HOUSE FINANCE COMMITTEE March 4, 2005 1:41 p.m. CALL TO ORDER Co-Chair Chenault called the House Finance Committee meeting to order at 1:41:30 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Eric Croft Representative Richard Foster Representative Mike Hawker Representative Jim Holm Representative Reggie Joule Representative Mike Kelly Representative Carl Moses Representative Bruce Weyhrauch MEMBERS ABSENT None ALSO PRESENT Guy Bell, Assistant Commissioner, Office of the Commissioner, Department of Labor and Workforce Development; Scott Nordstrand, Acting Attorney General, Department of Law; Kathryn Daughhetee, Director, Administrative Services Division, Department of Law; John Cramer, Director, Administration Services Division, Department of Military and Veterans Affairs; Nico Bus, Acting Director, Division of Administrative Services, Department of Natural Resources; Susan Parks, Deputy Attorney General, Criminal Division, Department of Law; Betty Martin, Comptroller, Division, Department of Law; Bob Bartholomew, Chief Operating Officer, Alaska Permanent Fund Corporation, Department of Revenue; Joan Brown, Chief Budget Analyst, Office of Management and Budget, Office of the Governor; Nancy Slagle, Director, Division of Administrative Services, Department of Transportation and Public Facilities PRESENT VIA TELECONFERENCE Dean Brown, Deputy Director of Forestry, Department of Natural Resources SUMMARY HB 66 "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." HB 66 was heard and HELD in Committee for further consideration. HB 67 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HB 67 was heard and HELD in Committee for further consideration. HB 134 "An Act making supplemental, capital, and other appropriations, and reappropriations; amending appropriations; making appropriations to capitalize funds; making an appropriation under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HB 134 was heard and HELD in Committee for further consideration. 1:41:50 PM HOUSE BILL NO. 66 "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." Co-Chair Chenault provided an update on the bill. He let the committee know that no action would be taken until after the break. He noted that 5 subcommittees are still left to close. HB 66 was heard and HELD in Committee for further consideration. HOUSE BILL NO. 67 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." Co-Chair Chenault provided an update on the bill. HB 67 was heard and HELD in Committee for further consideration. 1:43:28 PM HOUSE BILL NO. 134 "An Act making supplemental, capital, and other appropriations, and reappropriations; amending appropriations; making appropriations to capitalize funds; making an appropriation under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." DEPARTMENT OF LABOR Section 10 (a) Management Services Language for carryforward of revenues due to audit findings. Section 10 (b) Vocational Rehabilitation Administration Language for carryforward of revenues due to audit findings. GUY BELL, ASSISTANT COMMISSIONER, OFFICE OF THE COMMISSIONER, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, explained that the two sections of the request use a federally approved rate method to cover costs. Legislative audit has recommended that the legislature approve revenue carried from one year to the next. DEPARTMENT OF LAW Section 9 Civil Division, Deputy Attorney General's Office Judgments and claims of 2/7/05. $1,108.9 GF SCOTT NORDSTRAND, ACTING ATTORNEY GENERAL, DEPARTMENT OF LAW, explained that the claims are primarily public interest litigant fees, personal injury cases, and marine highway claims. Section 11 (a) Opinions, Appeals and Ethics Outside counsel costs to complete the appeal through the oral argument in the Planned Parenthood case; FY06 lapse date. $19.1 GF Mr. Nordstrand pointed out that these costs complete funding in the Parental Consent Act Case to prepare the oral argument in the U.S. Supreme Court. Vice-Chair Stoltze inquired whether a statutory change made last session affected maritime claims. Mr. Nordstrand replied that the department is "cleaning up" the cases that pre-date the 2003 legislation. He noted that the statute is being challenged. Co-Chair Chenault asked why outside counsel was used for the Planned Parenthood case. Mr. Nordstrand replied that the new administration continued with the attorney already on the case. KATHRYN DAUGHHETEE, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION, DEPARTMENT OF LAW, added that Department of Law staff was also used. Section 11 (b) Statehood Defense Extend lapse date to June 30, 2006 for Navigable Waters, RS 2477 Rights-of-Way, Statehood Defense - Sec. 62(b), ch. 82, SLA 2003. Ms. Daughhetee explained that the money would be for an additional staff to work on this case. Section 11 (c) Environmental Law Extend lapse date to June 30, 2006 for continued analysis of the continuing injury from the Exxon Valdez oil spill and development of restoration options - Sec. 16, ch. 159, SLA 2004. Section 11 (d) Environmental Law Extend lapse date to June 30, 2006 for Exxon Valdez Oil Spill Trustee Council - Sec. 22(c), ch. 159, SLA 2004. Ms. Daughhetee related that these were items funded by the legislation last year. 1:50:34 PM DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Section 12 (a) Capital Transfer RPL 09-5-0001, authorized on July 8, 2004, for the Alaska Aviation Safety project from operating to capital ($2,803.0 federal funds). JOHN CRAMER, DIRECTOR, ADMINISTRATION SERVICES DIVISION, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS explained that the request transfers this project from the department's operating budget to its capital budget. Section 12 (b) Capital Reappropriation of the estimated balance of $48.5 from the Tudor Road Combined Support Maintenance Site Clean- up project (Sec. 1, ch. 135, SLA 2000) for statewide emergency communications. Mr. Cramer related that this is leftover money from a project that cleaned up a maintenance shop site on Tudor Road, and the department would like to have it reappropriated to the emergency communications program. Section 12 (c) National Guard Military Headquarters Anchorage Armory basic telecommunications service; increased basic telephone service costs provided by the National Guard Bureau for FMVA offices located in the Anchorage Armory. $57.2 GF Mr. Cramer explained that the annual basic telephone services costs, which will be billed to state program offices operating within the Armory National Guard on Fort Richardson. Federal agreements will not allow this expense to be charged to the military. Section 12 (d) Air Guard Facilities Maintenance Network Services Costs for Kulis and Eielson: network service is provided by the Air National Guard. $30.9 GF Mr. Cramer related that the cost of state network service is not available through the State of Alaska Department of Administration's ETS to the Air National Guard. Section 12 (e) Alaska Military Youth Academy Network Services Costs for the Alaska Military Youth Academy: network service is provided by a private sector vendor. $52.6 GF Mr. Cramer explained that this item is also not covered by the Department of Administration for the Youth Academy at Fort Richardson. 1:52:37 PM DEPARTMENT OF NATURAL RESOURCES Section 13 (a) Fire Suppression Activity Costs to fight worst fire season in history. $36,902.7 GF NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES, explained costs of the fire season last year, which was almost three times the average general fund expenditure. Representative Kelly asked if there is any check on the efficiency of expenditures. Mr. Bus explained that there is an Instant Command Center, which evaluates resource allocation on a daily basis. Daily cost estimates are reviewed. The state works with the federal cooperators and local districts to review activity after the season is over. DEAN BROWN, DEPUTY DIRECTOR OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES, testified via teleconference. She explained that a Wildland Fire Situation Analysis (WFSA) occurs from the time fire escapes its initial attack. The WFSA is done frequently (sometimes more than once a day.) The WFSA looks at strategies for fire suppression and their associated costs. The situation is monitored on a daily basis. A Night Report is also kept on every fire, which gives estimates of costs. The reports are discussed with the incident commander, teams, and the area and regional foresters. Representative Kelly asked what she wished would have been done better. Ms. Brown replied that the weather was an unprecedented situation of natural forces. She noted that the operational activities and incident command system were reviewed. She did not see a worst-case item that stands out in terms of inefficiencies. There were many successes. It was the first time there was a joint command in the Northern Region, involving local government and entities. 1:59:23 PM Representative Holm asked how communication could be improved. Ms. Brown noted that training would occur in the spring. The joint command would be moved from Fort Wainwright to towns for better access. She observed that the media was helpful. They will attempt to contact landowners directly. Representative Holm suggested that there should be a single voice. He wondered about the connection between the cost and the support received from the Bureau of Land Management (BLM), National Type 1 Team. Ms. Brown noted that the state of Alaska has interagency agreements with BLM and the U.S. Forest Service. She observed that Alaska has a National Type 1 team, but that it was already fully committed. The costs are a function of fire complexity, not the team, based on land ownership. Representative Holm related that he was on the scene when the first team arrived and felt that there was a lot of wasted time looking at maps and figuring out the vegetation and animals. Ms. Brown stressed that fire situations and fuels are different in Alaska. A local liaison is attached to each Type 1 Team. There were 21 Incident Management Team mobilizations: three were National Type 1 Teams. Individuals from the Alaska team were put in charge of individual fires by the time the Type 1 Team was called in. Representative Croft pointed out that it is a weird funding situation because there are two issues: Are they doing a good job fighting fires; and is it being done in a cost effective manner? He questioned what systems are in place to insure that the money is being spent correctly. He asked for systemic information regarding cost control. 2:07:07 PM Mr. Bus explained that the legislation changed the funding method to the average of the last 10 years, with the high and low years thrown out. When this funding runs out an emergency/disaster situation has to be declared. The presiding officers of the House and the Senate are notified of the situation and the best estimation of the new costs. This happened four or five times last summer. The original appropriation was $6.7 million. Additional proclamations were made on July 20, August 5, August 18, and September 16, 2005. The fire fighters have to follow procedures in a negotiated document, which is updated every year. The costs are reviewed and audited. The landowner has to pay the costs of the audit. The federal government has to be reimbursed for National Type 1 teams, which come to Alaska. At the beginning season long-term aviation contracts are negotiated to prevent crisis rates. The rates the operators charge are negotiated in advance, as is the labor. This is done diligently. Ms. Brown added that the cross billing between the federal government and the state is another way of checking costs. There were three FEMA declared fires, which created a high level of federal scrutiny. She stressed that checks and balances pay off. Section 13 (b) Capital Reappropriation of the Grants to Named Recipient: Ketchikan Area State Parks Advisory Board - $25,000 for Areawide Health, Safety and Maintenance Upgrades project to DNR for same purpose. As originally appropriated, the Board has no staff or the capability to receive and expend the funds. Mr. Bus noted that the request is a reappropriation to the Department of Natural Resources from the Ketchikan Area State Parks Advisory Board. The legislation appropriated the money last year as a designated grant to the Ketchikan Area State Parks Advisory Board. The Board had no way to receive or expend the funds. The money would be expended by the department for facilities and campgrounds. Co-Chair Chenault asked why the appropriation was contained in the supplemental. Mr. Bus noted that it is a reappropriation and stressed the need for an early start date. Section 13 (c) Water Development Replace non-realizable receipts. $100. GF ($100.0) Receipt Supported Services Mr. Bus noted that the appropriation would change the funding source from receipt support services to general funds for the Water Program. In the previous year, the Legislature appropriated $300,000 in general funds to receipt support services. The limit for collection of receipt support services by the Water Program is defined in statute as the direct cost. The department could not collect the $300 thousand. Water case adjudications have been backlogged. The department is only processing about half of the applications that are being recieved. In response to a question by Representative Croft, Mr. Bus clarified that fees are set in regulation and refer to water usage fee collection. Water right applications are based on volume of usage. Collections do not cover all the budget costs. 2:15:52 PM DEPARTMENT OF REVENUE Section 15 (a) Alaska State Pension Investment Board Increased managers fees. $1,100.0 various Retirement Funds SUSAN PARKS, DEPUTY ATTORNEY GENERAL, CRIMINAL DIVISION, DEPARTMENT OF LAW, explained that this section relates to increased manager fees, which are a percentage of investments under market. They are budgeted in a separate component and can only be used for those purposes. There is an increment in the FY06 budget. Representative Kelly asked what the funds provide. BETTY MARTIN, COMPTROLLER, DIVISION, DEPARTMENT OF LAW, explained that the fees pay for external managers for domestic and international equity, domestic and international fixed income, and agriculture funds. Managers work toward a target return given them by the Board and are evaluated on their return. Representative Kelly asked if there were any new hires. Ms. Martin replied that two agriculture managers were hired in the last year, and one international manager was terminated. The changes were related to growth in the assets. Section 15 (b) Capital Alaska Mental Health Trust Authority: Mobility Coalition grant funds from the U.S. Department of Transportation. $500.0 Federal Funds Ms. Parks explained that Section 15 (b) is a capital request for the Alaska Mental Health Authority. The funds would come from the U.S. Department of Transportation. The funds had previously been appropriated to the Alaska Department of Transportation and Public Facilities. The Administration is working with the federal government to have the funds appropriated back to the Department of Transportation and Public Facilities. The funds would be sent as a RSA to the Department of Transportation and Public Facilities, which will continue to manage the project. 2:19:28 PM Representative Hawker asked about increased manager's fees. He requested more documentation in the future. Ms. Park said they would be happy to do that. Section 15 (c) APFC Custody and Management Fees Increased managers fees. $1,500.0 Permanent Fund Receipts BOB BARTHOLOMEW, CHIEF OPERATING OFFICER, ALASKA PERMANENT FUND CORPORATION, DEPARTMENT OF REVENUE, discussed Section 15 (c). He observed that manager fees are fixed to rise in the stock market. He noted that the Corporation based estimates on a medium return of 9 percent. The return has averaged between 20 - 25 percent annually. There has been a steep rise. The Permanent Fund was only $25 billion when they began their [budget] preparation. At the time of the hearing, the Fund was $30 billion. He offered to provide members with a chart, which tracked those assets. He observed that fees for the management component were reduced over the last four years. Fees are still $6 million below where they were four years ago. Section 20 Treasury Division Increased managers fees. $25.0 CBR Ms. Parks explained that the request would be for the CBR sub-fund. 2:22:49 PM STATE DEBT Section 16 (a) School Debt Reimbursement Fund source change due to a shortfall in cigarette tax revenue deposits into the School Fund. The School Fund is reduced from $30.2 million to $29.4 million and the Debt Retirement Fund is increased from $51,670,084 to $52,470,084. Section 16 (b) Capital Project Debt Reimbursement The lapse date of sec. 33(f)(3), ch 158, SLA 2004, page 68, line 16 - 18, is extended to June 30, 2006 for Metlakatla Power and Light's utility plant and capital addition debt reimbursement. JOAN BROWN, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, discussed Section 16 (b), which is a lapse date extension for debt reimbursement. 2:23:36 PM DEPARTMENT OF TRANSPORTATION Section 17 (a) Capital Bids came in higher for Chandalar maintenance station construction. $930.0 GF NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, spoke to Section (17). The request would replace the Chandalar maintenance station. She observed that the facility was found to be deficient structurally and was vacated and demolish. The Department has attempted to replace the facility and is operating out of a tent, with borrowed equipment. The station is on the Dalton Highway in an area with extreme weather. The Department has received $2.6 million to begin work. Some groundwork has been done. The building has gone out to bid, but came in higher than available funding. The request would allow work to begin and provide the basic shell of the building. They have requested an amendment to the capital budget to complete the project. Co-Chair Chenault asked the size of the building and total cost. Ms. Slagle responded that the total construction cost is estimated at $5.8 million. The amendment to the capital budget is $2.4 million. Most of the equipment located in the building is for maintaining the Dalton Highway and the Chandalar Airport. The location is a factor, as is the increased cost of steel. 2:28:17 PM Representative Holm understood that the Coldfoot station was used for most of the area maintenance and questioned how close it is to Chandalar. Ms. Slagle did not know the mileage involved. Representative Holm expressed concern that the project not be a "Cadillac". He felt the cost was high. Ms. Slagle offered to get more information. Section 17 (b) Capital Adak contract - new federal authority for capital improvements. $3,400.0 Federal Funds Ms. Slagle discussed Adak airport needs and upgrades. The funds would come from a Department of Defense grant to assist in infrastructure for the airport. An airport rescue and fire fighting biding would be built and de-watering pumps would be upgraded, as well as the lighting system. Section 17 (c) Capital Emergency and Non-routine Maintenance: Failed railroad crossings, $305.0 Winter ice storm and avalanche damage, $50.0 Johnson River bridge damage, $218.4 $573.4 GF Ms. Slagle explained that the Department requested funding in the FY05 capital budget for emergency and non-routine maintenance area. The Legislature directed the Department to request funds in the supplemental budget. There are three items: $305.0 for failed railroad crossings, $50.0 for winter ice storm and avalanche damage, Johnson River bridge damage, $218.4 Ms. Slagle bridge repairs due to over height vehicle, which caused extensive damage. Representative Hawker questioned if there is an opportunity for third party reimbursement for damage to the bridge and railroad crossing. Ms. Slagle explained that there is an opportunity to recover some costs. The individual or equipment, which caused the bridge damage was not found. The railroad crossing damage was not a specific incident, but the result of needed deferred maintenance. 2:36:25 PM Section 17 (d) Anchorage Airport Facilities Anchorage Airport Facilities $1,001.4 Internat'l Airports Rev Fund Section 17(e) Anchorage Airport Field and Equipment Maintenance Anchorage Airport Facilities $274.8 Internat'l Airports Rev Fund Ms. Slagle reviewed the request and explained that sections 17 (d) and (e) both relate to increased utility costs associated with the Anchorage International Airport. The additional space in the C Concourse has also added to the increase in costs. The request would be funded through international airports revenue funds, which are generated from airport operations. Section 17 (f) Capital Reappropriate the June 30, 2005 balance of the $10 million appropriation made in sec. 29(c), ch. 159, SLA 2004 for the Adak air field, estimated to be $9 million, to DOT for capital improvements. Ms. Slagle observed that the request is for a reappropriation of $10 million in federal receipt authority for the operation of the Adak Airport. The funds were appropriated in the operating budget for operating and capital expenditures. The Department has requested that the remainder of the funds be identified as capital spending for efficiency. Co-Chair Chenault clarified that the Department does not have the authority to expend the capital funds. 2:39:42 PM Section 17 (g) Central Region Facilities Heating fuel and risk management cost increases. $249.9 GF 2:41:07 PM Section 17 (h) Northern Region Facilities Heating fuel and utility cost increases. $465.5 GF Ms. Slagle observed that fuel prices have risen 24 - 40 percent throughout the state. Some areas natural gas and electricity bills have risen by 65 percent. There have also been increases in the risk management cost due to the addition of snow removal equipment buildings. Section 17 (i) Central Region Highways and Aviation Anchorage snow haul and equipment fuel, utilities, sand and steel cost increases. $1,374.4 GF Section 17 (j) Northern Region Highways and Aviation Equipment fuel, utilities, and steel cost increases. $1,399.5 GF Section 17 (k) Southeast Region Highways and Aviation Equipment fuel, sand, chemicals and steel cost increases. $263.4 GF Ms. Slagle noted that these sections relate to increased utilities and commodities costs in highways and aviation. There has been a 70 - 100 percent increase in steel. She added that $120 thousand is for snow hulling activities in the Anchorage area. Representative Holm questioned how many miles of state highway are maintained in Anchorage. Ms. Slagle did not have the information. The state also maintains traffic lights in the Anchorage area. There is significant coordination with the municipality. 2:44:13 PM Section 17 (l) State Equipment Fleet Administration Fuel increases - credit card expenditures reimbursed by user agencies. $1,100.0 Highway Working Capital Fund Ms. Slagle explained that the request would pay fuel bills for state vehicles. The state has a contract, which allows bills to be paid by credit card and reimbursed from the users, through the Highway Working Capital Fund. Costs have increased. In response to a question by Representative Hawker, Ms. Slagle explained that the increase was built into highway and aviation components, which employs 80 percent or more of the fleet. In response to a question by Co-Chair Chenault, Ms. Slagle did not know the type of credit card used by the state. The state bid the contract and receives a 10 percent rebate per gallon. 2:47:25 PM Section 17 (m) Statewide Information Services. Funding for telecommunications chargeback costs. FY 04 supplemental funding was not built into FY 05 budget, thereby causing a shortfall. $659.6 GF Ms. Slagle noted that the request would pay for Enterprise Productivity Rate paid for telecommunications services. There has been an increase in the charge methodology. Departments are charged by their number of position. The Department of Transportation and Public Facilities has a large number of employees that do not have access to technology equipment. The change has impacted Department of Transportation and Public Facilities greater than other departments. In response to a question by Co-Chair Chenault, Ms. Slagle anticipated that the level of support would remain. 2:50:01 PM Representative Kelly referred to Section 17 (f). Ms. Slagle reiterated that the Department received $10 million from the United States Navy for on going maintenance and infrastructure upgrade at the Adak Airport. The request was for capital funds, since that is where most of the expenditures would be located. but the 2:51:27 PM Section 17 (n) Central Region Highways and Aviation King Salmon air traffic control current year contract. $68.0 GF Ms. Slagle explained that the request would cover FY05 expenditures for the King Salmon air traffic control. The FAA decided not to continue support of the King Salmon air traffic control. The state of Alaska felt that the operations needed to be continued due to safety concerns. The state is in the process of negotiating with the FAA in an attempt to have them reconsider their position. They are also talking to the United States Airforce to assist with costs of the operations. Representative Kelly noted that there are a number of airfields in the state that are extremely busy that do not have controllers. He asked if comparisons are available to determine the highest area of need. 2:54:38 PM Section 17 (o) Human Resources Shortage in realizing savings due to delay in implementing electronic timesheets. $140.0 Various Funds Ms. Slagle observed that the request is for non-general fund receipt authority. The FY05 budget reflected the intent to create an electronic time sheet program. The system is not available and the savings have not been realized. The Department of Transportation and Public Facilities is working with the Department of Fish and Game to create a system. The working relationship has been good. Representative Weyhrauch asked if the Department of Law had electronic timesheets. Ms. Slagle clarified that the Department of Law's time keeping system does not provide the download to the state pay system. The department also needs to track expenditures to their capital projects through the state accounting system. 2:57:56 PM Section 18(a) Capital Airport Improvement Program increase of $18 million in federal funds as allocated. Section 18(a)(1) Capital Bethel: Airport Parallel Runway and Other Improvements $16,000.0 FF Section 18(a) Capital Hooper Bay: Airport Access Road Repairs $2,000.0 FF Section 18(b) Capital Surface Transportation Program increase of 8,725.0 in federal funds as allocated. Section 18(b)(1) Capital Southeast: Mid Region Access EIS $2,000.0 FF Section 18(b)(2) Capital Statewide: Comprehensive Highway Safety Plan $500.0 FF Section 18(b)(3) Capital Statewide: Electronic Crash Web Enablement Form 12-200 and Data Transfer $400.0 FF Section 18(b)(4) Capital Statewide: Emergency Bridge Replacement $800.0 FF Section 18(b)(5) Capital Statewide: Intelligent Transportation systems Implementation Plan (IWAYS) $1,350.0 FF Section 18(b)(6) Capital Statewide: Road/Highway Functional Classification Review $400.0 FF Section 18(b)(7) Capital Statewide: Material Site Investigation $500.0 FF Section 18(b)(81) Capital Statewide: Milepost and Destination Signs $1,300.0 FF Section 18(b)(9) Capital Statewide: National Highway System and Non-National Highway System Anti-icing Program $400.0 FF Section 18(b)(10) Capital Statewide: Traveler Information Signs $325.0 FF Section 18(b)(11) Capital Glenn Highway: Milepost 58, Milepost 60, and Milepost 97 Slides Repair $750.0 FF Ms. Slagle discussed the remaining sections 18 (a)-(b)(11). She noted that the requests would provide additional federal funds. The Federal Aviation Administration has more discretion in how they award their funds and do not always agree with the state of Alaska's proposals. More federal funds have been found for Hopper Bay, and Bethel. Co-Chair Chenault referred to Bethel. Ms. Slagle noted that there is quite a bit of activity in Bethel. 2:59:36 PM Vice-Chair Stoltze referred to Section 18(b)(10) and questioned if the signs were related to tourist oriented directional signs. Ms. Slagle thought that the request pertained to the community service sign program, for new legal signs. The request does not address illegal signs. 3:02:45 PM ADJOURNMENT The meeting was adjourned at 3:02 PM