Legislature(2005 - 2006)SENATE FINANCE 532

03/17/2005 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 46 APPROP: CAPITAL BUDGET TELECONFERENCED
Heard & Held
= SB 141 PUBLIC EMPLOYEE/TEACHER RETIREMENT
Heard & Held
Agency Order To Be Announced
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Department of Commerce, Community and Economic Development                                                                    
                                                                                                                                
     Manufacturing Extension Program                                                                                            
     $1,600,000                                                                                                                 
          $800,000 BLic Rcpts                                                                                                   
          $800,000 Fed Rcpts                                                                                                    
     Reference No.: 40242                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     The Federal Manufacturing  Extension Program (MEP) will support                                                            
     Alaska's  small and medium sized  manufacturers throughout  the                                                            
     state by  providing them access to knowledgeable  manufacturing                                                            
     and  business specialists  throughout  the United States.  This                                                            
     program contributes  to the Department's mission of promoting a                                                            
     healthy economy  by developing the business skills  of Alaska's                                                            
     small manufacturing companies.                                                                                             
                                                                                                                                
JOHANA  HANRAHAN, Director,  Division  of  Administrative  Services,                                                            
Department   of  Commerce,  Community   and  Economic  Development,                                                             
informed the Committee  that this request has been removed from this                                                            
legislation,  and  is  being  advanced   in the  Supplemental   bill                                                            
legislation.                                                                                                                    
                                                                                                                                
     Alaska Visitors Statistics Program                                                                                         
     $750,000 Gen Fund                                                                                                          
     Reference No.: 40078                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005-06/30/2010                                                                             
     One-Time Project                                                                                                           
     Continuation of the  Alaska Visitors Statistics Program (AVSP).                                                            
     This  Program   continues  the  comprehensive  collection   and                                                            
     presentation of information  on Alaska's visitors. This program                                                            
     contributes to the  Department's mission of promoting a healthy                                                            
     economy by assisting  the visitor industry in marketing Alaska.                                                            
                                                                                                                                
Ms.  Hanrahan   stated   that  this  continuing   program   provides                                                            
demographic, characteristic,  and expenditure patterns  and opinions                                                            
of travelers to the State.  The information is used to gauge impacts                                                            
to visitor infrastructures  and facilities, to determine investments                                                            
in visitor  attractions and services  and the effect on State  lands                                                            
and other natural  resources, and  to develop the tourism-marketing                                                             
program.                                                                                                                        
                                                                                                                                
Senator Bunde  commented that this  program must be "a great  asset"                                                            
to commercial  enterprises in the visitor industry.  Due to the fact                                                            
that  the State  is  shifting to  a  policy of  user  pay, he  asked                                                            
whether an estimate  on the project's rate of return  to the general                                                            
fund has been developed.                                                                                                        
                                                                                                                                
Ms. Hanrahan responded  that data that has been gathered  pertaining                                                            
to the  increase in the  number of visitors  and revenues  resulting                                                            
from  promoted   venues   might  address   the  question.   Specific                                                            
information would be provided.                                                                                                  
                                                                                                                                
Senator Bunde stated that  the State must seek more support from the                                                            
industry.                                                                                                                       
                                                                                                                                
     Tourism Promotion                                                                                                          
     $530,000 Gen Fund                                                                                                          
     Reference No.: 40495                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005-06/30/2010                                                                             
     One-Time Project                                                                                                           
     Various  tourism  marketing projects  to promote  and  increase                                                            
     tourism   in   Alaska.   This  request   contributes   to   the                                                            
     Department's   mission  of  promoting  a  healthy   economy  by                                                            
     assisting the tourism  industry and those businesses benefiting                                                            
     from the tourism industry.                                                                                                 
                                                                                                                                
Ms.  Hanrahan   stated  that   this  project   has  five   different                                                            
components: to  augment national cable network television  marketing                                                            
by increasing  the number  of weeks  of advertising;  to expand  the                                                            
number of national  cable networks  being utilized; to increase  the                                                            
State's online  advertising presence on key trip-planning  websites;                                                            
and to enhance the TravelAlaska.com  website specifically to include                                                            
an  online  forum  on the  site.  Research  has  indicated  that  an                                                            
increasing number  of travelers are using Internet  websites to plan                                                            
and research travel options.                                                                                                    
                                                                                                                                
Senator Bunde  reiterated that the  return to the State should  be a                                                            
consideration as "creating jobs is not enough".                                                                                 
                                                                                                                                
Senator Hoffman  asked regarding the justification  for requesting a                                                            
one-year  rather than an  on-going marketing  program; specifically                                                             
whether the one-year request  is being proposed to address a lull in                                                            
the number of visitors to the State.                                                                                            
                                                                                                                                
Ms. Hanrahan  responded that this  is considered to be a  multi-year                                                            
project, as the request  would provide funds for more than one year.                                                            
The project would boost tourism.                                                                                                
                                                                                                                                
Senator Hoffman inquired  to the amount of the request that would be                                                            
expended in FY 06.                                                                                                              
                                                                                                                                
Ms. Hanrahan replied that this information would be provided.                                                                   
                                                                                                                                
Co-Chair Green asked that  the total FY 06 tourism category funding,                                                            
to  include all  fund  sources in  both  the operating  and  capital                                                            
budgets, be provided.                                                                                                           
                                                                                                                                
Ms. Hanrahan stated that this information would be compiled.                                                                    
                                                                                                                                
Ms.  Hanrahan  continued   that  the  request  would   also  promote                                                            
independent  visitor  traffic on  the  Alaska Highway  by  providing                                                            
funds to  pre-qualified journalists  to experience  and write  about                                                            
it. Independent  travel on the Alaska Highway has  been experiencing                                                            
limited growth.  The fifth area that  would be addressed  with these                                                            
funds would be to further  sales and training missions to promote an                                                            
Alaska/Asian relationship.                                                                                                      
                                                                                                                                
     Organization Grants                                                                                                        
     $700,000 Gen Fund                                                                                                          
     Reference No.: 40056                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grants  to unincorporated  communities  to defray  the cost  of                                                            
     incorporation.   Each   unorganized   city   or  borough   that                                                            
     incorporates   after  December  31,  1985  is  entitled  to  an                                                            
     organization  grant  under  AS  29.050.180  -.200.  This  grant                                                            
     contributes to the  Department's mission of promoting a healthy                                                            
     economy  and strong  communities  by assisting  communities  in                                                            
     achieving maximum self-government.                                                                                         
                                                                                                                                
Ms.  Hanrahan  stated that  this  request  would provide  grants  to                                                            
assist local governments  in transitioning to a borough. Potentially                                                            
the Prince  William Sound  area, the City  of Delta Junction/Delta-                                                             
Greely area,  the Anchor  Point area, and  others might soon  become                                                            
organized boroughs.                                                                                                             
                                                                                                                                
Co-Chair Green  asked whether this  could be characterized  "as just                                                            
an anticipation."                                                                                                               
                                                                                                                                
Ms. Hanrahan  responded that some  of the petitions have  been filed                                                            
and  others  are anticipated.  According  to  Title  29 guidelines,                                                             
communities  that organize  are entitled  to  receive State  funding                                                            
assistance for three years  after organization. This funding request                                                            
would fund the first of three years.                                                                                            
                                                                                                                                
Senator   Olson  asked   for  further  information   regarding   the                                                            
assistance that must be provided to organizing communities.                                                                     
                                                                                                                                
Ms. Hanrahan  responded that  a newly organized  borough or  unified                                                            
municipality  would receive  $300,000 its  first year, $200,000  the                                                            
second year, and $100,000 the third year.                                                                                       
                                                                                                                                
Senator Olson understood  therefore that $600,000 would be provided.                                                            
                                                                                                                                
Co-Chair  Green commented  this  is the  amount specified  in  State                                                            
statute.                                                                                                                        
                                                                                                                                
Ms. Hanrahan concurred.                                                                                                         
                                                                                                                                
     Community Development Grants                                                                                               
     $14,538,000                                                                                                                
          $14,050,000 Fed Rcpts                                                                                                 
          $   488,000 Gen Fund                                                                                                  
     Reference No.: 38943                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Multiple  federally-funded   programs,  enabling   Commerce  to                                                            
     provide grants to  communities and non-profit organizations for                                                            
     community   development.  This   program  contributes   to  the                                                            
     Department's mission  of promoting a healthy economy and strong                                                            
     communities by providing  economic growth in the communities it                                                            
     serves.                                                                                                                    
                                                                                                                                
Ms. Hanrahan  informed that  this program  assists communities  with                                                            
developing flood  plains and erosion management programs;  grants to                                                            
assist small  communities  expand and diversify  their economy;  and                                                            
programs  that  allow Rural  communities  to  construct  or  remodel                                                            
multi-use facilities.  Communities  contribute a match ranging  from                                                            
ten to 25 percent of the  cost of such projects. In FY 05 and FY 06,                                                            
48 unmapped communities  in the Lower Kuskokwim and  Bering Straits,                                                            
Copper  Valley,  and  Southeast  areas  would  receive  accelerated                                                             
infrastructure  development grants that would allow  them to develop                                                            
profile maps.  The request would also  provide funds to the  State's                                                            
Bulk Fuel Bridge  Loan program and  funds to mitigate the  impact of                                                            
the  Fort Greely  Missile  Defense  development's  construction  and                                                            
operation.                                                                                                                      
                                                                                                                                
     Community Block Grants                                                                                                     
     $6,115,000                                                                                                                 
          $6,045,000 Fed Rcpts                                                                                                  
          $   70,000 Gen Fund                                                                                                   
     Reference No.: 38946                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Multiple  federally-funded   programs,  enabling   Commerce  to                                                            
     provide  grants  to communities  and non-profits  that  provide                                                            
     services   and/or  benefit   the  low-   to  moderate-   income                                                            
     individuals.  This  program  contributes  to  the Department's                                                             
     mission of  promoting a healthy economy and strong  communities                                                            
     by providing economic growth in the communities it serves.                                                                 
                                                                                                                                
Ms.  Hanrahan stated  that  this long-term  on-going  program  would                                                            
provide funds  to the Rural Alaska Community Action  Program (RACAP)                                                            
for such things  as training and educational drug  and alcohol abuse                                                            
programs as  well as nutrition grant  programs. Homeless  assistance                                                            
grants,  emergency shelter  grants, and funds  to municipalities  to                                                            
assist planning  and infrastructure  development are also  provided.                                                            
The federal funds require a small State match.                                                                                  
                                                                                                                                
     Energy Projects                                                                                                            
     $20,750,000                                                                                                                
          $250,000 Bond Funds                                                                                                   
          $20,000,000 Fed Rcpts                                                                                                 
          $500,000 I/A Rcpts                                                                                                    
     Reference No.: 38950                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Multiple   federally  funded  energy  programs   of  Bulk  Fuel                                                            
     Upgrades,  Rural Power Systems  Upgrades, Alternate  Energy and                                                            
     Energy  Efficiency projects.  This program  contributes  to the                                                            
     Department's mission  of promoting a healthy economy and strong                                                            
     communities by providing  economic growth in the communities it                                                            
     serves.                                                                                                                    
                                                                                                                                
Ms. Hanrahan  explained that  this mostly  federally funded  program                                                            
would fund  a wide variety  of energy programs  including bulk  fuel                                                            
upgrades,  rural  power system  upgrade  programs,  and alternative                                                             
energy and energy efficiency projects.                                                                                          
                                                                                                                                
Senator Bunde declared that he was "not looking forward to the day"                                                             
when these federal funds might dissipate and the onus might be to                                                               
replace them with general funds.                                                                                                
                                                                                                                                
     Language Section: Electrical Emergencies                                                                                   
     $330,000 Rural Elec                                                                                                        
     Reference No.: 32590                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30-2010                                                                           
     On-Going Project                                                                                                           
     To provide technical  support when an electric utility has lost                                                            
     the ability to generate  or transmit power to its customers and                                                            
     the condition  is a threat to life, health, and/or  property in                                                            
     the   rural  community.   This  program   contributes   to  the                                                            
     Department's mission  of promoting a healthy economy and strong                                                            
     communities by providing  economic growth in the communities it                                                            
     serves.                                                                                                                    
                                                                                                                                
Ms. Hanrahan read the project description.                                                                                      
                                                                                                                                
     Language Section: NPR-A Impact Grant Program                                                                               
     $29,517,700 NPR Fund                                                                                                       
     Reference No.: 38948                                                                                                       
     Category: Development                                                                                                      
     Location: Barrow                                                                                                           
     Election District: Arctic                                                                                                  
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Grants  to  communities  for public  facilities  and  services.                                                            
     Priority  is given to  those communities  directly or  severely                                                            
     impacted  by the leases and development  of oil and  gas within                                                            
     the  National Petroleum  Reserve. This  program contributes  to                                                            
     the Development's  mission of  promoting a healthy economy  and                                                            
     strong  communities   by  providing  economic   growth  in  the                                                            
     communities it serves.                                                                                                     
                                                                                                                                
Ms. Hanrahan reviewed the project description.                                                                                  
                                                                                                                                
Co-Chair Green asked that a list of the projects affected by this                                                               
request be provided.                                                                                                            
                                                                                                                                
Ms. Hanrahan agreed to provide the information.                                                                                 
                                                                                                                                
Co-Chair  Wilken  requested  that  this  project  be assigned  to  a                                                            
subcommittee  that  he  might  chair,  for  further   analyzing  and                                                            
development.                                                                                                                    
                                                                                                                                
Co-Chair Green agreed.                                                                                                          
                                                                                                                                
Senator Stedman, Senator  Dyson, and Senator Olson asked to serve on                                                            
the subcommittee.                                                                                                               
                                                                                                                                
Co-Chair  Green   announced  that  Co-Chair  Wilken   would  be  the                                                            
subcommittee chair.                                                                                                             
                                                                                                                                
     Kodiak Launch Site Infrastructure                                                                                          
     $36,000,000 Fed Rcpts                                                                                                      
     Reference No.: 40008                                                                                                       
     Category: Development                                                                                                      
     Location: Kodiak                                                                                                           
     Election District: Kodiak                                                                                                  
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Kodiak   launch  site  infrastructure   to  support   the  U.S.                                                            
     Department  of Defense's Missile Defense Program.  This program                                                            
     contributes to the  Department's mission of promoting a healthy                                                            
     economy and strong  communities by providing economic growth in                                                            
     the communities it serves.                                                                                                 
                                                                                                                                
Ms. Hanrahan  stated  this request  would be  federally funded.  The                                                            
intent  is  to  bring  the  Kodiak  launch   site  to  meet  federal                                                            
Department of Defense requirements.                                                                                             
                                                                                                                                
     Protection and Education of Investors                                                                                      
     $300,000 Stat Desig                                                                                                        
     Reference No.: 40505                                                                                                       
     Category: Education                                                                                                        
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Protection  and education of consumers/investors  in accordance                                                            
     with a national  securities settlement with 10  of the nation's                                                            
     top  investment   firms.  This   project  contributes   to  the                                                            
     Department's mission  of promoting a healthy economy and strong                                                            
     communities   by  educating  the  public  in  sound   financial                                                            
     planning.                                                                                                                  
                                                                                                                                
Ms. Hanrahan  noted that this request  is being withdrawn  as it has                                                            
been determined  that rather than  this money being directed  to the                                                            
State, the State  could recommend entities within  the State that it                                                            
could be directed to.                                                                                                           
                                                                                                                                
Senator Bunde  suggested that the money be directed  to the PERS and                                                            
TRS retirement  programs so that the systems could  have an informed                                                            
group  of investors  in  regards  to  such things  as  the  proposed                                                            
Defined Contribution Retirement program.                                                                                        
                                                                                                                                
Co-Chair Green thanked Senator Bunde for the suggestion.                                                                        
                                                                                                                                
9:37:14 AM                                                                                                                    
                                                                                                                                
     Morris Thompson Cultural and Visitors Center                                                                               
     $250,000 Gen Fund                                                                                                          
     Reference No.: 40500                                                                                                       
     Category: Development                                                                                                      
     Location: Fairbanks Areawide                                                                                               
     Election District: Fairbanks Areawide                                                                                      
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grant for the Morris Thompson Cultural and Visitors Center.                                                                
                                                                                                                                
Ms.  Hanrahan  stated   that  this  Center  would  provide   visitor                                                            
information   services,   visitor   trip  planning,   environmental                                                             
education,  and exhibits.  The total  estimated cost  of the  Center                                                            
would  be  $26  million:  $15  million  of  federal  funds  and  the                                                            
remaining funds to be from the State and private contributors.                                                                  
                                                                                                                                
Co-Chair Green asked when the project might be completed.                                                                       
                                                                                                                                
Ms. Hanrahan  replied that the conceptual  design phase is  reaching                                                            
completion.  Requests  for  bids have  not  been  let. In  order  to                                                            
complete  the  construction  project by  the  spring of  2006,  $4.5                                                            
million  must  be raised  in  2005.  The final  completion  date  is                                                            
unknown.                                                                                                                        
                                                                                                                                
Co-Chair  Green  asked  whether  this is  the  only  budget  request                                                            
associated with the Morris Thompson Cultural Center.                                                                            
                                                                                                                                
Ms. Hanrahan replied  that this is the only request  being furthered                                                            
by the Department.  Further research  regarding the project's  total                                                            
funding would be conducted.                                                                                                     
                                                                                                                                
Co-Chair Green commented that this item might be revisited.                                                                     
                                                                                                                                
9:39:46 AM                                                                                                                    
                                                                                                                                
     City of Valdez - Harborview Demolition                                                                                     
     $1,000,000 Gen Fund                                                                                                        
     Reference No.: 40517                                                                                                       
     Category: Development                                                                                                      
     Location: Valdez                                                                                                           
     Election District: Richardson/Glenn Highways                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Demolition of Harborview building.                                                                                         
                                                                                                                                
Ms. Hanrahan  stated that the land  on which this building  sits was                                                            
transferred  to  the  City  of Valdez.  Since  there  is  no  viable                                                            
economic use of the building,  which was closed in 1997, the City is                                                            
requesting  funds to demolish and  remediate the site. The  building                                                            
does contain hazardous materials.                                                                                               
                                                                                                                                
Co-Chair  Green asked  whether the  City of Valdez  would be  liable                                                            
were any hazardous materials found.                                                                                             
                                                                                                                                
Ms. Hanrahan asked for  clarification whether the question pertained                                                            
to liability during demolition.                                                                                                 
                                                                                                                                
Co-Chair Green  expressed that the  liability question pertained  to                                                            
both during  and after demolition.  In other words, would  the State                                                            
would have other obligation other than providing funds.                                                                         
                                                                                                                                
Ms. Hanrahan stated that further information would be provided.                                                                 
                                                                                                                                
Co-Chair Wilken asked the  funding history attached to this project,                                                            
as this  is the seventh  request to demolish  this building  that he                                                            
has heard in as many years as a Member of this Committee.                                                                       
                                                                                                                                
Ms. Hanrahan stated that the information would be provided.                                                                     
                                                                                                                                
9:41:53 AM                                                                                                                    
                                                                                                                                
     Tongass Coast Aquarium, Inc.                                                                                               
     $100,000 Bond Funds                                                                                                        
     Reference No.: 40497                                                                                                       
     Category: Development                                                                                                      
     Location: Ketchikan Gateway Borough                                                                                        
     Election District: Ketchikan                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     A  grant  for the  Tongass  Coast  Aquarium,  which  will be  a                                                            
     regional  facility providing  education, research and  exhibits                                                            
     focusing  on the  coastal and  marine ecosystems  of  Southeast                                                            
     Alaska.  This project contributes  to the Department's  mission                                                            
     of  promoting  a healthy  economy  and  strong  communities  by                                                            
     providing educational opportunities and economic development                                                               
     in Southeast Alaska.                                                                                                       
                                                                                                                                
Ms. Hanrahan read the project  description and stated that the funds                                                            
would assist in constructing a 28,000 square foot aquarium.                                                                     
                                                                                                                                
Co-Chair  Green  asked that  the  funding  history, to  include  the                                                            
State's  total obligation;  the amount  the federal  government  has                                                            
provided; and  other revenue sources,  of this project be  provided.                                                            
                                                                                                                                
Ms. Hanrahan informed  that this project is currently  in the design                                                            
phase. No formal bids have  of yet been requested. The total cost is                                                            
projected to be $27 million.  The total funding request to the State                                                            
might range between one and four million dollars.                                                                               
                                                                                                                                
Co-Chair Green  asked for clarification  purposes, the amount  being                                                            
requested this year.                                                                                                            
                                                                                                                                
Ms. Hanrahan stated that the FY 06 request is for $100,000.                                                                     
                                                                                                                                
     Alaska Native Heritage Center                                                                                              
     $500,000 Gen Fund                                                                                                          
     Reference No.: 40498                                                                                                       
     Category: Development                                                                                                      
     Location: Anchorage Areawide                                                                                               
     Election District: Anchorage Areawide                                                                                      
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grant to the Alaskan  Native Heritage Center for the repair and                                                            
     construction  of  Alaskan Native  village  exhibit sites.  This                                                            
     request contributes  to the Department's mission of promoting a                                                            
     healthy  economy  and  strong  communities   by  assisting  the                                                            
     tourism  industry  and  those businesses  benefiting  from  the                                                            
     tourism industry.                                                                                                          
                                                                                                                                
Ms. Hanrahan  noted  that this is  the only  Native educational  and                                                            
cultural  center in  the State that  showcases the  cultures  of the                                                            
State's native  people "to the public  and to school children".  The                                                            
Center is a premier tourist  destination and, in partnership with an                                                            
international  and  Alaskan  tour  operators,  hosts  approximately                                                             
100,000 visitors annually.  It provides in excess of 100 jobs and is                                                            
a marketing outlet for Rural handicrafts and cultural items.                                                                    
                                                                                                                                
Co-Chair Green asked whether  this project could be supported by its                                                            
revenues, private donations, and other resources.                                                                               
                                                                                                                                
Ms.  Hanrahan   expressed   that   this  request   would  fund   the                                                            
construction of one village  site and a playground within that site.                                                            
The overall  plan  is to  construct five  village  sites that  would                                                            
represent the dwellings of each of the State's five regions.                                                                    
                                                                                                                                
Co-Chair Green  pointed out that the  request states that  the funds                                                            
would be for  the repair and construction  of exhibit sites.  Ticket                                                            
sales  and other income  processing  venues should  provide for  the                                                            
cost of  repairs, as the  project should  be self-sustaining  rather                                                            
than continuing to request State funding.                                                                                       
                                                                                                                                
Ms. Hanrahan stated that further information would be provided.                                                                 
                                                                                                                                
     Lower Kuskokwim School  District - The People's Learning Center                                                            
     $1,000,000 Gen Fund                                                                                                        
     Reference No.: 40502                                                                                                       
     Category: Development                                                                                                      
     Location: Bethel                                                                                                           
     Election District: Bethel                                                                                                  
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grant   to  the  Lower  Kuskokwim   School  District   for  the                                                            
     construction  of the Yuut Elitinaurviat, The  People's Learning                                                            
     Center.  This project contributes  to the Department's  mission                                                            
     of  promoting  a healthy  economy  and  strong  communities  by                                                            
     providing educational opportunities in the community.                                                                      
                                                                                                                                
Ms.  Hanrahan read  the project  description  and  noted that  three                                                            
million  of the total  eight million  dollar project  cost has  been                                                            
raised.  Additional  funding  has  been requested  from  the  Alaska                                                            
Native Education  Grant Program, the  Bureau of Indian Affairs,  and                                                            
from Alaska Congressman Ted Stevens' office.                                                                                    
                                                                                                                                
9:47:06 AM                                                                                                                    
                                                                                                                                
     City of Unalaska - Boat Harbor                                                                                             
     $2,000,000 Bond Funds                                                                                                      
     Reference No.: 40501                                                                                                       
     Category: Development                                                                                                      
     Location: Unalaska                                                                                                         
     Election District: Bristol Bay/Aleutians                                                                                   
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grant  to the  City of  Unalaska for  a boat  harbor at  Little                                                            
     South  America in  Unalaska.  This project  contributes to  the                                                            
     Department's mission  of promoting a healthy economy and strong                                                            
     communities   by   providing   infrastructure   necessary   for                                                            
     commercial enterprises and the community of Unalaska.                                                                      
                                                                                                                                
Ms. Hanrahan stated that  this request would address "a serious lack                                                            
of moorage"  in Unalaska.  The  breakwater construction  would  cost                                                            
approximately   $11  million.   While  the   City  of  Unalaska   is                                                            
responsible  for the inner harbor  improvements, this request  would                                                            
assist to support the total $17 million project cost.                                                                           
                                                                                                                                
Senator Stedman  asked whether additional  funding requests,  beyond                                                            
this two million dollar request, might be forthcoming.                                                                          
                                                                                                                                
Co-Chair Green asked the Department to provide this information.                                                                
                                                                                                                                
Senator Stedman  also asked  whether moorage  fees and other  income                                                            
venues established  by the City would  sufficiently provide  for on-                                                            
going  maintenance and  replacement  reserves for  the project  upon                                                            
completion. The  concern is that this harbor might  be in a state of                                                            
disrepair in 30 years as  has been the experience with other harbors                                                            
in the State.                                                                                                                   
                                                                                                                                
Senator Bunde asked that  information be provided about the plans to                                                            
fund  the on-going  operating  and maintenance  costs  of the  Lower                                                            
Kuskokwim School District - The People's Learning Center                                                                        
                                                                                                                                
Senator Olson  asked whether the Unalaska boat harbor  is located at                                                            
the staging  area site for the response  to the December  2004 wreak                                                            
of the tanker, the Selendang Ayu.                                                                                               
                                                                                                                                
Ms. Hanrahan would clarify that information.                                                                                    
                                                                                                                                
     City of Cordova - Cordova Center                                                                                           
     $1,000,000 Gen Fund                                                                                                        
     Reference No.: 40503                                                                                                       
     Category: Development                                                                                                      
     Location: Cordova                                                                                                          
     Election District: Cordova/Southeast Islands                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Grant  to  the  City  of Cordova  for  the  construction  of  a                                                            
     Community  Center in Cordova.  This Request contributes  to the                                                            
     Department's mission  or promoting a healthy economy and strong                                                            
     communities   by   providing   infrastructure   necessary   for                                                            
     commercial enterprises and the community of Cordova.                                                                       
                                                                                                                                
Ms. Hanrahan  stated that  this request would  provide for  a 32,000                                                            
square  foot  community   center  that  would  provide  conference,                                                             
convention,  theater   and  training  spaces;  oil  spill   response                                                            
training;  an  incident  and  emergency  command  and communication                                                             
center;  as well as  space for a  joint State  and federal  visitors                                                            
facility. A public  library for the elementary school  might also be                                                            
included.                                                                                                                       
                                                                                                                                
Senator  Bunde asked  that  information  be provided  regarding  the                                                            
funding source  for the center's operations  and maintenance  needs.                                                            
                                                                                                                                
Ms. Hanrahan  stated that  this concludes  the Department's  capital                                                            
project requests.                                                                                                               
                                                                                                                                
Co-Chair Wilken  understood that the Department might  be requesting                                                            
funds for a film project.                                                                                                       
                                                                                                                                
Ms. Hanrahan  responded  that  no request  in that  regard is  being                                                            
presented.                                                                                                                      
                                                                                                                                
AT EASE: 9:51:53 AM / 10:04:59 AM                                                                                           
                                                                                                                                
Department of Corrections                                                                                                     
                                                                                                                                
     Institution Closed Circuit TV System Recording                                                                             
     $2,500,000 Bond Funds                                                                                                      
     Reference No.: 40267                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Project will provide digital video recording systems within 11                                                             
     Correctional Facilities statewide.                                                                                         
                                                                                                                                
MARC ANTRIM,  Commissioner, Department  of Corrections, stated  that                                                            
this  request  would  provide  for  closed  circuit  television  and                                                            
digital video recording  systems through which to monitor prisoners.                                                            
The first phase of the  project would be the installation of cameras                                                            
and the  second phase  would be  the installation  of the  recording                                                            
equipment.  This project would  expand the  current system  to allow                                                            
the monitoring  of living  areas in  addition to  doorway and  other                                                            
traffic  areas.  In  addition  to  reducing  incidents  of  prisoner                                                            
violence and property damage,  the system would allow the Department                                                            
to comply with federal laws enacted in 2003.                                                                                    
                                                                                                                                
     Deferred Maintenance, Repair, and Renovations                                                                              
     $8,000,000 Bond Funds                                                                                                      
     Reference No.: 36788                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 60/30/2011                                                                           
     On-Going Project                                                                                                           
     Essential repair and renovation of electrical, mechanical,                                                                 
     roofing, fire/life  safety, security, structural, food service,                                                            
     pavements  and  site  drainage   systems  at  all correctional                                                             
     facilities.  This work  is required to  enable continued  safe,                                                            
     secure  and efficient  operation of  the 24-hour incarceration                                                             
     facilities.                                                                                                                
                                                                                                                                
Commissioner  Antrim  stated that  this  request would  address  the                                                            
extensive list  of deferred maintenance needs of the  117 facilities                                                            
maintained  by the  Department.  The  majority of  these  facilities                                                            
exceed twenty  years of age; ten percent are at least  30 years old;                                                            
and another ten  percent exceed 40 years of age. A  list of needs is                                                            
included in the packet.                                                                                                         
                                                                                                                                
     Statewide Equipment Replacement                                                                                            
     $450,000 Bond Funds                                                                                                        
     Reference No.: 30815                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2011                                                                           
     On-Going Project                                                                                                           
     Replace   essential  security,   life  safety,  food   service,                                                            
     laundry, medical,  records storage and maintenance equipment at                                                            
     all correctional  institutions.  This equipment is required  to                                                            
     provide  continued   support  of  the  officers  and  staff  in                                                            
     confining  incarcerated   offenders  and  in  maintaining  safe                                                            
     operation of the institutions.                                                                                             
                                                                                                                                
Commissioner  Antrim stated that these  funds would provide  for the                                                            
replacement  of many critical items,  including such things  as snow                                                            
removal equipment,  grounds equipment such as lawnmowers,  and fixed                                                            
kitchen items  such as stoves, steam  kettles, and microwave  ovens.                                                            
Maintenance needs  for such items has been deferred  for many years.                                                            
                                                                                                                                
     Community  Jails  Life,  Safety and  Security  Renovations  and                                                            
     Miscellaneous Equipment                                                                                                    
     $100,000 Bond Funds                                                                                                        
     Reference No.: 30818                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2011                                                                           
     On-Going Project                                                                                                           
     This project  funds essential  safety and security renovations                                                             
     and  equipment at  fourteen  (14) local  governmental  contract                                                            
     jails.  These  jails  require  repairs   and  modifications  to                                                            
     continue their operation.                                                                                                  
                                                                                                                                
Commissioner Antrim noted  that this request would provide necessary                                                            
upgrades  at 14 community  jails that, while  operated by the  local                                                            
community police  departments, are under contract  to the State. The                                                            
upgrades would  be akin to the upgrades  that would be occurring  at                                                            
the State's jail facilities.                                                                                                    
                                                                                                                                
Co-Chair  Green announced  that  this  concludes the  Department  of                                                            
Commerce, Community  and Economic Development and  the Department of                                                            
Corrections capital project requests.                                                                                           
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                

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