Legislature(2005 - 2006)FBX LIO Conf Rm

04/08/2005 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Scheduled But Not Heard
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSSB 144(RES) Out of Committee
Moved HCR 2 Out of Committee
Heard & Held
Moved SB 103 Out of Committee
Heard & Held
Moved CSSB 155(FIN) Out of Committee
10:35:31 AM                                                                                                                   
     SENATE BILL NO. 155                                                                                                        
     "An  Act  making  appropriations   from  the  earnings  reserve                                                            
     account  for construction of  an integrated science  complex at                                                            
     the University  of Alaska in Anchorage, for replacement  of the                                                            
     virology   laboratory  in  Fairbanks,  for  expansion   of  the                                                            
     Anchorage Museum of  History and Art, for the major maintenance                                                            
     grant fund, and for other capital projects related to                                                                      
     education; and providing for an effective date."                                                                           
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
SENATOR  BEN STEVENS,  Sponsor  of the  bill, indicated  a  proposed                                                            
committee substitute was distributed.                                                                                           
Co-Chair Wilken  moved for adoption of CS SB 155,  24-LS0687\S, as a                                                            
working document.                                                                                                               
Co-Chair Green objected for discussion purposes.                                                                                
10:36:53 AM                                                                                                                   
Senator  B. Stevens explained  the committee  substitute inserted  a                                                            
$1.1  million  appropriation   for  the  completion   of  the  Delta                                                            
Elementary  School to address population  growth resulting  from the                                                            
expansion  of Fort  Greely. The  majority  of the  funding for  this                                                            
project has been received as federal "impact money".                                                                            
Senator B.  Stevens also noted language  inserted on page3,  line 21                                                            
to provide  "design and construction"  for the University  of Alaska                                                            
for additions to the Matanuska-Susitna campus.                                                                                  
10:37:44 AM                                                                                                                   
Senator  Bunde  asked  if the  Department  of  Education  and  Early                                                            
Development provided the  list of all the projects contained in this                                                            
legislation as recommended projects.                                                                                            
10:38:15 AM                                                                                                                   
Senator B.  Stevens replied  that the list  of projects included  in                                                            
Section 2  of the bill  was assembled "mainly  at the indulgence  of                                                            
the members"  and were "pulled off  the current capital improvement                                                             
projects list."                                                                                                                 
10:38:36 AM                                                                                                                   
Senator  Bunde asked  if the  Delta  Elementary School  project  was                                                            
included in the list.                                                                                                           
10:38:43 AM                                                                                                                   
Senator B. Stevens  was unsure, noting the local borough  government                                                            
submitted a  request for these funds.  He offered to distribute  the                                                            
written request.                                                                                                                
10:39:11 AM                                                                                                                   
Senator Bunde  understood  the project was  included in the  capital                                                            
improvement projects list.                                                                                                      
10:39:17 AM                                                                                                                   
Co-Chair Green  removed her objection  and the committee  substitute                                                            
was ADOPTED without further objection.                                                                                          
10:39:45 AM                                                                                                                   
Amendment #1:  This amendment inserts  a new bill section  on page 1                                                            
following line 6 of the committee substitute to read as follows.                                                                
     Section 1.  LEGISLATIVE INTENT FOR SECTIONS 2  AND 3. It is the                                                            
     intent  of the legislature  that schools  funded under  secs. 2                                                            
     and  3  of this  Act  be adequately  maintained  and  that  the                                                            
     Department  of  Education  and Early  Development  enforce  the                                                            
     preventative    maintenance    plan    requirements    of    AS                                                            
     14.11.011(b)(1) and (4).                                                                                                   
Co-Chair Wilken  moved for adoption and objected for  clarification.                                                            
Co-Chair Wilken  offered a motion  to amend the amendment  to delete                                                            
"and (4)" indicating  the amended language was technically  correct.                                                            
10:41:47 AM                                                                                                                   
Co-Chair  Green recalled the  Committee discussed  this matter  in a                                                            
previous  session  in  response   to  the  findings  of  a  deferred                                                            
maintenance task force.                                                                                                         
There was no objection and the amendment was AMENDED.                                                                           
10:42:04 AM                                                                                                                   
Without objection the amended amendment was ADOPTED.                                                                            
10:42:44 AM                                                                                                                   
Amendment  #3: This  conceptual  amendment deletes  the $10,858,662                                                             
appropriation  for Glennallen Elementary School improvement  in REAA                                                            
17, Copper River School  District on page 2, lines 27 and 28 and the                                                            
$1,100,000 appropriation  for Delta Elementary School  Completion in                                                            
REAA 15, Delta/Greely School District.                                                                                          
Co-Chair Wilken  moved for adoption  and objected to the  motion for                                                            
Co-Chair Wilken  remarked that the  two projects identified  in this                                                            
amendment are unique in  that they are located in Regional Education                                                            
Attendance  Areas (REAA).  He "took great  exception" to this  grant                                                            
process that is  offered to "folks who don't pay their  fair share."                                                            
Residents of the  community of Fairbanks contribute  $20 million "to                                                            
have the privilege of getting  State money", Anchorage residents pay                                                            
$70  million this  year for  their  schools, and  Wasilla  residents                                                            
contribute almost $14 million.  Residents of the Copper River, Delta                                                            
and Greely  areas are  "paying nothing",  although both communities                                                             
have that capacity.  State funding  for these projects furthers  the                                                            
argument that local governance  is not in the best interest of these                                                            
residents.  The State should not continue  to "throw money  at folks                                                            
that will not realize their personal responsibilities."                                                                         
Co-Chair Green  and Senator Hoffman objected to the  adoption of the                                                            
10:44:25 AM                                                                                                                   
Senator B.  Stevens remarked that  as sponsor of the bill,  he hoped                                                            
that the amendment would  not be accepted. The amendment sponsor had                                                            
made valid  points, which  he expected would  be addressed  in other                                                            
pending legislation.                                                                                                            
10:44:52 AM                                                                                                                   
Senator Bunde  agreed that  SB 112 might  address Co-Chair  Wilken's                                                            
A roll call was taken on the motion.                                                                                            
IN FAVOR: Senator Bunde, Co-Chair Wilken                                                                                        
OPPOSED: Senator  Stedman, Senator Hoffman, Senator  Olson, Co-Chair                                                            
ABSENT: Senator Dyson                                                                                                           
The motion FAILED (2-4-1)                                                                                                       
The amendment FAILED to be adopted.                                                                                             
10:45:52 AM                                                                                                                   
Amendment #2: This amendment  inserts a $6,200,000 appropriation for                                                            
Noatak School  Relocation for the  Northwest Arctic Borough  on page                                                            
2, line 7.                                                                                                                      
Senator Olson moved for adoption.                                                                                               
Senator Bunde objected.                                                                                                         
Senator  Olson explained  that the  Noatak School  is currently  200                                                            
percent over its capacity  and is projected to have 320 percent over                                                            
capacity  in five  years.  In addition,  SB  142, sponsored  by  the                                                            
Senate Labor  and Commerce  Committee relates  to lands surrounding                                                             
the school.  He  distributed  a map, which  shows  that the  current                                                            
location of the school  is infringing on the aviation clearance area                                                            
according   to  Federal   Aviation   Administration   (FAA)   safety                                                            
regulations. The intent is to relocate the school.                                                                              
10:47:09 AM                                                                                                                   
Co-Chair  Green  asked  if the  future  location  of the  school  is                                                            
indicated on the map.                                                                                                           
10:47:15 AM                                                                                                                   
Senator Olson answered it is not.                                                                                               
10:47:17 AM                                                                                                                   
Senator  Bunde commented  that the  school would  be located  in the                                                            
Northwest  Arctic  Borough,  and  asked  if the  residents  of  that                                                            
jurisdiction contribute to their education funding.                                                                             
10:47:33 AM                                                                                                                   
Senator Olson replied they do contribute.                                                                                       
10:47:37 AM                                                                                                                   
Co-Chair Wilken affirmed.                                                                                                       
AT EASE 10:48:17 AM / 10:49:07 AM                                                                                           
Amendment #4:  This amendment deletes the $10 million  appropriation                                                            
for the  Kodiak College in  Section 2 on page  2, lines 16 -  18 and                                                            
inserts similar  language  in Section 4.  UNIVERSITY OF ALASKA.,  on                                                            
page 3, following line 25 to read as follows.                                                                                   
     (g) The sum of $10,000,000 is appropriated from the earnings                                                               
     reserve account (AS 37.13.145) to the University of Alaska for                                                             
      Kodiak College vocational technology addition phase I.                                                                    
Accompanying explanatory language reads as follows.                                                                             
     This corrects an error in placement of the project. It should                                                              
     have been included under the University section.                                                                           
Co-Chair Green moved for adoption.                                                                                              
10:49:55 AM                                                                                                                   
Senator B. Stevens outlined  the amendment. He stated that the funds                                                            
should  be appropriated  to the  University rather  than the  Kodiak                                                            
Island Borough.                                                                                                                 
Co-Chair Green  asked if the local school district  is involved with                                                            
this project.                                                                                                                   
Senator B. Stevens  responded that only the University  is involved.                                                            
Co-Chair  Green noted  that  at times,  local school  districts  are                                                            
involved in projects in conjunction with the University.                                                                        
The amendment was ADOPTED without objection.                                                                                    
10:51:11 AM                                                                                                                   
Co-Chair Wilken  asked if at any time every project  included in the                                                            
major maintenance list has been completed.                                                                                      
10:51:48 AM                                                                                                                   
EDDY  JEANS,  Director,  School  Finance  Division,   Department  of                                                            
Education and  Early Development, testified he was  not aware of the                                                            
list ever "going to zero".                                                                                                      
Co-Chair  Wilken asked the  length of time  some projects have  been                                                            
included in the list awaiting action.                                                                                           
Mr. Jeans  replied that a  number of the projects  have been  on the                                                            
list for over five years.                                                                                                       
10:52:32 AM                                                                                                                   
Co-Chair Wilken  offered a motion to report CS SB  155, 24-LS0687\S,                                                            
as amended from Committee with individual recommendations.                                                                      
There was no objection and CS SB 155 (FIN) MOVED from Committee.                                                                

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