Legislature(2013 - 2014)SENATE FINANCE 532
02/20/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB119 || SB120 | |
| Fy15 Governor's Budget Overviews: Department of Labor and Workforce Development | |
| Fy 15 Govervor's Budget Amendments | |
| Fy15 Governor's Budget Overview: Department of Fish and Game | |
| Fy15 Governor's Budget Overview: Department of Education and Early Development | |
| Fy15 Governor's Budget Overview: Department of Revenue/ Alaska Housing Finance Corporation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 120 | TELECONFERENCED | |
| += | SB 119 | TELECONFERENCED | |
SENATE BILL NO. 119
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds."
SENATE BILL NO. 120
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, and making
reappropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund."
Co-Chair Meyer discussed housekeeping.
9:09:04 AM
^FY15 GOVERNOR'S BUDGET OVERVIEWS: DEPARTMENT OF LABOR and
WORKFORCE DEVELOPMENT
9:09:50 AM
GREY MITCHELL, ASSISTANT COMMISSIONER, DEPARTMENT OF LABOR
AND WORKFORCE DEVELOPMENT, provided a general introduction
to the department's capital budget requests for FY15, which
totaled $9,170,000.
9:11:09 AM
PALOMA HARBOUR, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, spoke to the
details of the capital requests:
RN 48826
Heavy Equipment Shop/Diesel Shop/Pipe Welding
$8,000,000
Brief Summary and Statement of Need:
The second phase for the Alaska Vocational Technical
Center's (AVTEC) Heavy Equipment Shop/Diesel Shop/Pipe
Welding Relocation project will continued work
necessary to replace an existing facility with known
life, safety, code and ADA deficiencies. Phase two of
this project will include construction of a 13,000
square foot steel fabricated building and relocation
of the Heavy Equipment and Medium/Heavy Truck
Technology programs from the currently deficient
space.
Project Description/Justification:
The Alaska Vocational Technical Center (AVTEC)
supports the department's mission by training Alaskans
for employment in Alaska. The Diesel/Heavy
Equipment/Truck Technologies program at AVTEC produces
36 trained Alaskans per year that are highly sought
after by the mining, construction, oil/gas, and
transportation industries for employment. With a
nearly 100 percent job placement rate, this program is
a stellar performer preparing Alaska residents for
good wage jobs with opportunity for advancement.
AVTEC's Combination Welding program trains
approximately 28 Alaskans per year in the highly
sought after areas of structural and pipe welding. Co-
locating the two parts of this program will lead to
efficiencies and expand the capacity of the pipe
portion of the program.
The existing Pipe Welding, Heavy Equipment, and
Medium/Heavy Truck Technology program shops are housed
in a pre-engineered metal building that was
constructed in the early 1970s. In October 2012, the
department contracted with an engineering firm to
complete a structural review of this facility. The
review confirmed previous findings that the facility
lacked sufficient lateral support for any repair or
replacement of the roof to occur. The engineers cited
the building as hazardous and dangerous.
Phase one of this project was funded in FY2014 (Sec 1,
Ch 16, SLA 13, Pg 68, Ln 26) and included site
preparation, utilities, and construction of an 8,000
square foot Diesel shop; and relocation of the Pipe
Welding program from the current deficient facility to
the vacated Diesel space.
Phase two of this project will include: 1)
construction of an 13,000 square foot steel fabricated
facility to house the Heavy Equipment and Medium/Heavy
Truck Technologies programs; and 3)relocation of the
Heavy Equipment and Medium/Heavy Truck Technologies
programs to the new facility from a building with
known life, safety, code and Americans with
Disabilities Act (ADA)deficiencies.
9:12:23 AM
Senator Hoffman inquired where the operation dollars would
come from. Ms. Harbour responded that the new facility
would have less heat loss and would therefore cost less in
operating dollars than the old facility.
9:12:50 AM
Senator Dunleavy inquired where the AVTECH funding came
from. Ms. Harbour responded that AVTECH was supported with
general funds, fees generated from students, funding from
interagency agreements and statutory designated program
receipt revenue.
Senator Dunleavy understood that the program was open to
all Alaskans. Ms. Harbour replied yes. Senator Dunleavy
asked whether all programs related to labor training were
open to all Alaskans. Ms. Harbour said yes.
9:13:46 AM
Ms. Harbour continued:
RN 58337
Employment and Training Services Public Access Network
$170,000
Brief Summary and Statement of Need:
This project will develop infrastructure to a public
access network infrastructure which includes hardware
and software acquisition and installation. The public
network will address security audit findings related
to allowing anonymous access on job center computers
to the state's wide area network. These job center
computers are critical to the department's mission to
connect Alaskans to gainful employment.
Project Description/Justification:
Recent state legislative security audits have pointed
to public access computers on the state network as a
potential security threat.
Providing internet resources in the Job Services
Offices allows clients to access the various services
available with the support and guidance of the job
center staff. Without internet access to resources for
clients, Job Services would be less effective.
RN 48821
Deferred Maintenance, Renewal, Repair and Equipment
$1,000,000
Brief Summary and Statement of Need:
This project will provide deferred maintenance funding
for the Alaska Vocational Technical Center's (AVTEC)
16 buildings in Seward. Specific projects related to
this request include student apartment repairs and
remodels; replacement of lighting, doors, and
baseboard heaters and zone valves to improve energy
efficiency at the applied technologies facility, and
replacement of ceiling tiles and carpet within the
First Lake Campus' three facilities.
^FY 15 GOVERVOR'S BUDGET AMENDMENTS
9:16:39 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, directed committee attention to the
amendment spreadsheets for the supplemental, operating and
capital budgets (copy on file). She spoke to the FY14
supplemental spreadsheet, which listed the following
proposed amendments totaling $32,700.0:
Department of Commerce, Community and Economic
Development
Capital
General Fund
$32,700.0
Susitna-Watana Hydroelectric Project
This project supports the Susitna-Watana Hydroelectric
project and provides for continued progress of field
studies needed to file a Susitna-Watana Hydroelectric
Project Federal Energy Regulatory Commission (FERC)
license application. The sum of $32,700,000 is
appropriated from the general fund to the Alaska
Energy Authority (AEA) for the Susitna-Watana
Hydroelectric Project contingent upon AEA obtaining
and holding valid executed land access permits needed
to conduct field studies and other activities.
Ms. Rehfeld addressed line 3 of the spreadsheet:
Fuel Branch-wide Unallocated
Appropriation
General Fund
$0.0
Reappn: sec. 22e(1), ch. 14, SLA 2013
Reappropriation for costs and lost revenue associated
with the Tustumena cancelled service and repairs.
The unexpended and unobligated balance, estimated to
be
$2,500,000, of the appropriation made in sec. 22(a)
and (b) and allocated in sec. 22(e)(1), ch. 14, SLA
2013, page 75, lines 27-28 (Department of
Transportation and Public Facilities fuel and utility
costs) is reappropriated to the Alaska marine highway
system fund (AS 19.65.060(a)) to cover costs and lost
revenue associated with the Tustumena cancelled
service and repairs.
Ms. Rehfeld pointed to line 4 of the spreadsheet:
Fuel Branch-wide Unallocated
Appropriation
General Fund
$0.0
Reappn: sec. 22e(1), ch. 14, SLA 2013
Reappropriation to Alaska marine highway system vessel
replacement fund (AS 37.05.550).
The unexpended and unobligated balance, after
application of the amount appropriated in (b) of this
section, estimated to be $5,000,000, of the
appropriation made in sec. 22(a) and (b) and allocated
in sec. 22(e)(1), ch. 14, SLA 2013, page 75, lines 27-
28 (Department of Transportation and Public Facilities
fuel and utility costs) is reappropriated to the
Alaska marine highway system vessel replacement fund
(AS 37.05.550).
Ms. Rehfeld spoke to the 1 page Governors Amended Summary
(copy on file), which listed the different components of
the operating budget; Operating Agencies - Non-Formula
requests $9,770.3, Formula programs reflected a small
decrement of $150.0, Debt Services reflected a reduction of
$10,512.3 and a reduction in Fund Transfers of $10,000.0.
She noted that there was one capital amendment up for
consideration. She turned to the Operating Amendments
spreadsheet (copy on file). She noted that the three
requests on Page 1 were related to the affordable care act:
Department of Administration
Finance
General Fund
FY2015 December Budget: $10,836.9
FY2015 Total Amendments: $61.3
FY2015 Total: $10,898.2
Patient-Centered Outcomes Research Institute
Mandated by Patient Protection and Affordable
Care Act
The Patient Protection and Affordable Care Act imposes
a fee for self-insured active health plans to fund the
Patient-Centered Outcomes Research Institute (PCORI)
trust fund. This is a new request for FY2015. It was
not included in the FY2015 Governor's budget because
it was unclear if the state would continue to pay
mandatory and unanticipated fees and taxes that are
related to the Affordable Care Act and imposed upon
the state from the federal government. There was
discussion regarding potential litigation and it was
determined that these fees and taxes should be paid to
avoid penalties even if the state entered into
litigation.
Department of Administration
Retirement and Benefits
General Fund
FY2015 December Budget: $16,984.7
FY2015 Total Amendments: $3,268.0
FY2015 Total: $20,252.7
Patient-Centered Outcomes Research Institute
Mandated by Patient Protection and Affordable
Care Act
The Patient Protection and Affordable Care Act imposes
a fee for self-insured retiree health plans to fund
the Patient-Centered Outcomes Research Institute
(PCORI) trust fund. This is a new request for FY2015.
It was not included in the FY2015 Governor's budget
because it was unclear if the state would continue to
pay mandatory and unanticipated fees and taxes that
are related to the Affordable Care Act and imposed
upon the state from the federal government. There was
discussion regarding potential litigation and it was
determined that these fees and taxes should be paid to
avoid penalties even if the state entered into
litigation.
Department of Administration
Retirement and Benefits
1017 Benefits Systems Receipts
1,121.4
1029 Public Employees Retirement System Fund
1,485.0
1034 Teachers Retirement System Fund
588.0
1042 Judicial Retirement System
5.6
FY2015 December Budget: $16,984.7
FY2015 Total Amendments: $3,268.0
FY2015 Total: $20,252.7
Reinsurance Fee Mandated by Patient Protection and
Affordable Care Act
The Patient Protection and Affordable Care Act imposes
a mandatory, temporary, three-year transitional
reinsurance program to help stabilize premiums in the
individual health insurance market from 2014 to 2016.
This is a new request for FY2015. It was not included
in the FY2015 Governor's budget because it was unclear
if the state would continue to pay mandatory and
unanticipated fees and taxes that are related to the
Affordable Care Act and imposed upon the state from
the federal government. There was discussion regarding
potential litigation and it was determined that these
fees and taxes should be paid to avoid penalties even
if the state entered into litigation.
Ms. Rehfeld turned to Page 2:
Department of Administration
Elected Public Officers Retirement System Benefits
General Fund
FY2015 December Budget: $2,248.1
FY2015 Total Amendments: -$150.0
FY2015 Total: $2,098.1
Elected Public Officers Retirement System Cost
Savings
This amendment reduces authority needed for Elected
Public Officers Retirement System due to the reduction
of members. This is a new request for FY2015. It was
not included in the FY2015 Governor's budget because
the actuarial completed its review after the FY2015
Governor's budget was released.
Department of Administration
Office of Public Advocacy
General Fund
FY2015 December Budget: $25,197.7
FY2015 Total Amendments: $193.0
FY2015 Total: $25,390.7
Caseload Capacity and Appellant Backlog
Funding to accommodate case load increases and to
begin to address the appellant backlog. This amendment
provides FY2015 funding based on a FY2014 supplemental
request in the same amount.
Department of Administration
Public Defender Agency
General Fund
FY2015 December Budget: $26,287.0
FY2015 Total Amendments: $650.0
FY2015 Total: $26,937.0
Caseload Capacity and Appellant Backlog
Funding to accommodate case load increases and to
begin to address the appellant backlog. This amendment
provides FY2015 funding based on a FY2014 supplemental
request in the same amount.
9:24:23 AM
Ms. Rehfeld discussed Lines 7 through 10 of the spread
sheet:
Department of Natural Resources
Agricultural Development
Statutory Designated Program Receipts
FY2015 December Budget: $2,542.6
FY2015 Total Amendments: $25.0
FY2015 Total: $2,567.6
Phytosanitary Certification for Export of Logs and
Plant Products
An increase in phytosanitary inspections, primarily
due to China's increased demand for Alaska logs,
requires additional receipt authority to charge
businesses for the expense of conducting inspections,
including travel, issuing the official certificate and
documentation, and reimbursing a fee to the U.S.
Department of Agriculture. This amendment provides
FY2015 funding based on an FY2014 RPL request in the
same amount.
Department of Public Safety
Special Projects
General Fund
FY2015 December Budget: $7,637.4
FY2015 Total Amendments: $2,200.0
FY2015 Total: $9,837.4
Restore the Alaska Bureau of Highway Patrol
This amendment restores $2.2 for the Alaska Bureau of
Highway Patrol in the FY2015 budget. This funding will
retain dedicated resources for enforcement in Alaska's
highway safety corridors.
University of Alaska
Various
General Fund
1,686.5
University Receipts
1,686.5
FY2015 December Budget: $775,355.0
FY2015 Total Amendments: $3,373.0
FY2015 Total: $778,728.0
United Academics Salary and Benefit Increases
The negotiated compensation increase for salary and
benefits for United Academics faculty includes a two
percent across-the-board adjustment and a one-time
lump sum payment of $750 per eligible unit member for
a system-wide total of $3,373.0. This is a new request
for FY2015. It was not included in the FY2015
Governor's budget because the contract was still under
negotiations.
Fund Transfers
Permanent Fund Earnings Reserve to Permanent Fund
Principal
Permanent Fund Earnings Reserve Account
FY2015 December Budget: $975,000.0
FY2015 Amendments: -$10,000.0
FY2015 Total: $965,000.0
FY2015 December 31, 2013 Projection Update
The December 31, 2013 projection for the transfer from
the earnings reserve account (AS 37.13.145) to the
principal of the Alaska permanent fund is estimated to
be $965 million, down from the $975 million estimate
in the October 31, 2013 projection used when the
December budget was released.
9:27:11 AM
Senator Dunleavy asked whether the United Academics Salary
and Benefits Insurance would be covered by University
funds. Ms. Rehfeld replied that the University had been
negotiating with the bargaining unit and that an agreement
had not been in place when the budget was released in
December 2013. She noted that half of the request was paid
for by university receipts and half state general fund.
Senator Dunleavy understood that the University was asking
the state for more money to cover the recently negotiated
contract. Ms. Rehfeld said that in order for all state
agencies and state bargaining unit agreements to go into
effect the legislature would have to approve the funding.
9:28:39 AM
Ms. Rehfeld directed the committee's attention to page 3,
line 11 of the spreadsheet:
Department of Corrections
Anchorage Correctional Complex
General Fund
FY2015 December Budget: $27,568.3
FY2015 Total Amendments: $0.0
FY2015 Total: $27,568.3
Delete General Fund for Federal Receipts
Contingency
Delete the contingency language section appropriating
lost federal receipts with general funds.
9:29:05 AM
Senator Dunleavy inquired whether the university did the
negotiations itself or if the state negotiated contract for
the University. Ms. Rehfeld responded that the University
itself conducted the negotiations.
9:29:23 AM
Senator Dunleavy noted that the process differed for school
districts. Ms. Rehfeld explained that the university was a
state agency. She added that through the school funding
formula was the vehicle for fund distribution for school
districts.
Senator Dunleavy commented that there would be future
discussions surrounding the generous funding for adult
training while at the same time there would be arguments
about the amount of money put into school districts to fund
a constitutionally mandated program.
9:31:22 AM
Co-Chair Meyer interjected that school districts had the
incentive to keep costs down because their funds were
limited. He furthered that the University negotiated their
wages and benefits knowing that the state would pay it; he
wondered whether the University had any incentive to keep
its costs down. Ms. Rehfeld replied that the university was
mindful of the revenue situation and to what other state
bargaining units had agreed.
9:32:13 AM
Vice-Chair Fairclough shared that her subcommittee would be
reviewing the labor negotiations.
9:32:34 AM
Senator Hoffman shared that Alaska used to have a state
operated school system, but that SB 35 had made the change
for more local control, which had been per the wished of
school districts of the time.
9:33:04 AM
Co-Chair Meyer thought that an option was to fund the
amount partially and make up the rest through student
receipts.
9:33:25 AM
Ms. Rehfeld addressed Lines 12 and 13 of the spread sheet:
Debt Services
General Obligation
General Fund
FY2015 December Budget: $88,120.2
FY2015 Amendments: -$10,000.0
FY2015 Total: $78,120.2
FY2015 Funding for Series 2014A
The FY2015 Governor's budget estimated the 2014A issue
amount at $300,000,000 with an estimated FY2015 debt
service to be $20,000,000. Project cash flow based on
actual and projected expenditures for the authorized
infrastructure projects was updated in February 2014
and reflects diminished spending. This updated
analysis changes the estimated size of the 2014A issue
to $170,000,000. This amendment reduces the debt
service amount to $10,000,000, which corresponds with
the reduction in planned issuance amount.
Debt Services
Jail Construction Reimbursement
General Fund
FY2015 December Budget: $21,928.8
FY2015 Amendments: -$512.3
FY2015 Total: $21,416.5
FY2015 Funding - Anchorage Jail
As a result of a 2012 cash defeasance (Sec17, Ch5,
FSSLA2011, P158, L7) for principal and interest due
for the Municipality of Anchorage lease (Anchorage
Jail), sufficient cash is available to be applied
toward the next payments due in August 2014 and
February 2015. The general fund amount needed for
FY2015 debt service can therefore be reduced by
$512,276.
Ms. Rehfeld spoke to Lines 1 through 5 of the capital
amendment spread sheet (copy on file):
Commerce, Community and Economic Development
Appropriation
General Fund
$0.0
Alaska Energy Authority - Susitna-Watana Hydroelectric
Project
This amendment updates the projected future year
funding needed to reflect a FY2014 supplemental
request in the amount of $32.7 million and other
updated information.
Department of Natural Resources
Appropriation
Exxon Valdez Oil Spill Settlement
$580.8
Exxon Valdez Oil Spill Trustee Council Land
Acquisition for
Public Access on Lower Kenai River
This is a new FY2015 project to purchase the Stewart
and Beeson parcels, located on the lower Kenai River.
This purchase will allow for riverbank restoration,
provide valuable public access, assist in resource
management, and provide benefits to local communities.
Department of Transportation and Public Facilities
Allocation
Marine Highway Systems Fund
$6,000.0
Alaska Marine Highway System - Vessel and Terminal
Overhaul and Rehabilitation
The FY2015 Governor request is being increased from
$6,000,000 to $12,000,000, providing an additional
$6,000,000 from the Alaska Marine Highway System Fund.
Department of Transportation and Public Facilities
Appropriation
Federal
Receipts
6,299.5
General Fund
2,497.5
Capital Improvement Project Receipts
903.0
Aniak High School White Alice Communication System
Site
Clean-up
This is a new FY2015 capital project. The Aniak High
School, located on a former White Alice Communications
System site, requires environmental cleanup. Costs
will be shared by the three entities that have used
the site - the federal and state government and
private contractors.
9:37:50 AM
Vice-Chair Fairclough referenced Line 5 of the capital
amendments spreadsheet. She queried the state's involvement
and asked whether the difference would be picked by the
federal government. Ms. Rehfeld replied that the state had
a responsibility to help with the clean-up because the
Department of Transportation and Public Facilities owned
the property and the Department of Education was
responsible for the school. She added that a portion of the
request was repayment to the Department of Environmental
Conservation's response fund for initial clean-up.
Vice-chair Fairclough read from the project summary:
Aniak High School White Alice Communication System
Site
Clean-up
RN AMD 50905
$9,700,000
Project Description/Justification:
The former White Alice Communications System site was
developed and operated by the United States Air Force
(USAF) in the mid 1950's through the 1970's. The land
was transferred to the state in 1965, under the
Statehood Act, with the provision that the USAF be
allowed to operate it as long as necessary. In 1979,
the USAF issued a license to the Kuspuk School
District to renovate the building for use as a school.
Polychlorinated biphenyl (PCB) contamination resulted
from USAF operations and school district building
renovation activities. The PCB contamination was
discovered in 1981 when the USAF was completing
relinquishment of its interest in the property.
Initial cleanup work was conducted between 1981 and
1983, but in 1997 the cleanup was determined to be
incomplete as PCBs were discovered in the soil around
the building.
Vice-chair Fairclough thought that it was a shame that the
federal government had left the state "holding the bag"
once again.
Co-Chair Meyer expected that there would be follow-up
meetings to discuss the proposed amendments.
9:39:41 AM
AT EASE
9:42:46 AM
RECONVENED
^FY15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF FISH and
GAME
9:42:59 AM
CORA CAMPBELL, COMMISSIONER, DEPARTMENT OF FISH AND GAME,
spoke to the capital projects up for consideration,
totaling $20.7 million.
9:44:21 AM
Ms. Campbell spoke to the department's first priority:
RN 57021
Chinook Initiative
$10,000,000
Brief Summary and Statement of Need:
This capital project will continue to implement the
Department of Fish and Game's Chinook salmon research
plan, developed in response to significant declines in
Chinook salmon returns experienced statewide. These
declines in Chinook salmon production have resulted in
economic and social hardships across many communities
in rural and urban areas of Alaska. Results from this
project will be used to better understand and
characterize changing productivity and abundance
trends. This will ultimately lead to improved Chinook
salmon stock assessment programs so that Alaskans will
have improved harvest opportunities, even during times
of low productivity.
Project Description/Justification:
The first phase of this project began in FY2014, with
projects fielded statewide to initiate estimation of
adult escapement, stock-specific harvests, and
juvenile smolt abundance for those indicator stocks
with gaps in information in these areas. The
department also initiated investigations of local and
traditional knowledge, a near shore marine survey, and
provided funding to the University of Alaska to study
life history processes in Chinook salmon. Continuation
of funding in FY2015 and beyond is required to
successfully field these and the remaining projects to
fill significant gaps in our knowledge of Chinook
salmon statewide. Chinook salmon are critically
important to subsistence, sport, and commercial users,
and to communities and economies across Alaska. Recent
downturns in productivity and abundance of Chinook
salmon across the state and the resulting hardships
have highlighted the significant need for the
department to better understand and characterize the
changing productivity and abundance trends for Chinook
salmon and to identify actions that could be taken to
lessen the hardships experienced by Alaskans that use
and depend on this resource.
To address the decline, the department tasked a team
of agency scientists and researchers with developing a
comprehensive Chinook salmon research plan to address
knowledge gaps and research needs. They conducted a
comprehensive review of Chinook salmon programs and
developed a report entitled "Alaska Chinook Salmon
Knowledge Gaps and Needs" (Gap Analysis) to identify
existing knowledge gaps, identify activities that
could be undertaken to narrow those gaps, and identify
the range of potential costs associated. The
department hosted the Chinook Salmon Symposium in
October 2012, and invited state, federal, and academic
scientists and the public, to discuss and further
identify knowledge gaps and compile a list of research
priorities to address specific questions informing
observations of Chinook salmon abundance and
productivity in Alaska. Results from the Gap Analysis,
discussion at the Chinook Salmon Symposium, and
comments received on the Gap Analysis were combined to
develop the Chinook salmon research plan. Documents
are available online at
http://www.adfg.alaska.gov/index.cfm?adfg=
chinook_efforts_symposium.information
This project will fund the next phase of activities
identified as needed by the Chinook salmon research
plan and initiated in the first phase during FY2014.
The plan is structured on a stock- specific, life-
history basis for twelve indicator stocks from
Southeast Alaska to the Arctic. These stocks include:
Unuk, Stikine, Taku, Chilkat, Copper, Susitna, Kenai,
Karluk, Chignik, Nushagak, Kuskokwim, and Yukon. Stock
assessments to be funded include, for these stocks, a
complete assessment of adult escapement and stock-
specific harvests in all relevant fisheries,
assessment of juvenile Chinook salmon smolt, local and
traditional knowledge studies, nearshore marine
surveys, and life history process studies. This
project is closely aligned with the department's top
two core services of management and stock assessment
and research.
9:47:11 AM
Co-Chair Meyer queried the total cost of the program.
Commissioner Campbell replied $30 million over a five year
period.
Co-Chair Meyer thought that the total cost was very high.
Commissioner Campbell asserted that while it seemed like a
large amount of money, the economic impact of the species
to the state was greater. She contended that the investment
was an important one for the state, both for understanding
the causes the decline and to be able to be confident it
the management in order to provide opportunities for
harvest in a period of low abundance.
9:48:49 AM
Senator Hoffman believed that the proposal would go a long
way in meeting the constitutionally mandated requirements
to maintain fish stocks to maximum sustainability.
9:49:31 AM
Senator Dunleavy asked how the allocations for each river
were decided on. Commissioner Campbell replied that a draft
gap analysis had been conducted for each river system
concerning adult abundance, adult survival, juvenile
survival and juvenile abundance. She said that after the
analysis had been conducted a public symposium had been
held in Anchorage. She stated that through those processes
it was decided where the dollars would be best spent.
9:51:03 AM
Senator Olson expressed concern with the cost of the
program. He asked when positive results from the program
could be expected. Commissioner Campbell thought that it
was important to remember to take a multi-faceted approach
to what was happening with Chinook salmon. She relayed that
the research initiative was on component, but that the
department needed to take every opportunity possible to
provide harvest opportunity on other species where
possible. She asserted that there were other aspects then
research to the program. She stressed that it was important
to look at every stage of the lifecycle to get a complete
picture. She said that the research would result in a more
precise assessment program which would pay dividends for
in-season management on an annual basis.
9:53:56 AM
Senator Bishop thought that as relevant data was gathered
it should quickly translate into solutions. Commissioner
Campbell agreed. She assured the committee that the intent
was not to wait until the end to consider the results of
the have a five-year research program. She explained that
some research would take multi-year data sets in order to
learn from them, but some would have immediate pay-offs.
9:55:18 AM
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, continued the requests:
RN 58645
Intensive Game Management Research and Implementation
$4,000,000
Brief Summary and Statement of Need:
This request will allow the department to continue to
implement intensive management programs and their
associated monitoring program using a combination of
federal funds and general funds to conduct needed
baseline research and monitoring as mandated by
policy. General funds are requested to perform the
actual predation control to prohibit any federal
influence.
Project Description/Justification:
Intensive management involves pre and post population
studies and inventory determinations as well as the
implementation of actual predator control. General
funds are most appropriate for predator control
activities whereas federal/state matched funds are
most appropriate for the biological work. The division
also intends to conduct a subsistence migratory bird
survey under this capital improvement project (CIP).
Federal funding for this work will come through
federal Pittman-Robertson (PR) Wildlife Restoration
funding. The division continues to foresee increasing
apportioned amounts of PR funding to Alaska. Gun and
ammunition sales have continued to increase since the
presidential election of 2012. Recent history would
suggest a drop in gun sales after the election,
however due to national discussions regarding guns and
gun control, gun and ammunition sales continue to
climb and as a result revenue to the PR fund continues
to climb. The result is even greater amount of excise
tax revenue for Wildlife Restoration and Hunter
Education and funds made available for wildlife
management by all states. This CIP will allow the
department to spend these funds while not increasing
the base operating budget.
RN 58647
Habitat Enhancement for Wildlife
$1,000,000
Brief Summary and Statement of Need:
Habitat manipulation can be an effective means to
maintain or increase wildlife populations. By treating
vegetation to enhance winter browse, specifically
birch, aspen and willow, moose populations may
increase over time to again support hunter interests
and viewing opportunities at a viable level. In
addition to the benefits of this program to local
users, tourism and other businesses are likely to
realize benefits as well. This capital improvement
project (CIP) provides for a variety of habitat
enhancement projects across the state.
Project Description/Justification:
One project to be funded is an interagency effort to
enhance moose habitat on the Kenai Peninsula. Due to
the declining moose populations, Alaska Department of
Fish and Game (ADF&G), Division of Wildlife
Conservation (division), seeks to improve habitat
quality, with a focus on Game
Management Unit 15A. Through collaboration with the
Kenai Peninsula Borough, U.S. Fish and Wildlife
Service, Division of Forestry and others, we can
integrate management of wildland fire, mechanical
manipulations and prescribed fire into a strategic
approach to improve moose habitat.
ADF&G is requesting $1,000,000 to facilitate habitat
enhancement projects by partnering with other agencies
to integrate mechanical treatments and fire onto the
landscape in a strategic manner. Funding would be
directed toward private contractors operating on
public and private land along with wild land
firefighters to support interagency burn operations.
This time frame offers agency personnel the time to
plan and coordinate implementation across ownership
boundaries. ADF&G anticipates that over 80% of these
funds would be directed at project implementation -
acres treated on the ground. Remaining funds would
support seedlings, cooperative assistance and other
supplies.
Funding for this work will come through federal
Pittman-Robertson (PR) Wildlife Restoration funding.
The division continues to foresee increasing
apportioned amounts of PR funding to Alaska. Habitat
enhancement is an eligible activity provided the state
meets compliance requirements from the National
Environmental Policy Act (NEPA) and the State Historic
Preservation Act. Gun and ammunition sales have
continued to increase since the presidential election
of 2012. Recent history would suggest a drop in gun
sales after the election, however due to national
discussions regarding guns and gun control, gun and
ammunition sales continue to climb and as a result
revenue to the PR Fund continues to climb. The result
is even greater amount of excise tax revenue for
Wildlife Restoration made available for wild life
management by all states. This CIP will allow the
department to spend these funds while not increasing
the base operating budget.
9:58:28 AM
Senator Dunleavy understood the appropriation was for $1
million. Mr. Brooks responded in the affirmative.
Senator Dunleavy probed interagency cooperation. Mr. Brooks
replied that the work was a collaborative effort. He said
he could get back to the committee with specifics.
9:59:44 AM
Mr. Brooks continued with the capital requests:
RN 30432
Sports Fish Recreational Boating Access
$3,000,000
Brief Summary and Statement of Need:
This request authorizes the Division of Sport Fish to
continue to construct and upgrade recreational power
boating and sport fish access facilities state wide
using Sport Fish Restoration apportionment funds
comprised of 75% federal assistance and 25% non-
federal match. Federal regulations require that 15% of
the annual Sport Fish Restoration (Dingell-
Johnson/Wallop-Breaux Amendment) apportionment will be
dedicated to projects that benefit recreational power
boaters. Projects include boat launches, mooring
floats, parking lots, restrooms, fish cleaning
facilities, and other services. This request proposes
to replace Fish and Game Funds (FGF) with general fund
match due to the decline of FGF revenues for FY2015.
RN 58597
Storage Structure for Hunter Education and Shooting
Range Programs
$800,000
Brief Summary and Statement of Need:
Storage structures are needed to assist the Hunter
Education and Shooting Range programs. Metal buildings
are proposed for construction at the Rabbit Creek
Shooting Park (Anchorage) and by the Fairbanks Indoor
Shooting Range. Training materials, shotgun range
birds, lead filters, and trailers for mobile training
are stored in various places around Raspberry Road and
the College Road campuses.
Prior Funding History / Additional Information:
Secure storage is especially needed for the Fairbanks
range as filters used to trap lead are changed monthly
and must be stored before supervised disposal. A
mobile training trailer requires covered storage
during the winter months in Fairbanks. It is currently
stored in an airplane hangar by a program volunteer
who is selling the hanger.
Project Description/Justification:
The Hunter Education program is coordinated from
Anchorage and Fairbanks and tasks include the shipment
of training materials (guns, books, vests) to
volunteer instructors statewide. At present, materials
are not stored in any central location, greatly
reducing any work efficiency. Materials that are
currently stored are in conex type shipping containers
that are not designed for dry storage. The buildings
will be located on land already owned by the State.
Federal funding through Hunter Education Section 4C of
the Pittman-Roberts on Wildlife Restoration program
can be acquired. An initial grant proposal to the U.S.
Fish & Wildlife Service will be submitted during the
fall 2013 to secure 40% of the funding. A grant
amendment in 2014 after new apportionments are
distributed will add the additional funds up to the
amount of this appropriation. The Fish & Game Fund
will be used as the required match for the federal
funds.
RN 43322
Facilities, Vessels and Aircraft Maintenance, Repair
and Upgrades.
$500,000
Brief Summary and Statement of Need:
This annual request funds repair, maintenance and
renovation of department facilities statewide as well
as vessel and aircraft repair and maintenance.
Facilities funding is managed by the Division of
Administrative Services (DAS), vessel funding by the
Division of Commercial Fisheries and aircraft funding
by the Divisions of Commercial Fisheries and Wildlife
Conservation.
10:02:43 AM
Vice-Chair Fairclough asked whether the department had
partnered with the University on researching some of the
repair issues. Mr. Brooks replied that the department
worked with the University as well as the federal
government when necessary.
10:03:34 AM
RN 45482
Deferred Maintenance, Renewal, Repair and Equipment
$1,400,000
Brief Summary and Statement of Need:
Funding is requested to address deferred maintenance
needs for statewide fish passages, counting and
sampling sites, or weir facilities; statewide
warehouse/workshop facilities; statewide small field
site/camp facilities.
Mr. Brooks stated that the appropriation request contained
four allocations:
Fairbanks Regional Office Compound -
$750,000
Statewide fish passages, counting & sampling sites, or
weir facilities -
$250,000
Statewide warehouse/workshop facilities -
$250,000
Statewide small field site/camp facilities - $150,000
10:05:30 AM
AT EASE
10:08:34 AM
RECONVENED
^FY15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF EDUCATION
and EARLY DEVELOPMENT
10:08:51 AM
MICHAEL HANLEY, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, introduced himself.
10:09:11 AM
HEIDI TESHNER, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, spoke to the
PowerPoint presentation, "Alaska Department of Education &
Early Development: FY2015 Capital Budget Overview"(copy on
file). She spoke to Slide 2:
· Four requests in SB119 totaling $53.2 million:
o State Library, Archives and Museum (SLAM)
Facility Construction
o Kwethluk K-12 Replacement School - Kasayulie
o Alaska Digital Teaching Initiative Three-Year
Demonstration Project
o Mt. Edgecumbe High School Deferred Maintenance
Ms. Teshner addressed Slide 3:
· State Library, Archives and Museum (SLAM) Facility
Construction Funding: $15.0 million UGF
o Partial funding for remaining construction phase.
o Remaining funding will be used for construction
completion, exhibits, furnishings, and
landscaping.
o Total of $102.95 million has been appropriated to
date.
o $22.215 million additional needed by
o July 1, 2014 to finish project on-time
o (July 2016) with no increased costs.
Ms. Teshner stated that the new building was designed to
last 100 years and would pull together the five locations
of the division into one building and enhance the
division's goals to protect Alaska's historical treasures
and allow growth in the collection.
10:10:53 AM
Vice-Chair Fairclough wanted to know how much the state had
additionally paid by not funding the 2014 appropriation.
She asked how much the one year delay was costing the
state.
10:11:51 AM
LINDA THIBODEAU, DIRECTOR, DIVISION OF LIBRARIES, ARCHIVES,
AND MUSEUMS, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
replied that the additional cost was $7 million.
10:12:04 AM
Vice-Chair Fairclough recalled that last year's request had
been short-funded, she queried what the request had been.
Ms. Thibodeau replied that the governor's request was $20
million but that the need at that point had been $50
million.
Ms. Thibodeau responded that the net difference in the
total costs needed was $37.215 million.
Vice-Chair Fairclough inquired if $37.215 million was
needed to complete the project. Ms. Thibodeau added that it
was the amount needed for completion with guaranteed
maximum pricing.
Vice-Chair Fairclough pointed out for the record that the
state had cost itself $7 million by waiting.
10:13:27 AM
Co-Chair Meyer understood that the governor's request for
the project was $15 million. Ms. Thibodeau replied yes, and
that the total need for the building was $37.215 million.
Co-Chair Meyer asked whether the state was losing money by
not funding the full $37.215 million in FY15.
Ms. Thibodeau explained that the red cap on the bar graph
on Slide 4 indicated the department's best estimate of
additional cost requirements.
10:14:38 AM
Vice-Chair Fairclough felt that the project was an example
of how phase funded projects were a problem. She believed
that the project should be fully funded.
10:15:41 AM
Co-Chair Meyer was unsure if it the $37 million could be
spent in one year. He expressed a commitment to the project
but was confused about the additional cost of $9.8 million
reflected on Slide 4. Ms. Thibodeau said that there were
various parts to the additional cost and that details could
be provided at a later date. She added that the $37.215
would not be spent all in one year, but rather contracts
would be finalized to get a guaranteed maximum price that
would finish the building by 2016.
10:16:45 AM
Ms. Teshner spoke to Slide 5:
· Kwethluk K-12 Replacement School - Kasayulie: $31.5
million REAA Fund (DGF)
o For design and construction of a K-12 replacement
school.
o Total cost: $57.7 million
o State Share: $56.5 million
o $25.0 million of State Share appropriated in
FY2014 from the REAA Fund for design, planning,
and foundation work.
10:17:38 AM
Senator Dunleavy queried what the anticipated life of the
building. Ms. Teshner replied that she did not have that
information with her.
10:18:00 AM
Commissioner Hanley turned to Slide 6:
· Alaska Digital Teaching Initiative Three-Year
Demonstration Project: $5.0 million UGF
o Remove barriers, increase opportunity, and access
for Alaska's students.
o Develop high quality, interactive courses to
middle school and high school students focused on
science, technology, engineering, and math
(STEM).
o Funding to support:
o Digital Innovation Districts
o Digital Teaching Academy
o Digital Course Development
o Program Assessment
Commissioner Hanley relayed that he goal of the initiative
was to utilize working models represented in different
districts around the state to reach out and address the
needs of student that did not have the same access.
10:19:32 AM
Commissioner Hanley turned to Slide 7, which was a map of
the state with symbolic representation of the current
digital conditions in the state. He continued to Slide 8,
which illustrated that hope for conditions in the future.
10:21:49 AM
Co-Chair Meyer asked what the red dots on the maps
represented. Commissioner Hanley responded that they
represented the hub. He noted that they had not been placed
in particular communities. He shared that the plan was put
out grants and identify three to five districts that were
already doing similar work, and help to strengthen and
expand.
Co-Chair Meyer understood that the plan was to provide all
of Alaska with access to the courses required to receive
scholarships with the University of Alaska. Commissioner
Hanley replied yes. He noted that the courses were
currently available through the Alaska Learning Network.
10:23:05 AM
Vice-Chair Fairclough referenced a broadband study and
survey, as well as Senator Olson's bill to make a minimum
threshold for broadband access. She asked whether there was
a broadband study that could tell the legislature specific
needs by location. Commissioner Hanley replied no. He
explained that the department was not a broadband
developer. He relayed that the department was researching
models built on its current capacity while recognizing that
broadband was a statewide issue. He declared that increased
broadband would enhance lives and education across the
state. He communicated that the department was looking to
develop models within the capacity already established. He
furthered that 43 of the state's 53 school districts
participated in online courses; the 10 that were not were
not doing so because they did not have access, but because
they had other models in place.
Vice-Chair Fairclough thought that a study had been
conducted during the summer of 2013 that examined broadband
cost drivers for education. She asked who would be
responsible for performing the study. Commissioner Hanley
replied that the Broadband Taskforce had done some work
through the Department of Commerce, Community and Economic
Development. He related that the university had done work
specifically involving the ability of districts to access
online testing.
Vice-Chair Fairclough thought that the better informed the
legislature was on the capacity at regional hubs, the more
likely funds would be used in the best way possible.
10:27:24 AM
Senator Dunleavy thought that the state needed a broadband
technology audit. He thought that this would help the state
understand where the gaps were and where the need was. He
wondered whether schools would be technologically prepared
for broadband in their school.
Commissioner Hanley agreed. He believed that the department
could collaborate with others in order to gather further
information.
10:30:28 AM
Ms. Teshner turned to Slide 9:
· Mount Edgecumbe High School (MEHS) Deferred
Maintenance: $1.7 million UGF
o Funding for projects according to the Capital
Improvement Projects (CIP) Master Plan, or as
MEHS facility management identifies health and
safety priorities.
o Remaining projects on the CIP Master Plan are
estimated at $22.5 million, which is
approximately $4.5 million per year for FY2015
through FY2020.
Co-Chair Meyer asked whether the last bullet point was the
major maintenance list. Ms. Teshner replied no.
Co-Chair Meyer inquired where the major maintenance could
be found. Ms. Teshner replied that there were currently no
projects in the governor's budget on the major maintenance
list. She noted that it was on the department's website and
could be provided at a later date.
Co-Chair Meyer thought that it was important to recognize
and continue to work down the major maintenance list.
10:32:12 AM
Senator Hoffman queried the total cost of the current major
maintenance list. Ms. Teshner responded that there were
currently 102 items on the major maintenance list the
state's share of which was $183.5 million.
10:33:03 AM
Senator Dunleavy understood the list was current. Ms.
Teshner replied yes. Senator Dunleavy asserted that the
list did not necessarily reflect all of the maintenance
issues involving schools in the state. Ms. Teshner said
that was correct.
10:33:14 AM
Co-Chair Meyer requested a hard copy of the list.
10:33:35 AM
Senator Olson did not understand why the major maintenance
list was not at least partially funded in the governor's
budget. Commissioner Hanley replied that the governor had
made the decision in light of the state's current financial
situation. He stressed that their absence from the budget
did not mean that they were not very important and
necessary items.
Senator Olson expressed concern that the list had not been
included in the request.
10:35:06 AM
Co-Chair Meyer thought that the budget was light.
Commissioner Hanley agreed.
10:36:02 AM
AT EASE
10:41:53 AM
RECONVENED
^FY15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF REVENUE/
ALASKA HOUSING FINANCE CORPORATION
10:42:11 AM
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, testified that the
department had two capital project requests totaling
$370,100; $81,624 was general fund match, $158,466 was
federal funds and $130,000 was the Permanent Fund Dividend.
The said that both requests were annual requests for
personal computers, printers and service storage devices.
He said that the request had been funded for the past 10
years.
10:44:14 AM
BRYAN BUTCHER, CHIEF EXECUTIVE OFFICER AND EXECUTIVE
DIRECTOR, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF
REVENUE, commented that the housing market in the state was
the tightest it had been since the recession in the early
to middle 1980s. He said that people were paying 50 to 60
percent of their salaries to stay in their apartments. He
assured the committee that the corporation was aware of the
problem and was looking into solutions.
10:47:02 AM
Co-Chair Meyer noted that some believed that a way to help
with the affordable housing would be to go forward with the
Knik Arm Bridge and Toll Authority (KABATA) project. He
wondered if that was a project that the corporation would
be willing to take on. Mr. Butcher replied that it was a
possibility.
Co-Chair Meyer queried the department's accomplishments.
10:48:20 AM
LES CAMPBELL, DIRECTOR, BUDGET, ALASKA HOUSING FINANCE
CORPORATION, presented a PowerPoint presentation, "Budget
Presentation to Senate Finance Committee February 20,
2014"(copy on file.) He spoke to Slide 1:
RN 54796
Domestic Violence Designation Program (Empowering
Choice Housing Program)
$2,000,000
Purpose: Provide a referral-based transitional housing
assistance program, the Empowering Choice Housing
Program (ECHP), designed to meet the housing needs of
victims of domestic violence and sexual assault.
Projected outcome:
•Rental assistance for up to 254 households statewide;
•Provide voucher assistance in twelve communities; and
•Enhances Governor Parnell's Choose Respect
initiative.
10:50:02 AM
Senator Dunleavy noted that the funds were public funds
that would be used for vouchers. Mr. Campbell replied in
the affirmative.
10:50:31 AM
Vice-Chair Fairclough believed that the item should be in
the operating budget. She recalled that the department had
requested funding for the program in FY14 because those
that were experiencing domestic violence were being given a
higher priority that other homeless people on the list. She
believed that if the state were going to expand the amount
of people that could access housing through a voucher
system, the item belonged in the operating budget. Mr.
Campbell replied that the timing of the program had stopped
the items placement in the operating budget. He said that
operating budget dollars lapsed on June 30, and the
department had a commitment to provide housing on for a
three-year period.
Vice-Chair Fairclough said that the legislature had set
criteria inside of the corporation that prioritized need,
some of which was based on whether a person was in danger.
She reiterated that the request should be put into the
operating budget.
10:54:38 AM
Mr. Campbell spoke to Slide 2:
RN 37918
Housing Loan Program: Teacher / Health / Public Safety
$6,000,000
Purpose: Provide gap funding to increase homeownership
and/or rental units.
Projected outcome:
•Improving retention of desirable professionals
through housing development
Mr. Campbell turned to Slide 3:
RN 49395
Housing Loan Program: Teacher / Health / Public Safety
$5,000,000
Purpose: Provide gap funding to increase homeownership
and/or rental units.
Projected outcome:
•Increase Teachers, Health Professionals, or
Public Safety official's housing in rural Alaska
10:56:07 AM
Co-Chair Meyer asked whether the program had succeeded in
attracting and retaining teachers. Mr. Campbell replied
that it had helped to retain teachers.
10:56:36 AM
Mr. Butcher interjected that AHFC could get back to the
committee with more information.
10:57:20 AM
Senator Dunleavy noted that he lived in the housing for 20
years. He thought that the program was commendable.
10:58:04 AM
Co-Chair Meyer restated his question to Senator Dunleavy.
Senator Dunleavy believed that the program was helping to
retain teachers.
10:58:35 AM
Mr. Butcher stated that at the inception of the program
people did not want to participate, but wanted to wait
until it became a grant program. He said that ultimately
several school districts worked with the corporation on a
model that proved successful in all participating rural
school districts.
10:59:17 AM
Vice-Chair Fairclough asked if the corporation was working
with Cold Climate Research Center to make sure that the
buildings being built were energy efficient. Mr. Butcher
replied in the affirmative. He added that all of the
building programs under the corporation had a requirement
of a high energy efficient standard.
11:00:48 AM
Co-Chair Meyer inquired whether the photos in the slides
were current. Les Campbell replied yes.
11:01:20 AM
Mr. Campbell addressed Slide 4:
RN 49369
Housing Loan Program: VPSO
$1,000,000
Purpose: Provide gap funding to increase homeownership
and/or rental units.
Projected outcome:
•Adding units for Village Public Safety Officers
(VPSO);
•Increasing VPSO retention through housing
development
Mr. Campbell continued to Slide 5:
RN 6323
Supplemental Housing Development Program
$7,000,000
Purpose: Supplement federal housing funds provided to
regional housing authorities to ensure safe, decent,
affordable housing.
Projected outcome:
•Construction of affordable homes in up to 20 urban
and rural communities;
•Build on-site water and sewer facilities;
•Provide energy-efficient design features in homes;
•Construct roads to project sites;
•Provide electrical distribution systems;
•Retrofit homes to provide a safe, healthy, workable
home environment; and
•Provide clients with new, safe, energy efficient,
comfortable housing.
Mr. Campbell turned to Slide 6, which provided images of
the construction of the housing development.
Mr. Campbell addressed Slide 7:
RN 6351
Energy Efficiency Monitoring Research
$750,000
Purpose: Conduct research, analysis, information
dissemination, and interchange among members of the
industry, as well as between the industry and the
public.
Projected outcome:
•Conduct research, analysis, information dissemination
and interchange among members of the industry, and
between industry and the public;
•Gather data and perform analysis of geographically
diverse area energy-efficient designs for homes; and
•Monitor homes for energy usage, comfort levels,
durability, occupant health and economic benefits of
efficiency features.
11:04:33 AM
Vice-Chair Fairclough inquired whether the research was
receiving any additional funding from Alaska Energy
Authority (AEA). Mr. Campbell said that he did not know.
Mr. Campbell spoke to Slide 8:
RN 6334
Senior Citizen's Housing Development Program (SCHDP)
$4,500,000
Purpose: Provide funds for development of senior
citizen housing and accessibility modification to
seniors' residences.
Projected outcome:
•Three development projects or about 30 units;
•Modifications for accessibility for approximately 50
units; and
•Provide technical assistance grants for building
capacity in organizations that develop senior housing.
Mr. Campbell spoke to Slide 9, which contained two pictures
of Raven's View 1 and 2: Cooper Landing Senior Citizens
SCHDP, Denali Commission, AHFC financed 12 units, 2007 and
2008.
Mr. Campbell addressed Slide 10:
RN 6347
HUD Federal HOME Grant Program
$750,000 State General Funds
$3,750,000 Federal Receipts
Purpose: Expand supply of affordable, low- and
moderate- income housing and strengthen ability of
state to design and implement strategies to achieve
adequate supply of safe, energy-efficient and
affordable housing.
Projected outcome:
•Develop affordable rental housing by funding
development gap for three rental projects or about 30
units;
•Assist 35 homebuyers to achieve homeownership for
lower-income families by providing down payment and
closing cost assistance; and
•Preserve low-income homes through a moderate
rehabilitation.
11:07:00 AM
Mr. Butcher interjected that the corporation had recently
begun work with the Department of Correction on the program
in an effort to work toward rental assistance for people
recently released from prison.
Mr. Campbell shared that the program had funded 49 projects
containing 886 units and had rehabilitated 414 low income
homes. He furthered that the program had assisted 409 low
income households to purchase homes and had provided 87
households with rental assistance to prevent homelessness.
Mr. Campbell spoke to Slide 11, which was a picture of the
project Hooper Bay Family Housing.
Mr. Campbell discussed Slide 12:
RN 6342
HUD Capital Fund Program (CFP)
$3,200,000
Purpose: Renovate and modernize public housing rental
units statewide.
Projected outcome:
•Modernize public housing rental units;
•Code compliance; and/or
•Conduct energy audits.
Mr. Campbell spoke to Slide 13:
RN 6348
Federal and Other Competitive Grants
$3,000,000 Federal Receipts
$1,500,000 State General Funds
Purpose: Allow AHFC to apply for HUD, other federal
agency, and private foundation grants that target
housing needs and supportive services of low-income
and groups with needs such as senior citizens, those
with mental, physical, or developmental disabilities,
or homeless Alaskans.
Projected outcome:
•HUD Supportive Housing;
•Housing Opportunities for Persons With AIDS (HOPWA);
•Grant Match Program; and
•OneCPD HUD Technical Assistance Program (Community
Planning Development); and
•Section 811 Housing Program for Persons with
Disabilities.
11:10:50 AM
Mr. Campbell addressed Slides 14 through 16:
RN 6350
Competitive Grants for Public Housing
$750,000 Federal Receipts
$350,000 State General Funds
Purpose: Allow AHFC to apply for HUD, other federal
agency, and private foundation grants that target
housing needs of low-income and groups with special
needs who live in public and/or assisted housing.
Projected outcome:
•Match requirements for federal grants such as:
•Family Self-Sufficiency (FSS) Coordinator and case
workers;
•Senior Services Coordinator; or
•Resident Opportunities and Supportive Services (ROSS)
grant.
•Match for operations of services, such as after-
school programs, public housing developments and
resident computer training labs.
RN 52598
AHFC Energy Programs
$45,000,000 State General Funds
$1,500,000 Federal Receipts
Purpose: Provide cost-effective energy improvements to
homes.
This appropriation has two allocations for:
•AHFC Weatherization Program
•AHFC Energy Rebate Program
RN 50683
AHFC Energy Programs - Weatherization
$27,500,000 State General Funds
$1,500,000 Federal Receipts
Purpose: Provide cost-effective energy improvements to
homes occupied by low-income families throughout the
state.
Projected outcome:
•Reduce household operating costs of the resident;
•Improve resident health and safety;
•Improve durability and longevity of housing stock;
•Replace unsafe heating systems;
•Install smoke detectors and/or carbon monoxide
detectors;
•Create and sustain local jobs
Mr. Butcher interjected that approximately 66 percent of
the houses that had been weatherized contained either a
senior citizen or person with a disability, 37 percent of
the homes contained children under the age of 6 years old.
11:13:07 AM
Co-Chair Meyer acknowledged the good work done through the
program.
Mr. Campbell turned to Slide 17, which contained two
images; one "before", and one "after" image of a home that
had been weatherized.
Mr. Campbell discussed Slide 18:
RN 51947
AHFC Energy Programs - Home Energy Rebate
$17,500,000
Purpose: Assist homeowners to decrease fuel
consumption by providing rebates for making
recommended, cost-effective energy improvements to
their homes throughout the state.
Projected outcome:
•Reduce household operating costs of the resident;
•Improve resident health and safety;
•Improve durability and longevity of housing stock;
•Replace unsafe heating systems; and
•Gather statistical intelligence about home energy
consumption.
Mr. Campbell shared that the program rebate could be up to
$10,000, the average was approximately $7,000.
11:14:51 AM
Co-Chair Meyer inquired about the wait list for the
program. Mr. Campbell replied that the wait list had been
going down. He said that there were approximately 200
people on the waitlist, but that 200 requests were
processed weekly.
11:15:20 AM
Mr. Butcher added that the number of raters for the program
had increased, which had helped to lessen the waitlist.
11:15:51 AM
Senator Hoffman probed the justification for the reduction
in the general fund of $5 million, from previous years, and
then increasing again in 2016 through 2018. Mr. Butcher
replied that the corporation had worked to determine a
reasonable number for this particular fiscal year.
11:16:59 AM
Mr. Cambell spoke to Slide 19:
RN 45390
Homeless Assistance Program (HAP) (Mental Health Bill)
$6,300,000 State General Funds
$850,000 MHTAAR
$850,000 GF/Mental Health
Purpose: Support programs that address homelessness by
providing assistance to families in imminent danger of
becoming homeless or those who are currently homeless.
Projected outcome:
•Prevent near homeless individuals and families from
becoming homeless; and/or
•Provide homeless individuals and families assistance
to obtain safe, sanitary shelter.
11:18:25 AM
Co-Chair Kelly asked how many people were served by the
program. Mr. Campbell replied that in 2013 the program
served 8,750 households containing 12,382 people.
Co-Chair Kelly wondered how a homeless person financially
maintained residency in a home after the assistance was
given. Mr. Campbell replied that many of the funds went
toward support services and financial training for those
individuals.
Co-Chair Kelly asked whether the corporation was involved
with the Housing First program. Mr. Campbell replied yes.
11:20:27 AM
Mr. Butcher interjected the approach was many tiered.
Co-Chair Kelly understood that the corporation's role in
the program was strictly financing.
11:21:11 AM
Mr. Campbell responded that AHFC partnered with different
organizations throughout the state.
Mr. Campbell spoke to Slide 20:
RN 6360
Beneficiary and Special Needs Housing (Mental Health
Bill)
$1,750,000
Purpose: Provide funds for Alaskan nonprofit service
providers and housing developers to increase housing
opportunities to Alaska Mental Health Trust
beneficiaries and other special needs populations
throughout Alaska.
Projected outcome:
•Add 20 congregate housing units for people with
mental illness or developmental disabilities;
•Reduce recidivism among clients spending time in
institutions;
•Provide supportive housing, including assisted
living, for people with mental, physical, or
developmental disabilities, or multiple disorders; and
•Provide transitional housing with support services
for newly recovering alcoholics and addicts.
11:23:22 AM
Co-Chair Meyer discussed housekeeping.
SB 119 was HEARD and HELD in committee for further
consideration.
SB 120 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 022014 AHFC Budget Senate FIN - 2-20-20214_ViewVersion.pdf |
SFIN 2/20/2014 9:00:00 AM |
SB 119 |
| 022014 DEED FY15 Capital Budget Overview SFIN 2_20_2014.pdf |
SFIN 2/20/2014 9:00:00 AM |
SB 119 |
| 022014 DEED MaintenanceFinalListFY15.pdf |
SFIN 2/20/2014 9:00:00 AM |
SB 119 |