Legislature(2001 - 2002)
04/26/2001 08:43 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 26, 2001
8:43 PM
TAPE HFC 01 - 99, Side A
TAPE HFC 01 - 99, Side B
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 8:43 PM.
MEMBERS PRESENT
Representative Bill Williams, Co-Chair
Representative Eldon Mulder, 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
MEMBERS ABSENT
None
ALSO PRESENT
Mike Tibbles, Staff, Representative; Peter Ecklund, Staff,
Representative Williams ; Kurt Parkan, Deputy Commissioner,
Department of Transportation and Public Facilities; Wendy
Redman, Vice President, Statewide Programs, University of
Alaska;
PRESENT VIA TELECONFERENCE
David Mork, Wrangell; Robert Prunella Manager, City of
Wrangell.
SUMMARY
HB 175 An Act making an appropriation to the Alaska
Industrial Development and Export Authority for
power projects; and providing for an effective
date.
CSHB 175 (FIN) was REPORTED out of Committee with
a "do pass" recommendation.
HB 191 An Act authorizing financing for certain public
transportation projects; giving notice of and
approving the entry into, and the issuance of
revenue obligations that provide participation in,
lease-financing agreements for those
transportation projects; and providing for an
effective date.
CSHB 191 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new fiscal
impact note by the Department of Revenue.
HB 234 An Act relating to the financing of construction
and renovation of certain public facilities; and
providing for an effective date.
HB 234 was heard and HELD in Committee for further
consideration.
HB 238 An Act relating to the power transmission intertie
fund of the Alaska Energy Authority.
CSHB 238 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new zero
fiscal note by the House Finance Committee for the
Department of Community and Economic Development.
HOUSE BILL NO. 175
An Act making an appropriation to the Alaska Industrial
Development and Export Authority for power projects;
and providing for an effective date.
HOUSE BILL NO. 238
An Act relating to the power transmission intertie fund
of the Alaska Energy Authority.
Members were provided with a proposed committee substitute,
work draft for HB 175 22-LS0705\T, Cramer 4/26/01.
Members were provided with proposed committee substitute for
HB 238, work draft 22-LS0868\F, 4/26/01 (copy on file).
MIKE TIBBLES, STAFF, REPRESENTATIVE WILLIAMS provided
information on HB 175 and HB 238. He noted that there were
previous discussions regarding where the funding source,
payment mechanism and repayment.
Vice-Chair Bunde MOVED to ADOPT proposed committee
substitute, work draft for HB 175, 22-LS0705\T, Cramer
4/26/01. There being NO OBJECTION, it was so ordered.
Mr. Tibbles explained that the proposed committee substitute
splits into two separate appropriations the amount that
would be a grant and the amount that would be a zero
interest loan. House Bill 238 creates a new fund. The
appropriation in HB 175, section 1 would be appropriated
into the new fund created in HB 238. The problem with the
previous version was that state of Alaska law required that
loans from the Alaska Industrial Development and Export
Authority (AIDEA) Revolving Loan Fund be repaid back into
the fund. Money would be appropriated to the new Power
Transmission Intertie Loan Fund and then be loaned on a zero
interest basis. The repayments would be made to the Railbelt
Energy Fund. Section 2 of HB 238 sets up the requirements
for the loan program. Subsection (e) states that the
authority shall deposit repayments of loans to the Railbelt
Energy Fund.
Representative John Davies questioned why the Railbelt
Energy Fund would be appropriate. Co-Chair Mulder explained
that when the natural gas pipeline is developed and there is
gas power there would be a need for an intertie throughout
South Central Alaska. The purpose is to assure that there
are enough funds in the Railbelt Energy Fund to intertie the
entire Railbelt.
Mr. Tibbles referred to page 2, line 14 of HB 175. He
explained that the appropriation of $2.5 million dollars to
the Matanuska Electric Association, which is contained as a
loan in section 1, should be included as a grant in section
2.
Representative Harris MOVED to ADOPT Amendment 1: change "a
no interest loan" on line 14, page 2 to "grant" and move
lines 14 - 18 into section 2. He explained that it is a
railbelt energy project and would qualify as a grant.
Representative John Davies pointed out that the funding
source is the Constitutional Budget Reserve.
Mr. Tibbles explained that the project is consistent with
the other grant projects.
Representative Croft thought that it would make more sense
to leave the project in section 1.
Representative Lancaster explained that funds were requested
from the Railbelt Energy Fund. The decision was made to take
the funds from the Constitutional Budget Reserve and put
into the Railbelt Energy Fund. Projects related to the
Railbelt would be grants; others would be made as zero
interest loans repaid to the Railbelt Energy Fund. He
stressed that all those in receipt of funds are in support.
Representative Hudson summarized that the funds from the
Constitutional Budget Reserve to Alaska Industrial
Development and Export Authority (AIDEA) would be
appropriated as loans or grants and never be paid back to
the CBR.
Representative Croft acknowledged that it is a loan from the
Constitutional Budget Reserve and pointed out that a debt is
being created in two places. He stressed the difficulty of
assessing which projects should be logically related to the
Railbelt.
Representative Lancaster explained that the grant to Copper
Valley for $500 thousand dollars is a pay back for a study
they completed for the Glennallen Intertie, which never came
to fruition. Grants to Southeast Communities are for
studies, not physical plants.
Representative Whitaker summarized that there is $101
million dollars for power transmission projects: $32.5
million dollars for non-Railbelt areas; and $60.8 million
dollars for the Railbelt. He stressed that there is $101
million dollars for power transmission projects: basic
infrastructure. Some of the money would go back into the
Railbelt Energy Fund for future use. He pointed out that 80
percent of the state's population is in the Railbelt, but
only 60 percent of the funds go to the Railbelt. He felt
that this discrepancy would be offset by building the fund
for future need. He stressed the importance of funding basic
infrastructure.
Representative Lancaster pointed out that section 3 also
funds the Power Cost Equalization FY02 shortfall.
Representative Lancaster observed that section 6 of HB 175
refers to HB 238, which is the mechanism that allows AIDEA
to receive the funding.
Representative Foster MOVED to report CSHB 175 (FIN) out of
Committee. There being NO OBJECTION, it was so ordered.
CSHB 175 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
Representative Lancaster MOVED to report CSHB 238 (FIN) out
of Committee with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
CSHB 238 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new zero fiscal note by the
House Finance Committee for the Department of Community and
Economic Development.
HOUSE BILL NO. 191
An Act authorizing financing for certain public
transportation projects; giving notice of and approving
the entry into, and the issuance of revenue obligations
that provide participation in, lease-financing
agreements for those transportation projects; and
providing for an effective date.
Co-Chair Mulder MOVED to ADOPT work draft 22LS766\J, dated
4/26/01. There being NO OBJECTION, it was so ordered.
PETER ECKLUND, STAFF, REPRESENTATIVE WILLIAMS provided
information on the proposed committee substitute. He noted
that projects were spread out through rural Alaska. A
project in Kodiak was added. Projects in Matsu were
exchanged at the same dollar amount.
Representative Davies noted that other versions of the bill
contained projects in rural Alaska relating to resurfacing
for dust control. Mr. Ecklund noted that there are projects
for area roads in rural Alaska, which would be for
blacktopping or dust controlled.
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES explained that projects
in the original legislation for dust control were part of a
$15 million dollar component. Some of these projects are
included on page 2. Items 7, 8, 9, 10 and 13 were part of
the original package of projects. Almost $10 million of the
$15 million dollar request was included.
Representative Croft clarified that no funding was included
for Barrow road resurfacing and only one of the requested
fast ferries were included. Ten million dollars for area
roads and trails in Fairbanks were not included. The
Soldotna East Redoubt Avenue rehabilitation was fully
funded.
Mr. Parkan noted that STIP projects were included.
Representative John Davies MOVED to ADOPT Amendment 1:
delete "Fairbanks: South Cushman Street Improvements" and
insert "Borough Wide Road and Trail" on page 2, line 28.
This is the Boroughs 5th priority. There being NO OBJECTION,
it was so ordered.
Representative Croft MOVED to ADOPT Amendment:
Delete:
Anchorage: Glenn Highway, Gambell Street to McCarrey
Street - $58,180;
Anchorage: Abbott Loop North Extension 15,000,000; and
Insert:
Barrow Road Resurfacing $10.0
Fast Ferries $35.0
Fairbanks North Star Borough Area Road and Trails $7
Rural
Village Road Surfacing $9.35
Chief Eddie Hoffman Highway $2.83
Co-Chair Williams OBJECTED. Representative Croft spoke in
support of the amendment. He noted that the Glenn Highway
extension is unpopular in his area. Removal of this project
would allow it to continue on a slower process. He observed
that there is significant objections to the Abbott Loop
North extension. He stressed that it would not be
appropriate to have the project on an expedited basis.
Co-Chair Mulder stressed that there is a 30 - 45 minute
bottleneck moving in and out of Anchorage during rush hour.
He maintained that the bottleneck will become a "Seattle
type" one hour to an hour and a half traffic jam. He
emphasized that the project would address future concerns
and noted that the expansion would not occur for another
decade.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies,
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Mulder, Williams
Representative Moses was absent from the vote.
The MOTION FAILED (2-8).
Representative Foster MOVED to report CSHB 191 (FIN) out of
Committee with the accompanying fiscal note. Vice-Chair
Bunde expressed concern with the East Anchorage expansion
project, but did not object to moving the bill from
Committee. There being NO OBJECTION, it was so ordered.
CSHB 191 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal impact note by
the Department of Revenue.
HOUSE BILL NO. 234
An Act relating to the financing of construction and
renovation of certain public facilities; and providing
for an effective date.
Vice-Chair Bunde MOVED to ADOPT proposed committee
substitute: work draft 22-LS0863\O, 4/25/01. There being NO
OBJECTION, it was so ordered.
DAVID MORK, WRANGELL testified via teleconference in support
of the legislation. He stressed the importance of funding
Wrangell's harbor project. The harbor is slowly
deteriorating. The cost of the project has increased
approximately 14 percent from the previous year.
ROBERT PRUNELLA MANAGER, CITY OF WRANGELL testified via
teleconference in support of inclusion of the Wrangell
harbor project.
TAPE HFC 01 - 99, Side B
Vice-Chair Bunde MOVED to ADOPT Amendment 1. He explained
that Amendment 1 would securitize the remaining 20 percent
of the tobacco settlement funds and provide a funding stream
for tobacco cessation activities. Existing non-profits would
utilize the funds. He acknowledged that the funding would
not be dedicated but emphasized that it would provide a
funding stream that the legislature can appropriate to non-
profits. The amount is estimated at $4 to $5 million dollars
with a decreasing annuity.
Vice-Chair Bunde explained that the projects for the
University of Alaska were not deleted; they were moved to
create a new structure.
Vice-Chair Bunde noted that there were technical
difficulties with the amendment and WITHDREW Amendment 1
with the intention of revising it for the next meeting.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment 2. Co-Chair
Mulder OBJECTED. Representative Croft explained that the
amendment would fund the first 4 projects on the school
construction list and the first 46 projects on the major
maintenance list. He observed that the projects are
primarily rural, but noted that there are projects from all
over the state. He stressed that there is a process that
should be followed. Many of the projects have been on the
list for a long time. He acknowledged the difficulty of
using harbor and university projects in order to fund the
construction and maintenance projects contained in Amendment
2. He spoke in support of finding other ways to support
ports and harbors.
Co-Chair Mulder spoke against the amendment. He acknowledged
the importance of building and maintaining schools but
observed that there are competing interests statewide. He
stressed that the issue isn't just what is politically
correct but what is politically possible. There are
statewide needs for capital construction dollars. He
maintained that the legislation is reasonable and
responsible. He felt that adoption of the amendment would
amount to winning the battle but losing the war.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies
OPPOSED: Whitaker, Foster, Harris, Hudson, Lancaster,
Mulder, Williams
Representatives Mulder and Bunde were absent.
Representative Hudson MOVED to ADOPT Amendment 3 on page 4,
line 15: delete $6 million dollars and insert $7 million
dollars for the Juneau Douglas High School. He stressed that
he agreed to give up $7.1 million dollars in harbor funding
in support for the city's highest priority.
Co-Chair Mulder MOVED to AMEND Amendment 3: delete $1
million dollars from the University Center and add $1
million dollars for the Juneau High School repair. There
being NO OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to ADOPT Amendment 4 as a technical
amendment: page 4, lines 24 and 25, change the language to
University of Alaska Anchorage University Center Acquisition
and Renovation.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA provided information on the amendment. She stated
that the language should state Anchorage Facility,
Acquisition and Renovation.
Co-Chair Mulder Amended Amendment 4 to Anchorage Facility,
Acquisition and Renovation. There being NO OBJECTION, it was
so ordered. There being NO OBJECTION, Amendment 4 was
adopted as amended.
Co-Chair Mulder MOVED to ADOPT Amendment 5 page 4, lines 24
and 25, change the language to University of Alaska
Anchorage Facility, Acquisition and Renovation. There being
NO OBJECTION, it was so ordered.
HB 234 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 9:58 p.m.
| Document Name | Date/Time | Subjects |
|---|