Legislature(2003 - 2004)
02/05/2003 01:29 PM House FIN
| Audio | Topic |
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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
February 05, 2003
1:29 P.M.
TAPE HFC 03 - 12, Side A
TAPE HFC 03 - 12, Side B
TAPE HFC 03 - 13, Side A
CALL TO ORDER
Co-Chair Harris called the House Finance Committee meeting
to order at 1:29 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Carl Moses
Representative Gary Stevens
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
Representative Eric Croft
Representative Reggie Joule
ALSO PRESENT
Diane Barrans, Executive Director, Postsecondary Education
Commission, Department of Education; Sheila King, Finance
Officer, Alaska Postsecondary Education, Department of
Education; Kevin Duffy, Acting Commissioner, Department of
Fish and Game; Kevin Brooks, Director, Division of
Administrative Services, Department of Fish and Game; Gordy
Williams, Legislative Liaison, Department of Fish and Game;
Michael Barton, Acting Commissioner, Department of
Transportation & Public Facilities; Michael Downing, Acting
Deputy Commissioner, Department of Transportation & Public
Facilities; Dennis Poshard, Legislative Liaison, Department
of Transportation and Public Facilities; Nancy Slagle,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities; Frank Richards,
Statewide Maintenance & Operations, Department of
Transportation & Public Facilities; Captain George Capacci,
General Manager, Marine Highway System, Department of
Transportation & Public Facilities.
PRESENT VIA TELECONFERENCE
Suzanne Tryck, Director, Alaska Regional Affairs, University
of Washington School of Medicine, WAMI Program.
GENERAL SUBJECT(S):
AGENCY OVERVIEWS:
ALASKA POSTSECONDARY EDUCATION COMMISSION
DEPARTMENT FISH & GAME
DEPARTMENT TRANSPORATION & PUBLIC FACILITIES
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 23rd Legislative Session, contact 465-
2156. After the 23rd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 03 - 12
SIDE A
000 Co-Chair Harris Convened the House Finance Committee
meeting at 1:40 P.M. A roll call was
taken.
ALASKA COMMISSION ON POSTSECONDARY
EDUCATION
133 DIANE BARRANS, Provided the Committee with a handout.
EXECUTIVE DIRECTOR, (Copy on File). She explained that the
POSTSECONDARY mission of the Commission and the Alaska
EDUCATION Student Loan Corporation, its financial
COMMISSION, partner, was to serve Alaska by
DEPARTMENT OF supporting the development of
EDUCATION economically viable, lifelong learners
and citizens by providing educational
financial assistance to postsecondary
students and authorizing the operations
of postsecondary institutions in Alaska.
318 Ms. Barrans Listed the ways in which those concerns
are addressed:
· providing education financial aid
· developing and delivering financial
aid planning tools to students and
supporters
· developing and implementing
strategies to increase access and
participation rates of Alaskans in
postsecondary education
· supporting and promoting Alaska
postsecondary education institutions
· providing for quality standards for
the education and training
· responding to emerging needs for
administering education financial
assistance and access programs and
services.
406 Ms. Barrans Added that the Commission offers
education access assistance by:
• originating and servicing
AlaskAdvantage loans, including
federal Title IV loans, Alaska
Supplemental Education loans,
Teacher Education loans, and Family
Education loans
• originating and servicing Memorial
Education loans
• disbursing state and federal grants to
low-income students
• coordinating the WICHE Student
Exchange and WWAMI graduate medical
education programs
547 Ms. Barrans Continued that the Commission protects
the education consumer by:
• monitoring school advertising and
contracts with students
• responding to public complaints
• assuring refunds and student teach-
outs when schools close
• gathering information on aid for
Alaskans and disseminating it so that
qualified residents are aware of
financial resources available for
postsecondary study
745 Ms. Barrans
Listed the organizational structure of
the Commission is a 14-member body in
accordance with AS 14.42.0 15. The
Executive Director reports to the
Commission. The Commission staff, totals
104 positions, which are organized in
five divisions, managed and supported by
a seven-member professional team: the
Information Services Director, Finance
Officer, Internal Auditor, Director of
Operations and Outreach, Compliance
Services Director, and Personnel Officer,
each reporting directly to the Executive
Director.
The Commission operations center is
located in Juneau and its marketing,
outreach, institutional compliance
services, and information technology unit
is located in Anchorage.
847 Ms. Barrans Stated that the Alaska Student Loan
Corporation has statutory
responsibilities and duties:
• Borrow money to carry out the
Corporation's purpose as the financing
source for the AlaskAdvantage Programs
and issue obligations as evidence of
borrowing.
• Invest money held by the Corporation.
• Enter into agreements with the ACPE to
administer the education loan fund.
920 Ms. Barrans Reiterated the highlights of the
organizational structure.
935 Ms. Barrans
Spoke to the AlaskAdvantage Loan Program.
She explained that after a period of
several years from the late 1980's
through the mid-1990, during which the
ASLC experienced significant improvements
to the loan program and the servicing of
the portfolio have resulted in a positive
financial impact for the Corporation.
Since 1995, when the first of many
program changes were made by the
Legislature, the Corporation has
continued to progress toward creating a
strong financial foundation for the loan
program:
• The programs cohort default rate has
dropped from 17.0% in 1996 to 4.6% in
2001.
• Program expenses including loan losses
have declined by $8.2 million from
FY1995 to FY2002.
• The cumulative fund deficit, which
peaked at $50 million in FY1997, has been
eliminated in FY2002.
1051 Ms. Barrans
Referenced Page 4 of the handout. She
spoke to the Corporation's key
operational objectives, which are
prioritized to allow the Corporation to
increase its financial strength and
effectiveness to fulfill the mission
effectively:
· Insure the ongoing fiscal stability
and credit standing of the
Corporation
· Continue to offer low-interest rates
to insure affordable education to
new customers
· Continue to identify ways to
translate financial stability into
cost savings for existing customers
· Provide an annual payment to the
State as a return of its initial
capital contribution of $306 million
The Corporation continues to implement
changes that will maintain and further
improve the health of the loan fund,
while at the same time insure that access
to education funding remains as broad as
possible.
1157 Ms. Barrans Referenced the Student Loan Operations.
The goals of that component are:
· to service the outstanding loan
portfolio, maximizing repayment to
the student loan fund and protecting
the financial integrity of ASLC;
· to identify and implement program
efficiencies through improved
management, processes, and
technology to insure the self
sustainability and marketability of
the AlaskAdvantagePrograms through
the 21st century;
· to provide low-cost financing for
the loan programs
· to disburse low-cost loans to
eligible Alaskans enabling them to
pursue postsecondary education and
training; and
· to serve and value our customers,
including students, parents,
policymakers, bondholders,
professional colleagues, and co-
workers.
1328 Ms. Barrans Within that Division are the:
· Information Support Services
· Finance
· Student Financial Aid
· Loan Servicing
· Customer Service
1420 Ms. Barrans
· Administrative Services
· Collections, and
· Outreach
1511 Ms. Barrans Highlighted the program administration.
This component contains the Executive
Office, the Personnel Office, and the
Compliance Services section. The goals
of the component are:
· to administer and provide policy
direction for programs administered
by ACPE and funded by ASLC,
identifying and achieving
efficiencies through improved
management, processes and
technology;
· to insure postsecondary programs and
institutions operating in the state,
with the exception of the University
of Alaska system, comply with AS
14.48 and 20 AAC 17, which relates
to regulation of institutions;
· to emphasize quality in education
and training programs to insure
value for Alaskans in their pursuit
of lifelong learning; and
· to provide Alaskans with information
about the educational opportunities
available in Alaska and the
financial aid programs available to
assist in accessing those
opportunities.
1541 Ms. Barrans
Referenced Page 8, the Western Interstate
Commission on Higher Education (WICHE)
Student Exchange Program. The goal of the
component is to provide undergraduate and
graduate educational access and
information to Alaska students studying
or wishing to study in fields for which
there are no programs operating in Alaska
or which are there are no programs
operating in Alaska or which are offered
to residents of member states in order to
maximize the benefits of regional
educational resources.
The component administers various WICHE
programs in Alaska:
· The Western Undergraduate Exchange
(WUE);
· The Professional Student Exchange
Program (PSEP); and
· The Western Regional Graduate
Program (WRGP).
1750 Representative Asked if the State was subsidizing the
Stoltze training of lawyers.
1809 Ms. Barrans Advised that at one time, the
professional student exchange program did
support the study of law, however, that
did end in 1988.
1820 Ms. Barrans Explained that the structure in which
Alaska participates in that program is
basically a loan program. Students that
participate in that program, incur as a
loan debt, the value of the support fee
paid on their behalf.
1845 Ms. Barrans Total loan volume for FY02-FY03 is just
over $125 thousand dollars.
1941 Ms. Barrans Noted that Suzanne Tryck, Director,
Alaska Regional Affairs, University of
Washington School of Medicine, WWAMI
Program, was on line and available for
questions regarding the WWAMI program.
2021 Ms. Barrans
Described the Washington, Wyoming,
Alaska, Montana and Idaho (WWAMI)
program. The program provides guaranteed
access to a medical school for residents
of Alaska. The University of Washington
School of Medicine (UWSM), which focuses
on producing family practice doctors,
acts as the regional medical school for
Washington, Wyoming, Alaska, Montana and
Idaho by reserving a predetermined number
of class places each year. After
admission, Alaska students attend the
University of Alaska, Anchorage, for the
first year of medical school. Students
attend the second through fourth years in
Seattle, with the option of clinical
clerkships during this time at clinics in
towns in the WWAMI states.
WWAMI funding supports the Alaska
clinical sites, as Alaska is a
participant in the WWAMI program. Alaska
currently contracts with the UWSM and
pays for thirty places, ten in each of
the 2nd, 3rd, and 4th years of study.
Effective with the 1999-2000 school year,
as a condition of receiving WWAMI
support, Alaska students must agree to
practice medicine in Alaska for five
years or, alternatively, to repay a
portion of WWAMI program costs paid by
the State of Alaska. The loan component
consists of the annual difference between
resident and non-resident tuition at the
UWSM for the program period, plus
interest. For participants entering the
program in 2002, the interest rate is
3.25%. For the 2002-2003 school year,
the Board of Regents of the University of
Washington set the nonresident tuition
differential at $16,126.00.
2221 Ms. Barrans
· Administered WWAMI contract between
the Alaska Postsecondary Education
Commission, the University of
Alaska, and UWSM.
· Continue to enter into participation
contracts and service the existing
ones. Program participants must
practice in Alaska for five years
following program completion. If
non-compliant, they will be required
to repay the tuition differential
paid on their behalf, plus interest.
· Provide information on WWAMI to all
Alaskan high schools.
2340 Vice-Chair Meyer Asked how the interest rates on the
student loans were determined.
2354 Ms. Barrans Responded that they are set on a formula
that the federal government uses. It is
reset once a year based on an average of
a resale rate for the index.
2427 SHIELA KING, FINANCE Explained that the loan rate was set
OFFICER, ALASKA based on the 91 day 'veto' based on the
POSTSECONDARY last option in May every year.
EDUCATION,
DEPARTMENT OF
EDUCATION
2501 Vice-Chair Meyer Noted that one of his constituents wants
to know why he cannot refinance his
student loan.
2524 Ms. Barrans Responded that in April of this year, the
Alaska Postsecondary indents to offer a
consolidated loan offering.
The loans that the Commission issued
prior to 2002, were fixed rate loans and
were established based on the cost of
financing for the funds that funded that
loan. The other issue is that there was
zero interest charged while the borrower
was in school, which needs to be factored
in. The rates that are issued today, the
interest are reset each year. Interest
begins to accrue the day that the loan is
disbursed. She summarized that the
situation is 'not black and white'.
Effort needs to be made to mitigate the
costs.
2749 Vice-Chair Meyer Inquired if all students going to all out
of State schools pay the same interest
rate.
2817 Ms. Barrans Stated that the agency does not
differentiate.
2831 Vice-Chair Meyer Asked if all Alaskans qualify for the
loan if they request it.
2845 Ms. Barrans Acknowledged that there is certain
eligibility criterion that needs to be
met for both the federal and state loan.
· No child support past obligations
· No default on any previous loans
with the state of Alaska
· If they are subject to selective
service requirements, there needs to
be evidence that those requirements
have been satisfied.
A federal loan is an entitlement. For
the Alaska Supplemental loan, there is a
credit review and that money is not
guaranteed.
2932 Ms. Barrans Pointed out that the decline rate was
less than 7%.
2957 Vice-Chair Meyer Asked about the WWAMI program and if
there was a requirement for how long the
student would have to live in the State
of Alaska.
3023 Ms. Barrans Responded that there is an obligation
that they return and work up to 4 years
or they are obligated to repay as a loan
that portion that the State paid. She
added that there is a difference between
resident and non-resident. Currently,
the amount that would be is in excess of
$65 thousand dollars.
3058 Representative Referenced Page 6 amount collected
Hawker dollars on delinquencies. He asked why
those numbers had dropped.
3137 Ms. Barrans Replied that the default rate had dropped
substantially. Also, the dividend has
dropped which was a single source of
capturing the collectable debt.
3218 Representative Stated that the decline seemed unusual.
Hawker He questioned if the State had reached a
point of collective-ability of the loans.
3249 Ms. Barrans Replied that the number of borrowers has
increased. In 1996, tracking began and
it was noted that there was a higher
default rate of borrowers within the
State- 40% higher. That amount dropped
too less than a 5% differential in the
2001 number.
3347 Co-Chair Williams Referenced the number previous mentioned
that 1 in 4 students do not go on to be
college education. He asked the national
norm.
3420 Ms. Barrans Suggested that statistic indicates that
at the point of going on to college, on 1
in 4 choose that route. On the average,
other states see about 40-50% of their
graduating students go on to college. By
delaying the benefits, the student misses
out. She noted that the agency is
attempting to educated students regarding
the benefits of a college education. She
noted that they were trying to start
educating people on how to create the
college expectation. It is important to
identify the programs and what is
effective to getting kids excited about
postsecondary education.
3620 Ms. Barrans Added that in 2001, there was a
clarification of the Commission's
mission.
3640 Representative Pointed out that he had received Alaska's
Stevens student loan. He asked about the age
group of the borrowers.
3726 Ms. Barrans Replied that the agency is available for
lending at any point in life to help the
student no matter what their age.
3828 Representative Asked the number of current students with
Stevens outstanding loans; he asked the total
number of loans made throughout the
history of the program.
3847 Ms. Barrans Responded that the agency makes about
10,000 loans a year; at this point, there
are approximately 75,000 borrowers. She
did not know the total number of Alaskans
served. The total amount loaned to
Alaskans is in excess of $1.3 billion
dollars since inception.
3942 Representative Referenced Page 4 and asked the initial
Stevens amount.
3950 Ms. Barrans Replied that $306 million was the total
assets that was conveyed to the
Corporation.
4052 Ms. Barrans Concluded her presentation.
TAPE HFC 03 - 12, Side B
DEPARTMENT OF FISH AND GAME
4703 KEVIN DUFFY, ACTING- Discussed the Department's programs and
COMMISSIONER, missions. The mission is to protect,
DEPARTMENT OF FISH maintain and improve the fish, game and
AND GAME aquatic plant resources of the State and
to manage their use and development with
the best economy and well being of the
people in the State, consistent with the
sustainable yield principles.
4524 Acting-Commissioner Reviewed the Department of Fish and
Duffy Game's staff.
4409 Acting-Commissioner Stated that the Department has a $135
Duffy million dollar budget from about 10
separate funding sources. The majority
of the funding comes from three main
sources:
· $48 million federal funds
· $30 million general funds
· $25 million from fish and game
receipts.
4316 Acting-Commissioner He noted that the majority of the general
Duffy fund dollars, 80% goes into the Division
of Commercial Fisheries. The Division of
Sport Fish and Wildlife Conservation are
fully funded by non-general fund sources.
4219 Acting-Commissioner Sustainability is the management
Duffy philosophy of the Department with the
priority being subsistence use &
recreational hunting and fishing.
4111 Acting-Commissioner Statewide there are approximately 1,800
Duffy authorized positions, half of which are
part-time seasonal. The workload doubles
in the summer. He added that there are 40
locations throughout the State that the
Department has a presence.
4036 Acting-Commissioner Discussed issues that would come before
Duffy the Legislature this session, especially
from the Joint Salmon Task Force.
3931 Representative Questioned if the Legislature should
Stoltze rename the Division of Wildlife
Conservation to the Division of Game.
Commissioner Duffy recommended waiting
until the Governor's proposed FY04 budget
comes before the Legislature.
3843 Acting-Commissioner In response to a question by
Duffy Representative Stevens, Mr. Duffy
discussed the management structure. He
observed that a deputy commissioner would
not be appointed to the Division of Fish
and Game until the Commissioner is
appointed. He observed that his intent,
if he was appointed Commissioner, that he
would remain on the North Pacific Ground
Fish Council to ensure that the best
interest of Alaska benefits to the
maximum affect.
3612 Acting-Commissioner Further discussed the North Pacific
Duffy Ground Fish Council and its affect on the
Bering Sea crab fisheries. He observed
that rationalization of the gulf
fisheries is an important issue. He added
that the Gulf fisheries are fairly
complex and this issue is extremely
important to the residents of Kodiak and
other coastal communities. The voting
structure consists of 11 members, of
which, 6 are from Alaska. Mr. Duffy
acknowledged that internal coordination
was very important.
3330 Representative Requested a description of the test
Stevens fisheries.
3255 Acting-Commissioner Reviewed the Test Fisheries program. He
Duffy noted that receipts were used to assess
stocks. Procedures have been designed to
assure that test fisheries are not used
to run the Department. The test fish
component receives a large portion of the
operating budget for the Department.
3202 KEVIN BROOKS, Expanded. He noted that the test fish
DIRECTOR, DIVISION has evolved in the budget. He explained
OF ADMINISTRATIVE that there is about $4 million in receipt
SERVICES, DEPARTMENT authority, however the Department has
OF FISH AND GAME never collected the full amount. Test
fisheries has involved into a funding
mechanism for the management program. The
program realizes in excess of $2 million
dollars a year or 10 percent of the
Division of Commercial Fisheries
receipts.
3009 Representative Questioned the Department's position on
Stoltze the Tony Knowles Coastal Trail in
Anchorage.
2933 Acting-Commissioner Did not know the current Administration's
Duffy position. The previous Administration
favored the orange route, which had some
presence on the refuge.
2821 Co-Chair Harris Asked that the Commissioner provide a map
of the area indicating the potential
routes and a statement on the previous
and current Administration's position.
2756 Co-Chair Harris Questioned if the Department was taking a
different philosophy on game management.
2653 Acting-Commissioner Pointed out that the Game Board has a
Duffy range of tools by which the wildlife
population is managed. He admitted that
it is too early in the Administration to
identify those positions.
2613 Co-Chair Harris Referred to subsistence and observed that
the Governor has made a commitment to
address that issue.
2545 Acting-Commissioner Stressed that subsistence would be a high
Duffy priority, but observed that the issue
remains to be addressed. He commented
that he anticipated it would be
multifaceted.
2500
DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES
2450 MIKE BARTON, ACTING Introduced his staff and distributed a
COMMISSIONER, handout. (Copy on File).
DEPARTMENT OF
TRANSPORTATION &
PUBLIC FACILITIES
2309 Acting-Commissioner Provided an overview of the handout. He
Barton noted the regional boundaries serviced by
the Department:
· Northern Region
· Central Region
· Southeast Region
2223 Acting-Commissioner Pointed out that there are 84 maintenance
Barton stations statewide.
2152 Acting-Commissioner Spoke to the:
Barton
· National highway system;
· Alaska highway system;
· The Alaska highway system; the 261
State-owned airports;
· The 73 State-owned harbors, of
which, 51 are operated by agreement
with local governments;
· 33 ports-of-call consisting of 3,500
nautical miles
2051 Acting-Commissioner Referenced the organizational chart of
Barton the Department and the components of
responsibility of each division.
1934 Acting-Commissioner Pointed out the historical construction
Barton expenditures from 1997 through 2004. The
trend is upward. There are also two bond
programs.
1910 Acting-Commissioner He noted that the operating budget shows
Barton the opposite trend, trailing downward.
The operating budget buying power has
also reduced in the past few years.
1841 Acting-Commissioner Noted that the operating budget by
Barton funding source:
· AK marine Hwy Fund $86.1
· State Designated program receipts -
$1.1
· Receipts Services - $7.2
· Federal Receipts - $2.8
· General Funds - $94.3
· General Program Receipts - $.1
· I/A Receipts - $4.6
· Hwy Working Capital Fund - $23.7
· International Airport Revenue Fund -
$47.3
· Oil/Hazard Fund - $.7
· Capital Improvement Program Receipts
- $83.4
He noted that it totaled to a little over
$350 million dollars.
1820 Acting-Commissioner Pointed out the general fund and receipt-
Barton supported services by function. The
maintenance and operations portion of the
budget amounts to approximately $86,729
million dollars. Those funds are used to
maintain roads and airports.
1727 Acting-Commissioner Listed the regional maintenance funding
Barton and the totals related to each region:
· Southeast - $8,953 million dollars
· Northern - $37,166 million dollars
· Central - $29,630 million dollars
1638 Acting-Commissioner Highlighted the maintenance concerns:
Barton
· FY03 Operations Budget Cut
· Highways, Aviation & Facility
Impacts
He explained that the maintenance station
closures, the maintenance reductions, and
the federal funding agencies.
Acting-Commissioner Barton continued,
listing the O&M FY03 Supplemental
request, which would restore operations
for the remainder of the year and open
maintenance stations in Ninilchik, Birch
lake, and Chitina. It would also restore
maintenance at airports in Skwentna and
Clear and would restore maintenance at
State buildings.
1512 Co-Chair Harris Questioned that in the request for
supplemental funding, had Birch Lake been
reopened.
1451 Acting-Commissioner Stated that it was.
Barton
1427 Acting-Commissioner Referenced the disaster slide indicating
Barton disasters which occurred in the Fall
2002:
· October Flood - Kenai Peninsula
· November earthquake - Denali
· November flood - Kenai
· Federal Disaster Funding Agencies -
FEMA & FHWA
1337 Acting-Commissioner Referenced the Kenai Floods impacts,
Barton noting that some would require a general
fund match. He noted that it was
unfortunate that the Department was not
able to quickly get the permits that they
needed to address the impacts.
Co-Chair Harris Asked about which division had affected
the permitting delay.
1218 Acting-Commissioner Replied that it was the Habitat Division.
Barton He noted that the Department was still
identifying problems.
1131 Acting-Commissioner Discussed airports, noting the impact
Barton from the earthquake. Alaska is the
largest airport operator in the United
States.
1104 Representative Asked which State airports were net
Stoltze revenue producers.
1049 Acting-Commissioner Replied that Anchorage and Birchwood were
Barton the only revenue generating airports in
Alaska.
1028 Acting-Commissioner Added that even though the other airports
Barton do not make money, they provide an
essential service within the State.
1006 Acting-Commissioner Spoke to the Alaska International Airport
Barton System (AIAS).
· Includes Anchorage 7 Fairbanks
international airports
· Enterprise fund covers operating
costs and capital costs not paid for
by federal funds
· Total annual operating budget is
approximately $68 million dollars
· FAA capital funds and passenger
facility charges total over $23
million annually.
He added that the Anchorage airport helps
the revenue situation of the Fairbanks
one. Anchorage is the #1 cargo airport
in the United States and is the economic
engine for all of Alaska.
841 Acting-Commissioner Highlighted the Ted Stevens Anchorage
Barton International Airport. He pointed out
that it is:
· Busiest floatplane base in the world
· Has the largest economic impact in
the State of Alaska
· Serves 5 million passengers per year
· 58 airlines currently operating at
that airport
822 Acting-Commissioner The Fairbanks International Airport is
Barton
· The #13 cargo airport in the country
· Large floatplane base, which has
been recently expanded
· Large economic impact
· Serves 800,000 passengers per year
· 15 airlines currently operating at
that airport.
717 Acting-Commissioner Outlined the design and engineering
Barton services. That Division consists of
bridge design, statewide materials, ports
and harbors, design and construction
standards and research and technology
transfer.
628 Acting-Commissioner The actual construction program is the
Barton responsibility of various regions.
524 Acting-Commissioner Alaska Marine Highway System (AMHS)
Barton
· AMHS celebrated its 40th anniversary
rd
on January 23
· 3,500 total nautical miles of
coastline served by AMHS from
Bellingham to Unalaska
· CY2001 statistics - 318,891
passengers and 93,946 vehicles which
equates to 60,902,285 passenger
miles and 18,479,996 vehicle miles
· Alaska Marine Highway vessels
traveled 475,650 nautical miles in
2000
· Designated a national Scenic Byway
in 2002
· Fuel costs average 11% of AMHS
annual operating budget
· Labor costs average 68% of the AMHS
annual operating budget
120 Co-Chair Harris Questioned if the replaced 40+ ferryboats
would be replaced with more fast ferries.
109 Acting-Commissioner Advised that the Department currently has
Barton options on 2 more fast ferries. The
Department has not decided if they will
take advantage of those options.
52 CAPTAIN GEORGE Noted that the strategic plan calls for a
CAPACCI, GENERAL future fleet mix, with some conventional
MANAGER, MARINE vessels with a system of fast ferries and
HIGHWAY SYSTEM, catamarans and future passenger only
DEPARTMENT OF ferries to interconnect. The plan will
TRANSPORTATION & be a mix of both. The current plan for
PUBLIC FACILITIES the year 2020 consists of five mainline
vessels, conventional vassals and a fleet
of five to six catamaran vessels.
TAPE HFC 03 - 13, Side A
019 Co-Chair Harris Asked how much anticipated federal
funding would there be for the marine
highway. Captain Capacci replied that
the vast majority of the funds would be
acquisition costs, federal funding.
108 Acting-Commissioner Discussed the ports and harbors.
Barton
· The Department is responsible for 73
public harbors
· 51 facilities operated by local
governments
· Capital Program is largely Corps of
Engineers Program, except bond funds
and State match
· 39 active capital projects for $53.2
million in authorizations
· HB 525 authorized $31.8 million
dollars for upgrading and
transferring 27 facilities in 10
communities
256 Acting-Commissioner Reviewed measurement standards and
Barton commercial vehicle enforcement (MSCVE):
· MSCVE enforces all federal and State
commercial vehicle laws to ensure
safe highways
· MSCVE certifies the accuracy of all
weighing and measuring devices used
in committee
· MSCVE issues permits for overweight
vehicles
· MSCVE is implementing a new one-stop
web-based permit system
457 Co-Chair Harris Referred to the gravel to asphalt program
and asked if that was a program that the
Commissioner intended to keep.
513 Acting-Commissioner Replied that the program would be
Barton continuing. He expressed his support.
528 Representative Asked if the measurement program was a
Stevens self-supported program.
544 Acting-Commissioner Responded that program is largely receipt
Barton supported. They also certify scales that
are for State construction projects.
556 Representative Referred to the international Airport
Hawker Fund. He noted the $81.8 million
unrestricted cash assets in that fund.
He asked if that money was in excess of
the needs of the International Airport
fund.
627 Acting-Commissioner Explained that those funds came through
Barton the carriers. It is not leftover general
fund dollars.
712 NANCY SLAGLE, Agreed that the funds came from the
DIRECTOR, DIVISION providers. All of it has been identified
OF ADMINISTRATIVE for on-going capital projects. The
SERVICES, DEPARTMENT Capital and Operating budgets for the
OF TRANSPORTATION airports are set up through an operating
AND PUBLIC agreement that identifies anticipated
FACILITIES expenditures and then they develop their
landing fees.
850 Representative Requested if a schedule that could
Hawker analysis that information could be
provided to the Committee.
906 Vice-Chair Meyer Asked when road construction could be
expected on the Abbott Luke extension.
928 Acting-Commissioner Commented that he was not prepared to
Barton speak to the Capital budget. He noted
that the Kotzebue project would be the
first to come out of the bond package.
1001 Vice-Chair Meyer Asked if the State paid Bacon-Davis wages
on the road projects. Acting-Commissioner
Barton replied that they do. Vice Chair
Meyer asked about expanding into
parklands.
1056 MICHAEL DOWNING, Explained that the State is using federal
ACTING DEPUTY highway money and following their
COMMISSIONER, procedures. There is a provision called
DEPARTMENT OF 4-F that complicates the process. The
TRANSPORTATION & standard is if there is any reasonable
PUBLIC FACILITIES alternative to going across, the
Department is required to choose that
alternative. He emphasized that the
State is limited.
1215 Vice-Chair Meyer Observed that the alternative is to
displace some families.
1228 Mr. Downing Emphasized the need for creative
solutions.
1245 Vice-Chair Meyer Asked how much of the budget was
allocated for snow-removal. He was
curious that since there had not been
much snow this year, would some of that
money be carried forward.
1258 Acting-Commissioner 85% percent of the maintenance budget is
Barton designated for winter use.
1310 FRANK RICHARDS, Explained that the snow removal budget
STATEWIDE for the Department is $86 million
MAINTENANCE AND dollars. That includes funding for the
OPERATIONS, facility maintenance as well. The winter
DEPARTMENT OF maintenance costs are fixed in terms of
TRANSPORTATION & personnel, equipment and commodity
PUBLIC FACILITIES purchases. The costs are on a fiscal
year basis and if the product is not
expended, the product is carried forward.
1412 Vice-Chair Meyer Questioned fixed costs and asked if the
personnel were fixed costs or contract
costs.
1421 Mr. Richards Replied that to a great extend, they are
State employees. In the rural airports,
the Department does have contract to
maintain those airports.
1444 Vice-Chair Meyer Questioned the ratio of State employees
in relationship to the contracts.
1503 Mr. Richards Observed that in Anchorage, the
Department works with the Municipality.
There, the State and the City has road
responsibilities; however, contracts are
used in other areas whenever the
opportunity exists.
1622 Vice-Chair Meyer Questioned the cost benefit.
1634 Mr. Richards Commented on the completion of the
Whittier tunnel. The tunnel operation
was privatized. There was snow removal
in both the Whittier and the Bear Valley
side. Because of the low winter, it was
hard to maintain a contract. Because of
that, it has been difficult to get
contracts because of the variable weather
possibilities and contractors were unsure
of the costs. Eventually, the Department
went back to using State employees.
1736 Vice-Chair Meyer Expressed his support for returning
neighborhood roads to the local areas. He
spoke to the recycled asphalt program and
questioned if that product was being sold
to the cities.
1843 Mr. Downing Explained that a policy was adopted to
use the recycle asphalt as part of the
base for all new high volume highway
construction. He acknowledged that the
State of Alaska recognizes the value.
1925 Vice-Chair Meyer Questioned the goal for snow removal.
1938 Mr. Richards Replied that the snow removal time frame
for high volume roads is as soon as
possible when the snow hits. Those roads
of less use, then 24 hours for initial
cleanup, and in smaller roads, it would
be an extended up to 48 hours time
period.
2045 Vice-Chair Meyer Referenced the Lake Hood airport.
2056 Acting-Commissioner Replied that Lake Hood is the largest
Barton floatplane base in the world. It is
extremely busy.
2108 Co-Chair Harris Questioned if the Department was
investigating turning over to the
communities, the State highway system
that is within their community
boundaries.
2144 Mr. Richards Observed that there is a program to work
with communities through capital funds to
upgrade roads for those communities that
are willing to accept responsibility for
keeping their own roads. He emphasized
that it would depend on the willingness
of communities to take on the
responsibility. The Department is
supportive of working more with the
communities.
2251 Co-Chair Harris Stressed that the State of Alaska should
do as they have asked the federal
government to do and that is to provide
more grants with "less strings attached".
2346 Acting-Commissioner Reiterated that the State is interested
Barton in transferring ownership of the
unfounded roads.
2404 Co-Chair Harris Emphasized that he was not talking of
unfunded mandates.
2418 Representative Referred to maintenance. He noted that
Whitaker the decision to cut was made at the
Administration level.
2456 Representative Asked how the replacement vessels would
Stevens be affected and the time line associated
with that in regard to the Safety At Life
At Sea Treaty (SALAST).
2514 Captain Capacci Responded that SALAST has a number of
safety requirement that are coming down
that will cause old ships to be upgraded.
The Taku and the Matanuska have some
major rehabilitation of the passenger
deck for safety by 2010. The estimate is
between $40 to $50 million dollars per
ship. He acknowledged that the Department
is trying to determine if it is wise to
spend that amount of money. There are
options for construction of two
additional fast ferries, but there is no
commitment at this time.
2703 Representative Inquired regarding the status of the Tony
Stoltze Knowles Coastal Trail.
2719 Acting-Commissioner Responded that the Environmental Impact
Barton Statement (EIS) process is currently
underway. Public comments are still
coming in. The Department is looking at
that project in order to determine where
it should go. He questioned why the
project is a State project. He believed
that it should be a local project.
2925 Representative Commented that 72-hour snow removal is
Stoltze too long.
2951 Acting-Commissioner Responded that the State needs to look
Barton into privatization opportunities.
3019 Representative Observed that his district is dependent
Stoltze on recycled asphalt.
3038 Mr. Downing Explained that if the asphalt is ground,
it is remixed. If it is milled it can be
separated. The State would consider
requests for recycle asphalt by local
communities. The State wants to avoid
hauling it.
ADJOURNMENT The meeting was adjourned at 3:54 P.M.
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