Legislature(1997 - 1998)
05/03/1998 02:55 PM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
3 May, 1998
2:55 p.m.
TAPES
SFC 98 # 153, Side A (000-591)
Side B (591-000)
Side B (593-163)
CALL TO ORDER
Senator Bert Sharp, Co-Chair, convened the meeting at
approximately 2:55 p.m.
PRESENT
In addition to Co-Chair Sharp, Senators Pearce, Donley,
Torgerson, Adams, Parnell and Phillips were present when the
meeting was convened.
Also Attending: Senator LYDA GREEN; Senator TIM KELLY;
Senator JERRY MACKIE; Senator ROBIN TAYLOR; Representative
JOHN COWDERY; Representative GARY DAVIS; Representative MARK
HANLEY; Representative AL VEAZY; ANNALEE MCCONNELL,
Director, Office of Management and Budget, Office of the
Governor; DAN SPENCER, Chief Budget Analyst, OMB; LAURA
BAKER, Budget Analyst, OMB; SHARON BARTON, Director,
Division of Administrative Services, Department of
Administration; DUGAN PETTY, Director, Division of General
Services, DOA; JUANITA HENSLEY, Director, Division of Motor
Vehicles, DOA; TOM LAWSON, Director, Division of
Administrative Services, Department of Commerce and
Economical Development; REMOND HENDERSON, Director, Division
of Administrative Services, Department of Community and
Regional Affairs; KAREN REHFELD, Director, Division of
Education Support Services, Department of Education; BARBARA
FRANK, Director, Division of Administrative Services,
Department of Environmental Conservation; MIKE CONWAY,
Director, Division of Air and Water Quality, DEC; KEVIN
BROOKS, Director, Division of Administrative Services,
Department of Fish and Game; JANET CLARKE, Director,
Division of Administrative Services, Department of Health
and Social Services; JIM NORDLAND, Director, Division of
Family and Youth Services, DH&SS; KEITH KELTON, Director,
Division of Faculty Construction and Operation, DEC; DWIGHT
PERKINS, Special Assistant, Office of the Commissioner,
Department of Labor; ARBE VICK, Director, Division of
Administrative Services, DOL; BARBARA RITCHIE, Deputy
Attorney General, Civil Division, Department of Law; NICO
BUS, Administrative Services Manager, Department of Military
and Veterans Affairs and Department of Natural Resources;
KEN BISCHOFF, Director, Division of Administrative Services,
Department of Public Safety; NANCI JONES, Director, Division
of Permanent Fund Dividend, Department of Revenue; JOE
PERKINS, Commissioner, Department of Transportation and
Public Facilities; NANCY SLAGLE, Director, Division of
Administrative Services, DOT&PF; CHRIS CHRISTENSEN, Staff
Council, Alaska Court System; WENDY REDMOND, Vice President,
University Relations, University of Alaska; PAM VARNEY,
Director, Legislative Affairs Agency; MIKE GREANY, Director,
Division of Legislative Finance; JIM HAUCK, GRETCHEN MANNIX,
GINGER PATTON and SUSAN TAYLOR, Fiscal Analysts, DLF; and
aides to committee members and other members of the
Legislature.
SUMMARY INFORMATION
SENATE BILL NO. 231
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
The purpose of this meeting was to consider amendments to
the FY99 Capital Budget and the supplemental operating
budget for FY98. The committee began with proposed changes
to the supplemental budget bill.
SUPP #1: Senator Pearce moved for adoption. ADOPTED without
objection.
SUPP #2: Senator Adams moved for adoption. Senator Pearce
objected. Debate was as follows.
Senator Adams spoke to his motion, saying this was a $1.4
million appropriation to the Department of Health and Social
Services for increased operating costs to the General Relief
Medical Program. He mentioned the backlog of payments that
were due and said he would not get into the argument of why
the program was needed.
Senator Pearce countered that the spending plan included a
supplemental amount of $16.5 million and that the Governor's
supplemental request jumped up to $70.7 million. She spoke
of the additional Medicaid costs and the exceptional fire
year and the fund used for those and other programs. There
were no more general fund dollars for FY98 to keep the
Legislature on it's target, she summarized. She commented
on the Governor's supplemental request in December of only
$13 million and how she didn't understand why it grew so
much when it was presented to the Legislature in March.
While she supported services for pregnant women, she
stressed that the department was given an appropriation for
the services last year and given clear direction to manage
the funds. She felt the department did a good job of
managing their larger programs but that this program got out
of control. There wasn't money to reimburse the program,
and she gave the department that warning last year, she
stated.
Senator Adams countered that it was hard to predict the GRM
caseload. He noted that the increased caseload came from
the urban areas of the state and that was where the most
disadvantaged citizens lived.
Senator Parnell added that the Governor cut the program last
year and the Legislature used the number given by the
Governor. He asked that the department be made to live with
that amount.
The amendment FAILED by a vote of 1-6. Senator Adams voted
nay.
SUPP #3: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying that the funds were
needed for power costs equalization. The program would run
out of funds in the middle of this month, he shared. He
referred to rural locations around the state, and the higher
electric costs.
Co-Chair Sharp countered that the $2.9 million balance in
the stripper well and other penalties had been utilized in
the present budget for low income housing weatherization.
Senator Adams responded that his record showed the oil
penalty fund had a balance of $2.999 million. That was the
reason he chose that source to fund the program.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #4: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying this request would
give $2 million to the Disaster Relief Fund. It was needed
to capitalize the fund. He said it was estimated to be a
high fire year and the money might be needed to take care of
a large fire. The current fund balance was only $60,000
according to Senator Adams.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #5: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying this was a sum of
$351,000 appropriated from the general funds to the
Department of Administration, Public Defender Agency. He
explained that the division had a shortfall and while it was
a significant reduction, the supplemental appropriation was
still needed.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #6: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying it would take
$261,400 from general funds and appropriates it to the DOA,
Office of Public Advocacy. He reminded the committee the
shortfall due to caseloads had been discussed earlier. This
amount of money was needed to pay the contractors and other
court-appointed professionals. Failure to pay was a
violation of a legal obligation and result in litigation, he
warned.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #7: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams corrected figures listed in the amendment.
The DOA amount was changed to $34,004 and the DH&SS amount
was changed to $8,427. He spoke to his motion saying the
funds were needed by the departments to pay miscellaneous
claims and stale-dated warrants up to June 30, 1998.
Senator Torgerson asked if this item was in the original
supplemental budget. Senator Pearce replied that should
have been and requested the amendment be placed at the
bottom of the calendar.
Senator Adams removed his motion, saying he would bring it
up at a later time.
SUPP #8: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
This amendment did not have a sponsor. Senator Adams spoke
to his motion saying the appropriation was for additional
funds for the foster care augmented rate for special needs.
He detailed the #355,600 general funds and $404,200 federal
receipts needed. He told the committee the program served
children in foster care with extraordinary problems that
must be addressed on an on-going basis.
Senator Parnell countered with the argument that the FY99
Operating Budget just passed from committee increased
funding for foster care. He said that funding this
supplemental would raise the funding level for FY98 above
that of FY99 and would nearly double the program's budget
while only adding 42 more children. He felt the committee
had taken a great stride forward with the FY99 budget and
urged a no vote.
Senator Adams responded that it needed to be recognized that
there were more problems throughout the state with fetal
alcohol syndrome, developmental disabilities, and other
problems, which he listed. He believed it was important to
support the foster parents.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #9: Senator Adams moved for adoption. Senator Parnell
objected. Debate was as follows.
Senator Adams spoke to his motion to delete Section 15 and
change funding for Alaska Temporary Assistance Program. He
referred to the department's submission of $1.5 million
general fund match. He said without this, the program would
be below the FY98 authorized level. He reminded the
committee that this program replaced the Aid to Families
with Dependent Children program. He believed the caseload
had changed and why more funding was needed.
Senator Parnell countered saying that, according to the
Legislative Finance Division, the caseload reduction was
more accurately reflected in the bill as $3.5 million rather
than $1.5 million Senator Adams claimed.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #10: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the appropriation
was to DH&SS for additional operating costs related to the
adoption and guardian subsidy payments for FY98. He
explained the program provided subsidies for families whom
provided permanent alternative homes for children who were
hard to place because of their special needs and challenges.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #11: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying this was an old
supplemental to appropriate $155,000 to the Department of
Natural Resources for demolition and asbestos abatement at
the Old Eagle School site. He explained the components'
distribution to accomplish the cleanup.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #12: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the $100,000
general fund program receipts appropriation to the DNR for
workload increases at the state recorder office.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #13: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the $200,000
appropriation to the Department of Law for the Civil
Division to cover operating costs. He spoke of the
increased caseload and projected that the division would
overspend by $200,000 more than authorized. Some of the
increases occurred in the areas of child protection and
juvenile delinquency work, which was part of the Human
Services Section.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #14: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the $100,000
appropriation to the DOL; Criminal Division was to cover
operating costs. He talked about the Personal Services
Component and the lower than expected vacancy factor. Due
to the high caseload in the Bethel district office resulted
in the necessity to keep an attorney position filled that
would normally be vacant.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #15: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying $1.5 million
appropriation to the DOL was for continuing costs that were
under-funded for legal matters involving oil and gas revenue
due or paid to the state or state tile to oil and gas land.
He did not go into the specific cases, reminding the
committee they had been discussed before.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #16 was a duplicate of SUPP #15 and was not offered
SUPP #17: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the $50,000
appropriation to the Department of Corrections; Parole Board
was for increased operating costs due to more prisoners to
review on an annual basis.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
SUPP #18: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying this amendment
would satisfy the monitory terms of the collective
bargaining agreement entered between the University of
Alaska and the United Academics. The amount of the
appropriation was $59,100.
Senator Pearce requested WENDY REDMOND, Vice President of
University Relations come to the table and speak to the
request.
Ms. Redmond told the committee of the contract agreement,
which had a small retroactive portion. She said this was
not any new general fund money but directed that the money
be diverted from the University's base budget.
Senator Pearce asked if the University needed authorization
to spend the money in this manner. Ms. Redmond affirmed and
expanded.
Senator Donley stated that the request seemed reasonable.
Senator Torgerson removed his objection and the amendment
was ADOPTED.
Senator Pearce wished to explain SUPP #19, saying that the
committee could come back to it when it took up the Front
Section. She told how she and Representative Hanley had
been discussing what to do with the Year 2000 Compliance
problem. This was their suggestion. A supplemental request
of a direct appropriation for FY98 from the Constitutional
Budget Reserve to the Office of Management and Budget for
$9.5 million. OMB would then utilize that money for the
Executive Branch, the University of Alaska and the Alaska
Court System for the assessment and remediation of Year 2000
computer related problems. She said that while everyone
recognized the problem, no one had any idea how big it was.
She warned that the situation couldn't be just ignored.
She told the committee this appropriation would require a
separate CBR vote and would be a one-time expenditure. She
and Representative Hanley felt this would not work against
the on-going spending plan.
Senator Pearce assured that funds were included in the
budget for Y2K compliance for the Legislative Branch.
Section Parnell agreed that something needed to be done, but
was concerned with the lack of definition of the magnitude
of the problem and the specification of where the funds were
to be spent. He said he would be requesting further
clarification from OMB to the committee. He felt the
appropriation would be a work in progress between the Senate
and the House of Representatives. He said that without
specificity, accountability questions would be raised. He
acknowledged that the problem needed to be addressed.
Senator Pearce asked to place SUPP #19 with the Front
Section of the bill. Co-Chair Sharp agreed to the request.
Senator Adams responded that this request did not take care
of all the agencies. He stated that if an agency had the
ability to take care of its own Y2K problem, it should be
able to do so. He referred to an amendment he would later
offer that would specifically address the Permanent Fund
Dividend Division. He did support the concept of the
amendment.
Senator Pearce asked to place SUPP #19 with the Front
Section of the bill. Co-Chair Sharp agreed to the request.
HSS #1: Senator Parnell moved for adoption. Senator Adams
objected. Debate was as follows.
Senator Parnell explained that this amendment should
actually considered with the Supplemental portion of the
bill.
He spoke to the amendment saying that over the last eight
months the issue of child protection was present through the
press and the Legislature. The Governor had put through a
request for 40 new social workers to deal with the problem
and the House and Senate had funded most of those positions,
according to Senator Parnell. He said he had since learned
that there was $1 million in Division of Family and Youth
Services funding that was not being used for front-line
social workers. This was money appropriated last year
specifically for that purpose. He expressed concern over
criticism the Legislature received for not funding enough
social workers when it was the department that was not
adequately using the funds. This amendment would
reappropriate up to $1 million for front-line social workers
in the FY99 Operating Budget. He guessed the Conference
Committee would adjust the numbers as needed closer to the
end of session.
Senator Adams approved of the social workers funding. He
spoke of the Senate funding for 28 social workers and the
House funding for 35 positions. He suggested a friendly
amendment to add support staff to the designation. He felt
that was one of the missing pieces that would make the
program work.
Senator Adams removed his objection. The amendment was
ADOPTED without objection.
Senator Pearce stated that she was aware of supplemental
needs to departments. The most predominant was for the
Department of Corrections for medical costs to prisoners.
She said the budget was still about $1 million short of the
department's request and what the subcommittee chair
recommended.
She told the committee that OMB had identified funds in an
Insurance Reserve Account, but she did not feel comfortable
pulling those funds for use in this supplemental. Her
reason was because the committee did not receive formal
notification that the funds could be utilized. However, as
those funds are identified, the committee would consider
appropriating them where needed. It was not her intent to
go beyond the general fund spending level as specified in
the bill. She requested Senator Adams help to locate some
of those alternative-funding sources.
Senator Adams told the chair he had received several
amendments from the department after the deadline, which he
intended to offer either in committee or on the Senate
Floor. Co-Chair Sharp said he would look at them but would
probably hold to the committee deadline.
DEPARTMENT OF ADMINISTRATION
DOA #1: Senator Adams moved for adoption. Co-Chair Sharp
objected. Debate was as follows.
Senator Adams spoke to his motion saying it pertained to the
manual collection systems used by the different state agency
AKPAY Time and Attendance System and requested $170,000. He
said the tasks required a large amount of state resources to
collect, calculate and input the time and attendance data
needed to pay state employees. He felt this allocation
would provide for a productive use of resources currently
allocated to administrative overhead functions and replace
labor intensive manual processing with automated technology
solutions. It would improve accuracy and consistency, he
said.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
Tape #153 Side B, 3:40 p.m.
DOA #2: Senator Adams moved for adoption. Senator Torgerson
objected. Debate was as follows.
Senator Adams spoke to his motion saying the allocation was
to add $110,000 for the Integrated Criminal Justice
Information System. He told the committee that the Public
Defender Agency offices were not electronically connected
and were unable to share databases, case management systems
and other information. This solutions would connect 13 PDA
offices using low-cost virtually private network technology
and would allow access to other criminal justice agencies
and information, develop a statewide case management, share
resources and improve electronic communications between all
PDA offices, he stated.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DOA #3: Senator Adams moved for adoption. Senator Torgerson
objected. Debate was as follows.
Senator Adams spoke to his motion saying the Juneau Subport
Relocation Planning project had been discussed by the
committee many times. He said the facility was the only
warehouse facility in Juneau and the land the building was
on had been transferred to the Mental Health Land Trust with
the lease expiring June 30, 1999. He listed the agencies
utilizing the facility. He said the funds were needed to
plan for the relocation of the different agencies.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DOA #4: Senator Adams moved for adoption. Senator Torgerson
objected. Senator Adams withdrew the motion. Senator
Phillips re-moved the amendment for adoption. Senators
Pearce, Torgerson and Donley objected at various times
during the course of discussion. Debate was as follows.
SHARON BARTON, Director of the Division of Administrative
Services, DOA came to the table at the request of Senator
Phillips. She explained that the project would fund about
95 workstations in the Division of Retirement and Benefits
for systems furniture. She spoke of the options to move the
group out of their current location in the State Office
Building and find a bigger space, or to squeeze them into
the existing space. The lowest cost option was the latter,
according to Ms. Barton. She told the committee that the
current furniture was debilitated and was not able to
configure into the space saving floor plans needed. She
stated that this request was not general funds, but Benefits
Receipts, PERS and TRS funds.
Senator Pearce asked if the allocation was to take money out
of the fund that paid people's retirement and use it to buy
furniture.
Ms. Barton replied that all operating costs for the
retirement funds were taken out of those funds. She
continued saying that the costs for office space and
workstations were another operating expense for all of state
government.
Senator Pearce asked if the allocation had been included in
the capital budget. Co-Chair Sharp said it had been but he
deleted it.
Co-Chair Sharp wanted to know how many new positions were
being added and needed to squeeze into the space. Ms.
Barton guess six to eight but was unsure.
Senator Pearce was unsure what was being done and why it was
deleted from the capital budget.
Senator Donley asked if this amount was the full original
request, which Co-Chair Sharp affirmed.
Co-Chair Sharp commented that while this was not general
fund money, it was still money.
The amendment FAILED by a vote of 3-4. Senators Adams,
Phillips and Torgerson cast yea votes.
DOA #5: Senator Phillips said this was the same as DOA #4
and would not be offered.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
DCED #1: Senator Adams said this would not be offered. He
had asked the department to confirm whether another
amendment, to be offered for the Front Section, would
accomplish the funding request. The request was to restore
matching funds for international trade show and economic
development conference grant programs.
TOM LAWSON, Director of the Division of Administrative
Services, came to the table. He answered that the interest
earned on the endowment was expected to cover the
expenditure.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
DCRA #1: Senator Adams moved for adoption. Senator
Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying that $250,000 was
appropriated for the ANWAR costs for oil and gas
development. What he proposed was to lower that to $225,000
and put $25,000 into the North Slope Borough for the Village
of Kaktovik for their community involvement. This would be
used for travel to Washington D.C. and Anchorage and to host
different Congress members to visit the area to consider
opening ANWAR. He added that the North Slope Borough would
match the funds.
Senator Pearce supported the amendment and cited her
experience working for the Arctic Slope Regional Corporation
taking visitors to the North Slope to help build support for
opening ANWAR. As a result of her travels, she visited
Kaktovik often. She felt the people of Kaktovik had some
things to say. She believed Arctic Power were also
supportive of this appropriation.
Co-Chair Sharp added that he had a direct conversation with
the executive director of Arctic Power and was told they
valued the participation of the people in this village.
The amendment was ADOPTED by a vote of 4-3. Senators
Donley, Phillips and Torgerson cast the nay votes.
DCRA #2: Senator Adams moved for adoption. Co-Chair Sharp
objected. Debate was as follows.
Senator Adams spoke to his motion saying that Rural
Assistance Grants program had been around for over 20 years.
This request was for $800,000 AIDEA receipts to provide
funding for projects in communities with a population of
less than 900. He gave examples of projects as community
centers, bulk fuel storage facilities, electrical upgrades,
etc.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DCRA #3: Senator Adams moved for adoption. Senators Pearce
and Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying this would add the
Alaska Native Heritage Center construction funds of
$800,000. He felt the construction of this center would
infuse an estimated $50 million into the Anchorage economy
through construction contracts and Alaska ventures. He
explained it would employ ten full-time people year round
and more than 150 people part-time. As of January 1998 the
heritage center had raised approximately $5.9 million of its
$11.8 million goal.
The amendment FAILED by a vote of 2-6. Senators Adams and
Phillips cast the nay votes.
DEPARTMENT OF CORRECTIONS
DOC #1: Senator Adams moved for adoption. Senator Torgerson
objected. Debate was as follows.
Senator Adams spoke to his motion saying the Department of
Corrections was responsible for approximately 112 state-
owned buildings valued at $#24 million. Currently within
those buildings there was a need for $22 million for
deferred maintenance and $11 million for renovation and
remodeling, he stated.
Co-Chair Sharp stated that the request was for $800,000 the
committee granted $400,000 under the bonding proposal.
Senator Adams acknowledged that half the request was
appropriated. However, he felt that amount would not cover
the emergency repairs needed for all 112 facilities.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DOC #2: Senator Adams moved for adoption. Senators Pearce
and Torgerson objected. Debate was as follows.
Senator Adams spoke to his motion saying the request was for
$200,000 general funds to correct some of the life and
safety code problems in 15 contract communities around the
state. He stressed that these funds were necessary to
provide safe housing for inmates and to protect the public.
He added that $80,000 of the request would go to fund code
improvements for non-contract jails in rural communities.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DEPARTMENT OF EDUCATION
DOE #1: Senator Adams moved for adoption. Senator Torgerson
objected. Debate was as follows.
Senator Adams spoke to his motion saying this was a request
for $100,000 for library materials. He noted that the
funding was granted in the capital budget in the past at a
rate of $350,000 per year. He felt library periodical
materials were essential to serve the needs of agencies and
the public.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEC #1: Senator Torgerson moved for adoption at the request
of Co-Chair Sharp. Senator Donley objected. Debate was as
follows.
Senator Donley asked if the level requested by the
Administration was $1.7238. Co-Chair Sharp affirmed and
said that was the amount needed to match the federal Village
Safe Water Project.
Senator Donley wanted to know how that related to last
year's expenditures. He felt this was one of the few
programs with a statutory prohibition on the local community
from putting local funds into the program. He didn't know
how that became statute. While he supported the program, he
was concerned that there was no provision to have these
certain Alaskans pay even one percent of the costs locally.
He noted that other communities had to pay all or most of
their local water projects by taxing themselves.
Senator Adams agreed with a portion of that statement, but
offered to pass legislation saying that if that area
developed a natural resource, they should keep 90 percent of
the money to help with their infrastructure.
Co-Chair Sharp answered Senator Donley's earlier question,
saying the program was funded at the same level last year,
but did the same thing this amendment would do. That was to
use money from the year before.
Senator Donley asked if the requested amount was what was
needed to meet the federal match. Co-Chair Sharp said it
was the amount necessary for the match and to administer the
program.
Senator Donley removed his objection. The amendment was
ADOPTED without objection.
DEC #2: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
He explained that the amendment would authorize the
department to receive $778,800 in federal funds for small
particular matter monitors. The state would then set up and
maintain 15 monitor sites to comply with federal
Environmental Protection Agency regulations. He said the
committee needed to ask itself if it wanted to be involved
with air quality. He warned that if this item were not
funded, the EPA would perform the monitoring without state
involvement and subsequently set future air quality
standards for Alaska.
Co-Chair Sharp reminded the committee of earlier testimony
from DEC stating that this was the start of a new program
and although not guaranteed, it was highly probable that
after two or three years, the program would be handed off to
local municipalities to operate. There may or may not be
federal funding to continue the program at that time. He
acknowledged the argument that the federal government may
set the fine particulate standards if the state did not.
However, he felt local municipalities would be saddled with
the cost of the program if the state accepted funding for
the equipment. He proposed that this was a blackmail
situation.
Senator Parnell commented that he had been in support of the
amendment until hearing the co-chair's argument. He said he
understood that the EPA who had planned to monitor the
program had purchased the equipment. He stressed that for
his district, he preferred the state DEC to set the air
quality standards rather than the federal EPA. However, he
had been unaware of the possibility of passing the costs
onto municipalities. He requested more information on the
issue.
MIKE CONWAY, Director of the Division of Air and Water
Quality was asked to address the committee. He explained
the Fine Particulate Monitoring Program. He said the
federal funding was to cover a three-year study to look at
the particulate level and establish state standards. At the
end of the three years, the monitoring project would end and
the department would have the ability to work with the EPA
to pass standards to reflect the situation in Alaska,
according to Mr. Conway.
Co-Chair Sharp asked if it was possible that the state
standards would exceed the minimum required by the EPA if
they took over the program. Mr. Conway didn't think so.
Senator Parnell asked reconfirmation that the data
collection project was slated for three years. Mr. Conway
affirmed.
Senator Donley voiced concerns over the current monitoring
programs and said he felt they were misadministered. He
complained about the placement of some of the monitors. He
hoped that as the collection project proceeded, it would
gain public input on how the monitoring was conducted. He
felt the data collected reflected a distorted result. Mr.
Conway said the department shared the senator's hopes with
this program.
Senator Torgerson wanted to know if there would be any input
on where the monitors would be placed. Or would the
placement be determined solely by the EPA. Mr. Conway
responded that if the project was funded, the state would
have input but if it were not, the department would have no
input.
Co-Chair Sharp asked if the equipment would measure wind
blown particulate such as glacier silt. He referred to an
instance with the power plant in Healy that was ordered shut
down by the EPA, when in fact it was already shut down and
the particulate registered was windblown from the river
system. Mr. Conway replied that the fine particulate did
not include windblown matter. He shared that the EPA was
revising the standard, which would be easier for communities
like Fairbanks and Anchorage, since the measurements would
not include the natural emissions.
Without objection, the amendment was ADOPTED.
DEC #3: Senator Adams announced he would not offer due to
passage of the preceding amendment.
DEC #4: Senator Adams moved for adoption. Senator Donley
objected. Discussion was as follows.
Senator Adams explained that the amendment would place
$1,090,000 back into the general fund account for the
Cordova Water System Improvements Phase IIB. He reminded
the committee that the City of Cordova was under an EPA
compliance order to upgrade their surface water source to
meet federal requirements because they were in violation of
state water regulations. He noted that funding had been
included earlier. He emphasized that he didn't think it was
right for any senator to remove this money to give to
another community and suggested Senator Donley was behind
the change.
Co-Chair Sharp admitted it was his staff that removed the
funding from the budget.
Senator Adams suggested that the item would be included in
the final bill because a three-quarters vote was needed to
adopt the capital budget.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DEPARTMENT OF FISH AND GAME
F&G #1: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams spoke to his motion saying the request would
fund the Southeast Region Vessel Facility with #1,300,000
AHFC Bond funds. He stated this was a critical project for
the department. He referred to the Subport facility and the
need to vacate by June 30, 1999 since the site was awarded
to the Mental Health Land Trust. He explained that the
department had secured a new location on the waterfront that
would allow the use of the existing dock. He spoke of the
Department of Fish & Game divisions and the Department of
Public Safety that use the facility.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
F&G #2: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams spoke to his motion saying he wanted $225,000
general funds to go toward the Hardrock Mining Fisheries
Research. He explained the need for the project due to the
surge in hardrock exploration around the state. Over $1
billion would be expended by private industry for
exploration, construction and production this year alone,
according to Senator Adams. This program would allow the
department to work with industry on responsible development
while maintaining critical habitat.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
F&G #3: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams reminded the committee they had seen this
request before for a transfer of $56,000 from general funds
to fish & game funds for the operating costs of the Division
of Subsistence for the fiscal year ending June 30, 1998. He
stated that the division's operating costs had been reduced
by 40 percent since FY97. He stressed the need to keep this
division intact due to the uncertainty of future subsistence
fish and game management.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the nay vote.
F&G #4: Senator Torgerson moved for adoption.
Co-Chair Sharp explained the amendment, which he sponsored.
This would return two projects to the budget and remove the
questionable EVOSS funding. The projects were the Whittier
Marine Boat Ramp and the Whittier Shotgun Cove Access. He
stated that the department assured him that the request did
not exceed the amount of fish and game funds available.
Without objection, the amendment was ADOPTED.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
HSS #2: Senator Torgerson moved to place at the end of the
amendment calendar. Without objection, it was so ordered.
HSS #3: Senator Adams moved for adoption. Co-Chair Sharp
objected. Discussion was as follows.
Senator Adams explained the change of funding for the Public
Health Laboratory to add $275,000 general funds to the
$550,000 other funds. He shared that some project expenses
could not be paid with funds financed with certificates of
participation without jeopardizing their tax-exempt status.
The project needed a small general fund appropriation, he
told the committee.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
HSS #4: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams spoke to his motion concerning the Section of
Nursing Communications. He proposed funding the item with
$400,000 general funds, saying that without the project in
public health centers in twenty locations throughout the
state, the department would be unable to provide effective
transmission of information concerning clients and disease
outbreaks. He spoke of a tuberculosis outbreak in the Nome
area and stressed the importance of the communication
system.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
HSS #5: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams said this amendment would insert," Family
Services Field Safety, Office and Transportation Equipment"
and grant $250,000 general funds to support the addition.
He believed the funds were needed to provide basic logistic
resources to protect family and youth service workers and
clients and to support protection or prevention services for
children.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
HSS #6: Senator Adams moved to place the amendment at the
bottom of the amendment calendar. He stated it was
associated with HSS #2. Without objection it was so ordered.
HSS #7: Senator Adams moved for adoption. Senator Donley
moved to place the amendment at the bottom of the amendment
calendar. Senator Adams objected for the purpose of asking
a question. He wanted to know if there was another
amendment that would accompany this one. Senator Donley
replied that he did not yet know. Without objection it was
so ordered.
HSS #8: Senator Adams moved for adoption. Senator Torgerson
objected. Senator Adams explained the amendment to add
$100,000 general funds for the Statewide Family Inhalant
Program.
Tape #154 Side A
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DEPARTMENT OF NATURAL RESOURCES
DNR #1: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams spoke to his motion to upgrade the Recorder's
Office Equipment for $200,000 general funds and $165,000
general funds for the Recorder's Office Aperture Card
Filming and Digitizing. The agency collected over a million
dollars more than it expended, according to Senator Adams.
He felt it was important to keep an incentive for the agency
to continue bringing in high revenues. He spoke of the prior
year's stakeholders meeting where the customers indicated
that the old equipment was failing and there was a need for
them to be repaired. He also referred to older cards from
the years 1970-77 and said they were barely legible. He
argued that the state needed to spend money to make money.
Senator Phillips made an illegible comment.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DNR #2: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams said he was requesting $200,000 general funds
for Phase IV of the Rural Coalbed Methane project. He
explained this was a continued project to investigate the
coalbed methane potential in rural Alaska. He stressed the
need to investigate alternative means of power
generalization for rural Alaska. He noted it had the
potential of causing a reduction of the rural energy subsidy
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DNR #3: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams explained the request for $300,000 general
funds in two equal parts for the State Oil and Gas
Electronic Interface with Industry and the Oil and Gas
Accounting System Phase II programs. He felt the
installation of these programs would speed up the assessment
and collection of royalties owed the state for oil and gas
leases. It would also standardize the independent
verification of oil and gas royalty and would simplify
calculations and accounting, according to Senator Adams.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DNR #4: Senator Torgerson moved for adoption.
Co-Chair Sharp spoke to the amendment, which he sponsored.
He explained it was a change of title at the request of the
department. "Repositories" would be changed to read,
"Repository Grants."
Without objection, the amendment was ADOPTED.
DEPARTMENT OF PUBLIC SAFETY
DPS #1: Senator Torgerson moved to adopt. Senator Adams
objected for the purpose of asking a question.
He wanted to know the funding source. Senator Torgerson
explained that the current version of the bill would
reappropriate funds set aside for fingerprinting activities
and channel them through the APSIN program. This amendment
would remove $150,000 for APSIN Statewide Communication
System, #300,000 for APSIN Redesign and Implementation, and
$449,000 for Corrections Officer Criminal Justice
Information System Integration for a total of $899,000. The
funds would be redirected into the Department of Public
Safety for the Swackhammer Memorial Wing of the Alaska
Public Safety Academy at Sitka, according to Senator
Torgerson.
Senator Adams supported the Swackhammer Memorial Wing for
women attending the police academy. However, he wanted
someone from the department to address the affects of the
removal of funds from the other projects.
KEN BISCHOFF, Director of the Division of Administration for
DPS came to the table. He said the reappropriation would
eliminate several projects. He added that it was a
complicated issue since the $2.1 million proposed for the
women's wing also included projects for code improvements to
the main building. The added code upgrades needed to be
undertaken at the same time for efficiency reasons,
according to Mr. Bischoff. The amount needed to complete
the new wing, not including the other projects, was about
$1.4 million. He asked the committee's advice on how the
department should proceed with the funding request. DPS
supported the project.
Senator Adams asked the amendment's sponsor his intentions
with two other amendments that proposed different funding
changes to redirect monies to the Swackhammer wing. If the
first passed, what would happen to the others, he wanted to
know. Senator Torgerson replied that if this amendment
passed, he would not offer the next two. He added that his
understanding was that the funds were originally for the
trooper academy and were reappropriated to the fingerprint
programs.
Co-Chair Sharp said that was not the case, and asked Mr.
Bischoff if funds were appropriated two years ago for the
academy. Mr. Bischoff answered that there were no capital
funds appropriated for construction.
Senator Pearce then asked if funds were reappropriated to
the academy. Mr. Bischoff replied that last year, the
Office of Management and Budget attempted to allow them to
participate in the AHFC dividend to receive funding for
construction.
Ms. McConnell added that OMB had proposed the project last
year, but that the Legislature did not fund the request.
Senator Pearce wanted to know why the fingerprinting program
was not implemented when it had been appropriated last year.
Mr. Bischoff responded that in reviewing the options, the
final choice was to join the Western Identification Network,
which was a service bureau. He explained how the department
could participate if funds were granted in the operating
budget at the expense of the capital appropriation.
Senator Parnell expressed a desire to work with the
department to find other funds for the fingerprinting
projects and allow these funds to be spent for the Sitka
academy. Co-Chair Sharp agreed.
The amendment was ADOPTED without objection.
DPS #2: Not offered due to action taken on DPS #1.
DPS #3: Not offered due to action taken on DPS #1.
DPS #4: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams explained this item applied to Fish and
Wildlife Protection and Vessel Repair and would be used
statewide. The request was for $1,221,500 general funds.
Senator Adams understood that the committee intended to
cover some of the needed repairs with funding from AHFC, but
that all the repairs may not be possible under that funding
source. This was because of the bond contracts and the need
for multi-year projects. Therefore, and alternative funding
source needed to be provided.
Co-Chair Sharp commented that he spoke with the bond council
asking if they had any concerns with using the AHFC bonds to
cover the vessel repairs. He concluded that if there were
any problems, the funds would be returned to the capital
budget when it reached the House Finance Committee. He
appreciated the amendment, but felt there was still work to
be done on the matter.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DPS #5: Senator Adams did not offer the amendment due to
action taken on DPS #1. He did refer to projects eliminated
in the earlier amendment saying that he may offer an
amendment on the Senate floor.
DEPARTMENT OF REVENUE
DOR #1: Senator Adams moved for adoption. Senator Parnell
objected. Discussion was as follows.
Senator Adams spoke to his motion saying that the Permanent
Fund Dividend System Design, Phase II would not use general
funds, but one million dollars from the permanent fund.
This project would allow the division to follow the Year
2000 compliance plan. It would also reduce the mainframe
data storage costs and reduce personal service costs by
eliminating many manual steps and operations, according to
Senator Adams.
Co-Chair Sharp countered that the information given to the
committee showed that the Year 2000 compliance was already
being met. Also, the data entry equipment needed could be
purchased with funds left over from the first phase of the
project. He suggested that the item be held until a lower
figure was reached.
Senator Adams responded that phase I had been funded but
that more money was needed to complete the project.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DOR #2: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams stated that the issued had been discussed in
the past. The request was to increase the appropriation
from $4 million to $9 million for Supplemental Housing
Development Grants. AHFC told the committee that $45
million was available in federal HUD funds and state law
allowed 20 percent of construction costs to be covered by
the program, according to Senator Adams. This amendment
would reach that 20 percent, he said. He believed this was
the only state program to create new housing for low-income
Alaskans.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DOR #3: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams explained the request to increase an
appropriation to AHFC from $250,000 to $1,250,000 for the
Homeless Assistance Program. He stressed that the funds
were needed because he was uncertain if related legislation
would pass that would otherwise grant the funds. He spoke
of the need of the program and the need to fund at the level
originally requested.
Co-Chair Sharp responded that the current amount of $250,000
was the same as was funded the year before.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DOR #4: Senator Adams moved for adoption. Co-Chair Sharp
objected. Discussion was as follows.
Senator Adams spoke to his motion to increase the
appropriation to the Senior and Statewide Housing Deferred
Maintenance project. This increase would allow the use of
federal funding, he added. He spoke of the importance of
deferred maintenance on the senior housing.
Co-Chair Sharp commented that the amount funded this year
would match that of the previous year and that it did
include available federal funding.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DOR #5: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams explained that this was a funding source
change from oil/hazardous funds to AHFC receipts for the
Public Housing Environmental Cleanup and Abatement.
Co-Chair Sharp commented that it was determined that the
AHFC had a higher and better use than this project so the
oil/hazardous fund was assigned.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DEPARTMENT OF TRANSPORTATION
DOT #1: Senator Torgerson moved for adoption. There was no
objection and it was ADOPTED.
DOT #2: Senator Donley moved to place it at the bottom of
the amendment calendar. Without objection, it was so
ordered.
DOT #3 REVISED: Senator Pearce moved for adoption and
explained the revision. There was no objection and it was
ADOPTED.
DOT #4: Senator Adams moved for adoption. Senator Pearce
objected. Discussion was as follows.
Senator Adams spoke of the request for federal receipts of
$1,364,600 for the on-going Cordova Lake Avenue Upgrade. He
described the repairs and improvements covered in the
project. He also speculated that once the project was
complete, the municipality would maintain the road.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
DOT #5: This amendment was re-titled UNIV #2 and moved on
the calendar.
DOT #6: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams described the project to provide Emergency And
Non-Routine Repairs To Roads And Aviation statewide. He
talked about projects done under this program in the past
and those needing attention this fiscal year. He qualified
that the amount of funds he was requesting would not cover
the cost of all the listed repairs.
The amendment FAILED by a vote of 1-6. Senator Adams cast
he yea vote.
DOT #7: Senator Adams moved for adoption. Senator Torgerson
objected. Discussion was as follows.
Senator Adams spoke to his motion to add another $550,000 to
the existing $1 million to fund the department's identified
Highway Deferred Maintenance needs. He detailed some of the
specific projects.
The amendment FAILED by a vote of 1-5-1. Senator Adams cast
the yea vote. Senator Parnell was absent.
DOT #8: Senator Adams did not offer this amendment, since it
was the same as DOT #3.
DOT #9: This amendment was submitted past the deadline and
was ruled inadmissible by the Co-Chair.
DOT #10: Senator Pearce moved for adoption.
Co-Chair Sharp, sponsor of the amendment explained its
intent to the committee. It defined the projects the
department would undertake, he said.
Without objection, the amendment was ADOPTED.
DOT #13: Senator Torgerson stated that he would not offer
this amendment.
DOT #14: Senator Torgerson stated that he would not offer
this amendment.
TECHNICAL AMENDMENTS
TECH #1: Senator Torgerson moved for adoption. He explained
the change of the word "bay" to "basin." Without objection,
it was ADOPTED.
TECH #2: Senator Adams moved for adoption. He explained the
changes to clarify the district location. Without
objection, it was ADOPTED.
TECH #3: Senator Torgerson moved for adoption. Co-Chair
Sharp explained the amendment he sponsored as a deletion of
the word "equipment", since the funds would only cover the
costs of license plates and manuals. Without objection, it
was ADOPTED.
FRONT SECTION
FRONT #1 REVISED: Senator Pearce moved for adoption.
Without objection, it was ADOPTED.
FRONT #2: Senator Pearce moved for adoption.
The committee took an At Ease, resuming the meeting at
approximately 5:40 p.m.
Without objection, the motion was ADOPTED.
FRONT #3: Senator Pearce stated that this amendment would be
revised and brought before the committee at a later time.
FRONT #4: Senator Pearce stated that this amendment would be
revised and brought before the committee at a later time.
FRONT #5: Senator Adams moved for adoption. Senator Parnell
objected. Discussion was as follows.
Senator Adams detailed the request for $2 million for the
Children's Trust to capitalize the trust.
Senator Parnell countered that the fund was already
capitalized, was producing income and had a balance of $6.5
million.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
FRONT #6: Senator Adams stated that he would not offer the
amendment pending the revised FRONT #4 and #5 amendments.
FRONT #7: Senator Pearce stated that this amendment would be
revised and brought before the committee at a later time.
FRONT #8: Senator Donley moved for adoption. Discussion was
as follows.
Co-Chair Sharp spoke to the amendment he submitted, saying
it would reappropriate funds granted last year to Alcohol
Rehabilitation for Women and Children. He said the program
had a good track record.
Senator Phillips asked what would happen to the remaining
$300,000 of the appropriation. Co-Chair Sharp replied that
the balance of the account was only $300,000.
Without objection, the amendment was ADOPTED.
BOND PROJECT
BOND PRJ #1: Senator Adams moved for adoption. Senator
Torgerson objected. Discussion was as follows.
Senator Adams spoke of the request for $200,000 revenue
bonds for Mekoryuk Harbor. He said one reason the project
had not been included in the bill was the uncertainty of the
community's ability to raise the needed $400,000 federal
matching funds. The federal funding had been secured and
the state fund portion was needed to complete the project,
according to Senator Adams.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
MUNICIPALITIES
MUNI #1 REVISED: Senator Adams moved for adoption. Senator
Torgerson objected for explanation. Discussion was as
follows.
Senator Adams described the revision to the amendment as a
change of page numbers. He then talked about the project
changes requested by the Senator from Bethel and listed the
projects to be deleted and those inserted.
Co-Chair Sharp asked about the change to the Nondalton
project. Senator Donley requested more information.
Senator Adams described the cities and specific projects
within those communities affected. He stated the amendment
resulted in just a title change.
Senator Donley referred to line stating a project had been
verified by the DOA and asked about the "other funds".
Senator Adams believed that applied to the available capital
matching grants.
Ms. McConnell came to the table at Senator Adam's request.
Co-Chair Sharp said he didn't see where the money was
listed. Ms. McConnell speculated that this was probably a
committee that had not submitted its request at the time the
bill was first drafted. She told the committee that past
Legislatures allowed communities to submit their requests
later. She again verified the existence of the funds and
assured that this appropriation would not change the total
amount of general funds appropriated. She said the full
amount was always appropriated even when the community had
not submitted a particular project. That money was then
held aside in their account until the paperwork was
submitted, she explained.
Tape 154 Side B, 5:45 p.m.
Answering a question of Co-Chair Sharp, Ms. McConnell
explained that some communities would hold the funds for
several years to build a higher balance. This practice was
not unordinary, according to Ms. McConnell.
Senator Donley wanted to know if there was any lapse, and
that what was the maximum number of years this could
continue without legislative action. Ms. McConnell replied
the maximum was five years.
Senator Parnell asked for confirmation that this amendment
would not change the community receiving the funds only the
project within the community. Ms. McConnell again explained
that in the case of the Nondalton project, the paperwork was
submitted late to draw funds from their account.
Senator Adams offered that the situation could also be one
where the community needed to wait until sufficient funds
had accumulated before starting the project.
Senator Parnell wanted to assure that the funds were Capital
Matching Grant funds designated for Nondalton. Ms.
McConnell affirmed that Nondalton would have received the
same amount of funds regardless of the project chosen. She
also stated that this request did not change the amount
granted to any other community.
Co-Chair Sharp suggested the funds could have been in the
account from a previous year since he did not see mention of
it in this budget.
The amendment was ADOPTED without objection.
UNINCORPORATED MUNICIPAL GRANTS
UMG #1: Senator Adams moved for adoption. Discussion was as
follows.
Senator Adams stated that this request was similar to that
of the previous amendment. The reason for the change was to
dictate what projects the communities could spend their
money on in the case of an emergency. The funds had already
been appropriated through the capital matching grants,
according to Senator Adams.
Co-Chair Sharp noted that a couple communities on the list
did not have any projects on earlier lists and concluded
they must have funds in reserve.
There was further discussion about the nomination of capital
projects by communities on the list. REMOND HENDERSON,
Director of the Division of Administration, and TENA YOUNG,
Grants Administrator, both from the Department of Community
and Regional Affairs came to the table to explain the
process of identifying projects.
Senator Parnell was given reassurance by Mr. Henderson that
appropriation of these funds would have no impact to any
other community.
The motion was ADOPTED without objection.
UMG #2: Senator Adams moved for adoption. Co-Chair Sharp
requested Mr. Henderson give the committee a briefing on the
amendment.
Mr. Henderson described the technical changes contained in
the amendment. The first clarified the funds were to go to
Tanacross, rather than Tok, for the Tok Vocation Training
Center. The second change was a request by Tuluksak to
consolidate three projects into the Tuluksak Community
Facilities Renovation and Upgrade. The final change added a
project to the Municipal Matching Grant Section for the
Lower Kalskag, tank farm expenditures and upgrades.
The Department of Administration proposed the Lower Kalskag
project. There was no one present at the meeting to
represent the DOA. Senator Adams explained that the request
was an application from the community for reimbursement from
their grant fund. A letter from the mayor making the
request was mentioned.
There was no objection and the amendment was ADOPTED.
SUPPLEMENTAL BUDGET REQUESTS
SUP #19: Senator Pearce moved for adoption. There was no
objection and the amendment was ADOPTED.
SUP #20: Senator Pearce moved for adoption.
She said the amendment would replace Section 16 with
different language. The new language would allow the
Department of Education to use FY 98 surplus school funds,
according to Senator Pearce. She explained the surplus was
revenue generated by the cigarette tax. The allocation
would allow DOE to reimburse schools for monies spend on
debt service on bonds if SB 11 passed into law. If SB 11
did not pass, the amendment would not be necessary, she
added.
Senator Pearce answered Senator Adams question saying that
the funds were part of FY 99 projected revenues.
Senator Adams then wanted to know if the anticipated $16
million generated would be used statewide. Senator Pearce
said that would depend on the outcome of SB 11 or other
capital budget changes.
The amendment was ADOPTED without objection.
RETURN TO DEPARTMENT OF TRANSPORTATION
DOT #15: Senator Pearce moved for adoption.
Co-Chair Sharp explained that the amendment would solve the
problem with a lack of general funds matching grants for
certain projects included in this year's STIP. It would not
remove any general fund matching grants from any projects
already allocated, according to the co-chair.
The amendment was ADOPTED without objection.
UNIVERSITY OF ALASKA
UNIV #1: This amendment was not offered
UNIV #2 (formally titled DOT #5): Senator Adams moved for
adoption. Senator Pearce objected. Discussion was as
follows.
Senator Adams spoke to his motion to fund the Physical
Education Facility at the Juneau campus. He talked about the
possibilities of selling other buildings and using the
proceeds to help fund this project. He noted that the
Juneau currently had no physical education facility.
Construction would not require general funds, would instead
use university receipts and be maintained with user fees.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
The committee took an At Ease from approximately 6:10 p.m.
to 6:25 p.m.
Co-Chair Sharp ruled that HSS #2 would be held until the
next day's committee meeting.
HSS # 7: Senator Adams moved for adoption.
He offered photographs of the McLaughlin Youth Detention
Center to show the overcrowded conditions. He said he could
wait until the next meeting for consideration on the motion.
Senator Pearce moved to table the motion. The amendment was
TABLED by a vote of 6-1. Senator Adams cast the nay vote.
DOT #2 REV REV: Senator Donley moved for adoption. Senator
Adams objected. Discussion was as follows.
Senator Donley spoke to his motion explaining that the
revised amendment would fine-tune the AMAT issues in the
capital budget. He said there had been a communication
glitch between DOT and the committee and that the department
had not submitted all the projects. This amendment would
correct that and include all the Anchorage projects. He
mentioned the Fifteenth Avenue project as one.
Senator Adams wanted to know if all the insertions were AMAT
projects. Senator Donley said all were but one, Abbott
Loop/Abbott Road.
Senator Adams then asked where the funds would come from for
the excluded project. Senator Donley replied the money
would come from the general fund. Senator Adams suggested
this would then be an addition to the general fund
allocation.
Co-Chair Sharp asked if the funds had been allocated before
and that this amendment was an appropriation of the funds.
Co-Chair Sharp was unsatisfied with the answer he received
and objected to the motion.
The committee took a five-minute At Ease until 6:36 p.m.
Senator Donley stated that everything included in the
amendment was already included in the bill except for the
last item, which was the Ship Creek Trail project. He said
that project was previously excluded because the department
failed to submit it to the co-chair's office for inclusion.
Senator Donley moved to hold the amendment until the next
meeting. Without objection, it was TABLED.
SUP #22: Senator Pearce moved for adoption. Senator Adams
objected. Discussion was as follows.
Senator Pearce explained that the amendment would change the
language in Section 16 again. Department and House and
Senate Finance Committee staff felt the proposed language
would be simpler, according to Senator Pearce. She assured
that the bill would do the same thing in removing FY 98
tobacco tax funds from the school fund to the school
construction account.
Senator Adams remarked that it was not shown that the $15
million was to be distributed statewide. He justified that
since the taxes were collected from rural communities also,
the funding should be spread statewide.
The amendment was ADOPTED by a vote of 6-1. Senator Adams
cast the nay vote.
FRONT #9: Senator Pearce moved for adoption. Senator Adams
objected for question. Discussion was as follows.
Senator Adams wanted to know if the purchase of Utility
Generation Systems would go out for competitive bid.
Senator Pearce replied that the grant would go to the North
Pacific Rim Housing Authority, the housing authority for the
Prince William Sound area. Chenega Bay had a generator,
according to Senator Pearce. She spoke of the bankrupt
utility company and the National Bank of Alaska, who was
currently operating the utility and the village's desire to
purchase and operate the generator. The village did not
have the funds to do so, and this appropriation would allow
the housing authority to buy the generator and help the
village run the program.
Senator Adams' concern was that the appropriation would bail
out the bankrupt utility company. Senator Pearce assured
him that the utility still owed its debts but the generator
would be turned over to the housing authority.
Senator Adams removed his objection. The amendment was
ADOPTED without objection.
SUP #7: Senator Adams moved for adoption. Senator Pearce
objected. Discussion was as follows.
Senator Pearce admitted that the miscellaneous claims of the
Department of Revenue were put into the supplemental request
from the Administration, but she objected to the amount.
She stated that the general funds appropriation limit had
been reached for the supplemental appropriation. There were
no further general funds she stressed.
Senator Adams countered that these were still warrants
needing to be paid at some point and paying them now would
save interest charges.
The amendment FAILED by a vote of 1-6. Senator Adams cast
the yea vote.
Co-Chair Sharp noted there were no more amendments before
the committee at that time. He added that there were some
amendments to be addressed at the next day's committee
meeting. He advised the committee that the Legislative
Finance Division would be updating the figures based on
action taken at this meeting. He announced the committee
would meet at 9:00 a.m. the next day to continue work on
this bill plus the bonding bill. If time allowed, he said
other bills might be addressed. He noted that a bill
drafter and a representative from the Alaska Housing
Authority would be present to assist the committee with the
bonding bill. It was his target to get the capital budget
to the Senate Floor by Tuesday and to incorporate the
capital budget, supplemental budget and the bonding bill
into one.
Senator Pearce announced a Conference Committee meeting the
next day at 3:30 p.m.
ADJOURNMENT
Co-Chair Sharp adjourned the meeting at approximately
6:50 p.m.
SFC-98 (2) 5/03/98 pm
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