MINUTES SENATE FINANCE COMMITTEE May 5, 1999 6:28 PM TAPES SFC-99 # 124, Side A and Side B CALL TO ORDER Co-Chair John Torgerson convened the meeting at approximately 6:28 PM. PRESENT, Senator Sean Parnell, Senator John Torgerson, Senator Randy Phillips, Senator Gary Wilken, Senator Lyda Green, Senator Pete Kelly and Senator Al Adams were present when the meeting convened. Senator Loren Leman arrived shortly thereafter. Also Attending: Witnesses are listed in the minutes in the order they testified. SUMMARY INFORMATION SB 32-CAPITAL BUDGET APPROPRIATIONS The committee heard public testimony. SENATE BILL NO. 32 "An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date." Co-Chair John Torgerson announced there would be a three- minute time limit for testimony. He encouraged written testimony be faxed to his office. CAROL HEYMAN, Small Business Association, testified via teleconference from Anchorage. She spoke about the Small Business Development Program stressing its importance as referred in the Results Based Budgeting process. She noted that the SBDP was a tool for economic development. She detailed a history of the services and successes of the program. SEAN BROSNAHAN, Small Business Owner, testified via teleconference from Anchorage. He spoke in favor of funding for the Economic Development Grant program telling the committee it had assisted him with his business. PATRICK SHIFLEA, Executive Director, Alaska Community Development Corporation, testified via teleconference from Anchorage. He was concerned about funding for the Alaska Housing Finance Corporation. Specifically he felt cuts to the weatherization program would have a negative affect on the economy. LAURA RIDEOUT, City of Port Alexander, testified via teleconference from Port Alexander saying it was imperative that Port Alexander continues to receive funds from the Municipal Capital Matching Grant program. She spoke of the efforts the community had made to lessen its dependency on state funding. FRANCENE WILLIS, teleconference operator, from Angoon listed those present waiting to testify from Angoon. MAXINE THOMPSON, Mayor, City of Angoon, testified via teleconference from Angoon. She spoke of the need for funding for the Village Safe Water projects located in her community. MARLENE ZUBAFF (spelling of last name not provided), Executive Director, Tribal Government, Angoon Community Association, testified via teleconference from Angoon also in support of the Village Safe Water projects in Angoon. She also urged support for the Angoon airport and heavy equipment purchases. She referred to the "We the People" march held earlier in the day. Co-Chair John Torgerson requested written comments faxed to his office for distribution to committee members. RANDALL GAMBELL testified via teleconference from Angoon. He spoke of the need for adequate transportation facilities in the form of an improved airport. PETER DUNCAN, Employee, City of Angoon, testified via teleconference from Angoon. He detailed the equipment the city used and the need for replacements. He also spoke in favor of airport funding. PAULENE JIM testified via teleconference from Angoon about the Village Safe Water projects in the community and the need for the airport and heavy equipment. She also supported funding for the ferry hub. ROBERT DUNCAN, Employee, City of Angoon, testified via teleconference from Angoon. He talked about the poor condition of the heavy equipment. GIL LUCERO, resident of Angoon, testified via teleconference from Angoon. He added his support of the airport facility and the heavy equipment. He noted that the city employees often used their own equipment. RON RICKETTS, Executive Director, Fairbanks Industrial Development Corporation and Member, Alaska Miners Association testified via teleconference from Fairbanks in support of funding for the Airborne Geophysical and Geophysical Mineral Inventory project. He spoke of the advantages of hard rock mining in Alaska. He stressed that the project could not be done with the limited funds due to the high cost of helicopter operations. He asked that this program not be funded at the expense of other programs that would help create jobs for Alaskans. MARY NORDALE, Attorney in private practice, Past Commissioner of Department of Revenue, Member, long-range Financial Planning Commission, and Member, Alaska Mining Association, testified via teleconference from Fairbanks. She also supported the Airborne Geophysical and Geophysical Mineral Inventory project. She noted that this would create many jobs especially in rural areas. She then requested funding for the Land Status Geographic Information Systems project and shared the services it would provide. She noted that federal funding for this project would be lost if state funding was not provided. TOM BUDTZEN, Geologic Consultant and Chair, Fairbanks Branch, Alaska Mining Association, testified via teleconference from Fairbanks. He supported funding for mining projects as well. EARL BEISTLINE, Past President, Alaska Minerals Commission, testified via teleconference from Fairbanks. He quoted comments from a report of the Alaska Minerals Commission. The Legislature should invest at least 5 percent of what the industry invested over the next ten years. PAMELA HELD, President, Greater Fairbanks Chamber of Commerce, testified via teleconference from Fairbanks. She spoke of the need for state funding to supplement the municipal bonds for the Hutchinson Career Center. She told the committee about the vocational training services the center provided. She detailed the cooperative effort with the local government and the university on this project. Co-Chair John Torgerson called upon testifiers from Hoonah and Unalakleet. There was no response from either site. MARY JANE FATE, Member, Board of Regents, University of Alaska, Past Chair, Alaska Federation of Natives, Past CEO- President, [not audible]-Yukon Corporation, a for-profit corporation for the Village of Rampart, testified via teleconference from Fairbanks. She urged funding for deferred maintenance projects for university facilities statewide. In particular, she noted the needs of the Hutchinson Career Center and the University Museum. FRANK WILLIAMS, Vice-Chancellor, University of Alaska, Fairbanks and Director, Arctic Region Supercomputing Center, testified via teleconference from Fairbanks. He also supported funding for the university deferred maintenance projects. He began speaking of the statewide benefits of the Hutchinson Career Center. He then spoke of the cultural heritage researched and displayed at the museum. Funding for all the university deferred maintenance projects was an investment in the future, he stated. ROYCE CHAPMAN testified via teleconference from Fairbanks in support of state funding for the Hutchinson Career Center. He talked about the local efforts to obtain funding and the importance to the community. Tape: SFC - 99 #124, Side B 7:15 PM Royce Chapman continued. DEE DEE JEFFREYS testified via teleconference from Coffman Cove. She listed nine people listening to the meeting with her that wished to convey a single message. Edward Massy, Frank Weatherby, Dick Young, Pricilla Wright, Ruby Young, Ron Hall, Chuck Bateman, Jerry Hedges and herself were present (no name spelling provided.) She would speak for them and fax the written comments and signatures of all. The City of Coffman Cove was a small community and relied on the municipal capital grants program. PAULENE HOOTEN, Member, AHFC Weatherization Policy Council, testified via teleconference from Mat-Su. She expressed her concern for the funding for important AHFC programs and asked the committee to restore the funding requested. TIM ANDERSON, Executive Director, Wasilla Area Seniors, testified via teleconference from Mat-Su. He supported funding for the senior housing development grant program. He spoke of a scheduled housing project and the efforts to find other funding sources. He told the committee about the senior population boom. TIM FOX, Supervisor, local Family Services office in Palmer, testified via teleconference from Mat-Su. His comments addressed the Family Services Field Safety, Office and Transportation Equipment request. He noted there was no funding in the proposed budget for the program and spoke of the need. Cellular phones and vehicles were greatly needed. STEWART WEINBERG, Superintendent of Schools, testified via teleconference from Fairbanks. He was impressed by the local support for the Hutchinson Career Center. He urged the committee to reconsider funding the project. ROGER BURGGRAF testified via teleconference from Fairbanks on behalf of himself and the mining industry. He supported funding for the Airborne Geophysical and Geophysical Mineral Inventory and the Land Status Geographic Information Systems. He also commented on the budget requests for the University of Alaska deferred maintenance projects including the Hutchinson Career Center and the museum. SARA ALDEN, Social Worker, Division of Family and Youth Services, testified via teleconference from Fairbanks. She requested funding for the Family Services Field Safety, Office and Transportation Equipment. She detailed the need for the various equipment and vehicles. PAUL WOODMAND, Interior Weatherization, the low-income weatherization provider for the road-connected Interior region, testified via teleconference from Fairbanks. His organization provided services through the Low-Income Weatherization Program. He spoke of the people the project served and their needs. He then noted the local businesses that provided the services and that the funds spend mostly remained in the community. MAY TISHER, teleconference operator, testified via teleconference from Talkeetna. HERMAN THOMPSON, Member, Upper Susitna Seniors, Inc., testified via teleconference from Talkeetna. He had concerns about the absence of funding for the Senior Citizens Housing Development Grant program. There was a senior housing project planned for the community and this would prevent the facility from being built. There was not another facility in the area. ELAINE TOBIAS, President, Upper Susitna Seniors, testified via teleconference from Talkeetna. She also stressed the need for the Senior Citizens Housing Development Grant program. JEANETTE RICHARDS, Member, Upper Susitna Seniors, testified via teleconference from Talkeetna in support of the Senior Citizens Housing Development Grant program LILIAN BRALINEIS, Member, Upper Susitna Seniors, testified via teleconference from Talkeetna in support of the Senior Citizens Housing Development Grant program. MAY FISHER, testified via teleconference from Talkeetna. She talked about the independence of the Upper Susitna Seniors organization. RON ALDRICH, Resident of Alaska since 1946, testified via teleconference from Talkeetna in support of the Senior Citizens Housing Development Grant program. DON BAWERS, President, local community council, testified via teleconference from Talkeetna. He vouched for the importance of the Senior Citizens Housing Development Grant program in Talkeetna. JAKE POOLE, Executive Director, University of Alaska- Fairbanks Alumni Association and Chair, Greater Fairbanks Chamber of Commerce Education Committee, testified via teleconference from Fairbanks. He spoke of the need for funding for the Hutchinson Career Center. BART LEBON, Member, Board of Education in Fairbanks, Past Chair, Greater Fairbanks Chamber of Commerce Board of Directors, Banker since 1975 and Proud Graduate, University of Alaska, Class of '75, testified via teleconference from Fairbanks. His comments supported funding for the Hutchinson Career Center. JERRY WALKER, Businessperson and concerned citizen testified via teleconference from Fairbanks in support of the Hutchinson Career Center. He suggested that by investing in this project, the Legislature would reduce the negative long-term affects of projected revenue shortfall. RON DIXSON, Chair, Tanana Valley Advisory Council, testified via teleconference from Fairbanks. He urged funding for the Hutchinson Career Center. MIKE YOUNG, Assemblyman, Fairbanks Northstar Borough, testified via teleconference from Fairbanks. He served of the board of directors of several telecommunication companies. He told of the services the Hutchinson Career Center would provide. JUDY WARWICK testified via teleconference from Fairbanks. She hoped the committee would reconsider the Hutchinson Career Center. Tape: SFC - 99 #125, Side A 8:02 PM DON GRAY testified via teleconference from Fairbanks. He reiterated earlier comments made stressing the importance of the deferred maintenance projects in the university. EILEEN CUMMINGS, Assemblymember, Fairbanks Northstar Borough, testified via teleconference from Fairbanks. She was disappointed in the elimination of funding for the Hutchinson Career Center. MARIE DARLIN, Lifelong Juneauite, National Association of Retired Federal Employees, testified in person. She did not have any specific projects to speak to, but wanted to comment on the efforts of many people in realizing senior projects. They felt the rug was pulled out from under them with the proposed elimination of funding. JANE DEMMERT, Executive Director, Alaska Commission on Aging, testified in person. She shared new data on the demographics of the state population. Part of the success in the State of Alaska was because seniors contributed to the economy. She spoke of the help the Alaska Housing Finance Corporation provided to many. BOB BRIGGS, Disability Law Center, testified in person. He applauded the full funding for the disability-housing program. He hoped the committee would reconsider funding for the Alaska Housing Finance Corporation senior assisted living projects. He also recommended funding for deferred maintenance projects on AHFC facilities. JACK HERBERT, President, Interior Alaska Building Association, testified via teleconference from Fairbanks in support of funding for the AHFC programs. He did not understand why there should be changes made to such a successful operation. He also supported funding for the Hutchinson Career Center. This concluded public testimony. Co-Chair John Torgerson announced that bills would be heard the next day. ADJOURNED Senator Torgerson adjourned the meeting at 8:19 PM. SFC-99 (8) 5/5/99