Legislature(1999 - 2000)
03/31/2000 08:05 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 31, 2000
8:05 A.M.
TAPE HFC 00 - 95, Side 1
TAPE HFC 00 - 95, Side 2
RECONVENED
Co-Chair Therriault called the House Finance Committee
meeting to order at 8:05 a.m.
PRESENT
Co-Chair Mulder
Co-Chair Therriault Representative Foster
Vice Chair Bunde Representative Grussendorf
Representative Austerman
Representative J. Davies Representative Phillips
Representative G. Davis Representative Williams.
Representative Moses was absent from the meeting.
ALSO PRESENT
Chris Christensen, Staff Counsel, Alaska Court System; Wendy
Redman, Vice President, Statewide Programs, University of
Alaska; Karen Crane, Director, Division of Libraries,
Archives and Museums; Nancy Slagle, Director, Division of
Administrative Services, Department of Transportation and
Public Facilities; Kurt Parkan, Deputy Commissioner,
Department of Transportation and Public Facilities
SUMMARY
OVERVIEW: CAPITAL BUDGET
NO COMMITTEE ACTION
(The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 21st Legislative Session, contact 465-
2156. After the 21st Legislative Session they will be
available through the Legislative Library at 465-3808.)
Number 010
UNIVERSITY OF ALASKA
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA provided information on the university's capital
budget requests.
University of Alaska Small Business Development Programs
450,000
Ms. Redman discussed the request. She noted that there are
two centers. This is a state match, which would leverage
$2.5 million federal dollars and $2 million dollars in
private receipts. Ms. Redman discussed programs that are
funded through the request: the Buy Alaska Program and the
Technology Transfer Program. She noted that the funds were
placed in the capital budget because it is an easier place
to secure funds. The University of Alaska received $450
thousand dollars in FY00. The request in FY00 was $500
thousand dollars.
Number 227
University of Alaska, Fairbanks - Hutchison Career Center
5,000,000
Ms. Redman discussed the request. She noted that it is a
joint project with the Fairbanks North Star Borough. The
current space is at its maximum capacity. The expansion will
add space for automotive technology and food service. The
Borough would pay 60 percent and would be funded through a
bond election of $14 million dollars that goes out May 2,
2000. The university's share would be completed with the
request.
In response to a question by Representative G. Davis Ms.
Redman noted that increased revenues would pay increased
operating costs. The Career Center has been operating since
1972.
Number 459
ALASKA COURT SYSTEM
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM
reviewed the agency's capital budget request. He noted that
there are five projects.
Acquisition of Automated Case Management System 1,450,000
Mr. Christensen noted that this is their first priority. He
observed that the current systems cannot communicate to each
other and that there is no interactive financial
information. This affects the court's ability to analyze
operations. It is also difficult to give timely responses to
the legislature; and it makes electronic transfer of
information almost impossible. Paper court records are given
to other agencies. The current system affects the court's
ability to impose proper sentences due to inadequate
information regarding previous offenses. This is a two-year
project. During the first year funds would be used to
procure a software system and licenses. Personal computers
already have hardware.
In response to a question by Representative G. Davis, Mr.
Christensen clarified that they will also need $1,450,000
dollars in FY02. Software packages can be purchased that are
85 percent complete.
Co-Chair Therriault observed that basic information could be
built in to the package. Mr. Christensen agreed, but pointed
out that there are some items that would have to be
specialized.
Number 663
Mr. Christensen noted that the majority of their PC's are
not compatible to a network setup.
Representative G. Davis stressed that the collection of
surcharges that should be charged, but are not currently
being charged would pay for the system. Mr. Christensen
noted that the new system could track up to 99 surcharges.
He added that the current system cannot track surcharges.
Deferred Maintenance Projects 1,500,000
Mr. Christensen observed that there are 14 deferred
maintenance projects on the list. The funding would cover
items 1 - 6.
Court Security Projects 1,000,000
Mr. Christensen stressed the need for security equipment.
The request is limited to items that do not require
personnel costs.
Statewide Court Building Code and Energy Upgrades 400,000
Mr. Christensen noted that there are currently five courts
that are not in compliance with the Americans with
Disability Act.
Records Archival System Upgrade 450,000
Mr. Christensen noted that this is a one-year project. The
Alaska Court System is required to keep records. They are
now on microfiche. It is time consuming and expensive to
comply with requests. The system would create a computer
file at the same time records are put on microfiche.
Number 916
UNIVERSITY OF ALASKA
Representative J. Davies asked if the statewide database
could be maintained for $400 thousand dollars.
KAREN CRANE, DIRECTOR, DIVISION OF LIBRARIES, ARCHIVES AND
MUSEUMS noted that there is a request in the capital budget
to give access to full texts through a statewide database.
She discussed the request. The item was included in the
university regent's request and is ranked high on the list.
Representative J. Davies spoke in support of the request and
noted that it would only cost .66 cents a person.
Representative Phillips agreed and emphasized that it is a
good value for the cost.
Number 1203
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES reviewed the
department's capital budget request.
Valdez - Harborview Development Center 150,000
Mr. Parkan noted that a firewall is needed to separate the
unused portion from that used by the city of Valdez. This
would reduce utility costs. He maintained that it would be a
cheaper way to operate.
Representative Phillips questioned if the unused portion
could be mothballed. Mr. Parkan affirmed and added that
there would be a minimal cost in maintaining the mothballed
portion. He did not know of any proposals for purchase.
Number 1599
Representative Phillips stressed that the state should
encourage the transfer of the building.
Representative J. Davies asked what the maintenance costs
would be for the mothballed portion. Mr. Parkan explained
that it would cost between $10 and $15 thousand dollars for
the parking lot and miscellaneous costs.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITATES
clarified that the city would take over the payment of the
utilities for their side. The state would not pay on the
non-mothballed portion. The city would pay $60 - $70
thousand dollars for utilities. If the city took over the
rest of the building they would have to pay an additional
$10 - $15 thousand dollars.
Number 1734
Harbor Programs 6,381,100
In response to a question by Representative Phillips, Ms.
Slagle clarified that the funds are not for the transfer of
harbors. Funds would be used for the state match to the
Corps of Engineer projects and are for harbor expansions.
She gave examples of harbor projects. She noted that there
are a number of cities, which would take over their harbors
if there were a mechanism available for transfer.
Representative G. Davis asked if there was a match
requirement for the Seward project. Ms. Slagle noted that
the state would provide 38% of the non-federal cost share.
Representative G. Davis questioned if the Corps of Engineers
pays dredging costs. Ms. Slagle did not think that dredging
projects were included.
Representative Austerman clarified that Seward's harbor was
already transferred.
Number 1999
State Equipment Fleet Replacement 11,800,000
Co-Chair Mulder questioned the fund source. Ms. Slagle
explained that funding would be interagency receipts from
the Highway Working Capital Fund. The Fund receives payments
for replacement costs from the agencies that use the
vehicles.
Representative G. Davis noted that the funds are included in
the agencies' operating budgets. Mr. Parkan agreed and
pointed out that each vehicle has a schedule.
Airport Improvement Program 155,823,000
Mr. Parkan observed that Congress recently passed the Air 21
program, which reauthorize the AIP program. This doubled
federal funds for airport projects. The state would receive
an additional $125 - $135 million dollars. In FY00 the state
received $79 million dollars. There is a 7 percent state
match requirement to receive 93% federal funding.
Ms. Slagle observed that a revised amendment indicates that
the International Airport Revenue Fund is $1.979,400
dollars.
Number 2209
Mr. Parkan reviewed the breakdown of federal funding. There
has been a $500 thousand dollar minimum for small airports.
This was doubled to $1 million dollars. Cargo entitlements
at international airports were increased threefold. The
Alaska supplement was increased to $10.6 - $26 million
dollars. There have been other increases. The department
expects to get $25 - $30 million in discretionary dollars.
Anchorage International Airfield Reconstruction 2,500,000
Number 2275
Mr. Parkan reviewed the request and explained that it would
fund general repairs.
North/South Parallel Taxiway 10,000,000
Mr. Parkan discussed the request. He observed that the
increased federal funds would allow the project to be
completed in one phase.
Representative Phillips questioned how much of the money
covers shortfalls on the Anchorage International terminal
project. Mr. Parkan assured her that none of the projects
are related to the Anchorage Terminal project.
(TAPE CHANGE, HFC 00 - 95, SIDE 2)
Number 001
Representative J. Davies referred to passenger facility
charges.
Mr. Parkan noted that the state is in the process of
submitting an amended application for passenger facility
charges. He anticipated that the charge would be in affect
the first of the year.
Representative J. Davies spoke in support.
Co-Chair Therriault questioned if the exemption sunset. Mr.
Parkan explained that it would continue until it was
reauthorized. He estimated that it would be reauthorized in
five years. It is an optional exemption.
Number 150
Mr. Parkan added that exclusion was added to the
reauthorization bill. Aircraft with less than 60 passengers
would not have to pay under the exemption.
The only routes that would collect the charge are between
Fairbanks, Anchorage and Juneau; or these cities and out of
state airports.
Number 281
Mr. Parkan observed that the exclusion was not requested by
the state of Alaska. It is federally mandated. Mr. Parkan
added that there is also a population cap on the exclusion
of 10,000.
Number 400
Co-Chair Mulder referred to the breakdown between airports
and roads. He questioned if there is a federal requirement
to keep airport and road funds separate. Mr. Parkan
responded that they are two different programs and the funds
are kept separated. Each program is dealt with differently.
The state proposes airport projects to the FAA and the FAA
selects projects for approval. The state selects its highway
projects and the federal government accepts them.
Number 505
Co-Chair Therriault questioned ADA compliance problems in
the Anchorage airport. Mr. Parkan responded that ADA
projects include: doors, restroom access, and carts. Ms.
Slagle observed that the North terminal has a problem.
Representative Phillips stressed that duplication needs to
be watched. Co-Chair Mulder observed that the timeline on
ADA compliance has been extended.
Number 633
Mr. Parkan understood that the state of Alaska is required
to comply and did not know of a specific timeline for
compliance. Representative J. Davies stressed that if the
state moves fast enough that it won't get sued. Co-Chair
Mulder thought that there was a deadline for the end of the
year.
Co-Chair Therriault referred to the North/South Parallel
Taxiway.
Number 745
Mr. Parkan explained that the original component was to
construct half of the taxiway. The addition funds would
complete the project. It runs the full length of the runway.
Representative Phillips pointed out that building a taxiway
costs almost the same as building a new school. Co-Chair
Therriault noted that the majority of funding would be
federal.
Number 800
Representative G. Davis noted that projects would provide
jobs. Mr. Parkan added that $1 million dollars in new
construction results in 8 full time jobs. Representative J.
Davies noted that additional maintenance would also add to
jobs. Representative G. Davis pointed out that every
airstrip that is paved reduces maintenance.
Number 932
Mr. Parkan pointed out that maintenance reductions due to
paving would be offset by the addition of lights when
runways are paved lights.
Representative Foster stressed that local hire has been a
frustration in rural areas. He observed that there are no
union workers in the villages. Mr. Parkan acknowledged the
problems. He noted that the Fairbanks union is working on an
arrangement to train villagers.
Number 1125
Anchorage Deicing Assessment Design 500,000
Representative Phillips questioned if collection and
recycling of deicing is being reviewed. Mr. Parkan noted
that it is a huge issue and that here is a Deicing Task
Force.
Anchorage: Areawide Trails Rehabilitation 95,000,000
Representative Foster observed that 10 percent of federal
highway funding goes to enhancements. He observed that the
projects are mostly urban projects. He asked if funds could
be used for boardwalks in villages. Mr. Parkan affirmed that
boardwalks would qualify. Co-Chair Therriault questioned the
category of funding for boardwalks. Mr. Parkan responded
that the funds could be through CPI funds or enhancements.
Number 1299
In response to a question by Representative Austerman, Mr.
Parkan noted that paths along highways could be considered
for enhancement funding.
Number 1378
Implementation of Intelligent Transportation System
Strategic Deployment Plan 7,500,000
In response to a question by Co-Chair Mulder, Ms. Slagle
observed that the federal government provides money, which
is earmarked for intelligent transportation systems. She
noted that $4 million dollars have already been made
available and an additional $3.5 dollars would be available
in the next year. They allow sensor mechanisms to monitor
weather related roadway conditions. The Thompson Pass area
is a difficult area for ice conditions.
Mr. Parkan added that T21 put an emphasis on this issue and
that there is money that can only be spent on intelligent
transportation systems.
Number 1510
Representative Foster observed that the old emphasis was new
road miles. He questioned if there is more latitude to do
maintenance. Mr. Parkan affirmed. Summer maintenance has
been shifted to federal projects. He stressed that the state
has tapped as much federal funding for maintenance as
possible.
Representative Phillips questioned if the intelligent
systems request would include video cams at the new airport.
Ms. Slagle responded that it would not include video cams.
Ms. Slagle added that the request includes weigh station
technology to allow trucks to be weighed without stopping.
Number 1632
Ms. Slagle pointed out that the intent is to find
efficiencies.
Number 1687
Marine Highway Projects $40,872,000
In response to a question by Co-Chair Mulder, Mr. Parkan
clarified that the state match is between 10 and 20 percent.
Co-Chair Mulder observed that other roads only require a 9
percent match. Bridges and ferryboat discretionary funds
also require a 20 percent match.
Representative Williams pointed out that there is an
additional $140 million federal dollars, which would be
received through the work of Senator Stevens. Mr. Parkan
noted that most of the 20 percent items would not have
received funding prior to T21.
Number 1806
Richardson Highway: Badger Road Interchange 4,000,000
Co-Chair Therriault asked for more information on the
request. Mr. Parkan explained that the request reflects
increase costs on the project. He thought that the request
would cover all of the design and construction dollars.
Co-Chair Therriault questioned if there was funding for
North Pole off ramps. Mr. Parkan could not respond.
Number 1913
Surface Transportation Preconstruction 57,400,000
In response to a question by Co-Chair Mulder, Mr. Parkan
noted that the request would cover right-of-way purchases to
get projects ready for construction. The request is
consistent with previous years.
Co-Chair Therriault noted that the weigh scales would have
to be moved on the Badger Road 6-mile interchange. Mr.
Parkan did not know if there was a new project involved in
the request.
Watchable Wildlife Signs 240,000
Representative Phillips questioned if the state was required
to put up watchable wildlife signs. Mr. Parkan stated that
he would check to see if the funds could only be spent on
this category.
Number 2013
MaCarthy Road 510,000
In response to a question by Co-Chair Therriault, Mr. Parkan
explained that the project would go to the river just before
McCarthy.
There were no further questions.
ADJOURNMENT
The meeting was adjourned at 9:35 a.m.
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