SENATE BILL NO. 192 "An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date." The Committee resumed consideration of amendments to the CS SB 192 1-GS2043\H. 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 Co-Chair Parnell moved for adoption and told the Committee that the U.S. Congress and the Federal Communications Commission (FCC) have mandated that all television stations convert to digital television or lose their license to broadcast. He noted that the deadline for public stations is the year 2003, and is 2002 for commercial stations. He stated that KAKM is collaborating on this conversion effort with local commercial stations, thus necessitating the earlier completion. By sharing a single communications tower, he explained, each station would save approximately $1 million. Without this funding, he warned, KAKM cannot partner with the other stations and subsequently incur the additional expense. He pointed out additional savings this amendment provides, as the $300,000 appropriation secures $600,000 federal funds, plus another $600,000 from other sources. There was no objection and the amendment was 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 (AS37.05.315) 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 Slatterville 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 NOT OFFERED. AT EASE 6:11 PM / 6:12 PM DEPARTMENT OF ADMINISTRATION (cont.) ADM #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 2, lines 13-16 Delete: Information Service 3,141,000 3,141,000 Fund Equipment Replacement (ED 99) Land Mobile Radio 1,200,000 850,000 350,000 Migration (ED 99) Insert: Information Service 4,341,000 4,341,000 Fund Equipment 3,141,000 Replacement (ED 99) Land Mobile 1,200,000 Radio Migration (ED 99) Explanation: This amendment changes the funding source for $850,000 of the Land Mobile Radio Migration project from general funds to Information Service Funds (ISF). The Department of Administration, Information Technology Group (ITG) staffs and manages a large part of the technology and communications activity for all departments. The funding source for ITG's personnel, equipment, etc. comes from "charge-backs" that all departments pay into the ISF, which is a general fund internal service fund (a subfund of the general fund). ITG sets out support charges and depreciation schedules for its personnel and equipment to determine how much each department will pay for the services it receives. Because the departments co-mingle fund sources in their payments for ITG services, the Department of Administration estimates that the ISF may be made up from as much as 60 percent federal money (this is an estimate because there has never been a financial analysis of the fed's contribution.) The Land Mobile Radio Migration request comes from the Department of Administration, the same department that manages the ISF. The department agrees with the sponsor that the radio project qualifies as a type of service that the ISF could pay for under the statutes. Funding sources by project: Equipment Replacement $3,141,000 ISF Land Mobile Radio 850,000 ISF Migration 350,000 Federal Funds Co-Chair Parnell moved for adoption. Co-Chair Torgerson spoke to the funding source changes made in this amendment noting that the federal funding is not jeopardized. Without objection, 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 NOT OFFERED to defer to M&VA #3. 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 NOT OFFERED to defer to M&VA #3. M&VA #3: 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 150,000 150,000 Development Corporation: Feasibility study for a Department of Defense Global Logistics /Forward Mobility Hub in Anchorage (ED 10-25) Insert a new bill section to read: Sec.__. 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 at the Elmendorf Air Force Base in June, 2000, for the 80th anniversary of the Third Wing. Explanation: This amendment provides for an independent consultant's analysis of the feasibility of establishing a military logistics center in Anchorage and grants to the Air Force Association funds to pay fuel costs for the air show at the Elmendorf Air Force Base in June 2000. Senator Adams moved for adoption on behalf of Senator Leman. Co-Chair Torgerson spoke to the amendment, listing the amounts appropriated to the two items. Senator Phillips objected. A roll call was taken on the motion. IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Donley, Senator Leman, Senator Adams, Co-Chair Parnell and Co-Chair Torgerson OPPOSED: Senator Phillips ABSENT: Senator Green The motion PASSED (7-1-1) The amendment was ADOPTED. DEPARTMENT OF PUBLIC SAFETY 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) Senator Adams spoke to the importance of funding for these deferred maintenance needs and moved for adoption. Without objection, Senator Adams WITHDREW his motion and the amendment was NOT OFFERED to defer to DPS #3. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES 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. Senator Donley noted this amendment would be NOT OFFERED due to action taken on DOT #2 at the previous hearing. 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. Senator Donley moved for adoption. Without debate or objection the amendment was ADOPTED. LANGUAGE SECTION 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 NOT OFFERED. AT EASE 6:18 PM / 6:19 PM MUNICIPAL / UNINCORPORATED MUNICIPALITIES 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 and explained the amendment makes technical language and dollar amount changes to the committee substitute. Co-Chair Torgerson explained the reason this amendment was not taken up during the first hearing was to first verify the information with the Division of Legislative Finance. He stated that this practice is standard in the budget process. He expressed that he had no objection to the amendment. Senator P. Kelly asked the effect of this amendment on general fund. Co-Chair Torgerson responded the impact is "net zero". The amendment was ADOPTED without objection. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.) 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 Senator Adams stated that this amendment would be NOT OFFERED due to action taken on DOT #2 at the previous hearing. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT C&ED #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, line 16 Delete: State Historic 50,000 50,000 Preservation Office (ED 99) Page 3, following line 16 Insert: Grants to Named Recipients State Historic 50,000 50,000 Preservation Office (ED 99) Explanation: Moves a named grant for the State Historic Preservation Office from the Department of Community and Economic Development to the Department of Natural Resources. No funding changes. Co-Chair Parnell moved for adoption. Co-Chair Torgerson explained this amendment has a negligible effect on the general fund because the same amount of funds is transferred from one department to another. Senator Phillips asked if this were an operating or capital expense. Co-Chair Torgerson responded that this is a capital budget item. He explained that this is money for the films and pictures that are in the historical preservation office that need preservation. There was no objection and the amendment was ADOPTED. C&ED #5: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 3, line 9 Delete: U.S. Forest Service 200,000 200,000 Mini-Grants Insert: U.S. Forest Service 700,000 700,000 Mini-Grants Explanation: The Department of Community and Economic Development recently received notification that an additional $500,000 in federal funding has been authorized by the Denali Commission for this program. There are no match requirements. The objective of this grant program is to strengthen rural communities by helping capitalize on their potential to diversify and expand their economies through the use of natural resources and by developing new economic activity in non-forest related industries. For the past several years the department has received $200,000 from the USDA to address the long-term vitality of rural areas and focuses on enhancing the overall quality of rural life primarily through natural resource based solutions. This additional authorization will bring the mini-grant program to $700,000 in federal receipts. Senator Adams moved for adoption. Co-Chair Torgerson objected for an explanation. Senator Adams read the explanation statement. Co-Chair Torgerson pointed out that the funding travels directly from the Denali Commission to the department. Co-Chair Torgerson removed his objection. The amendment was ADOPTED without objection. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (cont.) E&ED #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, following line 19 Insert: Grants to Named Recipients (AS 37.05.316) Alaska Aviation 50,000 50,000 Heritage Museum Explanation: This amendment provides for funding for the operation of the museum and gift shop during the fiscal year ending June 30, 2001. Co-Chair Parnell moved for adoption. Co-Chair Torgerson stated this amendment is a one-time appropriation. Senator Phillips objected. A roll call was taken on the motion. IN FAVOR: Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Senator Green, Senator Donley, Co-Chair Parnell and Co-Chair Torgerson OPPOSED: Senator Phillips The motion PASSED (8-1) The amendment was ADOPTED. LANGUAGE SECTION (cont.) LANG #9: This amendment inserts a new bill section in the committee substitute to read as follows. Sec A. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM. The amount received by the National Petroleum Reserve - Alaska special revenue fund (AS 37.05.530) under 42 U.S.C. 6508 during the fiscal year ending June 30, 2001, is appropriated to the Department of Community and Economic Development for the fiscal year ending June 30, 2001, for grants under the National Petroleum Reserve - Alaska impact program. Explanation: AS 37.05.530 establishes the National Petroleum Reserve - Alaska (NPRA) special revenue fund and impact grant program. Federal funds through the Bureau of Land Management (BLM) are dispersed to the State under 42 U.S.C. 6508. The Department of Community and Economic Development administers the grant program. Municipalities impacted by NPRA oil and gas development may apply for and be eligible to receive grants to alleviate the impacts. BLM recently held a NPRA lease sale and current estimates are that the State should receive annually approximately $2.0 million for the next ten years. This figure is subject to change, especially if there are additional lease sales held. Senator Adams moved for adoption. He noted this amendment is standard language contained in all budgets. He stated the intent to divide the funds between the permanent fund, the school public trust fund and the Power Cost Equalization (PCE) fund. Co-Chair Torgerson noted this amendment appropriates funds for the following year and is an annual process. There was no objection and the amendment was ADOPTED. LANG #4 as Amended: 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 Community and Economic Development 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 Community and Economic Development 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. [This amendment was amended in a previous hearing and held.] Senator Green moved for adoption. Senator Adams objected. Senator Adams spoke to his objection repeating his earlier argument that the money belongs to the entire state rather than specified communities located along the Railbelt. A roll call was taken on the motion. IN FAVOR: Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson OPPOSED: Senator Adams The motion PASSED (8-1) The amended amendment was ADOPTED. Co-Chair Parnell moved to allow the Division of Legal and Research Services and the Division of Legislative Finance to make technical adjustments to the committee substitute as necessary when incorporating the adopted amendments. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.) DOT #9: This amendment was adopted in a previous hearing. Senator Donley noted a technical correction to the language of the amendment. "Shop" should read "Site" in the two places it appears in the amendment. The corrected language reads as follows. Page 14, lines 25-29 Delete: It is the intent of the legislature that the department shares the use of the Tudor Road Maintenance Site 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 Site, $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. AT EASE 6:30 PM / 6:34 PM DEPARTMENT OF PUBLIC SAFETY (cont.) DPS #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 16, line 20 Delete: Aircraft & Vessel 838,780 838,700 Repair & Maintenance (ED 99) Insert: Aircraft & Vessel 1,063,780 1,063,780 Repair & Maintenance (ED 99) Page 16, line 30 Delete: Southeast Emergency 275,000 275,000 50,000 Communications Upgrade (ED 3-4) Insert: Southeast Emergency 50,000 Communications Upgrade (ED 3-4) Senator Adams requested the department speak to this amendment and moved for its adoption. He noted that the Southeast Emergency Communications Upgrade is a new project and that the allocated funds are not enough to fully fund it. Therefore, he said he would rather the money be used for the Aircraft and Vessel Repair and Maintenance component. Co-Chair Torgerson objected. KEN BISCHOFF, Director, Division of Administrative Services, Department of Public Safety, stated that this amendment is similar to DPS #1A, which reduced the appropriations to the communications project. He explained that this amendment transfers the remaining general funds for this project. Senator Donley remembered the balance of the appropriation, after the adoption of DPS #1A was more $200,000. Mr. Bischoff responded that there had been an additional $50,000 in other funds appropriated from the Oil Spill Response Fund. However, he was not comfortable that the vessel and aircraft projects would qualify for those funds. Senator Donley asserted that this amendment does not conform to the changes made under DPS #1A, which left a general fund balance of $171,500 in the communication's project. Senator Adams clarified that this amendment transfers that $171,500. ANNALEE MCCONNELL, Director, Office of Management and Budget, Office of the Governor restated that the appropriation, after the reduction taken in DPS #1A, is not sufficient to undertake the communication's project. Rather than have a seriously underfunded project, she said, it is preferable to use the money to fund the aircraft and vessel repair and maintenance component. Senator Wilken noted that the reduced amount allows for the purchase of the communication's equipment but not enough to pay for the installation. Co-Chair Torgerson maintained his objection. A roll call was taken on the motion. IN FAVOR: Senator Green, Senator Adams and Senator P. Kelly OPPOSED: Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson The motion FAILED (3-6) The amendment FAILED to be adopted. Co-Chair Parnell offered a motion to report from Committee CS SB 192, 1-GS2043\H, as amended. Co-Chair Torgerson thanked those involved in the process of the FY 01 Capital Budget. There was no objection and the bill was MOVED from Committee. AT EASE 6:45 PM / 7:00 PM