Legislature(2001 - 2002)
01/17/2001 03:42 PM 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
January 17, 2001
3:42 PM
TAPE HFC 01 - 13, Side A
TAPE HFC 01 - 13, Side B
CALL TO ORDER
Senator Donley called the House Finance Committee meeting to
order at 3:42 PM.
HOUSE FINANCE COMMITTEE MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
HOUSE FINANCE COMMITTEE MEMBERS ABSENT
None
SENATE FINANCE COMMITTEE MEMBERS PRESENT
Senator Donley, Co-Chair
Senator Kelly , Co-Chair
Senator Ward, Vice-Chair
Senator Leman
Senator Wilken
Senator Austerman
Senator Hoffman
Senator Olson
SENATE FINANCE COMMITTEE MEMBERS ABSENT
Senator Green
ALSO PRESENT
Representative Gretchen Guess; Representative Mary Kaspner;
Representative Reggie Joule; Jeff Staser, Federal Co-Chair,
Denali Commission; Krag Johnsen, Staff Designee to the
Denali Commission, Legislative Budget and Audit Committee;
Henry Springer, Commissioner, Denali Commission;
GENERAL SUBJECT(S):
Joint with Senate Finance Committee in HFC room
Presentation: Denali Commission: current and future
expenditures
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 22nd Legislative Session, contact 465-
2156. After the 22nd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 00 - 13
SIDE A
000 Krag Johnsen, Staff Introduced federal and state staff
Designee to the working with the Commission.
Denali Commission,
Legislative Budget
and Audit Committee
148 JEFF STASER, FEDERAL Noted that the Denali Commission is a
CO-CHAIR, DENALI federal agency established by federal
COMMISSION law. Created in March 1999. Reviewed
membership of the Commission.
260 Mr. Staser The goal is to promote rural
infrastructure & utility Development and
provide training and economic development
in rural communities.
360 Mr. Staser Noted that there are many problems in
federal laws that need to be addressed.
388 Mr. Staser The commissioners created themes to focus
the efforts. They are energy, health
delivery, telecommunications, economic
development, training (10 percent) and
life cycle operations and maintenance. He
reviewed some of the work in these areas.
485 Mr. Staser The commission uses established priority
systems when possible and seeks gaps and
consensuses. Work is submitted to
Congress.
550 Mr. Staser Stressed the importance of
accountability.
613 Mr. Johnsen Provided an overview of appropriations
and expenditures. There received $20
million dollars in FY 99; $15 million of
this was dedicated to the bulk fuel and
rural power system upgrades.
667 Mr. Johnsen Continued details of expenditures.
680 Mr. Johnsen Reviewed FY00 appropriations and
expenditures: $14 million Alaska Energy
Authority, $2 million Department of Labor
and Workforce Development for training,
$5 million southeast electrical intertie,
$824 thousand to the Alaska Growth
Capital, and $1 million health clinic
construction.
781 Mr. Staser Discussed the First Alaskans Foundation.
The Denali Commission does not set the
fund it only manages the Fund. It was one
time appropriation.
894 Mr. Johnsen Discussed Denali Commission partners:
Alaska Industrial Development and Export
Authority (AIDEA), ANTHC, Department of
Community and Economic Development,
Department of Labor and Workforce
Development, USDA, Federal Executive
Association and MOU.
978 Mr. Johnsen Gave further information on the Alaska
Growth Capital group. It works as a state
chartered bank that can help small
businesses. They help with project
viability.
1062 Representative Asked if funds are purely federal. Mr.
Hudson Staser responded that funds are
commingled. Mr. Johnsen noted that
project funding is delineated in the
handout.
1115 Mr. Staser Discussed the Federal Executive
Association. He reviewed projects around
the state.
1186 Mr. Staser Noted that the Denali Commission has an
appropriation of $65 million for FY01. He
clarified that they Commission is not
involved in cleanup.
1309 Senator Olson Asked how priorities are set.
1320 Mr. Staser Discussed prioritizing. The Denali
Commission tries not to get into policy
debate. They funded feasibility projects
for fuel tanks. The preference is for
local governments to take the lead.
1468 Mr. Staser Stressed that projects most be feasible.
He emphasized the need for economies of
scale. There should be a community based
plan that can be locally supported.
1545 Mr. Staser Discussed management initiatives. Looking
at a uniform database supported by the
state. A new form to standardize
applications has been implemented.
Funding forums are taken to communities.
There have been approximately 7 around
the state. Trying to avoid hunting the
grant.
1673 Senator Hoffman Referred to bulk fuel efforts. He
questioned how communities could
participate if they did not know of the
Denali Commission.
1709 Mr. Staser All but 5 communities have been visited
by the state. There will be an up to date
database for all communities. There is no
deadline. The size of community is not a
criterion. Level of unemployment is a
criterion. He stress accountability and
sustainability.
1897 Representative John Asked if there is a strategy for
Davies telecommunications.
1911 Mr. Staser Stated that they are trying not to get
ahead of the telecommunication
commission.
2000 Mr. Staser Showed a video by the Environmental
Protection Agency that lasted
approximately 6 minutes.
2219 Mr. Staser He noted that 90 percent of the money
goes to rail belt communities. Better
paying jobs go outside of the community.
This is why the emphasis on training was
added. Increased local payroll is a goal.
2289 Mr. Staser Noted that the backlog of $200 million
dollars is growing as assessments are
completed. Interest of $10 million
dollars a year is coming for oil spill
prevention. The funding stream on the
interest is indefinite.
TAPE HFC 01 - 13,
Side B
022 Co-Chair Mulder Noted that there is $18 million dollars
for the Alaska Village Electric
Cooperative.
117 Senator Hoffman Noted that communities that do not have
internet connections are falling further
behind in job skills.
180 Mr. Staser Observed that the Denali Commission is
trying to ascertain that power is
available to allow access to the
internet.
328 Senator Ward Referred to the number of communities
surveyed. He questioned if total fuel
consumption has been reviewed and the
possibility of buying as a unit.
384 Mr. Staser Responded that the Denali Commission
cannot make that decision. In the state
of Alaska, AIDEA can look at what works
for bulk fuel management. The intent is
to help the existing structure. The
Denali Commission is not involved in
making policy.
621 Representative Does the Backlog overlap the state
Lancaster deferred maintenance costs? Mr. Johnsen
clarified that the backlog identified by
the Denali Commission is the bulk fuel
work, which would be owned by local
communities or private entities.
751 ADJOURNMENT
The meeting was adjourned at 4:45 p.m.
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