
                                                                                                                                
6:30:54 PM                                                                                                                    
                                                                                                                                
MONICA  SCHULTZ testified  via teleconference  from Ketchikan  in                                                               
support  of the  Tongass  Coast Aquarium  project. The  requested                                                               
funding would allow for completion of the planning phase.                                                                       
                                                                                                                                
6:31:57 PM                                                                                                                    
                                                                                                                                
PAULA SCHULTZ  testified via  teleconference from  Ketchikan that                                                               
the stable  jobs that  the Tongass  Coast Aquarium  would provide                                                               
would  allow local  youth  to remain  in the  area,  both at  the                                                               
facility and though fisheries developed  and improved as a result                                                               
of research conducted at the facility.                                                                                          
                                                                                                                                
6:32:43 PM                                                                                                                    
                                                                                                                                
KAYE  KANNE,  Executive  Director, Juneau  Family  Birth  Center,                                                               
testified  in Juneau  to request  restoration  of the  Governor's                                                               
proposed  $300,000  appropriation  for   construction  of  a  new                                                               
facility. Two-thirds  of the necessary  funding has  already been                                                               
raised. The new facility would  allow the Center to expand health                                                               
care services to low-income residents.                                                                                          
                                                                                                                                
6:34:55 PM                                                                                                                    
                                                                                                                                
SANTE LESH,  Board Member, Juneau Family  Birth Center, testified                                                               
in  Juneau  that  she was  a  client  of  the  Center and  was  a                                                               
participant  of the  Denali KidCare  Medicaid insurance  program.                                                               
Delivery  of a  baby at  the hospital  could cost  up to  $30,000                                                               
compared to $2,000 to $3,000 at the Center.                                                                                     
                                                                                                                                
6:36:31 PM                                                                                                                    
                                                                                                                                
SARA   LAWSON,   Project    Coordinator,   White   Cliff   School                                                               
Redevelopment   Project,   testified  via   teleconference   from                                                               
Ketchikan to request $3.7 million  for the project. She described                                                               
the arts  and senior  citizen activities  that would  utilize the                                                               
facility.                                                                                                                       
                                                                                                                                
Senator  Stedman  noted  that  this   funding  request  had  been                                                               
submitted, although he was unsure whether it would be approved.                                                                 
                                                                                                                                
6:40:04 PM                                                                                                                    
                                                                                                                                
BOB   WEINSTEIN,  Mayor,   City  of   Ketchikan,  testified   via                                                               
teleconference  from Ketchikan  to request  that funding  for the                                                               
Tongass Coast Aquarium be restored  to the amount proposed by the                                                               
Governor. The facility would serve  as an educational and tourism                                                               
center. This project should not  be considered as benefiting only                                                               
Ketchikan, as  its research  would benefit  coastal areas  of the                                                               
State.                                                                                                                          
                                                                                                                                
6:42:51 PM                                                                                                                    
                                                                                                                                
KATE  MCCARTNEY,  Board  Member,   Juneau  Family  Birth  Center,                                                               
testified in Juneau to request  funding for the new facility. The                                                               
Center would expand services provided  through Denali KidCare and                                                               
Medicaid. Fees are assessed to  clients on a sliding scale, based                                                               
on income.                                                                                                                      
                                                                                                                                
6:44:30 PM                                                                                                                    
                                                                                                                                
MICHAEL MILLER,  Founder, Cancer Connection, testified  in Juneau                                                               
that the  provider would  occupy space in  the new  Juneau Family                                                               
Birth Center.  He described the  support and social  services the                                                               
Connection provides.                                                                                                            
                                                                                                                                
6:46:31 PM                                                                                                                    
                                                                                                                                
Senator Dyson noted  Mr. Miller is the son of  the former Senator                                                               
Miller and  has taken  his personal hardship  as a  cancer victim                                                               
and is utilizing his experiences for the benefit of others.                                                                     
                                                                                                                                
Co-Chair Wilken associated himself with Senator Dyson's remarks.                                                                
                                                                                                                                
6:47:13 PM                                                                                                                    
                                                                                                                                
BRUCE  WALLACE, Commercial  Fisher, testified  via teleconference                                                               
from Ketchikan, that he has  observed the efforts in creating the                                                               
Tongass Coast  Aquarium. The State  should support  this project,                                                               
as it is important to resource development.                                                                                     
                                                                                                                                
6:48:05 PM                                                                                                                    
                                                                                                                                
TOMI  MARSH  testified  via   teleconference  from  Ketchikan  to                                                               
request  $5  million  for  the  Tongass  Coast  Aquarium.  It  is                                                               
important to the commercial fishing industry.                                                                                   
                                                                                                                                
6:49:02 PM                                                                                                                    
                                                                                                                                
TINA  WILLIAMS, testified  via teleconference  from Ketchikan  in                                                               
support the Tongass Coast Aquarium.  Efforts on this project have                                                               
been underway  since 1992. The  requested $5 million  would allow                                                               
groundbreaking on construction of  the facility. This project has                                                               
unanimous support from the community.                                                                                           
                                                                                                                                
6:51:53 PM                                                                                                                    
                                                                                                                                
Senator Stedman thanked the Ketchikan residents who testified.                                                                  
                                                                                                                                
6:52:15 PM                                                                                                                    
                                                                                                                                
SKIP ELLIOTT,  Elliott Financial Management, testified  in Juneau                                                               
to the importance of reasonable  and prudent expenditure of State                                                               
revenues. The Juneau Access road  project would not be reasonable                                                               
or prudent.  Given the  financial situation  of the  country, the                                                               
federal funds should be returned.                                                                                               
                                                                                                                                
6:55:32 PM                                                                                                                    
                                                                                                                                
ALBERT  JUDSON  testified in  Juneau  about  diversity, which  is                                                               
defined  as  having different  opinions.  He  opposed the  Juneau                                                               
Access road  project because the  majority of Juneau,  Haines and                                                               
Skagway residents  have voted to  support improved  ferry service                                                               
over  a  road.   Funding  would  be  better   spent  on  bridges,                                                               
specifically  a  second  crossing   between  Douglas  Island  and                                                               
mainland Juneau.                                                                                                                
                                                                                                                                
7:01:12 PM                                                                                                                    
                                                                                                                                
GEORGE POOR testified in Juneau that  he is the chief engineer of                                                               
the  M/V Fairweather  fast  ferry in  the  Alaska Marine  Highway                                                               
System.  He  opposed the  Juneau  Access  road project,  in  part                                                               
because the  road would travel  through many avalanche  areas. If                                                               
the road  were constructed, he urged  continued financial support                                                               
of the Marine Highway System.                                                                                                   
                                                                                                                                
7:03:39 PM                                                                                                                    
                                                                                                                                
BRETT  FARRELL, Alaska  Marine Exchange  of Alaska,  testified in                                                               
Juneau  in  support of  the  Alaska  Marine Safety  and  Security                                                               
Grant. He  told of  the maritime  safety projects  undertaken and                                                               
planned.   The  Exchange   was   established   with  an   initial                                                               
appropriation of funds from the Exxon Valdez Settlement.                                                                        
                                                                                                                                
7:06:33 PM                                                                                                                    
                                                                                                                                
BRITT WATTERS testified  in Juneau that as a  health care worker,                                                               
he considered  many projects addressing  health and  safety needs                                                               
of Alaskans  are of higher  priority than the Juneau  Access road                                                               
project.  The  primary  beneficiary  of the  Juneau  Access  road                                                               
project would be construction companies.                                                                                        
                                                                                                                                
Co-Chair Green announced that public  testimony was concluded and                                                               
that  those who  had signed  up to  testify regarding  the Juneau                                                               
Access project would not be heard.                                                                                              
                                                                                                                                
7:10:10 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken spoke  to the  Juneau Access  road project.  The                                                               
legislature  has  struggled  with  the increasing  costs  of  the                                                               
Alaska Marine  Highway System.  A misunderstanding  persists that                                                               
ferry  service   would  be   improved  if   the  road   were  not                                                               
constructed. Instead, a  new system of roads  and shuttle ferries                                                               
would  be  created.  Alaskans  would  be  unwilling  to  continue                                                               
funding the current  system and Juneau residents  should have the                                                               
same opportunities  for road  access that he  has as  a Fairbanks                                                               
resident.                                                                                                                       
                                                                                                                                

Document Name Date/Time Subjects