SENATE BILL NO. 291 "An Act making supplemental and other appropriations; amending appropriations; and providing for an effective date." DEB DAVIDSON, staff to Co-Chair Donley, outlined the Budget Request Units (BRU) items that were contained in the original bill but are not included in a proposed committee substitute. She listed those items according to the bill section in the original bill as follows. Section 2(b) Department of Environmental Conservation International Trade & Business Development International Trade and Business Endowment - replace unrealized FY 02 Investment Earnings - Fund Source Change $230,400 general funds Section 4(b) Department of Health and Social Services Subsidized Adoptions & Guardianship Formula program caseload growth $2,529,600 general funds Ms. Davidson relayed this BRU also relates to a Foster Care Services BRU, which is included in the Governor's regular supplemental budget. Therefore, she said, it was determined the two items should be considered together and this BRU was removed from the proposed fast track budget supplemental committee substitute. Section 6 Department of Military and Veterans Affairs Disaster Planning & Control Costs to maintain 24-hour State Emergency Coordination Center (SECC), the agency that coordinates all federal, state and local jurisdictional responses associated with any disaster or event. Ms. Davidson informed this BRU was omitted from the proposed committee substitute after consultation with the Department of Military and Veterans Affairs budget subcommittee, whereby the subcommittee had been assured the amount originally appropriated would be sufficient. Section 7 Department of Natural Resources CIP Scope change for SLA 97, ch. 50, Sec. 15(k), page 9, line 13 - from: prepare and administer the Kalgin Island II, Caribou Hills, S. Ninilchik-Dome View, South Ninilchik Block timber sales in Kenai Peninsula, to: Kenai Peninsula to reduce risks from wildfire. Ms. Davidson stated it has been learned that non-general funds could be used for Kenai Peninsula wildfire efforts. She stated it was decided to therefore omit this item from the fast track supplemental to allow additional time to research other fund sources. Senator Ward asked what the non-general fund sources could be. Senator Leman shared that two fund sources could be used for a portion of this budget item. He listed "Section 319" and "Section 106" funds derived from the federal Clean Water Act. He gave reseeding and replanting as portions of the project that could be undertaken using federal funds. Senator Ward asked the percentage of the general funds available for reallocation if the federal funds are utilized. Senator Leman estimated up to $200,000 of the over $300,000 amount in question. Section 8 Governor Elections Costs for printing and mailing a Primary Election Voter Education Guide in time to explain the new law (shifted from FY 03 budget which will be amended) $25,000 Section 9(a) Department of Community and Economic Development Power Cost Equalization & Rural Electrification Fund Technical correction to add the inadvertently omitted FY 02 appropriation from the Power Cost Equalization Endowment fund to the Power Cost Equalization and Rural Electrification Fund $7,062,200 PCE EF Section 9(b) Department of Community and Economic Development Power Cost Equalization & Rural Electrification Fund Fully fund the statutory formula in the PCE statute. Cost increase is due to higher fuel costs. $1,100,000 general fund Section 9(c) Department of Community and Economic Development Power Cost Equalization Fully fund PCE statute. Increase Department of Education and Early Development to higher fuel costs. $1,100,000 PCE funds Section 9(d)(1) Department of Community and Economic Development Power Cost Equalization Delete sufficient authorization from FY 02 to pay FY 01 late bills. -$56,800 PCE funds Section 9(d)(2) Department of Community and Economic Development Power Cost Equalization Add authorization to pay power cost equalization program FY 01 late bills. $56,800 PCE funds Ms. Davidson commented that subsections (d)(1) and (2) were more appropriately a ratification as the funds were expended in FY 01 using FY 02 funds. Section 10 (b) Department of Transportation and Public Facilities Northern Region CIP Chandalare Maintenance Station Replacement Design Costs (SDPR from NTSC) $456,800 Statutory Designated Program Receipts. Ms. Davidson explained this amount would be from the bond issuance of the Northern Tobacco Securitization Corporation. She stated that in reviewing the request it has been anticipated that approximately $3.9 million general funds, plus $840,000 federal funds would be required to complete the project. She noted the proposed FY 03 capital budget contains a request for approximately $1 million for snow equipment removal. In addition, she pointed out, SB 262 allocates further funding for this project. She stated that with the absence of a specific budget request for actual construction of this facility, funding for the design costs is not a fast track item. Senator Hoffman asked the affects of the omission of Section 9 from the Administration. Co-Chair Donley noted this bill would not be moved from Committee at this time and that the Power Cost Equalization funding would be discussed with members of the House Finance Committee. Senator Leman moved to adopt CS SB 291, 22-GS2102\F as a working draft. Senator Hoffman objected, as funding for the Power Cost Equalization program was not included. A roll call was taken on the motion. IN FAVOR: Senator Wilken, Senator Austerman, Senator Leman, Senator Ward and Co-Chair Donley OPPOSED: Senator Hoffman and Senator Olson ABSENT: Senator Green and Co-Chair Kelly The motion PASSED (5-2-2) The committee substitute was ADOPTED as a working draft. MARLA GREENSTEIN, Executive Director, Alaska Commission on Judicial Conduct, testified via teleconference from Anchorage that she is available to answer questions. Co-Chair Donley ordered the bill HELD in Committee.