Legislature(1997 - 1998)
05/04/1998 09:05 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May, 1998
9:05 p.m.
TAPES
SFC 98 # 156, Side A (000-448)
CALL TO ORDER
Senator Bert Sharp, Co-Chair, convened the meeting at
approximately 9:05 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 JERRY MACKIE; Senator ROBIN TAYLOR;
ANNALEE MCCONNELL, Director, Office of Management and
Budget, Office of the Governor; DUGAN PETTY, Director,
Division of General Services, Department of Administration;
KAREN REHFELD, Director, Division of Education Support
Services, Department of Education; JANET CLARKE, Director,
Division of Administrative Services, Department of Health
and Social Services; KEN BISCHOFF, Director, Division of
Administrative Services, Department of Public Safety; DAN
FAUSKE, Alaska Housing Finance Corporation, Department of
Revenue; JOHN BITTNEY, AHFC, DOR; NANCY SLAGLE, Director,
Division of Administrative Services, Department of
Transportation and Public Facilities; CHRIS CHRISTENSEN,
Staff Council, Alaska Court System; WENDY REDMOND, Vice
President, University Relations, University of Alaska; MIKE
GREANY, Director, Division of Legislative Finance; FRED
FISHER and GINGER PATTON, Fiscal Analysts, DLF; and aides to
committee members and other members of the Legislature.
SUMMARY INFORMATION
SENATE BILL NO. 360
"An Act authorizing the issuance of bonds in the amount
of $257,600,000 by the Alaska Housing Finance
Corporation for certain capital projects; relating to
those bonds and to the appropriation of revenue of the
Alaska Housing Finance Corporation; and providing for
an effective date."
CS FOR SENATE BILL NO. 360(FIN)
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation for certain capital
projects; relating to those bonds and to the
appropriation of revenue of the Alaska Housing Finance
Corporation; and providing for an effective date."
AMEND #1: Senator Pearce moved for adoption. Senator Adams
objected. Discussion was as follows.
Co-Chair Sharp spoke to the amendment, which he sponsored.
This amendment would delete amount in the title and also
changed the amount listed in the body of the bill on page
two, to $196,200,000, he explained.
Senator Adams noted the reduction in the bond amount
pointing out that this would eliminate funding for new rural
schools.
Co-Chair Sharp countered that elimination of the amount in
the title just gave latitude by not stating an amount. He
didn't want to make restrictions by stating an amount in the
title.
Senator Adams asked if that meant there would be an
opportunity to reinstate the deleted projects when the bill
reached the other body. Co-Chair Sharp affirmed. Senator
Adams removed his objection.
The amendment was ADOPTED without objection.
AMEND #2: Senator Pearce moved for adoption.
Co-Chair Sharp noted the amendment removed the section,
which would repeal the bonding authority after the seven-
year period.
Without objection, the amendment was ADOPTED.
BOND #3: Senator Pearce moved for adoption.
Co-Chair Sharp explained the amendment he sponsored, saying
it would add the project list as a separate section.
Noting that the wrong version of the amendment was on the
table, Senator Pearce REMOVED her motion.
BOND #3 REV: Senator Pearce moved for adoption. Senator
Adams objected. Discussion was as follows.
Senator Adams wanted to know the cost of bonding some of the
smaller projects such as those costing $25,000. He
suggested that it might be cheaper to fund the projects
through the general fund. He pointed out some specific
small cost projects.
Co-Chair Sharp pointed out that the projects were grouped
together for bonding purposes.
Senator Adams removed his objection.
BOND #3A: Senator Pearce moved to amend BOND #3 REV to add
language from BOND #3A. Senator Phillips objected.
Senator Phillips said he felt the procedure was improper.
Senator Adams stated that he would not object because the
amendment contained good projects for the Pioneer Homes and
the Department of Education for deferred maintenance. He
noted there were projects missing from this version that had
been included earlier. He detailed some of the ten schools
he felt should have been included; saying that the smaller
communities did not have the ability to bond school projects
and therefore should be included. He said he would work to
have them reinstated when the bill reached the other body.
Co-Chair Sharp pointed out that a school district's projects
had been erroneously removed from the bill and reinstated
here.
Senator Phillips didn't think this bill should be attached
to SB 231. He felt the two should be separate. Co-Chair
Sharp appreciated the concerns.
The amendment to the amendment was ADOPTED by a vote of 5-1-
1. Senator Phillips cast the nay vote. Senator Torgerson
was absent.
BOND #3B: Senator Pearce moved to amend AMENDED BOND #3 REV
to add language from BOND #3B. Senator Phillips objected.
The amendment to the amended amendment was ADOPTED by a vote
of 5-1-1. Senator Phillips cast the nay vote. Senator
Torgerson was absent.
BOND #3C: Senator Parnell moved to amend AMENDED BOND #3 REV
to add language from BOND #3C. Senator Phillips objected.
Senator Parnell pointed out that the language should read
"page 95". This amendment would add $5.297 million in the
bonding for McLaughlin Youth Center Detention Unit Probation
Offices, he explained. He spoke of the need to improve the
facility.
The amendment to the amended amendment was ADOPTED by a vote
of 5-1-1. Senator Phillips cast the nay vote. Senator
Torgerson was absent.
The motion was before the committee to adopt AMENDED BOND #3
REV. Senator Phillips objected.
The amended amendment was ADOPTED by a vote of 5-1-1.
Senator Phillips cast the nay vote. Senator Torgerson was
absent.
BOND #4: Senator Pearce moved for adoption. Senator Phillips
objected.
Co-Chair Sharp explained the amendment he sponsored as
changing the fund source code to AHFC bonds from 1009
revenue bonds throughout the list.
The amendment was ADOPTED by a vote of 5-1-1. Senator
Phillips cast the nay vote. Senator Torgerson was absent.
Senator Pearce offered a motion to move from committee the
amended CS SB 360 (FIN). Senator Phillips objected.
The bill was moved from committee by a vote of 4-2-1.
Senators Phillips and Donley cast the nay votes. Senator
Torgerson was absent.
SENATE BILL NO. 231
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
CS FOR SENATE BILL NO. 231(FIN)
"An Act making and amending capital, supplemental, and
other appropriations; making 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."
DOR #1: Senator Adams moved to rescind action on the
amendment.
Co-Chair Sharp stated that the reason he originally opposed
the amendment was because there was only a request with no
backup. Since that time, backup had been provided and he
was willing to reconsider the request to upgrade data input
and interface equipment for the mainframe. He noted that
the mainframe was Year 2000 compliant but that the software
and data entry equipment needed to be upgraded in order to
comply. The amendment would allow permanent fund money to
be used for this Permanent Fund Division equipment used to
process and distribute dividends.
Action taken on the amendment was RESCINDED without
objection.
Senator Adams moved for adoption of the amendment. Senator
Phillips objected.
The amendment was ADOPTED by a vote of 5-1-1. Senator
Phillips cast the nay vote. Senator Torgerson was absent.
TECH #4: Senator Donley moved for adoption.
Co-Chair Sharp noted this amendment was to fine-tune a
correction.
The amendment was ADOPTED without objection.
TECH #5: Senator Pearce moved for adoption. Senator Adams
objected for a question.
Co-Chair Sharp explained that this amendment would restrict
the use of the state match that previously authorized
federal aid highway projects. The funds could not be used
for aviation or other projects.
The amendment was ADOPTED without objection.
TECH #6: Senator Pearce moved for adoption.
Co-Chair Sharp explained the amendment would change the
funding source definition to general fund from bond fund.
The amendment was ADOPTED without objection.
Senator Adams pointed out that he had submitted three
amendments that were not included in the packets to be
considered. Co-Chair Sharp promised to look into it.
SUP #23: Senator Pearce moved for adoption. Senator Adams
objected for a question.
Senator Pearce spoke to her motion saying it would once
again amend Section 16 from an earlier version, or Section
31 in the new CS. She again explained the amendment would
give FY 98 tobacco tax receipts to the Department of
Education for school construction. She noted there was a
lapse date of June 31, 1999. This latest language was
offered at the request of the drafter, she said.
Senator Adams asked that since the funds were to come from
the previous year's deficient for school construction, did
that make available the exact amount of $15 million that was
put in for school construction. He noted the replacement of
general funds with the tobacco tax receipts.
Senator Pearce said that if and when SB 11 passed with a
retroactive payment for school districts that had already
incurred bonds for school construction, the FY 98 funds
would be available to make payments on those bonds during
FY99. If the legislation did not pass, the funds would not
be allocated.
Senator Adams remembered the debt service amount for the
previous year was about $68 million of general funds.
Senator Pearce stated that this amendment would only
allocate money if SB 11 or similar legislation passed.
The amendment was ADOPTED without objection.
BOND #3 REV: Senator Pearce moved for adoption. Senator
Phillips objected.
BOND #3A: Senator Pearce moved to amend BOND #3 REV to add
language from BOND #3A. Senator Phillips objected.
The committee took an At Ease resuming at approximately 9:35
p.m.
TAPE MALFUNCTION - portion of the meeting not recorded
The committee AMENDED the amendment by a vote of 5-2.
Senators Phillips and Donley cast the nay votes.
BOND #3B: Senator Torgerson moved to amend BOND #3 REV to
add language from BOND #3B. Senator Phillips objected.
The committee AMENDED the amended amendment by a vote of 6-
1. Senator Phillips cast the nay vote.
BOND #3C: Senator Pearce moved to amend BOND #3 REV to add
language from BOND #3C. Senator Phillips objected.
The committee AMENDED the amended amendment by a vote of 6-
1. Senator Phillips cast the nay vote.
Senator Phillips maintained his objection to the adoption
the main amendment.
The committee ADOPTED the amended amendment by a vote of 5-
2. Senators Phillips and Donley cast the nay votes.
BOND #4: Senator Pearce moved for adoption. Senator
Phillips objected.
The amendment was ADOPTED by a vote of 6-1. Senator
Phillips cast the nay vote.
BOND #5: Senator Adams moved for adoption. Senator Phillips
objected. Senator Adams spoke to his motion.
The amendment FAILED to be adopted by a vote of 1-6.
Senator Adams cast the yea vote.
BOND #6: Senator Adams moved for adoption. Senator Phillips
objected. Senator Adams spoke to his motion.
The amendment FAILED to be adopted by a vote of 1-6.
Senator Adams cast the yea vote.
BOND #7: Senator Adams moved for adoption. Senator Phillips
objected. Senator Adams spoke to his motion.
The amendment FAILED to be adopted by a vote of 1-6.
Senator Adams cast the yea vote.
This concluded the amendments for the bill.
Senator Pearce offered a motion to move from committee CS SB
231 (FIN). Senator Phillips objected.
The bill was moved from committee by a vote of 5-2.
Senators Phillips and Adams cast the nay votes.
Co-Chair Sharp announced the next committee meeting would
begin the next morning at 9:00. Senator Pearce announced a
conference committee the next day at 3:30 p.m.
ADJOURNMENT
Co-Chair Sharp adjourned the meeting at approximately
9:45 p.m.
SFC-98 (7) 5/4/98 pm
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