MINUTES SENATE FINANCE COMMITTEE April 24, 1995 2:10 p.m. TAPES SFC-95, #53, Side 1 (000-end) SFC-95, #53, Side 2 (575-end) SFC-95, #55, Side 1 (000-end) SFC-95, #55, Side 2 (575-end) CALL TO ORDER Senator Rick Halford, Co-chairman, convened the meeting at approximately 2:10 p.m. PRESENT In addition to Co-chairman Halford, Senators Phillips, Rieger, Sharp, and Zharoff were present. Co-chairman Frank and Senator Donley arrived soon after the meeting began. ALSO ATTENDING: Nancy Slagle, Director of Budget Review, Office of Management and Budget; Ken Bischoff, Director, Division of Administrative Services, Dept. of Public Safety; Bob Stalnaker, Director, Division of Retirement and Benefits, Dept. of Administration; Mark Badger, Director, Division of Information Services, Dept. of Administration; Douglas Samimi-Moore, Executive Director, Public Broadcasting Commission, Dept. of Administration; Peter Bushre, Chief Financial Officer, Alaska Permanent Fund Corporation; Karen Rehfeld, Director, Administrative Services, Dept. of Education; Karen Crane, Director, Libraries, Archives, and Museums, Dept. of Education; John Steinman, Architect, Dept. of Education; Janet Clarke, Director, Division of Administrative Services, Dept. of Health and Social Services; Guy Bell, Director, Division of Administrative Services, Dept. of Commerce and Economic Development; Jeff Morrison, Director, Administrative and Support Services, Dept. of Military & Veterans Affairs; Nico Bus, Acting Director, Division of Support Services; Dept. of Natural Resources; Kevin Brooks, Director, Division of Administrative Services; Dept. of Fish and Game; Janet Kowalski, Acting Director of Planning, Dept. of Transportation and Public Facilities; Greg Capito, Section Chief, Village Safe Water Program, Dept. of Environmental Conservation; Mike Burns, Section Chief, Municipal Grants, Dept. of Environmental Conservation; Lynn Kent, Acting Director, Government Preparedness and Response Program, Dept. of Environmental Conservation; Remond Henderson, Director, Division of Administrative Services, Dept. of Community and Regional Affairs; Bob Cole, Director, Division of Administrative Services, Dept. of Corrections; Wendy Redman, Vice President for University Relations, University of Alaska; Art Snowden, Administrative Director, Alaska Court System; Mike Greany, Director, Legislative Finance Division; and aides to committee members and other members of the legislature. SUMMARY INFORMATION SB 136 - APPROP: FY 96 CAPITAL PROJECTS BUDGET An overview of the Governor's capital budget was presented by Nancy Slagle. Discussion was had with department representatives listed above. The bill was held in committee for further review. SENATE BILL NO. 136 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. HOUSE BILL NO. 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. [Committee discussion focused on SB 136. HB 268 is cross referenced since it ultimately included capital, reappropriation, supplemental and school funding.] Upon convening the meeting, Co-chairman Halford announced that staff from the Office of Management and Budget would provide an overview of the capital budget. NANCY SLAGLE, Director of Budget Review, Office of Management and Budget, came before committee. Prior to commencing her review, she distributed handouts (copies are appended to these minutes) relating to telecommunication requests and a summary of capital projects relating to the criminal justice system. She then commenced the following sectional review: Sec. 1 provides for the administration to come before the Legislative Budget and Audit Committee for additional general fund program receipts or other funding for approval of projects under AS 37.07.080(h). In response to a question from Senator Randy Phillips, Mrs. Slagle acknowledged that language within Sec. 1 has not always been incorporated within the budget. It merely clarifies the fact that the administration has the ability to "come forward . . . for those additional program receipts." Secs. 2 and 3 provide $20 million from the general fund to the matching grant fund. The back portion of the bill then appropriates that funding to communities for specific projects. Mrs. Slagle noted that projects in the back section may not equal the $20 million since interest may be included. Balances for individual communities might also include moneys appropriated from prior years. Secs. 4 and 5 deal specifically with appropriation of interest accrued on allocations for matching grant communities and make that available to individual accounts. Secs. 6 and 7 deal with review by the Dept. of Transportation and Public Facilities to determine expected balances in highways and aviation for uncommitted match moneys. Language is the same as last year whereby funds were readjusted to match federal dollars. The department expects $1.5 million in highway funds and $600.0 in aviation moneys that may be used toward the federal match. Discussion followed between Mrs. Slagle and Senator Phillips regarding use of planning moneys to fund radio spots against the use of studded tires. Sec. 8 contains a $1 million appropriation for Alaska Marine Highway System improvements and overhaul. Moneys stem from the vessel replacement fund. The appropriation is needed for upkeep and repairs to keep the system operational. An additional $3 million from the general fund is contained in the back section of the budget to assist in this maintenance effort. Sec. 9 provides funding for criminal justice information systems, portions of which are located in five departments. Mrs. Slagle referenced work by the Criminal Justice Information System working group and the subsequent report. Part of the report focuses on need for communication capability between departments transmitting information back and forth. KEN BISCHOFF, Director, Division of Administrative Services, Dept. of Public Safety, came before committee to speak to computer hardware and software needs within the five departments. He explained that the Dept. of Public Safety is requesting funds to repair the data center for the fingerprint system and to plan for system replacement. The present system was declared obsolete several years ago. He then followed with brief comments on computer needs within the remaining departments. Sec. 10 appropriates $100.0 from the general fund to the state land reforestation fund within the Dept. of Natural Resources. The state may place 25% of timber sale and stumpage revenues into reforestation. Only $600.0 has been paid in the past, although the state has benefited from over $5 million in revenues from timber. Mrs. Slagle added that the appropriation represents a continuation of what "had been approved in RPLs by LB&A, this year." Sec. 11 repeals the appropriation for the Mt. Roberts Marina and reappropriates $1.8 million for the a new University of Alaska, Southeast, residence hall. Moneys will be matched with student fees. An additional $600.0 will flow to the Dept. of Environmental Conservation for a Back Loop water and sewer project, a portion of which is connected to the proposed residence hall at UAS. Approximately $400.0 will flow to the statewide satellite communications project within the Dept. of Administration. This appropriation, plus $300.0 in general funds in the back portion, will match $700.0 in private donations, plus $1.4 million in federal funds, to purchase and install encoder and decoder equipment to convert signals from analog to digital. Sec. 12 contains repeal of the $9 million, plus interest, for railroad cars for the Wishbone Hill project. The total is approximately $11,538.0 as of the end of March. Senator Sharp questioned the inconsistency between Secs. 11 and 12. The $3 million funded for the harbor was not discretionary capital, but it appears to be used in that manner in this budget. The $9 million for Wishbone Hill came from the railbelt energy fund. It appears as though it is returning to the general fund. Mrs. Slagle advised that the appropriation originally flowed from the general fund to the railbelt energy fund. She concurred that the capital budget proposes to return it to the general fund. Senator Phillips also noted the inconsistency. He then suggested that Secs. 11 and 12 would be more appropriate to a reappropriation bill. Mrs. Slagle suggested that the capital budget could include both capital and reappropriation items. In response to a question from Senator Rieger concerning why Sec. 11 contains a reappropriation while Sec. 12 contains a repeal, Mrs. Slagle advised that both Wishbone Hill and Mt. Roberts Marina were projects requested by the Governor. The Governor wishes a majority of the Mt. Roberts funding to "stay in this area." Directing attention to the back section of the budget, Mrs. Slagle spoke to the follow projects: Office of the Governor The $1 million for the Americans with Disabilities Act reflects funds used to deal with access problems in state facilities. Over the last two years, the state has appropriated $2 million to this continuing effort to bring state facilities within ADA compliance. In response to a question from Senator Phillips, Mrs. Slagle advised that the foregoing reflects an unfunded mandate by the federal government. Dept. of Administration The $364.0 for personnel records automation would provide hardware and software to store applications for electronic routing. The $325.0 for overhaul of the state personnel management system will cover consulting services to review the system and report findings. When Governor Knowles took office, he requested statewide input on areas of concern. The personnel system was the "big winner" in terms of problems. The $1,446.0 for statewide information services equipment replacement reflects other funds from the internal service fund. It provides for replacement or refurbishment of critical equipment. The fund consists of money paid by different state agencies in chargebacks. A portion of chargeback moneys is used to support and replace equipment. The $457.5 for the statewide consolidated data network will provide for purchase and installation of office routers and converters to 22 state offices and communities. It will enable agency communication in local and wide-area networks. The $997.0 in other funds for retirement and benefits electronic imaging and automation reflects retirement funds. Moneys will cover consulting services, equipment purchase and installation, and software for retirement and benefit records. Senator Rieger noted previous purchase of scanners for other departments and asked if they could be utilized for this effort as well. BOB STALNAKER, Director, Division of Retirement and Benefits, Dept. of Administration, came before committee. He attested to present updatable microfiche storage of over 100,000 retirement accounts. Service for the present AB Dick system will cease the beginning of 1997. Optical scanning is more efficient. Further discussion of use of optical scanning followed. Mr. Stalnaker advised that the number of documents processed each day would more than cover full-time use of a scanner. Further, software application will be unique to the retirement system. Predominant users of the system will be over 200 different employers. The $2.4 million for the statewide satellite communication project reflects remaining moneys needed to provide digitization. MARK BADGER, Director, Division of Information Services, Dept. of Administration, explained that the change to digitization would create economies on the RATNET system and lower the cost to the transponder, in the future. "It would take it from approximately $1 million down to a quarter of a million dollars, in rough terms." This phase of the project would extend digitization to RATNET and include one of the public stations. In response to a question from Co-chairman Halford, Mrs. Slagle explained that a total of $700.0 (the $300.0 in the back section and $400.0 in the front section) in general funds is needed to match $700.0 in private contributions plus $1.4 million in federal grant moneys. Discussion followed regarding ownership of the digitized signal. Mrs. Slagle advised that the $140.0 for the KOAHNIC Broadcasting Matching Grant would provide transmission and studio facilities for the first Native American radio station in the United States. Funding would be matched with over $50.0 of private contributions plus $236.0 in federal funds. DOUGLAS SAMIMI-MOORE, Executive Director, Public Broadcasting Commission, Dept. of Administration, came before committee in response to questions from members. He acknowledged that the station could compete for public broadcasting commission grants along with other stations within the state. Mrs. Slagle stressed that the proposed grant is for facilities rather than operating costs. Mr. Moore concurred. Discussion of capital and operating grants made by the commission followed. Senator Donley asked why an exclusive grant should be made for this particular purpose. Mrs. Slagle said that past capital budgets have included requests for "other broadcasting stations." The Governor feels that the proposed Native station would fulfill a need for other types of public affairs information. Dept. of Law Mrs. Slagle noted that, as a result of a recent court decision, the $665.0 set forth for federal litigation/endangered species act should be amended to $1,091.0. The appropriation deals with federal and state disputes. Senator Sharp suggested the request appears strange for inclusion in the capital budget. Mrs. Slagle advised of inclusion the last few years because funding involves projects rather than continuing operating costs. Backup information speaks to the different areas of litigation involved. The $200.0 for computer replacement would cover 71 obsolete personal computers. Approximately $95.8 would apply to prosecution and $104.2 to legal services. Dept. of Revenue Mrs. Slagle referenced Alaska Housing Finance Corporation projects totaling $76 million. Co-chairman Halford announced that the committee would review individual AHFC projects with the executive director at a subsequent meeting. End: SFC-95, #53, Side 1 Begin: SFC-95, #53, Side 2 Mrs. Slagle asked that the $117.3 for the permanent fund dividend division integrated voice response system be deleted from the capital budget. The $519.4 for the Alaska Permanent fund Corporation investment system upgrade would purchase hardware, software, and programming services to replace personal computers and provide a client/server platform. Advantages include real time data, consolidation of separate and partially redundant data feeds, use of analytical software for private investment managers, etc. The entire cost of the project can be recovered through improvements in annual investment performance. PETER BUSHRE, Chief Financial Officer, Alaska Permanent Fund Corporation, Dept. of Revenue, came before committee in response to questions from members. He explained that money for the project would come from permanent fund earnings. Senator Rieger requested greater detail on hardware and software to be provided. Mr. Bushre agreed to provide the information. Dept. of Education The $214.9 for Mt. Edgecumbe Boarding School renovations and equipment will address health and safety needs at the school and provide improvements to bath and shower facilities. It will also replace single pane dormitory windows that are over 40 years old. The $383.0 for the statewide library electronic doorway access (SLED) will provide public access to government information. SLED is a statewide network that connects libraries and individuals to the libraries. It will support telecommunication costs, hardware and software upgrades, and Internet charges. KAREN CRANE, Director, Division of Libraries, Archives, and Museums, Dept. of Education, explained that while the request is from the state library, it would provide access to the general public. Statistics for the last month of service evidence 42,000 connections. SLED was funded as a one-year demonstration project with federal library services and Construction Act Title III funds. The $140.0 for public library construction grants reflects annual grants from the federal government made available to the state to disperse to libraries. Local libraries must match federal pass through at a 45/55, federal/local match. There is no state match requirement. The $1.4 million in corporate receipts for postsecondary education commission loan servicing system enhancements would continue a $250.0 effort approved by the Legislative Budget and Audit Committee. Enhancements will result in operational savings and increased productivity. Funding is based on recommendations from the Peat, Marwick study. Mrs. Slagle explained that the next seven projects reflect the school maintenance grant program. Cites include Golovin, White Mountain, Elim, North Slope Borough District- wide Fuel Tank Upgrade, Teller, and Klawock. The approximate $14 million deals with major maintenance issues. It does not take into account new construction. Senator Sharp asked if the state normally passes this type of funding to organized boroughs. He noted that with the exception of the North Slope Borough project, all others appear to apply to REAAs. Mrs. Slagle noted that the North Slope Borough School District is seeking reimbursement for tank upgrade. The district is allowed to request reimbursement under this program for up to three years. In response to further questions, Mrs. Slagle advised that funding was provided based on the Dept. of Education priority list. JOHN STEINMAN, Architect, Dept. of Education, came before committee. He advised of 169 projects for which grants were requested. An evaluation process ranks requests. The North Slope project was fourth on the maintenance list. Senator Sharp advised of his understanding that department prioritization takes into account ability to pay. He then asked how that would come into play in the instance of the North Slope Borough School District. He remarked that inclusion of the district caused him to doubt the reliability of the prioritization process. Mr. Steinman explained that the North Slope Borough requested $12 million for upgrade of the bulk fuel tanks at the school. The appropriation recommended by the Governor is $1 million. Mrs. Slagle advised that she would provide additional information concerning how priorities are established. Senator Donley expressed displeasure over failure of the department to classify those attending school in portable classrooms in Anchorage as unhoused students. Dept. of Health and Social Services The $490.0 for the adoption and foster care analysis reporting system is the state's general fund share to match $1,470.0 in federal moneys. Funding would cover the second year of a two-year project to upgrade the present system to include new mandatory data elements required by the federal government. Senator Rieger asked if the state could count on the match ratio from the federal government. Mrs. Slagle voiced her understanding that funding is set through the end of the federal fiscal year. The percentage of match varies by program, but funds have been identified as available for Alaska. The $1.5 million for statewide renovation, repair and equipment would combine with $299.7 in federal moneys to be used at the state's 33 health and social services facilities and specialized lease facilities. This request represents approximately one-half of what is needed, based on the age and condition of the facilities. JANET CLARKE, Director, Division of Administrative Services, Dept. of Health and Social Services, came before committee to respond to questions from members. She said that it is unlikely the state will be able to garner the entire $299.7, unless something changes. The federal government is not generous with funds for capital matching purposes. While the state can acquire federal funds for public health centers, public assistance, and medical assistance, the bulk of Alaska's facilities and family/youth services do not qualify for federal matching funds. Much depends upon the project. The foregoing reflects an estimate of what might be forthcoming. Discussion of the ratio of state to federal dollars followed. In response to a question from Senator Phillips, Ms. Clarke said that the department oversees maintenance and operations of its twenty-four-hour facilities. For major renovation or new construction, the Dept. of Transportation and Public Facilities becomes involved. The $250.0 for the Alaska family practice residency program renovation and equipment will allow for a collaborative clinic to serve the medically underserved in Anchorage and provide a residency training program for eight residents in rural Alaska. Agencies involved include Providence Hospital, Anchorage Neighborhood Health Clinic, UAA, local physicians, Y-K Health Corporation, Bartlett Memorial Hospital, and the University of Washington. The project will renovate an existing building donated by Providence Hospital. Senator Zharoff spoke in support of need to balance educational and health care needs statewide. He referenced earlier comments regarding the prioritization process within the Dept. of Education and noted that educational needs are greater in rural Alaska while health care concerns may be greater in urban locations. There is thus a balance overall. The $500.0 for the Yukon-Kuskokwim public health facility design would fund design of a combined facility for state public health nurses in Bethel and the Yukon-Kuskokwim Health Corporation. The facility would serve 23 nurses and consolidate Y-K services now in eight different locations. Combination will save approximately $2 million in construction costs and be 10 to 15% less costly to maintain. Of the $400.0 for departmentwide computer aided productivity improvements, $200.0 is general fund and $200.0 is federal. This request is similar to need within the Dept. of Law to replace "dying computers." Senator Rieger requested a listing of what the funding would purchase. The $807.0 for Medicaid management information system procurement is the general fund portion of a $8,069,600 project, 90% of which is federal funded. The present Medicaid management system is a privatized system. All services are provided under contract with a firm in Virginia. There is no state mainframe support. The federal government requires that states reprocure their systems every eight years. Alaska has receive two extensions. Senator Rieger voiced his understanding that the state would reprocure using a private vendor. Mrs. Slagle responded affirmatively, advising of her understanding that the department has been satisfied with the arrangement. The problem is ability to get additional information from the system regarding where funds have been expended. The reporting portion of the system needs improvement. The claims processing portion is adequate. Ms. Clarke added that while the main computer is in Virginia, the firm has an operation in Anchorage for processing claims and providing information to providers. The requested $807.0 is the direct match needed to capture the federal funds. Ms. Clarke referenced the department's family/youth services adoption system and the Medicaid system. She noted an opportunity to get enhanced federal funding for the projects and voiced concern that Congressional changes and block Medicaid grants to the state will not provide "that kind of enhanced funding." The $382.0 for the eligibility information system would provide for an enhancement/electronic benefit transfer feasibility study. The project totals $1,050,000. The majority, $668.0, is federal. The remainder is general funds. The request would fund eight employees and a study to determine whether electronic benefits can be used in Alaska for food stamp and women, infants, and children programs. Use of the electronic system would alleviate fraud. Dept. of Commerce and Economic Development The $400.0 for economic development matching grants is an annual request. It provides state funds to nonprofit corporations, cities, boroughs, and other eligible applicants to assist in matching economic development project grants. The primary purpose is either construction of an economic development facility or technical assistance in support of an economic development activity. Senator Phillips asked if science and technology funds could be used instead. GUY BELL, Director, Administrative Services, Dept. of Commerce and Economic Development, explained that the funds are not related to development of new technology and may not fit within statutory authority of the science and technology foundation. These projects relate to port development, fishery development, etc. Senator Donley asked if funding could be used to replace reductions in ARDORS. Mr Bell said that was not the intent of the request. He acknowledged that grants could be used to match economic development projects. The primary intent is that funds be used toward capital project development. Moneys have been, in the past, used for "some operating types of entities." Mr. Bell cited conferences and feasibility studies as an example. The $436.0 for Alaska small business assistance and development provides funding for the University of Alaska small business development center and procurement and technical assistance center. The small business center at the University is a cooperative venture of the U.S. Small Business Administration, the University, and the state division of economic development. The emphasis is on counseling for small businesses. The purpose of the procurement technical assistance center is to stimulate competition for Department of Defense and other federal contracts by assisting businesses in entering the contracting market. In response to a question from Senator Sharp, Mr. Bell said that funding is passed directly to the University which administers both programs. State funding matches equivalent amounts of federal moneys used for the same purpose. Senator Sharp asked for a list of last year's recipients of the funding. Mr. Bell noted that capital backup material contains information for the past two years. The $350.0 in general fund program receipts for data processing system enhancement, phase II, is the second and final phase of a multi-year project to replace the Wang computer system with new data base hardware and software. Agencies involved are banking, securities, and corporations; insurance; and occupational licensing. Dept. of Military and Veterans Affairs The $500.0 for deferred maintenance statewide is a small portion of deferred costs needed to deal with repairs in state facilities in Anchorage, Juneau, Wasilla, Kenai, etc. The $500.0 in general funds and $6,380,000 in federal moneys total $6,880,000 for design and construction of a new army aviation operating hangar in Bethel. The hangar will accommodate new aircraft assigned to the Bethel area. The existing hanger lacks sufficient space to house the aircraft. Senator Donley asked if it would become a state responsibility to maintain the new hangar. Mrs. Slagle responded affirmatively. JEFF MORRISON, Director, Administrative and Support Services, Dept. of Military and Veterans Affairs, advised that there will be no net increase in operating costs. Although the facility will be larger, it will be designed and constructed to be more energy efficient. The old facility will be surplused. Dept. of Natural Resources The $300.0 for childs pad contaminated site assessment and remediation would flow from the oil and hazardous response fund. It would fund continuing cleanup of this site in the Prudhoe Bay oil field complex. The site was abandoned by the former lessee with a structure and debris left on site. Legal proceedings to recover the cost of cleanup have not been possible due to the bankruptcy of the lessee. In response to a subsequent question from Senator Sharp regarding total cleanup costs, Mrs. Slagle advised of a $300.0 authorization in "92" and $290.0 in "93." The $250.0 for forward Alaska pad contaminated site assessment and remediation also flows from the oil and hazardous response fund. This site is within the Prudhoe Bay oil field, Deadhorse lease tracts 75 and 76. It is similar to the above cleanup at childs pad. Legal proceedings are in pursuit of the lessee. Cleanup must commence to prevent pollution of the adjacent Deadhorse water reservoir. The $538.0 for the mental health trust lands reconstitution implementation project funds the first of two final steps of implementation of mental health trust lands reconstitution. Approximately 4,700 parcels of land identified on the April, 1994, land list have been designated as mental health lands. Funding will provide staff to continue title research and convey parcels. The $100.0 for reforestation site preparation and replanting is the $100.0 set forth in the front section of the budget. This appropriation takes the $100.0 from the fund and provides it to the department for this activity. The $300.0 for phase V of the land status geographic information system would continue funding to automate the state's graphic land record. The state currently maintains over 16,000 maps and manually automated formats. This project completes conversion of manual maps and reduces need to maintain the two systems. The $125.0 for real estate recordings, preservation, and replacement would provide for critical preservation of historical documents. End: SFC-95, #53, Side 2 Begin: SFC-95, #55, Side 1 NICO BUS, Acting Director, Division of Support Services, Dept. of Natural Resources, explained that most of the records are so old they must be handled carefully. They cannot go through an imaging process. The proposed project allows for the first phase of photographic preservation. Many of the records are handwritten and difficult to read when xeroxed. Once the records have been filmed, the originals will be placed in environmentally controlled archives. The $100.0 for the oil and gas basin analysis and assessment program will implement the terms of the recently negotiated North Slope settlement agreement. The new system will replace inadequate accounting controls. Efficiencies from automation will provide more timely transfer of royalty distributions, including allocations to the permanent fund, and improve state ability to provide independent royalty determinations. Of the $325.9 for the forest health initiative, $100.0 represents general funds. The remainder is comprised of federal moneys. Funding would provide for a two-year program to survey spruce bark beetle invested areas. The $100.0 for forest inventory and mapping will fund phase III of the Tanana Valley forest inventory by ground level sampling of 115 plots. The inventory will be used in conjunction with aerial mapping information to develop data that will support sustained-yield management. Of the $300.0 for stream gaging network and collection of streamflow data, half is general and half is federal funds. Data will provide accurate information needed for design criteria for roads, highways, bridges, dams, hydroelectric projects, mining projects, etc. Matching funding will allow the first of a six-year project to go forward. The $640.0 federal allocation for national historic preservation fund federal grants will provide 60/40 matching grants to state and local governments for planning, surveying of archeological sites, and maintenance of historic sites. In response to a question from Senator Phillips regarding how projects are selected, NICO BUS explained that communities and projects apply. Review is then conducted by the historical commission and the land conservation board. Federal funds totaling $500.0 for land and water conservation fund federal grants will provide for 50/50 grants to state and local communities for planning, acquisition, and development of outdoor recreational facilities. Discussion followed regarding the difference between land and water conservation grants and funding relating to stream gaging and collection of streamflow data. The $150.0 for the oil and gas royalty accounting, software and mainframe interface would connect the oil and gas royalty accounting system with the mainframe. It will allow for exchange of information between DNR's land administration system, revenue billing system, and oil and gas accounting system. It will aid in providing more efficient auditing and collection of oil and gas royalties. The $100.0 for the geophysical/geological mineral inventory reflects the fifth year of an eight-year project to identify and delineate mineral zones with major economic value on state lands. The $100.0 for oil and gas lease sales best interest findings will allow the division to contract for private consultants to write major portions of required best interest findings for areas subject to exploration leasing. These tracts will be far from known areas of oil and gas reserves. The $200.0 for repair and expansion of park recreation and tourism facilities will improve "a few" park facilities that have deteriorated due to years of deferred maintenance. Mrs. Slagle presented a brief listing of impacted parks. Dept. of Fish and Game The $4 million for the sport fish and wildlife conservation facility addition at Fairbanks reflects 50/50 fish and game funds and federal receipts. It would provide for new construction and renovation of a 10,000-square-foot addition to an existing building housing department staff at the Fairbanks regional office located at the migratory waterfowl refuge. A public service interpretative center, office space for 20 employees, and renovation of existing offices (to allow subsistence employees now in leased space to move back in) will be included in the cost. The $500.0 in general funds to replace and enhance salmon escapement sonar systems relates to silt-laden rivers where visual counting cannot be done. Current sonar systems date from the 1970s and are no longer made. Mrs. Slagle presented a brief listing of rivers scheduled to receive the new equipment. Two full-time positions will be needed to install the new systems, train existing staff, and document the accuracy of each installation. The $475.0 for Rabbit Creek Rifle Range improvements consists of $356.0 in federal moneys and $119.0 in fish and game funds. Phase I will pave a section of the parking lot, pave a lane from the shooting benches to the restrooms, build benches and shooting lanes for handicapped shooters, build a warm up and break room, build and improve restrooms, etc. Discussion followed regarding operating costs of the rifle range. Mrs. Slagle advised that a majority of the funding would construct a classroom to accommodate approxi- mately 40 people. The $806.0 for statewide facility maintenance and repair projects reflects deferred maintenance on offices, bunk houses, warehouses, cabins, and other structures used by the department. The department has facilities in 40 locations statewide. The $400.0 for the Snettisham Hatchery transfer allows for transfer to a local regional nonprofit aquaculture association and provides support for the first year of operation. In response to a question from Senator Zharoff, KEVIN BROOKS, Director, Division of Administrative Services, Dept. of Fish and Game, explained that the hatchery was deleted from the department budget in FY 95. The $300.0 for Klawock Fish Hatchery repairs and renovation is needed to safely operate the hatchery and meet OSHA standards. Mrs. Slagle presented a brief listing of needed repairs. The $194.0 for fisheries resource assessment vessel maintenance will provide general maintenance for vessels used in fisheries assessment programs. Mrs. Slagle provided a list of specific vessels. The $175.0 for Alaska Peninsula chum salmon stock assessment funds the third year of data gathering to provide information on the Western Gulf of Alaska fishery to identify and quantify chum salmon stocks. The $200.0 to identify salmon stocks at risk of endangered species act listings seeks to protect and rehabilitate stocks before the state is force by the courts to "take economically disruptive actions." It supports the regular fishery by funding support needed to respond to litigation on risks from inappropriate application of the endangered species act. Discussion of application of the endangered species act followed between Senator Rieger and Kevin Brooks. Senator Sharp asked if moneys could be used to fund personnel involved in North Pacific fisheries and international salmon forums, which were cut in the Senate operating budget. Mr. Brooks responded that the project involves biologists who conduct scientific analysis associated with the listing. It responds to a threat by federal and other interests to limit Alaska's catch. The $300.0 to assert and protect the state's right to manage and utilize resources is comprised of $100.0 in general funds and $200.0 from the fish and game fund. Funding will continue coordination efforts to protect state fish and wildlife management authority on state and private lands and waters. It will also provide support for the citizens' advisory committee dealing with the endangered species act and the Magnusson Act and advocate the state's position in national and international forums. Kevin Books added that the fish and game fund portion would be used to support the ANILCA effort. Senator Sharp voiced his understanding that use of fish and game fund moneys was restricted to sport hunting and fishing. He questioned whether they could properly be applied to ANILCA. The $150.0 for Bering Sea crab survey equipment purchase would survey king and tanner crab available for harvest in the Bering Sea. The population is currently assessed using the number of crab taken as a by-catch in the National Marine Fisheries survey on ground fish. Better data is needed to manage the fishery. Mr. Brooks explained that the project reflects the capital component of an operating budget initiative. It includes the purchase of pots with which to conduct the survey. He acknowledged that the operating portion was not included in the Senate budget. The $850.0 for Kenai River salmon habitat protection and restoration reflects federal funds for activities on one of the state's premier king salmon fishing rivers. Part of the $1 million from the National Marine Fisheries Service involves a collaborative effort with the Kenai Borough. The $1.6 million for public access development is comprised of $1.2 million in federal funds and $400.0 in fish and game funds to be used to construct boating access facilities statewide. Co-chairman Halford requested a list of proposed projects. Mr. Brooks agreed to provide the information. Dept. of Public Safety The $500.0 for fish and wildlife protection aircraft equipment/overhaul/repairs will replace worn out and obsolete equipment and effect overhaul and repairs, per the annual maintenance schedule, for 44 aircraft. Co-chairman Halford asked for a list of the aircraft. The $500.0 for fish and wildlife protection vessel repair/overhaul/equipment will apply to 4 major vessels and 12 other enforcement vessels over 32 feet long. The $400.0 for motor vehicle license plates/manuals/equipment reflects an annual appropriation for items needed at motor vehicle licensing and registration offices. The $250.0 for trooper replacement equipment will be used to replace radar equipment and portable radios beyond economical repair by Dept. of Administration. In response to a question from Senator Phillips, KEN BISCHOFF, Director, Division of Administrative Services, Dept. of Public Safety, came before committee. He explained that purchase would be arranged through the division of telecommunications within the Dept. of Administration. The $50.0 for the council on domestic violence and sexual assault computer info system will improve state access to domestic violence and sexual assault information by assessing data processing needs, redesigning forms and software, and improving quality control, timeliness, and access to demographic data collected from 21 programs. The $41.6 for civil air patrol Merril Field roof repair will replace a defective hangar roof at Merril Field. Co- chairman Halford voiced his understanding that the request was earlier made in the supplemental bill. Mrs. Slagle concurred. Senator Rieger acknowledged his recommendation that consideration be deferred to the capital budget since it would be cheaper to conduct reconstruction during the summer. The $45.0 for North Slope Borough Jail, improve emergency access, was also requested in the supplemental. Funding would install electronic locks to improve emergency exits in the event of fire. The Barrow jail is a wooden facility with cells on the second floor. Co-chairman Halford asked if the facility is a contract jail. Mrs. Slagle responded affirmatively, advising that capital funding for the jails is provided if it involves health and safety projects required to keep the facility open. The Barrow jail is of high concern to the fire marshal. Dept. of Transportation and Public Facilities Mrs. Slagle noted the large number of projects and asked if the committee wished to proceed through each one individually. She said she could provide information on the interrelationship between the twenty-year statewide transportation plan, the statutory six-year needs list, and the three-year state transportation improvement program. Federal projects listed in the capital budget are based on the state transportation improvement program (STIP). Senator Phillips inquired concerning the process used to select projects. JANET KOWALSKI, Acting Director of Planning, Dept. of Transportation and Public Facilities, came before committee. She pointed to federal surface transportation and aviation program projects (pages 15 through 30) totaling in excess of $26 million in general fund and state match. For those projects the state is seeking authorization to expend federal moneys. Actual general fund portions of the department capital budget are "fairly small" by comparison. Co-chairman Halford asked that department staff first speak to general funds. Directing attention to page 15, Ms. Kowalski said that of the $63.4 million in statewide programs, $37.2 is general fund. The remaining $26.2 million flows from the highway working capital fund and CIP receipts. The $500.0 for highways and aviation, non-routine maintenance and emergency repairs, reflects general fund moneys which are not matched for any federal project. The $250.0 for ports and harbors non-routine maintenance and emergency repairs is also general fund which does not match a federal project. The $750.0 for facilities energy and code upgrade, non- routine maintenance and emergency repairs, is also general fund. The $11.8 million for state equipment fleet replacement/refurbishment/capitalization program is from the highway working capital fund. The $4 million for deferred maintenance represents general funds that will be applied statewide to cover items for which federal moneys cannot be used. Restrictions on federal funds for maintenance are extensive. Only a small part of interstate maintenance is available to Alaska. Buildings and facilities are ineligible. The $1.5 million under cost allocation plans is CIP receipts. This is a program whereby the department captures funds for maintenance of the state equipment fleet. When the department allocates a portion of equipment time to a project, it charges the project, and returns CIP funds to maintenance of the equipment fleet. Ms. Kowalski reiterated that pure maintenance is not eligible for federal funds. Of the $940.0 in federal transit administration grants, only $20.0 is the general fund match for $920.0 in federal dollars. Ms. Kowalski agreed to provide a list of the small grants flowing to local governments and social service agencies for transit activities. The $250.0 in federal railroad assistance is federal money flowing primarily to the Alaska Railroad Corporation. The list of $26.1 million in general fund match for federal- aid highway projects commences on page 16 and continues through page 30. Ms. Kowalski referenced the initial $7.3 million in state match for federal-aid aviation projects and noted that the state has amended the request to $4.4 million, based on the notice of award of federal aviation discretionary moneys. The department seeks $4.4 million in general fund match and authority to spend $1.8 million from the international airport revenue fund. The $100.0 originally requested for the corps of engineers program has been amended to $1.2 million in general funds to capture corps of engineers programs for local port and harbor projects across the state. The $5 million for statewide emergency projects and the $5 million for statewide funding contingency are both general fund. Responding to an inquiry by Co-chairman Halford concerning the statewide funding contingency, Ms. Kowalski explained that it allows the department to fund projects for which it does not have immediate authorization or funding. As examples, she cited repair of bridges and roads washed out by rivers, dock collapses, flooding, etc. The department has never had excess moneys in the contingency fund at the end of the year. Responsibility for thousands and thousands of miles of runways and roads as well as numerous facilities consumes the funding. The $5 million does not go far. Ms. Kowalski agreed to provide information on expenditures from the fund for FY 94. Senator Rieger asked if the new Seward Highway construction would occur this year. Ms. Kowalski responded affirmatively, advising that $2.5 million for reconstruction is included in the 1995 federally approved statewide improvement program. End: SFC-95, #55, Side 1 Begin: SFC-95, #55, Side 2 Senator Phillips asked if the $6.5 million for Glenn Highway rehabilitation includes the Caribou Creek Bridge. Ms. Kowalski advised that it is not included at this time. The department has identified Caribou Creek as a high priority project, and the new commissioner has included it in the planning process. The project is not presently in the federally approved STIP. In order to consider it, the department must go through the federally required public participation process. That is what the department is proposing to do. In response to a question from Co-chairman Halford, Ms. Kowalski advised that allocation amounts shown for particular projects reflect federal moneys. The $26.1 million in general funds is shown as a lump-sum match. Addition of the state match to federal funds would increase project allocations by approximately 10%. Co-chairman Halford directed that review proceed to Non- Federal Surface Transportation and Aviation at page 30, line 15. Ms. Kowalski advised that funding consists of $3 million in general funds and $9.2 million in international airport revenue funds. The first project, Alaska Marine Highway System improvements/overhaul consumes the $3 million in general funds. Remaining projects are Anchorage and Fairbanks international airport projects. Funding flows from the international airport revenue fund. Senator Phillips asked what communities would be impacted by the marine highway project. Ms. Kowalski explained that funding relates to annual overhaul and improvements involving drydock services, engines, deck work, passenger services, and a couple of minor shore facility renovations (painting and roof repair). Ms. Kowalski next spoke to miscellaneous projects listed at page 32. She explained that the $500.0 for the Craig--South Cover Harbor transfer is general funds. Senator Phillips voiced his understanding that the state would provide the money for improvements, and the city would take over operation and maintenance. Ms. Kowalski said that the department is cautiously exploring that arrangement. The department is interested in local operation and maintenance of new facilities so there is no future burden on the general fund. The state must ensure that the community is prepared to take on proposed operation and maintenance. Directing attention to the $80.0 for Wrangell - Reid Street paving, Ms. Kowalski noted an amendment. Nancy Slagle referenced an amendment to change the project to a Dept. of Administration municipal grant. In response to a question concerning why the change was made, Ms. Kowalski explained that it is unusual for the department to request paving of 100% for a general fund project outside the normal federal program and public participation process. Ms. Kowalski advised that funding for the following projects flows from the 470 oil and hazardous spill fund: Tudor Road maintenance shop assessment $193.0 Soldotna maintenance shop excavation 137.0 Homer maintenance shop remediation 106.0 Fairbanks Int. Airport, south parking apron 85.0 Cold Bay airport assessment 122.0 All of the projects have some sort of oil or hazardous materials component. Dept. of Environmental Conservation Nancy Slagle noted that the list of village safe water grants is set forth on page 32 through page 34, line 8. The grants provide basic sanitation services for remote communities. The budget attempts to utilize state general fund dollars to leverage as much federal funding as possible. She cautioned that not all projects on the priority list may qualify for federal moneys. Sometimes it takes more general funds to access federal dollars because of the types of project involved. Backup materials identify general and federal fund matches. The first group of projects reflects engineering/feasibility studies which are not matched with federal funds. Referencing water, sewer, and solid waste grants set forth at page 34, Mrs. Slagle advised that most of the listed projects have associated federal funds. She specifically noted that the $711.3 for Toksook Bay water supply and septic tanks does not, nor does funding for Noatak, Perryville, Akutan, and St. Michael. Federal dollars are for wastewater systems. Wastewater is not involved in all of the projects. Senator Rieger raised a question regarding the $3.5 million for environmental protection agency Indian set aside grants (page 32, lines 19 and 20). Ms. Slagle advised that funding reflects federal dollars. Senator Rieger next inquired regarding the $933.5 for village safe water administration. Mrs. Slagle explained that general funds are used for administration of village safe water grants. GREGG CAPITO, Section Chief, Village Safe Water Program, Dept. of Environmental Conservation, came before committee in response to a question from Senator Phillips concerning the types of systems proposed for rural Alaska. Mr. Capito said that the department attempts to fit systems to individual communities. The Alaska Science and Technology Foundation is considering funding installation of Alascan units in the Northwest Arctic to test user acceptability and to "nail down installation and operational costs." Discussion of responsibility for maintenance of systems followed. Mrs. Slagle referenced the $16,559,300 in general fund municipal matching grants to provide sanitation services for incorporated communities. All funding is to satisfy federal mandates as well as basic infrastructure needs. All projects require a significant local match to ensure community commitment and long-term utilization of facilities. MIKE BURNS, Section Chief, Municipal Grants, Dept. of Environmental Conservation, came before committee. He explained that several of the projects match with the department loan fund program, the successor to the former Farmer's Home Loan Fund program and several other programs. The local portion may come from a number of sources. Co- chairman Halford asked for a list showing appropriations from municipal matching grant general funds, appropriations available from other sources, and total project costs. Mr. Burns agreed to provide the information. Senator Rieger asked if grants are provided per formula or prioritization process. Mr. Burns advised of prioritization and said that projects are listed in priority order. Mrs. Slagle explained that the $400.0 in general funds for the statewide fuel tank master plan would aid department response to storage tanks that threaten public health. It will allow the department, in conjunction with the bulk fuel storage tank cabinet-level task force, to develop a comprehensive statewide strategy for resolving Alaska's fuel storage tank problem. The project will include a survey of facilities and conditions of tanks; development of a data base of tank information; and recommended options for financing storage tank repairs, upgrades, and cleanup of existing contamination. The $500.0 in 470 funds for local hazardous substance release response packages would continue development of an array of response resources that can be accessed to mitigate spills in rural areas where equipment for containment, control, and cleanup is not readily available. The project will establish response packages in local communities and provide first aid response equipment. The packages will be inventoried, stored, accessed, and managed via local response agreements with local communities. Senator Rieger asked why the statewide fuel tank master plan was not funded from the 470 fund. LYNN KENT, Acting director, Government Preparedness and Response Program, Dept. of Environmental Conservation, explained that general funds were requested since many of the tanks are unregulated. The response fund is to be used for situations where a problem currently exists or there is an imminent and substantial threat of a problem. For many facilities, the department does not know whether or not a problem exists. Discussion followed regarding whether efforts legally fit under the definition of the 470 fund. The $1 million in 470 funds for coastal nearshore response cleanup equipment will continue the plan to establish four additional equipment packages. Locations have not yet been determined but may include Kodiak, Dutch Harbor, Bristol Bay, interior regions, or one location in Southeast. Ms. Kent added that these are continuations of demonstration projects relating to high speed response vessels, booms, and skimmers that use "local vessels of opportunity"--fishing vessels--for response. The $100.0 in 470 funds for response team equipment, maintenance, and supplies includes purchase of command center equipment for management of spills in remote areas, purchase of equipment used for response training, and to replace items in cases where no responsible party has been identified and state resources must be used. The $100.0 in 470 funds for fixed VHF repeater installation and maintenance consists of establishing communications in Southeast Alaska and to conduct an area survey to access and analyze the best methods for providing communication systems for North Slope oil production areas. Ms. Kent said that funding would expand what is presently in place for Prince William Sound, Cook Inlet, and Fairbanks. The project would also establish a system for Southeast and allow the department to assess the best method for establishing a communication system for North Slope oil production areas. Further discussion followed regarding equipment involved in the communication effort. Co-chairman Halford requested backup information on costs relating to installation and maintenance. Dept. of Community and Regional Affairs The $1 million from the 470 fund for bulk fuel system emergency repairs/upgrades would provide for design, repair, and upgrade of bulk fuel storage and handling in rural Alaska. The statewide need in this area is "over $200 million." The $529.2 for head start fire, health, safety, code compliance would provide equipment and repairs of facilities and computer equipment statewide. REMOND HENDERSON, Director of Administrative Services, Dept. of Community and Regional Affairs, came before committee. He acknowledged inclusion of a computer network totaling $200.0 for 19 sites. Funding would flow to Ruralcap. Co-chairman Halford requested a list of sites. The $125.0 for team Alaska, Arctic Winter Games, relates to the 1996 games hosted by Alaska. It would cover transportation, clothing, equipment, team dues, etc. The $100.0 for community profile maps would show land ownership boundaries, location of community facilities, businesses, utilities, roads, houses, and high flood water levels. It would be used by agencies to prevent construction of major capital projects on private land. Mr. Henderson said that funding would allow for update of existing data. The focus is on community profiles that have not been updated for a number of years. The $500.0 for rural power system upgrades represents grants and contracts for more efficient rural power systems. It is intended to reduce the operating costs of utilities and demand for power cost equalization. Mr. Henderson noted a commitment from communities for "some local match." The existing list of projects totals $49 million. Co-chairman Halford requested a copy of the list. The $1.4 million for utility improvements/small power projects reflects grants requiring a 25% match by utilities that participate in power cost equalization. Funding to flow from the power cost equalization fund is intended to reduce the cost of generating or transmitting power to customers. The $4 million for Southeast energy fund grants flows from four dam pool moneys. Mr. Henderson acknowledged litigation surrounding the fund. He explained that if there are no deposits from interest earnings, there will be no funds for the Southeast energy fund grant. Mrs. Slagle advised that if the funding is available, it will provide grants to utilities participating in power transmission between Swan Lake and Tyee Lake. Funding is for power projects and repayment of loans and bonds. Co-chairman Halford asked if there is a legal obligation to appropriate the $4 million to Southeast energy fund grants. Mr. Henderson advised that he did not believe there was a legal requirement. The law states that there has to be an appropriation. It is split 40/40/20, if funding is available. Discussion followed regarding prior-year payments. Mr. Henderson advised of $4.6 million in FY 94 and $4.2 in FY 95. All but $24.0 has been committed. The $7 million for community block grants is comprised of federal moneys for low income and homeless individuals. Mr. Henderson advised of two categories: 1. Community services block grant $ 3 million 2. Community development block grant $ 4 million Community services moneys flow to Ruralcap. The community development block grant is used for economic development projects, roads, construction of facilities, etc. It is combined with other moneys to fund the rural economic development initiative program. Co-chairman Halford requested lists of projects under utility improvement/small power projects, Southeast energy fund grants, and community block grants. Referencing the $50.0 for the Egegik organizational grant, Mrs. Slagle noted inclusion of $50.0 in supplemental funding for the first-year grant. The amount shown in the capital budget should be reduced from $50.0 to $25.0 to reflect second-year funding. Dept. of Corrections Of the $2,707,900 for statewide renewal/replacement, $2.5 million is federal funds and $207.9 is general funds. The project funds renewal, replacement, renovation, expansion of facilities, and operational equipment. In response to a question from Co-chairman Halford, Mrs. Slagle voiced her understanding that the $207.9 is not a required match for federal funds which are due the state without a match. BOB COLE, Director of Administrative Services, Dept. of Corrections, concurred that the $207.9 reflects an ongoing CIP allocation which allows the department to charge facilities management "off to CIP receipts." The $2.5 million represents reimbursement for historical capital work done and paid for by the state. These funds flow from the Federal Bureau of Prisons as the proportional federal share of past state general fund expenditures allocated to the care and keeping of federal prisoners. Senator Phillips asked for a list of improvements and the facilities to which they will be made. The $350.0 for the corrections facility master plan funds development of a comprehensive plan to address long-term problems; including growing inmate populations, facility upkeep and maintenance, public contracting, and demand. Moneys will be used to hire a research firm and/or a public agency to conduct a formal planning process. That process will include cost benefit analysis; public survey and recommendations; population trends; prisoner classification, placement, and custody; etc. Senator Phillips asked if it would address the women's aspect as well. Mr. Cole responded affirmatively. University of Alaska The $1.4 million for the Anchorage, digital communications network will partially extend the voice data and video communications network throughout the Anchorage campus via construction of a communications backbone. This phase of the project will provide approximately 640 stations to be linked to accommodate the library, business hub, engineering, science, and administrative buildings. End: SFC-95, #55, Side 2 [NOTE - The signal for end of tape did not sound. The remainder of the meeting is unrecorded. Minutes reflect transcription of shorthand notes.] The $3 million for the Natural Sciences Building at UAF will provide for scientific equipment and furnishings to complete the building. The $7 million in fire code compliance/deferred maintenance represents bid-ready maintenance for classroom and research buildings as well as planning money to get code compliance corrections and deferred maintenance projects ready for construction. The university has identified $157 million in deferred maintenance needs. Senator Phillips asked if the entire $7 million would be used at the Fairbanks campus. Mrs. Slagle responded that the majority of the funding would be used at that site. The $43.0 in 470 funds for cleanup of state-owned contaminated sites at the Palmer dump site is part of a statewide cleanup. Solid waste was disposed of at the site. Much of the material came from the University's experimental farm. WENDY REDMAN, Vice President for University Relations, University of Alaska, came before committee to speak to the $100.0 request for the virus free seed potato project. She referenced $3 million in annual potato production in Alaska and advised that the potato is the state's most important agricultural crop. Alaskan potatoes are virus free and suitable for export. Ms. Redman referenced the $5 billion dollar international seed potato market and need for virus free potatoes in Taiwan and China. Alaska is the only state authorized to export, and there is great potential for supply from the MatSu Valley. The $100.0 is one fourth of what was requested. Approximately $120.0 was provided, last year, to begin the project. Co-chairman Halford asked if the project would qualify for Alaska science and technology funding. Ms. Redman responded that it would not since it is merely a pilot project. Further, the science and technology fund does not fund basic research. Alaska Court System ART SNOWDEN, Administrative Director, Alaska Court System, came before committee to speak to the $2,890,000 for completion of the Anchorage Courthouse. He acknowledged past funding for the new building, commencing in 1991, but stressed that funding for installation of the security system, phone and data systems, and furniture cannot be deferred another year. The $4,250,000 for the Fairbanks Courthouse design is the second highest priority. Mr. Snowden noted that the building was constructed in the early 1960s and is in poor repair due to lack of maintenance. Funding will allow for cost benefit analysis regarding whether it would be better to renovate and add on to the existing facility or build a new building. Co-chairman Halford suggested that the requested $4,250,000 would appear to cover the cost of design rather than analysis. Mr. Snowden acknowledged that the project would produce bid documents. He further attested to inadequate wiring which is unable to accommodate electrical needs, as well as heating deficiencies. Co- chairman Halford reiterated that there should be a substantial difference between the cost of analysis versus design and bid documents. He requested additional information on what the $4.2 million "would buy." Mr. Snowden next spoke to the $750.0 request for computer enhancements for civil areas and advised that it would purchase the following: 100 personal computers $325,000 100 packages of software 54,500 75 lazer printers 105,750 75 terminals for courtroom 39,750 and hearing rooms software upgrades 45,000 kiosk software development 55,000 Total $625,000 He explained that many people come to the court system. Much time could be saved and necessary information provided if information could be put on an interactive kiosk. The remaining $125.0 would be used for 25 digital audio recorders to replace over ten-year-old equipment as it fails. Grants to Municipalities Mrs. Slagle first referenced the $302.0 for the Wrangell port and advised that the Governor feels it is important to provide assistance to the city because of the recent sawmill closure. Municipal Capital Matching Grants Nancy Slagle advised that the last portion of the capital budget contains capital matching grants to municipalities. Projects set forth in the budget were identified and designed by the municipalities. Listed project reflect distribution of the lump-sum amount appropriated in the front section of the budget. Base funding of $25.0 is provided to unincorporated communities while remaining funding is allocated based on population. Matching amounts are also population based. Mrs. Slagle advised of need for a 5% match if the population is under 1,000; a 15% match for populations from 1,000 to 5,000; and a 30% match when the population is over 5,000. Discussion followed between Co-chairman Halford and Mrs. Slagle regarding deadlines for submission of projects as well as the handling of individual community accounts. Mrs. Slagle noted that a community could allow its portion of the annual appropriation to build up over more than one year in order to fund a larger project. Senator Rieger voiced his understanding that the sliding scale does not provide a dollar-for-dollar increase as the community grows. Mrs. Slagle acknowledged that a statutory percentage of property tax and mill rate is involved. Senator Sharp voiced his understanding that only communities that have submitted proposals are listed in the capital budget at this time. Mrs. Slagle concurred. She further referenced an April 17, 1995, memo (copy on file in the SB 136 master file) and advised that it contains an amendment which appropriates moneys for communities that did not submit projects. Prior to concluding the meeting, Co-chairman Halford voiced strong interest in reducing the total capital budget amount while trying to maximize use of other funds. ADJOURNMENT The meeting was adjourned at approximately 5:30 p.m.