Legislature(2003 - 2004)
03/04/2004 09:02 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 04, 2004
9:02 AM
TAPES
SFC-04 # 30, Side A
SFC 04 # 30, Side B
SFC 04 # 31, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:02 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: DEB DAVIDSON, Staff to Co-Chair Green; JANET
CLARKE, Director, Division of Administrative Services, Department
of Health and Social Services; PETE KELLY, former Senator, and
Director, State Relations, University of Alaska; LINDA PEREZ,
Administrative Director, Division of Administrative Services,
Office of the Governor; DAN SPENCER, Director, Division of
Administrative Services, Department of Public Safety; MIKE MAHER,
Director, Division of Information and Administrative Services,
Department of Environmental Conservation; DAN EASTON, Director,
Division of Water, Department of Environmental Conservation; LARRY
DIETRICK, Director, Division of Spill Prevention and Response,
Department of Environmental Conservation;
Attending via Teleconference: From an offnet location: PAT PITNEY,
Director of Budget Development and Institutional Planning,
University of Alaska
SUMMARY INFORMATION
SB 1-INCREASE AMT OF BASE STUDENT ALLOCATION
The Committee adopted an amendment. The bill was held in Committee.
SB 35-APPROPRIATIONS: K-12, UNIVERSITY, CBRF
The Committee adopted a committee substitute and reported the bill
from Committee.
SB 257-APPROP: CAPITAL PROJECTS
The Committee heard presentations from the Department of Health and
Social Services, the University of Alaska, the Office of the
Governor, the Department of Public Safety and the Department of
Environmental Conservation on their budget requests. The bill was
held in Committee.
Co-Chair Green recommended Committee members begin budget
subcommittee work.
Senator Bunde asked the timeframe for presenting subcommittee
budget closeouts to the full Committee.
Co-Chair Green stated she would provide that information, noting
that scheduling adjustments were necessary due to the Legislature's
commitment to address Alaska Permanent Fund matters the week of
March 15.
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 1
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing
for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill "increases the student dollar in
our base student allocation in our foundation formula." He
remarked, "all of us have heard the school bell; it's rung" and
that that this legislation is the start of addressing the need of
adequate funding for education.
AMENDMENT #1: This amendment increases the base student allocation
from the existing $4,169 currently provided in AS.14.17.470 and the
$4,263 amount proposed in the bill, to $4,576.
Co-Chair Green moved for adoption and commented that although she
supports this legislation, this amendment would be an improvement.
AT EASE 9:05 AM / 9:06 AM
Co-Chair Wilken objected for an explanation.
Co-Chair Green noted this amendment would increase the base student
allocation, and result in an approximately $82 million increase to
the foundation funding formula distributed across the state over
the FY 04 budget year.
Senator Bunde asked the increase per student over the current
funding amount.
Co-Chair Green replied $407.
Senator Bunde asked the reason for this amount of increase.
Co-Chair Green relayed concerns expressed regarding funding for
each school district, along with the unanticipated increased costs
of the Public Employees Retirement System (PERS) and the Teachers
Retirement System (TRS) and increased insurance expenses of up to
ten percent, which the school districts could not control. She
shared that she has received comments from some districts that she
has never before heard from, that despite efforts to control costs,
increased funding for these expenses are necessary. She informed
that this funding increase would allow districts to budget for the
next two years.
Senator Bunde remarked that his was "well aware" of the PERS/TRS
"problem" but expected it should be funded separately rather than
"lock it in" to the base student allocation. He supported utilizing
the earnings reserve fund for these expenses. He also noted that
although this increase would eliminate the budget deficit of the
Anchorage School District, it would also increase the allowable
local contribution. He characterized this proposal as "good
news/bad news."
Co-Chair Green hoped that most of the districts that have requested
the legislature solve the funding problem understand that this
proposed increase would increase the local funding limits and allow
districts to increase local contributions. She remarked that this
would allow community members to "participate" in the fiscal
situation of their school districts. She also expressed that no
funding increases would be requested the following year, given the
total increase of the foundation funding formula and funds
generated locally. She predicted this increase would address the
PERS/TRS situation for one to two years, although she understood
that a multiple year solution of five to twenty years would be
required. She remarked that this increase should convey that the
legislature is accepting responsibility and that local government
taxpayers and citizens should also accept responsibility.
Senator Bunde pointed out that 24 districts would not provide
increased local contributions because they make no contributions
currently.
Co-Chair Wilken commented that some school districts do not
contribute to the education expenses in their community and
therefore those districts would not receive increased local
funding.
Senator Hoffman asked if the intention is that the PERS/TRS
expenses would be addressed within the base student allocation
funding, and whether this funding would be sufficient according to
school districts' estimates. He understood from meetings with some
school district representatives that this funding plus an
additional one-time allocation is necessary.
Co-Chair Green shared that the funds indicated by district
representatives as necessary for the PERS/TRS and other increases
would be provided for in the amendment. She predicted that these
funds would be adequate for most of the larger school districts but
qualified that some smaller districts could have an anomaly and
require a different solution. She stated that this amendment would
provide funding necessary for the PERS/TRS increased expense in
those districts she addressed.
Senator Hoffman pointed out this funding increase would be
statutory and does not address the operating budget. He asked how
this proposal compares to Governor Murkowski's budget request and
his plans, noting that the Governor has announced he would support
a draw from the CBR of no more than $400 million for FY 05 and that
the legislature must generate an additional $200 million in
revenue, while this amendment would increase the budget $82
million. Senator Hoffman asked if the intent would be that the
legislature would increase the amount of revenue generated to $282
million, or reduce other appropriations to accommodate this
increase. He recalled the Governor's comments to the Conference of
Alaskans emphasizing his adamancy about dramatic budget reductions.
Senator Hoffman asked Co-Chair Green if the intent is to meet the
Governor's expectation of withdrawing no more than $400 from the
CBR.
Co-Chair Green replied that this amendment this is the first
portion of the budget process and represents an $88 million
increase for education. She anticipated that the Governor would
support this funding increase because he supports education; she
anticipated "great cooperation".
Senator Hoffman supported the concept of this amendment; however he
countered that the Governor also supports operating government
without withdrawals from the CBR. He pointed out that the governor
has a "red pen" i.e. authority to exercise the line item veto on
appropriation legislation and has the final say unless the
legislature overrides the veto with a three-quarters majority vote.
Senator Hoffman remarked this is a high standard. He emphasized
that he supports education funding but needed assurance from Co-
Chair Green that the governor would also support an increased
budget and not exercise the line item veto authority to limit the
CBR draw to $400 million.
Co-Chair Green reiterated this is the first portion of the budget
process and that more would be known in the coming weeks. She
informed that she has been in discussions with the Governor.
Senator Hoffman asked if Governor Murkowski exercised the line item
veto, whether the legislature would "take a stance" and override
those vetoes.
Senator Hoffman agreed with this increased funding for education
and that it should be appropriated before the end of the
legislative session, provided that the Senate Minority's goal to
spend monies from the CBR as a last option is achieved.
Senator Bunde noted he has heard this amendment would cost $82
million and also $88 million and asked the correct amount.
Co-Chair Wilken stated that the cost of SB 1, as amended would be
$82 million.
Co-Chair Wilken removed his objection and the amendment was
ADOPTED.
Co-Chair Wilken noted those present to testify to this bill.
Co-Chair Wilken ordered the bill HELD in Committee.
AT EASE 9:23 AM / 9:23 AM
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 35
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken noted this legislation, sponsored by the Senate
Rules Committee at the request of the Governor, proposes the FY 04
operating budget and was first heard in the Senate Finance
Committee on April 14, 2003. He noted the distribution to members
of a proposed committee substitute, Version "U".
Senator Hoffman distributed a legal opinion issued by Tamara Cook,
Director of the Division of Legal and Research Services, dated
March 3, 2004, relating to the principles of the Public Meetings
Act, specifically to adequate notice of hearings on legislation.
Senator Hoffman commented to the importance to the public to know
which legislation would be heard in a committee. He understood that
a bill could be brought before a committee without advance notice
if that bill had been previously noticed for a hearing; however, he
remarked it is unreasonable to expect the public to adequately
track each bill that has had a previous hearing.
Senator Hoffman was unaware that this bill would be brought up
until late the previous night and cited the last paragraph of the
aforementioned memorandum as follows.
The Select Committee on Legislative Ethics is charged with
determining how the legislative ethics statutes, including AS
24.60.037, apply to certain fact situations. (AS 24.60.160) I,
frankly, have no idea whether any subject matter notice of a
meeting is required under AS 24.60.037 or, if it is, whether
the notice provided in the situation you describe is
inadequate for purposes of adhering to open meetings
principles. In any case, advice I might give is not binding on
the Select Committee. (AS 24.60.158)
Senator Hoffman stated that as a layperson, he was unsure that
consideration of this bill would meet the requirements of the Open
Meetings Act, so he therefore requested a determination by the
Select Committee on Legislative Ethics. He therefore requested that
no action be taken on this legislation until adequate notice has
been provided.
Co-Chair Green moved to adopt CS SB 35, 23-GS1002\U, as a working
document.
Co-Chair Wilken objected for an explanation.
Co-Chair Green explained this committee substitute provides an
increase to the education foundation funding formula.
AT EASE 9:28 AM / 9:28 AM
DEB DAVIDSON, Staff to Co-Chair Green, detailed that the committee
substitute appropriates funds for K-12 education and the University
of Alaska in the amount requested by Governor Murkowski in his
proposed FY 04 budget. She furthered that Section 3 of the
committee substitute contains standard language to transfer funds
from the Constitutional Budget Reserve (CBR) fund. Section 4, she
concluded, provides language stipulating that contingent upon
approval of access to the CBR with a three-quarter-majority vote of
both bodies of the legislation; an additional appropriation could
be made to K-12 education and the University of Alaska.
Senator Bunde asked the amount of funding for FY 04 requested by
the Governor.
Ms. Davidson replied that the allocations provided in Sections 1
and 2 for K-12 education and the University of Alaska are the
amounts requested by the governor based on the current foundation
funding formula.
Senator Bunde identified the $82 million referenced earlier and
asked if $5.8 million was the intended appropriation for the
University of Alaska.
Ms. Davidson affirmed.
Senator Bunde asked the reason for this amount.
Co-Chair Green responded this funding is intended to offset
increased University expenditures for the Public Employees
Retirement System (PERS) and the Teachers Retirement System (TRS).
Senator Bunde asked if the PERS/TRS cost to the University is $5.8
million.
Co-Chair Green answered the cost is higher, and that this
appropriation would provide a portion of the necessary funds.
Senator Bunde commented that this appropriation would not fund the
entire amount, despite the challenge to raise the remaining funds
necessary.
Co-Chair Green replied that certain employees of the University
might not be included in the PERS/TRS programs, and instead hold
federally funded or grant funded positions.
Senator Hoffman requested an explanation of Section 4 of the
proposed committee substitute.
Ms. Davidson explained that the provision of Section 4 is
contingent upon the approval of this bill by a three-quarter vote
of the legislature. She furthered that the amount of money
appropriated in this section occurs only upon legislative approval
to access funds from the CBR.
Senator Hoffman asked if only $82 million would be withdrawn from
the CBR.
Ms. Davidson could not say the exact amount that would be
appropriated from the CBR. She noted that the CBR draw would be the
difference in the total amount appropriated in the FY 05 budget and
the amount of revenues received. She stated that if the difference
is larger than $82 million, the full amount might be withdrawn from
the CBR, but if the budget gap were smaller, less would be required
from the CBR.
Senator Hoffman reiterated his comments in support of the committee
substitute to SB 1, but cautioned against spending from the State's
savings account before having a complete understanding of the total
financial position. He stated that spending from the general fund
is better policy. He noted that the legislature would be addressing
the operating budget over the next few months and recommended that
decisions on this matter be delayed for a few days for further
review.
Senator Olson remarked that the matter in which this committee
substitute is presented is uncommon. He pointed out that Section 5
provides that authority to withdraw funds for the increased
education appropriation from the CBR would be retroactive to July
1, 2003. He noted this would affect two budget cycles, although the
time period to consider this action is limited.
Co-Chair Wilken affirmed.
Senator Olson found this "highly unusual".
Co-Chair Wilken removed his objection and the committee substitute
was ADOPTED.
Co-Chair Green remarked that the public is "fully aware" of the
dynamics of funding budgets each year. She expressed intent to pass
a budget that "fully funds [education] very early". She disputed
Senator Hoffman's comments regarding spending from the State's
savings account first. She cited Ms. Davidson's testimony that
revenue in relation to expenses is considered first. She informed
that currently the amount of revenue generated is strong and if it
continues to increase, further discussion of an "ominous draw" from
the CBR would not be an issue. She noted that economists and
revenue forecasts predict continued revenue increases, which would
provide adequate funds to fully fund the education increase. She
spoke to the need to "hold down" special interest requests that
would impact the CBR. She stressed that if funds were withdrawn
from the CBR they should be for education expenses. She stated this
is the reason for the provisions in the committee substitute. She
expected that school districts would be appreciative of this
legislation after many years of requests. She suggested that if
some Committee members require additional time to consider this
proposal, they have not been listening to the needs of districts
for several years.
Senator B. Stevens supported modification of SB 1 and he supported
an appropriation bill that provides for the funding increase for K-
12 education. He remarked that this concept "puts forward" the
priority of the twenty-third legislature, which is Kindergarten
through University of Alaska education. He was willing to commit up
to 42 percent of the budget "up front" to education to allow
educators to "know their budget" and to eliminate the question of
whether adequate funding is available for the increased base
student allocation. He accessed that adequate funding would be
available in the State budget to fund this increase in FY 05 and
future years. He pointed out that multiple funding sources are
available to the legislature to appropriate. He reiterated that
increased funding for education is "priority number one" and once
addressed would allow consideration of other matters.
Senator Hoffman "wholeheartedly" agreed, funding education makes
good public policy; however, he stressed that general funds should
be used. He questioned a proposal to utilize CBR funds when
general funds were available. He suggested that if increased
education funding is the number one priority, then it should be
funded from the general fund with only a simply majority vote of
the legislature, rather than from the CBR, which requires a three-
quarter majority vote of the legislature to authorize. He announced
he would likely vote in favor of this bill, but against the motion
relating to the effective date. He indicated he would then
reconsider the proposal after the bill passed the House of
Representatives and was before the Senate again.
Senator Hoffman recalled the initial legislation that established
the CBR account, noting he served as chair of the House Finance
Committee when it was debated and was therefore informed on the
subject. He stressed the intent that the CBR be utilized as a
savings account only after all aspects of the budget are
considered, including public safety and health care appropriations.
Senator Olson also supported increased funding for education but
found the proposal to appropriate from CBR objectionable. He
acknowledged that the public might be aware of the budgetary
process, but pointed out that not permitting public testimony on
the matter prevents the legislature from being fully aware of the
situation.
Senator Bunde relayed discussions he has had with school board
representatives in which he learned that districts are required to
issue "pink slips" to staff and employees if adequate funding for
positions is in question. He stressed the benefit of providing
assurance of this funding as soon as possible.
Senator Bunde continued that the oil and revenue forecasts
predicting the future of the CBR have always been incorrect. He
doubted that an annual budget would not require funding from the
CBR, and therefore argued that the issue of granting access to
withdraw funds from the CBR is irrelevant.
Senator B. Stevens pointed out this legislation does not specify an
amount that would be withdrawn from the CBR, but rather provides
for a withdrawal of the amount necessary.
Co-Chair Green offered a motion to report CS SB 35, 23-GS1002\U
from Committee with individual recommendations.
Senator Hoffman objected and spoke to the Public Meetings Act. He
charged that adequate public notice was not provided and asked why
action could not be delayed until the following Monday.
Co-Chair Wilken noted the original version of SB 35 was the
proposed FY 04 operating budget, and that this committee substitute
is a simple appropriation that does not require several days to
understand. He stressed the importance to expedite the legislation
and assured that opportunity would be available to further consider
the legislation.
Senator Dyson commented that he prefers a significant amount of
time to consider matters, but was satisfied that the education
funding increase is near the amount the Governor has proposed for
education funding and therefore did not require additional time to
review the legislation. He added that he considers amendments
offered on the Senate floor to be questionable in their adherence
to the public notice provisions of the Public Meetings Act, given
that Senators are provided no time to consider the implications. He
surmised that the offering of this committee substitute is not a
unique practice.
SFC 04 # 30, Side B 09:50 AM
Co-Chair Wilken asked if Senator Dyson was speaking to the motion
to report the bill from Committee.
Senator Dyson replied that he was speaking to the objection to the
motion. He informed that he tried to attend and participate in a
Minority Caucus meeting that had been publicly noticed, but was
asked to leave.
Co-Chair Wilken directed the Members to cease commenting on the
Open Meetings Act.
Co-Chair Green told of "endless" correspondence relaying "pleas"
from many organizations representing education and children. She
remarked that this legislation represents the requests and would
allow districts to plan their budget year.
Senator Hoffman removed his objection citing his earlier comments.
Senator Olson pointed out that Section 3 of the bill does not
specify the amount that would be withdrawn from the CBR and
expressed his apprehension of "signing a blank check".
Co-Chair Wilken commented this Committee has "heard the school
bell; it's been rung." He continued," This legislation is the way
that we can answer the call.
There was no objection and CS SB 35 (FIN) MOVED from Committee.
AT EASE 9:53 AM / 9:55 AM
SENATE BILL NO. 257
"An Act making capital appropriations and supplemental
appropriations; capitalizing funds; making other
appropriations; making appropriations under art. IX, sec.
17(c), Constitution of the State of Alaska; and providing for
an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
The Committee continued hearing overviews of capital budget
requests.
Department of Health and Social Services
Emergency Medical Services Ambulances and Equipment Statewide-
Match for Code Blue Project
$325,000 ASLC Dividend
Reference No.: 33797
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
The request will provide funding to match federal dollars and
other funding to purchase ambulances and other emergency
medical equipment needed in rural Alaskan communities.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services,
AT EASE 9:56 AM / 9:56 AM
Ms. Clarke noted that extensive information about this program has
been provided to the Committee in the past. She reminded that this
funding would be utilized to purchase lifesaving equipment for
volunteers.
Senator Dyson asked if the Department of Transportation and Public
Facilities owned these vehicles.
Ms. Clarke answered no. She described the grant program in which
local governments or volunteer emergency organizations have
ownership of the vehicles.
E-Grants
$204,000
$67,300 Federal Receipts
136,700 G/F Match
Reference No.: 39148
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
Phased Project - New
Design and build an automated system for the management of all
aspects of grant administration, including on-line grant
application, award and reporting.
Ms. Clarke indicated she had provided members with detailed
information outlining the intended use of this appropriation [copy
on file.]
Ms. Clarke informed that the Department provides over $165 million
in grants to local non-profit organizations, which is a "very paper
intensive" process. She told of funding that would be requested for
FY 06 to complete this project.
Co-Chair Wilken asked whether this project is modeled after other
states.
Ms. Clarke replied that the Department surveyed other states and
found that many have not undertaken these efforts. She reported
that the Department has been reviewing those that have implemented
an automated system and that sufficient information is available on
the procedures and software programs employed.
Denali Commission Grants for Non-Primary Care Facility
Improvements
$10,000,000 Federal Receipts
Reference No.: 39823
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
This request will provide funding for rural hospitals,
behavioral health facilities and assisted living homes for
planning, design, medical equipment, and construction. This
request consists of federal funds that are granted to the
Department of Health and Social Services from the Denali
Commission.
Ms. Clarke informed that the Denali Commission requested that the
Department administer approximately $3.5 million granted to
hospitals across the State, as the Denali Commission was unprepared
to interact directly with hospitals. The Denali Commission, she
stated, therefore requested to "tap into" the Department's grant
administration infrastructure. She noted that the Denali Commission
has agreed that a portion of the $10 million could be utilized to
fund an additional staff position within the grant management
section.
Co-Chair Green asked whether utilizing a State agency to administer
federal grants and subsequently receive a percentage of the grant
funding, is a new concept in state government. She asked how this
program would evolve, expressing concern that if the grants were
discontinued, whether the Department would be forced to eliminate
the federally funded position.
Ms. Clarke replied that the funding source for this staff position
is categorized as CIP receipts, and that the intent is to maintain
a core staff within the agency that could be funded with capital
funds. She assured that the Department avoids over-staffing, and
that in the event of a reduction in capital infrastructure
development, staff holding certain positions are aware that their
positions would be eliminated.
Co-Chair Green acknowledged this is the "factual side", but that
reality is different. She exampled other pilot projects in which
federal funding was used to establish a program, but were not
provided to continue the services. In these instances, she
contended that the State is "seen as the bad guy" when the
legislature does not appropriate State funds. She cautioned against
allowing this to occur with this proposal. She recognized a
division between the State and the Denali Commission, acknowledging
that the efforts of the Denali Commission have received acclaim,
but are not included in the State budget. She wanted to insure
against interdependency.
Co-Chair Wilken furthered that many items in the State budget rely
on "outside money" and that programs remain even if those funds are
no longer available. He agreed that if this proposal is a pilot
project, it should be ensured that federal funding would continue
once the program is established.
Senator Olson noted the project description for this item indicates
the Department intends to utilize up to two-percent of the funds
for administrative costs associated with administering the grants.
He asked the percentage of the funds that would be utilized for
hospital and non-primary care facilities.
Ms. Clarke replied that the amount would be the difference between
the $10 million appropriation and the two percent withheld for
administrative expenses.
Senator Olson calculated the amount differently.
Ms. Clarke responded that two percent is an estimate negotiated
with the Denali Commission and that the difference is likely a
"rounding issue".
Replacement of the Public Health Center and Pioneers' Home
Telephone Systems
$206,400
$21,400 Federal Receipts
185,000 G/F Match
Reference No.: 37964
Category: Health/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
One-Time Project
The phone systems in the Fairbanks, Mat-Su and Interior Health
Centers and the Sitka, Ketchikan and Juneau Pioneers' Homes
are over 10 years old and in need of replacement. These
facilities are pubic facilities that provide vital medical
services and residential services. These facilities need to
have reliable phone service in order to serve the public and
their clients on a daily basis. This request provides funding
to replace the aging phone systems in six facilities.
Ms. Clarke informed that when the Department began planning to
implement telemedicine systems, they were directed to delay
purchase of new phone systems. She emphasized the dependence of
these facilities on phone systems.
Juneau Family Birth Center Land Purchase
$150,000 ASLC Dividend
Reference No.: 39287
Category: Health/Human Services
Location: Juneau Areawide
Election District: Juneau Areawide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
This request will provide grant funds directly to the Juneau
Family Birth Center to purchase land for construction of a new
community family center in Juneau.
Ms. Clarke directed attention to an aerial photograph showing the
land in question [not provided]. She stated it was deemed important
that this project have State investment given other partners the
Center is seeking and the design of the project. She assured
Senator Dyson that this facility does not perform abortions. She
also noted that 80 percent of the facility's revenue is generated
from billings with the remainder received in grants.
Co-Chair Wilken pointed out that this appropriation is necessary to
secure additional funding from the Rasmussen Foundation and the
Murdock Foundation. He asked whether this appropriation is "good
faith money".
Ms. Clarke affirmed.
Mental Health - Deferred Maintenance and Accessibility
Improvements
$400,000 Mental Health Trust Authority Authorized Receipts
(MHTAAR)
Reference No.: 33670
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
This program makes capital funds available on a competitive
basis to Mental Health Trust service provider agencies for
deferred maintenance and accessibility improvements for
program facilities.
Ms. Clarke reminded that this item has been included in the capital
budget for several years.
Mental Health - Essential Program Equipment Grants to Service
Providers
$350,000 MHTAAR
Reference No.: 33672
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
The request will provide capital equipment grants through
competitive RFP [request for proposals] process for agencies
providing services, activities and programs for Mental Health
Trust beneficiaries. Priority would be made to fund providers
who do not have the minimum of computer equipment to be able
to adequately mange the new Alaska Automated Information
Management System for behavioral health.
Ms. Clarke noted this item has also been included in the capital
budget for many years. She told of the requests received by senior
citizens and disabled for these grants.
Mental Health - Van/Vehicle and Housing Modifications for
Families or Individuals
$300,000 MHTAAR
Reference No.: 33671
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
This project provides housing and vehicle modification funds
for people with special needs. Vehicle modification funds are
for individual with developmental disabilities or special
needs for their families for modifications to make their
vehicles accessible.
Ms. Clarke stated this special appropriation is not related to the
Department of Transportation and Public Facilities special
transportation coordination program. Rather, she explained program
is directed to undertaking vehicle modifications for those with
special disabilities along with housing modifications. She stated
these efforts allow the recipients to remain in their homes and
subsequently provide the Department "a lot of bang for the buck."
Senator Hoffman requested a list of communities that have received
these funds and the specific years of the allocations.
Ms. Clarke pointed out that this budget request shows anticipated
State general fund and mental health matching funds of $300,000 for
the years of FY 05 through FY 10. However, she noted that the full
amount has not always been appropriated in the past. She responded
to Senator Olson's request informing a bi-annual list has been
maintained, but not an annual list.
Mental Health - Transitional Housing
$500,000 MHTAAR
Reference No.: 38368
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
The project will fund capital construction costs to build
services enriched transitional housing for individuals
recovering from substance abuse disorders.
Ms. Clarke explained this funding would be used on a thorough
competitive basis for nonprofit organizations to provide
transitional housing. She informed that some form of transitional
housing is necessary for recovery of some patients. She stated that
the Mental Health Trust Authority supports this use of funds.
Mental Health - Fairbanks Detoxification Unit Expansion and
Renovation
$1,450,000 Federal Mental Health Funds
Reference No.: AMD38366
Category: Health/Human Services
Location: Fairbanks (Fairbanks/Fort Wainwright)
Election District: Fairbanks/Fort Wainwright
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
This project will provide capital funding to expand
detoxification services in the Fairbanks area to those unable
to obtain medical detoxification services due to the current
limited capacity. This population is largely composed of
Mental Health Trust beneficiaries under the Chronic Alcoholism
with Psychosis criteria.
Ms. Clarke informed that the amendment to this project would
require a title change to the project description. She
characterized this as a federal project utilizing Denali Commission
funding. She stated this proposal would utilize funding
appropriated the previous year for consideration of a new facility.
Mental Health - Treatment-Based Special Needs Housing Program
$400,000
$250,000 Alaska Housing Finance Corporation (AHFC)
Dividend
150,000 MHTAAR
Reference No.: 37901
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
The Department of Health and Social Services program provides
funding to develop special needs housing for Trust
beneficiaries that cannot be funded under AHFC because of
statutory limitations.
Ms. Clarke explained that the AHFC is statutorily unable to fund
these projects directly because of treatment programs operated
within the facilities.
Mental Health - Consumer Designed and Managed Projects
$250,000 MHTAAR
Reference No.: 34042
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
Proposals request funds to plan or carry out consumer-run
facility and community projects.
Ms. Clarke gave as an example the program operated at the Polaris
House and Ionia, Inc. in which participants learn to determine
appropriate mental health treatment. She indicated she has
photographs showing the success of this program, which she could
provide if requested.
Senator Hoffman asked the communities where these facilities are
located.
Ms. Clarke responded Ionia Inc. is located in Kasilof and the
Polaris House is located in Juneau and that she would provide
information on other locations.
Mental Health - Medicaid Review and Enhancement Project
$300,000 MHTAAR
Reference No.: 39033
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
Medicaid Review and Enhancement Project for all four
beneficiary groups. Approximately 50% of the funding will be
limited to the Division of Senior and Disability Services.
Ms. Clarke read a portion of the project description justification
language as follows.
This project will explore, develop, and implement ways to use
Medicaid to fund new services or maximize resources for
existing services to underserved beneficiaries.
Ms. Clarke emphasized any recommendations would have to comply with
the cost containment directive from the legislature.
Mental Health - Provider Resource Sharing and Coordination
$150,000 MHTAAR
Reference No.: 34039
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
Fund will be used to pilot recommendations at the local or
regional provider level and provide resources to make changes
at the State level (i.e. regulatory changes).
Ms. Clarke stated the intent of this item is to investigate methods
to engineer and re-engineer the delivery of services and
coordination between nonprofit organizations.
Mental Health - Update Issues Affecting Economic Well-Being of
Alaska Seniors
$30,000 MHTAAR
Reference No.: 39029
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
This request will fund a study that will determine the impact
of a reduction in senior income and the resulting effect on
the safety net to provide senior services.
Ms. Clarke explained this project would update a report undertaken
a few years prior.
University of Alaska
PAT PITNEY, Director of Budget Development and Institutional
Planning, University of Alaska, testified via teleconference from
an offnet location and referenced the publication titled "Fiscal
Year 2005 Operating & Capital Budget Requests, Executive Summary"
[copy on file], which she stated represents the Board of Regents'
budget proposal.
It was determined that Committee Members would identify project
requests they wished to have overviewed.
Co-Chair Wilken asked if the projects were listed in the
publication in priority order.
Ms. Pitney affirmed.
Integrated Science Facility
UAA, Anchorage
State Appropriation: $13,600,000
Total Project Cost (FY 05-10): $46,400,000
Ms. Pitney informed that this project is the Board's highest
priority. She reported that the first phase was funded through
bonds approved by voters in the general election of two years
prior. She said the funds requested for the next phase would
provide necessary classrooms vital to health and science courses
and classroom laboratories. She noted that current activities are
"very constrained". She stated that the estimated total project
cost increased to $70 million with $46.4 million remaining. She
noted the original cost estimate was $54.8 million
PETE KELLY, former Senator, and Director, State Relations,
University of Alaska, added that $8.4 million has already been
appropriated from the general obligation bonds approved by voters
two years prior. He relayed these funds could be utilized for some
planning and construction expenses.
Senator B. Stevens commented this was the first he heard of
increase cost of the project, and asked the reason.
Ms. Pitney replied that the increased costs were identified as the
planning process progressed. She noted that the Board of Regents
only recently approved the increase.
Senator B. Stevens pointed out the increase is almost 30 percent
and he requested an itemized presentation of the changes. He asked
when the original cost estimates were calculated.
Co-Chair Kelly responded that design changes are necessary to
accommodate a larger influx of students than anticipated three
years ago. He also noted constructions costs in the State have
increased substantially.
Co-Chair Wilken requested a further outline of this project.
Replacement of Research Vessel
$80,000 Federal Receipts
Reference No.: 38921
Category: University
Location: Juneau Areawide
Election District: Juneau Areawide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
The request is for federal receipt authority for a federal
appropriation to replace the Alpha Helix Research Vessel.
Senator Dyson asked the source of the federal funding.
Ms. Pitney answered the funds would be appropriated from the
National Oceanic and Atmospheric Administration (NOAA). She added
that the University of Alaska would become the administrator and
manager of the ship. She told of the use of the ship by NOAA and
the process in which the University serves as the agent of the
ship.
Senator Dyson asked if the University of Alaska becomes the owner
of the ship.
Ms. Pitney affirmed and noted the University conducts research
utilizing the vessel as well.
Senator Dyson asked when the ship would be commissioned.
Ms. Pitney replied it would be commissioned three years from now.
Senator Dyson commented that the research vessel program has
undertaken "wonderful projects". He requested specifications and
preliminary drawings and the plans for manning the new vessel, as
well as the plans for the current ship once it is replaced. He also
asked where the new vessel would be home ported.
Ms. Pitney replied the new vessel would be home ported in Seward,
noting that the existing dock must be modified to accommodate the
new vessel.
Senator Dyson understood that the use of federal funds for State
vessels often contains provisions to allow the vessel to be used
during a state of emergency. He asked if this provision is included
in this project as well.
Office of the Governor
National and International Marketing and Development of Alaska
Resources and Products
$1,000,000 AHFC Dividend
Reference No.: 39284
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
One-Time Project
Promotions, research and development of Alaska's resources and
products including oil and gas.
LINDA PEREZ, Administrative Director, Division of Administrative
Services, Office of the Governor, reminded that $1.02 million was
appropriated in 1997 for this purpose, and that a balance of
$113,000 remains. She informed that the intent is to "replenish
this fund to support the Governor's priorities to expand and
develop Alaska's resources".
Co-Chair Wilken asked if a business plan indicating how these funds
would be spent has been developed.
Ms. Perez replied one has not been developed but offered to provide
a history of past expenditures.
Senator B. Stevens requested a breakdown of the resources and
markets that would be targeted.
Ms. Perez stated she would provide this information.
Arctic National Wildlife Refuge Oil and Gas Development
$500,000 ASLC Dividend
Reference No.: 39283
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
Advocate the state's interest in opening the Arctic National
Wildlife Refuge to oil and gas development.
Ms. Perez reported that a fund intended to promote ANWAR
development was established in 1993 and this request is to
replenish the account, given that efforts are still underway.
Pacific Coastal Salmon Recovery Fund
$20,868,000 Federal Receipts
Reference No.: AMD33647
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2008
On-Going Project
Federal fiscal year 2004 (FFY04) appropriations legislation
contains funding for the Pacific Coastal Salmon Recovery Fund
(PCSRF). Coordination of individual state funding is through
the respective Governor's offices. The Alaska portion of the
FFY04 appropriation is $20.9 million. Funding comes to the
state through a Memorandum of Understanding with the U.S.
Department of Commerce designating the Alaska Department of
Fish and Game as the program manager.
Ms. Perez reminded that the Department of Fish and Game has
testified to this item.
Replace the Voter Registration and Election Management System
(VREMS)
$5,450,000 Election Fund
Reference No.: 39040
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
Phased Project - Underway
Replace the Voter Registration and Election Management System
(VREMS) and continue meeting the mandates of the Help America
Vote Act of 2002 (HAVA).
Co-Chair Wilken asked if this project would utilize the remainder
of the federal funds appropriated for the implementation of HAVA.
Ms. Perez answered it would not.
Co-Chair Wilken pointed out expenditures to date has been $14
million.
Americans with Disabilities Act Compliance Projects
$100,000 General Funds
Reference No.: 6391
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
This project continues the removal of physical barriers to
persons with disabilities within state-owned facilities as
required by Title II of the Americans with Disabilities Act,
Public Las 101-336. Funding covers the cost of design, project
administration, and construction. Aside from the legal
requirements, removal of physical barriers will negate the
need for temporary program modifications which are currently
required of the facilities' occupants. Office of Management
and Budget allocates available funding to the Department of
Transportation (DOT) for state facility ADA compliance
projects based upon DOT's prioritized project list. The
requested FY 2005 funds will continue work from the statewide
priority list.
Ms. Perez stated this funding has been included in the budget for
many years.
DELETE: Vessel and Aircraft Maintenance for ADF&G and DPS
$0
Reference No.: AMD39282
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
Original vessels and aircraft deferred maintenance funding
placeholder project of $899,600 is now split between the
Departments of Fish and Game and Public Safety and project
funding requested by those departments.
Ms. Perez explained the request was included in the original Office
of the Governor budget proposal.
Co-Chair Wilken commented this item has been overviewed in the
budget requests of other departments.
Department of Public Safety
Law Enforcement Equipment Replacement
$600,000 General Funds
Reference No.: 37774
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
Purchase of new and replacement law enforcement equipment used
by the Alaska State Troopers. The Division of Alaska State
Troopers which now includes the Alaska Bureau of Wildlife
Enforcement, rely upon capital improvement project funding for
those types of equipment purchases for day-to-day operations.
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, outlined this request.
Aircraft and Vessel Repair and Maintenance
$749,600 General Funds
Reference No.: AMD6121
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
The Department of Public Safety annually requests repair and
maintenance funds for the DPS aircraft and vessels. These
funds are for the repair, replacement and maintenance
requirements of this department's aircraft and vessel fleet.
For example, the funds will be used to rebuild vessel and
aircraft engines and components when they reach the limits of
safe useful life. Large marine diesel engines and aircraft
engines require expert vendors to rebuild them. Many other
components of vessels and aircraft must be maintained or
replaced routinely to ensure safe operating conditions and
comply with various safety regulations.
Mr. Spencer noted this request was originally included in the
Governor's proposed budgets for the Office of the Governor, the
Department of Fish and Game and the Department of Public Safety. He
outlined this annual project for keeping aircraft and vessels
operational and to meet Federal Aviation Administration (FAA)
standards.
Public Safety Aircraft, Vessel and Parts Sales
$572,900 General Fund/Program Receipts
Reference No.: AMD38439
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2008
One-Time Project
Sale of four aircraft and surplus aircraft parts and
accessories and thirteen vessels and surplus vessel parts and
accessories.
Mr. Spencer informed that this item is a companion to Reference
Number 6121, Aircraft and Vessel Repair and Maintenance. He
explained this item would allow the revenue from the sale of
aircraft and surplus parts to fund maintenance and repair of
retained equipment.
Firefighting Breathing Apparatus Replacement
$112,500 General Funds
Reference No.: 37785
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
Purchase 45 self contained breathing apparatus (SCBA) and
related equipment used to conduct basic and advanced fire
training at the three state operated regional training centers
in Anchorage, Fairbanks and Juneau. These new units are
necessary to comply with national equipment standards and OSHA
regulations.
Mr. Spencer reminded that one-half of the requested funds were
appropriated for this project the previous fiscal year. He stated
that due to the importance of this equipment the Department is
requesting the remaining funds in this budget.
Rural Trooper Housing Repairs and Renovation
$147,500 General Funds
Reference No.: 38995
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
The Department's Rural Trooper Housing program provides state
owned employee housing in rural Alaska locations where housing
is traditionally scarce. This project will fund repairs and
renovation of these state-owned units, all of which were built
30 years or more ago.
Mr. Spencer reported that 15 housing units are old and have not
been maintained. He warned of the expensive repair costs in rural
areas if pipes freeze and break.
Senator Dyson asked whether local craftspeople and contractors
would be employed to undertake these maintenance and repair
projects.
Mr. Spencer was unsure the residency of previous workers, but
assumed local contractors and laborers would be utilized because of
faster response times.
Senator Dyson asked if the contracts for these projects are subject
to labor agreements.
Mr. Spencer indicated he would research the matter.
Training Academy Handgun Range Repairs
$45,000 General Funds
Reference No.: 39000
Category: Public Protection
Location: Sitka
Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
This project funds needed repairs to the Department of Public
Safety Training Academy's handgun range.
Mr. Spencer reported that officers must undergo updated training
operations. He told of the bullet holes at the facility and the
necessity to shoot in certain directs to avoid those holes.
SFC 04 # 31, Side A 10:40 AM
Statewide Facilities Maintenance
$37,500 General Funds
Reference No.: 38976
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
Facilities Maintenance for DPS occupied, state-owned buildings
in 14 communities throughout Alaska.
Mr. Spencer commented on the insignificant amount of this request.
Additional Village Pubic Safety Officers for Rural Bootlegging
Prevention & Enforcement Activities
$2,000,000 Federal Receipts
Reference No.: ADM39352
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
Federal funding to hire and equip additional Village Public
Safety Officers to engage primarily in bootlegging prevention
and enforcement activities.
Mr. Spencer informed that up to ten-percent of this appropriation
would be retained by the Department for administrative expenses.
Co-Chair Wilken asked if the expectation is this program would be
ongoing.
Mr. Spencer was unsure.
Senator Bunde remarked that some federal grants for law enforcement
activities create an obligation for the State to continue funding
programs and positions. He asked if this is the case with this
grant.
Mr. Spencer was not aware that the State would be required to
assume financial responsibility in this instance.
Rural Law Enforcement Training and Equipment
$2,000,000 Federal Receipts
Reference No.: 38479
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
One-Time Project
The Department of Justice, Office of Community Oriented
Policing Services, is expected to award the Department of
Public Safety $2,000,000 to train law enforcement personnel in
rural locations to increase their ability to deal with crisis
situations and to purchase equipment for better responses to
emergencies.
Mr. Spencer noted this funding would allow rural law enforcement to
be as well equipped as possible.
Co-Chair Wilken asked if these efforts have always been funded with
federal appropriations.
Mr. Spencer answered yes.
Statewide Illegal Drug and Alcohol Use
$2,000,000 Federal Receipts
Reference No.: 38477
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2004 - 06/30/2006
One-Time Project
Rural Alaska continues to suffer serious, life threatening
effects from use of illicit drugs and alcohol. This federal
grant will allow the state to enhance the efforts of state
troopers, local law enforcement, and community policing teams
to reduce illicit drugs and alcohol. The use of these illicit
substances increases the prevalence of violent crimes such as
homicide, sexual assaults, robberies, burglaries, and serious
domestic violence assaults.
Mr. Spencer stated the State has received this grant funding for a
couple of years. He reported that bootlegging continues to be a big
issue in the Bush. He stated that the Department of Public Safety,
in conjunction with the Department of Law to dedicate a prosecutor
position as a member of the team addressing these matters.
Marine Fisheries Patrol Improvements
$1,080,300 Federal Receipts
Reference No.: 35825
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2004 - 06/30/2005
On-Going Project
The Alaska State Legislature urged the division to seek
additional funds for its patrol efforts in federal waters of
the North Pacific Ocean and Bering Sea. This project is a
result of lengthy negotiations with the National Marine
Fisheries Service. Federally regulated marine fisheries occur
on a year-round basis in the coastal and offshore waters of
the State of Alaska. Both the federal and state governments
share an interest in ensuring these fisheries are protected.
Mr. Spencer explained the federal funds are utilized to support the
costs of enforcement, noting that the Alaska Bureau of Wildlife
Enforcement addresses both State and federal matters.
Emergency Vehicle Operation Drivers Training Range
$650,000 Federal Receipts
Reference No.: 38998
Category: Public Protection
Location: Sitka
Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 10/01/2003 - 06/30/2006
One-Time Project
This project allows use of federal funds expected to be
available for planning and construction of an emergency
vehicle operation drivers training range at the Pubic Safety
Training Academy in Sitka.
Mr. Spencer expressed the intent is to acquire land adjacent to the
Academy and construct a driving course. He told of emergency
responses and the higher incidences of crashes due to the type of
driving required. He stressed the need to provide the best training
possible, adding that emergency workers in rural communities are
unable to practice high speed driving. He also shared that the
Department is attempting to secure federal funding to purchase a
simulator, but informed that simulators are not as effective for
training as actual driving.
AT EASE 10:45 AM / 10:46 AM
Department of Environmental Conservation
Co-Chair Wilken referenced a report issued by the Division of
Legislative Audit and a spreadsheet outlining the allocation of
funds to the Village Safe Water Program since 1985.
MIKE MAHER, Director, Division of Information and Administrative
Services, Department of Environmental Conservation, testified that
the budget request for FY 05 is reduced from the current year by
approximately $24 million and also contains no general funds. He
reminded that the previous budget was funded with AHFC Dividend
funds, noting that this request also includes ASLC Bond funds.
Village Safe Water Project Administration
$2,125,900
$ 531,500 AHFC Dividend
1,594,400 Federal Receipts
Reference No.: 33820
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
This proposed project provides funding for the operating costs
of the Village Safe Water Program. It contributes to the
agency's End Result 2 -- Citizens are Protected from Unsafe
Sanitary Practices. Drinking water and sewerage facilities
constructed with grant funds protect rural residents from
unsafe sanitary practices.
DAN EASTON, Director, Division of Water, Department of
Environmental Conservation, reminded that this program issues
grants to the State's smallest communities for water projects. He
pointed out the program utilizes 70 percent federal funding and
that the amount is the same as the previous year. He stated that
this funding is included in the operating budget, as it is utilized
for engineers travel expenses and other operational costs.
Senator Dyson asked if the Village Safe Water projects were listed
in priority order.
Mr. Easton answered the projects are listed in alphabetical order.
Senator Dyson expressed concerns about the oversight of the
administration of the program as identified in the Division of
Legislative Audit report. He wanted assurance that the problems do
not exist or that they are being addressed.
Statewide Contaminated Sites Cleanup
$3,000,000 Oil/Haz Fund
Reference No.: 33826
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2009
On-Going Project
This project funds assessment and cleanup of highest priority
state-owned sites or sites where the responsible party is
unknown or has refused to take appropriate action. Work
includes assessment, clean up, monitoring, and site closure.
These projects will contribute directly to the department' end
result of protecting the environment by cleaning up historical
contaminated sites.
LARRY DIETRICK, Director, Division of Spill Prevention and
Response, Department of Environmental Conservation, stated these
funds would address 29 priority sites, 22 of which are State-owned
facilities. He stated that the remaining seven sites have been
identified as high priority, although securing funding for this
effort from the responsible parties has been determined to be
unfeasible. He noted this request is $2 million lower than the
amount appropriated the previous year due to a declined balance of
the Oil and Hazard Fund.
Spill Response VHF Communications Upgrade
$300,000 Oil/Haz Fund
Reference No.: 38899
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased - New Project
This project provides funding to replace an aging VHF two-way
radio communications system. The system includes handheld
radios, vehicle radios and repeaters in Prince William Sound
and Cook Inlet that were installed in the late 80's and are
nearing the end of their life expectance. Spare parts are no
longer available. This project contributes to Department of
Environmental Conservation's end result of protecting the
environment by making timely response and cleanup of pollution
possible. As the State's primary response agency for oil and
hazardous materials incidents, Department of Environmental
Conservation must have a reliable communications system to
ensure responders quickly deploy spill resources, mitigate
environmental damage, and enhance recovery of damaged areas.
Mr. Dietrick reported that the current system is so old that
replacement parts are not longer available.
Statewide Hazardous Materials Response
$300,000 Oil/Haz Fund
Reference No.: 38898
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
This project protects public health and the environment by
making timely response and cleanup of hazardous materials
possible. It provides funding to sustain the Statewide
Hazardous Materials Response Team by; maintain
readiness/response capabilities for primary teams located in
Anchorage, Fairbanks, Valdez and Southeast Alaska; provide
training classes and exercises in communities at risk from a
release of toxic chemicals; conducting a major joint
federal/state/local hazardous materials response exercise to
test capabilities and increase awareness; and funding training
and equipment replacement/upgrades.
Mr. Dietrick stated this project would relieve the State from
primarily undertaking these efforts, and instead allow
participation from federal and local entities.
Mr. Dietrick informed that chemical releases from canneries are a
high risk. He added that this funding represents the State
contribution to maintain the capability.
Municipal Water, Sewer and Solid Waste Matching Grant Projects
$6,742,600
$6,498,100 ASLC Bonds
244,500 Federal Receipts
Reference No.: 33824
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
This proposed project provides funding for grants to
communities to construct water, sewer and solid waste
facilities. It contributes to the agency's End Result 2 --
Citizens are Protected from Unsafe Sanitary Practices.
Drinking water and wastewater facilities constructed with
grant funds protect citizens from unsafe sanitary practices.
Mr. Easton misspoke and stated the amount of this appropriation at
$7.8 million.
Mr. Easton stated that unlike the Village Safe Water Program, this
item relates to projects undertaken in larger communities. He noted
this program requires up to 15 percent matching funds from the
local government, depending upon the population of the community.
He also pointed out this funding request is approximately $2.7
million less than the current fiscal year appropriation.
Co-Chair Wilken pointed out that although no general funds are
requested for capital projects for FY 05, general funds are
anticipated for this and other items in future years.
Senator B. Stevens asked the amount of general funds utilized for
this project in previous years. He also requested a breakdown of
funding to be requested in future years for projects undertaken in
the prior four years.
Mr. Easton replied he would gather that information.
Village Safe Water Feasibility Studies
$1,222,500
$305,800 AHFC Bonds
916,700 Federal Receipts
Reference No.: 33821
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
This proposed project provides funding for grants to small
communities to plan water and sewer facilities. It contributes
to the agency's End Result 2 -- Citizens are Protected from
Unsafe Sanitary Practices. Drinking water and sewerage
facilities constructed with grant funds protect rural
residents from unsafe sanitary practices.
Mr. Easton noted this funding request is a decrease of
approximately $1.4 million from the current fiscal year
appropriation. He explained this item relates to the engineering
studies that "form the basis" of the Village Safe Water Program and
are used to match communities with appropriate projects.
Senator Bunde asked if local matching funds are required to receive
these grants.
Mr. Easton replied that no local matching funds are required for
the Village Safe Water Program.
Village Safe Water Projects
$78,046,800
$19,512,500 AHFC Bonds
58,534,300 Federal Receipts
Reference No.: 33822
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
This proposed project provides funding for grants to small
communities to design and construct water and sewer
facilities. It contributes to the agency's End Result 2 --
Citizens are Protected from Unsafe Sanitary Practices.
Drinking water and sewerage facilities constructed with grant
funds protect rural residents from unsafe sanitary practices.
Mr. Easton informed this funding request is approximately the same
as the appropriation for the current fiscal year. He noted the
individual projects are detailed in 46 budget allocation requests.
Co-Chair Wilken referenced the aforementioned spreadsheet detailing
the funding allocated to various projects. He asked if the database
includes previous projects and planned projects.
Mr. Easton affirmed and noted previous funding amounts are included
in the database.
Co-Chair Wilken acknowledged the efforts of the Division to
organize and detail the projects.
Co-Chair Wilken recalled concerns expressed by Co-Chair Green
resulting in the Division of Legislative Audit report. He relayed
that Co-Chair Green requested the budget subcommittee review the
audit and identify ways to "fix…some past transgressions and past
practices" that were perhaps "inappropriate or well managed". He
surmised Co-Chair Green's intent is that this review effort be
ongoing in future years.
Mr. Easton commented that the Village Safe Water Program "is not a
stranger to audits." Most audits of the program, he noted, focus on
accounting of funds and whether funds are properly appropriated,
and that the findings have indicated no discrepancies. He disputed
much of the findings in the current audit, opining that auditors
have trouble understanding construction and the confusion results
in recommendations the Division does not always agree with. He
noted that Senator Dyson has requested a more detailed response to
the audit.
Senator Dyson reiterated that the Department disagrees with much of
the findings of the audit.
Mr. Maher reported that since audit was issued the Department has
considered more involvement of the Division of Administrative
Services as well as establishing a procurement position within the
Division to oversee appropriations. He qualified that such
oversight is not always appropriate. He assured that internal
methods to address the issue are under consideration.
Senator B. Stevens noted that as a member of the Legislative Budget
and Audit Committee he is satisfied with the Village Safe Water
Program. He understood that abuses occurred in the past and he
wanted assurances that they would not reoccur. He also stressed the
importance that these issues are addressed, cautioning that abuses
jeopardize the entire program.
Senator Bunde furthered that the abuses referenced by Senator B.
Stevens could not be considered acceptable construction procedures.
He contended that the discrepancies in the audit are not because
auditors do not understand construction practices.
Mr. Maher shared that the Department directed the Human Resources
Manager to review the audit and identify any ethical violations.
The review, according to Mr. Maher found no such violations. He
assured the Department is taking the information in the audit
seriously.
Co-Chair Wilken stated that the audit would not be debated at this
time; rather, the budget subcommittee would review the matter under
the direction of Senator Dyson.
Senator Dyson commented he did not "want to raise the level of
expectations." He explained that the budget subcommittee would be
unable to fully investigate the matter without significant
resources.
The bill was HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 11:07 AM
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