HOUSE FINANCE COMMITTEE APRIL 26, 1995 8:40 A.M. TAPE HFC 95 - 98, Side 2, #000 - end. TAPE HFC 95 - 99, Side 1, #000 - #486. CALL TO ORDER Co-Chair Richard Foster called the House Finance Committee meeting to order at 8:40 A.M. PRESENT Co-Chair Hanley Representative Kohring Co-Chair Foster Representative Martin Representative Mulder Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Kelly ALSO PRESENT Nancy Slagle, Director, Division of Budget Review, Office of Management and Budget; Karen Crane, Director, Libraries, Archives & Museums, Department of Education; Joe McCormick, Executive Director, Postsecondary Education Commission, Department of Education; Janet Kowalski, Chief of Planning, Office of the Commissioner, Department of Transportation and Public Facilities; Nico Bus, Director, Division of Administrative Services, Department of Natural Resources; Kevin Brooks, Director, Division of Administrative Services, Department of Fish and Game. SUMMARY HB 268 An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and providing for an effective date. HB 268 was HELD in Committee for further consideration. HOUSE BILL 268 "An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and 1 providing for an effective date." DEPARTMENT OF REVENUE NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, referenced the Permanent Fund Dividend request in the amount of $117 thousand dollars for the integrated voice response system. The request would provide for the software/hardware programming needs for personal computers currently used by staff in that office. She added that it was anticipated that the cost of the project would be recovered within a year's time. DEPARTMENT OF EDUCATION Ms. Slagle referenced the capital request for Mt. Edgecumbe Boarding School renovations and equipment in the amount of $214.9 thousand dollars. The funding would address the critical health and safety concerns of that school including bath and shower facilities. Ms. Slagle continued, capital budget request for the statewide library electronic doorway (SLED) access in the amount of $383 thousand dollars. The funding would provide public access to information in government. Ms. Slagle noted that SLED is a statewide network which connects libraries and individuals to libraries, government and local communities and internet information resources. Representative Brown questioned amount to be used for the hardware/software upgrades. KAREN CRANE, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS, DEPARTMENT OF EDUCATION, responded that $40 thousand would be used for the SLED component. Ms. Slagle referenced the capital request for public library construction grants in the amount of $140 thousand dollars. The amount would be federal funds. Annual grants are made available to the State to disburse libraries. Local libraries must match at a 45% federal and 55% local level. She added that there are no State match dollars involved with the project. Ms. Slagle noted that the next capital request would cover expenses for Postsecondary Education Commission loan servicing system enhancements in the amount of $1.4 million dollars. The request would provide the capital needed to insure that proper servicing is accomplished on student loans. Representative Brown asked if the request would result in a 2 replacement of an expensive system placed in service several years ago which failed. JOE MCCORMICK, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION COMMISSION, DEPARTMENT OF EDUCATION, explained that a series of poor judgments had been made in replacing the old system. The result did not pan out and the system did not work better. From 1991 through 1993 time period, students were upset with the "new" system. Since that time, an analysis has taken place as directed by the Legislature. The current request is a result of that analysis. Representative Brown asked if the system was on the mainframe. Mr. McCormick noted that it was located within the Department of Administration's mainframe. Representative Brown inquired if there were other options available to the Department of Education. Mr. McCormick noted that four options currently exist: 1. Fix the current system; 2. Time share; 3. Out-sourcing-contracting with a student loan servicing in the lower 48 states; and 4. Scrap the current system and redesign a piece of software to install in the computer. Discussion followed regarding the utilization and competing with others for use time (CPU time) and cost effectiveness in making the best use of the current machinery. Representative Brown voiced her opposition to a new development on the mainframe. Ms. Slagle explained that the following six projects are those taken off of the Department of Education's major maintenance priority listing. 1. Golovin High School renovation - $1.87 million dollars; 2. White Mountain High School renovation - $2.748 million dollars; 3. Elim High School renovation - $2.571 million dollars; 4. North Slope Borough District-wide fuel tank upgrade - $1 million dollars; 5. Teller High School renovation - $3.675 million dollars; 6. Klawock Elementary, Middle, High School code upgrade - $1.594 million dollars. Representative Martin noted his concern with the size of the schools and the number of students served versus the size of the request. He recommended building a "regional" high 3 school rather than continuing the small facilities. Ms. Slagle clarified that the request was not for new schools, rather maintenance to existing facilities and deteriorating buildings. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Ms. Slagle referenced the Economic Development Matching Grant Program capital project request in the amount of $400 thousand dollars. She stated that this was an annual request for the Department in order to provide State funds to nonprofit corporations, cities, boroughs and other eligible applicants to assist in matching economic development project grant from the federal and other non State agencies or private sector funds. The following capital budget request of the Department would be for the Alaska Small Business Assistance and Development Program in the amount of $436 thousand dollars. She noted that this was an annual request for two projects; $253 thousand dollars toward the University of Alaska's Small Business Development Center with the remaining portion of $183 thousand dollars to be used for the Procurement and Technical Assistance Center. Ms. Slagle concluded, the final request of the Department was for a data processing system enhancement, Phase II, in the amount of $350 thousand dollars program receipts. She stated that this was the second and final stage of a multi- year project to convert the Wang mini computer system and acquire a new software/hardware system to complete the conversion. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Ms. Slagle spoke to the Department's capital budget request for deferred statewide maintenance in the amount of $500 thousand dollars. She reminded the Committee that the request was a small portion of the deferred maintenance needs for that Department. The allocation would fund roof repairs in Anchorage, Juneau and the Kenai armory. Ms. Slagle continued, the Department's capital request for the Bethel Army aviation operating facility in the amount of $6.88 million dollars. She pointed out that $500 thousand would be general fund dollars, whereas, $6.38 million would be federal fund dollars for the design and construction of a new hangar in Bethel. DEPARTMENT OF NATURAL RESOURCES Ms. Slagle stated that the first capital request for the 4 Department would be for the pad contaminated site assessment and remediation in the amount of $300 thousand dollars. Those funds would be used to provide clean-up of the Prudoe Bay oil built complex site on Dead Horse lease tract #54. The next request would be used for the forward Alaska pad contaminated site assessment and remediation and would be in the amount of $250 thousand dollars. She summarized that this would be the same type of project as the first requested by the Department. Legal action of the lessee has been initiated to clean up the site. Ms. Slagle continued, the Mental Health Trust lands reconstitution implementation project request in the amount of $538 thousand dollars. The request would continue the title research in order to establish the convertability of the parcels and then write the legal descriptions. The Department's next capital request project would be for the reforestation site preparation and replanting in the amount of $100 thousand dollars. Ms. Slagle continued, the capital project request for the land status geographic information system project, Phase V, in the amount of $300 thousand dollars would be used to fund the project to automate the State's graphic land record and the status plat. Ms. Slagle continued, the capital project request for real estate recordings - preservation and replacement in the amount of $125 thousand dollars originating from program receipt funds related to the recorder's office. The funds would be used to convert land transfer records or documentation which are in fragile condition to maintain a complete record of them. The following project request for the Department would be used for oil and gas basin analysis and assessment programs in the amount of $100 thousand dollars. The project would provide continuing funds for an analysis report. Representative Brown commented that the backup description of the projects were confusing. She asked for further information. NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES, explained that the summary information was incorrect; it had been mixed-up with the royal accounting write-up description. Ms. Slagle proceeded, the Department's next capital budget request for the forest health initiative would be in the amount of $325 thousand dollars. She added that $225 5 thousand dollars would be federal funds, and $100 thousand dollars would be general fund monies. The allocation would fund a two year program to survey spruce bark beetle infested areas. Mr. Bus commented that the request would cover a site specific area, the Tanana Valley. The studies previously done occurred on the Kenai Peninsula. Representative Therriault asked if the $100 thousand dollar general fund would be a required match. Mr. Bus replied that this was the minimum match in order to qualify for the $225 federal allocation. Ms. Slagle continued, the forest inventory and mapping project request in the amount $100 thousand dollars would fund Phase III of the Tanana Valley forest inventory by ground level sampling of a targeted 115 level plots. She continued, the stream gaging network-collection of stream flow data request in the amount of $300 thousand dollars. The allocation would be the first of a six year project to go forward, placing stream gauges in high priority locations around the State. Mr. Bus commented that the request would not be a required federal match. Ms. Slagle continued with the Department's capital project request for the national historic preservation fund in the amount of $640 thousand dollars. She stated that the allocation would be federally funded for the Division of Parks and would be administered for planning and surveying of archeological sites. Representative Brown asked where the State money match would originate from. Mr. Bus responded that those funds would come from the operating budget. Ms. Slagle addressed the next capital budget request for land and water conservation fund federal grants in the amount of $500 thousand dollars. The allocation of grants would provide assistance on a 50/50 matching grant basis to State and local communities for planning acquisition and outdoor recreational facilities. The next capital budget request for the Department would be for the oil and gas royalty accounting-software/mainframe interface in the amount of $150 thousand dollars. The project would assist in more efficient collection and auditing of oil and gas royalties. The geophysical/geological mineral inventory capital budget request in the amount of $100 thousand dollars would provide funds for the fifth year of an eight year project to identify and delineate mineral zones on Alaska State lands 6 which have major economic value. Ms. Slagle continued, the oil and gas lease sales best interest finding allocation request in the amount of $100 thousand dollars would allow the Division to contract with a private consultant to write major portions of the required best interest findings of areas subject to exploration licensing. Representative Brown voiced concern that private consultants would be writing the "best-interest" findings for the Department. Mr. Bus explained that the Department would manage the project, although would consult the best-interest findings. He pointed out that it would be necessary that some of the work be contracted out as a result of the downsizing of the Department's operating budget. Representative Brown understood that money had been added to the budget to complete that project. Mr. Bus stated at the this time, no fiscal note had been passed. (Tape Change, HFC 95-99, Side 1). Ms. Slagle concluded with the final capital budget request for the Department for repair and expansion of park recreation and tourism facilities in the amount of $200 thousand dollars. The allocation would repair a select few State park facilities which have deteriorated from years of lack of maintenance. DEPARTMENT OF FISH AND GAME Ms. Slagle explained the capital budget request for the Department of Fish and Game. The first request would be in the amount of $4 million dollars in order to cover expenditures for a sport fish and wildlife conservation facility in Fairbanks. She noted that half of the request would be Fish and Game funds and the other half would be federal receipts. The allocation would provide for new construction and renovation of a ten thousand square foot addition to an existing building for housing Department staff and would provide offices for those employees. The replace and enhance salmon escapement sonar systems capital budget request would be in the amount of $500 thousand dollars and would be used to replace sonar equipment used to count salmon escapement in silt laden rivers. The Department's capital budget request for the Rabbit Creek rifle range improvements would be in the amount of $475 thousand dollars, of which $356 thousand dollars would be federal funds and $119 thousand dollars would be from fish 7 and game funds. The allocation would be used for two projects, paving a section of the parking lot and the construction of a single story classroom to accommodate forty students. The statewide facility maintenance and repair projects capital budget request in the amount of $806 thousand dollars would be used for maintenance on offices, bunkhouses, warehouses, cabins and other structures used by the Department. The Department currently has facilities in forty locations. Ms. Slagle continued, the Snettisham Hatchery transfer request in the amount of $400 thousand dollars would allow for the transfer to a local regional nonprofit aquaculture association and would provide operating support for the first year of operation. The Klawock Fish Hatchery repairs and renovation request in the amount of $300 thousand dollars would provide for repair and renovation projects needed to safely operate the hatchery and meet OSHA standards. Representative Therriault understood that the hatchery had been transferred over to private industry. Ms. Slagle noted that information was correct. The following request would be for the fisheries resource assessment vessel maintenance in the amount of $194 thousand dollars and would be used for general maintenance for vessels used in fishery assessment programs. Ms. Slagle continued, the Alaska Peninsula chum salmon stock assessment capital budget request in the amount of $175 thousand dollars would be used for the third year of data gathering to provide information on the Western gulf of Alaska fishery to help identify and quantify Alaska chum salmon stocks. The next capital budget request would be used to identify salmon stocks at risk in the Endangered Species Act listing in the amount of $200 thousand dollars. The allocation would provide identification of salmon stock which may be at risk of being listed as threatened or endangered under the Endangered Species Act so that the stocks could be protected and rehabilitated. KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME, explained that several species of salmon in Alaska are being contemplated for a listing as either endangered or threatened because of their migratory natures. He reminded Committee members that this would 8 affect the fisheries in Southeast Alaska. Ms. Slagle continued, the following capital budget request of the Department would be used to assert and protect the State's right to manage and utilize resources and would be in the amount of $300 thousand dollars. The allocation would continue the coordination efforts to protect the State's wildlife and fisheries resources. The funding would specifically support the Citizen's Advisory Committee dealing with the Endangered Species Act. Mr. Brooks responded to Representative Martin's concern of continued funding of citizens lobbying groups. He commented that a portion of the funding would provide for the Citizen's Advisory Committee stressing the effectiveness of each group. He added that because of the diversity of the fisheries it is a difficult job and that the citizens affected by those fisheries are brought together through the advisory groups. Representative Martin stated that those concerns should be addressed by the Department of Law. Discussion followed among Committee members regarding the issue. Ms. Slagle continued with the Department's capital budget request for the Bering Sea crab survey equipment purchase in the amount of $150 thousand dollars. The equipment is needed to detect crab available for harvest in the Bering Sea area. She added that better data is needed to manage the fishery. Representative Navarre questioned how the survey was performed. Mr. Brooks explained that the current survey was done by the National Marine Fisheries Service through a random count. He agreed a more systematic plan needs to be in place in order to provide better management. Ms. Slagle continued, the Department's capital budget request for the Kenai River salmon habitat protection and restoration in the amount of $850 thousand dollars federal funds. She pointed out that the Kenai River was the State's premier king salmon fishing river. Representative Mulder understood that $1 million dollars had been allocated on the federal level. Mr. Brooks agreed, stating that the ground work had been established in the FY95 budget and that $150 thousand dollars had been spent to initiate that project. Representative Mulder voice concern that the money might have been used on other projects or studies. He asked for further information regarding the $150 thousand dollars already expended. 9 Representative Therriault asked if receipt authority had been allocated through the FY95 budget. Mr. Brooks stated that there had been excess authority within the special projects component. Ms. Slagle continued, the last capital budget request for the Department would be for public access development in the amount of $1.6 million dollars. The allocation would consist of $1.2 million dollars federal receipts and $400 thousand dollars general funds to be used to construct boating access facilities statewide. DEPARTMENT OF PUBLIC SAFETY Ms. Slagle addressed the Department of Public Safety's capital budget requests. The first project would be the fish and wildlife protection aircraft equipment/overhaul/repairs request in the amount of $500 thousand dollars. The allocation would be used to replace worn out or obsolete equipment and for overhauls and repairs for the Department's airplanes and landing gear. The following capital project would be for the fish and wildlife protection vessel repair/overhaul/equipment request in the amount of $500 thousand dollars. Ms. Slagle continued, the motor vehicles license plates/manuals/equipment capital budget request in the amount of $400 thousand dollars for forty-one different types of license plates, drivers manuals and for data processing equipment at counters. The next component request would be for trooper replacement equipment in the amount of $250 thousand dollars to be used to replace traffic radar. Ms. Slagle continued, the Council on Domestic Violence/Sexual Assault computer information system capital project request in the amount of $50 thousand dollars to be used to improve the access to domestic violence and sexual assault information by assessing data processing needs, redesigning the forms and software for demographic data collected from twenty-one programs. The following request would be for the Civil Air Patrol- Merril Field roof repair request in the amount of $41.6 thousand dollars. She pointed out that the request had been made in the FY95 Supplemental Request and that it had not been funded so it was brought forward in the current capital budget request. Ms. Slagle continued with the North Slope Borough jail- 10 improve emergency access component in the amount of $45 thousand dollars. She added, that the request had also been included in the FY95 Supplemental Budget and that it had not been funded. The allocation would install electronic locks in the North Slope Borough jail in order to improve the emergency exists in case of fires. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative Martin recommended cleaning up all old project records existing since 1977 which continue to have money remaining in the accounts. He surmised that those monies would free up $9 million dollars to the State. JANET KOWALSKI, CHIEF OF PLANNING, OFFICE OF THE COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated that there are two issues on "back" projects; the first are those projects in which there exists remaining general fund match. Each year, in collaboration with OMB, a report is provided on the CP3's monies which are remaining and requesting a portion of those funds be reallocated. The Department considers that they do have a good handle on the availability of funds previously used and she emphasized that the Department does not have a pot of general fund money "hanging" out. She agreed that projects must be completed in a timely manner in order that the remaining funds be available for future projects. Ms. Kowalski added, another issue is the projects which the Department currently has as outstanding with the legislative authority to spend money. Representative Martin stressed that the Legislature must provide the authority for projects undertaken by the Department. Representative Brown asked if everything in the Statewide Transportation Improvement Program (STIP) program would be authorized with the passage of the request. Ms. Kowalski noted that FY97 projects had not been included in the requested amounts. Representative Mulder questioned what percentage of the DOTPF budget would be allocated toward the Anchorage area. Ms. Kowalski advised that approximately $20 million dollars would be allocated for that area. HB 268 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:50 A.M. HOUSE FINANCE COMMITTEE 11 APRIL 26, 1995 8:40 A.M. TAPE HFC 95 - 98, Side 2, #000 - end. TAPE HFC 95 - 99, Side 1, #000 - #486. CALL TO ORDER Co-Chair Richard Foster called the House Finance Committee meeting to order at 8:40 A.M. PRESENT Co-Chair Hanley Representative Kohring Co-Chair Foster Representative Martin Representative Mulder Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Kelly ALSO PRESENT Nancy Slagle, Director, Division of Budget Review, Office of Management and Budget; Karen Crane, Director, Libraries, Archives & Museums, Department of Education; Joe McCormick, Executive Director, Postsecondary Education Commission, Department of Education; Janet Kowalski, Chief of Planning, Office of the Commissioner, Department of Transportation and Public Facilities; Nico Bus, Director, Division of Administrative Services, Department of Natural Resources; Kevin Brooks, Director, Division of Administrative Services, Department of Fish and Game. SUMMARY HB 268 An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and providing for an effective date. HB 268 was HELD in Committee for further consideration. HOUSE BILL 268 "An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and providing for an effective date." DEPARTMENT OF REVENUE 12 NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, referenced the Permanent Fund Dividend request in the amount of $117 thousand dollars for the integrated voice response system. The request would provide for the software/hardware programming needs for personal computers currently used by staff in that office. She added that it was anticipated that the cost of the project would be recovered within a year's time. DEPARTMENT OF EDUCATION Ms. Slagle referenced the capital request for Mt. Edgecumbe Boarding School renovations and equipment in the amount of $214.9 thousand dollars. The funding would address the critical health and safety concerns of that school including bath and shower facilities. Ms. Slagle continued, capital budget request for the statewide library electronic doorway (SLED) access in the amount of $383 thousand dollars. The funding would provide public access to information in government. Ms. Slagle noted that SLED is a statewide network which connects libraries and individuals to libraries, government and local communities and internet information resources. Representative Brown questioned amount to be used for the hardware/software upgrades. KAREN CRANE, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS, DEPARTMENT OF EDUCATION, responded that $40 thousand would be used for the SLED component. Ms. Slagle referenced the capital request for public library construction grants in the amount of $140 thousand dollars. The amount would be federal funds. Annual grants are made available to the State to disburse libraries. Local libraries must match at a 45% federal and 55% local level. She added that there are no State match dollars involved with the project. Ms. Slagle noted that the next capital request would cover expenses for Postsecondary Education Commission loan servicing system enhancements in the amount of $1.4 million dollars. The request would provide the capital needed to insure that proper servicing is accomplished on student loans. Representative Brown asked if the request would result in a replacement of an expensive system placed in service several years ago which failed. 13 JOE MCCORMICK, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION COMMISSION, DEPARTMENT OF EDUCATION, explained that a series of poor judgments had been made in replacing the old system. The result did not pan out and the system did not work better. From 1991 through 1993 time period, students were upset with the "new" system. Since that time, an analysis has taken place as directed by the Legislature. The current request is a result of that analysis. Representative Brown asked if the system was on the mainframe. Mr. McCormick noted that it was located within the Department of Administration's mainframe. Representative Brown inquired if there were other options available to the Department of Education. Mr. McCormick noted that four options currently exist: 1. Fix the current system; 2. Time share; 3. Out-sourcing-contracting with a student loan servicing in the lower 48 states; and 4. Scrap the current system and redesign a piece of software to install in the computer. Discussion followed regarding the utilization and competing with others for use time (CPU time) and cost effectiveness in making the best use of the current machinery. Representative Brown voiced her opposition to a new development on the mainframe. Ms. Slagle explained that the following six projects are those taken off of the Department of Education's major maintenance priority listing. 1. Golovin High School renovation - $1.87 million dollars; 2. White Mountain High School renovation - $2.748 million dollars; 3. Elim High School renovation - $2.571 million dollars; 4. North Slope Borough District-wide fuel tank upgrade - $1 million dollars; 5. Teller High School renovation - $3.675 million dollars; 6. Klawock Elementary, Middle, High School code upgrade - $1.594 million dollars. Representative Martin noted his concern with the size of the schools and the number of students served versus the size of the request. He recommended building a "regional" high school rather than continuing the small facilities. Ms. Slagle clarified that the request was not for new schools, rather maintenance to existing facilities and deteriorating 14 buildings. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Ms. Slagle referenced the Economic Development Matching Grant Program capital project request in the amount of $400 thousand dollars. She stated that this was an annual request for the Department in order to provide State funds to nonprofit corporations, cities, boroughs and other eligible applicants to assist in matching economic development project grant from the federal and other non State agencies or private sector funds. The following capital budget request of the Department would be for the Alaska Small Business Assistance and Development Program in the amount of $436 thousand dollars. She noted that this was an annual request for two projects; $253 thousand dollars toward the University of Alaska's Small Business Development Center with the remaining portion of $183 thousand dollars to be used for the Procurement and Technical Assistance Center. Ms. Slagle concluded, the final request of the Department was for a data processing system enhancement, Phase II, in the amount of $350 thousand dollars program receipts. She stated that this was the second and final stage of a multi- year project to convert the Wang mini computer system and acquire a new software/hardware system to complete the conversion. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Ms. Slagle spoke to the Department's capital budget request for deferred statewide maintenance in the amount of $500 thousand dollars. She reminded the Committee that the request was a small portion of the deferred maintenance needs for that Department. The allocation would fund roof repairs in Anchorage, Juneau and the Kenai armory. Ms. Slagle continued, the Department's capital request for the Bethel Army aviation operating facility in the amount of $6.88 million dollars. She pointed out that $500 thousand would be general fund dollars, whereas, $6.38 million would be federal fund dollars for the design and construction of a new hangar in Bethel. DEPARTMENT OF NATURAL RESOURCES Ms. Slagle stated that the first capital request for the Department would be for the pad contaminated site assessment and remediation in the amount of $300 thousand dollars. Those funds would be used to provide clean-up of the Prudoe 15 Bay oil built complex site on Dead Horse lease tract #54. The next request would be used for the forward Alaska pad contaminated site assessment and remediation and would be in the amount of $250 thousand dollars. She summarized that this would be the same type of project as the first requested by the Department. Legal action of the lessee has been initiated to clean up the site. Ms. Slagle continued, the Mental Health Trust lands reconstitution implementation project request in the amount of $538 thousand dollars. The request would continue the title research in order to establish the convertability of the parcels and then write the legal descriptions. The Department's next capital request project would be for the reforestation site preparation and replanting in the amount of $100 thousand dollars. Ms. Slagle continued, the capital project request for the land status geographic information system project, Phase V, in the amount of $300 thousand dollars would be used to fund the project to automate the State's graphic land record and the status plat. Ms. Slagle continued, the capital project request for real estate recordings - preservation and replacement in the amount of $125 thousand dollars originating from program receipt funds related to the recorder's office. The funds would be used to convert land transfer records or documentation which are in fragile condition to maintain a complete record of them. The following project request for the Department would be used for oil and gas basin analysis and assessment programs in the amount of $100 thousand dollars. The project would provide continuing funds for an analysis report. Representative Brown commented that the backup description of the projects were confusing. She asked for further information. NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES, explained that the summary information was incorrect; it had been mixed-up with the royal accounting write-up description. Ms. Slagle proceeded, the Department's next capital budget request for the forest health initiative would be in the amount of $325 thousand dollars. She added that $225 thousand dollars would be federal funds, and $100 thousand dollars would be general fund monies. The allocation would fund a two year program to survey spruce bark beetle 16 infested areas. Mr. Bus commented that the request would cover a site specific area, the Tanana Valley. The studies previously done occurred on the Kenai Peninsula. Representative Therriault asked if the $100 thousand dollar general fund would be a required match. Mr. Bus replied that this was the minimum match in order to qualify for the $225 federal allocation. Ms. Slagle continued, the forest inventory and mapping project request in the amount $100 thousand dollars would fund Phase III of the Tanana Valley forest inventory by ground level sampling of a targeted 115 level plots. She continued, the stream gaging network-collection of stream flow data request in the amount of $300 thousand dollars. The allocation would be the first of a six year project to go forward, placing stream gauges in high priority locations around the State. Mr. Bus commented that the request would not be a required federal match. Ms. Slagle continued with the Department's capital project request for the national historic preservation fund in the amount of $640 thousand dollars. She stated that the allocation would be federally funded for the Division of Parks and would be administered for planning and surveying of archeological sites. Representative Brown asked where the State money match would originate from. Mr. Bus responded that those funds would come from the operating budget. Ms. Slagle addressed the next capital budget request for land and water conservation fund federal grants in the amount of $500 thousand dollars. The allocation of grants would provide assistance on a 50/50 matching grant basis to State and local communities for planning acquisition and outdoor recreational facilities. The next capital budget request for the Department would be for the oil and gas royalty accounting-software/mainframe interface in the amount of $150 thousand dollars. The project would assist in more efficient collection and auditing of oil and gas royalties. The geophysical/geological mineral inventory capital budget request in the amount of $100 thousand dollars would provide funds for the fifth year of an eight year project to identify and delineate mineral zones on Alaska State lands which have major economic value. Ms. Slagle continued, the oil and gas lease sales best 17 interest finding allocation request in the amount of $100 thousand dollars would allow the Division to contract with a private consultant to write major portions of the required best interest findings of areas subject to exploration licensing. Representative Brown voiced concern that private consultants would be writing the "best-interest" findings for the Department. Mr. Bus explained that the Department would manage the project, although would consult the best-interest findings. He pointed out that it would be necessary that some of the work be contracted out as a result of the downsizing of the Department's operating budget. Representative Brown understood that money had been added to the budget to complete that project. Mr. Bus stated at the this time, no fiscal note had been passed. (Tape Change, HFC 95-99, Side 1). Ms. Slagle concluded with the final capital budget request for the Department for repair and expansion of park recreation and tourism facilities in the amount of $200 thousand dollars. The allocation would repair a select few State park facilities which have deteriorated from years of lack of maintenance. DEPARTMENT OF FISH AND GAME Ms. Slagle explained the capital budget request for the Department of Fish and Game. The first request would be in the amount of $4 million dollars in order to cover expenditures for a sport fish and wildlife conservation facility in Fairbanks. She noted that half of the request would be Fish and Game funds and the other half would be federal receipts. The allocation would provide for new construction and renovation of a ten thousand square foot addition to an existing building for housing Department staff and would provide offices for those employees. The replace and enhance salmon escapement sonar systems capital budget request would be in the amount of $500 thousand dollars and would be used to replace sonar equipment used to count salmon escapement in silt laden rivers. The Department's capital budget request for the Rabbit Creek rifle range improvements would be in the amount of $475 thousand dollars, of which $356 thousand dollars would be federal funds and $119 thousand dollars would be from fish and game funds. The allocation would be used for two projects, paving a section of the parking lot and the construction of a single story classroom to accommodate 18 forty students. The statewide facility maintenance and repair projects capital budget request in the amount of $806 thousand dollars would be used for maintenance on offices, bunkhouses, warehouses, cabins and other structures used by the Department. The Department currently has facilities in forty locations. Ms. Slagle continued, the Snettisham Hatchery transfer request in the amount of $400 thousand dollars would allow for the transfer to a local regional nonprofit aquaculture association and would provide operating support for the first year of operation. The Klawock Fish Hatchery repairs and renovation request in the amount of $300 thousand dollars would provide for repair and renovation projects needed to safely operate the hatchery and meet OSHA standards. Representative Therriault understood that the hatchery had been transferred over to private industry. Ms. Slagle noted that information was correct. The following request would be for the fisheries resource assessment vessel maintenance in the amount of $194 thousand dollars and would be used for general maintenance for vessels used in fishery assessment programs. Ms. Slagle continued, the Alaska Peninsula chum salmon stock assessment capital budget request in the amount of $175 thousand dollars would be used for the third year of data gathering to provide information on the Western gulf of Alaska fishery to help identify and quantify Alaska chum salmon stocks. The next capital budget request would be used to identify salmon stocks at risk in the Endangered Species Act listing in the amount of $200 thousand dollars. The allocation would provide identification of salmon stock which may be at risk of being listed as threatened or endangered under the Endangered Species Act so that the stocks could be protected and rehabilitated. KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME, explained that several species of salmon in Alaska are being contemplated for a listing as either endangered or threatened because of their migratory natures. He reminded Committee members that this would affect the fisheries in Southeast Alaska. Ms. Slagle continued, the following capital budget request 19 of the Department would be used to assert and protect the State's right to manage and utilize resources and would be in the amount of $300 thousand dollars. The allocation would continue the coordination efforts to protect the State's wildlife and fisheries resources. The funding would specifically support the Citizen's Advisory Committee dealing with the Endangered Species Act. Mr. Brooks responded to Representative Martin's concern of continued funding of citizens lobbying groups. He commented that a portion of the funding would provide for the Citizen's Advisory Committee stressing the effectiveness of each group. He added that because of the diversity of the fisheries it is a difficult job and that the citizens affected by those fisheries are brought together through the advisory groups. Representative Martin stated that those concerns should be addressed by the Department of Law. Discussion followed among Committee members regarding the issue. Ms. Slagle continued with the Department's capital budget request for the Bering Sea crab survey equipment purchase in the amount of $150 thousand dollars. The equipment is needed to detect crab available for harvest in the Bering Sea area. She added that better data is needed to manage the fishery. Representative Navarre questioned how the survey was performed. Mr. Brooks explained that the current survey was done by the National Marine Fisheries Service through a random count. He agreed a more systematic plan needs to be in place in order to provide better management. Ms. Slagle continued, the Department's capital budget request for the Kenai River salmon habitat protection and restoration in the amount of $850 thousand dollars federal funds. She pointed out that the Kenai River was the State's premier king salmon fishing river. Representative Mulder understood that $1 million dollars had been allocated on the federal level. Mr. Brooks agreed, stating that the ground work had been established in the FY95 budget and that $150 thousand dollars had been spent to initiate that project. Representative Mulder voice concern that the money might have been used on other projects or studies. He asked for further information regarding the $150 thousand dollars already expended. Representative Therriault asked if receipt authority had been allocated through the FY95 budget. Mr. Brooks stated that there had been excess authority within the special 20 projects component. Ms. Slagle continued, the last capital budget request for the Department would be for public access development in the amount of $1.6 million dollars. The allocation would consist of $1.2 million dollars federal receipts and $400 thousand dollars general funds to be used to construct boating access facilities statewide. DEPARTMENT OF PUBLIC SAFETY Ms. Slagle addressed the Department of Public Safety's capital budget requests. The first project would be the fish and wildlife protection aircraft equipment/overhaul/repairs request in the amount of $500 thousand dollars. The allocation would be used to replace worn out or obsolete equipment and for overhauls and repairs for the Department's airplanes and landing gear. The following capital project would be for the fish and wildlife protection vessel repair/overhaul/equipment request in the amount of $500 thousand dollars. Ms. Slagle continued, the motor vehicles license plates/manuals/equipment capital budget request in the amount of $400 thousand dollars for forty-one different types of license plates, drivers manuals and for data processing equipment at counters. The next component request would be for trooper replacement equipment in the amount of $250 thousand dollars to be used to replace traffic radar. Ms. Slagle continued, the Council on Domestic Violence/Sexual Assault computer information system capital project request in the amount of $50 thousand dollars to be used to improve the access to domestic violence and sexual assault information by assessing data processing needs, redesigning the forms and software for demographic data collected from twenty-one programs. The following request would be for the Civil Air Patrol- Merril Field roof repair request in the amount of $41.6 thousand dollars. She pointed out that the request had been made in the FY95 Supplemental Request and that it had not been funded so it was brought forward in the current capital budget request. Ms. Slagle continued with the North Slope Borough jail- improve emergency access component in the amount of $45 thousand dollars. She added, that the request had also been included in the FY95 Supplemental Budget and that it had not 21 been funded. The allocation would install electronic locks in the North Slope Borough jail in order to improve the emergency exists in case of fires. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative Martin recommended cleaning up all old project records existing since 1977 which continue to have money remaining in the accounts. He surmised that those monies would free up $9 million dollars to the State. JANET KOWALSKI, CHIEF OF PLANNING, OFFICE OF THE COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, stated that there are two issues on "back" projects; the first are those projects in which there exists remaining general fund match. Each year, in collaboration with OMB, a report is provided on the CP3's monies which are remaining and requesting a portion of those funds be reallocated. The Department considers that they do have a good handle on the availability of funds previously used and she emphasized that the Department does not have a pot of general fund money "hanging" out. She agreed that projects must be completed in a timely manner in order that the remaining funds be available for future projects. Ms. Kowalski added, another issue is the projects which the Department currently has as outstanding with the legislative authority to spend money. Representative Martin stressed that the Legislature must provide the authority for projects undertaken by the Department. Representative Brown asked if everything in the Statewide Transportation Improvement Program (STIP) program would be authorized with the passage of the request. Ms. Kowalski noted that FY97 projects had not been included in the requested amounts. Representative Mulder questioned what percentage of the DOTPF budget would be allocated toward the Anchorage area. Ms. Kowalski advised that approximately $20 million dollars would be allocated for that area. HB 268 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:50 A.M. 22