CS FOR SENATE BILL NO. 231(FIN) am An Act making appropriations, including capital appropriations, supplemental appropriations, reappropriations, and appropriations to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. 1:25:11 PM Representative Stoltze MOVED to ADOPT work draft #24- GS2034\X, Kane, 5/7/06, as the version before the Committee. There being NO OBJECTION, it was so ordered. PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, highlighted items in the committee substitute. The Senate added language to incorporate $182 million for Power Cost Equalization; the House CS appropriates $73 million for the top three schools on the construction list in FY 07; another $90 million would be appropriated in FY 08 for schools number four through eight. Passage of HB 13 would add funding for urban schools. There is approximately $66.6 million for municipal energy assistance, which would be spread based on population. There is a $40 thousand minimum payment to each municipality. There are payments for the increased costs of Public Employees Retirement System / Teachers Retirement System (PERS/TRS) of $8.8 million; payments would be deducted from a community would expect under energy assistance and deposited into their retirement accounts. There are also appropriations for $170 million of tobacco bond projects (HB 381). The total capital budget is $2.3 billion 1:28:16 PM Co-Chair Meyer pointed out the top three schools on the priority list were in Representatives Moses', Krasner's, and Joule's districts. Schools in Representatives Foster's and Salmon's district would be picked up in the next year 1:29:38 PM Co-Chair Meyer encouraged member's to read the language section of the budget. Mr. Ecklund added that staff should look for technical corrections. 1:30:27 PM ART WEEKS, TESTIFIED VIA TELECONFERENCE, ANCHORAGE LIBRARIES, ANCHORAGE, spoke in support for greater funding for the Anchorage libraries. He provided examples of efficiencies and needs. He observed that Girdwood project has received strong community support; it has received, as much as, 70 percent in local elections. The people of Girdwood have committed $1 million for the project. Another $1.5 million is being requested in the current year, which should be sufficient to fund the project. 1:33:24 PM Representative Hawker pointed out that the Girdwood portion was included in the proposed bill. 1:34:00 PM LYNN MCNAMERA, TESTIFIED VIA TELECONFERENCE, GIRDWOOD COMMUNITY CENTER, ANCHORAGE, spoke in support of the Girdwood library project. 1:35:12 PM RICH POOR, JUNEAU, spoke in support of retaining the $45 million appropriation for Juneau Access. He felt that the appropriation would not result in more costs to the Alaska Marine Highway System. He maintained that ferry service was not cost effective and that its elimination would result in a savings to the state. He asserted that the Juneau Access Road would eliminate wait time. The total cost for the State would be $88 million dollars and includes a state match in federal dollars. He emphasized that are no replacement costs for replacement of the existing ferries. He did not believe the project would result in be at the expense of other projects. He urged to keep the $45 million dollars in the bill. 1:39:40 PM MERRILL SANFORD, JUNEAU, offered to answer questions and stated support for the Juneau Road Access. JIM BECKER, JUNEAU, offered to answer questions and stated support for the Juneau Road Access RICHARD KNAPP, JUNEAU, offered to answer questions and stated support for the Juneau Road Access 1:40:48 PM KEVIN RITCHIE, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE, testified in support of the committee substitute and emphasized that it would help communities on a number of issues. 1:41:39 PM ORIN SEYBERT, TESTIFIED VIA TELECONFERENCE, ALASKA AVIATION MUSEUM, ANCHORAGE, asked reconsideration of the original request for museum support in order to preserve Alaskan aviation heritage. Co-Chair Meyer pointed out that the funding had been restored to the $750 thousand dollar level. 1:43:38 PM Representative Weyhrauch asked about restoration of Governor Hammond's airplane. Mr. Seybert felt that the cost to restore the airplane would be more than $235 thousand. He felt that the airplane belongs in Anchorage. 1:45:06 PM PAUL FUHS, KUSKOKWIM ASSOCIATION, commented on consideration of a formation of a borough in the middle Kuskokwim area in order to support the mine. They need a local government to form a tax arrangement with the mine proposal. A draft borough plan and request has been developed. A borough feasibility study is needed to move forward, at a cost of $60 thousand. The Association is working closely with the department. 1:47:55 PM EMILY FERR, ALASKA TRANSPORTATION PRIORITIES PROJECT, JUNEAU, testified on the road access. She referred to the record of decision from the federal Highway Administration. Based on the current funding proposal, alternative 2b (the road/shuttle ferry option) would have a net state cost of $122 million dollars over $35 years; double the cost of the no action alternative. The higher net cost is due to the state match required for federal construction funds. The state of Alaska's decided to use $57 million in state funds to supplement federal funds, rather than maximum possible federal assistance; the State's cost would have been $88 million if federal funds were maximized. She asserted that the State would not be saved by the Juneau Access road. The move would double the amount required by the State. 1:50:27 PM TOM BRICE, LABORERS, JUNEAU, spoke in support of the Juneau Access Road. He maintained the project would be a significant addition to the State's transportation portfolio and would help the economy of Southeast Alaska. 1:51:30 PM Co-Chair Meyer urged consideration of the bill and amendments submitted by 5 PM.