Legislature(2003 - 2004)

05/02/2003 04:16 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 100                                                                                                        
     "An  Act making capital  appropriations  and reappropriations;                                                             
     capitalizing a fund;  making appropriations under art. IX, sec.                                                            
     17(c),   Constitution  of  the   State  of  Alaska,   from  the                                                            
     constitutional   budget reserve  fund;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
Amendments  were offered  to CS SB  100, 23-GS1003\Q,  adopted  as a                                                            
working draft at a previous hearing.                                                                                            
                                                                                                                                
Amendment #1:  This amendment renames  the "Fairbanks Public  Health                                                            
Center  Repair and  Back-up Generator  (ED 7-11)"  component in  the                                                            
Department  of Health and Social Services  on page 25, lines  14 and                                                            
15, to be "Fairbanks Public Health Center Repair (ED 7-11)".                                                                    
                                                                                                                                
This amendment also renames  the "Mike Street, Bonanza Road, Nielson                                                            
Way - Chip Sealing,  Drainage, and Recycled Asphalt  Program (ED 17-                                                            
32)" in the Grants  to Municipalities (AS 37.05.315)  Budget Request                                                            
Unit (BRU) in  the Department of Community and Economic  Development                                                            
on page  8, lines 17 -  20 to be "Municipality  of Anchorage  - Mike                                                            
Street,  Bonanza Road,  Nielson Way  - Chip  Sealing, Drainage,  and                                                            
Recycled Asphalt Program (ED 17-32)".                                                                                           
                                                                                                                                
This  amendment also  renames  the "Chugiak  Birchwood  Eagle  River                                                            
Rural Road Service Area  (CBERRRSA) Road and Drainage Rehabilitation                                                            
(ED 17-32)" in  Municipal Capital Matching Grants  (AS 37.06.010) on                                                            
page 55, lines 13-17 to  be "Anchorage Chugiak Birchwood Eagle River                                                            
Rural Road Service Area  (CBERRRSA) Road and Drainage Rehabilitation                                                            
(ED 17-32)".                                                                                                                    
                                                                                                                                
This amendment  also changes the funding source of  $200,000 general                                                            
funds  to other  funds  for  the Snowmobile  Trail  Development  and                                                            
Program Grants  (ED 99) in the Department  of Natural Resources,  on                                                            
page 29,  lines 12 -  14. Accompanying  explanatory language  reads,                                                            
"This change replaces general  funds with receipt supported services                                                            
funding."                                                                                                                       
                                                                                                                                
This amendment  also renames the "City  of Homer/Kachemak  Emergency                                                            
Service Area  - Fast Attack Fire Engine  (ED 33-35)" component  from                                                            
the Grants to  Municipalities (AS 37.05.315) BRU,  in the Department                                                            
of Community  and Economic Development  on page 4, lines  12 - 15 to                                                            
be "Kenai Peninsula  Borough/Kachemak Emergency Service  Area - Fast                                                            
Attack Fire Engine (ED 33-35)".                                                                                                 
                                                                                                                                
This amendment also deletes  the "Fairbanks North Star Borough - Old                                                            
Valdez Trail Construction  (ED 7-11)" component and $302,500 general                                                            
funds  appropriation   from   the  Grants   to  Municipalities   (AS                                                            
37.05.315)  BRU,  in  the  Department  of  Community   and  Economic                                                            
Development on page 6, lines 11 - 13.                                                                                           
                                                                                                                                
This amendment also adds  a "Fairbanks - Improvements to the 23 Mile                                                            
Slue Road between the service  area and Boondox (ED 7-11)" component                                                            
to the Department  of Transportation  and Public Facilities  on page                                                            
33, following line 13 and appropriates $302,500 general funds.                                                                  
                                                                                                                                
This amendment  also deletes  the "Kenai  Peninsula Borough  - Joint                                                            
Municipal Water and Sewer  System Analysis (ED 33-35)" component and                                                            
$150,000   general   fund   appropriation   from   the   Grants   to                                                            
Municipalities  (AS 37.05.315) BRU,  in the Department of  Community                                                            
and Economic Development on page 6, lines 22 - 25.                                                                              
                                                                                                                                
This amendment  also adds a "City  of Kenai - Joint Municipal  Water                                                            
and  Sewer  System  Analysis   (ED  33  -  35)"  to  the  Grants  to                                                            
Municipalities  (AS 37.05.315) BRU,  in the Department of  Community                                                            
and  Economic  Development   on  page  4,  following   line  20  and                                                            
appropriates $75,000 general funds.                                                                                             
                                                                                                                                
This  amendment also  adds a  "City of  Soldotna  - Joint  Municipal                                                            
Water  and  Sewer System  Analysis  (ED  33-35)"  to the  Grants  to                                                            
Municipalities  (AS 37.05.315) BRU,  in the Department of  Community                                                            
and  Economic  Development   on  page  5,  following   line  19  and                                                            
appropriates $75,000 general funds.                                                                                             
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     A net-zero  amendment to a $150,000 appropriation  to the Kenai                                                            
     Peninsula  Borough. The utilities  conducting the analysis  are                                                            
     owned  by the city,  and therefore, the  funds will be  divided                                                            
     equally between the two local governments.                                                                                 
                                                                                                                                
Co-Chair Wilken  moved for adoption and detailed the  items included                                                            
in the amendment. He listed  the first item would delete funding for                                                            
a back-up generator  at the Fairbanks  Public Health Center  because                                                            
the Golden  Valley  Electric Association  was  installing "a  multi-                                                            
million back-up  battery system, the world's largest  battery system                                                            
that will eliminate blackouts and brownouts."                                                                                   
                                                                                                                                
Co-Chair  Wilken  stated  the  second  item,   the  Municipality  of                                                            
Anchorage - Mike  Street, Bonanza Road, Nielson Way  - Chip Sealing,                                                            
Drainage,  and  Recycled  Asphalt  Program, reflects  a  "change  of                                                            
recipient"  of  the funds.  He  stated that  the  Anchorage  Chugiak                                                            
Birchwood Eagle  River Rural Road  Service Area (CBERRRSA)  Road and                                                            
Drainage Rehabilitation (ED 17-32) items is a "name change".                                                                    
                                                                                                                                
Co-Chair  Wilken  explained  the Snowmobile  Trail  Development  and                                                            
Program Grants  item would be funded with SNOWTRAK  funds, generated                                                            
from $25 licensing fees for snow machines.                                                                                      
                                                                                                                                
Senator Taylor  noted this was related to testimony  received by the                                                            
Committee and that he supports this item.                                                                                       
                                                                                                                                
Co-Chair  Wilken   stated  the  Kenai   Peninsula  Borough/Kachemak                                                             
Emergency  Service Area -  Fast Attack Fire  Engine item reflects  a                                                            
recipient  change from  the City  of Homer  to the  Kenai  Peninsula                                                            
Borough                                                                                                                         
                                                                                                                                
Co-Chair  Wilken then noted  that the Old  Valdez Trail and  23 Mile                                                            
Slue Road are different  names of the same road and that the project                                                            
remains unchanged.                                                                                                              
                                                                                                                                
Co-Chair Wilken  informed that the  deletion of the Kenai  Peninsula                                                            
Borough - Joint Municipal  Water and Sewer System Analysis component                                                            
and addition of the City  of Kenai - Joint Municipal Water and Sewer                                                            
System  Analysis  component   and  the  City  of  Soldotna  -  Joint                                                            
Municipal  Water and  Sewer System  Analysis results  in a net  zero                                                            
change. He  stated "utilities conducting  the analysis are  owned by                                                            
the cities and  therefore the funds will be divided  equally between                                                            
the two local governments."                                                                                                     
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Amendment #2:  This amendment deletes  "made for" and inserts  "that                                                            
take effect  in" in  subsection  (b) of Section  13. CONSTITUTIONAL                                                             
BUDGET  RESERVE FUND.,  on page 78,  line 25.  The amended  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
          (b) If the unrestricted state revenue available for                                                                   
     appropriation in fiscal  year 2004 is insufficient to cover the                                                            
     general  fund appropriations  that take  effect in fiscal  year                                                            
     2004, the amount necessary  to balance revenue and general fund                                                            
     appropriations  is appropriated  to the  general fund  from the                                                            
     budget  reserve fund  (art. IX,  sec. 17,  Constitution of  the                                                            
     State of Alaska).                                                                                                          
                                                                                                                                
This  amendment  also  inserts  a  new  subsection  in  Section  13.                                                            
CONSTITUTIONAL  BUDGET RESERVE FUND., on page 78,  following line 27                                                            
to read as follows.                                                                                                             
                                                                                                                                
          (c) The sum of $125,000 is appropriated from the budget                                                               
     reserve  fund (art. IX, sec.  17, Constitution of the  State of                                                            
     Alaska)  to the Department of  Revenue, treasury division,  for                                                            
     the  fiscal   year  ending  June   30,  2004,  for   investment                                                            
     management fees for  the budget reserve fund (art. IX, sec. 17,                                                            
     Constitution of the State of Alaska).                                                                                      
                                                                                                                                
Co-Chair Wilken moved for  adoption and explained this is conforming                                                            
language  to  the House  Finance  Committee  version  of  the FY  04                                                            
operating  budget committee  substitute. He  noted similar  language                                                            
must be  included in  the FY 04  capital budget  as well. He  stated                                                            
this language, "provides  the annual appropriation to the Department                                                            
of Revenue  for the  management  of the CBR  [Constitutional  Budget                                                            
Reserve]" fund.                                                                                                                 
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Amendment #3:  This amendment increases  the appropriation  of other                                                            
funds to  the Statewide Federal  Programs BRU  in the Department  of                                                            
Transportation  and  Public Facilities  on  page 33,  line 14,  from                                                            
$79,475,000 to $82,475,000.                                                                                                     
                                                                                                                                
This amendment also adds  a "Statewide Congestion Mitigation and Air                                                            
Quality  (CMAQ)   Projects"  component  to  the  Statewide   Federal                                                            
Programs  BRU  in  the  Department  of  Transportation   and  Public                                                            
Facilities on  page 33, line 14 and allocates $300,000  other funds.                                                            
Intent language is also inserted to read as follows.                                                                            
                                                                                                                                
     It is  the intent of  the legislature  that these funds  are to                                                            
     meet  air quality  objectives  as  determined  by ADEC  [Alaska                                                            
     Department  of  Environmental  Conservation]  recommendations,                                                             
     including  a priority  on  ensuring that  federally  designated                                                            
     non-attainment  areas under the  federal Clean Air Act  achieve                                                            
     and sustain a 'Maintenance' status as defined in the Act.                                                                  
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This   amendment   creates   a   new   allocation   under   the                                                            
     appropriation  for  Statewide  Federal  Programs.  There is  an                                                            
     additional  $3,000,000  expected  for statewide  CMAQ  projects                                                            
     from the Federal-Highway Administration.                                                                                   
                                                                                                                                
Co-Chair  Wilken  read  the  explanatory  language  and  the  intent                                                            
language into the record and moved for adoption.                                                                                
                                                                                                                                
Senator B. Stevens asked the number of non-attainment areas.                                                                    
                                                                                                                                
Co-Chair Wilken listed two: Anchorage and Fairbanks.                                                                            
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Amendment  #4: This  amendment renames  the "Parks  Highway  Traffic                                                            
Signal (ED  13-16)" component  in the Department  of Transportation                                                             
and Public  Facilities  on page  33, lines  10 and  11 to be  "Parks                                                            
Highway Traffic  Signal at Church  Street (ED 13-16)". Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     There are many miles of Parks Highway. This name change is                                                                 
     requested to reflect the precise location where this traffic                                                               
     signal is to be installed in the City of Wasilla.                                                                          
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Co-Chair Wilken read the explanatory language into the record.                                                                  
                                                                                                                                
Senator  Hoffman  asked  if this  is  the "same  location  that  the                                                            
Department envisioned."                                                                                                         
                                                                                                                                
Co-Chair  Green assured the  Department has  planned to install  the                                                            
signal  at the  Church  Street  intersection,  as reflected  in  the                                                            
budget request language.                                                                                                        
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Amendment #5: This amendment  adds a "City of Palmer - Palmer Public                                                            
Safety  Building Security  Improvements  (ED 13-16)"  component  and                                                            
$26,250 general  fund appropriation in the Grants  to Municipalities                                                            
(AS 37.05.315)  BRU,  in the Department  of  Community and  Economic                                                            
Development on page 5, following line 6.                                                                                        
                                                                                                                                
This  amendment also  deletes  the "Palmer  Public  Safety  Building                                                            
Security  Improvements  (ED 13-16)"  component  and $26,500  general                                                            
fund appropriation from  the Department of Public Safety on page 30,                                                            
lines 17 - 19.                                                                                                                  
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The city owns the public safety building in Palmer, not the                                                                
     Department of Public Safety. Therefore, this should be a grant                                                             
     to a municipality under AS 37.05.315.                                                                                      
                                                                                                                                
Co-Chair  Green moved for  adoption and  explained the "assumption"                                                             
that these funds should  be appropriated for public safety purposes.                                                            
She  informed  that all  public  safety agencies  operating  in  the                                                            
portion  of the Mat-Su  Valley area  are located  in this  building,                                                            
including the  Alaska State Troopers,  Fish and Wildlife  Protection                                                            
and a "major dispatch center".                                                                                                  
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Amendment  #6: This  amendment  adds a  "Division of  Parks -  Lower                                                            
Kenai River  Public Use  Impact Study" component  and $100,000  Fish                                                            
and Game Fund  appropriation to the Department of  Natural Resources                                                            
on page 27. Accompanying explanatory language reads as follows.                                                                 
                                                                                                                                
     This  project allows  the Department  of  Natural Resources  to                                                            
     conduct a public analysis  on the impact of overcrowding on the                                                            
     lower  Kenai River by  recreational user  groups. The  previous                                                            
     administration  imposed a hasty  guide moratorium on  the Kenai                                                            
     River   and   the   current   administration   rescinded   that                                                            
     moratorium. This CIP  [Capital Improvement Project] will enable                                                            
     the  Department to  seek the  input of  recreational users  and                                                            
     businesses before any further use restrictions are imposed.                                                                
                                                                                                                                
This amendment  also  adds a "Division  of Wildlife  Conservation  -                                                            
Laboratory  Remodel"  component  and  $150,000  Fish and  Game  Fund                                                            
appropriation  to  the  Department  of Fish  and  Game on  page  23.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This CIP request was  submitted by the Office of Management and                                                            
     Budget  on March 24, 2003. Backup  is attached [copy  on file.]                                                            
                                                                                                                                
Co-Chair  Wilken  moved  for  adoption   and  read  the explanatory                                                             
statements into the record.                                                                                                     
                                                                                                                                
Senator  Taylor was  disturbed by  the intent that  the Division  of                                                            
Parks would become involved  in a moratorium on guided sport fishing                                                            
on  the  Kenai River  and  essentially  institute  a  limited  entry                                                            
program. He  questioned the constitutionality  of these actions  and                                                            
predicted  it would  have significant  impact  on this recreational                                                             
resource. He recognized  the problem with overcrowding  of the area,                                                            
but asserted  that  more recreational  opportunities  and access  to                                                            
these opportunities is the solution.                                                                                            
                                                                                                                                
Senator  Taylor  withdrew  his  objection  to the  adoption  of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Wilken indicated backup information is provided.                                                                       
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Amendment #7:  This amendment deletes  the "Alaska Marine  Highway -                                                            
Juneau-Petersburg   Fast  Vehicle  Ferry  (ED  1-5)"  component  and                                                            
$40,000,000  federal fund allocation  in the Surface Transportation                                                             
Program  BRU  of  the   Department  of  Transportation   and  Public                                                            
Facilities, on page 41, lines 12 - 14.                                                                                          
                                                                                                                                
This amendment also deletes  the "Alaska Marine Highway - Ketchikan-                                                            
Wrangell-South  Mitkof Fast  Vehicle Ferry  (ED 1-5)" component  and                                                            
$28,000,000  federal fund allocation  in the Surface Transportation                                                             
Program  BRU  of  the   Department  of  Transportation   and  Public                                                            
Facilities, on page 41, lines 22 - 25.                                                                                          
                                                                                                                                
This  amendment  also  adds  a  "Alaska  Marine  Highway:   Ferries,                                                            
Terminals and Connector  Roadways" component and $68,000,000 federal                                                            
fund allocation  in the  Surface Transportation  Program BRU  in the                                                            
Department  of Transportation   and Public  Facilities  on page  40,                                                            
lines 29 and 30.                                                                                                                
                                                                                                                                
Co-Chair Wilken  moved for adoption  and objected to the  motion. He                                                            
requested  the Department  of Transportation  and Public  Facilities                                                            
speak to the amendment.                                                                                                         
                                                                                                                                
TOM  BRIGGS,  Deputy  Commissioner,  Director,  Marine  Operations,                                                             
Marine  Highway  System, Department  of  Transportation  and  Public                                                            
Facilities, outlined the amendment.                                                                                             
                                                                                                                                
Mr. Briggs  indicated  another change  that is not  included  in the                                                            
language of Amendment  #7 [copy not provided]. He  explained this as                                                            
a $10.5 million  reappropriation from FY 02 and $12  million from FY                                                            
03 for a "feasibility study  and construction of connecting roadways                                                            
to the Marine Highway System (MHS)."                                                                                            
                                                                                                                                
Senator  Taylor   clarified  that  this  item  would   be  addressed                                                            
separately as a reappropriation.                                                                                                
                                                                                                                                
Mr.  Briggs   relayed  that  Governor   Murkowski  supports   "short                                                            
connector  roads", as part  of the  MHS and that  time is needed  to                                                            
evaluate  the  suitability  of "short  vessel  runs"  between  short                                                            
connector roads  in southern Southeast Alaska. Mr.  Briggs furthered                                                            
that  time is necessary  to  evaluate the  role of  fast ferries  in                                                            
providing "some  of these runs" and the most suitable  locations. He                                                            
surmised the funds  requested in this amendment would  be sufficient                                                            
to accomplish these studies.                                                                                                    
                                                                                                                                
Co-Chair  Wilken noted the  funds in question  are federal  receipts                                                            
and asked if the federal government has approved this change.                                                                   
                                                                                                                                
Mr. Briggs was unsure.                                                                                                          
                                                                                                                                
Senator  Hoffman asked if  the "stakeholders"  in Southeast  Alaska,                                                            
through  the  Southeast  Conference,  have  been  consulted  on  the                                                            
matter.                                                                                                                         
                                                                                                                                
Mr. Briggs  replied that the Southeast  Conference is in  support of                                                            
short  connector roads  and "short  shuttle ferries."  Although  the                                                            
organization has  not seen Amendment #7, he spoke  as past president                                                            
of the Southeast  Conference in surmising that it  would support the                                                            
amendment due  to previous support  of initial fast vehicle  ferries                                                            
as well as an "inter-mobile  short roads system throughout Southeast                                                            
Alaska." He  pointed out this proposal  would enhance that  program.                                                            
He told  of  a study  the organization  conducted,  which  reflected                                                            
short connector roads and short ferry runs.                                                                                     
                                                                                                                                
Senator Hoffman  announced that without specific direction  from the                                                            
Southeast Conference he would not support this amendment.                                                                       
                                                                                                                                
Senator Taylor  emphasized that the  witness served as president  of                                                            
the  Southeast   Conference  for   several  years.  Senator   Taylor                                                            
understood that the Conference  recommended to the governor that one                                                            
fast  ferry be  utilized for  one year,  at which  time the  program                                                            
would be evaluated before  further fast ferries were constructed and                                                            
a  Southeast  transportation  plan  were  finalized.  Therefore,  he                                                            
opined this  amendment complies with  the request and intent  of the                                                            
Conference.                                                                                                                     
                                                                                                                                
Mr.  Briggs   commented,  "The  best   plans  are  always   modified                                                            
somewhat,"  including the  Southeast Conference  recommendation.  He                                                            
informed that  two fast ferries were  currently under construction,                                                             
one to  operate in  Southeast and  the other in  the Prince  William                                                            
Sound.  He reported  that the communities  of  Prince William  Sound                                                            
"are  very excited"  about the  commission  of a fast  ferry in  the                                                            
region,  which  would be  home-ported  in  Cordova and  would  serve                                                            
Valdez, Whittier,  Chenega  and Tatitlek. He  stated that the  other                                                            
ferry is scheduled for  completion and delivery to Juneau on January                                                            
19, 2004, would  be home-ported in  Sitka and would serve  Sitka and                                                            
Juneau and possibly other  locations dependant upon traffic demands.                                                            
                                                                                                                                
Mr. Briggs  indicated that two other  planned vessels were  included                                                            
in the Southeast  Alaska Transportation  Plan although they  did not                                                            
receive approval  from the Southeast Conference. He  stated that the                                                            
Conference  never  had an  opportunity  to  discuss the  matter.  He                                                            
opined that  the Conference  would support  "the concept of  a third                                                            
fast vehicle  ferry if  it would  provide access  where there  is no                                                            
road access." He reiterated  that the federal funds provided in this                                                            
amendment would  allow the Department  to determine the feasibility                                                             
of fast vehicle ferries as well as interconnection for the MHS.                                                                 
                                                                                                                                
Senator Taylor  spoke to  authorization for  the use of the  federal                                                            
funds  as proposed  in  the  amendment. He  explained  the  "funding                                                            
mechanism is called SHAKWAK  funds, which is a geological fault that                                                            
is followed by our Alcan  Highway. When the Alcan needed repairs and                                                            
work done it many years  ago, our Congress appropriated these funds,                                                            
100 percent,  no State match, to rebuild  the Alcan Highway  in both                                                            
the Alaskan and Canadian  portions of that road. Over the years, the                                                            
delegation has continued  to provide funding into that category, but                                                            
has added [three]  other designators.  It's not only for  the Alcan,                                                            
but it was also  to be specifically used for the Haines  Cutoff, for                                                            
the Skagway road  and for the Southeast AMS. These  funds are coming                                                            
through   SHAKWAK   Southeast  highway   connector   system,   which                                                            
specifically includes  the language that you see,  the new language,                                                            
which is  'feasibility for  terminals and  connector roads'.  That's                                                            
the federal  authorization.  So has it been  approved by  Washington                                                            
DC? It was funded for that purpose out of Washington DC."                                                                       
                                                                                                                                
Senator  Hoffman contended  that the  two allocations  proposed  for                                                            
deletion  by this  amendment have  been included  in the  Governor's                                                            
amended  FY 04  operating  budget  request for  over  one month  and                                                            
during  this  time,   he  heard  no  opposition  to   the  items  or                                                            
suggestions for  changes from any residents of Southeast  Alaska. He                                                            
noted this amendment  has been available for less  than one hour and                                                            
has  had no  public input.  He  did not  oppose the  amendment,  but                                                            
expressed concern  with the limited  time to address the  matter and                                                            
he therefore could not support its passage.                                                                                     
                                                                                                                                
Co-Chair  Wilken  noted  the  affected  areas  are  not  within  his                                                            
election   district;  however,   he  asserted   "when  the   elected                                                            
representatives,  the Governor  and the person  that's in charge  of                                                            
the  Marine Highway  System  recommends this  amendment  to me,  I'm                                                            
encouraged to vote for it and I will vote for it."                                                                              
                                                                                                                                
Senator  B.  Stevens  expressed  concern  over  the  uncertainty  of                                                            
federal approval for use  of the funds in the manner proposed by the                                                            
amendment and  asked the length of  time the SHAKWAK appropriations                                                             
have existed.                                                                                                                   
                                                                                                                                
Mr. Briggs answered  that the SHAKWAK funds has been  cumulative for                                                            
about six years.                                                                                                                
                                                                                                                                
Senator B. Stevens asked the original purpose of the funds.                                                                     
                                                                                                                                
Mr. Briggs replied the  funds were initially intended for repair and                                                            
upgrade expenses  of the Alcan Highway  in the Canadian portion  and                                                            
is currently  allocated under  the federal  highway program  for the                                                            
Haines Cutoff Road and the MHS.                                                                                                 
                                                                                                                                
Senator   Taylor   offered   to   provide   documentation   of   the                                                            
authorization  language  that specifies  the Alcan  Highway,  Haines                                                            
Cutoff  Road  and  Skagway  road  and  MHS  "road   connectors".  He                                                            
qualified  that  no appropriation   has yet  been  made of  the  $68                                                            
million included in this amendment.                                                                                             
                                                                                                                                
Senator Hoffman objected to the adoption of the amendment.                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-                                                                
Chair Green and Co-Chair Wilken                                                                                                 
                                                                                                                                
OPPOSED: Senator Olson and Senator Hoffman                                                                                      
                                                                                                                                
The motion PASSED (5-2)                                                                                                         
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
Amendment #8:  This amendment is outlined in a memorandum  from Mike                                                            
Barton,  Commissioner,  Department   of Transportation   and  Public                                                            
Facilities  to Cheryl  Frasca, Director,  Office  of Management  and                                                            
Budget dated May 2, 2003, which reads as follows.                                                                               
                                                                                                                                
     The  Department  of Transportation   and Public  Facilities  is                                                            
     requesting  amendments to the capital budget  bills (HB 150 and                                                            
     SB 100) before the Legislature.                                                                                            
                                                                                                                                
     Rural Airport Projects                                                                                                     
     The  Department is requesting  the following  changes  to rural                                                            
     airport capital projects:                                                                                                  
                                                                                                                                
     Amend                                                                                                                      
     Chevak: Snow Removal Equipment Building                                                                                    
          Increase from $50,000 to $200,000 federal receipt                                                                     
     authority. The cost  to build this structure has increased over                                                            
     previous estimates.  This amount is needed in addition to an FY                                                            
     03  appropriation   to  bring  the  total  estimated   cost  to                                                            
     $750,000.                                                                                                                  
                                                                                                                                
     Add                                                                                                                        
     Scammon Bay: Airport Snow Removal Equipment Building                                                                       
          $100,000 federal receipts. Reflects revised Airport                                                                   
     Improvement  Program  request. This  project  will upgrade  the                                                            
     Scammon Bay Snow Removal Equipment Building.                                                                               
                                                                                                                                
     Statewide: Various Airport Snow Removal Equipment                                                                          
          $4,300,000 federal receipts. This was inadvertently                                                                   
     omitted  from the Department's  original  request. The  project                                                            
     provides federal authority  to purchase new or replacement snow                                                            
     removal equipment at several rural airports.                                                                               
                                                                                                                                
     Surface Transportation Projects                                                                                            
     The  Department's current  AMATS [Anchorage  Metropolitan  Area                                                            
     Transportation  Study] and Surface Transportation  requests are                                                            
     $68,734,000 and $416,092,600.                                                                                              
                                                                                                                                
     The  following  reductions   are  being  requested  to  various                                                            
     highway projects:                                                                                                          
                                                                                                                                
          ($39,906,000) - Over the past year there has been a                                                                   
     decrease in the amount  of federal fuel tax revenues collected,                                                            
     which  have caused  a corresponding  reduction  in the  highway                                                            
     construction  program.  A  reduction  in specific  projects  is                                                            
     being requested to  reflect delays due to the decreased federal                                                            
     funding.                                                                                                                   
          ($48,125,000) - This amendment requests project                                                                       
     reductions  where the Department  has determined that  adequate                                                            
     project  authority already exists  to continue work  through FH                                                            
     04.                                                                                                                        
          ($1,205,000) - Also being requested is a reduction in                                                                 
     TRAAK  [Trails and Recreation  Access  for Alaska] projects  to                                                            
     reflect a program allocation decrease.                                                                                     
                                                                                                                                
     The following additions are being requested:                                                                               
          $55,416,000 - New or increased federal project authority                                                              
     is  being requested  where  scope changes,  funding  breakdown,                                                            
     updated estimates or priorities have changed.                                                                              
          $21,700,000 - Project authority is needed for earmarks                                                                
     contained   within   the   recently   approved   congressional                                                             
     appropriation bill.                                                                                                        
                                                                                                                                
     Finally,  the amendment contains the elimination  of individual                                                            
     pavement and bridge  projects and combines them into regionwide                                                            
     allocations.  This  will  provide the  regions  flexibility  in                                                            
     determining  their  greater need,  pavement  or bridge  repair.                                                            
     Similar  adjustments  are  taking  place  for AMATS  and  FMATS                                                            
     [Fairbanks  Metropolitan Area  Transportation Study]  projects.                                                            
                                                                                                                                
     The  net  effect   of  these  amendments  is   a  reduction  of                                                            
     $12,220,000   to   the   AMATS   and  Surface   Transportation                                                             
     appropriation  requests.  A  spreadsheet  with the  changes  is                                                            
     attached [copy on file].                                                                                                   
                                                                                                                                
Co-Chair  Wilken moved  for adoption  and requested  an explanation                                                             
from the  Department  of Transportation  and  Public Facilities.  He                                                            
stated that  the amendment  is a result of  information regarding  a                                                            
reduction  in federal funds  received by  the Department within  the                                                            
past few  days. He said this  amendment is  a result of the  reduced                                                            
funding.                                                                                                                        
                                                                                                                                
JOHN  MACKINNON,   Deputy  Commissioner   of  Highways  and   Public                                                            
Facilities,  Department  of  Transportation  and  Public  Facilities                                                            
testified   that   each   year   when   preparing    the   Statewide                                                            
Transportation Improvement  Program (STIP), the Department estimates                                                            
the  amount  of  federal   funding  the  State  would   receive  for                                                            
transportation related projects.                                                                                                
                                                                                                                                
AT EASE 4:44 PM / 4:44 PM                                                                                                       
                                                                                                                                
Mr. MacKinnon  continued  that the  Department has  been waiting  to                                                            
learn the amount  the State would receive from the  National Highway                                                            
System. He listed the amount  received in FY 02 at $323 million plus                                                            
$40  million  RABA (Realigned  Budget  Authority)  funds,  which  he                                                            
explained as "excess  tax revenue that is spread out  after the fund                                                            
is put  together."  He relayed  that the  Department  "had a  fairly                                                            
optimistic anticipation  of what was going to be received this year"                                                            
of  between  $360  million  and  $370  million.   He  expressed  the                                                            
Department's  "surprise" when  the actual  amount was approximately                                                             
$306 million.  He  attributed the  Department's  expectation on  the                                                            
                                                          st                                                                    
continuation  of the Transportation  Equity Act for the 21   Century                                                            
(TEA 21) program,  rather than "a reauthorization  for the next six-                                                            
year program."                                                                                                                  
                                                                                                                                
Mr. MacKinnon stated that  because the Department would receive less                                                            
funding,  some projects  must  be  reduced or  delayed  one year  or                                                            
longer.  He  informed   that  the  entire  STIP  was   reviewed  and                                                            
priorities were established.                                                                                                    
                                                                                                                                
Senator  Hoffman   expressed  concern  about  the   length  of  this                                                            
amendment and  the recent availability  to Members. He asserted  the                                                            
importance  of transportation in the  district in which he  resides.                                                            
He requested  additional time to review  the amendment to  allow for                                                            
an educated decision.                                                                                                           
                                                                                                                                
Co-Chair  Wilken  agreed  and  WITHDREW  his  motion  to  adopt  the                                                            
amendment  without objection.  He  announced intent  to revisit  the                                                            
amendment at the next hearing on the bill.                                                                                      
                                                                                                                                
Amendment #9:  This amendment increases  the appropriation  of other                                                            
funds to the  Airport Improvement  Program BRU of the Department  of                                                            
Transportation  and  Public  Facilities  on  page  34, line  4  from                                                            
$255,040,278 to $262,227,778.                                                                                                   
                                                                                                                                
This amendment  also increases the allocation to the  "Nome: Airport                                                            
Right  of  Way  Acquisition  (ED  37)"  component   in  the  Airport                                                            
Improvement  Program BRU  of the  Department  of Transportation  and                                                            
Public Facilities from  $7,812,500 to $15,000,000, on page 36, lines                                                            
32 and 33.                                                                                                                      
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator  Olson  told  of a  "recent  meeting"  in  which  additional                                                            
information  was  learned  regarding   a  land  acquisition  in  his                                                            
district.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken  clarified  this amendment  is  a correction  to  a                                                            
drafting error.                                                                                                                 
                                                                                                                                
NANCY  SLAGLE,  Director,   Division  of  Administrative   Services,                                                            
Department  of Transportation and  Public Facilities corrected  that                                                            
the  original  request  was  not in  error,  but  rather  that  this                                                            
amendment  is an updated  estimate of the  right of way acquisition                                                             
expense for the Nome Airport project.                                                                                           
                                                                                                                                
Co-Chair  Wilken  asked  if this  amendment  involves  only  federal                                                            
funds.                                                                                                                          
                                                                                                                                
Ms. Slagle affirmed.                                                                                                            
                                                                                                                                
Senator Taylor  asked if  this amendment relates  to repairs  to the                                                            
Nome Airport.                                                                                                                   
                                                                                                                                
Ms. Slagle replied this  amendment would provide funding for a right                                                            
of way acquisition related to a project at the Nome Airport.                                                                    
                                                                                                                                
Senator Taylor  asked if residents  of Nome have been consulted  and                                                            
whether they support this  amendment. He also asked if authorization                                                            
to expend  the federal  Airport Improvement  Project (AIP)  funds in                                                            
this manner has been received.                                                                                                  
                                                                                                                                
Ms. Slagle told  of the public process undertaken  in development of                                                            
this project.                                                                                                                   
                                                                                                                                
Co-Chair  Wilken  removed  his  objection   and  the  amendment  was                                                            
ADOPTED.                                                                                                                        
                                                                                                                                
Co-Chair  Wilken  announced  that  although  this  meeting  was  not                                                            
noticed for public testimony,  some parties expressed an interest to                                                            
provide testimony, which the Committee would hear.                                                                              
                                                                                                                                
CHARLIE FANNON,  Communications Officer, Wasilla Police  Department,                                                            
and Program  Outreach Coordinator  for the Mat-Su Area, Alaska  Land                                                            
Mobile Radio  (ALMR) project, testified  via teleconference  from an                                                            
offnet location  in support of funding  for phase one of  the Alaska                                                            
Land  Mobile Radio  project  in  the Fairbanks  area.  He  expressed                                                            
support  for  the  State eventually   installing  a "communications                                                             
backbone through this area."                                                                                                    
                                                                                                                                
Senator Bunde asked if  the Wasilla Police Department has determined                                                            
how  it would  pay its  costs to  access the  ALMR  system when  the                                                            
system is installed in the Mat-Su area.                                                                                         
                                                                                                                                
Mr.  Fannon  told  of federal  grants  acquired  for  a region-wide                                                             
telecommunications  center  for all  public safety  agencies in  the                                                            
Mat-Su  area to utilize.  He expressed  that  the determination  has                                                            
been made  that the  ALMR would  be VHF and  would utilize  Motorola                                                            
radio consuls  and the federal grant  would be used for sole-source                                                             
purchasing  of these units. In addition,  he stated that  permission                                                            
has been secured  to allow the Mat-Su  project to "piggy  back" onto                                                            
the State  contract to  purchase units  at a lower  price. He  noted                                                            
this was  done for  Fairbanks purchases  as well.  He qualified  the                                                            
units  are  not  fully  compliant  with  federal  telecommunication                                                             
standards,  although "they're  closer  than anybody  else's at  this                                                            
point."  He stated  that the acquisition  of  identical units  would                                                            
allow the different public  safety agencies in the State to interact                                                            
seamlessly.                                                                                                                     
                                                                                                                                
Mr. Fannon  informed  that subscriber  funds to  participate in  the                                                            
AMLR system and  funds for the annual operating costs  have not been                                                            
determined to date.                                                                                                             
                                                                                                                                
CHUCK  KOPP, Chief,  Kenai  City Police  Department,  testified  via                                                            
teleconference  from Kenai  on the  same subject  noting the  recent                                                            
completion of a dispatch  center upgrade that would link to the ALMR                                                            
system. He relayed  that all local public safety agencies  in Alaska                                                            
"are very  excited  about this  project and  we see  it as a  common                                                            
system as it's  going to bring all  the public response groups  to a                                                            
common site  for mutual aid during  an emergency, which we've  never                                                            
had before." He  listed the multiple agencies that  would be able to                                                            
interact  with the  ALMR system  and  the various  circumstances  in                                                            
which this communication would be beneficial.                                                                                   
                                                                                                                                
Senator Bunde reiterated  his earlier question, asking how the Kenai                                                            
City Police Department would fund its portions of the project.                                                                  
                                                                                                                                
Chief  Kopp replied  that  several plans  were  under consideration                                                             
based  on a percentage  of  costs shared.  He pointed  out that  the                                                            
Department has  on-going communications expenses and  did not expect                                                            
participation  in the ALMR system  would significantly increase  the                                                            
costs.                                                                                                                          
                                                                                                                                
MILTON WILTSE testified  via teleconference from Fairbanks about his                                                            
long interest  in mineral development in Alaska. He  stated that the                                                            
airborne geophysical minerals  inventory program has been successful                                                            
over the  past several  years in cataloging  the approximately  $374                                                            
million spent  on mineral  exploration over  the past ten years.  In                                                            
reviewing the  FY 04 budget legislation, he was unable  to ascertain                                                            
whether  this  program  would  be continued.  He  opined  that  this                                                            
program "is  paying big dividends  to the State" exampling  that the                                                            
latest survey has "elicited  a new round of staking" on the southern                                                            
slopes  of the Alaska  Range. He  furthered that  this program  is a                                                            
"long  term  investment  in  the  diversification   of  the  State's                                                            
economy".                                                                                                                       
                                                                                                                                
Co-Chair Wilken  thanked the testifier, noting that  this program is                                                            
not normally  funded from  the capital budget.  He assured  he would                                                            
research the  matter to ensure the  continuation of the program.  He                                                            
recalled the project  has been funded between $250,000  and $400,000                                                            
annually.                                                                                                                       
                                                                                                                                
Senator Taylor appreciated  the "huge, huge ramifications for a very                                                            
small amount  spent". He informed  that the City of Wrangell  is the                                                            
only city in the  nation to contribute to the funding  of one of the                                                            
surveys, and that  as a result of the project, major  exploration is                                                            
occurring  in the  Duncan  Canal area  and the  Cleveland  Peninsula                                                            
area.                                                                                                                           
                                                                                                                                
Senator  Olson  also voiced  support  for  the continuation  of  the                                                            
program, as landowners  and Native corporations in his district also                                                            
support it.                                                                                                                     
                                                                                                                                
Co-Chair  Wilken noted a  technical change  to Amendment #9  in that                                                            
the "Nome:  Airport Right of Way Acquisition"  component  is on line                                                            
32 of page 36.                                                                                                                  
                                                                                                                                
                                                                                                                                
SFC 03 # 74, Side B 05:03 PM                                                                                                    
                                                                                                                                
                                                                                                                                
[Note: The following portion  of the meeting was not recorded due to                                                            
an audio malfunction.]                                                                                                          
                                                                                                                                
PAUL JENNY testified via teleconference from Fairbanks.                                                                         
                                                                                                                                

Document Name Date/Time Subjects