HOUSE FINANCE COMMITTEE May 11, 1997 2:00 A.M. TAPE HFC 97-137, Side 1, #000 - end. CALL TO ORDER Co-Chair Hanley called the House Finance Committee meeting to order at 2:00 a.m. PRESENT Co-Chair Hanley Representative Kelly Co-Chair Therriault Representative Kohring Representative Davies Representative Martin Representative Davis Representative Moses Representative Foster Representative Mulder Representative Grussendorf ALSO PRESENT John Bitney, Alaska Housing Finance Corporation. SUMMARY SB 107 "An Act making and amending capital and other appropriations and to capitalize funds; and providing for an effective date." HCS CSSB 107 (FIN) was reported out of Committee with a "do pass" recommendation. SENATE BILL NO. 107 "An Act making and amending capital and other appropriations and to capitalize funds; and providing for an effective date." Amendment 37 was WITHDRAWN. Co-Chair Hanley noted Amendment 37 was incorporated into a previous amendment. Amendments 38 - 41 were WITHDRAWN. Representative Grussendorf MOVED to adopt Amendment 42 (copy on file). There being NO OBJECTION, it was so ordered. Amendments 43 and 44 were WITHDRAWN. Representative Foster MOVED to adopt Amendment 45 (copy on file). Amendment 45 expands the title of the Municipal Capital Matching Grants program. There being NO OBJECTION, it was so ordered. Representative Davis MOVED to adopt Amendment 46 (copy on file). Amendment 46 would allow the Department of Public Safety to sell five patrol vessels and buy two patrol vessels with the proceeds. There being NO OBJECTION, it was so ordered. Representative Kelly MOVED to adopt Amendment 47 (copy on file). Amendment 47 would appropriate $175 thousand dollars to the Department of Fish and Game from the Fish and Game Fund for the Division of Wildlife Conservation. There being NO OBJECTION, it was so ordered. Representative Grussendorf MOVED to adopt Amendment 48 (copy on file). Co-Chair Hanley OBJECTED. Representative Grussendorf explained that the amendment would provide funding for renovation of the Kiana High School. He noted that this project is number six on the Department of Transportation and Public Facilities' priority list. He emphasized that the project would correct a risk to public safety. Co-Chair Hanley noted that the project will be at the top of the list in the next legislative year. A roll call vote was taken on the MOTION. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (3-8). Representative Mulder MOVED to adopt Amendment 49 (copy on file). Amendment 49 would appropriate $364,100 thousand dollars from Alaska Housing Finance Corporation (AHFC) dividend funds to the Legislative Council for computer programs and equipment. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Davies, Grussendorf, Moses, Davis, Foster, Kelly, Kohring, Mulder, Therriault, Hanley OPPOSED: Martin The MOTION PASSED (10-1). Representative Moses MOVED to adopt Amendment 50 (copy on file). Amendment 50 would extend the lapse date on the Adak Reuse Authority appropriation. There being NO OBJECTION, it was so ordered. Representative Foster WITHDREW Amendment 51. Representative Mulder WITHDREW Amendment 52. Representative Foster WITHDREW Amendment 53 and 54. Representative Mulder WITHDREW Amendment 55. Representative Grussendorf MOVED to adopt Amendment 56 (copy on file). Amendment 56 would appropriate $250 thousand dollars from the Investment Loss Trust Fund to the Department of Education for the Galena School District for a Regional Vocation Charter School. He noted that the a facility at the air base could be leased for $1 dollar to operate a vocational school. A roll call vote was taken on the MOTION. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (3-8). Co-Chair Therriault MOVED to adopt Amendment 57 on behalf of Representative Vezey (copy on file). He clarified that the amendment would reappropriate funds within the same district. There being NO OBJECTION, it was so ordered. Amendments 58 - 61 reflect changes in capital matching grants requests. Co-Chair Hanley MOVED to adopt Amendment 58 (copy on file). He explained that the amendment would change capital matching grant funding in Representative Nicholia's district. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 59 (copy on file). Amendment 59 would reappropriate funding from the Tetlin Washerteria to the Arctic Village powerline. The appropriation was reduced by $900 due to an over-allocation in funding. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 60 (copy on file). Amendment 60 would expand a capital matching grant to the city of Kiana for gravel site selection to include bulk fuel extraction. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 61 (copy on file). Amendment 61 corrects an over-allocation. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 62 (copy on file). Amendment 62 contains updated appropriations for judgement and claims for the Department of Law. There being NO OBJECTION, it was so ordered. Representative Davies MOVED to adopt Amendment 63 (copy on file). Amendment 63 would appropriate $400 thousand dollars to the Department of Administration to complete the Satellite Interconnection Project. He explained that the project would fund the installation of automation equipment for public broadcasting in order to realize reductions in long-term operation costs. A roll call vote was taken on the MOTION. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (3-8). Representative Davies WITHDREW Amendment 64 (copy on file). Amendments 65 was WITHDRAWN. Co-Chair Hanley MOVED to adopt Amendment 67 (copy on file). Co- Chair Hanley explained that Amendment 67 amends the title on a capital matching grant. There being NO OBJECTION, it was so ordered. Representative Martin MOVED to adopt Amendment 66 (copy on file). He explained that the amendment would add "multipurpose community use resource center" to an appropriation for the Anchorage-Central Terrace/Fairmount Phase I project in the Mountain View area. JOHN BITNEY, ALASKA HOUSING FINANCE CORPORATION explained that this is a new AHFC capital project. He observed that there are eighty units. Some units would be sold and others renovated. The project would cost $1.5 million dollars. He noted funding will also come from the municipality of Anchorage. He stated that AHFC supports the amendment. Representative Martin noted that residents did not want additional units built in the Mountain View area. He clarified that a task force appointed by the Legislative Budget and Audit Committee recommended that some of the older units be cleaned up. He observed that the Boys and Girls Club has raised $2 million dollars for the project. Co-Chair Hanley pointed out that if the funding is only going to be used to tear down the old buildings that the language adding a multipurpose community use resource center would not be needed. Mr. Bitney explained that what is torn down will be rebuilt. In addition, a number of units would be sold to the private sector. Co-Chair Therriault observed that $2 million dollars in private sector funding is available. He emphasized that the center could be built with private sector funding without expanding the appropriation. Representative Martin spoke in support of the amendment. Representative Mulder noted that it is a $4 million dollar project, with half of the funding coming from the private sector. He stressed that it is a community wide project. Co-Chair Hanley acknowledged that it is a good project. He expressed concerns regarding the use of AHFC funds for the project. He noted that other communities with AHFC housing projects may decide to use AHFC funding for other priority projects with matching funding. Representative Grussendorf noted that members of the minority caucus support the amendment. He acknowledged the affect the amendment could have on future AHFC capital funds. A roll call vote was taken on the MOTION to adopt Amendment 66. IN FAVOR: Grussendorf, Kohring, Martin, Mulder, Davies, Foster OPPOSED: Kelly, Moses, Davis, Therriault, Hanley The MOTION PASSED (6-5). Co-Chair Hanley provided members with Amendments 101 - 110 (copies on file). Co-Chair Hanley MOVED to adopt Amendment 101. Co-Chair Therriault MOVED to AMEND Amendment 101, delete "Office of the Governor, Office of Management and Budget, Governmental Coordination" and insert "Department of Natural Resources, Commissioner's Office." There being NO OBJECTION, it was so ordered. There being NO OBJECTION, Amendment 101 was adopted as amended. Co-Chair Hanley MOVED to adopt Amendment 102. He explained that excess program receipts were identified in the Alaska Seafood Marketing Institute's budget. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 103. He clarified that the amendment corrects a technical problem relating to the appropriation of Fishery Resource Landing Taxes to local communities. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 104. He noted that the amendment would appropriate $5.6 million dollars to the Alaska Debt Retirement Fund. The appropriation includes $6 thousand dollars from the General Fund and $5 million dollars from the Investment Loss Trust Fund. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 105. The amendment would appropriate $1.5 million dollars from the Investment Life Trust Fund and $1.5 million in AHFC dividend dollars for the Johnson Youth Center. There being NO OBJECTION, it was so ordered. Representative Mulder MOVED to adopt Amendment 106. Amendment 106 allows the carry-forward of $2.5 million general fund dollars in the Department of Corrections funds and $500 thousand federal dollars for the Point MacKenzie farm project. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 107. Amendment 107 would appropriate $400 thousand dollars for the Department of Corrections, Harborview Treatment Program. There being NO OBJECTION, it was so ordered. Co-Chair Hanley MOVED to adopt Amendment 108. He explained that the amendment clarifies, in the front section, the appropriation of a $70 million dollar AHFC dividend. Co-Chair Hanley MOVED to adopt Amendment 109. He explained that the amendment would appropriate $50 thousand dollars for a study on the renovation of the Juneau Capitol School building. Representative Mulder suggested that the appropriation include study and planning. Co-Chair Hanley noted that Mr. Welker recommended the appropriation level for the study. There being NO OBJECTION, Amendment 109 was adopted. Co-Chair Hanley MOVED to adopt Amendment 110. He noted that section A of Amendment 110 would fund the FY 98 COLA amounts for the second year of the collective bargaining agreements. Section B includes language for four new contracts. Representative Kohring OBJECTED. He spoke against the amendment. He asserted that a salary study should be completed before the increases are funded. Co-Chair Hanley noted that the majority's goal of a $60 million dollar reduction would not be adversely affected by the amendment. A roll call vote was taken on the MOTION to adopt Amendment 110. IN FAVOR: Davies, Grussendorf, Moses, Davis, Foster, Kelly, Mulder, Therriault, Hanley OPPOSED: Kohring, Martin The MOTION PASSED (9-2). Representative Foster MOVED to adopt Amendment 99 (copy on file). Amendment 99 would appropriate $300 thousand dollars for the construction of a seawall in Bethel. A roll call vote was taken on the MOTION. IN FAVOR: Davies, Grussendorf, Moses, Foster OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (4-7). Co-Chair Therriault MOVED to report CSSB 107 (FIN) out of Committee with individual recommendations. HCS CSSB 107 (FIN) was reported out of Committee with a "do pass" recommendation. ADJOURNMENT The meeting adjourned at 3:30 a.m. .m.