Legislature(2019 - 2020)ADAMS ROOM 519
05/10/2019 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB19 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 19 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
May 10, 2019
1:30 p.m.
1:30:18 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 1:30 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Tammie Wilson, Co-Chair
Representative Jennifer Johnston, Vice-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Cathy Tilton
MEMBERS ABSENT
Representative Ben Carpenter
ALSO PRESENT
Dorene Lorenz, Chair, Friends of Jesse Lee Home, Juneau;
Erin Walker-Tolles, Executive Director, Catholic Community
Services, Juneau.
PRESENT VIA TELECONFERENCE
Jennifer Beckmann, Central Area Rural, Kenai Peninsula;
John Strasenburgh, Self, Talkeetna; Ruth Wood, Self,
Talkeetna; Patrick Reinhart, Alaska Mobility Coalition and
Governor's Council on Disabilities and Special Education,
Anchorage; Susan Lang, Volunteer Coordinator, Friends of
the Jesse Lee Home, Lowell Point; Marian Charles, Member,
Willow Library Association, Willow; Iris Darling, Self,
Seward; Brian Okonek, Self, Talkeetna.
SUMMARY
CSSSSB 19(FIN)
APPROP: CAPITAL BUDGET; SUPPLEMENTAL
CSSSSB 19(FIN) was HEARD and HELD in committee for
further consideration.
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 19(FIN)
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; amending
appropriations; making appropriations to capitalize
funds; and providing for an effective date."
1:30:47 PM
Co-Chair Wilson reviewed the agenda for the meeting. She
indicated the committee would hear public testimony on the
capital budget. She intended to have a committee substitute
on the following Monday and would hear amendments at that
time.
^PUBLIC TESTIMONY
1:31:17 PM
Co-Chair Wilson OPENED Public Testimony for SB 19.
1:31:27 PM
JENNIFER BECKMANN, CENTRAL AREA RURAL, KENAI PENINSULA (via
teleconference), spoke in support of a strong public
transportation system. She purported that Alaska invested
millions of dollars each year in its transportation systems
that primarily focused on roads and bridge infrastructure.
The result made the state heavily reliable on automobiles
and driving. She stated that limiting access to public
transportation options negatively impacted individuals'
ability to get to work, access healthcare, and shop for
necessities. She spoke in support of the $1 million in
public and community state matching funds for public and
community transportation that leveraged much more in
federal funding.
1:33:20 PM
JOHN STRASENBURGH, SELF, TALKEETNA (via teleconference),
spoke against funding for the South Denali Visitor Center.
He discussed the stunning views from the proposed visitor
center site called site one. He shared information about
the planning and public process and Environmental Impact
Statement (EIS) in 2006 that chose the site and maintained
a record of decision. He communicated that the site was
changed by amending the record of decision without any
public notification or process. The new site, site two
had been changed significantly to alpine tundra in an
ecologically fragile area over a mile away from site one.
He related that the new cite was not supported by the
public or the Denali State Park master plan. The new cite
required more analysis and public process.
Vice-Chair Ortiz asked about the statement that the new
center was not supported by the public. He asked whether
Mr. Strasenburgh had proof to back up the statement. Mr.
Strasenburgh pointed to a borough resolution by the Parks
Recreation and Trails advisory board objecting to the
change from site one to site two. He spoke to public
meetings where the citizenry broadly disapproved of the new
site.
1:37:45 PM
RUTH WOOD, SELF, TALKEETNA (via teleconference), spoke
against the location and proposal for the South Denali
Visitor Center. She noted that she had worked on the issue
since 2006. She supported the original site. She mentioned
the EIS study that addressed the environmental sensitivity
of site two. She believed that changing the site required
further National Environmental Policy Act (NEPA) study. She
examined budget documents and was uncertain what the $2.5
million capital appropriation was allocated for. The $25
million price tag for the visitor center was estimated in
2006 and she deduced that costs had risen. She noted that
the state, federal government, and the National Park
Service signed the original document, which was suddenly
cast aside for a site that was not vetted. She reported
that there was not a road to site two. She emphasized that
everything about the project concerned her. She opposed
spending $2.5 million for a questionable expenditure when
the state was in a budget crisis.
Representative Merrick asked if any private money was going
into the project.
Ms. Wood answered that she had not been able to find any
reliable information that was not hearsay or rumor. She
could not determine if any of the $2.5 million or other
funding was coming from industry. She relayed that she had
queried the Legislative Finance Division (LFD) regarding
the appropriation and it was characterized as arbitrary.
She shared that currently cabins, a campground, and a
spectacular and easy trail existed. She did not support
putting a building in that location - it would not serve
Alaskans or visitors.
Representative Josephson reported that he had been in the
Princess Hotel [Princess Hotels and Resorts] in the state
park [Denali State Park]. He inquired whether she was aware
of interest by Princess to build another hotel or resort in
proximity of the existing hotel. Ms. Wood answered that a
Native corporation had an inholding in the state park that
was interested in building a hotel and had discussions with
the state. She did not have current information. She felt
that if a facility was built, it should be located in the
original site that had been carefully vetted via an EIS.
She understood that building on site two would be more
expensive. She was certain there was interest, but it was
all hearsay. She stated that the existing facilities served
customers, visitors, and Alaskans. She believed the trail
was the most spectacular hike available to visitors and
Alaskans.
1:45:43 PM
Representative LeBon asked Ms. Wood if she had knowledge
about any support from the National Park Service. Ms. Wood
answered that the park service had been involved in the
original EIS, but she did not know what specific
involvement they had outside of trying to take visitor
pressure off the national park. She believed that people
came to Alaska to go to Denali National Park and the state
park would not divert many visitors. She recalled that the
National Park Service acknowledged that further NEPA study
would be required for site two. She did not believe the
park service would build the site nor could build without
another NEPA study.
1:48:08 PM
DORENE LORENZ, CHAIR, FRIENDS OF JESSE LEE HOME, JUNEAU,
shared that since 1997 the legislature had worked with the
people of Seward to restore the Jesse Lee Home. She
detailed that over $3 million had been expended on building
stabilization, architecture, and historic preservation
engineering. In addition, the curriculum for the Career and
Technical Education (CTE) charter high school that will
inhabit the building had been developed. The school will be
aligned with the nearby Alaska Vocational Technical Center
(AVTECH) center. However, in the past year, the $1.25
million that had been earmarked for restoring the building
was appropriated to the City of Seward to destroy the
building. She informed the members that the building was
the home of Benny Benson where the Alaska flag had first
been designed, sown, and flown. She continued that
historically, the building had been a home and school for
children of Japanese descent, native, and white races that
had all been treated equally. She was requesting an
amendment for a change from language that enabled tearing
the building down to an appropriation for its original
purpose. She requested that the appropriation be removed
from the Department of Commerce, Community and Economic
Development (DCCED) to the Department of Labor and
Workforce Development (DLWD). The administration was
extremely interested in the success of the project. She was
working with DLWD and the Department of Education and Early
Development (DEED). The organization had a 60 percent match
for federal funds and was saving state funding for the
match. The Alaska Industrial Development and Export
Authority (AIDEA) had offered the project a loan but the
organization rejected it in the hope of avoiding debt. She
emphasized that she was requesting an amendment and not
additional funding.
1:53:40 PM
Co-Chair Foster stated his understanding of the testimony.
He relayed that $1.2 million was included in the FY 19
budget for abatement and she was requesting and amendment
to allow restoration. Ms. Lorenz answered affirmatively.
Representative Sullivan-Leonard asked about the community
investment in the restoration of the Jesse Lee Home. Ms.
Lorenz emphasized that the home was a statewide project.
She explained that during the past year the Outward Bound
program had students clean up the grounds, fix fencing,
etc. The Coast Guard worked on the building every time they
were in town and companies from Anchorage, Fairbanks, and
Kenai donated time, materials, and services to help install
water and sewer lines. The Jesse Lee Home was a foster home
and the former residents currently lived statewide.
Representative Sullivan-Leonard was supportive of the home.
She asked for a distinction regarding its historical
designation. Ms. Lorenz answered that the home was on the
National Historical Register and was on the state
historical register and considered one of the most
historically important buildings by the state Historic
Preservation Commission.
Co-Chair Foster remembered that the appropriation for
abatement occurred prior to FY 19. Ms. Lorenz answered that
prior to the past year, matching funds were removed and
reappropriated to the Department of Transportation and
Public Facilities (DOT). The $1 million that had been left
over was the funding the organization would like to use.
1:57:11 PM
ERIN WALKER-TOLLES, EXECUTIVE DIRECTOR, CATHOLIC COMMUNITY
SERVICES, JUNEAU, spoke in support of the public and
community transportation state match. She shared details
about providing transportation services to seniors and the
disabled and noted that transport was the major service
Catholic Community Services provided. The organization did
not own all its vehicles and could not operate Americans
with Disabilities Act (ADA) compliant vehicles for
paratransit services if the communities it served could not
afford to purchase vans for their fleets. She reported that
the organization did own 12 vans and listed the communities
they served: Haines; Skagway; Kake; Wrangel; Hoonah;
Angoon; Yakutat; Craig; and Klawock. The community vans
were the only way for seniors to get a ride from Craig and
Klawock to Ketchikan. She indicated that the organization
was constantly fund raising to provide operating and
capital funding match money. The federal government matched
$4 million to the states $1 million match. She was very
concerned that without state funds designated for the
purpose, many seniors would not get to the doctor or senior
centers. The transport was also the delivery method for the
Meals on Wheels program. She requested that the committee
support the full matching funding.
2:00:11 PM
PATRICK REINHART, ALASKA MOBILITY COALITION AND GOVERNOR'S
COUNCIL ON DISABILITIES AND SPECIAL EDUCATION, ANCHORAGE
(via teleconference), testified in support of the public
and community transportation state match. He believed that
the appropriation was important; the match funding
supported communities throughout the state. He provided
information about the history of the funding source. He
relayed that approximately 15 years ago he was the director
of the State Independent Living Council. He travelled to
Washington DC, accompanied by the former director of the
Governors Council on Disabilities and Special Education to
advocate for more federal transit dollars. He reported that
one of the frequent questions the Alaska delegation asked
had been how much the state contributed for the service -
it had been zero. He subsequently began advocating for the
state to contribute funding resulting in federal match
funding that grew rapidly. The funding enabled small
communities to receive community transport funding. He
spoke in support of transit services for seniors and
individuals with disabilities. He appreciated the item in
the budget.
2:03:54 PM
SUSAN LANG, VOLUNTEER COORDINATOR, FRIENDS OF THE JESSE LEE
HOME, LOWELL POINT (via teleconference), spoke in support
of the Jesse Lee Home. She provided information about the
groups of volunteers that worked on the home, which
included two groups from Outward Bound in Colorado. She
related that her organization had a contract with the City
of Seward to take possession of the home on August 30,
2019. She indicated that despite the existing agreement,
the city applied for funds to tear down the building. The
home had served as an educational institution that included
Alaska natives. The home was home to Ephraim Kalmakoff,
winner of the Mt Marathon race in 1928 and Peter Gordon
Gould who was an Unangax from the village of Unga that
founded the Alaska Pacific University among other very
successful alumni. She intreated for the survival of the
home.
2:06:33 PM
MARIAN CHARLES, MEMBER, WILLOW LIBRARY ASSOCIATION, WILLOW
(via teleconference), asked for support of the Willow
Library replacement and upgrade project. The association
requested funding from money that was reappropriated from
the Talkeetna Library Fund and additional state General
Funds (GF). The associations volunteer board had secured
almost 65 percent of the $5.7 million project. She
delineated that the library was connected to the community
center and would double in size. She discussed the uses of
the funding for items like upgrading the sprinkler system
and insulation. She indicated that $1.7 million came from a
grant from the Mat-Su Health Foundation and $1.9 million
from the borough. A contribution from the state could be a
tipping point for the project. She shared that they had
submitted grants to several oil companies and had been in
discussions with the Rasmussen Foundation and Foraker
Group. She emphasized that the community of Willow strongly
supported the project. She spoke to other community
fundraising efforts. She reported that the request had been
submitted to the CAPSIS system.
Co-Chair Wilson asked for the ratio of funding between
library replacement and upgrades to the community center.
Ms. Charles answered it was approximately 25 percent for
the community center and 75 percent for the library. Co-
Chair Wilson asked if the project was about $2 million
short of full funding. Ms. Charles responded in the
affirmative.
2:11:00 PM
IRIS DARLING, SELF, SEWARD (via teleconference), testified
in support of the language change related to the Jesse Lee
Home. She mentioned the broad community support for the
building and significant amount of local effort to restore
the facility. She emphasized that once a historic facility
was destroyed it was gone forever. She was not in favor of
the destruction of the home. She indicated that the project
was reinvigorated and was on the way to full restoration.
She shared that her father was one of the community's
founding fathers. She wanted to continue the efforts to
preserve the historic structure.
2:13:07 PM
BRIAN OKONEK, SELF, TALKEETNA (via teleconference), spoke
against the proposed Denali Visitor Center facility. He
reiterated the earlier testifiers claims that the plan was
changed without notice or public input. He stated that
there was controversy over whether the plan would meet the
need of the public and the park. He believed that state
parks in general needed more support from the state to
provide for management, maintenance, and staffing needs. He
thought spending $25 million on the center would be totally
inappropriate at present due to the states budgetary
concerns. The management plans had never stipulated how the
state would gain revenue from the facility.
Co-Chair Wilson asked about the location change for the
facility. She asked if the hearings had included the
location in one place and there had been no additional
public testimony once the new site had been announced. Mr.
Okonek answered in the affirmative. He explained that the
public had been told the change was insignificant and it
was only being moved one mile. He countered that the change
was significant. The plan moved the project to an
environmentally sensitive area that was not zoned to
support the type of development.
Co-Chair Wilson noted there was currently $2.5 million in
the project for design. She believed that the project
should go back to the drawing board and include public
input.
Co-Chair Wilson CLOSED public testimony.
Co-Chair Wilson asked members to provide amendments to her
office as soon as possible by the following Monday. Further
committee discussion ensued regarding the amendment
deadline.
ADJOURNMENT
2:18:46 PM
The meeting was adjourned at 2:18 p.m.
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