Legislature(2003 - 2004)
03/02/2004 09:03 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 02, 2004
9:03 AM
TAPES
SFC-04 # 25, Side A
SFC 04 # 25, Side B
SFC 04 # 26, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:03 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Lyman Hoffman
Senator Ben Stevens
Senator Con Bunde
Also Attending: CHERYL FRASCA, Director, Office of Management and
Budget; NICO BUS, Administrative Services Manager, Division of
Support Services, Department of Natural Resources; BOB LOEFFLER,
Director, Division of Mining Land and Water, Department of Natural
Resources; ERIC SWANSON, Director, Division of Administrative
Services, Department of Administration; STAN HERRERA, Director,
Enterprise Technology Services Division, Department of
Administration; TOM LAWSON, Director, Division of Administrative
Services, Department of Community and Economic Development; JERRY
BURNETT, Director, Division of Administrative Services, Department
of Corrections;
Attending via Teleconference: From an off net site: ROD
COMBELLICK, Acting Director, Division of Geological and Geophysical
Surveys, Department of Natural Resources; JEFF JOHNSON, Boating Law
Administrator, Office of Boating Safety, Division of Parks and
Outdoor Recreation, Department of Natural Resources
SUMMARY INFORMATION
SB 257-APPROP: CAPITAL PROJECTS
The Committee heard an overview of the Governor's proposal from the
Office of Management and Budget and presentations of the requests
by the Department of Natural Resources, the Department of
Administration, the Department of Community and Economic
Development, and the Department of Corrections. The bill was held
in Committee.
SENATE BILL NO. 257
"An Act making capital appropriations and supplemental
appropriations; capitalizing funds; making other
appropriations; making appropriations under art. IX, sec.
17(c), Constitution of the State of Alaska; and providing for
an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken announced the Committee would begin hearing
overviews of the projects by various departments as well as an
overview from the Office of Management and Budget.
CHERYL FRASCA, Director, Office of Management and Budget, testified
that the FY 05 capital budget, as originally proposed by the
Governor was $1.5 billion. After submission of a number of
amendments, she listed the revised amount at $1.6 billion. She
acknowledged this amount is significant, but pointed out that most
of the funds are federal. She stated that this proposal "took the
opportunity" to leverage State funds rather than issue bonds, of
approximately $50 million from the Alaska Student Loan Corporation
(ASLC). She reminded that the enabling legislation passed from
Committee.
Ms. Frasca furthered that Alaska Housing Finance Corporation (AHFC)
debt capacity would also be utilized to fund the FY 05 capital
budget: approximately $25 million in bonds primarily for water and
sewer projects. She spoke of legislation pending in the Senate
Finance Committee, SB279 that would enable the issuance of these
bonds.
Ms. Frasca also relayed that the Administration had anticipated
utilizing $40 million, categorized as general funds, generated from
the purchase by AHFC of State-owned assets. However, she stated
that upon review, this option was not chosen. She said that
instead, original proposal to appropriate $20 million AHFC bond
proceeds would be increased to $40 million. She informed that
available funding for the initial FY 05 capital budget was
calculated to be short $73 million, and that the decision to not
purchase State-owned assets by AHFC, makes the budget short another
$20 million. She noted this information is based on the December
2003 revenue forecast.
Co-Chair Wilken clarified the amount of funds for the proposed
capital budget is short $20 million general funds.
Ms. Frasca affirmed.
Ms. Frasca listed transportation as the top priority of the
proposed budget, consisting of about 72 percent or $1.2 billion.
She stated that the original budget proposal contained $115
million, which is approximately $286 million higher than the FY 04
appropriation.
Ms. Frasca pointed out that funding for University of Alaska
capital projects would be the second largest expenditure at $153
million total funds, with the third largest expenditures of $148
million planned for Department of Health and Social Services
projects.
Ms. Frasca noted that approximately $1 billion contained in the
proposed capital budget is federal highway project funding,
although the US Congress has not approved appropriation of
approximately $900 million of that amount.
Ms. Frasca stated that several of the proposed projects relate to
Governor Murkowski's infrastructure development program for rural
Alaska, including industrial road programs, development on the
North Slope, and an access road. She noted $12 million is requested
to rebuild bridges along the Richardson Highway, which is part of a
national security project for the natural gas pipeline project. She
also listed the proposed Gravina Island Crossing project and the
Juneau Access road project.
Ms. Frasca directed attention to an amendment to the proposed
budget related to the municipal and unincorporated community
capital matching grant programs. She explained this amendment
"relies" on the "reversal of the sweep" i.e., a combination of
funds "swept into" the Constitutional Budget Reserve (CBR) fund,
and balances in the accounts allocated to several communities. She
noted that much of the unallocated funds were not allocated because
the Governor vetoed the appropriation. This amendment, she informed
would allow appropriation of the available funds.
Co-Chair Wilken stated the Committee would discuss this matter
further with Department of Community and Economic Development
staff.
Department of Natural Resources
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources, noted the projects of
this Department are listed in priority order.
Northern Region (Fairbanks) Office Building Roof
$374,000 AHFC Bonds
Reference No.: 38873
Category: General Government
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Phased - Underway Project
This project funds roof replacement for the Northern Region
Office of the DNR which houses five divisions, will protect
structural and equipment assets, repair damage caused by an
old and deficient roof, and extend the life of the DNR
Fairbanks Office, a DNR-owned building. This project also
enhances energy efficiency and brings the building into closer
compliance with building codes. Currently, roof leaks require
stopgap measures of buckets on floors, and garbage bags tied
to ceiling joists in areas including conference rooms, files,
electrical equipment and public offices. This project will
allow all departmental offices to meet the mission of
providing services to the public in a warm, safe, dry
environment.
Mr. Bus outlined this item.
Forestry Building Repairs to Correct Fire and Life Safety
Deficiencies
$311,700 AHFC Bonds
Reference No.: 38879
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
This project protects State assets by correcting priority
Building Fire and Life Safety deficiencies identified in the
2002-03 Forestry Building Conditions Survey, and identifies
the location and extent of hazardous materials in Forestry
buildings. Safety systems including detectors and alarms will
be improved and installed; electrical circuits will be
properly grounded and bonded; and emergency lighting and
signage will be acquired and installed. These fire and safety
code compliance improvements will be made in Forestry
structures statewide, where the public visits and where staff
regularly works. The project ensures cost-effective management
of State structures with a replacement value exceeding $14M.
Mr. Bus informed that these proposed projects were recommended by a
consultant and identified many code violations and involved several
buildings. He explained the categorization of the projects based on
the severity of risk.
Royalty Oil Settlement Price Reopeners
$200,000 Alaska Student Loan Corporation (ASLC) Dividend
Reference No.: 31371
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2008
On-Going Project
One of the Department's missions is to maximize revenues from
oil and gas production. This CIP will allow the Division to
monitor and reopen existing royalty settlement agreements to
assure that the formulas contained in those agreements reflect
the full value of royalty production. Funds will be used to
retain experts to analyze and evaluate oil and gas values and
tanker, pipeline, field, and processing costs, as well as to
train the Division's commercial analysts and auditors in these
matters.
Mr. Bus told how under the terms of the lease contracts, either
party could open negotiations on the terms and conditions. He
stated that the Department is currently involved in such actions
with Exxon, and the funds would be utilized to employ expert
witnesses and other expenditures for supporting the State's
position. He noted the potential revenue increases of several
million dollars from these re-openers.
Co-Chair Wilken pointed out funding for several proposed projects
using ASLC or AHFC dividends for the first year and general funds
in future years.
Co-Chair Green asked if the Department costs of these re-opener
activities is ever reimbursed from the producers though the
negotiated contracts.
Mr. Bus answered no, that the producers are on the "other side" and
would not want the Department to have the information sought
through these efforts.
Accelerating and Promoting Alaska Peninsula Lease Sale and
Exploration License
$340,000 ASLC Dividend
Reference No.: 38871
Category: Development
Location: Bristol Bay Borough
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
This project will allow the Division to (1) accelerate
critical path processes in order to meet 2004-2005 Alaska
Peninsula Exploration License and Lease Sale, (2) promote the
proposed oil and gas lease sale on the Alaska Peninsula,
tentatively scheduled for October 2005, at industry
gatherings, (3) conduct community informational meetings and
public hearings, and technical meetings with Bristol Bay
Native Corporation (honoring intent of our Memorandum of
Understanding), and (4) obtain gravity data in order to model
the basin configuration.
Mr. Bus read the project description into the record.
Oil and Gas Seismic, Well and Lease Data Acquisition
$320,000 general funds
Reference No.: 33977
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
Proper management and oversight of oil and gas exploration,
leasing and development activities on State lands requires
that the Division maintain a degree of technical parity with
explorers, lessees and operators. The Division's mission of
responsibility managing and encouraging development of the
State's petroleum resources requires that it have funding to
acquire, analyze, preserve, protect and distribute oil and gas
exploration and development data; to maintain the
geoscientific and engineering skills and applications
necessary to do so and to electronically distribute
appropriate technical and lease data to the public to
encourage and accelerate additional development of the State's
petroleum resources.
Mr. Bus expressed that in order to properly manage oil and gas
resources and gather site data on State-owned lands, higher
technical parity is needed. He stated this funding would be
utilized to purchase seismic, well or lease data, to strengthen the
State's position in lease negotiations. He added that these funds
would allow be utilized to upgrade software equipment to current
technology.
Senator B. Stevens compared this request to the request of the
previous fiscal year, notably the $98,000 requested both years for
the purchase of equipment. He asked if new equipment is purchased
each year.
It was established that no representative from the Division of Oil
and Gas was available to address this question.
Mr. Bus indicated the Department would provide a response.
Senator B. Stevens commented that this request indicates sequential
increases at least until the year 2009, although the request of the
prior year indicated decreased annual requests. However, the backup
data is the same for both years' requests.
Unified Permitting Process Phase 1
$983,700 general funds
Reference No.: 37782
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
Phased-New Project
This CIP develops an interactive application system for the
Department of Natural Resources to guide individuals and
businesses to the correct authorization application and guide
them to supply the correct information for that application.
This general fund component of the unified interactive permit
application would first focus on application types within the
Division of Mining, Land and Water. The federal component
focuses on the consistency review process for the Alaska
Coastal Management Program. Subsequently the base system
created will extend to other relevant authorization
applications within the Department, including Title 41 permits
administered by the Office of Habitat Management and
Permitting.
Mr. Bus noted this requests the largest amount of general funds. He
informed that currently many developers must deal with multiple
divisions within the Department and that this project would
streamline the process and would allow businesses to submit one
permit application. He detailed how this system would guide the
applicants through the process. He also noted this would combine
databanks within the Department.
Co-Chair Wilken asked if this program would replace an existing
system and if so, why that system requires changing.
Mr. Bus told of the land administration system installed in 1986.
Although updates have been implemented to make the process "more
friendly", he stated that the outdated system has never been
replaced.
Co-Chair Wilken asked if this is addressed in the Project
Description/Justification statement accompanying this budget
request.
Mr. Bus replied that the intent is that the State accounting system
would be upgraded and that the revenue and billing functions of
this project could be integrated.
Co-Chair Wilken noted that this project is listed as phased, but
that the Project Description/Justification statement provides no
indication of future funding requests. He suggested that an outline
of proposed future expenditure be included.
Mr. Bus listed the various programs this project would affect. He
stated the intent is to complete as much of the project as possible
with this appropriation, but was unsure whether it would be
completed with one appropriation. He relayed this would depend upon
the capabilities of private contractors and the ability to utilize
"off the shelf" software. He was uncertain how many future
appropriations would be requested nor the amount necessary to
complete the project.
Co-Chair Wilken again asked if the Project Description/
Justification statement indicates this.
Mr. Bus answered it does not.
Co-Chair Wilken directed future statements to include this
information.
Senator Hoffman asked if any of the funds be expended for personnel
costs.
Mr. Bus replied that the intent is to utilize private contractors
to implement the new system. He furthered that Department staff
would then be educated on the system to provide future maintenance.
Senator Hoffman asked why an outline of the portion of these funds
that would be expended for personnel, travel and other costs was
not provided.
Mr. Bus explained that several reviews were underway when this
project was originally drafted, including the implementation of an
updated coastal management program and the acquisition of the
habitat permitting functions. He informed that the original
estimated cost of this project was $2 million, and that attempts
were made to determine the maximum amount that could be
accomplished with $1 million.
Senator Hoffman requested the breakdown of expenditures of the $2
million intended for the completed project.
Oil and Gas Reservoir Potential for Gas in the Brooks Range
Foothills Phase 2
$190,000 general funds
Reference No.: 37736
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Phased-Underway Project
This project seeks to catalyze private-sector gas exploration
and production in the Brooks Range foothills by providing
critical data for several prospective reservoir intervals. The
Brooks Range foothills belt may contain over 30 trilling cubic
feet of gas, however, potential gas reservoirs in the region
are poorly understood and pose significant exploration and
production challenges. Low permeabilities in potential
reservoirs encountered in some North Slope wells raise
important questions on gas deliverability. Critical data needs
include a subsurface stratigraphic framework tied to surface
exposures and reservoir quality information. Detailed
geological information will be a key to developing this
resource.
Mr. Bus read the summary statement into the record.
Co-Chair Wilken reminded that this project was fully funded the
previous year at $50,000 and was listed as a one-time project. He
asked why the designation has changed to a phased-underway project
and what the expectations of funding are for future years.
Mr. Bus responded that the designation of one-time project was an
error, and that the intent has always been that this would be an
on-going project costing a total $250,000. He furthered that the
original request for FY 04 was $250,000, but the Governor reduced
the request to $50,000.
ROD COMBELLICK, Acting Director, Division of Geological and
Geophysical Surveys, Department of Natural Resources, testified via
teleconference from an offnet site that the intent is this project
would be completed with this appropriation.
Co-Chair Wilken clarified the phases of the project are FY 04 and
FY 05.
Mr. Combellick affirmed.
Oil and Gas Leasing and Accounting Systems Integration Phase 2
$100,000 general funds
Reference No.: 37969
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
Phased-Underway Project
Phase 2 of this project is requested to meet a critical need
to redesign and expand the existing Oil and Gas Royalty
Accounting System (OGRA) capabilities. The Division of Oil and
Gas Management and Commercial Analysts have a need to extract
royalty accounting and lease data. This FY 05 capital project
will complete the redesign of the existing Accounting and
Lease Systems to eliminate duplications between the two
systems and to enhance reporting and audit capabilities. A
September 2002 completed external review verified the internal
assessment by the Department that the database needs to be
redesigned in order to meet current and expected needs of the
State, and maximize revenue generation and valuation.
Mr. Bus informed that the review was completed and a contract would
be rewarded as part of the first phase of this project.
Recorder's Office Film Conversion Phase 2 (Completion)
$250,000 Receipt Services
Reference No.: 37732
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Phased-Underway Project
One of the primary statutory functions of the Recorder's/UCC
component is to provide its customers with easy access to the
permanent public records. This project supports this statutory
function in two ways: (1) it enables the component to complete
the project started in FY 04 to digitize document images from
existing film records for the past ten years statewide; and
(2) it enhances the mainframe based indexing system by
providing a direct link to the document images, thereby
replacing the cumbersome and time-consuming microfiche process
currently used for customer research and retrieval of these
older records.
Mr. Bus pointed out this project has bee fully funded from receipts
generated from the Recorder's Office. He reminded that beginning in
the year 2001 new recordings were done electronically, and industry
has requested that recordings up to ten years prior be converted to
electronic format. He stated this undertaking would eliminate the
need to manually review microfiche files in the Recorder's Offices.
Senator Bunde asked about previous reluctance of service providers
to participate in this project due to the pricing of bulk film, and
asked how this project would change the pricing.
Mr. Bus responded that the filming process is antiquated and that
information could be processed on compact discs inexpensively and
quickly. He also relayed that the Department solicited input from
businesses to test the new system told of a title company located
in Ketchikan, which contributed funding to lower the pricing.
Senator Bunde asked the actual cost to purchase database
information.
Mr. Bus was unsure.
No representative from the Recorder's Office was present to
respond.
Co-Chair Wilken requested a follow up.
Senator B. Stevens pointed out this request is identical to a
request of the previous year except the amount was $380,000.
Mr. Bus agreed this is the same project, but informed that only
one-third of the necessary funding was appropriated in FY 04.
Remote Recreational Cabins Survey and Appraisals
$550,000 State Land Funds
Reference No.: 38480
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
This CIP authorizes DNR to appraise and contract for surveys
of Remote Recreational Cabin properties. This program
contributes to the development of Alaska's land through the
transfer of land into private ownership. This CIP authorizes
DNR to spend money already being collected from applicants.
Remote Recreational Cabins is a stake-it-yourself program.
After applicants stake their parcels, DNR issues a lease and
collects lessee's money to pay for surveys and appraisals.
Department of Natural Resources contracts with one survey firm
and one appraiser to survey/appraise multiple parcels, thereby
ensuring that surveys are coordinated, completed, and done
efficiently. An estimated 125 parcels will be staked in FY 05.
Mr. Bus overviewed this request.
Senator Hoffman asked the length of the leases.
Mr. Bus answered three years.
Senator Hoffman asked whether the leases are renewable.
BOB LOEFFLER, Director, Division of Mining Land and Water,
Department of Natural Resources, explained the three year process
developed with former Senator Torgerson, with surveys conducted in
the first year, appraisal conducted in the second year and the land
purchased in the third year. He qualified that statute provides an
option for lease renewal, but remarked that it is expected the
sites would be purchased rather than leases renewed.
Senator Hoffman asked if the appraisals are conducted by the State
or contracted to another party.
Mr. Loeffler replied that the State contracts or conducts itself, a
"key parcel appraisal" to give potential buyers an idea of the
general prices. For some parcels, he stated the Department applies
factors to determine a final appraisal and others are contracted
out. He stressed that all surveys are contracted to a private
party.
Senator Hoffman asked the number of acres parceled out to date.
Mr. Loeffler qualified the program was implemented in the year
2001, and therefore the first parcels would be leased this year. He
listed the average parcel size at 14 acres.
Land Disposals (New Subdivisions; Kobe North and Fish Creek Ag
Sales)
$1,975,000 State Land Fund
Reference No.: 38886
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
One-Time Project
This project would authorize the Department of Natural
Resources to proposed, design, develop, survey, and, if
required by municipal platting authorities, build roads for
new subdivisions and agricultural sales. This CIP would
authorize DNR to spend money from previous land sales that has
been deposited in the LDIF. Lands would be offered to the
public by auction. If this project and the operating budget
increment are fully funded, DNR intends to offer at least 100
new parcels for sale in FY 05, 200 in FY 06 and 300 in FY 07.
The land sale program continues to the development of state
land by giving Alaskans an opportunity to purchase land, while
creating an income base for the State.
Mr. Bus remarked that this project is self-funded. He explained
that revenue from land sales is reinvested.
Co-Chair Wilken asked if the revenue is generated from the
operating fund then deposited into the State land fund.
Mr. Loeffler replied, "the money comes out of the land disposal
income fund then flows back, and then the revenues and profits go
back in the land disposal income fund."
Co-Chair Wilken asked the source of funds in the land disposal
income fund.
Mr. Loeffler replied these funds as the revenues from land sales.
He characterized this as working capital, which is used to achieve
the highest level of return.
Mr. Bus furthered that statute imposes a limit on the balance of
this fund at $5 million. Any additional revenue, he stated, is
deposited into the State general fund.
Co-Chair Wilken asked if the program is working as envisioned.
Mr. Loeffler answered it is.
State Park Emergency Repairs
$300,000 Receipt Services
Reference No.: 6843
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
The project will promote the Department's mission of providing
outdoor recreational opportunities by funding emergency
repairs to park units to protect visitor health and safety by
providing safe, clean, and well-maintained units. Projects
will upgrade or replace basic facilities at parks including
ranger stations, outhouses, drinking water systems, trails,
and camping sites so that these items will not be added to the
existing deferred maintenance backlog.
Mr. Bus stated these projects would be funded from revenues
collected from park user fees, and would address any emergency
within the State's 121 park units.
Airborne Geological and Geophysical Mineral Inventory
$200,000 general fund
Reference No.: 6852
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
The Airborne Geophysical/Geological Mineral Inventory project
seeks to catalyze private-sector mineral development
investment. Alaska State lands that: 1) have major economic
potential; 2) can be developed in the short term to provide
high quality jobs for Alaska; and 3) will provide economic
diversification to help offset the loss of Prudhoe Bay oil
revenue. Mineral resources comprise a major part Alaska's
economic assets, yet the location and magnitude of these
resources are largely unknown. Knowledge of the State's
mineral resources is a key to orderly development of the State
and maintenance of a stable economy.
Mr. Bus stated this is "repeat project". He noted this request is
"modest" compared to previous appropriations.
Co-Chair Wilken recalled that the funding was not appropriated for
this project the previous year to allow the program to "catch up
with itself".
Mr. Bus affirmed that the last appropriation was made in FY 03.
Co-Chair Wilken commented this has been a successful program in the
interior and southeast regions of the State.
Alaska Cadastral Project
$400,000 Federal Receipts
Reference No.: 37768
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
Phased Project
The goal of this project is to create an integrated system for
sharing land parcel information between federal, state, local,
and Native organizations. The Alaska Cadastral Project will
enable anyone to access current rights, interests and boundary
information involving real property. The project builds
partnerships for the collection, management, standardization,
and sharing of Alaska's land parcel information to improve
business processes and support decision making. The project
offers several strategic areas for improving the services of
State and local government by improving the quality and
accessibility of essential business information related to
real property. See the project web site http:cadastral.info
Mr. Bus outlined this request.
National Historic Preservation Fund Federal Grant Program
$950,000 Federal Receipts
Reference No.: 6865
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 09/30/2006
State Match Required
On-Going Project
The National Historic Preservation Fund (NHPF) is a federal
matching grant project with a 60% federal and 40% State match.
It provides the State a basic historic preservation program
including planning, survey, inventory, project review and
public education. Cooperative agreements with federal agencies
and grants from federal programs, which do not require match,
fund cultural resource management projects. The historic
preservation program contributes to the Department's mission
through the development, conservation and use of Alaska's
heritage properties which is consistence with the public
interest and the Alaska Historic Preservation Act.
Mr. Bus remarked that this project has been highly successful.
Co-Chair Wilken asked if the funding to provide the necessary 40
percent match is included in the proposed FY 05 operating budget.
Mr. Bus answered it is.
Alaska Minerals Information At Risk Program: Mining and Lands
Records Integration Completion
$500,000 Federal Receipts
Reference No.: 34095
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
Phased Project
This project seeks to expand opportunities for exploration and
development of mineral resources in Alaska. It will develop a
new public interface to a wide range of multi-agency
information on mineral resources and mining properties via the
Internet. Agency business practices are being modified to
assure that timely updates are rapidly incorporated into the
system.
Mr. Bus read the summary into the record.
State Park Deferred Maintenance
$50,000 Receipt Services
Reference No.: 38878
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
State Parks has identified over $42 million in deferred
maintenance needs. This project will promote the Department's
mission of providing outdoor recreational opportunities by
funding deferred maintenance repairs to park units to protect
visitor health and safety by providing safe, clean, and well
maintained units. Projects will upgrade or replace basic
facilities at parks including ranger stations, outhouses,
drinking water systems, trails and camping.
Mr. Bus stated this funding would be utilized to address the most
critical deferred maintenance needs.
Co-Chair Wilken asked how this request differs from #6843, State
Park Emergency Repairs.
Mr. Bus replied the first item addresses the critical projects.
Co-Chair Wilken clarified both would be supported with user fees.
Mr. Bus affirmed.
Senator B. Stevens referenced the Project Description/Justification
statement claim that repairs of the identified projects could no
longer be made using only duct tape and bailing wire. He commented
that such repairs are indicative of Alaskan ingenuity.
Alaska Mineral, Energy and Geohazards Inventory Federally
Funded Projects
$2,410,000 Federal Receipts
Reference No.: 38144
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
The Alaska, Mineral, Energy, and Geohazards Inventory
federally funded project comprises a group of geological data
generation, organization, and public data delivery tasks that
are directly tied to geological inventory mandates in AS
41.08, the legislatively designated outcome measures for DGGS.
This project provides receipts authority for committed Federal
funds specifically directed towards making Alaska geological
information more widely available and more easily accessible.
Mr. Bus referenced the Project Description/Justification listing of
the proposed projects.
Senator Bunde understood that matching funds are not required to
receive federal funding for all the proposed projects. He asked if
for those projects requiring matching funds, whether in-kind
services could be substituted.
Mr. Bus replied that in-kind services could be utilized and
performed by the Department, other State agencies, and other
organizations.
Senator Bunde pointed out that the previous request, #38878; users
of the State parks would pay the cost of the project through fees.
He asked if those parties that would undertake mining activities
pay the costs of this project.
Mr. Bus countered that many projects are "aimed at industries" that
do not have the resources to undertake these projects. He also
pointed out that because these are prospective projects, the actual
users are not yet known.
Senator Bunde characterized this project as an on-going subsidy.
SFC 04 # 25, Side B 09:50 AM
Federal and Local Government Funded Forest Resource and Fire
Program Projects
$3,800,000
$2,800,000 Federal Receipts
$1,000,000 Statutory Designated Program Receipts (SDPR)
Reference No.: AMD37769
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
On-Going Project
This project provides receipt authority for federal and local
government funds including federal National Fire Plan
allocations to Alaska. Funding provides specific support
including the ability of the State and local government to
educate, mitigate, prepare for and respond to threats of
wildland fire. This authority will allow State direction to
cooperative forestry projects in which State, federal and
local governments have mutual interest to participate.
Projects also include forest health initiatives, insect and
disease examination, internships, and community and urban
forest inventories; and, local government funding for hazard
fuels reductions, fuels treatment, and forest stewardship
projects.
Mr. Bus outlined this request.
Cooperative Forestry and Fire Pass-Through Federal Grants
$800,000 Federal Receipts
Reference No.: 6883
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
The Division of Forestry utilizes federal funds for pass-
through grants to achieve improved local capabilities for
wildland fire suppression; enhanced local community
environmental conditions w/tree planting and community
forestry; increased productivity from non-industrial private
forest land holdings. Federal fund pass-through grants enhance
local communities' and local governments' self-sufficiency and
self-reliance.
Mr. Bus reminded that this project is repeated every year.
Senator B. Stevens referenced #AMD37769, Federal and Local
Government Funded Forest Resource and Fire Program Projects, and
asked if this project had been undertaken in past years.
Mr. Bus responded that the Kenai Peninsula Borough collects the
statutory designated program receipts, as a federal grant, for this
project and the Department has anticipated the funds would be
needed for FY 05 and FY 06.
Abandoned Mine Lands Reclamation Federal Program
$1,500,000 Federal Receipts
Reference No.: 6855
Category: Public Protections
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
The Legislature enacted the Alaska Surface Coal Mining Control
and Reclamation Act in 1983 (AS 27.21). One of the main
purposes of the Act was to promote the reclamation of areas
mined and left without adequate reclamation before enactment
of the federal Surface Mining Control and Reclamation Act of
1977. These mined areas endanger public health and safety,
substantially degrade the environment and prevent the
beneficial use of or cause damage to land and water resources.
This program will employ up to 50 Alaskans in private sector
jobs as part of the reclamation efforts. As a result of the
reclamation effort, State lands that are currently not usable
will be made available for development and use by Alaskans.
Mr. Bus informed that each year sites are selected and contracted
out for reclamation.
Senator Bunde asked the locations of sites identified for
reclamation.
Mr. Bus stated he would provide the information.
Senator Bunde asked if this project would extend to reclamation of
lands on the North Slope damaged from oil exploration activities.
Mr. Bus replied that this program pertains primarily to surface
mining activities.
Co-Chair Wilken asked whether privately operated mines have access
to these funds.
Mr. Bus responded that the businesses are levied the federal
Abandoned Mined Land fee and that the federal government makes
determinations of eligible recipients of the funds.
Senator Bunde observed that efforts are made in some instances to
preserve historical mining sites.
Land and Water Conservation Fund Federal Grants
$1,250,000 Federal Receipts
Reference No.: 32552
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
LWCF is a 50/50 matching grant program that provides funding
for the development of outdoor recreation areas and
facilities. More than any other state in the union, Alaskans
recreate outdoors. LWCF is consistent with DNR's mission in
that, in terms of outdoor recreation, it develops, conserves
and maximizes Alaska's natural (outdoor recreation) resources
consistent with the public interest.
New or rehabilitated LWCF projects increase the number of park
visits, furthering a desired end result. Privatizing the
management of a LWCF assisted site is consistent with LWCF
policy, addressing a second desired end result. LWCF program
staff is responsible for monitoring compliance with LWCF
regulation and policy.
Mr. Bus told how local communities could apply for the
establishment of parks within their boundaries. He explained that a
board reviews proposals for approval.
Co-Chair Wilken asked the source of the necessary matching funds.
Mr. Bus replied that organizations, such as soccer clubs and other
local groups, provide these funds.
Co-Chair Wilken asked if distribution of these grants would be
prorated if the legislature did not appropriate the entire amount
of matching funds required.
Mr. Bus clarified that the State does not provide the matching
funds, but rather acts as a pass-though entity to appropriated the
federal funds to local communities that contribute the required
match.
Senator Hoffman asked the historical average of the requests for
these programs.
Mr. Bus replied that the success rate to participate is high and
dependant upon the proposal and ability to provide the necessary
matching funds.
Alaska Boating Safety Program
$600,000 Federal Receipts
Reference No.: 32553
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
State Match Required
On-Going Project
Under [AS] 41.21.010 and 41.21.020 the Department is, among
other things, responsible for fostering the growth and
development of recreational opportunities for the health,
welfare, education and enjoyment of the public, providing
consulting services to develop recreational activities and
programs, providing programs and clearinghouse services on
park and recreation matters, and other duties as prescribed by
law. The program contributes to this mission (and the
additional responsibilities prescribed by law under AS 05.25)
by working to reduce recreational boating facilities and
accidents, and promoting safe, enjoyable recreational boating
in Alaska, primarily through boater education.
Mr. Bus informed this program is intended to reduce fatality rates.
Co-Chair Wilken asked how the State matching funds are generated.
Mr. Bus was unsure.
JEFF JOHNSON, Boating Law Administrator, Office of Boating Safety,
Division of Parks and Outdoor Recreation, Department of Natural
Resources, testified via teleconference from an unspecified
location, that State matching funds are required to receive the
U.S. Coast Guard funds, and have been garnered from various
sources.
Senator Bunde recalled recent legislation relating to collection of
boat registration fees and asked if these funds would be used for
the State match.
Mr. Johnson replied that the Division of Motor Vehicles collects
over $400,000 in boat registration fees, of which $380,000 is
utilized for the registration expenses and the remainder is
deposited into the general fund.
Senator Bunde asked if any of the revenue collected from boat
registration fees could be utilized for the State match required
for this project.
Mr. Johnson answered it could.
Snowmobile Trail Development and Program Grants
$200,000 Receipts Services
Reference No.: 33690
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
Snowmobiling is one of Alaska's fastest growing outdoor
recreation activities. Funds are needed to develop and
maintain trails and trailheads to provide for safe riding
opportunities and to educate riders about safety concerns.
Funds for this program are provided by snowmobile registration
fees paid by Alaskans. Funds are distributed in the form of
matching grants for trail and trailhead development and
maintenance, safety education, and trail identification.
Mr. Bus outlined this item.
Co-Chair Wilken requested a list of recipients of these funds the
previous year. He noted the "Project Support" list included in the
Project Description/Justification statement and asked the
percentages of distribution to the listed parties. He remarked that
users want assurance that snow machine activities receive the
benefits of the $25 user fees.
National Recreational Trails Federal Program
$695,000 Federal Receipts
Reference No.: 6854
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
Alaskans rely on trails for recreation, subsistence, and
travel between communities. These trails need maintenance to
ensure safe passage and to ensure that they remain open and
available for use. Funds are distributed by 80-20 matching
grants for recreational trail and trailhead development and
maintenance, and for education programs relating to trail
safety and environmental protection. Grants are awarded to
organizations, agencies and local governments.
Mr. Bus stated this is a recurring project.
Forest Legacy Federal Grant Program in Wood-Tikchik State Park
$4,500,000 Federal Receipts
Reference No.: 34881
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
The Forest Legacy Program provides federal funding for
acquisition of high-value private forestland that is
threatened with conversion to non-forest use. Legislative
intent targets private in-holdings adjacent to, or within
existing conservation units (parks, refuges, etc.) that are
primarily used for fish and wildlife habitat, outdoor
recreation and traditional access that would be disrupted,
destroyed, or degraded if the private property were to be
converted to non-forest use. This allows the conservation unit
manager, such as State Parks, to conserve the land for outdoor
recreation opportunities and maximize the use of critical
areas for all members of the public.
Mr. Bus informed that a Native corporation owns the land proposed
for acquisition and is willing to sell the land for conservation
purposes.
Co-Chair Wilken clarified that at a cost of $4.5 million in federal
funds 1,153 acres of land would be removed from the tax base.
Coastal Wetlands Grant - Nushagak Bay Watershed Conservation
Phase 1
$1,000,000 Federal Receipts
Reference No.: 39042
Category: Natural Resources
Location: Aleknagik
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
In Phase I of this project (the FY 05 request), the Alaska
Division of Parks and Outdoor Recreation will acquire, either
by perpetual conservation easement or fee simple, 7,000 acres
of wetland in-holdings within Wood-Tikchik State Park,
including the four-mile long Agulowak River, associated
uplands and approximately 12 miles of freshwater shorelines
within the Nushagak Bay Watershed. The principal objective of
this project is to protect a major anadromous fish system and
perpetuate the fish, wildlife, habitat and public benefits
they support within and outside the Park.
Mr. Bus outlined this project.
Co-Chair Wilken clarified the total cost of this project would be
$3 million and that a total of 7,000 acres would be purchased.
Mr. Bus affirmed.
Co-Chair Green pointed out this funding would pay the purchase
cost, but no maintenance expenses.
USGS Streamgaging Cooperative Program
$230,000 SDPR
Reference No.: 37762
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
DNR will accept funds from the private sector, local
government and other state agencies, and pass those funds
through to USGS as part of its stream gaging coop program.
Industry, State and local government often asks, and pays for,
the USGS to install and operate a stream gage. The information
is necessary for resource development and for permitting
projects such as mining, hydroelectric, or public water supply
which fits into DNR's overall mission. If the private sector
pays the USGS directly, USGS can't provide matching funds. But
if the funding is passed through a State agency, the funds can
be matched at 100% by the federal government.
Mr. Bus read the summary statement into the record.
Mental Health Trust Land Development
$650,000 Mental Health Trust Authority Authorized Receipts
(MHTAAR)
Reference No.: 6853
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
On-Going Project
The Trust Land Office (TLO) will contract for services to
supplant its core operations. Typically the services are
related to nonrecurring projects such as the administration of
a large timber sale, the evaluation of a particularly complex
transaction, development of an asset management plan for
certain trust lands or resources or significant improvements
to the TLO's information management system. The TLO, supported
by funds derived from Trust Income, manages and develops
Alaska Mental Health Trust lands on behalf of the Alaska
Mental Health Trust Authority. Our mission is to protect and
enhance values of and maximize revenues from Alaska Mental
Health Trust Land.
Mr. Bus outlined this request.
Agriculture Industry Federally Funded Project Opportunities
$750,000 Federal Receipts
Reference No.: 39269
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
One-Time Project
This project will incorporate several feasibility studies for
various segments of agriculture production and contribute to
the Department's mission by creating opportunities to benefit
the agriculture industry. This will result in increased sales
statewide and provide export possibilities.
Mr. Bus gave examples of reindeer and ethanol as agriculture
products these funds would be utilized to promote.
Co-Chair Wilken clarified this is intended to be a one time
project.
Mr. Bus replied this is the intent to date.
Senator Bunde questioned the feasibility of encouraging the
development of ethanol that would require continued subsidies, as
this product has never "paid for itself". He also opined that once
ethanol was developed, it not be marketed due to high shipping
costs.
Mr. Bus explained this project would provide for feasibility
studies to determine whether certain agricultural ventures would be
viable in Alaska.
Co-Chair Wilken informed that this issue arose because the Director
of the Division of Agriculture was directed to identify new ways to
develop agriculture in the State.
Plant Material Center Shop and Storage Shed Planning and
Design
$375,000 Federal Receipts
Reference No.: 39270
Category: Natural Resources
Location: Palmer (Greater Palmer)
Election District: Greater Palmer
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
The Alaska Plant Materials Center (PMC) is in dire need of a
replacement repair shop and equipment shed. The building being
used for most of these functions is well over 60 years old.
The Alaska Plant Materials Center supports many federal
projects in the State. The equipment used on federal programs
needs protection from the weather and is in need of constant
repair, requiring shop space. A new facility will provide
space for both storage and repair. This project funded by the
USDA Natural Resource Conservation Service funds planning and
design for a new building, not the actual construction.
Federal funding for constructed may be pursued after the
results of the planning and design are completed.
Mr. Bus informed that federal Occupational Safety and Health
Administration (OSHA) inspections found many safety issues.
Co-Chair Wilken asked the estimated cost of a new building.
Mr. Bus answered the amount would likely be a couple million
dollars.
Co-Chair Wilken requested maps of the affected areas of land
subject to conservation purchase in #34881, Forest Legacy Federal
Grant Program in Wood-Tikchik State Park, and #39042, Coastal
Wetlands Grant - Nushagak Bay Watershed Conservation Phase 1.
Mr. Bus indicated he would provide this information.
Senator Hoffman asked if the Department's proposed budget includes
any capital projects intended to deliver natural gas resources to
market.
Mr. Bus answered there are no such capital projects included in
this budget request. He noted that the Department is defining the
requirements and would submit project proposals in the future.
Department of Administration
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration, noted the Department has submitted
funding requests for eight projects totaling $6.9 million, of which
$250,000 is general funds.
Labor Contract Negotiations and Arbitration Costs
$500,000 ASLC Dividends
Reference No.: 39014
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
Phased-Underway Project
Funding is necessary for continued negotiation with most or
all bargaining representatives and anticipated interest
arbitration with ASEA and potentially other units requiring
significant travel, expert witnesses, wage and benefit
analysis, and other expenses not normally incurred in the
Division's routine operations.
Mr. Swanson reported that the State is currently negotiating
employment contracts with all 12 bargaining units. He stated this
funding would be utilized to continue the process.
Senator Bunde questioned the inclusion of this item in the capital
budget, characterizing the expense as operating.
Mr. Swanson replied this would be a special appropriation that is
"project nature" and not a regular component of the operating
budget. He noted the $150,000 appropriation in the FY 04 operating
budget.
License Plates, Tabs, and Manuals
$385,000 Receipt Services
Reference No.: 38867
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
Funding will provide for the purchase of license plates and
tabs to maintain statewide stockage levels necessary for their
required continued issuance. The Division is required by
statute (AS 28.10) to issue plates and tabs and cannot run
out. The funding also provides for the purchase of the four
different driver manuals and law books that must be available
at all DMV offices.
Mr. Swanson noted this is an annual request.
Maintenance Projects for Facilities Outside the Public
Building Fund
$250,000 general funds
Reference No.: 39034
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2006
On-Going Project
Funding is necessary for maintenance projects in facilities
outside the public building fund.
Mr. Swanson informed that the Department of Administration provides
maintenance for six buildings located in Juneau: the Governors
Mansion, the third floor of the Capitol Building, Diamond
Courthouse, Archives and Records Center, the Alaska State Museum,
and the Subport building. He stated this funding request would be
utilized for exterior repairs to the Dimond Courthouse.
Juneau Subport Remediation Survey
$30,000 ASLC Dividends
Reference No.: 39036
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
Funds are necessary to determine the project scope and plan
for remediation of the Juneau Subport Building, which is
located on land owned by the Alaska Mental Health Trust
Authority (AMHTA). The AMHTA has advised the Department of
Administration that it will not renew the land lease beyond FY
05.
Mr. Swanson pointed out the lease for this facility expires at the
end of the upcoming fiscal year, at which time the building would
be demolished. The State, he reported, is responsible for
addressing asbestos or soil contaminations found during the
demolition. He remarked that the building is "World War II vintage"
and therefore the extent of contaminants is unknown.
Alaska Land Mobile Radio
$400,000 ASLC Dividend
Reference No.: 39024
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Phased-Underway Project
Funding will be used to continue the process of converting
Federal, State, and local emergency communications systems to
technology that will provide for interoperability (the ability
of different agencies with different communications systems to
communicate across jurisdictions and with each other).
Mr. Swanson qualified this expense is more accurately an operating
budget item, however, the project is not expected to continue in
perpetuity. He stated the completion date is estimated to be during
2007, at which time this funding would no longer be needed.
Senator Dyson asked whether this funding would be utilized to
construct repeater stations, or to purchase radios.
Mr. Swanson replied that most of this funding would be allocated to
the salaries of staff working on this project. He explained that
other funding sources, including federal funds, are utilized for
purchasing the equipment.
Senator Dyson assumed much of the costs of maintaining the sites,
and the individual radios would be borne as a homeland security
expense.
Mr. Swanson stated that the project director would be better
informed on this matter is unavailable.
Co-Chair Wilken asked the total estimated cost of the entire Alaska
Land Mobile Radio system.
Mr. Swanson deferred to the unavailable staff.
Co-Chair Wilken characterized this project as a "moving target for
several years". He offered to invite Jack Phelps to give a
presentation on this project to the Committee.
STAN HERRERA, Director, Enterprise Technology Services Division,
Department of Administration, testified that several cost estimates
have been made and that he would provide the most current estimate.
Co-Chair Wilken commented that this request is only a portion of
the $20 million to $30 million cost of the project.
Mr. Herrera replied this is likely true.
Enterprise Technology Services Equipment Replacement Fund
$1,814,000 Information Services funds
Reference No.: 39286
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
On-Going Project
The purpose of this project is to purchase/lease the top
priority equipment and services that will meet current and
expected customer demand, within the amount collected through
ETS chargeback rates for depreciation. These expenditures will
maximize federal participation in this internal service fund.
Mr. Swanson noted this is an annual request to replace and refresh
computer equipment. He referenced the list of intended purchases
included in the Project Description/Justification statement.
Co-Chair Wilken asked if the funding source is from charges
assessed to other State agencies for information technology
services.
Mr. Swanson affirmed.
Public Building Facilities Projects
$3,000,000 Public Building funds
Reference No.: 39025
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Funding is necessary for continued maintenance of State-owned
facilities that make up the group known as Public Building
Fund facilities. These facilities include the State Office
Building, the Alaska Office Building, the Community Building,
the Douglas Island Building, the Atwood Building, the
Fairbanks Regional Office Building, the Court Plaza Building,
and the Dimond Court House.
Mr. Swanson noted the funds are collected from State agencies
occupying the said facilities.
Central Mail Service Equipment
$550,000 Inter-Agency (I/A) Receipts
Reference No.: 39035
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
Funding is necessary for replacement of mail inserting and
sorting equipment.
Mr. Swanson stated the intent is to accumulate funds to replace
equipment as it becomes obsolete.
Department of Community and Economic Development
TOM LAWSON, Director, Division of Administrative Services,
Department of Community and Economic Development, testified to the
seven projects the Department was requesting funding to undertake.
Re-Engineering Insurance Business Processes
$525,000 Receipt Services funds
Reference No.: 39280
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2007
One-Time Project
This project will automate and modernize the Division of
Insurance's various on-line systems. The purpose is to
redesign the business processes currently in place to assure
competitive, viable, ethical and lawful insurance is available
to Alaskans.
Mr. Lawson informed this project would be funded with revenues
collected by the Division of Insurance. The result, he stated,
would be a "web based environment" that would allow all Division
offices to interface.
Community Development Grants
$9,375,000
$9,200,000 Federal Receipts
157,100 ASLC Dividend
17,900 AHFC Dividend
Reference No.: 38943
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
On-Going Project
Multiple federally-funded programs, enabling DCED to provide
grants to communities and non-profit organizations for
community development.
Mr. Lawson gave examples of the various projects, including flood
plain and erosion management program, economic development, multi-
use facilities, and mapping.
Co-Chair Wilken asked if the source of the $9.2 million federal
funds was entirely from the Federal Emergency Management Agency
(FEMA).
Mr. Lawson replied that $300,000 is FEMA funds and $300,000 is from
the US Department of Agriculture, of which both sources require
State matching funds. He pointed out that an additional $8.6
million appropriation of federal Denali Commission funding would
not require State Matching funds.
Community Block Grants
$6,000,000 Federal Receipts
Reference No.: 38946
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
Multiple federally funded programs, enabling DCED to provide
grants to communities and non-profits that provide services
and/or benefit the low- to moderate-income individuals.
Mr. Lawson stated this project provides funds for use serving low-
income residents and includes community services block grants,
grants for food programs, and emergency shelter block grants. He
listed two major sources of this federal funding: the US Department
of Health and Social Services and Housing and Urban Development
(HUD).
Language Section: Electrical Emergencies
$330,000 Rural Electric fund
Reference No.: 32590
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
To provide technical support when an electric utility has lost
the ability to generate or transmit power to its customers and
the condition is a threat to life, health, and/or property in
the rural community.
Mr. Lawson outlined this item.
Language Section: NPR-A Impact Grant Program
$3,190,170 NPR Fund
Reference No.: AMD38948
Category: Development
Location: Barrow
Election District: Arctic
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
This amendment changes the fund source from Federal to NPR
[National Petroleum Reserve]. Grants to communities for public
facilities and services. Priority is given to those
communities directly or severely impacted by the leases and
development of oil and gas within the National Petroleum
Reserve.
Mr. Lawson pointed out that this item is included in the language
section of the Governor's version of the FY 05 operating budget
legislation. He characterized the fund source change as technical.
Mr. Lawson informed that this fall applications for projects
totaling over $7.5 million were submitted and that ten projects
were chosen, at a cost of $3,030,000.
Co-Chair Wilken referenced a report [copy not provided] detailing
this program.
Co-Chair Wilken remarked that this continues the problem with a
funding source that is contrary to the Alaska Constitution. He
reported that efforts were undertaken during the previous
legislative interim to address this issue.
Federal Energy Projects
$35,750,000
$35,000,000 Federal Receipts
500,000 I/A Receipts
250,000 ASLC Bonds
Reference No.: 38950
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
State Match Required
2% Minimum State Match Required
On-Going Project
Multiple federally funded energy programs of Bulk Fuel
Upgrades, Rural Power Systems Upgrades, Alternative Energy and
Energy Efficiency projects.
Mr. Lawson overviewed this item. He pointed out that the majority
of funding for these projects would be appropriated though the
Denali Commission and referenced the Project Description/
Justification statement outlining this.
Morris Thompson Cultural and Visitors Center
$250,000 ASLC Dividend
Reference No.: 39289
Category: Development
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
Grant to provide funding for the Morris Thompson Cultural and
Visitors Center.
Mr. Lawson stated this request would provide funding to continue
the development of the Center. He listed the total cost of this
multiple phased project at $23 million.
Co-Chair Wilken relayed that he attended a presentation given by
the Doyon Native Corporation, which provided a $500,000 donation to
begin the fundraising efforts for this project.
Mr. Lawson next addressed two items included in an amendment to the
Governor's proposed FY 05 capital budget relating to Municipal
Capital Grants and Unincorporated Matching Grants. He explained
that these items pertain to balances held on behalf of
municipalities and unincorporated communities for certain projects.
He stated that these funds "got caught up on the CBR sweep" and
were not retained from the previous fiscal year. This amendment, he
explained, would reinstate these funds and would allow the
communities one year to access and expend them. He pointed out that
if the funds were not expended within the one-year time period,
they would lapse into the State general fund. He further noted that
balances less than $1,000 would not be reinstated. He qualified
this provision is dependant upon passage of SB 283.
Co-Chair Wilken clarified the $4 million is intended for those
communities that "saved money" from prior appropriations, which
were eliminated with the CBR sweep. He asked whether this amendment
would require additional funds.
Mr. Lawson answered it would not.
Department of Corrections
Deferred Maintenance, Repair, and Renovations
$2,100,000 ASLC Bonds
Reference No.: 36788
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
JERRY BURNETT, Director, Division of Administrative Services,
Department of Corrections, testified that the Department maintains
approximately 133 building statewide, all of which are 20 years old
or older. He stated this request would allow the Department to
address the most essential and critical needs.
Co-Chair Wilken referenced the list of proposed projects in the
Project Description/Justification statement and asked whether the
projects were listed in priority order.
Mr. Burnett answered they are not.
Senator Dyson informed that he visited the prison facility in
Sutton five years prior and learned that staff was attempting to
replace defective equipment but were unable to convince management
purchase the new equipment. He also stated that more funds are
annually spent to keep the existing building alarm system
operational than would be required to purchase a new system. He
asked the witness the estimated replacement cost of such a system
and asked if the legislature "makes it more difficult" to justify
capital purchases than request funding to continually repair
obsolete equipment.
Mr. Burnett replied he could provide the Department's priority
schedule for equipment replacement. He commented that repairs made
with bailing wire and duct tape is sometimes appropriate. He
understood that the specific equipment Senator Dyson referenced
were operational, but qualified that some buildings were past their
useful lives.
Senator Dyson remarked that prudent management plans include a
rational equipment replacement plan. He encouraged the Department
to establish such a replacement plan.
Mr. Burnett informed that the Governor's Chief of Staff established
a "lean efficiency team" to review the State's equipment fleet and
the management of that fleet.
SFC 04 # 26, Side A 10:38 AM
Mr. Burnett continued that one function of this team is to review
equipment lifecycle and determine whether it is cost effective to
maintain certain equipment beyond that lifecycle.
Co-Chair Wilken appreciated Senator Dyson's suggestions.
Senator Hoffman asked if the Murkowski Administration intended to
address overcrowding of jails. He asked the priority of this.
Mr. Burnett responded that bills relating to the alleviation of
overcrowding where introduced in both bodies of the legislature. He
reported that the Administration deemed the matter as "an issue",
although he could not speak to the priority order in comparison to
other matters.
Senator Hoffman asked if the Administration deems overcrowding is
therefore no longer a problem.
Mr. Burnett answered that he "would not say that".
Co-Chair Wilken ordered the bill HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:40 AM
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