SENATE BILL NO. 18 "An Act making appropriations, including capital appropriations and other appropriations; making appropriations to capitalize funds; and providing for an effective date." 9:11:13 AM Co-Chair Kelly MOVED to ADOPT the proposed committee substitute for SB 18, Work Draft 28-GS1798\O (Martin, 4/2/13). Co-Chair Meyer OBJECTED for discussion. SUZANNE ARMSTRONG, STAFF, SENATOR KEVIN MEYER, discussed the changes in the work draft. She stated that Section 1 contained FY 14 capital projects and grants. Section 1 included the FY 14 agency budget requests, grants to municipalities, grants to named recipients, and grants to unincorporated communities. She explained that Section 1 totaled $702.889 million in unrestricted general funds (UGF), $124.622 million in designated general funds (DGF), $55.180 in other state funds, and $923.431 in federal receipts. The total request in Section 1 was $1.8 billion. She announced that Sections 2 and 3 were fund source roll- ups, which detailed agency and fund source for the appropriations made in Section 1. Co-Chair Meyer queried the page number. Ms. Armstrong replied that Section 1 began on page 2. 9:14:12 AM Ms. Armstrong stated that Section 2 was the fund source roll-up, and Section 3 was the fund source roll-up for Section 1. She explained that Section 2 began on page 64, and Section 3 began on page 68. She looked at Section 4, which began on page 70, and stated that it was the supplemental capital appropriations for July 1, 2012 ending June 30, 2013. She stated that Section 4 totaled $137 million including $114 million of UGF, $22 million of other state funds, and approximately $1 million in federal receipts. She stated that the fund source roll-up for Section 4 was on page 72 and 73, which were Sections 5 and 6. Section 7 began on page 74, which were the supplemental operating appropriations for July 1, 2012 ending June 30, 2013. She stated that Section 7 was a reduction of $16.591 million in total funds; of which $14.955 million was UGF, $578,000 was DGF, $1.1 million was other state funds, and $64,800 was federal receipts. Sections 8 and 9 were the fund source roll-ups for Section 7. Section 8 began on page 80 and Section 9 began on page 82. She explained that Section 10 was the language section, which began on page 83. Section 10 included items from the FY 03 supplemental capital. The total for the supplemental capital language section was $59.5 million in total funds; with $57.5 in UGF and $2 million other state funds. He furthered that Section 10 also included FY 13 supplemental operating expenditures that totaled a reduction of $59.9 million in UGF. Section 10 also included the fund capitalization found under Section 20 on page 87 line 26. She stated that approximately $25 million would be applied to the Alaska Gasline Inducement Act (AGIA) reimbursement fund; $2 million into the Emerging Energy Technology fund; $3.4 million into the Disaster Relief Fund; $10 million into a Knik Arm Bridge and Toll Authority (KABATA) reserve fund; and $618,000 to the small municipal school fund, which was contingent on the passage of a bill that opened a criteria and renames the fund. Ms. Armstrong looked at Section 21, which was the fund transfer section that began on page 88, line 6. She stated that the NPRA impact grant program was established in Section 23, and listed the projects beginning on page 88. The section also included reappropriations that had been requested by the administration for state agencies, and reappropriations that were requested by legislators. She stated that Section 43 provided a lapse extension for the Alaska Arctic Policy Commission to June 30, 2014. She stated that Section 14 established the contingency language for appropriations that were contingent on passage of legislation. She explained that Sections 48 through 51 were the effective date clauses. 9:19:11 AM Co-Chair Meyer pointed out that the bill was a significantly smaller capital budget than what had been over recent years. He stressed that there was an attempt to maintain the guidelines to maintain the current assets, finish some of the phased projects, and look for various needed projects in various regions throughout the state. Senator Bishop thanked Ms. Armstrong for her work. Senator Olson asked what time the amendments should be submitted. Co-Chair Meyer replied that the amendments should be submitted the current day by 6:00 p.m. Co-Chair Meyer noted that the total capital budget was approximately $2 billion, and remarked that there was approximately $1 million reduced from the governor's proposed budget. He pointed out that the previous year's budget was $2.9 billion with a bond of approximately $450 million. Ms. Armstrong added that the committee substitute had $1.8 billion in total funds, with a reduction from the governor's proposed budget of $108 million. SB 18 was HEARD and HELD in committee for further consideration. 9:24:48 AM AT EASE 9:25:54 AM RECONVENED