HOUSE FINANCE COMMITTEE January 17, 2001 3:42 PM TAPE HFC 01 - 13, Side A TAPE HFC 01 - 13, Side B CALL TO ORDER Senator Donley called the House Finance Committee meeting to order at 3:42 PM. HOUSE FINANCE COMMITTEE MEMBERS PRESENT Representative Eldon Mulder, Co-Chair Representative Bill Williams, Co-Chair Representative Con Bunde, Vice-Chair Representative Eric Croft Representative John Davies Representative Carl Moses Representative Richard Foster Representative John Harris Representative Bill Hudson Representative Ken Lancaster Representative Jim Whitaker HOUSE FINANCE COMMITTEE MEMBERS ABSENT None SENATE FINANCE COMMITTEE MEMBERS PRESENT Senator Donley, Co-Chair Senator Kelly , Co-Chair Senator Ward, Vice-Chair Senator Leman Senator Wilken Senator Austerman Senator Hoffman Senator Olson SENATE FINANCE COMMITTEE MEMBERS ABSENT Senator Green ALSO PRESENT Representative Gretchen Guess; Representative Mary Kaspner; Representative Reggie Joule; Jeff Staser, Federal Co-Chair, Denali Commission; Krag Johnsen, Staff Designee to the Denali Commission, Legislative Budget and Audit Committee; Henry Springer, Commissioner, Denali Commission; GENERAL SUBJECT(S): Joint with Senate Finance Committee in HFC room Presentation: Denali Commission: current and future expenditures The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 22nd Legislative Session, contact 465- 2156. After the 22nd Legislative Session they will be available through the Legislative Library at 465-3808.   LOG SPEAKER DISCUSSION    TAPE HFC 00 - 13  SIDE A  000 Krag Johnsen, Staff Introduced federal and state staff Designee to the working with the Commission.  Denali Commission, Legislative Budget and Audit Committee 148 JEFF STASER, FEDERAL Noted that the Denali Commission is a CO-CHAIR, DENALI federal agency established by federal COMMISSION law. Created in March 1999. Reviewed membership of the Commission.  260 Mr. Staser The goal is to promote rural infrastructure & utility Development and provide training and economic development in rural communities.  360 Mr. Staser Noted that there are many problems in federal laws that need to be addressed.  388 Mr. Staser The commissioners created themes to focus the efforts. They are energy, health delivery, telecommunications, economic development, training (10 percent) and life cycle operations and maintenance. He reviewed some of the work in these areas.  485 Mr. Staser The commission uses established priority systems when possible and seeks gaps and consensuses. Work is submitted to Congress.  550 Mr. Staser Stressed the importance of accountability.  613 Mr. Johnsen Provided an overview of appropriations and expenditures. There received $20 million dollars in FY 99; $15 million of this was dedicated to the bulk fuel and rural power system upgrades.  667 Mr. Johnsen Continued details of expenditures.  680 Mr. Johnsen Reviewed FY00 appropriations and expenditures: $14 million Alaska Energy Authority, $2 million Department of Labor and Workforce Development for training, $5 million southeast electrical intertie,  $824 thousand to the Alaska Growth Capital, and $1 million health clinic construction.  781 Mr. Staser Discussed the First Alaskans Foundation. The Denali Commission does not set the fund it only manages the Fund. It was one time appropriation.  894 Mr. Johnsen Discussed Denali Commission partners: Alaska Industrial Development and Export Authority (AIDEA), ANTHC, Department of Community and Economic Development, Department of Labor and Workforce Development, USDA, Federal Executive Association and MOU.  978 Mr. Johnsen Gave further information on the Alaska Growth Capital group. It works as a state chartered bank that can help small businesses. They help with project viability.  1062 Representative Asked if funds are purely federal. Mr. Hudson Staser responded that funds are commingled. Mr. Johnsen noted that project funding is delineated in the handout.  1115 Mr. Staser Discussed the Federal Executive Association. He reviewed projects around the state.  1186 Mr. Staser Noted that the Denali Commission has an appropriation of $65 million for FY01. He clarified that they Commission is not involved in cleanup.  1309 Senator Olson Asked how priorities are set.  1320 Mr. Staser Discussed prioritizing. The Denali Commission tries not to get into policy debate. They funded feasibility projects for fuel tanks. The preference is for local governments to take the lead.  1468 Mr. Staser Stressed that projects most be feasible. He emphasized the need for economies of scale. There should be a community based plan that can be locally supported.  1545 Mr. Staser Discussed management initiatives. Looking at a uniform database supported by the state. A new form to standardize applications has been implemented. Funding forums are taken to communities. There have been approximately 7 around the state. Trying to avoid hunting the grant.  1673 Senator Hoffman Referred to bulk fuel efforts. He questioned how communities could participate if they did not know of the  Denali Commission.  1709 Mr. Staser All but 5 communities have been visited by the state. There will be an up to date database for all communities. There is no deadline. The size of community is not a criterion. Level of unemployment is a criterion. He stress accountability and sustainability.  1897 Representative John Asked if there is a strategy for Davies telecommunications.  1911 Mr. Staser Stated that they are trying not to get ahead of the telecommunication commission.  2000 Mr. Staser Showed a video by the Environmental Protection Agency that lasted approximately 6 minutes.  2219 Mr. Staser He noted that 90 percent of the money goes to rail belt communities. Better paying jobs go outside of the community. This is why the emphasis on training was added. Increased local payroll is a goal.  2289 Mr. Staser Noted that the backlog of $200 million dollars is growing as assessments are completed. Interest of $10 million dollars a year is coming for oil spill prevention. The funding stream on the interest is indefinite.    TAPE HFC 01 - 13,  Side B  022 Co-Chair Mulder Noted that there is $18 million dollars for the Alaska Village Electric Cooperative.  117 Senator Hoffman Noted that communities that do not have internet connections are falling further behind in job skills.  180 Mr. Staser Observed that the Denali Commission is trying to ascertain that power is available to allow access to the internet.  328 Senator Ward Referred to the number of communities surveyed. He questioned if total fuel consumption has been reviewed and the possibility of buying as a unit.  384 Mr. Staser Responded that the Denali Commission cannot make that decision. In the state of Alaska, AIDEA can look at what works for bulk fuel management. The intent is to help the existing structure. The Denali Commission is not involved in making policy.  621 Representative Does the Backlog overlap the state Lancaster deferred maintenance costs? Mr. Johnsen  clarified that the backlog identified by the Denali Commission is the bulk fuel work, which would be owned by local communities or private entities.  751 ADJOURNMENT The meeting was adjourned at 4:45 p.m.