HOUSE FINANCE COMMITTEE April 23, 1993 1:45 p.m. TAPE HFC 93-119, Side 2, #000 - end. TAPE HFC 93-120, Side 1, #000 - end. TAPE HFC 93-120, Side 2, #000 - end. TAPE HFC 93-121, Side 1, #000 - #225. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:45 p.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Representative Ulmer; Representative B. Davis; Representative Finkelstein; Representative Mackie; Representative Hudson; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget; Larry Jones, Director, Division of Administration, Department of Fish and Game; Dave Kellyhouse, Director, Division of Wildlife Conservation, Department of Fish and Game; Ron Lind, Director, Plans, Programs and Budget, Headquarters, Department of Transportation and Public Facilities; Arthur H. Snowden, II, Administrative Director, Alaska Court System; Keith Kelton, Director, Facility and Construction, Department of Environmental Conservation; Alison Elgee, Director of Budget, University of Alaska. SUMMARY INFORMATION HB 60 "An Act making appropriations for capital projects; and providing for an effective date." HB 60 was HELD in Committee. HOUSE BILL NO. 60 "An Act making appropriations for capital projects; and providing for an effective date." 1 AMENDMENTS Co-Chair MacLean provided members with a summary of the House proposed capital FY 94 spending plan (Attachment 1). She reviewed Attachment 1. She noted that the total capital FY 94 spending plan totals $492.7 million dollars. CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR provided members with a spreadsheet detailing the Governor's proposed amendments by department (Attachment 2). Ms. Frasca reviewed Attachment 2, Department of Administration: * Computerized Hiring forms System - $145.0 thousand dollars; * Procurement System Automation - $30.0 thousand dollars; * City and Borough of Juneau, Mount Roberts Marina - $3.0 million dollars; Ms. Frasca explained that the Governor supports the Mount Roberts Marina as an economic development activity. She clarified that the facility will be owned by the municipality. Representative Therriault noted that the municipality is matching the grant. Co-Chair MacLean MOVED to ADOPT the Governor's amendments for the Department of Administration. There being NO OBJECTION, it was so ordered. Ms. Frasca reviewed the Governor's amendments for the Department of Health and Social Services, Attachment 2: * Reallocate from the McLaughlin Youth Center - $100.0 thousand dollars to the Public Health Lab Replacement - $200./0 thousand dollars; * Eligibility Information System - reduce federal funds to $497.6 thousand dollars; * General Computers - increase general fund to $864.3 thousand dollar and decrease federal funds to $100.0 thousand dollars; * Alaska Psychiatric Institution (API) - increase general fund mental health funds to $1.0 million dollars for stop gap repairs; * API 2000 - Complete certificate of need. 2 JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES clarified, in response to a question by Co-Chair Larson, that the API replacement will be complete in 1997. She stated that the Department is aware of $2.0 million dollars in needed repairs. Co-Chair MacLean MOVED to ADOPT the Governor's amendments for the Department of Health and Social Services as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca reviewed the Governor's amendments for the Department of Commerce and Economic Development as contained in Attachment 2: * Component Renewal/Replacement, AEA facilities - $250.0 program receipt authority; * Reimbursable Authority - $100.0 thousand dollars in program receipts. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Commerce and Economic Development as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca discussed the Governor's amendment for the Department of Natural Resources, Attachment 2: * Reallocation - $100.0 thousand dollars from the Tanana Valley Forest Harvest Development to Forest Inventory. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Natural Resources as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca commented on the Governor's amendment for the Department of Fish and Game, Attachment 2: * Crystal Lake Hatchery - increase Fish and Game funds to $500.0 thousand dollars. LARRY JONES, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME explained that the Crystal Lake Hatchery is located in Petersburg. The funding will complete the recirculation system at the hatchery. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Fish and Game as contained in Attachment 2. Co-Chair MacLean OBJECTED. Representative Grussendorf 3 noted that the Crystal Lake Hatchery receives Salmon Treaty funds. Co-Chair MacLean WITHDREW her OBJECTION. There being NO OBJECTION, it was so ordered. Ms. Frasca reviewed the Governor's amendment for the Department of Public Safety, Attachment 2: * License Plates/Drivers Manuals - increase to $524.0 thousand dollars; * Aircraft Equipment - increase to $459.8 thousand dollars; * Fish and Wildlife Protection Enforcement Vessel Repairs - increase to $570.4 thousand dollars; * Statewide Law Enforcement Systems - decrease to $900.0 thousand dollars; * Alaska State Troopers Replacement Equipment - increase to $250.0 thousand dollars; * Fish and Wildlife Protection Bulk fuel Storage Tank Replacement - decrease to $132.8 thousand dollars; * Facilities Renewal and Replacement/Deferred Maintenance - increase to $800.0 thousand dollars. Ms. Frasca noted that the transfers result in a net zero. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Public Safety as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca discussed the Governor's amendment for the Department of Transportation and Public Facilities, Attachment 2: * General Fund Match for Federal-Aid Aviation - reduced to $5.2 million dollars; * Transportation and Public Facilities Energy Upgrade -decrease to $1.75 million dollars; * Alaska Marine Highway Overhaul - increase to $3.8 million dollars. Ms. Frasca noted that the transfers result in a net zero. RON LIND, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES explained 4 that $4.3 million dollars was spent on vessel maintenance in FY 93. The Department feels that $4.5 million dollars will be needed in FY 94. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Transportation and Public Facilities as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca commented on the Governor's amendment for the Department of Environmental Conservation, Attachment 2. She noted that there is a net zero reallocation of funds: * Reallocate $90.0 thousand dollars from Solid Waste Planning Grants to Laboratory Equipment and Acquisition. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Environmental Conservation as contained in Attachment 2. Representative Brown OBJECTED to the reduction of Solid Waste Planning Grants. She MOVED to AMEND the motion to DIVIDE the QUESTION. Representative Therriault OBJECTED. A roll call vote was taken on the motion to divide. IN FAVOR: Brown, Grussendorf, Hoffman, OPPOSED: Foster, Hanley, Parnell, Therriault, MacLean, Larson Representatives Navarre and Martin were not present for the vote. The MOTION FAILED (3-6). Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the Department of Environmental Conservation as contained in Attachment 2. There being NO OBJECTION, it was so ordered. Ms. Frasca reviewed the Governor's amendment for the University of Alaska, Attachment 2. She noted that the Governor is requesting $464.1 thousand in 470 Fund dollars for contaminated site clean-up. ALISON ELGEE, UNIVERSITY OF ALASKA explained, in response to a question by Representative Hoffman, that the bulk of the funds would be used for assessment. She noted that the ground water is contaminated with benzine near the water wells for the University of Alaska. Co-Chair MacLean MOVED to ADOPT the Governor's amendment for the University of Alaska as contained in Attachment 2. There being NO OBJECTION, it was so ordered. 5 Representative Brown provided members with AMENDMENT 2 (Attachment 3). She explained that the amendment would reallocate information systems funds within the agencies for a net zero. Funding would be included for new projects in the Department of Administration; Alaska Public Broadcasting Commission Satellite Interconnection Planning and Office of the Commissioner for reviews of telecommunication projects. She reviewed other agency projects as contained in Amendment 2. Some projects will be moved to the front section of the budget to encourage coordination of projects that overlap departments. She noted that intent language is included. Co-Chair MacLean asked that the Alaska Court System project be held open. Co-Chair MacLean noted her intention to increase funding for the Alaska Court System imaging project. Representative Brown agreed that the Alaska Court System project could be increased in the amendment. Representative Hoffman asked why the Department of Community and Regional Affairs' request is being reduced. Representative Brown replied that the project will replace a functioning system and can be done in a phased manner. Representative Brown MOVED to ADOPT AMENDMENT 2. Co-Chair MacLean MOVED to AMEND Amendment 2 to increase the Alaska Court System Imaging project to $207.5 thousand dollars. ARTHUR H. SNOWDEN, III, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM explained that the funding will allow the Court to keep files intact. Representative Parnell declared a potential conflict of interest and asked to abstain from voting. Co-Chair MacLean OBJECTED. There being NO OBJECTION, the amendment to Amendment 2 was adopted. Representative Hoffman MOVED to AMEND the motion, to increase the grant to the Department of Community and Regional Affairs for data processing equipment to $500.0 thousand dollars. Co-Chair MacLean OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Parnell, Larson, MacLean Representatives Hanley, Martin and Therriault were not present for the vote. The MOTION PASSED (5-3). 6 Representative Brown MOVED to ADOPT AMENDMENT 2 as amended. There being NO OBJECTION, it was so ordered. Amendment 3 was HELD by request of the sponsor Representative Parnell. Representative Grussendorf provided members with AMENDMENT 4 (Attachment 4). He explained that the amendment would appropriate $1.0 million dollars in University program receipts for the University of Alaska, Southeast, Sitka Campus. He explained that the program receipts will be the result of a University of Alaska property sale. There being NO OBJECTION, Amendment 4 was adopted. REPRESENTATIVE BILL HUDSON provided members with AMENDMENT 5 (Attachment 5). He explained that the City of Craig had paid for a terminal dolphin on the marine highway system due to insufficient state funds. The amendment would reimburse the City of Craig. REPRESENTATIVE JERRY MACKIE clarified that the appropriation will go the Alaska Marine Highway System to complete the final phase of the Hollis Terminal Dolphin. (Tape Change, HFC 93-120, Side 1) Representative Hudson noted that the City of Craig would not have received service on the Alaska Marine Highway without the dolphin. Representative Navarre MOVED to ADOPT AMENDMENT 5. There being NO OBJECTION, it was so ordered. Representative Hudson expressed concern that the Alaska Marine Highway winter maintenance will be short funded. Representative Grussendorf MOVED to ADOPT AMENDMENT 6 (Attachment 6). He explained that the amendment would match Corp of Engineers projects in Election District 99. Co- Chair MacLean asked if the Department of Transportation and Public Facilities could make the required match with a $500.0 thousand dollar reduction. Mr. Lind stated that the match could be made for the Sitka project. Co-Chair MacLean MOVED to AMEND Amendment 6, to insert "$2.0" and delete "$2.5" million dollars. There being NO OBJECTION, it was so ordered. Co-Chair MacLean restated the motion to adopt Amendment 6. There being NO OBJECTION, it was so ordered. REPRESENTATIVE BETTYE DAVIS provided members with AMENDMENT 7 7 (Attachment 7). She explained that the amendment would increase the appropriation from the earnings reserve of the Alaska Science and Technology Endowment to the BIDCO Fund from $1.5 to $3.0 million dollars. She asserted that the Alaska Science and Technology Foundation supports the amendment. Representative Martin expressed concern that the legislature is deciding how the Board will spend the Endowment funds. Representative Brown asserted that the Board supports the BIDCO appropriation. Co-Chair Larson expressed concern that the interest earnings from the Science and Technology Endowment has already been committed. Members discussed proposed appropriations from the earnings reserve. Representative Brown asked that Amendment 7 be HELD in Committee for further information. Amendment 7 was HELD in Committee. REPRESENTATIVE FRAN ULMER provided members with AMENDMENT 8 (Attachment 8). She explained that the amendment would appropriate $809.5 thousand dollars for the State of Alaska Museum's heating and ventilation system. Co-Chair MacLean clarified that the appropriation was deleted from the Governor's requested capital budget by the Subcommittee. Representative Grussendorf MOVED to ADOPT AMENDMENT 8. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Maclean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). REPRESENTATIVE JERRY MACKIE provided members with AMENDMENT 9 (Attachment 9). He explained that the amendment would appropriate $600.0 thousand dollars to the City of Kake for emergency water tank replacement. He observed that the water tank is leaking 59,000 thousand gallons of treated water a day. He pointed out that tank failure could destroy the state hatchery adjacent to the tank. The total project cost is $950.0 thousand dollars. He noted that there is $350.0 thousand dollars in federal funds available. He emphasized that the tank is the only source of drinking water for the community. KEITH KELTON, DIRECTOR, FACILITY AND CONSTRUCTION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained that the structural support of the tank is rusting. He stressed that the leak is getting bigger. He emphasized that the project would have received a high ranking if the Department had 8 been aware of the problem. Co-Chair Larson asked if disaster funds would be available. Ms. Frasca did not think that the problem had reached to a disaster level. Mr. Kelton noted the wisdom of fixing the problem before the community is out of water. He clarified that due to a previous grant the City of Kake would not be eligible for a 50 percent municipal grant. The City is too large to qualify for a Village Safe Water Grant. Representative Grussendorf MOVED to ADOPT AMENDMENT 9. Co- Chair Larson MOVED to AMEND Amendment 9, to delete "$600.0" and insert "$500.0" thousand dollars. There being NO OBJECTION, it was so ordered. Representative Therriault OBJECTED to the motion to adopt Amendment 9 as amended. A roll call vote was taken on the motion to adopt Amendment 9 as amended. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, MacLean, Larson OPPOSED: Hanley, Martin, Parnell, Therriault The MOTION PASSED (7-4). Representative Hudson provided members with AMENDMENT 10 (Attachment 10). He explained that the Amendment would appropriate $50.0 thousand dollars for a study to review the viability of acquiring the Snettisham Hydroelectric Project. (Tape Change, HFC 93-120, Side 2) Representative Hudson stressed that a national energy package is being developed. He stated that state acquisition has not been a prior option. Representative Ulmer spoke in support of the amendment. Representative Foster MOVED to ADOPT AMENDMENT 10. Representative Martin OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Co-Chair Larson was not present for the vote. The MOTION FAILED (5-5). Ms. Frasca provided members with AMENDMENT 11: "Add $1.0 million dollars, Fish and Game Funds, Habitat Improvement/Big Game Population Enhancement. DAVE KELLYHOUSE, DIRECTOR, DIVISION OF WILDLIFE CONSERVATION, DEPARTMENT OF FISH AND GAME explained that the 9 amendment is needed to address problems in the Fairbanks and Upper Tanana River area. There have been declines in moose and caribou populations in these areas. He emphasized that prompt action is needed. Representative Hoffman MOVED to ADOPT AMENDMENT 11. Co- Chair MacLean OBJECTED. Representative Grussendorf asked if wolf control was included. Mr. Kellyhouse stated that one- third of the expenditure is for wolf control. He asserted that wolves will benefit from the appropriation in the long term. A roll call vote was taken on the motion to adopt Amendment 11. IN FAVOR: Therriault, Hoffman OPPOSED: Brown, Grussendorf, Navarre, Foster, Hanley, Martin, Parnell, MacLean Co-Chair Larson was not present for the vote. The MOTION FAILED (2-8). Representative Brown provided members with AMENDMENT 12 (Attachment 11). She explained that $150.0 thousand dollars will be added to Prudhoe Bay Reservoir Models. She spoke in support of Amendment 12. Representative Brown MOVED to ADOPT AMENDMENT 12. Representative Martin OBJECTED. He felt the item should be contained in the Department's operating budget. Representative Therriault expressed his desire to see the appropriation transferred from another item in order to result in a net zero. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell, Larson OPPOSED: Therriault, Hanley, Martin, MacLean Representative Foster was not present for the vote. The MOTION PASSED (6-4). Representative Finkelstein provided members with AMENDMENT 13 (Attachment 12). Co-Chair MacLean expressed objection to the amendment. She noted that the amendment would reduce funding for the Copper River Highway. Representative Finkelstein asserted that the Governor has pursued the project without federal authorization. He noted that there is no environmental impact statement for the project. He maintained that residents of the area are not in agreement concerning the project. Representative Brown MOVED to ADOPT AMENDMENT 13. Representative Grussendorf OBJECTED to the adoption of AMENDMENT 13. A roll call vote was taken on the 10 motion. IN FAVOR: Brown, Hoffman OPPOSED: Grussendorf, Navarre, Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (2-9). Amendment 14 was WITHDRAWN. Representative Martin provided members with AMENDMENT 15: "It is the intent of the legislature that the money contained in this appropriation be available for all state facilities, including the University of Alaska." Representative Martin MOVED to ADOPT AMENDMENT 15. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED to ADOPT AMENDMENT 16 (Attachment 13). He explained that the amendment addresses Older Alaskans Commission grants recommended by the Mental Health Trust Board. He clarified that the grants were inadvertently deleted from the Department of Administration's budget. There being NO OBJECTION, it was so ordered. Representative Parnell MOVED to ADOPT AMENDMENT 3 on behalf of Representative Barnes (Attachment 14). He explained that the amendment would delete $1.75 million dollars for a third fence around Hiland Mountain Correctional Center. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED to ADOPT AMENDMENT 17 (Attachment 15). He explained that the amendment would appropriate $400.0 thousand dollars to the Department of Revenue to replenish the contingency funds expended as a result of construction cost overruns on the state courthouse located in the City of Kenai. There being NO OBJECTION, it was so ordered. Representative Hanley provided members with AMENDMENT 18 (Attachment 16). He stated that the intent of the amendment is to delete the Instrument Landing Site Preparation project. He noted that there is concern by local residents concerning the project. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED to ADOPT AMENDMENT 19 (Attachment 17). He explained that the amendment contains legislative intent encouraging the Mental Health Trust Board to work with the Department of Health and Social Services to submit capital improvement projects. There being NO OBJECTION, it was so ordered. 11 Amendment 20 was WITHDRAWN. Representative Therriault MOVED to ADOPT AMENDMENT 21 (Attachment 18). He explained that the amendment addresses the remaining 470 funds being used for capital project cleanup of contaminated sites. He reviewed Amendment 21. Members discussed projects contained in Amendment 21. (Tape Change, HFC 93-121, Side 1) Representative Brown spoke in opposition to Amendment 21. Representative Therriault asserted that projects deleted by Amendment 21 should be funded through general fund dollars. Representative Navarre maintained that the 470 Fund was created to address projects such as those deleted by Amendment 21. Representative Foster OBJECTED to the motion to adopt Amendment 21. A roll call vote was taken on the motion to adopt Amendment 21. IN FAVOR: Therriault, Hanley, Larson, MacLean OPPOSED: Brown, Grussendorf, Hoffman, Foster, Martin, Parnell The MOTION FAILED (4-6). HB 60 was was HELD in Committee. ADJOURNMENT The meeting adjourned at 4:22 p.m. 12