Legislature(1997 - 1998)
05/09/1997 03:10 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 9, 1997
3:10 P.M.
TAPE HFC 97-133, Side 1, #000 - end.
TAPE HFC 97-133, Side 2, #000 - end.
TAPE HFC 97-134, Side 1, #000 - end.
TAPE HFC 97-134, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Hanley called the House Finance Committee meeting to order
at 3:10 p.m.
PRESENT
Co-Chair Therriault Representative Kohring
Representative Davies Representative Martin
Representative Davis Representative Moses
Representative Foster Representative Mulder
Representative Grussendorf
Representative Kelly
Co-Chair Hanley was absent from the meeting.
ALSO PRESENT
Representative Scott Ogan; Mark Boyer, Commissioner, Department of
Administration; Dugan Petty, Director, Division of General
Services, Department of Administration; Sharon Barton, Director,
Division of Administrative Services, Department of Administration;
Annalee McConnell, Director, Office of Management and Budget,
Office of the Governor; John Bitney, Alaska Housing Finance
Corporation; Mitchell Gravo, Lobbyist, Frontier Building; Bob
Bilden, Legislative Audit Division; Keith Gerken, Architect,
Division of General Services, Department of Administration; Nancy
Slagle, Director, Division of Administrative Services, Department
of Transportation and Public Facilities; Diane Kaplan, Alaska
Native Heritage Center; Guy Bell, Director, Division of
Administrative Services, Department of Commerce and Economic
Development.
SUMMARY
SB 107 "An Act making and amending capital and other
appropriations and to capitalize funds; and providing for
an effective date."
SB 107 was HELD in Committee for further consideration.
SB 178 "An Act giving notice of and approving a lease-purchase
agreement by the Department of Administration for an
office building in Anchorage; relating to the financing
of the lease-purchase agreement; and providing for an
effective date."
CSSB 178 (FIN) am was reported out of Committee with a
"do pass" recommendation and with three fiscal impact
notes, one by the Department of Revenue and two by the
Department of Administration, all dated 5/2/97.
SENATE BILL NO. 178
"An Act giving notice of and approving a lease-purchase
agreement by the Department of Administration for an office
building in Anchorage; relating to the financing of the
lease-purchase agreement; and providing for an effective
date."
DUGAN PETTY, DIRECTOR, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION reviewed changes to CSSB 178
(FIN)am. He noted that CSSB 178 (FIN)am:
* Does not have certificates of participation involved in
the financing of the Bank of America Building;
* Requires the Alaska Housing Finance Corporation (AHFC) to
purchase the building;
* Requires that the building be leased to the state of
Alaska for offices;
* Establishes a maximum purchase price of $35,700,700
million dollars, which includes costs associated with
lease buy-outs;
* Incorporates a municipal property tax amendment; and
* Includes intent language, requiring sufficient public
parking be available.
Mr. Petty compared the Bank of America Center purchase and the
lease proposal from the Frontier Building Limited Partnership. The
lease proposal was presented by TRF Pacific for the Frontier
Building Limited Partnership. He noted that the proposal by TRF
Pacific would provide lease space at $1.92 a square foot. He
observed that leasing would not be accompanied by a net present
value savings.
MARK BOYER, COMMISSIONER, DEPARTMENT OF ADMINISTRATION stated that
the Governor and Administration support the acquisition of the Bank
of America building. He noted that as long as the purchase occurs
within the dividend agreement that there will be no impact to
AHFC's bond rating.
Representative Kohring expressed concern that the legislative use
of AHFC funds may be beyond the dividend limit.
Commissioner Boyer stressed that broader discussion would be
welcomed regarding the legislation's impact on the AHFC dividend
agreement.
BOB BILDEN, DIVISION OF LEGISLATIVE AUDIT stated that the
acquisition of the Bank of America building is in the best interest
of the state of Alaska. He maintained that assumptions use by the
Department of Administration are valid and relevant. He observed
that the assumptions are based on the worst case scenario.
Co-Chair Therriault referred to a letter from the Division of
Legislative Audit, dated 5/8/97 (copy on file).
Mr. Bilden stated that it appears that the appropriation from AHFC
would be within the dividend limits.
Co-Chair Therriault pointed out that according to the letter from
the Legislative Auditor, that the "amendment to a cash acquisition
only further enhances the deal."
Representative Kohring expressed concern with the legislation's
impact on AHFC's bond rating.
Representative Grussendorf referred to a memorandum from the Office
of Management and Budget, dated 5/9/97 (copy on file). He observed
that the Administration estimates that proposed expenditures from
AHFC dividends are $5.7 million dollars over the dividend
agreement. He added that the Administration's letter indicated
that they do not support a plan for AHFC to purchase the building
and rent it to the state for $1 dollar. He noted that the
Administration's preference is for the state to purchase the
building out-right.
Commissioner Boyer stated that the additional requirement for the
purchase of the Bank of America building would exceed the dividend
amount. He concluded that the legislation could adversely affect
AHFC's bond rating. He questioned if the legislative intent is to
place a smaller amount of AHFC receipts into the general fund then
is expressed in the operating and capital budgets. He noted that
the Administration has made commitments to rating agencies and the
world investment community to not take more than $103 million
dollars in FY 98.
MITCH GRAVO, LOBBYIST, FRONTIER BUILDING asserted that the
legislation would blow a $37.5 million dollar hole into AHFC's bond
and credit rating or that the state would have to transfer general
fund dollars into the capital or operating budgets. He maintained
that the legislation would disrupt the Anchorage rental market. He
asserted that Anchorage property tax payers will have to pay $500
thousand dollars more as a result of the purchase.
Mr. Gravo provided the Committee with a firm, noncontingent offer
for a long term lease (copy on file). He maintained that the
proposal would save the state $514 thousand dollars in lease
payments in the next year. The offer is open until June 15, 1997.
Co-Chair Therriault summarized that, according to the Legislative
Auditor, the question at hand is do we stop leasing now and buy a
building or do we continue to lease for another 25 years and then
buy a building. He added that the Auditor's objections to the
proposal from the Frontier building would still be applicable.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR noted that the AHFC dividend available for
expenditure is $133.2 million dollars. She noted that draft
appropriations total $77.6 million dollars in the front section of
the operating bill and $61.2 million dollars in various capital and
operating budget items. She spoke in support of the purchase of
the Bank of America building. She cautioned that AHFC dividend
expenditures not exceed $133.2 million dollars. She observed that
there are a number of projects that the legislature proposed to
fund with AHFC corporate receipts that the Administration has
proposed be funded with Alaska Industrial Development and Export
Authority (AIDEA) dividends. She stated that an additional $25
million dollars will be available to the general fund from the
settlement of a pipeline tariff case. She maintained that the draw
on the AHFC dividend can be reduced. She summarized that there
would have to be an adjustment somewhere. She added that oil
prices are higher than anticipated. She concluded that the
purchase of the Bank of America building can be accomplished.
Representative Martin observed that the purchase would save $3 - $4
million general fund dollars annually.
Ms. McConnell spoke in support of the purchase but reiterated
concerns that AHFC dividends remain within the $133 million dollar
limit.
Representative Grussendorf asked for a comparison between an out-
right purchase and a lease purchase. McConnell stated that there
would be some advantage to an out-right purchase.
KEITH GERKEN, ARCHITECT, DIVISION OF GENERAL SERVICES, DEPARTMENT
OF ADMINISTRATION pointed out that HB 236 was reviewed as a lease
purchase. When compared to the cost of continued leasing over the
next 50 years, the cash purchase would save $219 million dollars
and a lease purchase would save $154 million dollars. A 40 year
net present value in savings with a lease-purchase would be $36.6
million dollars and a cash purchase would be $71.5 million dollars.
With the assumption of higher rental rates the net present value of
40 years with financing is $54 million dollars and $89 million
dollars with cash.
Representative Kohring questioned if a bond could be floated
through AHFC for the purchase.
JOHN BITNEY, ALASKA HOUSING FINANCE CORPORATION summarized that the
legislative intent directs AHFC to institute a cash purchase. He
stated that there is no allowance in the legislation to cover the
debt service cost.
(Tape Change, HFC 97-133, Side 2)
Mr. Bitney assured the Committee that AHFC would take any action
needed to protect the Corporation's credit rating.
Mr. Gerken noted that Mr. Fauske indicated that there will be
sufficient time for negotiation.
Representative Davies asked if it would be possible for AHFC to
purchase the building and transfer ownership to the state of
Alaska.
Mr. Bitney noted that ownership of the building would make a
difference in the financing structure. If the state retains
ownership, a debt financing arrangement could be issued.
Representative Martin observed that AHFC has the flexibility to
restructure the purchase at a later date.
Representative Martin MOVED to report CSSB 178 (FIN)am out of
Committee with individual recommendations and the accompanying
fiscal notes. Representative Foster OBJECTED for purposes of
discussion. Representative Foster observed that there is limited
parking. He expressed reservations for the purchase.
Representative Davies responded that the state will save money from
the purchase. Representative Martin pointed out that there will be
a $3 - $4 million dollar annual lease cost savings.
Co-Chair Therriault stressed that the Division of Legislative Audit
has reviewed the calculations used by the Department of
Administration.
Representative Kohring suggested that the legislature be moved to
the building in order to justify the purchase. He stressed that
this could be the initiating point, in which the capitol could be
moved. He expressed concern that AHFC's bond rating could be
jeopardized.
Representative Davies pointed out that there has been no suggestion
that the purchase was motivated by an intent to move the
legislature. He stressed that the state is purchasing a large
block of space for public employees that are now in spaces that are
quite expensive. He noted that between $1 and $5 million dollars
will be saved annually by the purchase.
A roll call vote was taken on the MOTION to MOVE CSSB 178 (FIN)am
from Committee.
IN FAVOR: Davies, Grussendorf, Moses, Davis, Kelly, Martin, Mulder,
Therriault, Hanley
OPPOSED: Foster, Kohring
The MOTION PASSED (9-2).
CSSB 178 (FIN) am was reported out of Committee with a "do pass"
recommendation and with three fiscal impact notes, one by the
Department of Revenue and two by the Department of Administration,
all dated 5/2/97.
Co-Chair Therriault stated that he supported the legislation based
on the estimated savings to the state.
SENATE BILL NO. 107
"An Act making and amending capital and other appropriations
and to capitalize funds; and providing for an effective date."
Co-Chair Hanley provided members with Amendment 1 (copy on file).
He explained that the amendment represents changes to the Municipal
Capital Matching Grants program. He emphasized that the amendments
have been requested by the communities receiving the projects. He
noted that his staff reviewed the individual requests.
Co-Chair Hanley MOVED to adopt Amendment 1. There being NO
OBJECTION, it was so ordered.
Representative Mulder MOVED to adopt Amendment 2 (copy on file).
Co-Chair Hanley noted that Amendment 2 is a reappropriation of
discretionary money to District 20.
Representative Martin stated that the appropriation for the Chester
Creek project was in excess of the amount needed. He spoke in
support of the amendment.
Representative Davies expressed concern with the appropriation.
Representative Mulder noted that the Municipality of Anchorage does
not object to the reappropriation. There being NO OBJECTION,
Amendment 2 was so ordered.
Co-Chair Hanley MOVED to adopt Amendment 3 (copy on file). He
explained that the amendment would add "and pedestrian plaza" to a
previous appropriation. There being NO OBJECTION, it was so
ordered.
Representative Kohring MOVED to adopt Amendment 4 (copy on file).
He explained that the amendment would retain the interest on $9
million dollars appropriated for development of coal deposits in
the Matanuska-Susitna Valley. Representative Grussendorf spoke in
support of the amendment. There being NO OBJECTION, it was so
ordered.
Representative Foster MOVED to adopt Amendment 5 (copy on file).
Co-Chair Hanley explained that the amendment is a technical
language change for a municipal matching grant. There being NO
OBJECTION, it was so ordered.
Co-Chair Hanley MOVED to adopt Amendment 6 (copy on file). He
explained that the amendment would delete section 46, added by the
Senate. Section 46 would repeal previous appropriations. He
explained that the language would capture projects that have not
been completed. He pointed out the Department of Transportation
and Public Facilities has a repealer for a number of capital
projects. There being NO OBJECTION, it was so ordered.
Representative Martin MOVED to adopt Amendment 7 (copy on file).
He explained that the amendment would decrease the authorization
for the Anchorage Airport project. He stated that the
authorization is not necessary due to a lapse in FY 97 funding.
In response to a question by Representative Davies, Co-Chair Hanley
explained that the amendment pertains to the development of the C
concourse at the Anchorage Airport. He observed that debate is
occurring in regards to the connection of adjacent offices.
Representative Mulder observed that the original C concourse
relocation project was approved by the airline carriers in 1996.
Subsequently, The Airline Technical Subcommittee recommended that
the project not go forward by a vote of 15 of 26. It takes 18 out
of 26 "no" votes for a project to be dismissed.
Representative Davies expressed concern that the decision should be
made by the operators.
A roll call vote was taken on the MOTION to adopt Amendment 7.
IN FAVOR: Davis, Foster, Grussendorf, Kelly, Kohring, Martin,
Mulder, Therriault, Hanley
OPPOSED: Davies
Representative Moses was absent from the vote.
The MOTION PASSED (9-1).
Representative Foster MOVED to adopt Amendment 8 (copy on file).
He explained that the amendment is a reappropriation of funds into
the same district. There being NO OBJECTION, it was so ordered.
Representative Martin MOVED to adopt Amendment 9 (copy on file).
Representative Mulder OBJECTED. Amendment 9 would insert a RFP
grant of $600 thousand dollars, to be funded by AHFC stripper well
receipts for home energy conservation and weatherization programs
for energy efficient home building education and technical
assistance. The amendment would also delete lines 28 - 37 on page
45. Lines 28 0 37 on page 45 contain a $300 thousand dollar grant
to the Alaska Craftsman Home Program and a $300 thousand dollar
grant to Energy Rate Homes of Alaska.
Representative Mulder MOVED to AMEND Amendment 9 by deleting the
deletion of lines 28 - 37 on page 45. Representative Martin
OBJECTED. He stressed that Amendment 9 follows the original intent
for use of stripper well funding, without the amendment to the
amendment. He maintained that the amendment to the amendment would
take funding from AHFC. He emphasized that Amendment 9 would allow
flexibility for AHFC to maximize dollars through competition.
Representative Mulder pointed out that the Alaska Craftsman Home
Program and Energy Rated Homes of Alaska have been in business for
many years.
(Tape Change, HFC 97-134, Side 1)
Representative Martin spoke against the amendment to Amendment 9.
He asserted that the Alaska Craftsman Home Program and Energy Rated
Homes of Alaska are in trouble for improper use of past grants.
Co-Chair Hanley summarized that these groups received grants from
a competitive bid released by the Governor.
Mr. Bitney explained that there were two designated grants approved
by the Legislature in FY 97. One grant was to the Alaska Craftsman
Home Program. The other grant was awarded to Energy Rated Homes of
Alaska. Subsequent to the legislative session, the grants were
released through a competitive solicitation. The Alaska Craftsman
Home Program was awarded $300 thousand dollars through competitive
bid. The grant to Energy Rated Homes of Alaska was split into two
pieces; $155 was awarded to Energy Rated Homes of Alaska and $145
thousand dollars was awarded to Building Science Network. To date,
no funds have been awarded to Energy Rated Homes of Alaska as part
of the grant. The Alaska Craftsman Home Program has signed a grant
agreement and was advanced $45 thousand dollars. He explained that
subsequent billings are supplied to charge against the grant.
Co-Chair Therriault maintained that the passage of SB 55 would
allow the Governor flexibility to handle the grant. He asserted
that there will be funds for the Governor to go through a
competitive RFP if he feels that either of the designated grantees
has not followed through with their FY 97 agreement.
Mr. Bitney clarified that the Building Science Network is
proceeding with their grant and is expected to expend the full
amount of the grant. In response to a question by Co-Chair Hanley,
he explained that AHFC has not received a work plan from the Alaska
Craftsman Home Program. He noted that there were no classes on-
going through the winter.
Representative Mulder stressed that there were subsequent actions
that contributed to the delay of the bid. He asserted that the
work program would have been approved if there had not been delays.
Mr. Bitney noted that the grants were awarded on September 11,
1996. The work plan was signed before the end of the calendar
year.
Representative Mulder stated that the Alaska Home Craftsman Program
received authorization for a workshop schedule on May 5, 1997.
Mr. Bitney noted that AS 18.56.850 states that the Corporation is
required to have an alaska craftsman home program and an energy
rated homes of Alaska program. He noted that two non-profit
organizations have incorporated these names. He questioned if
these two non-profits are the program once they have received a
designated grant. He noted that there is an administrative
question of who is responsible and what the grantees should be
doing.
Representative Davies noted that classes were offered at $350
dollars per class. He stated that there are funds remaining from
the combination of the grants and the collection of fees from prior
years. He asked how much of this money is available to the Alaska
Craftsman Home Program.
Mr. Bitney stated that the class costs move than $400 hundred
dollars per person. He stated that the Alaska Craftsman Home
Program has accumulated a fairly substantial cash reserve through
these activities.
Representative Davies expressed concern that these surpluses have
not been reappropriated. He stated that these funds could be used
to offer more classes.
A roll call vote was taken on the MOTION to adopt the amendment to
Amendment 9.
IN FAVOR: Davis, Davies, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
OPPOSED: Martin, Grussendorf
Representative Moses was absent from the vote.
The MOTION PASSED (8-2).
There being NO OBJECTION, Amendment 9 was adopted.
Representative Foster MOVED to adopt Amendment 10 (copy on file).
He explained that the amendment would reappropriate money within
the same community. There being NO OBJECTION, it was so ordered.
Co-Chair Therriault MOVED to adopt Amendment 11 (copy on file). He
explained that the amendment would consolidate two Mental Health
Trust Authority projects for renovation and construction in
Fairbanks and Anchorage in order to increase flexibility. There
being NO OBJECTION, it was so ordered.
Co-Chair Hanley provided members with Amendment 12 (copy on file).
He noted that the amendment was divided into A, B, C, & D.
Co-Chair Hanley MOVED to adopt Amendment 12A. He explained that
the amendment would make some technical adjustments and extend some
lapse dates in the Department of Community and Regional Affairs.
There being NO OBJECTION, it was so ordered.
Co-Chair Hanley MOVED to adopt Amendment 12B. He noted that the
amendment would extend lapse dates on the Education Fund for the
Department of Military and Veterans Affairs. There being NO
OBJECTION, it was so ordered.
Co-Chair Hanley MOVED to adopt Amendment 12C. He explained that
the amendment would extend approximately $18 thousand dollars for
the Fetal Alcohol Syndrome/Fetal Alcohol Effect and Child Abuse
Task Force administrative and travel costs. There being NO
OBJECTION, it was so ordered.
Co-Chair Hanley did not move to adopt Amendment 12D. He noted that
the amendment would appropriate additional funding for the Public
Defender Agency.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR spoke in support of Amendment 12D. She
emphasized the agency's limited ability to control expenditures due
to increased caseloads. She observed that Amendment 12D would
allow an anticipated lapse within Tax Appeals to would allow and
increase without additional funding in the supplemental.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION clarified that the Public Defender
Agency is short $89 thousand dollars in FY 97.
Representative Davies MOVED to adopt Amendment 12D. A roll call
vote was taken on the MOTION.
IN FAVOR: Davies, Davis, Grussendorf, Moses
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder, Therriault,
Hanley
The MOTION FAILED (4-7).
Co-Chair Hanley MOVED to adopt Amendment 13 (copy on file). He
explained that the amendment would correctly identify the
Unincorporated Matching Grant Program in the Department of
Community and Regional Affairs. The legislation identifies this
program under the Department of Administration. There being NO
OBJECTION, it was so ordered.
Co-Chair Hanley MOVED to adopt Amendment 14 (copy on file). He
explained that the amendment changes language to comply with the
Alaska Drinking Water Fund. There being NO OBJECTION, it was so
ordered.
Co-Chair Hanley MOVED to adopt Amendment 15 (copy on file). He
explained that the amendment is a net zero cost. He stated that
the amendment would allow the Department of Transportation and
Public Facilities flexibility in the prior year match. There being
NO OBJECTION, it was so ordered.
NANCY SLAGLE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES explained that the Senate
identifies projects by programs. Within each of these areas there
is money for ineligible costs that may occur during a construction
project. She clarified that the distribution of funds was
unequitable. She stated that the intent is that all projects have
a comparable amount for ineligible costs.
There was no Amendment 16.
Representative Grussendorf MOVED to adopt Amendment 17 (copy on
file). Co-Chair Hanley OBJECTED. Amendment 17 would reappropriate
$440 thousand AHFC dollars to the Department of Public Safety for
deferred building maintenance at the Department of Public Safety
Training Academy. Representative Grussendorf emphasized that the
number of women in law enforcement has increased. He noted that,
due to the lack of accommodations, only 5 - 6 women can attend each
class.
Co-Chair Hanley stressed that the AHFC dividend has reached its
spending level.
A roll call vote was taken on the MOTION to adopt Amendment 17.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION PASSED (3-8).
Representative Grussendorf MOVED to adopt Amendment 18 (copy on
file). Amendment 18 would appropriate $250 thousand dollars from
the Commercial Fishing Revolving Loan Fund to the Department of
Community and Regional Affairs for the AYK Salmon Marketing
Program. He explained that the amendment would create economic
opportunities and increase employment in areas experiencing a glut
of chum salmon.
Co-Chair Hanley questioned how the appropriation would affect the
Commercial Fishing Revolving Loan Fund.
GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE
AND ECONOMIC DEVELOPMENT clarified that a surplus of $377 thousand
dollars is projected for the Commercial Fishing Revolving Loan
Fund. If the money is not expended it would be available for
appropriation in FY 99.
A roll call vote was taken on the MOTION.
IN FAVOR: Davies, Grussendorf, Therriault
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Moses, Mulder,
Hanley
The MOTION PASSED (3-8).
Representative Davies MOVED to adopt Amendment 19 (copy on file).
He explained that the amendment would appropriate $100 thousand
dollars to the Department of Administration for technology
improvement grants. He spoke in support of the amendment.
A roll call vote was taken on the MOTION.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
Representative Grussendorf MOVED to adopt Amendment 20 (copy on
file). Representative Mulder OBJECTED. Amendment 20 would
appropriate $350 thousand dollars to the Department of Commerce and
Economic Development for economic development matching grants.
Representative Grussendorf explained that grants would be used for
economic development and leveraging private and other funds for
economic activity. Grants are limited to $50 thousand dollars per
individual business. He clarified that Alaska Industrial
Development and Export Authority (AIDEA) funds would be leveraged.
Co-Chair Hanley noted that the AIDEA dividend has been used in the
operating budget.
A roll call vote was taken on the MOTION to adopt Amendment 20.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION PASSED (3-8).
Representative Davies MOVED to adopt Amendment 21 (copy on file).
Amendment 21 would add $966 thousand dollars to the Department of
Community and Regional Affairs for Rural Development Grants. The
funding source would be AIDEA dividends. He emphasized that the
program is highly competitive. There is a $50 thousand dollar
grant limit in FY 97. The Department of Community and Regional
Affairs funded 29 grants at $800 thousand dollars. These grants
leveraged $10 million additional dollars.
A roll call vote was taken on the MOTION to adopt Amendment 21.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION PASSED (3-8).
Representative Davies MOVED to adopt Amendment 22 (copy on file).
He explained that the amendment would allow for state participation
in the Alaska Native Commission Report Implementation Planning.
(Tape Change, HFC 97-134, Side 2)
Representative Davies spoke in support of Amendment 22. A roll
call vote was taken on the MOTION to adopt Amendment 22.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION PASSED (3-8).
Representative Davies MOVED to adopt Amendment 23 (copy on file).
Co-Chair Hanley OBJECTED. Representative Davies explained that the
amendment would appropriate $800 thousand dollars for a Native
Heritage Center in Anchorage. He noted support from the
municipality of Anchorage. He emphasized that 11 of 13 Native
corporation have contributed $1.7 million dollars. He spoke in
support of the amendment. The funding source would be through
AIDEA dividends.
Co-Chair Hanley acknowledged that the amendment would fund a good
project. He emphasized the need to close the fiscal gap.
Representative Grussendorf complained that projects that would aid
economic development and opportunity are not being funded. He
stressed that the Native Heritage Center would provide economic
potential.
DIANE KAPLAN, ALASKA NATIVE HERITAGE CENTER emphasized the level
and extent of participation by the Native community. She stressed
that private companies have committed over $1 million dollars. She
noted that the congressional delegation is working on a $2.8
million dollar federal appropriation. She asserted that it is
critical that the state show some level of support for the project
to obtain federal dollars. She observed that the Center would
enhance tourism in Anchorage.
Co-Chair Hanley asked if $200 or $300 thousand dollars would show
a state effort. Ms. Kaplan stated that an appropriation of that
level would send a message that the state supports the project.
Co-Chair Hanley noted that the state appropriated $400 - $500
thousand dollars for planning five years ago. Ms. Kaplan explained
that the funding was spent for site preparation. A city initiative
rejected the site for the Native Heritage Center.
In response to a question by Representative Martin, Ms. Kaplan
noted that AIDEA has not been involved in the project.
Ms. Kaplan noted the need for a Native cultural center.
A roll call vote was taken on the MOTION to adopt Amendment 23.
IN FAVOR: Davies, Grussendorf, Moses, Mulder
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,
Hanley
The MOTION FAILED (4-7).
Representative Davies MOVED to adopt Amendment 24. He explained
that the amendment would delete $50 thousand dollars for the
Circumpolar Agriculture Conference and add $50 thousand dollars for
Head Start repairs. A roll call vote was taken on the MOTION to
adopt Amendment 24.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
ADJOURNMENT
The meeting adjourned at 6:02 p.m.
**FIN130AM
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