Legislature(2005 - 2006)SENATE FINANCE 532

05/17/2005 10:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SB 46 APPROP: CAPITAL BUDGET
Moved 2d CSSB 46(2d FIN) Out of Committee
= SB 97 SUPPLEMENTAL APPROPRIATIONS/CBR
Moved CSSB 97(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                           May 17, 2005                                                                                       
                            10:10 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Green convened the meeting at approximately 10:10:16 AM.                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Bert Stedman                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:  GINGER BLAISDELL, Staff to Co-Chair Green                                                                    
                                                                                                                                
Attending via Teleconference:  There were no teleconference                                                                   
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB  46-APPROP: CAPITAL BUDGET                                                                                                   
                                                                                                                                
The Committee adopted a committee substitute and two amendments.                                                                
The bill was reported from Committee.                                                                                           
                                                                                                                                
SB  97-SUPPLEMENTAL APPROPRIATIONS/CBR                                                                                          
                                                                                                                                
The Committee adopted a committee substitute and six amendments.                                                                
The bill was reported from Committee.                                                                                           
                                                                                                                                
10:10:32 AM                                                                                                                   
                                                                                                                                
     CS FOR SENATE BILL NO. 46(FIN) am                                                                                          
     "An Act making  and amending appropriations,  including capital                                                            
     appropriations, supplemental  appropriations, reappropriations,                                                            
     and appropriations  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 bill had  been previously heard and reported  out of the Senate                                                            
Finance  Committee. This  bill was  returned to  the Senate  Finance                                                            
Committee for further consideration.                                                                                            
                                                                                                                                
10:10:41 AM                                                                                                                   
                                                                                                                                
GINGER BLAISDELL,  Staff to Co-Chair  Green, explained the  proposed                                                            
committee substitute,  Version "P"  before the members is  "slightly                                                            
changed"  from the  version reported  from Committee  at an  earlier                                                            
hearing.  Every item with  an FY  06 effective  date is included  in                                                            
this committee  substitute; every item with an FY  05 effective date                                                            
is included in a proposed committee substitute to SB 97.                                                                        
                                                                                                                                
10:11:35 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell  reported  that all  technical  corrections have  been                                                            
incorporated into the proposed committee substitute.                                                                            
                                                                                                                                
10:11:49 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green noted  that school  maintenance  projects have  been                                                            
removed from  this bill and  would be included  in SB 97. All  other                                                            
capital projects  included in the  version previously reported  from                                                            
the Senate Finance Committee  are included in the proposed committee                                                            
substitute.                                                                                                                     
                                                                                                                                
10:13:06 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell  affirmed,  with one exception.  An appropriation  for                                                            
Chitina  Dip Net  activities  was adopted  by the  full Senate,  but                                                            
withdrawn.  That  project  is included  in  the  proposed  committee                                                            
substitute.                                                                                                                     
                                                                                                                                
10:13:24 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  understood this would allow fees to  be collected to                                                            
operate  concession  and infrastructure   necessary for  the  Chitna                                                            
fishing program.                                                                                                                
                                                                                                                                
10:14:00 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken  moved  for adoption  of  CS  SB 46,  24-GS  1074\P                                                            
Amended,  as a working  document.  [Note: handwritten  changes  were                                                            
made  to the  committee  substitute  before  distribution  and  were                                                            
included in the motion to adopt this committee substitute.]                                                                     
                                                                                                                                
There  was no objection  and the  amended committee  substitute  was                                                            
ADOPTED as a working document.                                                                                                  
                                                                                                                                
10:14:24 AM                                                                                                                   
                                                                                                                                
Amendment #97:  This amendment redirects  the $700,000 general  fund                                                            
appropriation  for the Chitna  Personal Use  Dip Net Fishery  Access                                                            
Area (HD 1-40)  component from the  Department of Natural  Resources                                                            
to the Department of Transportation  and Public Facilities, deleting                                                            
the  language  from page  43,  lines 10  -  20 and  reinserting  the                                                            
language  on page 49, following  line 28.  This amendment also  adds                                                            
additional  intent language.  The  complete conditional  and  intent                                                            
language for this component reads as follows.                                                                                   
                                                                                                                                
     This  appropriation  shall be made  available  at the time  the                                                            
     Chitna  Native Corporation,  AHTNA Native  Corporation  and the                                                            
     State  of  Alaska  enter  into  a  concession  area  management                                                            
     agreement for the Chitna Personal Use Dip Net Fishery Area.                                                                
                                                                                                                                
     It is  the intent  of the Legislature  that this appropriation                                                             
     provide  for the  basic infrastructure  to  develop the  Chitna                                                            
     Personal  Use Dip Net Fishery Area to begin the  public-private                                                            
     concession program as outlined in the management agreement.                                                                
                                                                                                                                
     It is the intent of  the Legislature that future appropriations                                                            
     for  the Chitna  Personal  Use  Dip Net  Fishery  Area be  made                                                            
     available   based  on  program  receipts  collected   for  this                                                            
     purpose.                                                                                                                   
                                                                                                                                
     The Department  of Transportation  and Public Facilities  shall                                                            
     have the authority  to use the appropriation for the purpose of                                                            
     providing,  over a five-year  period, access and facilities  in                                                            
     support  of  the  Chitina  Personal  Use Dip  Net  Fishery  and                                                            
     related activities,  including the authority  to make grants to                                                            
     Chitina Native Corporation and AHTNA Native Corporation.                                                                   
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This will move the  appropriation for the Department of Natural                                                            
     Resources  to  the  Department  of  Transportation  and  Public                                                            
     Facilities.                                                                                                                
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
10:14:38 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell  explained the amendment consists of  an appropriation                                                            
to the Chitina fisheries program and intent language.                                                                           
                                                                                                                                
Co-Chair  Green furthered  that  it was  discovered  that the  funds                                                            
should be appropriated  through the Department of Transportation and                                                            
Public Facilities  rather than the  Department of Natural  Resources                                                            
to allow for proper management of the project.                                                                                  
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
AT EASE to 10:28:54 AM                                                                                                        
                                                                                                                                
10:28:56 AM                                                                                                                   
                                                                                                                                
Amendment #98:  This amendment inserts a new Academy  Charter School                                                            
Gym Construction  (HD 13-16) component  and $2,500,000 general  fund                                                            
appropriation  to  the Grants  to Named  Recipients  (AS  37.05.316)                                                            
Budget Request Unit (BRU) on page 4, following line 12.                                                                         
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green   informed  that  this  project  was  inadvertently                                                             
excluded from the legislation.                                                                                                  
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
AT EASE 10:29:35 AM / 10:30:05 AM                                                                                           
                                                                                                                                
Co-Chair Green  announced directive  to the Division of Legislative                                                             
Finance to insert  an effective date of July 1, 2005.  Otherwise the                                                            
provisions of  this legislation would not become effective  until 90                                                            
days after signature by the governor.                                                                                           
                                                                                                                                
AT EASE                                                                                                                         
                                                                                                                                
10:30:57 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion  to report CS SB 46, 24-GS  1074\P                                                            
Amended, as amended, with individual recommendations.                                                                           
                                                                                                                                
There  was  no objection   and 2d  CS  SB  46 (2d  FIN)  MOVED  from                                                            
Committee.                                                                                                                      
                                                                                                                                
10:31:27 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 97                                                                                                         
     "An    Act   making    supplemental,    capital,   and    other                                                            
     appropriations, and  reappropriations; amending appropriations;                                                            
     making   appropriations   to   capitalize  funds;   making   an                                                            
     appropriation 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  bill  had  been   previously  heard  in  the  Senate   Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
10:31:34 AM                                                                                                                   
                                                                                                                                
GINGER   BLAISDELL,   Staff  to   Co-Chair  Green,   informed   this                                                            
legislation  is  the  original  "slow  track"   FY  05 supplemental                                                             
appropriation  legislation.  The version  of SB 46  that the  Senate                                                            
Finance   Committee  initially   reported   from  Committee   merged                                                            
supplemental  appropriations  with  the FY  06 capital  budget.  The                                                            
supplemental  appropriations have  been eliminated from the  capital                                                            
budget legislation  and would be addressed separately  in this bill.                                                            
With  few exceptions,  all provisions  of  this bill  have an FY  05                                                            
effective date.                                                                                                                 
                                                                                                                                
Ms. Blaisdell continued  that this bill also includes appropriations                                                            
for all  the school  projects  originally  included in  SB 155.  The                                                            
funding source would not  be general funds, but rather revenues from                                                            
bonds issued  from the commonly referenced  Amerada Hess  settlement                                                            
account  included  in the  Alaska  Permanent  Fund. She  noted  that                                                            
school   projects   recommended   by  members   of   the  House   of                                                            
Representatives  had been  included in the  original Senate  Finance                                                            
committee  substitute  for  SB 46,  but  are  not included  in  this                                                            
version.                                                                                                                        
                                                                                                                                
AT EASE 10:33:20 AM / 10:34:35 AM                                                                                           
                                                                                                                                
AT EASE                                                                                                                         
                                                                                                                                
11:00:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken offered  a motion  to adopt CS  SB 97, 24-GS1076\G                                                             
Amended, as a working document.                                                                                                 
                                                                                                                                
11:01:09 AM                                                                                                                   
                                                                                                                                
Ms.  Blaisdell  explained  the  Section  1 pertains  to  school  and                                                            
education projects  originally included  in SB 155 before  that bill                                                            
was amended.  These projects are scheduled  to be paid from  Amerada                                                            
Hess  bond  proceeds.  She directed  attention  to  the  marked  out                                                            
language  on page  13, stating  this is  duplicated  language.   The                                                            
maintenance  projects   were  itemized  for  the  benefit   of  bond                                                            
purchasers.                                                                                                                     
                                                                                                                                
11:02:19 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell stated that  Section 6 contains the FY 05 supplemental                                                            
appropriations  approved by the Committee  in an earlier  version of                                                            
SB 46. No changes  have been made  to these appropriations  with the                                                            
possible exception of the  $2,693,700 general fund appropriation for                                                            
fuel costs of the Alaska Marine Highway System.                                                                                 
                                                                                                                                
11:03:25 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell  concluded by  noting that the  language from  page 15                                                            
through the  end of the bill was contained  in the version  of SB 46                                                            
that  was   originally  reported   from  Committee.  This   language                                                            
primarily relates  to FY 05 effective dates for other  provisions in                                                            
the bill.                                                                                                                       
                                                                                                                                
11:03:52 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  clarified that the  school projects would  be funded                                                            
with bond proceeds guaranteed by the Amerada Hess settlement.                                                                   
                                                                                                                                
11:03:58 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell affirmed.                                                                                                         
                                                                                                                                
11:04:02 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green noted  that  an amendment  [Amendment  #2] would  be                                                            
offered  to replace  the marked out  language of  Section 9.  Alaska                                                            
Court System.,  on page  16 lines  22 - 24. That  language reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
          Sec. 9. ALASKA COURT SYSTEM. The sum of $140,000 is                                                                   
     appropriated from  the general fund to the Alaska Court System,                                                            
     trial courts for the  Matanuska-Susitna drug court position for                                                            
     the fiscal years ending June 30, 2005 and June 30, 2006.                                                                   
                                                                                                                                
There was no objection  and the committee substitute  was ADOPTED as                                                            
a working document.                                                                                                             
                                                                                                                                
11:04:26 AM                                                                                                                   
                                                                                                                                
Amendment #1: This amendment  inserts a new subsection to Section 6.                                                            
DEPARTMENT  OF ADMINISTRATION.,  on  page 15, following  line  26 to                                                            
read as follows.                                                                                                                
                                                                                                                                
          (g) The sum of $770,000 is appropriated to the Department                                                             
     of Administration,  Public Defender  Agency, for the  operating                                                            
     costs of  the agency for the fiscal year ending  June 30, 2005,                                                            
     from the following sources in the amounts stated:                                                                          
          General Fund                              $725,100                                                                    
          General Fund/Program Receipts               24,900                                                                    
          Statutory  Designated Program  Receipts     20,000                                                                    
                                                                                                                                
     It  is the intent  of the  legislature that  the Department  of                                                            
     Administration  will  work  with  the Alaska  Court  System  to                                                            
     review  indigency requirements  to ensure that only  those that                                                            
     are truly  eligible receive public  council through  the Public                                                            
     Defender   Agency  or  the  Office  of  Public  Advocacy.   The                                                            
     Department  of Administration  shall report to the legislature                                                             
     any recommended changes by February 15, 2006.                                                                              
                                                                                                                                
     It  is  the  intent  of the  legislature  that  if  the  Public                                                            
     Defender  Agency or the Office of Public Advocacy  become aware                                                            
     that a client is not  indigent, that they move to withdraw from                                                            
     the case.                                                                                                                  
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The  increase  for  the  Public  Defender  Agency  is  $250,000                                                            
     (originally  passed  as  $520,000  general  funds) due  to  the                                                            
     caseload  and the statutory requirement  to defend those  cases                                                            
     it  is assigned by  the courts. Reducing  supplemental  funding                                                            
     could  cause the  Public Defender  Agency  to cease  operations                                                            
     before  the end of the FY 06  fiscal year and be non-compliant                                                             
     within the law.                                                                                                            
                                                                                                                                
     The  intent language  provides  guidance to  the Department  of                                                            
     Administration  to  review  the cases  assigned  to the  Public                                                            
     Defender   Agency  for  client  asset  values  and   indigency.                                                            
     Currently,  approximately 80  % of court cases are tried  using                                                            
     public defenders.                                                                                                          
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
11:04:34 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell  pointed out subsection (d) of Section  6, on lines 13                                                            
- 18 of  the committee  substitute is identical  to the language  of                                                            
this amendment;  however,  it provides less  funding for the  Public                                                            
Defender Agency. This amendment  adds $50,000 general funds. If this                                                            
increase  were  not  provided,  the  Agency  would  be  required  to                                                            
significantly reduce or stop providing some services.                                                                           
                                                                                                                                
11:05:33 AM                                                                                                                   
                                                                                                                                
Co-Chair Green offered a motion to amend the amendment to delete                                                                
Section 6 (d) and replace it with the language of the amendment.                                                                
                                                                                                                                
11:06:53 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell read the intent language into the record.                                                                         
                                                                                                                                
11:07:38 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  relayed  that  she  has  heard  reports  that  some                                                            
defendants  receiving services from  the Public Defender  Agency did                                                            
not qualify for  those services. This decreases the  availability of                                                            
services to those who do qualify.                                                                                               
                                                                                                                                
There was no objection and the Amendment #1 was AMENDED.                                                                        
                                                                                                                                
The amendment as amended was ADOPTED without objection.                                                                         
                                                                                                                                
11:08:18 AM                                                                                                                   
                                                                                                                                
Amendment #2: This amendment inserts two subsections to Section 7.                                                              
Department of Commerce, Community and Economic Development., on                                                                 
page 16, following line 12 to read as follows.                                                                                  
                                                                                                                                
          (d) The sum of $70,000 is appropriated from the general                                                               
     fund  to the  Department of  Commerce, Community  and  Economic                                                            
     Development,  division of community advocacy,  for payment as a                                                            
     grant  under AS  37.05.315 to  the City of  Palmer for  partial                                                            
     funding  for a drug enforcement  position for the fiscal  years                                                            
     ending June 30, 2005 and June 30, 2006.                                                                                    
          (e) The sum of $70,000 is appropriated from the general                                                               
     fund  to the  Department of  Commerce, Community  and  Economic                                                            
     Development,  division of community advocacy,  for payment as a                                                            
     grant  under AS 37.05.315  to the City  of Wasilla for  partial                                                            
     funding  for a drug enforcement  position for the fiscal  years                                                            
     ending June 30, 2005 and June 30, 2006.                                                                                    
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The  appropriation  was  originally   passed  in SB  46  as  an                                                            
     appropriation  to the Alaska Court System but  should have been                                                            
     a grant to a municipality under AS 37.05.315.                                                                              
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
11:08:24 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  noted the net zero  impact of this amendment,  given                                                            
the  deletion  of  the  appropriation  contained  in  Section  9.  A                                                            
misunderstanding  was the cause of  the original appropriation  made                                                            
to the drug court, rather than drug enforcement positions.                                                                      
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
11:09:07 AM                                                                                                                   
                                                                                                                                
Amendment #3: This amendment inserts a new subsection to Section                                                                
25. Department of Transportation and Public Facilities., on page                                                                
26, following line 18 to read as follows.                                                                                       
                                                                                                                                
          (u) The sum of $62,500,000 is appropriated from the                                                                   
     general  fund to the  Department of  Transportation and  Public                                                            
     Facilities  for the following  projects in the amounts  stated,                                                            
     subject   to  reallocation   among   the   projects  under   AS                                                            
     37.07.080(e):                                                                                                              
          PROJECT                                         AMOUNT                                                                
          McCarthy Road, major maintenance             $2,000,000                                                               
          Denali  Borough, Stampede  Road Improvements  5,000,000                                                               
          Fairbanks,  Richardson Highway  northbound    3,500,000                                                               
            Chena overflow bridge for gas pipeline                                                                              
          DeLong Mountain, port expansion EIS           2,000,000                                                               
            completion                                                                                                          
          North  Slope, Foothills  West Road EIS        4,000,000                                                               
          North Slope, Bullen Point EIS                 5,000,000                                                               
          Dalton Highway, surfacing upgrades            9,000,000                                                               
          Dalton  Highway, Washington  Creek Bridge     3,500,000                                                               
          Richardson  Highway, highway  passing lanes,  7,500,000                                                               
            Milepost 265-341                                                                                                    
          Richardson  Highway, Shaw  Creek Bridge       2,500,000                                                               
          Kenai  Peninsula, Kalifornsky  Beach Road    11,000,000                                                               
            rehabilitation                                                                                                      
          Industrial roads                              3,500,000                                                               
          Cordova: Copper River Highway                 4,000,000                                                               
            rehabilitation                                                                                                      
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     These  projects were originally  requested by the Governor  for                                                            
     Roads  to Resources  and were included  in SB  46 as funded  by                                                            
     AMHESS  [Amerada  Hess  settlement]  interest  earnings.  These                                                            
     projects  will  now  be funded  from  the  FY 05  general  fund                                                            
     projected lapse.                                                                                                           
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
11:09:15 AM                                                                                                                   
                                                                                                                                
Ms.  Blaisdell explained  the  initial  intent to  utilize  interest                                                            
earnings to repay bonds  guaranteed from the Amerada Hess settlement                                                            
account  of  the Alaska  Permanent  Fund.  This  amendment  proposes                                                            
utilizing higher  than anticipated revenues from FY  05 deposited to                                                            
the general fund.                                                                                                               
                                                                                                                                
Ms.  Blaisdell  suggested  miner changes  to  the language  of  this                                                            
amendment that would assist  agencies in undertaking these projects:                                                            
"or  bypass"   inserted   in  the  Fairbanks,   Richardson   Highway                                                            
northbound Chena overflow  bridge for gas pipeline project; and "and                                                            
community  access" inserted  in the  Industrial  roads project.  The                                                            
amended amendment would read as follows.                                                                                        
                                                                                                                                
          (u) The sum of $62,500,000 is appropriated from the                                                                   
     general  fund to the  Department of  Transportation and  Public                                                            
     Facilities  for the following  projects in the amounts  stated,                                                            
     subject   to  reallocation   among   the   projects  under   AS                                                            
     37.07.080(e):                                                                                                              
          PROJECT                                         AMOUNT                                                                
          McCarthy Road, major maintenance             $2,000,000                                                               
          Denali  Borough, Stampede  Road Improvements  5,000,000                                                               
          Fairbanks,  Richardson Highway  northbound    3,500,000                                                               
            Chena overflow or bypass bridge for                                                                                 
             gas pipeline                                                                                                       
          DeLong Mountain, port expansion EIS           2,000,000                                                               
            completion                                                                                                          
          North  Slope, Foothills  West Road EIS        4,000,000                                                               
          North Slope, Bullen Point EIS                 5,000,000                                                               
          Dalton Highway, surfacing upgrades            9,000,000                                                               
          Dalton  Highway, Washington  Creek Bridge     3,500,000                                                               
          Richardson  Highway, highway  passing lanes,  7,500,000                                                               
            Milepost 265-341                                                                                                    
          Richardson  Highway, Shaw  Creek Bridge       2,500,000                                                               
          Kenai  Peninsula, Kalifornsky  Beach Road    11,000,000                                                               
            rehabilitation                                                                                                      
          Industrial  roads and community  access       3,500,000                                                               
          Cordova: Copper River Highway                 4,000,000                                                               
            rehabilitation                                                                                                      
                                                                                                                                
11:12:02 AM                                                                                                                   
                                                                                                                                
The amendment was AMENDED and ADOPTED without objection.                                                                        
                                                                                                                                
11:12:54 AM                                                                                                                   
                                                                                                                                
Amendment #4: This amendment  inserts a new bill section on page 23,                                                            
following line 19 to read as follows.                                                                                           
                                                                                                                                
          Sec. 20. RURAL ELECTRIFICATION REVOLVING LOAN FUND.                                                                   
     Notwithstanding  AS  42.45.020(g),  the  balance  of the  rural                                                            
     electrification revolving  loan fund (AS 42.45.020) on June 30,                                                            
     2005,  estimated   to be  $330,000,   is  appropriated  to  the                                                            
     Department of Commerce,  Community and Economic Development for                                                            
     the electrical emergencies program.                                                                                        
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This is a  supplemental appropriation for FY  05 so it is being                                                            
     moved from SB 46 to SB 97.                                                                                                 
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
11:12:58 AM                                                                                                                   
                                                                                                                                
Ms. Blaisdell explained  the transfer of this appropriation from the                                                            
capital budget  legislation to this  bill is intended to  coordinate                                                            
the effective date.                                                                                                             
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Amendment #5:  This amendment inserts an Academy Charter  School gym                                                            
Construction  - Matanuska-Susitna  Borough  (HD 13-16) component  on                                                            
page  9, following  line  12  and appropriates  $2,500,000  to  that                                                            
component. The funding source was not specified.                                                                                
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
11:13:27 AM                                                                                                                   
                                                                                                                                
Amendment #6: This amendment  inserts a State BRAC (Base Realignment                                                            
and Closure  Commission) Task Force  component to the Office  of the                                                            
Governor  budget and appropriates  $1,000,000  general fund  to that                                                            
component. Accompanying explanatory language reads as follows.                                                                  
                                                                                                                                
     On May  13,2005, the Department  of Defense recommended  to the                                                            
     Base Realignment  and Closure  Commission (BRAC) that  Alaska's                                                            
     Air  Force bases  (Elmendorf  and Eielson)  be realigned,  that                                                            
     Kulis Air Guard Station  be closed and that the Fort Richardson                                                            
     Army Post in Anchorage  also be realigned. It is estimated that                                                            
     a  loss of 4,700  jobs in the  Fairbanks  area alone may  occur                                                            
     with the realignment of Eielson Air Force Base.                                                                            
                                                                                                                                
     Governor  Murkowski has appointed  a 15-member State  BRAC Task                                                            
     Force to  help fight this devastating proposal  and to convince                                                            
     the  BRAC  to   firmly  reject  the  Department   of  Defense's                                                            
     recommendation.  The BRAC  will present  its final decision  to                                                            
     the  United  States  Congress  on  September  8,  2005.  It  is                                                            
     imperative that Alaska responds quickly.                                                                                   
                                                                                                                                
     Directly  impacting communities  are planning special  meetings                                                            
     to consider  similar funding  requests at the local  level. The                                                            
     Fairbanks  North  Star  Borough  is expected  to  put  $500,000                                                            
     toward the effort  in an emergency meeting to be held this week                                                            
     in Fairbanks.                                                                                                              
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
11:13:32 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  remarked that the recommendation  of the closure of                                                            
the Kulis Air  Guard Station was expected; however,  the recommended                                                            
realignments   of  other   military   bases  in   Alaska  were   not                                                            
anticipated. He  listed the number of jobs that would  be eliminated                                                            
as a result of  the proposed changes: 459 related  to the closure of                                                            
the Kulis Air Guard Station;  934 from Elmendorf Air Force Base; 286                                                            
from  Fort  Richardson;  2,940  from Eielson  Air  Force  Base.  The                                                            
Governor and municipalities  are "rallying to the  cause" to present                                                            
the  State's  position  to the  BRAC  Commission.  The  timeline  is                                                            
limited.  He was unsure if  $1 million would  be adequate for  these                                                            
efforts, but emphasized  that at least $500,000 would  be necessary.                                                            
[A  spreadsheet   titled  "BRAC  Response  Effort  Budget"   listing                                                            
projected  expenditures of  this appropriation  and a $500,000  from                                                            
the Fairbanks  North  Star Borough,  is  on file.]  He stressed  the                                                            
importance  to  protect  the  status of  these  military  bases  and                                                            
prevent the loss of jobs                                                                                                        
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
11:16:26 AM                                                                                                                   
                                                                                                                                
Amendment #7:  This amendment inserts  a new Dillingham Middle/High                                                             
School construction  and  renovation - Dillingham  City Schools  (HD                                                            
37)  component  on  page  9,  following  line  26  and appropriates                                                             
$9,500,000 other funds to this component.                                                                                       
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
11:16:36 AM                                                                                                                   
                                                                                                                                
Co-Chair Green informed  that this project was inadvertently omitted                                                            
in the transfer of school projects from SB 46 to this bill.                                                                     
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
11:16:49 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken offered a motion to report CS SB 97, 24-GS1076\G                                                                
Amended,    as   amended,    from    Committee    with    individual                                                            
recommendations.                                                                                                                
                                                                                                                                
11:17:12 AM                                                                                                                   
                                                                                                                                
There was no objection and CS SB 97 (FIN) MOVED from Committee.                                                                 
                                                                                                                                
Recess to Call of the Chair 11:17:33 AM / 5:07:34 PM                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Green adjourned the meeting at 05:07 PM                                                                                

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