Legislature(2009 - 2010)SENATE FINANCE 532

03/18/2010 03:00 PM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 230 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
+= SB 253 APPROP: DEFERRED MAINTENANCE/REPLACEMENT TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 305 SEPARATE OIL & GAS PRODUCTION TAX TELECONFERENCED
SENATE BILL NO. 230                                                                                                           
                                                                                                                                
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     and  other  appropriations;  making  appropriations  to                                                                    
     capitalize  funds;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
SENATE BILL NO. 253                                                                                                           
                                                                                                                                
     "An  Act  making  capital appropriations  for  deferred                                                                    
     maintenance   projects,   equipment  replacement,   and                                                                    
     emergency  repairs;  and  providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
                 Department of Corrections                                                                                    
                                                                                                                                
LESLIE HOUSTON, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                            
SERVICES,   DEPARTMENT   OF   CORRECTIONS,   discussed   the                                                                    
appropriation and deferred maintenance requests.                                                                                
                                                                                                                                
DM  AMD 49376                                                                                                                   
     Deferred Maintenance Projects                                                                                              
     $6,500,000                                                                                                                 
                                                                                                                                
The department requested general fund dollars to support 11                                                                     
projects. The projects, listed by priority, were as                                                                             
follows:                                                                                                                        
                                                                                                                                
   · Anvil Mountain: Replace security control system                                                                            
     located in both security control stations. Fire/Life                                                                       
     safety code requirement                                                                                                    
     $750,000                                                                                                                   
                                                                                                                                
   · Anvil Mountain: Construct new utilidor. Fire/Life                                                                          
     safety code requirement                                                                                                    
     $1,500,000                                                                                                                 
                                                                                                                                
   · Anvil Mountain Correctional Facility: Replace failing                                                                      
     septic tank with waste water treatment plant.                                                                              
     $1,500,000                                                                                                                 
                                                                                                                                
   · Palmer: Replace fire pump and fix sprinkler piping.                                                                        
     $750,000                                                                                                                   
                                                                                                                                
   · Wildwood: Replace roofing system.                                                                                          
     $940,000                                                                                                                   
                                                                                                                                
   · Spring Creek: Analyze security control system and                                                                          
     perimeter security.                                                                                                        
     $145,000                                                                                                                   
                                                                                                                                
   · Ketchikan: Design secure efficient lighting system.                                                                        
     $55,000                                                                                                                    
                                                                                                                                
   · Ketchikan: Replace existing lighting system with                                                                           
     secure and efficient lighting system.                                                                                      
     $390,000                                                                                                                   
                                                                                                                                
   · Palmer: Replace obsolete fire alarm panels in medical,                                                                     
     administration, warehouse and maintenance shop.                                                                            
     $200,000                                                                                                                   
                                                                                                                                
  · Hiland Mountain: Replace and expand exterior freezer.                                                                       
     $140,000                                                                                                                   
                                                                                                                                
   · Wildwood: Replace fire alarm system.                                                                                       
     $130,000                                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair  Stedman  solicited  questions  pertaining  to  the                                                                    
project  list.  No  questions   being  offered,  Ms.  Huston                                                                    
continued  to the  FY11 capital  budget  request. Two  items                                                                    
comprised the departmental request:                                                                                             
                                                                                                                                
CAP  RN 45637                                                                                                                   
     Anchorage    Correctional   Complex    Renovation   and                                                                    
     Remodeling                                                                                                                 
     $350,000                                                                                                                   
                                                                                                                                
CAP  RN 41516                                                                                                                   
     Community Jails Repairs, Renovations, and Equipment                                                                        
     $100,000                                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair  Stedman  solicited  questions  pertaining  to  the                                                                    
project requests.                                                                                                               
                                                                                                                                
                                                                                                                                
                     Department of Law                                                                                        
                                                                                                                              
CAP  49182                                                                                                                      
     Fairbanks and Anchorage Key Card Office Access                                                                             
     $150,000                                                                                                                   
                                                                                                                                
DAVE BALISDELL, DIRECTOR,  ADMINISTRATIVE SERVICES DIRECTOR,                                                                    
DEPARTMENT  OF LAW,  explained that  the request  would fund                                                                    
implementation   of  a   Key   Card   system  in   Anchorage                                                                    
facilities.  Metal keys  were currently  being  used in  the                                                                    
facilities.  When  the  keys  are lost,  all  locks  in  the                                                                    
building must  be changed, which is  of considerable expense                                                                    
to the department. Key Cards would alleviate the issue.                                                                         
                                                                                                                                
Senator  Thomas wondered  about future  technology involving                                                                    
retinal scans. Mr. Blaisdale replied  that the technology is                                                                    
available but expensive.                                                                                                        
                                                                                                                                
Co-Chair  Stedman   invited  questions  pertaining   to  the                                                                    
request.                                                                                                                        
                                                                                                                                
              Office of the Governor Language                                                                                 
                                                                                                                                
LINDA   PEREZ,  ADMINISTRATIVE   DIRECTOR,  OFFICE   OF  THE                                                                    
GOVERNOR,  gave  an  overview  of  the  two  capital  budget                                                                    
project requests.                                                                                                               
                                                                                                                                
CAP  49388                                                                                                                      
     Division of Elections Technology Refresh                                                                                   
     $123,800                                                                                                                   
                                                                                                                                
The request represents the  scheduled replacement of desktop                                                                    
computers,  software,  and  operating  systems,  within  the                                                                    
department, every four years.                                                                                                   
                                                                                                                                
CAP  RN AMD 48416                                                                                                               
     Elections Reform Under the Federal Help America Vote                                                                       
     Act                                                                                                                        
     $1,499,900                                                                                                                 
                                                                                                                                
Ms. Perez explained  that the request was  to expend federal                                                                    
monies received in  the election fund from  the Help America                                                                    
Vote  Act,  which  is  an  ongoing  appropriation  from  the                                                                    
federal  government  to  better  the  process  of  elections                                                                    
throughout the state.                                                                                                           
                                                                                                                                
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
OFFICE OF THE  GOVERNOR, pointed out changes  in the capital                                                                    
language sections of the budget.  There were four amendments                                                                    
in the  language section that had  already been transmitted.                                                                    
Section 7 allows for state  agencies to refer to Legislative                                                                    
Budget and  Audit concerning  incoming requests  for federal                                                                    
or other program  receipts. Section 8 is  the Fund Transfers                                                                    
portion of the  bill. Sub-section (a), speaks  to the Alaska                                                                    
Capital  Income  Fund.  Sub-section   (b)  pertains  to  the                                                                    
federal Help America Vote Act  funds; Line 24 was amended to                                                                    
read $1,425,000.  Line 25 was  amended to read  $74,900 from                                                                    
the  general  fund for  the  matching  portion. Because  the                                                                    
Division  of  Elections had  been  notified  that the  match                                                                    
requirements  had  been met  and  no  additional funds  were                                                                    
necessary, the administration planed  to submit an amendment                                                                    
that would remove the general fund match requirement.                                                                           
                                                                                                                                
3:23:11 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
Ms.  Rehfeld discussed  Sub-sections  (c), which  was a  $25                                                                    
million request  for the Renewable  Energy Fund.  The amount                                                                    
in Sub-section (d)  was amended to read  $140 million, based                                                                    
on the  latest information available from  the Department of                                                                    
Revenue (DOR).                                                                                                                  
                                                                                                                                
Co-Chair Stedman  requested a detailed breakdown  of who was                                                                    
being  paid  by  TransCanada,  and  how  much.  Ms.  Rehfeld                                                                    
replied that DOR compiled a  monthly report, and that copies                                                                    
would be made available for the committee.                                                                                      
                                                                                                                                
Ms. Rehfeld  continued to Sub-section  (e), which  speaks to                                                                    
the Alaska  Industrial Development Export  Authority (AIDEA)                                                                    
dividend  into the  power  project fund.  Section  9 is  the                                                                    
insurance  claim   section.  Section  10  is   the  National                                                                    
Petroleum Reserve-  Alaska Impact  Grant Program,  which was                                                                    
reduced to $4,847,165, for specific  grants. The revenue was                                                                    
derived  from leasing,  and the  additional revenue  had not                                                                    
been anticipated  during this period, thus  the reduction of                                                                    
the grant  amount in the  budget. Section 11 deals  with the                                                                    
cost of certificates of participation.                                                                                          
                                                                                                                                
3:25:24 PM                                                                                                                    
                                                                                                                                
Ms. Rehfeld highlighted that one  of the proposed amendments                                                                    
concerns  the Alaska  Class  Ferry.  The amendment  requests                                                                    
access to $60 million that had  been set aside in the vessel                                                                    
replacement fund,  and the redirection of  two prior federal                                                                    
appropriations for  fast ferries  to the Alaska  Class Ferry                                                                    
Project.  Section  12  provides  for the  lapse  of  various                                                                    
capital appropriations and an effective date.                                                                                   
                                                                                                                                
Co-Chair  Hoffman  asked  for  a  list  of  lapse  extension                                                                    
projects. Ms.  Rehfeld explained that the  section describes                                                                    
appropriations made in the various  components of the entire                                                                    
capital  budget  that  would  have  a  lapse  extension  for                                                                    
capital projects.                                                                                                               
                                                                                                                                
3:26:56 PM                                                                                                                    
                                                                                                                                
Senator  Thomas noted  similar  Information Technology  (IT)                                                                    
project requests  within different departments.  He wondered                                                                    
if individual  contractors had been hired  by departments to                                                                    
research  the  IT  requests. Ms.  Rehfeld  replied  that  an                                                                    
extensive  IT  planning  process was  employed  yearly,  and                                                                    
projects  went  through  internal  review.  The  departments                                                                    
share  information  in  order   to  prevent  duplication  of                                                                    
information between  agencies. She felt that  the items that                                                                    
had been  brought forward were of  significant importance to                                                                    
the  department.  All  IT  projects   are  reviewed  by  the                                                                    
Enterprise  Investment  Board,  which is  comprised  of  Ms.                                                                    
Rehfeld,    the    Commissioner   of    Administration,    a                                                                    
representative of the technical  group and one other member.                                                                    
The  board  goes  through  the   review  process  of  agency                                                                    
requests    and    formulates     budget    decisions    and                                                                    
recommendations to the governor.                                                                                                
                                                                                                                                
Co-Chair   Hoffman   asked   why  Alaska   Housing   Capital                                                                    
Corporation  funds, and  not the  general funds,  were being                                                                    
considered  as the  funding source  for the  $150,000 Alaska                                                                    
Gas Inducement  Act reimbursement  fund. Ms.  Rehfeld stated                                                                    
that  the administration  felt that  the funding  source was                                                                    
the most appropriate source for the project.                                                                                    
                                                                                                                                
3:31:05 PM AT EASE                                                                                                            
4:10:28 PM RECONVENE                                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
New CSSB305-REV-TAX-03-16-10 Oil and Gas Decoupling.pdf SFIN 3/18/2010 3:00:00 PM
SB 305
SB 305 031810 Proposed CS SFC Version S.pdf SFIN 3/18/2010 3:00:00 PM
SB 305
SB 305 Amendment 2 031810 SFIN .pdf SFIN 3/18/2010 3:00:00 PM
SB 305
SB 305 031810 Amendment 1 .pdf SFIN 3/18/2010 3:00:00 PM
SB 305
SB 305 2010 04 18 Marks SB305 CS&Amends SFC.pdf SFIN 3/18/2010 3:00:00 PM
SB 305
CSSB 305(FIN) 031910 Version P.pdf SFIN 3/18/2010 3:00:00 PM
SB 305