SENATE BILL NO. 192 "An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date." DEPARTMENT OF ADMINISTRATION ADM #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 2, line 26 Insert: Alaska Public Broadcasting Grants (AS 44.21.268) KAKM Construction 300,000 300,000 of Digital Television Facilities (ED 10-25) Explanation: Addition of $300,000 in general funds This amendment was HELD and offered at a future meeting. ADM #2: This amendment adds a new bill section to read as follows. Sec.__. The sum of $450,000 is appropriated from the general fund to the Department of Administration for payment as a grant under AS 37.05.315 to the City of Kenai for final design and engineering for the Kenai Coastal Trail/Bluff Restoration project. Senator Adams moved for adoption. Co-Chair Parnell and Senator Phillips objected. Senator Adams told the Committee that the city contracted with an engineering firm for a design concept report. He stated that the city attests that the remainder of this project qualifies for funding under the Conservation and Reinvestment Act of 1999. Senator Leman asked the amount of the local match provided by the city for this item. Senator Adams did not have that information. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Phillips, Senator Donley, Co-Chair Parnell and Co- Chair Torgerson ABSENT: Senator Green The motion FAILED (1-7-1) The amendment FAILED to be adopted. ADM #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 2, line 9 Delete: Anchorage Pioneers' 250,000 250,000 Home Ventilation and Humidification System Emergency Repair and Upgrade (ED 10-25) Insert: Anchorage Pioneers' 1,448,100 1,448,100 Home Ventilation & Humidification System Emergency Repair & Upgrade (ED 10-25) Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams expressed that this item has been on the state's deferred maintenance list since 1992 and that in one building, the system was more than 20 years old and is not working. Senator Leman commented that this building was located on the edge of his district. He stated that he could support the increase with different funding source that has a net zero impact on the general fund. He stressed that the Committee was operating under a general funding spending cap and that to approve an increase of $1.2 million would go over the predetermined spending amount. Senator Wilken noted the project had not yet been started and that the already approved, $250,000 allows for the design portion. Senator Adams countered that this project should have been started in 1990 and that the facility was in disrepair. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT C&ED #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, following line 17 Insert: Alternative Energy 150,000 150,000 Program Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams stated that the Alaska Energy Authority requests that these funds be provided to help match an anticipated $4.3 million in federal funds for the wind fuel cell hybrids and the battery storage projects. He noted that the federal funds were expected to be available from the U.S. Department of Energy and would require matching funds. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. C&ED #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, following line 17 Insert: Rural Power Systems 540,000 540,000 Upgrades Senator Adams moved for adoption. Co-Chair Parnell and Co-Chair Torgerson objected. Senator Adams relayed the Alaska Energy Authority's request for these funds to be used to match approximately $8.6 million in federal funds for 12 power upgrade projects throughout the state. He added that the Denali Commission has declared that state and local contributions would be required for these projects. Senator Leman asked if the federal funds would be available the next year if this item was not funded. Senator Adams believed the Denali Commission would choose a different project instead. He asserted that the legislature should take advantage of the opportunity to receive the federal funds in the current year. He offered a representative from the Commission to speak to the proposed projects. Co-Chair Torgerson said he did not oppose the project but was opposed to the Commission coming to the legislature requesting matching funds for projects. Senator Adams appreciated the co-chair's concerns but stressed that U.S Senator Ted Stevens has worked hard to obtain over $50 million for the State Of Alaska through the Denali Commission. Senator Adams stated that the state should contribute at least a minimal amount to these projects to ensure that the federal funding continues. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. C&ED #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, following line 10 Insert: Grants to Municipalities AS 37.05.315 City of Delta 200,000 200,000 Junction Senator Adams moved for adoption. Co-Chair Torgerson and Senator Leman objected. Senator Adams explained this grant would assist the community. AT EASE 6:20 PM / 6:21 PM Senator Adams continued sharing that the funds would be utilized for the reuse of Fort Greely after the downsizing of the military post. He stated that Fort Greely has the potential for being chosen as the site of the national Missile Defense Systems. He added that the site has also been slated for a new prison facility. This amendment, he noted, would assist the city with leveraging $600,000 federal funds for these efforts. Senator Phillips asked if the City of Delta Junction provided a local match as well as the requested state matching funds. Senator Adams' information did not indicate whether or not there was such a local match. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (8-1) The amendment FAILED to be adopted. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT EED #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, line 13 Delete: Mt. Edgecumbe High 150,000 150,000 School Dorm Renovation & Facilities Upgrades (ED-2) Insert: Mt. Edgecumbe High 250,000 250,000 School Dorm Renovation & Facilities Upgrades (ED-2) Senator Adams moved for adoption. Co-Chair Torgerson and Co-Chair Parnell objected. Senator Adams stated that, while the $150,000 allocation was appreciated, the additional funds were necessary to address renovation needs in the facilities' bathrooms. Senator Adams told of how the institution had deteriorated in the 39 years since he was a student of Mt. Edgecumbe High School. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. DEPARTMENT OF ENVIRONMENTAL CONSERVATION DEC #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 9, following line 29 Insert: Municipal Grants (AS 37.05.315) City of Fairbanks 405,000 405,000 Parking Garage Page 9, line 30 Delete: Municipal Water, 19,599,650 19,599,650 Sewer & Solid Insert: Municipal Water, 19,194,650 19,194,650 Sewer & Solid Page 10, lines 5-7 Delete: Fairbanks 405,000 Slaterville Storm Water Improvement Phase I (ED 29-34) Explanation: This amendment moves $405,000 of AHFC Dividend funding from the Fairbanks Slaterville Storm Water Improvement Phase I project within the Department of Environmental Conservation to the Department of Administration for payment of a municipal grant to the City of Fairbanks for construction of a parking garage. This amendment was held and subsequently NOT OFFERED. DEC #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, following line 29 Insert: Municipal Grants (AS 37.05.315) City of Fairbanks 405,000 405,000 Parking Garage Page 9, line 30 Delete: Municipal Water, 19,599,650 19,599,650 Sewer & Solid Insert: Municipal Water, 19,194,650 19,194,650 Sewer & Solid Page 10, lines 5-7 Delete: Fairbanks 405,000 Slaterville Storm Water Improvement Phase I (ED 29-34) Explanation: This amendment moves $405,000 of AHFC Dividend funding from the Fairbanks Slaterville Storm Water Improvement Phase I project within the Department of Environmental Conservation to the Department of Administration for payment of a municipal grant to the City of Fairbanks for construction of a parking garage. This amendment was held and subsequently NOT OFFERED. DEPARTMENT OF FISH AND GAME F&G #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 12, line 22 Delete: Statewide Facilities 175,000 175,000 Repair, Maintenance, & Replacement (ED 99) Insert: Statewide Facilities 250,000 250,000 Repair, Maintenance, & Replacement (ED 99) Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams reminded of the deferred maintenance needs within the department. He stated that life, safety and health issues must be addressed in facilities throughout the state and that this increase funds the King Salmon facility, which is in the most critical state. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. F&G #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 12, following line 29 Insert: Dock Repairs, 375,000 375,000 Maintenance & Replacement Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams stated this amendment also addresses deferred maintenance needs. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (1-8) The amendment FAILED to be adopted. DEPARTMENT OF HEALTH AND SOCIAL SERVICES H&SS #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 14, line 4 Delete: Wesley Nursing Home 25,000 25,000 (ED 7-9) Wesley Nursing Home 50,000 50,000 Needs for Long Term Community & Home Based Care (ED7-9) Explanation: Addition of $25,000 in federal receipts. These are federal Medicaid funds that will be matched by $25,000 in AHFC Dividend. Co-Chair Parnell moved for adoption. Co-Chair Torgerson explained that the department identified an additional $25,000 in other funds that could be appropriated to this item. Co-Chair Parnell asked if the funds were federal receipts. Co-Chair Torgerson affirmed. There was no objection and the amendment was ADOPTED. H&SS #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 13, line 13 Delete: Deferred Maintenance, 287,600 287,600 Renewal, Replacement, & Equipment (ED 99) Insert: Deferred Maintenance, 401,400 401,400 Renewal, Replacement, & Equipment (ED 99) Page 13, line 20 Delete: Juneau Public Health 327,200 327,200 Center Heating, Ventilation, Fire & Life Safety Repairs (ED 3-4) Insert: Juneau Public Health 131,600 131,600 Center Fire & Life Safety Repairs (ED 3-4) Senator Adams moved for adoption. Co-Chair Torgerson and Senator Phillips objected. Senator Adams stated that this amendment has a net zero impact. He explained that the funds were transferred from the Juneau Public Health component to address critical deferred maintenance projects. Co-Chair Torgerson understood that although the funds were appropriated, they were not adequate to complete the entire Juneau Public Health project. Senator Adams affirmed and explained that the department wished to reprioritize the funds to cover other deferred maintenance needs statewide. Co-Chair Parnell wanted to know the impact the reappropriation would have on heating and ventilation system in the Juneau facility. JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services replied that the original request for the Juneau Public Health Center project was $586,000 and included two projects. One project she said was to replace fire alarm systems and the other addressed the heating and ventilation system. She continued that the heating and ventilation project is the more expensive of the two projects and that the appropriation allowed in the committee substitute is only enough to allow for the fire alarm project to be undertaken. AT EASE 6:30 PM / 6:32 PM Co-Chair Torgerson removed his objection. Senator Phillips maintained his. Co-Chair Parnell asked what other projects would be funded with the reappropriated funds. Ms. Clarke indicated a list [not provided to Committee] and showed how many projects on the priority list the additional funding would address. She stated that the subcommittee had reviewed this list extensively. Ms. Clarke detailed the actual projects the reappropriated funds would be used for. They included the fire alarm installation at the Sitka Health Center, sewer grate repair at the Ketchikan Health Center, repair at the Dillingham Health Center, work on the boiler at the McLaughlin Youth Center, and a pipe condition survey at the Fahrenkamp Center. She noted the cost of these projects was between $1000 and $12,000 each. Co-Chair Parnell wanted to show that these were health and safety items. A roll call was taken on the motion. IN FAVOR: Senator Green, Senator Donley, Senator Leman, Senator Adams, Senator Wilken, Co-Chair Parnell and Co- Chair Torgerson OPPOSED: Senator P. Kelly and Senator Phillips The motion PASSED (7-2) The amendment was ADOPTED. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS M&VA #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 14, following line 29 Insert: Grants to Named Recipients (AS.37.05.316) Anchorage Economic 200,000 200,000 Development Corporation: Feasibility study for a Department of Defense Global Logistics /Forward Mobility Hub in Anchorage (ED 10-25) Explanation: This amendment provides for an independent consultant's analysis of the feasibility of establishing a military logistics center in Anchorage. This amendment was HELD and subsequently NOT OFFERED. M&VA #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 14, following line 29 Insert: Grants to Named Recipients (AS.37.05.316) Military Global 200,000 200,000 Logistics/Forward Mobility Hub Economic Development Opportunity Study (ED 10-25) This amendment was HELD and subsequently NOT OFFERED. Senator Adams noted this amendment accomplishes the same goal as M&VA #1. DEPARTMENT OF NATURAL RESOURCES DNR #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 16, following line 16 Insert: Mat-Su Borough 50,000 50,000 Negotiated Timber Sale (ED 26-28) Explanation; This amendment provides the department with the authority to receive and expend funds for a negotiated timber sale under SB 180 (AS 38.05.123). Co-Chair Parnell moved for adoption. Senator Phillips asked if this item were more of an operating budget item rather than capital budget item. Co-Chair Torgerson conceded it was. Co-Chair Parnell noted this is a one-time expenditure. Co-Chair Torgerson noted that an operating budget was not before the Committee and therefore, this item was included in the capital budget. Senator Phillips objected to the amendment. A roll call was taken on the motion. IN FAVOR: Senator P. Kelly, Senator Green, Senator Donley, Senator Leman, Senator Adams, Co-Chair Parnell and Co-Chair Torgerson OPPOSED: Senator Wilken and Senator Phillips The motion PASSED (7-2) The amendment was ADOPTED. DEPARTMENT OF PUBLIC SAFETY DPS #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 16, lines 20-21 Delete: Aircraft & Vessel 838,780 838,780 Repair (ED 99) Insert: Aircraft & Vessel 910,780 910,780 Repair (ED 99) Page 16, lines 30-31 Delete: Southeast Emergency 275,000 225,000 50,000 Communications Upgrade (ED 3-4) Insert: Southeast Emergency 203,000 153,000 50,000 This amendment would transfer $72,000 from the Southeast Communications Upgrade to Aircraft and Vessel Repair. The purpose of this $72,000 is to provide the following: 2 PA-18 Engine overhauls $32,000 1 Cessna 185/206 engine repair (overhaul) 18,000 Engine room communications 3,500 Hot water system 12,000 Mather Maintenance 7,500 Senator Green moved for adoption. Co-Chair Torgerson objected. AT EASE 6:38 PM / 7:09 PM Without objection, Senator Green WITHDREW her motion to adopt the amendment. The amendment was NOT OFFERED again, deferring instead to DPS #1A. DPS #1A: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 16, lines 20-21 Delete: Aircraft & Vessel 838,780 838,780 Repair (ED 99) Insert: Aircraft & Vessel 892,280 892,280 Repair (ED 99) Page 16, lines 30-31 Delete: Southeast Emergency 275,000 225,000 50,000 Communications Upgrade (ED 3-4) Insert: Southeast Emergency 221,500 171,500 50,000 This amendment would transfer $53,500 from the Southeast Communications Upgrade to Aircraft and Vessel Repair. The purpose of this $53,500 is to provide the following: 2 PA-18 Engine overhauls $32,000 1 Cessna 185/206 engine repair (overhaul) 18,000 Engine room communications 3,500 Senator Green moved for adoption. Co-Chair Torgerson objected for an explanation. Senator Green asserted that this amendment addresses life and safety issues. There was no objection and the amendment was ADOPTED. DPS #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 16, line 20 Delete: Aircraft & Vessel 838,780 838,780 Repair & Maintenance (ED 99) Insert: Aircraft & Vessel 1,121,600 1,121,600 Repair & Maintenance (ED 99) This amendment was HELD. Senator Adams stated that he wished to evaluate the implications of the previous amendment before offering this one. DEPARTMENT OF REVENUE REV #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 17, line 17 Delete: AHFC Energy 520,000 520,000 Efficiency Monitoring Research (ED 99) Insert: AHFC Energy 700,000 700,000 Efficiency Monitoring Research (ED 99) Adjust the funding information in sec. 2 of this Act to reflect an increase in the appropriation of AHFC dividends. Senator Wilken moved for adoption. Co-Chair Torgerson objected for an explanation. Senator Wilken stated that this amendment corrects a typographical error made in the subcommittee report and incorporated into the committee substitute. Co-Chair Torgerson removed his objection and the amendment was ADOPTED. REV #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 18, line 5 Delete: AHFC Supplemental 3,900,000 3,900,000 Housing Developmental Program (ED 99) Insert: AHFC Supplemental 6,000,000 6,000,000 Housing Developmental Program (ED 99) Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams appreciated the $3.9 million appropriated to this component, but wanted to take advantage of available federal funds. He stated that for every dollar the state contributes, five dollars in federal funds is available. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green, Senator Leman and Co-Chair Torgerson ABSENT: Senator Phillips and Co-Chair Parnell The motion FAILED (1-6-2) The amendment FAILED to be adopted. REV #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 18, following line 6 Insert: Chugach View 4,000,000 2,000,000 2,000,000 Renovation Senator Adams corrected the amendment to reflect $2 million federal funds plus $2 million Alaska Housing Finance Corporation (AHFC) funds comprise the $4 million appropriation. Senator Adams AMENDED the amendment and moved for adoption. Co-Chair Torgerson objected. Senator Adams spoke to the motion saying that the 121 one- room unit facility was constructed in 1977 and needs improved handicapped accessibility to the units and the buildings themselves. He added that energy efficiency, electrical systems, compliance with state and federal laws and the residents' safety and living environments must be improved. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator P. Kelly, Senator Green, Senator Donley, Senator Leman, Senator Wilken and Co-Chair Torgerson ABSENT: Senator Phillips and Co-Chair Parnell The motion FAILED (1-6-2) The amendment FAILED to be adopted. REV #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 18, following line 6 Insert: Eyak Manor 1,600,000 1,600,000 Renovation Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams explained these funds would be used to complete the final phase of bringing this 30-year old facility up to code and extend its life another 25 to 30 years. He listed the items involved in the project including new smoke detectors, floor replacement, drywall, storage rooms, parking lot repairs and construction of playground facilities. He warned of high maintenance costs that would result if these upgrades were not completed. He added that this affects the health and safety of 30 to 40 residents of the facility. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green and Co-Chair Torgerson ABSENT: Senator Phillips and Co-Chair Parnell The motion FAILED (1-6-2) The amendment FAILED to be adopted. AT EASE 7:17 PM / 7:30 PM DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES DOT #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 18, following line 26 Insert: Corps of Engineers 404,000 404,000 Project: Kake Breakwater Construction (ED 5) Explanation: This amendment provides the final non-federal obligation for a $20 mm breakwater project, which will be completed this year. This amendment was NOT OFFERED to defer to DOT #2. [DOT #2 was taken up later in the meeting.] Co-Chair Torgerson stated that DOT #2 addresses items included in DOT #3 as well. DOT #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 25, line 3 Delete: Anchorage 34,305,265 2,646,265 31,659,000 Metropolitan Area Transportation Study Insert: Anchorage 40,005,265 3,159,265 36,846,000 Metropolitan Area Transportation Study Page 25, following line 6 Insert: Anchorage: 5,700,000 C Street Construction- Phase #3 Explanation: Includes funding for the construction of C Street Phase 3, which was deleted in the Governor's amendment to SB 192. This amendment was held and subsequently NOT OFFERED to defer to DOT #2. DOT #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 18, following line 26 Insert: Anchorage: Willow 110,000 110,000 Crest Elementary School Pedestrian Overpass Improvements Explanation: Includes design funding to improve access to existing pedestrian overpass in compliance with ADA requirements. This amendment was HELD. DOT #5: The amendment adds $1 million general funds for the Corps of Engineers, harbors program. Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams reminded that the governor had originally requested over $6 million to be used as matching funds for this project. Senator Adams stated that while this amendment does not completely fulfill the match requirement for any one project, it does give state support for communities that make local contributions. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator P. Kelly, Senator Green, Senator Donley, Senator Leman, Senator Wilken and Co-Chair Torgerson ABSENT: Senator Phillips and Co-Chair Parnell The motion FAILED (1-6-2) The amendment FAILED to be adopted. DOT #6: This amendment adds $757,400 general funds and $10,820,000 federal receipts to the Airports Budget Request Unit (BRU) and allocated to the following components. Aniak-Airport master plan $450,000 Dillingham-Airport master plan update 450,000 Kokhanok-Resurface & lighting 2,500,000 Kotzebue-Apron, terminal rehabilitation 2,620,000 Cold Bay-Generator building replacement 300,000 Kivalina-Resurfacing 1,000,000 Wales-Snow removal equipment, building rehab 600,000 Nightmute-Airport reconstruction 2,900,000 This amendment was NOT OFFERED to defer to DOT #2. DOT #7: This amendment adds $764,500 general funds and $7,645,000 federal receipts to the Capital Transportation Projects (CTP) BRU and allocated to the following components. Akiachak Sanitation Road Resurfacing $1,510,000 Bethel: Chief Eddie Hoffman Hwy 2,010,000 Separated Pathway Bethel: Tundra Ridge Rd. Improvements 775,000 Kotzebue: Ted Stevens Way Reconstruction 3,350,000 This amendment was held and subsequently NOT OFFERED. These items are included in DOT #2 with the exception of the Akiachak Sanitation Road. DOT #8: This amendment adds $195,100 Statutory Designated Program Receipts (SDPR) and $1,965,000 federal receipts to the Whittier Maintenance and Operations component. Senator Adams moved for adoption. Co-Chair Torgerson objected for an explanation. Senator Adams explained this amendment relates to the Whittier Tunnel and allows the department to collect a toll, the proceeds of which would be utilized for the operation of that tunnel. Co-Chair Torgerson relayed the Committee made a similar provision in the FY 01 operating budget to cover operating costs associated with the tunnel. Co-Chair Torgerson removed his objection. The amendment was ADOPTED without objection. DOT #9: This amendment makes the following changes to the committee substitute. Page 14, lines 25-29 Delete: It is the intent of the legislature that the department shares the use of the Tudor Road Maintenance Shop with the Municipality of Anchorage. Insert: Contingent upon the department entering into a Memorandum of Agreement with the Municipality of Anchorage to share the use of the Tudor Road Maintenance Shop, $200,000 is appropriated for the costs related to the transfer of this facility from the Department of Military and Veterans Affairs to the Department of Transportation and Public Facilities. Senator Donley stated this amendment has a net zero effect and changes the intent language relating to the transfer of the Tudor Road Maintenance Shop. He pointed out the contingency stipulating that the Department of Transportation and Public Facilities reach a joint use agreement with the Municipality of Anchorage. He moved for adoption of the amendment. Co-Chair Torgerson understood that the intent language was already contained in the committee substitute and that this amendment adds the contingency only. Without objection, the amendment was ADOPTED. DOT #2: This amendment appropriates the following amounts to the projects listed below. Corps of Engineers Project: Kake Breakwater Construction $404,000 gf Airport Improvement Program: Federal-Aid Aviation State Match 2,186,334 gf Anchorage International Airport: 4,000,000 Airfield Reconstruction Anchorage International Airport: 1,300,000 General Aviation Improvements Anchorage International Airport: 13,500,000 North and South Parallel Taxiway Aniak: Airport Master Plan 450,000 Cold Bay: Generator Building Replacement 300,000 Dillingham: Airport Master Plan Update 450,000 Fairbanks International Airport: 29,400 Maintenance Facility Construction Girdwood: Airport Master Plan 450,000 Haines: Airport Master Plan 300,000 Homer: Airport Master Plan 450,000 Ketchikan Airport: West Taxiway 8,000,000 Kivalina: Airport Resurfacing 1,000,000 Kokhanok: Airport Resurface and Lighting 2,500,000 Kotzebue: Apron and Terminal Area 2,620,000 Rehabilitation Nightmute: Airport Reconstruction 2,900,000 Sitka: Perimeter Security Improvement 250,000 Sitka: Property Acquisition and 9,655,000 Obstruction Removal Sitka: Runway 11 Approach Surface 50,000 Obstruction Removal Statewide: Airport Runway Signing 40,000 Talkeetna: Airport Improvement 2,000,000 - Phase 2 Wales: Airport Snow Removal Equipment 215,000 Building Rehabilitation and Snow Fence Repair Yakutat: Seaplane Float Replacement 600,000 AMATS Projects: AMATS State Match 565,802 gf Anchorage: C Street Construction 5,700,000 - Phase 3 Community Transportation Program: CTP State Match 878,979 gf Bethel: Chief Eddie Hoffman Highway 2,010,000 Separated Pathway Bethel: Tundra Ridge Road Improvement 775,000 Fairbanks: Illinois-Barnette Streets 2,720,000 and Bridge Reconstruction Kotzebue: Ted Stevens Way Reconstruction 3,350,000 Marine Transportation Projects: Marine Transportation State Match (731,737) National Highway System: NHS State Match (45,638)gf Seward Highway: (660,000) Milepost 56.2 Canyon Creek Wayside TRAAK: TRAAK State Match (300,200)gf Fairbanks North Star Borough: (365,000) Chena Pump/Tanana River Scenic Mat-Su: Big Lake - (550,000) Fish Creek Park Wayside McCarthy Road: (510,000) Kennicott River East/West Wayside Nome: Nome-Council Road - Solomon Wayside (185,000) Statewide: Scenic Byways Grants (290,000) Department of Transportation and Public Facilities Totals: $66,010,940 Federal funds 61,075,000 General Funds 2,956,540 Inter-Agency Receipt Funds 1,979,400 Senator Donley moved for adoption. Co-Chair Torgerson stated this amendment incorporates other proposed DOT amendments. Co-Chair Torgerson expressed that the subcommittee's original intent not to fund Corp of Engineer projects because the subcommittee had been told none were currently under construction. However, he noted that he had since learned that the project in Kake actually is under construction and that the first portion of the amendment provides matching funds for this project. Co-Chair Torgerson continued that the portion of the amendment funding airport improvement programs provides a $2,186,000 match for federal aviation funding. He noted that these items include all the aviation items with the exception of the Birchwood Airport master plan, that were presented to him in the form of a late amendment. Co-Chair Torgerson then addressed the $5.7 million C Street construction project included in the Anchorage Metropolitan Transportation Study (AMATS), saying the project had been removed from the governor's budget request and placed in a bonding package. Because the bond package was not before the Committee, Co-Chair Torgerson said this portion of the amendment reverses the earlier action and includes the project with the AMATS projects. Co-Chair Torgerson noted the Community Transportation Program (CTP) projects had also been transferred from the original budget request to the aforementioned bonding package, but were returned to their original placement in the CTP with this amendment. He listed those projects as the Chief Eddie Hoffman Highway, Tundra Ridge Road improvement, Illinois - Barnett Streets and bridge reconstruction, and the Ted Stevens Way reconstruction. Co-Chair Torgerson next addressed the Marine Highway System projects saying they had been "over-matched" using more general funds than were necessary. He stated that this amendment reverses the appropriation. The allocations to the Trails and Recreational Access for Alaska (TRAAK) and the Statewide Scenic Byways Grants projects, according to Co-Chair Torgerson, were reduced to reflect the governor's original budget request. Senator Phillips asked why the Girdwood, Haines and Homer airport master plans cost up to $450,000 each. KURT PARKAN, Deputy Commissioner, Department of Transportation and Public Facilities explained that airport master plans cost between $300,000 and $500,000 at rural Alaskan airports. Co-Chair Torgerson asked what is included in a master plan. Mr. Parkan detailed the many items, including a site map, studies of the possible airport uses, determination of the best configuration, lease-loss. He noted that private consulting firms prepare the master plans and the aforementioned figures are the amount charged to the state. He stressed that the federal government requires a master plan before providing federal funds for a project and that any project must be consistent with the master plan for that airport. Senator Leman commented that he had asked a representative of one of the leading private master planning firms why the cost was so high. Senator Leman was told that the cost had risen from $30,000 to approximately $250,000. He learned that the reason for the increase was the new federal requirements for pre-design, soil evaluations, and surveying. Senator Phillips said he had not heard anyone from the Birchwood Airstrip requesting this funding. He asked Mr. Parkan if communities make such requests to the department. Mr. Parkan responded that sometimes the community requests funding for a project or improvement. However, since all these airports are owned by the state, he stated that the department identifies many of the needs. He added that tenants of the airport make requests as well. He noted that Birchwood Airstrip is one of the busiest small airports in the state and that the facility is operating at full capacity. He continued that master plans require periodic updates, which may also be the case with the Birchwood Airstrip. Senator Phillips wanted to know who had made the funding request for the Birchwood Airstrip. Mr. Parkan said he would have to research that information. Co-Chair Torgerson stated he thought the cost estimates were high. Co-Chair Torgerson suggested adopting the amendment as is and revisiting the particular issues at a future meeting. Tape: SFC - 00 #83, Side B 7:45 PM Senator Phillips requested information on traffic volume at state-owned airports across the state. He cited the witness' statement that the Birchwood facility is a busy airstrip. He wanted to know where it rated in the state with regard to others. Senator Adams asked how the department reached the state match amount listed in the amendment for the Marine Highway System. Co-Chair Torgerson stated the department did not request this amendment and that the figure was garnered by the Division of Legislative Finance. He noted that the Marine Highway System's entire capital budget was over-authorized by $731,000. TRACY CARPENTER, Fiscal Analyst, Division of Legislative Finance explained how she reached the amount. She told how she took the list of marine transportation projects provided by the department and applied the match rates that are required. She said that using this method, she was able to calculate the required match for each project, rather than by category (i.e. AMATS, TRAAK and Marine Highway) as the department does. AT EASE 7:48 PM / 7:52 PM Co-Chair Torgerson requested back up information from the department for each of the projects listed in the amendment. Senator Phillips wanted information regarding the air traffic of the included airports. Senator Adams also requested the department prepare information showing how it calculates the state match requirement for the Marine Highway System projects. A roll call was taken on the motion. IN FAVOR: Senator Adams, Senator Wilken, Senator Green, Senator Donley, Senator Leman and Co-Chair Torgerson OPPOSED: Senator Phillips ABSENT: Co-Chair Parnell The motion PASSED (7-1-1) The amendment was ADOPTED. LEGISLATIVE AFFAIRS AGENCY LAA #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, following line 19 Insert: Museum Collection 295,600 295,600 Preservation- Modification & Renovation of Storage Page 16, following line 16 Insert: Seismic Data 60,000 60,000 Acquisition & Interpretation Page 39, lines 10-15 Delete: Legislature Repairs & 334,600 334,600 Improvements to Capitol Building & Grounds (ED 3-4) Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams expressed that the funds intended for use on the capitol building were to have been used for masonry cleaning and repairs, repairs to the parking garage and handrails, and for fire escape assessment and upgrades. However, he stated that the money would be better spent on the museum project and the seismic data equipment. He stressed that with the seismic data equipment, the state could analyze data important to certain areas of Alaska, which he listed. He suggested that an estimated $1.8 million appropriated to the agency would lapse and could be used for the building projects instead. Senator Phillips pointed out that the request was for more money than the amendment deleted. Senator Adams offered to amend the amendment to match the figures and provide a net zero effect. A roll call was taken on the motion. IN FAVOR: Senator Phillips, Senator Adams and Senator P. Kelly OPPOSED: Senator Green, Senator Donley, Senator Leman, Senator Wilken and Co-Chair Torgerson ABSENT: Co-Chair Parnell The motion FAILED (3-5-1) The amendment FAILED to be adopted. LANGUAGE SECTION LANG #1: This amendment changes the committee substitute as follows. Page 60, following line 5 Insert a new bill section to read: Sec. 12. FISH AND GAME FUND. The amount of revenue received from the sale of Chitina dip net fishing permits (AS 16.05.340(a)(22)) during the period January 1 through June 30, 2000, and for the fiscal year ending June 30, 2001, is appropriated to the fish and game fund (AS 16.05.100). Senator Wilken moved for adoption. Co-Chair Torgerson objected for an explanation. Senator Wilken asserted that the funds would be paid to the Ahtna and Chitina Native Corporations for access to the Chitina dip net fishery. Senator Adams wanted to know if this language was associated with pending legislation, SB 301, regarding the Chitina dip net fishery. Senator Wilken affirmed it was. Senator Green asked if any reference to the pending legislation or contingency language was necessary. Senator Wilken explained this was simply authorization to expend the fish and game fund. Co-Chair Torgerson noted that the permit fee is currently ten dollars and that SB 301 would increase the fee and subsequently the revenues generated from the permits. He stressed that even if that bill does not become law, this amendment still authorizes the department to expend the revenues as stipulated. Senator Donley pointed out that the amendment does not stipulate how the department is to expend the funds and asked if such language was elsewhere in the committee substitute. Co-Chair Torgerson responded that this amendment deposits the permit fees into the fish and game fund and that the legislature, could then appropriate the funds to the Native corporations. He was unsure if SB 301 or the FY 01 operating budget already provided for such an appropriation. Senator Green commented that the pending legislation, if passed, provides a contract with the Native corporations. KEVIN BROOKS, Director, Division of Administrative Services, Department of Fish and Game explained that the additional revenue received from the permits would be placed into the fish and game fund. He stated that SB 301 contains language allowing the legislature to appropriate those funds to the Native corporations. He said the members were correct that the funds were subject to legislative appropriation and that the appropriations are included in the department's operating budget. Co-Chair Torgerson asked what would happen if the SB 301 did not pass. Mr. Brooks detailed the concerns that the additional revenues from the proposed increase in the Chitina permit fees would be deposited into the general fund. That, he said, is the reason for this amendment separating those funds and placing them into the fish and game fund, which would make them available for appropriation to the Native corporations. There was no objection and the amendment was ADOPTED. LANG #2: This amendment inserts, "while in the custody of the state" following, "sum" on page 59, line 25 of the committee substitute. The amended language reads as follows. Sec. 10. TRANS-ALASKA PIPELINE LIABILITY FUND. the sum of $18,501,298.75, available from the state's rebate share of the federal Trans-Alaska Pipeline Liability Fund and all investment earnings on this sum, while in the custody of the state, until fully expended are appropriated to the Alaska Energy Authority for petroleum remediation at rural Alaska bulk fuel facilities in accordance with federal law (P.L. 101-380, sec. 8102(a)(B)(I)), requiring that the rebate by used for the remediation of above-ground storage tanks. Senator Donley moved for adoption. Co-Chair Torgerson told the Committee this was a technical amendment brought to his attention by the Division of Legal and Research Services. He said there had been a question as to whether or not interest earned on the $18.5 million was available for appropriation, thus necessitating this clarification. There was no objection and the amendment was ADOPTED. LANG #3: This amendment makes the following changes to the committee substitute. Page 60, following line 5 Insert a new bill section to read: Sec. 12. AIR SHOW. The sum of $10,000 is appropriated from the general fund to the Department of Military and Veterans Affairs for payment as a grant under AS 37.05.316 to the Air Force Association for fuel for an air show at the Elmendorf Air Force Base in June 2000, for the 80th anniversary of the Third Wing. The amendment also provides an immediate effective date for the new bill section. This amendment was held and subsequently NOT OFFERED. LANG #4: This amendment makes the following changes to the committee substitute. Insert a new bill section to read: Sec. A. MATANUSKA-SUSITNA BOROUGH AND ALASKA RAILROAD CORPORATION. (a) The unexpended and unobligated balance of the appropriation made by sec. 145(a), ch. 208, SLA 1990, as amended by sec. 55, ch. 100, SLA 1997 (Alaska Railroad Corporation - $9,000,000), is reappropriated (1) one-half to the Department of Administration for payment as a grant under AS 37.05.3 15 to the Matanuska-Susitna Borough for economic development in the borough, including port development and development of coal resources within the borough; and (2) one-half to the Alaska Railroad Corporation for the purchase of locomotives, rolling stock, and associated equipment and rail line improvements in the Matanuska-Susitna Borough, to facilitate the development of coal deposits in the Matanuska-Susitna Valley. (b) The unexpended and unobligated balance of the appropriation made by sec. 145(b), ch. 208, SLA 1990, added by sec. 56, ch. 100, SLA 1997, as amended by sec. 40(b), ch. 2, FSSLA 1999 (Alaska Railroad Corporation), is reappropriated (1) one-half to the Department of Administration for payment as a grant under AS 37.05.3 15 to the Matanuska-Susitna Borough for economic development in the borough, including port development and development of coal resources within the borough; and (2) one-half to the Alaska Railroad Corporation for the purchase of locomotives, rolling stock, and associated equipment and rail line improvements in the Matanuska-Susitna Borough, to facilitate the development of coal deposits in the Matanuska-Susitna Valley. Sec. B. The appropriations made by sec. A(a)(2) and A(b)(2) of this Act are for capital projects and lapse under AS 37.25.020. Senator Green moved for adoption. Senator Adams objected. Senator Green stated that this amendment relates to the "coal car" money that had been appropriated to the Mat-Su Borough and the Alaska Railroad Corporation in 1990. She said that the borough and the railroad developed a plan to make improvements to the railroad. Senator Green moved to amend the amendment to replace "Department of Administration" with "Department of Community and Economic Development" in the two places it appears in the amendment. There was no objection and the amendment was AMENDED. Senator Donley wanted to know how much money was left in the account. Senator Green stated that she would find out and relay that information to the Committee. Senator Adams commented that he was not concerned with the balance of the appropriation, but rather he asserted that the funds do not rightfully belong to any individual community or election district. He admonished that the money originally came from resource development on the North Slope. He stressed that the money belongs to the state as a whole and that "the railroad belongs to each one of us." Senator Wilken did not have a problem with adopting the amendment but did want more time to research the history of the original allocation. Senator Donley gave some history on the issue saying the package established in 1990 included $50 million that was previously allocated to Railbelt communities. He stated that those communities were never compensated. Senator Adams pointed out that the planned sale of the Four Dam Pool Project would replenish the Railbelt Interest Fund, which Senator Donley was referring to, with $20 million. He reiterated his position that the funds addressed in this amendment should be allocated statewide. Senator Green respectfully disagreed, claiming that the funds have been "carefully designated through the years" for the Mat-Su Borough and the Alaska Railroad Corporation to use for coal development within the borough. AT EASE 8:11 PM / 8:12 PM Without objection, Senator Green WITHDREW her motion to adopt the amendment as amended and the amendment was HELD. LANG #5: This amendment inserts a new bill section in the committee substitute to read as follows. Sec. A. Notwithstanding any other appropriation of FY 2001 program receipts of the Department of Community and Economic Development, division of occupational licensing, the sum of $140,000 is appropriated from nursing license fees received by the Department of Community and Economic Development during FY 2001 to the Department of Community and Economic Development, division of occupational licensing, Board of Nursing, for the Alaska Colleagues in Caring program for the fiscal year ending June 20, 2001. Senator Green moved for adoption and explained this item was in the governor's original budget request. She stated that this amendment would allow members of the Board of Nursing to participate in a nursing training program. She pointed out that the Board is willing to assess itself and conduct this training to provide nurses in a time of shortage. Co-Chair Torgerson emphasized this amendment does not involve general fund money but instead, SDPR. Senator Phillips objected to the motion arguing that this is an operating budget item and should not be included in the capital budget. A roll call was taken on the motion. IN FAVOR: Senator Donley, Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Senator Green and Co- Chair Torgerson OPPOSED: Senator Phillips ABSENT: Co-Chair Parnell The motion PASSED (7-1-1) The amendment was ADOPTED. LANG #6: This amendment makes the following changes to the committee substitute. Page 60, following line 6 Insert new bill sections to read: Sec 12. CAPITAL PROJECT MATCHING GRANTS FOR MUNICIPALITIES. (a) Subject to the conditions set out in (b) of this section, the sum of $1,359,990.00 is appropriated from the appropriate individual grant accounts in the municipal capital project matching grant fund (AS 37.06.010) to the Department of Community & Economic Development for payment as grants under AS 37.06.010 to the following municipalities in the amounts and for the purposes stated: Akhiok Community $56,196 Akiak Facilities 26,425 Anvik & Equipment 25,005 Atka 25,000 Atqasuk 144,039 Buckland 30,071 Eek 133,747 Gambell 25,000 Goodnews Bay 25,000 Grayling 55,976 Hoonah 26,820 Hooper Bay 89,565 Hughes 50,000 Marshall 25,029 Mekoryuk 52,079 Mountain Village 25,000 Napakiak 25,000 Newhalen 25,015 Nightmute 26,696 North Slope Borough 184,766 Northwest Arctic Borough 26,883 Pilot Station 53,569 Port Heiden 25,000 Port Lions 25,099 Ruby 28,000 Savoogna 25,000 Selawick 25,000 Stebbins 25,010 Unalakleet 25,000 Wales 25,000 (b) The appropriations made by (a) of this section are made contingent on the grantee complying before July 1, 2001, with the requirements, other than deadlines, set out in AS 37.06. Sec 13. CAPITAL PROJECT MATCHING GRANTS FOR UNINCORPORATED COMMUNITIES. (a) Subject to the conditions set out in (b) of this section, the sum of $789,305.00 is appropriated from the appropriated individual grant accounts in the unincorporated community capital project matching grant fund (AS) 37.06.020) to the Department of Community & Economic Development for payment as grants under AS 37.06.020 to the following unincorporated communities in the amounts and for the purposes stated: Birch Creek Community $26,421 Chistochina Facilities 25,000 Deltana & Equipment 25,039 Four Mile Road 25,653 Gakona 29,311 Healy Lake 25,014 Klukwan 51,615 Kongiganak 28,069 Lake Minchumina 56,360 Mentasta Lake 25,056 Nelchina/Mendeltna 25,069 Nikolski 57,315 Oscarville 55,879 Pitkas Point 25,002 Port Protection 25,001 Rampart 25,026 Red Devil 25,001 Silver Springs 25,663 Takotna 56,180 Tatitlek 25,036 Tazlina 26,311 Tununak 25,021 Tuntutuliak 25,074 Twin Hills 25,003 Whale Pass 25,186 (b) The appropriations made by (a) of this section are made contingent on the grantee complying before July 1, 2001, with the requirements, other than deadlines, set out in AS 37.06. Senator Adams explained how instead of waiting for each community to identify its intended capital projects after the legislature adjourns this amendment allocates the balance of each community's grant fund to "community equipment and facilities". He moved for adoption. Co-Chair Torgerson asked if this amendment accounts for the unincorporated communities' portion of the community matching grant program. Senator Adams answered that was correct. AT EASE 8:16 PM / 8:16 PM Ms. Carpenter explained how the Capital Projects Matching Grants program works. She told how the legislature annually appropriates funds into the municipal and unincorporated matching grant funds with $25,000 allocated to each community. She continued that the community or municipality applies to the department to expend funds from their account on a chosen project. The department, she said, then submits those projects as part of the state's annual capital budget. Ms. Carpenter showed how this amendment reflects those communities that have not identified a project and therefore not yet applied for an allocation. She explained that the contingent language is included in this section of the bill stating that if a listed municipality or community comes forward with a request, after the legislature adjourns, the department has the authority to expend the funds. Ms. Carpenter clarified that the funds in question are considered other fund sources than the general fund. She explained this is because those expenditures have already been accounted for when the $25,000 for each community was deposited into the capital projects matching grant fund. Co-Chair Torgerson understood a community could go as long as five years before taking a draw from the grant account. He emphasized that this amendment has no general fund impact at this time. Ms. Carpenter affirmed on both counts. Senator Wilken wanted to know the basis of the dollar amounts shown for each community listed in the amendment. Ms. Carpenter explained these were the actual account balances for each community. She told how the department is required to track the amounts allocated to each community. She noted that sometimes a community allows the account to build before making a withdrawal. She added that these accounts also accrue interest based on the balance of the entire grant fund. Senator Wilken asked if therefore, Atqasuk is unable to accept any further deposits because five years has lapsed since it last withdrew funds for a capital project. Ms. Carpenter replied that it was not correct that Atqasuk could not receive additional funds, although she said it had been some time since the community used this fund to undertake a capital project. She offered to supply a complete account history for each community. Senator Wilken clarified that there is not a five-year time limit on expenditure of these funds. Ms. Carpenter responded that this issue enters "murky waters" because of statutory language relating to the program. Co-Chair Torgerson guessed that a portion of the money in the Atqasuk account could be interest earnings. Senator Wilken commented that if this municipality doesn't need the $144,000, another community could use those funds because it has drawn from its own account. He expressed that this matter should be investigated, saying that if a exists five-year limitation, the legislature should require the communities to adhere. Co-Chair Torgerson clarified that the communities are not required to expend the funds in the same year they are allocated. He stressed that the amendment's sponsor is trying to make those funds available to these communities if applications are submitted for capital projects. Senator Phillips asked for the location of Silver Springs since he was unfamiliar with the community. Without objection the amendment was ADOPTED. LANG #7: This amendment makes the following changes to the committee substitute. Page 58, following line 1, Insert new bill sections to read: Sec. 3 The following appropriation items are for capital projects and grants as set out in section 4 by funding source to the agencies named for the purposes expressed and lapse under AS 37.25.020. unless otherwise noted. Appropriation Department of Education and Early Development Chevak School Replacement 28,272,551 Pilot Station School Replacement 17,654,003 Manokotak School Replacement 14,689,464 Koflik School Replacement 17,910,901 Elim School Phase III 12,146,788 Noorvik K- 12 Improvements 13,633,183 Golovin School Phase IH 9,609,516 Togiak School Replacement 25,027,049 Koyuk K-12 School 14,059,664 Akiachak Elementary Replacement & 14,370,287 Secondary Renovation Tuluksak Elementary & Secondary 15,314,896 Improvement Teller K- 12 School Expansion 11,825,312 White Mountain New K-12 School 10,787,903 Hooper Bay Renovation & Addition 15,459,618 Naukati School Replacement 3,183,725 Ambler K- 12 Improvements 5,929,622 Howard Valentine School Construction 2,095,651 Chief Paul Memorial School Addition, Kipnuk 9,404,511 Glennallen Elementary School Replacement 6,005,661 Lime Village School Addition 280,011 Kiana K- 12 Improvements 8,931,155 New Stuyahok K- 12 Remodel & Expansion 10,935,900 Chaptnguak School Addition, Chefornak 6,653,529 Kake Elementary Addition 2,237,460 Dick R. Kiunya Memorial School Addition, 4,422,937 Koniganak Scammon Bay Renovation & Addition 10,240,774 Mount Eccles Renovation/Addition 3,026,456 Circle K- 12 Replacement 1,953,949 Arctic Village Addition & Renovation 3,925,459 Peterson Elementary Addition 756,000 Craig Elementary School Addition/Renovation 5,001,968 Haines Kitchen Remodel & Cafeteria Addition 435,448 Nightmute School Addition 3,035,209 3,035,209 Joann Alexie Memorial School Addition 3,803,429 Kwethluk School Addition 7,013,604 Kwigillingok School Addition 3,921,651 Sheldon Point Renovation & Addition 6,554,730 Southeast Island - Covered 211,174 Physical Education Areas Kuspuk Joseph & Olinga Gregory Elementary 3,977,981 Replacement, Upper Kalskag Nikolski Multipurpose Room Addition 641,733 University of Alaska University of Alaska, Southeast Egan Building Classroom Addition 7,642,600 University of Alaska, Anchorage Consortium Library 31,400,000 Sec. 4 The following sets out the funding by agency for the appropriations made in sec. 3 of this Act. Department of Education and Early Development Alaska Housing Finance Corporation/ Tobacco Bonds $335,340,862 University of Alaska Alaska Housing Finance Corporation/ Tobacco Bonds 39,042,600 The following summarizes the funding sources for the appropriations made in section 3 of this act. Alaska Housing Finance Corporation/ Tobacco Bonds $374,383,462 Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams moved to amend the amendment to add $42,000,000 in AHFC/Tobacco Bonds for the Eagle River High School as reflected in LANG #7A. Senator Phillips objected. A roll call was taken on the motion. IN FAVOR: Senator Leman, Senator Adams and Senator P. Kelly OPPOSED: Senator Phillips, Senator Donley, Senator Wilken, Senator Green and Co-Chair Torgerson ABSENT: Co-Chair Parnell The motion FAILED (3-5-1) The amendment FAILED to be amended. Senator Adams spoke to the main motion as 40 identified school facilities throughout the state that need to be replaced. He noted the amendment also includes funding for University of Alaska facilities. Senator Adams explained that these projects would be funded using the money the state receives from the tobacco settlement on an annual basis to issue revenue bonds through the (AHFC). He stressed that revenue bonds should be issued to address the need for school facilities in Alaska. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips and Co- Chair Torgerson ABSENT: Co-Chair Parnell The motion FAILED (1-7-1) The amendment FAILED to be adopted. LANG #8: This amendment makes the following changes to the committee substitute. Page 60, following line 5 Insert a new bill section to read: Sec. 12. CAPITOL AND GROUNDS. The unexpended and unobligated balances, not to exceed $334,600, of the appropriations made in sec. 43, committee substitute. 84, SLA 1999, page 50, line 19 (Legislative Budget and Audit Committee - $6,196,100), line 24 (Legislative Council - $19,710,100), and line 31 (Legislative Operating Budget - $5,720,100) are reappropriated to the Legislative Affairs Agency for repairs and improvements to the capitol and capitol grounds. The amendment also provides an immediate effective date for this section and makes conforming changes as necessary. Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams explained that the amendment used lapsed funds to address maintenance needs in and around the Capital Building. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley and Co-Chair Torgerson ABSENT: Co-Chair Parnell The motion FAILED (1-7-1) The amendment FAILED to be adopted. MUNICIPAL / UNINCORPORATED MATCHING GRANTS MUNI & UNICORP #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 39, lines 24-26 Delete: Aleknagik Foxville 25,019 25,019 Roadway Extension & Seaplane Base (ED 39) Page 39, line 27 Delete: Aleknagik North Shore 25,369 25,369 Sludge Lagoon & Landfill Relocation & Road (ED 39) Insert: Aleknagik North Shore 25,019 25,019 Sludge Lagoon & Landfill Relocation & Road (ED 39) Page 43, line 9 Delete: Fairbanks North Star 126,817 126,817 Borough Animal Shelter - Remodel & Expansion of Kennels (ED 29-34) Insert: Fairbanks North Star 125,982 125,982 Borough Animal Shelter - Remodel & Expansion of Kennels (ED 29-34) Page 49, following line 21 Insert: Scammon Bay Sewage 26,738 26,738 Lines & Manhole Repairs Page 50, following line 21 Insert: Teller Cable TV 25,000 25,000 Buyout, Phase II/ Expansion Page 59, following line 28 Insert: Upper Kalskag 25,000 25,000 Community Restoration & Graveyard Restoration Page 50, following line 32 Insert: Wasilla Iditapark 107,487 107,487 Site Improvements & Utilities Page 51, following line 16 Insert: Beaver Community 25,000 25,000 Restoration & Graveyard Restoration Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams stated that this is a technical amendment that corrects the amounts that should be appropriated to these items. Co-Chair Torgerson asked about the site improvements and utilities project in Wasilla. ANNALEE MCCONNELL, Director, Office of Management and Budget, Office of the Governor stated that these are projects in the capital projects matching grants program. She addressed Senator Wilken's earlier questions on the program stating that $25,000 is the minimum amount allocated to a community each year and that many communities are entitled to more that that amount. Ms. McConnell said she did not know specifics of the Wasilla project but pointed out that the department does not exercise discretion over the projects, but rather forwards the applications to the legislature for expenditure approval. She stated that in the case of this amendment, these items were submitted after the budget was drafted. She expressed that it is fairly typical throughout the year for communities to rearrange or change expenditure needs for various projects. Senator Adams shared that he did not mind holding this amendment for further research. Senator Donley asked about the Teller Cable TV buyout project. Ms. McConnell repeated that the department does not approve or disapprove each project as dictated by the guidelines of the grant program. Without objection, Senator Adams WITHDREW his motion to adopt the amendment. The amendment was HELD. AT EASE 8:30 PM / 8:31 PM Co-Chair Torgerson announced the conclusion of amendments heard at this hearing. He ordered the bill HELD in Committee.