SENATE BILL NO. 230 "An Act making and amending appropriations, including capital appropriations, supplemental appropriations, and other appropriations; making appropriations to capitalize funds; and providing for an effective date." SENATE BILL NO. 253 "An Act making capital appropriations for deferred maintenance projects, equipment replacement, and emergency repairs; and providing for an effective date." Department of Corrections  LESLIE HOUSTON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS, discussed the appropriation and deferred maintenance requests. DM AMD 49376 Deferred Maintenance Projects $6,500,000 The department requested general fund dollars to support 11 projects. The projects, listed by priority, were as follows: · Anvil Mountain: Replace security control system located in both security control stations. Fire/Life safety code requirement $750,000 · Anvil Mountain: Construct new utilidor. Fire/Life safety code requirement $1,500,000 · Anvil Mountain Correctional Facility: Replace failing septic tank with waste water treatment plant. $1,500,000 · Palmer: Replace fire pump and fix sprinkler piping. $750,000 · Wildwood: Replace roofing system. $940,000 · Spring Creek: Analyze security control system and perimeter security. $145,000 · Ketchikan: Design secure efficient lighting system. $55,000 · Ketchikan: Replace existing lighting system with secure and efficient lighting system. $390,000 · Palmer: Replace obsolete fire alarm panels in medical, administration, warehouse and maintenance shop. $200,000 · Hiland Mountain: Replace and expand exterior freezer. $140,000 · Wildwood: Replace fire alarm system. $130,000 Co-Chair Stedman solicited questions pertaining to the project list. No questions being offered, Ms. Huston continued to the FY11 capital budget request. Two items comprised the departmental request: CAP RN 45637 Anchorage Correctional Complex Renovation and Remodeling $350,000 CAP RN 41516 Community Jails Repairs, Renovations, and Equipment $100,000 Co-Chair Stedman solicited questions pertaining to the project requests. Department of Law    CAP 49182 Fairbanks and Anchorage Key Card Office Access $150,000 DAVE BALISDELL, DIRECTOR, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT OF LAW, explained that the request would fund implementation of a Key Card system in Anchorage facilities. Metal keys were currently being used in the facilities. When the keys are lost, all locks in the building must be changed, which is of considerable expense to the department. Key Cards would alleviate the issue. Senator Thomas wondered about future technology involving retinal scans. Mr. Blaisdale replied that the technology is available but expensive. Co-Chair Stedman invited questions pertaining to the request. Office of the Governor Language  LINDA PEREZ, ADMINISTRATIVE DIRECTOR, OFFICE OF THE GOVERNOR, gave an overview of the two capital budget project requests. CAP 49388 Division of Elections Technology Refresh $123,800 The request represents the scheduled replacement of desktop computers, software, and operating systems, within the department, every four years. CAP RN AMD 48416 Elections Reform Under the Federal Help America Vote Act $1,499,900 Ms. Perez explained that the request was to expend federal monies received in the election fund from the Help America Vote Act, which is an ongoing appropriation from the federal government to better the process of elections throughout the state. KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, pointed out changes in the capital language sections of the budget. There were four amendments in the language section that had already been transmitted. Section 7 allows for state agencies to refer to Legislative Budget and Audit concerning incoming requests for federal or other program receipts. Section 8 is the Fund Transfers portion of the bill. Sub-section (a), speaks to the Alaska Capital Income Fund. Sub-section (b) pertains to the federal Help America Vote Act funds; Line 24 was amended to read $1,425,000. Line 25 was amended to read $74,900 from the general fund for the matching portion. Because the Division of Elections had been notified that the match requirements had been met and no additional funds were necessary, the administration planed to submit an amendment that would remove the general fund match requirement. 3:23:11 PM Ms. Rehfeld discussed Sub-sections (c), which was a $25 million request for the Renewable Energy Fund. The amount in Sub-section (d) was amended to read $140 million, based on the latest information available from the Department of Revenue (DOR). Co-Chair Stedman requested a detailed breakdown of who was being paid by TransCanada, and how much. Ms. Rehfeld replied that DOR compiled a monthly report, and that copies would be made available for the committee. Ms. Rehfeld continued to Sub-section (e), which speaks to the Alaska Industrial Development Export Authority (AIDEA) dividend into the power project fund. Section 9 is the insurance claim section. Section 10 is the National Petroleum Reserve- Alaska Impact Grant Program, which was reduced to $4,847,165, for specific grants. The revenue was derived from leasing, and the additional revenue had not been anticipated during this period, thus the reduction of the grant amount in the budget. Section 11 deals with the cost of certificates of participation. 3:25:24 PM Ms. Rehfeld highlighted that one of the proposed amendments concerns the Alaska Class Ferry. The amendment requests access to $60 million that had been set aside in the vessel replacement fund, and the redirection of two prior federal appropriations for fast ferries to the Alaska Class Ferry Project. Section 12 provides for the lapse of various capital appropriations and an effective date. Co-Chair Hoffman asked for a list of lapse extension projects. Ms. Rehfeld explained that the section describes appropriations made in the various components of the entire capital budget that would have a lapse extension for capital projects. 3:26:56 PM Senator Thomas noted similar Information Technology (IT) project requests within different departments. He wondered if individual contractors had been hired by departments to research the IT requests. Ms. Rehfeld replied that an extensive IT planning process was employed yearly, and projects went through internal review. The departments share information in order to prevent duplication of information between agencies. She felt that the items that had been brought forward were of significant importance to the department. All IT projects are reviewed by the Enterprise Investment Board, which is comprised of Ms. Rehfeld, the Commissioner of Administration, a representative of the technical group and one other member. The board goes through the review process of agency requests and formulates budget decisions and recommendations to the governor. Co-Chair Hoffman asked why Alaska Housing Capital Corporation funds, and not the general funds, were being considered as the funding source for the $150,000 Alaska Gas Inducement Act reimbursement fund. Ms. Rehfeld stated that the administration felt that the funding source was the most appropriate source for the project. 3:31:05 PM AT EASE 4:10:28 PM RECONVENE