Legislature(1995 - 1996)
04/11/1995 03:27 PM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
April 11, 1995
3:27 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
Senator Dave Donley
OTHER SENATORS PRESENT
Senator Rick Halford
MEMBERS ABSENT
Senator Jim Duncan
COMMITTEE CALENDAR
SENATE BILL NO. 136
"An Act making appropriations for capital project matching grant
funds and to capitalize funds; making, amending, and repealing
capital appropriations; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 136 - See Community & Regional Affairs minutes dated 3/29/95.
WITNESS REGISTER
Dan Fauske, CEO
Alaska Housing Finance Corporation
P.O. Box 101020, Anchorage, AK 99510-1020¶561-1900
POSITION STATEMENT: testified on SB 136
Les Campbell
Alaska Housing Finance Corporation
P.O. Box 101020, Anchorage, AK 99510-1020¶561-1900
POSITION STATEMENT: testified on SB 136
Darryl Johnson
Div. of Mental Health & Developmental Disabilities
Department of Health & Social Services
P.O. Box 110620, Juneau, AK 99811-0620¶465-3370
POSITION STATEMENT: testified on SB 136
Tom Lehman
Department of Health & Social Services
P.O. Box 110601, Juneau, AK 99811-0601¶465-3030
POSITION STATEMENT: testified on SB 136
Tim Sullivan, Executive Director
Alaska Craftsman Home Program
POSITION STATEMENT: testified on SB 136
Wendy Redman
University of Alaska
P.O. Box 155000, Fairbanks, AK 99775¶474-7311
POSITION STATEMENT: testified on SB 136
Royce Weller, Budget Analyst
Office of Management & Budget
P.O. Box 110020, Juneau, AK 99811-0020¶465-4694
POSITION STATEMENT: testified on SB 136
ACTION NARRATIVE
TAPE 95-17, SIDE A
Number 001
SSTA - 4/11/95
SB 136 APPROP: FY 96 CAPITAL PROJECTS BUDGET
CHAIRMAN SHARP calls the Senate State Affairs Committee to order at
3:27 p.m. and brings up SB 136 as the first order of business
before the committee. The chairman calls the first witness.
Number 020
DAN FAUSKE, CEO, Alaska Housing Finance Corporation (AHFC),
introduces Les Campbell from AHFC's budget office. Mr. Fauske
reads a written statement outlining AHFC's mission.
Number 078
SENATOR DONLEY asks what the difference is between corporate match
and corporate receipts.
MR. FAUSKE responds both are corporate receipts.
Number 090
LES CAMPBELL, from AHFC's budget office begins a brief description
of line items in SB 136.
MR. CAMPBELL informs the committee that HUD (Housing and Urban
Development) will not allow public housing to be demolished unless
the buildings are being replaced.
Number 160
MR. CAMPBELL continues with his description of line items in SB
136.
CHAIRMAN SHARP asks how much the corporate receipts were last year
for line item #3.
MR. CAMPBELL responds that last years corporate receipts were $1.5
million in the operating budget and $5.7 million in the capital
budget.
SENATOR DONLEY asks Mr. Campbell to find out how it was decided how
much money goes to rural areas and how much money goes to urban
areas.
Number 240
CHAIRMAN SHARP asks for more information on the ISER (Institute for
Social & Economic Research) survey.
MR. FAUSKE replies that AHFC paid ISER to conduct the survey, which
was done in the Anchorage Bowl area.
Number 260
CHAIRMAN SHARP asks that all data on that survey be submitted to
the committee.
Number 270
MR. CAMPBELL continues with his review of line items in SB 136.
Number 330
SENATOR DONLEY expresses concern over line item #7, which is a
grant to replace homes in the event of a natural disaster, and asks
AHFC to submit more information to the committee regarding that
line item.
MR. CAMPBELL continues with his review of line items in SB 136.
Number 430
SENATOR DONLEY asks what the term "congregate housing" means.
MR. CAMPBELL replies that the money goes to special needs groups.
Either multi-family housing special needs, or for somebody with a
disability. This money is not designated for seniors, although
senior facilities could apply for the program.
SENATOR DONLEY asks if it is a new program.
MR. CAMPBELL responds it was funded last year under "other
competitive grants."
Number 450
MR. CAMPBELL continues with his review of line items in SB 136.
Number 590
[It is clarified by AHFC that "other receipts" is not necessarily
always "corporate receipts."]
TAPE 95-17, SIDE B
Number 595
MR. CAMPBELL continues with his review of line items in SB 136.
MR. CAMPBELL notes that most assistance doesn't go directly to
individuals; It goes into a project.
Number 492
SENATOR DONLEY asks the chairman if he was intending to make
revisions or amendments to SB 136 today in committee.
CHAIRMAN SHARP responds he would just like to compile information
and recommendations for the Finance Committee. He hopes that input
and follow-up information can be submitted to the Finance
Committee.
SENATOR DONLEY asks about line items #25 and #26.
Number 480
MR. CAMPBELL informs the committee that #26 was under a different
program in prior years, but #25 is a new program.
CHAIRMAN SHARP asks Mr. Campbell if #26 was general funds in prior
fiscal years.
MR. CAMPBELL responds that is correct.
Number 475
SENATOR DONLEY asks where corporate receipts come from.
MR. FAUSKE replies that corporate receipts come from a combination
of federal funds and also from redirection of profits made by AHFC.
SENATOR DONLEY asks, since people making mortgage payments to AHFC
are funding these programs, if we shouldn't just cut some of these
programs in order to lower mortgage payments.
MR. FAUSKE responds that interest rates for mortgages are based on
bond programs and the prevailing market rate. Also, people making
mortgage payments to AHFC are only one source of revenue.
Number 450
CHAIRMAN SHARP asks what the anticipated net profit for AHFC will
be in FY 96.
MR. CAMPBELL replies that in 1995, it was $68,000,000; in 1994 it
was $100,000,000; in 1993 it was $79,000,000.
SENATOR DONLEY asks for clarification on whether or not AHFC has to
pay taxes on its' profits.
MR. CAMPBELL responds that AHFC issues both taxable and tax-exempt
debt.
CHAIRMAN SHARP asks how many of these projects were in existence
under ASHA (Alaska State Housing Authority) before the merger of
ASHA and AHFC.
Number 415
MR. CAMPBELL replies that the public housing projects are ASHA
projects.
Number 385
DARRYL JOHNSON, Division of Mental Health & Developmental
Disabilities, Department of Health & Social Services, informs the
committee that item #25 is necessary to build special housing for
12 people still in Harborview Developmental Center. Without those
funds, the department will not be able to close down Harborview.
Number 377
SENATOR HALFORD asked where item #25 was originally funded, or if
it is a new budget item.
MR. JOHNSON replies he does not know and will have to get back to
the committee regarding that question.
TOM LEHMAN, Department of Health & Social Services, adds that item
CHAIRMAN SHARP asks if item #25 could qualify for the program under
item #12.
MR. CAMPBELL responds it could qualify under item #12.
TIM SULLIVAN, Executive Director, Alaska Custom Home Program,
speaks regarding item #16, and explains the program.
Number 330
CHAIRMAN SHARP announces that this meeting is to gather information
in order to report to the Finance Committee. The Finance Committee
does not intend to finance new projects or programs, or expand
existing programs without a lot of scrutiny.
Number 300
WENDY REDMAN, University of Alaska, notes that a handout from the
university was distributed to committee members. The handout
contains a summary of the university's total capital requests. Ms.
Redman gives a brief overview of the university's capital projects.
Number 195
CHAIRMAN SHARP notes that the negative appropriation listed under
the Alaska Railroad Corporation is a lapse of funds back into the
general fund. The chairman calls for an at ease at 4:51 p.m.
CHAIRMAN SHARP calls the Senate State Affairs Committee back to
order at 4:55 p.m.
SENATOR RANDY PHILLIPS makes a motion to discharge SB 136 from the
Senate State Affairs Committee with individual recommendations.
Number 168
CHAIRMAN SHARP, hearing no objection, orders SB 136 released from
committee with individual recommendations.
CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting
at 4:55 p.m.
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