Legislature(2009 - 2010)HOUSE FINANCE 519
04/15/2009 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB75 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 75 | TELECONFERENCED | |
| + | HB 207 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 15, 2009
8:45 a.m.
8:45:10 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 8:45 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
John Duffy, Borough Manager, Mat-Su Borough; Joe Geldhof,
Juneau; Chip Thoma, President, Responsible Cruising in
Alaska; Senator Linda Menard
PRESENT VIA TELECONFERENCE
Kathy Morgan, Tok Community Umbrella Corporation, Tok; Dan
Duame, Executive Director, Aleutian Housing Authority
Association of Alaska Housing Authorities, Palmer; Charles
Parker, Alaska Village Initiatives, Wasilla; Grant Baker,
UAA Engineering, Anchorage; Dan Leinberger, Mayor, Bethel;
Rick Koch, City Manager, Kenai; Brian Rodger, Interim
Chancellor, University of Alaska, Fairbanks; Chris Turletes,
Associate Vice Chancellor, University of Alaska, Anchorage;
John Pugh, Chancellor, University of Alaska Southeast,
Juneau; Eric Morrison, Fire Chief, White Mountain; Dan
Harrelson, Mayor, White Mountain; Linda Snow, City Manager,
St. Paul; Terri Snyder, Mat-Su Borough; Sedor Kuzmin, Delta
Junction; Cynthia Henry, Chair, University of Alaska Board
of Regents; Paul Kendall, Anchorage; Bill Cheeseman,
Transportation Supervisor, Mat-Su School District; Marvin
Yoder, Manager, Wasilla; Paul Campbell, Port MacKenzie
Commission, Mat-Su; Bishop Buckle, Chair, Real Property
Asset Management Board, Mat-Su; Tom Adams, Civil Engineer,
Loundsbury & Associates, Mat-Su; Dave Cruz, Port McKenzie
Commission, Mat-Su; Chuck Braum, Operations/Maintenance
Road, Mat-Su; Chris Remilk, Mat-Su School District; Lynn
Woods, Deputy Mayor, Mat-Su Borough; Michael Campfield,
Engineer, Mat-Su Transportation Advisory Board, Palmer; Greg
Bell, Port McKenzie Commission, Wasilla; Bill Sheffield,
Director, Port of Anchorage
SUMMARY
CSSB 75(FIN)
"An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
CSSB 75 was heard and HELD in Committee for
further consideration.
HB 207 "An Act increasing the allowances for injury,
disability, or heart attack payable from the
fisherman's fund; and providing for an effective
date."
HB 207 was heard and HELD in Committee for
further consideration.
8:46:18 AM
CS FOR SENATE BILL NO. 75(FIN)
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
JOHN DUFFY, BOROUGH MANAGER, MAT-SU BOROUGH, related that
the Mat-Su borough is quickly growing and has increased
needs such as improved transportation systems. He shared
statistics about the dangers of local roads and bridges in
need of repair. He shared local solutions taken to raise
funds to meet those needs. He requested matching funds of
$35 million and that the state budget shortfall is shared
equally throughout the state. He stressed the burden put on
the Mat-Su due to recent budgetary cuts.
Co-Chair Stoltze commented that the Committee is dealing
with the governor's budget as submitted, which did not
include funding for those projects. It puts the legislature
in a precarious situation. He spoke of specific vetoes:
Goose Creek for $17 million, the Spur Line, port money, and
matching road bond money. He maintained that there were no
guarantees or promises in this budget.
Mr. Duffy voiced appreciation for the work the legislature
does.
8:51:28 AM
JOE GELDHOF, JUNEAU, related that he was one of the
principle authors of the cruise ship initiative. He
addressed Section 4 of SB 75, which relates to the cruise
ship initiative. He felt he spoke for those who worked on,
and voted for, the initiative. The kinds of projects that
are currently funded are those that the fund was intended
for. He thanked the Committee for moving forward and
spending the money on the projects and putting Alaskans to
work.
8:53:14 AM
Representative Gara asked what the funds are allowed to be
used for. He wondered if there is any intent language. Mr.
Geldhof related that there is language in the initiative
that mirrors federal law. There is only one significant
case that touches on the federal limitations. There is a
potential for a law suit. There needs to be a nexus between
the kinds of activities funded and the source of the
revenue, the excise tax. For example, a wharf in Ketchikan
would apply. The vast majority of the projects show the
connection between the project and the passengers.
8:55:24 AM
Representative Gara asked what the federal language states.
Mr. Geldhof could not cite the language. He said the excise
tax must be spent on cruise-related items. Representative
Gara thought there was a lot of leeway if it is linked to
passengers; less if it is linked to the cruise ship.
Co-Chair Stoltze offered to provide the language.
Representative Austerman wondered if not spending the money
jeopardized the excise tax. Mr. Geldhof explained that
there were two issues related to collecting money and not
spending it. At a certain point if a large amount of money
accumulates, it would be a legal problem. That has been
avoided this session because the money is being spent. An
orderly expenditure is advisable from a legal point of view.
8:59:28 AM
Representative Gara did not like the idea of the federal
government telling the state how to use its money. He
requested federal language regarding that issue. Mr.
Geldhof offered to provide that language.
Representative Kelly also requested a copy of the language.
Co-Chair Stoltze stated that all members would receive a
copy.
Mr. Geldhof added that federal law roughly parallels state
law.
9:00:47 AM
CHIP THOMA, PRESIDENT, RESPONSIBLE CRUISING IN ALASKA,
referred to page 42 of the bill, the cruise ship
appropriation, and thought the descriptions of the projects
should be more specific in order to avoid lawsuits. He
voiced appreciation for the legislature's support.
9:03:02 AM
KATHY MORGAN, TOK COMMUNITY UMBRELLA CORPORATION, TOK, via
teleconference, requested funding for several CIP's: a Tok
biomass and processing facility for $190,000, a new woodchip
boiler at the Tok DOT for $1.5 million, wood pellet stoves
in public buildings for $47,500, and to clear space around
disabled, senior, and veterans homes for $150,000.
9:04:27 AM
DAN DUAME, EXECUTIVE DIRECTOR, ALEUTIAN HOUSING AUTHORITY
ASSOCIATION OF ALASKA HOUSING AUTHORITIES, PALMER, via
teleconference, expressed support for the Supplemental
Housing Development Grant Program, which saw a decrease in
the Senate's version of the bill. He described the program
as rehabilitation and development of affordable housing in
rural Alaska. The program administers $90 million in
federal housing money directly and leverages additional
funds. The Grant Program is one of the sources used as
leverage. He related that the allocated state grant program
of $8 million needs to be raised to $10 million. He
requested that the $10 million amount be restored to be used
for affordable housing and jobs. The funds allow for a
federal match.
9:10:10 AM
CHARLES PARKER, ALASKA VILLAGE INITIATIVES, WASILLA, via
teleconference, requested funding for fire protection in
rural communities. He requested $1 million for 12
communities. He cited a study on property loss in rural
areas when there is no fire protection. He strongly urged
support for the program.
9:12:29 AM
GRANT BAKER, UAA ENGINEERING, ANCHORAGE, via teleconference,
spoke of the importance of hiring Alaskan engineers for
pipeline jobs. He urged support for an increase in funding
for an engineering building. He encouraged finding
solutions to stimulate the economy. He thanked the
Committee for all its hard work.
Representative Gara appreciated meeting with the engineering
students recently. He mentioned other structural needs in
Alaska. He suggested also using private sector funds for
the engineering building.
9:16:18 AM
DAN LEINBERGER, MAYOR, BETHEL, via teleconference,
recognized the status of the economy; however, he maintained
that Bethel has a few necessity items. Bethel's public
safety buildings are in decrepit condition. The police and
fire station are in need of repairs. More structural
deficiencies were discovered during a roof repair to the
fire station. He mentioned that Occupational Safety and
Health Administration has cited health and safety problems
with the structure. He said the situation should not wait
another year. He also requested funding for a multi-use
Bethel Aquatic Center. He referred to a resolution
requesting funding for those projects.
9:21:11 AM
RICK KOCH, CITY MANAGER, KENAI, via teleconference,
testified in support of a capital project in the original
budget, the Kenai River Bluff Erosion Project. He explained
the details of the erosion and the Corps of Engineers'
study. In October 2007, the voters approved a bond
proposition to support the project. He mentioned the loss
of property and money for improvements if the project is not
undertaken. He discussed the federal omnibus bill that
removed a Congressional authorization that related to the
Corps of Engineers' ability to undertake Alaska coastal
erosion control projects. A 35 percent match is now
required. The project is ready to move forward and is
Kenai's number one priority. He requested a state match of
$13 million.
9:27:54 AM
BRIAN RODGER, INTERIM CHANCELLOR, UNIVERSITY OF ALASKA,
FAIRBANKS, via teleconference, thanked the Committee for its
work. He reported that UAF needs $50 million for deferred
maintenance. He requested support to use non-general funds
to begin construction of the Energy Building.
Representative Joule asked if the Cold Climate Housing is
part of the university. Mr. Rodger replied that it is
located on UAF property, but not associated with the
university.
CHRIS TURLETES, ASSOCIATE VICE CHANCELLOR, UNIVERSITY OF
ALASKA, ANCHORAGE, via teleconference, requested funding for
deferred maintenance. He described the university's needs
and the amount of funds required to meet those needs. He
detailed needs in refurbishing the science building and the
arts building. He requested funding for remodeling and
renewing and deferred maintenance.
Vice-Chair Thomas assumed the gavel.
9:36:48 AM
JOHN PUGH, CHANCELLOR, UNIVERSITY OF ALASKA SOUTHEAST,
JUNEAU, via teleconference, thanked the Committee for its
work on the operating budget. He requested funding for the
university's top priority, major remodeling and renewing, as
well as for deferred maintenance. The thanked the
legislature for its past support of remodeling and renewing
projects. He requested that the Committee add back the $8
million for deferred maintenance.
9:38:55 AM
ERIC MORRISON, FIRE CHIEF, WHITE MOUNTAIN, via
teleconference, testified in support of funding for the
public safety building construction in White Mountain. He
asked for a 40 percent match, stating that 60 percent of the
funds had been lined up from seven other sources. He listed
funding sources and emphasized the need for state funds in
order to meet the federal match.
9:40:38 AM
DAN HARRELSON, MAYOR, WHITE MOUNTAIN, via teleconference,
requested money for the public safety building. He reported
on a fire with loss of lives, and the loss of their school
from another a fire.
9:41:40 AM
LINDA SNOW, CITY MANAGER, ST. PAUL, via teleconference,
requested state matching funds for the St. Paul Harbor
Project. She described the history of the island and the
city's quest to establish its economy. She detailed the
phases of the harbor construction. Included in the
governor's version of the bill is funding for the final
phase which would complete the harbor project.
9:45:01 AM
TERRI SNYDER, MAT-SU BOROUGH, via teleconference, spoke in
support of funding for roads. She talked about unfunded
mandates. She emphasized the need for fairness in the
distribution of available funds.
9:47:50 AM
SEDOR KUZMIN, DELTA JUNCTION, via teleconference, testified
in favor of funding for fuel for schools and water for the
community.
9:50:10 AM
CYNTHIA HENRY, CHAIR, UNIVERSITY OF ALASKA BOARD OF REGENTS,
via teleconference, thanked the Committee for its work. She
listed renewal and renovation as the Board's highest
priority item. She hoped that there would be an increase in
the budget for this appropriation. She emphasized that it
was an opportunity for the university to maximize
construction dollars.
Representative Kelly mentioned that Representative
Fairclough worked hard on the university's budget.
9:53:36 AM
PAUL KENDALL, ANCHORAGE, via teleconference, requested
funding for an energy forum. He suggested looking at the
Cook Inlet as an energy source. He reminded the Committee
that the stimulus money will disappear in two years. He
thought the focus should be on water as an energy source.
He suggested ideas for using water for energy. He suggested
sticking to core values.
9:58:36 AM
BILL CHEESEMAN, TRANSPORTATION SUPERVISOR, MAT-SU SCHOOL
DISTRICT, via teleconference, agreed with Mr. Duffy's
comments on the need for road repair in the Valley. He
spoke of safety issues when transporting students in busses.
10:00:16 AM
MARVIN YODER, MANAGER, WASILLA, via teleconference,
requested funding for road bonds to promote health and
safety. He stated that the state should support the voters'
intentions.
PAUL CAMPBELL, PORT MACKENZIE COMMISSION, MAT-SU, via
teleconference, testified in support of funding bonds for
ports.
10:02:53 AM
BISHOP BUCKLE, CHAIR, REAL PROPERTY ASSET MANAGEMENT BOARD,
MAT-SU, via teleconference, testified in support of funding
for roads and the new prison.
10:03:49 AM
TOM ADAMS, CIVIL ENGINEER, LOUNDSBURY & ASSOCIATES, MAT-SU,
via teleconference, spoke in favor of funding for
transportation projects. He stressed the need to fund bond
and design projects. He emphasized that it was the wish of
the voters to fund these bonds. He recognized that the Mat-
Su Borough ratio drops to $4 dollars per person if major
transportation projects are removed. He urged financing a
portion of the road bond package.
10:07:54 AM
DAVE CRUZ, PORT MCKENZIE COMMISSION, MAT-SU, via
teleconference, spoke in support of infrastructure
improvement projects.
CHUCK BRAUM, OPERATIONS/MAINTENANCE ROAD, MAT-SU, via
teleconference, asked that Mat-Su be given a fair share of
the capital budget.
10:09:15 AM
CHRIS REMILK, MAT-SU SCHOOL DISTRICT, via teleconference,
spoke in support of the road bond project and pointed out
the importance of students being transported safely over the
roads.
LYNN WOODS, DEPUTY MAYOR, MAT-SU BOROUGH, testified via
teleconference in support of further investment in roads,
ports, and the rail system. She maintained that projects
are needed to address current and past needs and to grow the
economy.
Representative Foster referred to the Senate capital budget
structure and pointed out that Mat-Su has $50 million
allotted to it, more than Anchorage area-wide or Kenai. He
concluded that Mat-Su has done very well.
Ms. Woods said she was fortunate to have excellent
representation in the legislature. She pointed out that she
was speaking strictly about the Mat-Su area. Money for
prisons does not help with building roads. She thought
distribution should be equal throughout the state.
10:13:58 AM
MICHAEL CAMPFIELD, ENGINEER, MAT-SU TRANSPORTATION ADVISORY
BOARD, PALMER, via teleconference, listed projects currently
in the design stage and requested funding for them. He
requested $190 million to maintain those projects. The
stimulus package does not cover these projects. He spoke of
the approval of the voters. He said that Department of
Transportation and Public Facilities supports many of the
roads included in the bond package. He maintained that they
would reduce accidents, improve safety, and increase
emergency response time.
10:18:30 AM
GREG BELL, PORT MCKENZIE COMMISSION, WASILLA, via
teleconference, requested funding for the Port, roads, and
railroad expansion.
Representative Fairclough thought that Governor Sheffield
was looking for funding for the Port of Anchorage.
10:20:13 AM
SENATOR LINDA MENARD requested funding for the railroad spur
and for roads in the Mat-Su Borough. She mentioned that the
area contains three of the most hazardous roads in Alaska.
She maintained that the economic return from the projects is
key to the Borough.
10:22:28 AM
FORMER-GOVERNOR BILL SHEFFIELD, DIRECTOR, PORT OF ANCHORAGE,
via teleconference, requested funding to finish the north
extension of the Port. He thanked the Committee for its
support.
10:23:47 AM
SB 75 was heard and HELD in Committee for further
consideration.
HOUSE BILL NO. 207
"An Act increasing the allowances for injury,
disability, or heart attack payable from the
fisherman's fund; and providing for an effective date."
Vice-Chair Thomas noted that HB 207 would be heard during
the afternoon meeting.
HB 207 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:23 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02 HB207 Sponsor Statement.pdf |
HFIN 4/15/2009 8:30:00 AM |
HB 207 |
| HB 207 Referral Summary.doc |
HFIN 4/15/2009 8:30:00 AM |
HB 207 |