HOUSE FINANCE COMMITTEE March 31, 2008 6:13 P.M. CALL TO ORDER Co-Chair Meyer called the House Finance Committee meeting to order at 6:13:44 PM. MEMBERS PRESENT Representative Kevin Meyer, Co-Chair Representative Mike Chenault, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Harry Crawford Representative Les Gara Representative Mike Hawker Representative Reggie Joule Representative Bill Thomas Jr. MEMBERS ABSENT Representative Richard Foster Representative Mike Kelly Representative Mary Nelson PRESENT VIA TELECONFERENCE Cynthia Henry, Vice Chair, University, Board of Regents, Fairbanks; Kathy Morgan, Tok Community Umbrella Corporation, Tok; Jeff Hermans, Division of Forestry, Department of Natural Resources, Anchorage; Doug Penn, Area wide Principle, Chugiak School District, Chugiak; Jason Gazewood, Lawyer, Board Member for Fairbanks Counseling Adoption, Fairbanks; Michelle Dewitt, Director, Tanana Women's Coalition (TWC), Bethel; Dave Trantham, Self, Bethel; Ed Zastrow, President of the Local AARP Chapter, Alaska Commission on Aging, Ketchikan; Bob Weinstein, Mayor, City of Ketchikan GENERAL SUBJECT(S): The following overview was taken in log note format. Handouts will be on file with the House Finance Committee through the 25th Legislative Session, contact 465-6814. After the 25th Legislative Session they will be available through the Legislative Library at 465-3808. STATEWIDE PUBLIC TESTIMONY ON THE CAPITAL BUDGET    TIME SPEAKER DISCUSSION  6:15:20 PM CYNTHIA HENRY, Testified in support of maintenance VICE CHAIR, funding of $40 million dollars to be UNIVERSITY, used for the University renovation and BOARD OF renewal projects. The funding would be REGENTS, used to address major maintenance FAIRBANKS including roof repairs and mechanical needs. She worried about the reduction proposed in the Senate, which would place the University in a difficult situation. The public expects the University to maintain their facilities; it is difficult to attract new students if the facilities are not kept up. Ms. Henry urged favorable consideration of the number proposed by the Governor.  6:18:30 PM Vice-Chair Requested additional comments on Stoltze funding requests for the sport complex.  6:19:04 PM Ms. Henry Clarified that the sports center was not considered a priority at present time; instead, the science building at University of Alaska-Fairbanks (UAF) is the highest priority. She maintained that academics are easier to sell potential students. The Board has not taken a position on the sports facility and reiterated that the University's number one priority is the Biological Sciences building.  6:20:12 PM Representative Inquired regarding requested funding Thomas for the $45 million dollar research vessel. Co-Chair Meyer noted those were federal funds.  6:21:41 PM KATHY MORGAN, Testified in support of funding for the TOK COMMUNITY Upper Tanana Valley Renewable Energy UMBRELLA Initiative capital improvement project. CORPORATION She indicated concerns for fire safety protection in that community, which would be addressed by removing the fuel. The funding would provide for equipment and materials for removing fuel and then using it to heat public buildings. She summarized that funding the incremental request would essentially save the State money.  6:23:32 PM Co-Chair Asked if the request had moved through Chenault a public meeting process in Tok. Ms. Morgan replied there have been meetings throughout the area, including Tok.  6:24:25 PM Co-Chair Questioned if Ms. Morgan had Chenault discussions with any environmental  groups regarding cutting down trees for the project. Ms. Morgan responded, there are no organized environmental groups in that area. The trees need to be cut as they are creating a danger and are past maturity.  6:25:38 PM Co-Chair Mentioned the difficulties in his Chenault community for initiating such projects unless endorsed by environmental groups.  6:26:35 PM JEFF HERMANS, Testified in support of Upper Tanana DIVISION OF Valley Renewable Energy Initiative. He FORESTRY, noted his experience in the field. He DEPARTMENT OF explained that wildfires threaten Tok NATURAL and the seven surrounding villages and RESOURCES, communities. Those fires create a ANCHORAGE great cost to the State of Alaska and its residents. Mr. Hermans said that the State of Alaska has spent over $50 million dollars in the last 25 years on fire suppression, which does not include costs to the federal government. He reiterated the importance of supporting the Upper Tanana Valley Renewable Energy Initiative for safety reasons as well as creating a cost savings for the State.  6:29:37 PM DOUG PENN, Requested funds to address the critical AREA-WIDE roof repair needs at the Whittier PRINCIPLE, Community School. The roof is at a CHUGIAK SCHOOL place of continued deterioration due to DISTRICT, the harsh winter conditions and the CHUGIAK snow load. Now, it has become a safety hazard to both the structural integrity of the facility and the students. The project was submitted to the Department of Education and Early Development for the past several years. If the roof is not repaired soon, the fear is that much greater damage will occur to the building structure. He requested that the budget be approved with the Whittier roof renovation project included.  6:31:05 PM Representative Inquired the ranking position for the Hawker project on the Department of Education and Early Development priority list. Mr. Penn responded that it is currently listed as #3 on that list.  6:31:46 PM JASON Pointed out that the Interior GAZEWOOD, delegation has requested approximately LAWYER, BOARD $150 thousand dollars for emergency  MEMBER FOR funds from the Capital budget for the FAIRBANKS Fairbanks Counseling Agency. COUNSELING He noted the organization provides ADOPTION, services to the community in FAIRBANKS determining ways to bring families together through adoption services; counseling services are also offered. Ultimately, the organization assists the State. He highlighted the amount of federal dollars, which had been lost to the project.  6:34:18 PM MICHELLE Testified in support for a new facility DEWITT, construction request in the amount of DIRECTOR, $1.5 million dollars. Currently, the TANANA WOMEN'S Center has roof damage, which has COALITION created a dangerous situation in (TWC), BETHEL Bethel. She urged legislative support for the funding.  6:35:27 PM DAVE TRANTHAM, Testified in support of funding dollars SELF, BETHEL to address the fire station roof, which now has structural damage resulting from the leakage.  6:36:32 PM ED ZASTROW, Addressed the lack of senior housing. ALASKA He urged greater State support for COMMISSION ON funding to the Alaska Housing Finance AGING, Corporation (AHFC), an agency that can PRESIDENT OF help address statewide needs. THE LOCAL AARP He directed additional comments to high CHAPTER, energy costs for fuel paid by the KETCHIKAN senior population. Mr. Zastrow made a plea that some sort of energy assistance grants be provided for the State's seniors.  6:39:39 PM BOB WEINSTEIN, Encouraged support for the House MAYOR, CITY OF Finance Committee to look at local KETCHIKAN infrastructure needs. Due to the high price of fuel, it has become more important to enhance the capital budget for addressing local needs.  6:41:45 PM AT EASE  6:56:34 PM RECONVENE  6:56:37 PM Co-Chair Meyer Noted that there would be further opportunities for public testimony taken on the capital budget later in the week.   ADJOURNMENT  The meeting was adjourned at 6:58 P.M.