SENATE BILL NO. 1005                                                         
                                                                               
       An Act making, amending, and repealing  appropriations;                 
       making  appropriations  under   art.  IX,  sec.  17(c),                 
       Constitution  of  the   State  of   Alaska,  from   the                 
       constitutional budget  reserve fund; and  providing for                 
       an effective date.                                                      
                                                                               
  Co-Chair Hanley  reviewed amendments adopted  by the Senate.                 
  He noted that the Senate  Finance Committee version included                 
  a higher savings amount.  Funding was increased in CSSB 1005                 
  (FIN) am  to correspond  to the  reduction in  savings.   He                 
  observed that  CSSB 1005 (FIN) am funds CSSB 1003 (FIN) am.                  
  He  observed  that CSSB  1005  (FIN) am  includes additional                 
  funding;  $25.0 thousand  dollars for  Victims for  Justice,                 
  $200.0 thousand dollars  for work programs and  childcare in                 
  the  Welfare   Program,  $200.0  thousand  dollars   to  the                 
  Department of Fish and Game, $140.0 thousand dollars for the                 
  Juneau  health  lab,  $1.6 million  dollars  for  the Bethel                 
  seawall,  and  $250.0  thousand dollars  for  the Harborview                 
  facility.                                                                    
                                                                               
  Representative Martin expressed concern with sections 17 and                 
  18.    He  questioned  the  use  of  Alaska Housing  Finance                 
  Corporation   (AHFC)   funds   for   the   Bethel   seawall.                 
  Representative Navarre observed that the majority has placed                 
  a cap on  the budget, reducing  the budget by $70.0  million                 
  dollars.   He stressed  that this requires  that sections 17                 
  and 18  allow funding from  AHFC to not  be counted in  this                 
  cap.                                                                         
                                                                               
  ANNALEE  MCCONNELL,  DIRECTOR,  OFFICE   OF  MANAGEMENT  AND                 
  BUDGET,   OFFICE   OF   THE   GOVERNOR   stated   that   the                 
  Administration's preference would be  to use other  projects                 
  for AHFC funding.  She stressed  that the primary concern of                 
  the  bonding  agency  is  the  total  dollar  amount.    She                 
  emphasized  that  the Bethel  seawall  fits well  within the                 
  total  dollar  amount  that  is  authorized under  the  plan                 
  approved by  AHFC.  She  observed that all  projects require                 
  legislative authorization.                                                   
                                                                               
  Representative Martin noted that $36.0 million  dollars have                 
  been spent on the Bethel seawall.  He referred to section 18                 
  which appropriates $250.0  thousand dollars  to the city  of                 
  Valdez for reviewing and implementing a study of alternative                 
  uses of the Harborview facility.                                             
                                                                               
  Ms.  McConnell   noted  that  the   study  is  to   look  at                 
  alternatives  for the current  facility serving  people with                 
  developmental disabilities.                                                  
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative Navarre noted that the  closure of the Valdez                 
  facility would result  in the  loss of 110  jobs in  Valdez.                 
  The  building  will  require  additional  funding  for  moth                 
  balling.    He  maintained that  the  expenditure  of $250.0                 
  thousand  dollars is  well spent  if an  alternative use  is                 
  determined.                                                                  
                                                                               
  Representative Brown  referred to  section 11.   Section  11                 
  reappropriates  funding that  would otherwise  lapse to  the                 
  Department of  Community and Regional  Affairs, Division  of                 
  Energy  for  hydroelectric  and   intertie  projects.    Ms.                 
  McConnell  explained  that  section  11  was  introduced  by                 
  Senator  Sharp.   She noted  that no specific  projects were                 
  identified.  Co-Chair Hanley summarized that the Division of                 
  Energy would identify projects.  Ms. McConnell added that it                 
  would  also  depend   on  which  projects  were   ready  for                 
  development.                                                                 
                                                                               
  Representative Mulder MOVED to report CSSB 1005 (FIN) am out                 
  of Committee with  individual recommendations.  There  being                 
  NO OBJECTION, it was so ordered.