Legislature(1995 - 1996)

04/11/1995 03:27 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 SSTA - 4/11/95                                                                
                                                                               
         SB 136 APPROP: FY 96 CAPITAL PROJECTS BUDGET                        
                                                                               
 CHAIRMAN SHARP calls the Senate State Affairs Committee to order at           
 3:27 p.m. and brings up SB 136 as the first order of business                 
 before the committee.  The chairman calls the first witness.                  
                                                                               
 Number 020                                                                    
                                                                               
 DAN FAUSKE, CEO, Alaska Housing Finance Corporation (AHFC),                   
 introduces Les Campbell from AHFC's budget office.  Mr. Fauske                
 reads a written statement outlining AHFC's mission.                           
                                                                               
 Number 078                                                                    
                                                                               
 SENATOR DONLEY asks what the difference is between corporate match            
 and corporate receipts.                                                       
                                                                               
 MR. FAUSKE responds both are corporate receipts.                              
                                                                               
 Number 090                                                                    
                                                                               
 LES CAMPBELL, from AHFC's budget office begins a brief description            
 of line items in SB 136.                                                      
                                                                               
 MR. CAMPBELL informs the committee that HUD (Housing and Urban                
 Development) will not allow public housing to be demolished unless            
 the buildings are being replaced.                                             
                                                                               
 Number 160                                                                    
                                                                               
 MR. CAMPBELL continues with his description of line items in SB
 136.                                                                          
                                                                               
 CHAIRMAN SHARP asks how much the corporate receipts were last year            
 for line item #3.                                                             
                                                                               
 MR. CAMPBELL responds that last years corporate receipts were $1.5            
 million in the operating budget and $5.7 million in the capital               
 budget.                                                                       
                                                                               
 SENATOR DONLEY asks Mr. Campbell to find out how it was decided how           
 much money goes to rural areas and how much money goes to urban               
 areas.                                                                        
                                                                               
 Number 240                                                                    
                                                                               
 CHAIRMAN SHARP asks for more information on the ISER (Institute for           
 Social & Economic Research) survey.                                           
                                                                               
 MR. FAUSKE replies that AHFC paid ISER to conduct the survey, which           
 was done in the Anchorage Bowl area.                                          
                                                                               
 Number 260                                                                    
                                                                               
 CHAIRMAN SHARP asks that all data on that survey be submitted to              
 the committee.                                                                
                                                                               
 Number 270                                                                    
                                                                               
 MR. CAMPBELL continues with his review of line items in SB 136.               
                                                                               
 Number 330                                                                    
                                                                               
 SENATOR DONLEY expresses concern over line item #7, which is a                
 grant to replace homes in the event of a natural disaster, and asks           
 AHFC to submit more information to the committee regarding that               
 line item.                                                                    
                                                                               
 MR. CAMPBELL continues with his review of line items in SB 136.               
                                                                               
 Number 430                                                                    
                                                                               
 SENATOR DONLEY asks what the term "congregate housing" means.                 
                                                                               
 MR. CAMPBELL replies that the money goes to special needs groups.             
 Either multi-family housing special needs, or for somebody with a             
 disability.  This money is not designated for seniors, although               
 senior facilities could apply for the program.                                
                                                                               
 SENATOR DONLEY asks if it is a new program.                                   
                                                                               
 MR. CAMPBELL responds it was funded last year under "other                    
 competitive grants."                                                          
                                                                               
 Number 450                                                                    
                                                                               
 MR. CAMPBELL continues with his review of line items in SB 136.               
                                                                               
 Number 590                                                                    
                                                                               
 [It is clarified by AHFC that "other receipts" is not necessarily             
 always "corporate receipts."]                                                 
                                                                               
 TAPE 95-17, SIDE B                                                            
                                                                               
 Number 595                                                                    
                                                                               
 MR. CAMPBELL continues with his review of line items in SB 136.               
                                                                               
 MR. CAMPBELL notes that most assistance doesn't go directly to                
 individuals; It goes into a project.                                          
                                                                               
 Number 492                                                                    
                                                                               
 SENATOR DONLEY asks the chairman if he was intending to make                  
 revisions or amendments to SB 136 today in committee.                         
                                                                               
 CHAIRMAN SHARP responds he would just like to compile information             
 and recommendations for the Finance Committee.  He hopes that input           
 and follow-up information can be submitted to the Finance                     
 Committee.                                                                    
                                                                               
 SENATOR DONLEY asks about line items #25 and #26.                             
                                                                               
 Number 480                                                                    
                                                                               
 MR. CAMPBELL informs the committee that #26 was under a different             
 program in prior years, but #25 is a new program.                             
                                                                               
 CHAIRMAN SHARP asks Mr. Campbell if #26 was general funds in prior            
 fiscal years.                                                                 
                                                                               
 MR. CAMPBELL responds that is correct.                                        
                                                                               
 Number 475                                                                    
                                                                               
 SENATOR DONLEY asks where corporate receipts come from.                       
                                                                               
 MR. FAUSKE replies that corporate receipts come from a combination            
 of federal funds and also from redirection of profits made by AHFC.           
                                                                               
 SENATOR DONLEY asks, since people making mortgage payments to AHFC            
 are funding these programs, if we shouldn't just cut some of these            
 programs in order to lower mortgage payments.                                 
 MR. FAUSKE responds that interest rates for mortgages are based on            
 bond programs and the prevailing market rate.  Also, people making            
 mortgage payments to AHFC are only one source of revenue.                     
                                                                               
 Number 450                                                                    
                                                                               
 CHAIRMAN SHARP asks what the anticipated net profit for AHFC will             
 be in FY 96.                                                                  
                                                                               
 MR. CAMPBELL replies that in 1995, it was $68,000,000; in 1994 it             
 was $100,000,000; in 1993 it was $79,000,000.                                 
                                                                               
 SENATOR DONLEY asks for clarification on whether or not AHFC has to           
 pay taxes on its' profits.                                                    
                                                                               
 MR. CAMPBELL responds that AHFC issues both taxable and tax-exempt            
 debt.                                                                         
                                                                               
 CHAIRMAN SHARP asks how many of these projects were in existence              
 under ASHA (Alaska State Housing Authority) before the merger of              
 ASHA and AHFC.                                                                
                                                                               
 Number 415                                                                    
                                                                               
 MR. CAMPBELL replies that the public housing projects are ASHA                
 projects.                                                                     
                                                                               
 Number 385                                                                    
                                                                               
 DARRYL JOHNSON, Division of Mental Health & Developmental                     
 Disabilities, Department of Health & Social Services, informs the             
 committee that item #25 is necessary to build special housing for             
 12 people still in Harborview Developmental Center.  Without those            
 funds, the department will not be able to close down Harborview.              
                                                                               
 Number 377                                                                    
                                                                               
 SENATOR HALFORD asked where item #25 was originally funded, or if             
 it is a new budget item.                                                      
                                                                               
 MR. JOHNSON replies he does not know and will have to get back to             
 the committee regarding that question.                                        
                                                                               
 TOM LEHMAN, Department of Health & Social Services, adds that item            
                                                                               
 CHAIRMAN SHARP asks if item #25 could qualify for the program under           
 item #12.                                                                     
                                                                               
 MR. CAMPBELL responds it could qualify under item #12.                        
                                                                               
 TIM SULLIVAN, Executive Director, Alaska Custom Home Program,                 
 speaks regarding item #16, and explains the program.                          
                                                                               
 Number 330                                                                    
                                                                               
 CHAIRMAN SHARP announces that this meeting is to gather information           
 in order to report to the Finance Committee.  The Finance Committee           
 does not intend to finance new projects or programs, or expand                
 existing programs without a lot of scrutiny.                                  
                                                                               
 Number 300                                                                    
                                                                               
 WENDY REDMAN, University of Alaska, notes that a handout from the             
 university was distributed to committee members.  The handout                 
 contains a summary of the university's total capital requests.  Ms.           
 Redman gives a brief overview of the university's capital projects.           
                                                                               
                                                                               
 Number 195                                                                    
                                                                               
 CHAIRMAN SHARP notes that the negative appropriation listed under             
 the Alaska Railroad Corporation is a lapse of funds back into the             
 general fund.  The chairman calls for an at ease at 4:51 p.m.                 
                                                                               
 CHAIRMAN SHARP calls the Senate State Affairs Committee back to               
 order at 4:55 p.m.                                                            
                                                                               
 SENATOR RANDY PHILLIPS makes a motion to discharge SB 136 from the            
 Senate State Affairs Committee with individual recommendations.               
                                                                               
 Number 168                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, orders SB 136 released from             
 committee with individual recommendations.                                    

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