9:52:16 AM SENATE BILL NO. 53 "An Act making appropriations, including capital appropriations, supplemental appropriations, and appropriations to capitalize funds; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Stedman directed that "lessor questions" on the budget requests should be posed after the meeting to his staff. 9:55:02 AM KAREN REHFELD, Director, Office of Management and Budget, communicated that she would be available to respond to questions. 9:56:45 AM Department of Commerce, Community and Economic Development Alaska Energy Authority Energy Projects $30,000,000 Federal Receipts $1,200,000 General Fund Match (G/F Match) $500,000 Interagency (I/A) Receipts Reference No.: 38950 Category: Development Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 Multiple federally funded energy programs of Bulk Fuel Upgrades, Rural Power Systems Upgrades, Alternative Energy and Energy Efficiency projects. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. SAMUEL THOMAS, Director, Division of Administrative Services, Department of Commerce, Community and Economic Development, testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:01:17 AM Community Block Grants $6,030,000 Federal Funds $70,000 G/F Match Reference No.: 38946 Category: Development Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 Multiple federally-funded programs, enabling Commerce to provide grants to communities and non-profits that provide services and/or benefit the low- to moderate-income individuals. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:03:08 AM Language Section: NPR-A [National Petroleum Reserve-Alaska] Impact Grant Program $13,000,000 NPR-A Funds Reference No.: AMD38948 Category: Development Location: Barrow Election District: Arctic Estimated Project Dates: 07/01/2007 - 06/30/2012 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. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. This project has been amended to revise the amount anticipated from the National Petroleum Reserve fund from an original estimate of $40 million to a more current estimate of $13 million. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:05:16 AM Kodiak Launch Complex Infrastructure $15,000,000 Alaska Aerospace Development Corporation (AERO) Receipts Reference No.: 41789 Category: Development Location: Kodiak Election District: Kodiak Estimated Project Dates: 07/01/2007 - 06/30/2012 The Kodiak Launch Complex requires modification and maintenance to adequately support the satellite launch program. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] AT EASE 10:05:58 AM / 10:06:36 AM 10:07:00 AM Manufacturing Extension Program $806,401 Business License & Corporate Receipts $806,401 Federal Receipts Reference No.: 40242 Category: Development Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 The Federal Manufacturing Extension Program (MEP) will support Alaska's small and medium sized manufacturers throughout the state by providing them access to knowledgeable manufacturing and business specialists throughout the United States. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:08:25 AM Language Section: Electrical Emergencies $240,000 General Funds $90,000 Rural Electric Funds Reference No.: AMD32590 Category: Development Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 To provide technical support when an electrical utility has lost, or will lose, 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. This program contributes to the Department's mission of promoting healthy economy and strong communities by providing economic growth in the communities it serves. This amendment adds $240,000 in general funds to this project. Historically, an average of $330,000 annually has been needed to provide for electrical emergencies. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:09:42 AM Language Section: NPR-A Impact Grant Program $13,000,000 NPR Fund Reference No.: AMD38948 Category: Development Location: Barrow Election District: Arctic Estimated Project Dates: 07/01/2007 - 06/30/2012 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. This program contributes to the Department's mission of promoting a healthy economy and strong communities by providing economic growth in the communities it serves. This project has been amended to revise the amount anticipated from the National Petroleum Reserve fund from an original estimate of $40 million to a more current estimate of $13 million. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:11:58 AM Alaska Energy Authority - Napakiak-Bethel Intertie Right- of-Way and Site Control $84,000 General Funds Reference No.: AMD43323 Category: Development Location: Bethel Election District: Bethel Estimated Project Dates: 07/01/2007 - 06/30/6012 The Alaska Energy Authority owned electrical distribution line between Napakiak and Bethel is in the process of being upgraded from a single distribution line to a three-phase line through a federal grant to Napakiak Ircinraq Power Company. To comply with the terms of the federal grant, State funds are required to complete the right of way acquisition and to cover associated site control costs. This amendment is being requested as it was recently discovered that the right-of-way filings had not been finalized and needs to be done before the federal project Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:13:36 AM Four Dam Pool Power Agency $28,000,000 AK Cap Inc Reference No.: AMD42941 Category: Natural Resources Location: Southeast Alaska Election District: Southeast Districts 1-5 Estimated Project Dates: 07/01/2007 - 06/30/2012 This amendment is a name change from Alaska Energy Authority - Swan Lake-Lake Tyee Intertie to clarify that this appropriation to the Four Dam Pool Power Agency will be a Grant to Named Recipient (AS 37.05.316) through AEA. The Swan Lake-Lake Tyee Intertie is a major infrastructure project in Southern Southeast Alaska. This 57-mile project will connect the Lake Tyee hydroelectric project south of Wrangell with the Swan Lake hydroelectric facility near Ketchikan. The project is a critical link of the Southeast Alaska Intertie Project envisioned to interconnect all of Southeast Alaska. When completed, a primary transmission line will be in place and operational from Ketchikan to Petersburg. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:15:57 AM Morris Thompson Cultural and Visitor Center - Construction $3,000,000 General Funds Reference No.: AMD40500 Category: Development Location: Fairbanks Areawide Election District: Fairbanks Areawide Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will provide a grant for partial funding for the construction of the Morris Thompson Cultural and Visitors Center. This program contributes to the Department's mission of promoting strong communities. This amendment is requested to help finish the construction phase of this project. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:17:14 AM Data Security and Encryption Information Technology Project $200,000 Receipt Supported Services (RSS) Reference No.: AMD42927 Category: General Government Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 Banking and Securities requires data security and encryption enhancements. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:19:16 AM Co-Chair Stedman asked for an explanation of Reference Number #38948. Mr. Thomas repeated his references to the Project Description/Justification. 10:21:30 AM Institute of the North $100,000 General Funds Reference No.: AMD41953 Category: Education Location: Anchorage Areawide Election District: Anchorage Areawide Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will provide funding to the Institute of the North, which is an educational organization that advances issues related to economic growth and sustainability in Alaska and throughout the Arctic region. Mr. Thomas testified to this item referencing information contained in the accompanying Project Description/Justification, [copy on file.] 10:23:26 AM Senator Olson asked the reason the initial $40 million appropriation to the National Petroleum Reserve-Alaska (NPR-A) Grant had been reduced to $13 million. Mr. Thomas responded that he was unfamiliar with the details and that "something happened" with regard to "the land issue". He would research the matter and provide additional information. 10:24:27 AM Department of Military and Veterans Affairs 10:24:32 AM Army Guard Facilities Projects $$750,000 Federal Receipts $750,000 G/F Match Reference No.: 42900 Category: Public Protection Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 With 237 Alaska Army National Guard buildings at 96 various locations, with an average age of approximately 30 years, deferred maintenance and renewal and replacement are a high priority. Alaska National Guard preventative maintenance is performed on a schedule, yet building components have a limited life requiring eventually renewal and replacement. This project requests $750,000 federal and $750,000 state funds to be applied to over $17.4 million backlogged deferred maintenance projects statewide. Life safety enhancements end results, ability to protect our citizens and infrastructure, will continue to improve within our performance management framework. JOHN CRAMER, Director, Division of Administrative Services, Department of Military and Veterans Affairs overviewed this item. The backlogged deferred maintenance projects have been addressed in segments. 10:25:37 AM Anchorage Readiness Center Security Compliance $250,000 Federal Receipts $50,000 G/F Match Reference No.: 42930 Category: Public Protection Location: Fort Richardson Election District: Military Estimated Project Dates: 07/01/2007 - 06/30/2012 Security modification of the Alaska National Guard Readiness Center located at Ft. Richardson is necessary to comply with the Alaska Army National Guard Anti-Terrorism Force Protection (ATFP) facility requirements. Due to recent security regulations outlined in Army Regulation (Ms. Ryder) 190-11, the paved road running parallel to the front of the Readiness Center can no longer be used for non-emergency vehicular traffic. Additionally, implementation of a security barrier is necessary. This project is required to meet life safety enhancements and directly relates to protection of National Guard facility infrastructure within our department's performance management framework. Mr. Cramer explained this project. Use of the roadway would be limited to emergency vehicle access. 10:26:34 AM Military Youth Academy Deferred Maintenance, Renewal and Replacement $1,000,000 General Fund Reference No.: AMD35774 Category: Education Location: Fort Richardson Election District: Military Estimated Project Dates: 07/01/2007 - 06/30/2012 Alaska Military Youth Academy (AMYA) ChalleNGe program currently has 22 buildings totaling 61,805 sq feet and an average building age of 30 plus years. The building design function has become inadequate for the purpose of training students. This request will fund the modification of the Academy's ChalleNGe facilities to improve technical skills training and educational opportunities. Projects to meet usable standards include deferred maintenance, renewal, replacement and life safety. Mr. Cramer spoke of the increased number of cadets participating in the program. The funds would be utilized to upgrade latrines, showers and other necessary facilities. 10:27:27 AM State Homeland Security Grant Program $9,500,000 Federal Receipts Reference No.: 42901 Category: Public Protection Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 The 100% federally funded State Homeland Security grant program is annually awarded by the U.S. Department of Homeland Security. Programs include homeland security planning, equipment, training, and exercises to support local first responders, private sector critical infrastructure and state preparedness. Citizen preparedness and life safety end results will be enhanced and improved within our performance management framework. Mr. Cramer overviewed this item. 10:27:54 AM National Guard Counterdrug Support Program $100,000 Federal Receipts Reference No.: 42898 Category: Public Protection Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 This program participates in the U.S. Department of Justice Asset Forfeiture Program. This federal program's primary purpose is to deter crime by depriving criminals from profits and proceeds from their illegal activities. Citizen protection and life safety end results will improve without our performance management framework. Mr. Cramer explained that these funds would be expended to purchase equipment to assist in detection and other law enforcement efforts. 10:28:34 AM Compliance Cleanup Site Restoration $5,000,000 Federal Receipts Reference No.: AMD43330 Category: Public Protection Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2013 The Compliance Cleanup Site Restoration projects address soil and groundwater contamination issues at numerous Alaska Army National Guard facilities throughout the state. The total current year (FY2007) estimate of the compliance cleanup liability is $28.5 million. Program funds are used to investigate and cleanup contaminated sites. Projects are 100% federally reimbursable through the National Guard Bureau Army National Guard (ARNG) compliance cleanup program and effectively address the environmental compliance liabilities associated with ARNG training and facility operations on federal, state and third party properties. Mr. Cramer outlined this request. 10:29:07 AM Co-Chair Hoffman asked if local residents and businesses were employed for the cleanup efforts in rural communities. 10:29:21 AM Mr. Cramer replied that local contractors are utilized whenever possible. Requests for proposals specify a preference for local hire. As most projects are not large, this is frequent. 10:29:49 AM Co-Chair Hoffman asked the status of construction of the Bethel Readiness Center. 10:30:01 AM Mr. Cramer noted the project was not included in the funding requests for FY 08. The Department was in the process of securing federal funding. 10:30:12 AM Co-Chair Hoffman asked the expected timetable for completion of the project. 10:30:19 AM Mr. Cramer replied that project would likely be completed in two years and assured that the completion date would be no later than the year 2011. 10:30:36 AM Senator Thomas recalled some projects in villages located on the Seward Peninsula. In anticipation of those projects, a training program was implemented to allow residents to obtain skills to undertake these projects. He suggested similar programs be provided to the villages in which the Site Cleanup projects are located nearby. 10:31:43 AM Department of Education and Early Development EDDIE JEANS, Director, School Finance and Facilities Section, Department of Education and Early Development testified to the seven projects submitted by the Department. Five projects involve school construction and two involve renovation. All had received State funding previously but additional funding is required due to increased costs caused by unforeseen factors such as the impacts of Hurricane Katrina. 10:32:53 AM Russian Mission K-12 School Replacement $5,082,761 General Funds Reference No.: AMD43328 Category: Education Location: Russian Mission Election District: Interior Villages Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will construct a new 31,891 square foot K-12 facility to replace the existing facilities, built between 1960 and 1988. The school is currently operating at 182 percent capacity and is expected to increase to 226 percent by FY 2014. This project was funded in FY 2008 at $18,485,899. The original project estimates have been determined to be inadequate due to escalating construction costs associated with building materials and transportation costs. Additional funding is required to complete construction of the new school. Mr. Jeans described this project. 10:33:29 AM Bethel Regional High School Renovation, Phase 2 $4,458,824 General Funds Reference No.: AMD36594 Category: Education Location: Bethel Election District: Bethel Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will complete renovation at the 75,972 square foot facility built in 1971. Phase 2 work includes toilet room renovations and interior work in the "B" and "D" wings. Interior work includes mechanical systems, electrical systems, and architectural finishes demolition and replacement. The original project estimates have been determined to be inadequate due to escalating construction costs associated with building materials and transportation costs. Additional funding is required to complete the renovation of this school. Mr. Jeans outlined this request. 10:34:05 AM Arctic Village K-12 Replacement Completion $3,276,004 General Funds Reference No.: AMD36736 Category: Education Location: Arctic Village Election District: Interior Villages Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will construct a 16,256 square foot facility on a new site. The 2,152 square foot elementary building, c. 1950 and its 1970 addition have been identified as unsafe and are in danger of roof collapse. This building will be demolished. The high school, built in 1980, will cease to be used as an education related facility and will either be transferred or converted to teacher housing. The school is currently operating at 135 percent capacity and is projected to reach 165 percent by FY 2013. The original project estimates have been determined to be inadequate to complete construction of this school due to escalating construction costs associated with building materials and transportation costs. Mr. Jeans highlighted this project. 10:34:30 AM Howard Valentine K-12 School Replacement Completion, Coffman Cove $1,923,207 Reference No.: AMD36737 Category: Education Location: Coffman Cove Election District: Ketchikan Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will build a 10,304 square foot K-12 replacement school. The current elementary school and kindergarten classroom are two portables build in 1970 and 1977 totaling 2,172 square feet. They are suffering from dry rot and have multiple deficiencies. The 2,302 square foot secondary school will cease to be used as an education facility. The school is currently operating at 179 percent of capacity and is projected to reach 224 percent by FY 2014. Planning and design were funded in FY 2003 and construction was funded for FY 2008. The original project estimates have been determined to be inadequate due to escalating construction costs associated with building materials and transportation costs. Mr. Jeans listed this funding request. 10:34:53 AM D.R. Kiunya Memorial School Improvement, Kongiganak $5,645,676 General Funds Reference No.: AMD36741 Category: Education Location: Kongiganak Election District: Bethel Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will construct a 16,404 square foot addition and renovate the original 15,617 square foot school built in 1976. The school is currently operating at 181 percent capacity and is expected to reach 219 percent by FY 2014. The planned addition will include classrooms, specialty classrooms, a gymnasium, locker and shower rooms, and storage, circulation and mechanical spaces. The original project estimates have been determined to be inadequate due to escalating construction costs associated with building materials and transportation costs. Additional funding is required to complete construction at this facility. Mr. Jeans overviewed this project. 10:35:18 AM Fort Yukon Gym Renovation Completion $1,442,554 General Funds Reference No.: AMD36709 Category: Education Location: Fort Yukon Election District: Interior Villages Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will renovate the 11,524 square foot gymnasium built in 1960. Work includes repairs to the foundation and superstructure. The roof, interior doors, flooring, ceiling, and plumbing fixtures will be replaced in addition to the mechanical, electrical, and communications systems. This project was previously funded in FY 2003 and for FY 2006. The original project estimates have been determined to be inadequate due to escalating construction costs associated with building materials and transportation costs. Additional funding is required to complete construction at this facility. Mr. Jeans reviewed this request. 10:35:44 AM Kilbuck Elementary Replacement School, Bethel $6,152,451 General Funds Reference No.: AMD36710 Category: Education Location: Bethel Election District: Bethel Estimated Project Dates: 07/01/2007 - 06/30/2012 This project will replace the 43,843 square foot elementary school originally built in 1960 with three subsequent additions, the last in 1968. The original project estimates have been determined to be inadequate due to escalation construction costs associated with building materials and transportation costs. Additional funding is required to complete construction at this school. Mr. Jeans highlighted this project. 10:36:29 AM Co-Chair Stedman suggested new school construction in both rural and urban locations utilize a prototype school design with possibly four options to accommodate for population and specific climates. State funding for school construction is substantial and the State should contract with an architect to develop designs that could be replicated in multiple communities. 10:38:50 AM Mr. Jeans informed that a bond reimbursement review committee includes two legislators, one of whom is Co-Chair Hoffman, which addresses this issue. A position paper found that prototype schools are feasible for locations in Anchorage and Fairbanks because these communities have multiple elementary schools. However, the different climates and terrains of the state prevent the general application of prototype schools. Co-Chair Stedman requested the position paper, announcing he would talk with Co-Chair Hoffman about the matter. The cost of the new school in Coffman Cove is of concern to local residents because, in addition to the capital costs, future operational costs would be incurred. He commended the prototype school approach. 10:41:20 AM Mr. Jeans noted that the Department collaborates with the US Department of Energy to secure the location of new power facilities near a school to allow the use of "waste energy" by that school. Co-Chair Stedman commented that this practice was also employed by the Department of Transportation and Public Facilities. 10:42:01 AM Senator Thomas considered the opportunity not necessarily to construct "cookie cutter schools", but rather to review designs to ensure integrity of roofs and other structural components as well as energy efficiency. 10:42:57 AM Senator Elton pointed out the cost "escalation" of the Coffman Cove project was 36 percent. He asked whether the Department of Education and Early Development had attempted to reconfigure this project, or any of the other projects, to contain the costs. 10:43:47 AM Mr. Jeans told of the cost estimating program run on all projects. The impacts of Hurricane Katrina were unforeseen. Additionally the Legislature had provided capital funding two years in advance, but did not appropriate funds to account for the increased costs of the out year. 10:45:09 AM Department of Fish and Game Delete: Mendenhall Wetlands State Game Refuge Lands Conservation $0 Reference No.: AMD42112 Category: Natural Resources Location: Juneau (Mendenhall Valley) Election District: Juneau/Mendenhall Valley Estimated Project Dates: 07/01/2007 - 06/30/2010 $1,253,500 is currently in the FY 08 capital budget request for Mendenhall Wetlands State Game Refuge Lands. Federal funding was not approved for this project and this amendment eliminates the funding request. TOM LAWSON, Director, Division of Administrative Services, Department of Fish and Game, explained the removal of this funding request. 10:45:49 AM Sport Fisheries and Recreational Boating Access $2,100,000 Federal Receipts $700,000 Fish/Game Funds Reference No.: 30432 Category: Development Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2013 Provides funds to the Sport Fisheries RDU to construct boating and support fishing access facilities throughout the state. The Sport Fisheries Restoration (SFR) program requires that 15% of the federal funds available to Sport Fisheries be used for recreational boating access development. If these funds are not used for this purpose, they are lost to the state. Support for boating and sport fishing access facilities contributes to the Division of Sport Fisheries outcome to sustain recreational fishing opportunities while optimizing social and economic benefits from these opportunities. Access projects directly address Strategy #5, to maintain access to public resources. Mr. Lawson cautioned that if the federal funds were not expended, they would revert to the US Fish and Wildlife Service. 10:47:02 AM Language: Sport Fisheries Hatchery Construction Investment Earnings $3,300,000 Misc Earnings Fund Reference No.: 42983 Category: Natural Resources Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2010 The Alaska Sport Fishing Construction Account (fund 13211) was established by law as per AS 16.05.130(f) after the sale of State of Alaska Sport Fishing Revenue Bonds (issued under AS 37.15.765 - 37.15.799) in April of 2006. This request would allow the Division of Sport Fisheries to utilize investment earnings of the Alaska Sport Fishing Construction Account for construction of new hatchery facilities in the Anchorage and Fairbanks areas, as well as increased king salmon production in Southeast Alaska. Mr. Lawson stated this language is necessary to address unanticipated cost increases. 10:48:23 AM Statewide Deferred Maintenance, Repair, Upgrades, and Equipment $1,000,000 General Funds Reference No.: AMD43322 Category: Natural Resources Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2012 This request provides for repair, maintenance and renovation of department facilities statewide; vessel and aircraft repair and maintenance; upgrades to facilities; and the purchase of field equipment. An amendment is being requested as the FY 08 capital budget does not include funding for these projects. Mr. Lawson pointed out that such projects had been listed individually in previous fiscal year funding requests. Office of the Governor Pacific Coastal Salmon Recovery Fund $22,000,000 Federal Receipts Reference No.: 33647 Category: Natural Resources Location: Statewide Election District: Statewide Estimated Project Dates: 07/01/2007 - 06/30/2010 Federal fiscal year 2007 (FFY07) appropriations legislation contains funding for the Pacific Coastal Salmon Recovery Fund (PCSRF). Coordination of individual state funding is through the respective Governor's offices. The Alaska portion of the FFY07 appropriation is estimated to be $22.0 million. Funding comes to the state through a Memorandum of Understanding with the U.S. Department of Commerce designating Alaska Department of Fish and Game as the program manager. Mr. Lawson relayed that although this item was categorized as an Office of the Governor project, the Department of Fish and Game was requested to provide the overview. Mr. Lawson highlighted the Project Description/Justification accompanying this item, which reads as follows. Federal fiscal year 2006 is the seventh year of PCSRF funding for Alaska. Alaska's program for administrating these funds is the Southeast Sustainable Salmon Fund. The State-Federal Memorandum of Understanding (MOU) was revised in 2002, 2003 and 2005 to provide for distribution of Congressionally designated projects and administration of the remaining funds. The State intends to apply the salmon funds over a five- year period. The overall objective is to assure that Alaska salmon and salmon fisheries are sustainable and continue to provide jobs and income for Alaskan families and communities. The Office of the Governor, through the Division of Administrative Services, will provide overall administration and accountability in accord with the general intent of the federal legislation. Consistent with applicable laws and regulations, the State may award grants, direct funding to State agencies, or enter into contracts to implement the priority recommendations regarding salmon habitat stewardship and restoration, salmon research and monitoring, and increasing economic opportunities for salmon fishing communities and fishermen in Southeast Alaska. No match is required for these federal funds. Mr. Lawson informed that most of the funding is dedicated to specific projects. The funds would be utilized to ensure that Alaskan salmon and fisheries were sustainable and would continue to provide income. 10:51:33 AM Senator Elton asked why the appropriation was made to the Office of the Governor given that the Department of Fish and Game would be "making decisions" in administering the program. 10:51:53 AM Mr. Lawson responded that this arrangement was made by the federal government and dictated that the funding would be appropriated to the governors' of the participating Western states for allocation to the appropriate agencies. 10:52:15 AM Senator Elton requested a list of the projects undertaken in the past three to four years.