Legislature(2009 - 2010)SENATE FINANCE 532

03/17/2009 09:00 AM Senate FINANCE

Download Mp3. <- Right click and save file as

Audio Topic
09:06:36 AM Start
09:08:24 AM Alaska Railroad Overview
10:05:36 AM SB75
10:46:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation on the Alaska Railroad TELECONFERENCED
Corporation, by Patrick Gamble, CEO
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
Department of Commerce, Community and
Economic Development
SENATE BILL NO. 75                                                                                                            
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     and appropriations  to capitalize funds;  and providing                                                                    
     for an effective date."                                                                                                    
10:05:36 AM                                                                                                                   
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                      
AMANDA   RYDER,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  COMMERCE,  COMMUNITY AND  ECONOMIC                                                                    
DEVELOPMENT provided information  regarding the department's                                                                    
capital budget requests.                                                                                                        
Reference No. 40056                                                                                                           
Organization Grant  $100,000                                                                                                    
Ms. Ryder explained that the  grant would defray the cost of                                                                    
incorporation for  the third and  final payment to  the city                                                                    
and  borough of  Wrangell for  incorporation as  required by                                                                    
Reference No. 38950                                                                                                           
Alaska Energy Authority (AEA) Projects $31 million                                                                              
Ms. Ryder  explained that the request  supports longstanding                                                                    
(mostly federal)  grants. The department expects  $4 million                                                                    
in federal  funds from the  Denali commission for  bulk fuel                                                                    
upgrades  to   replace  tank  farms  with   new  refurbished                                                                    
facilities   that    meet   all   applicable    safety   and                                                                    
environmental standards.  The program began in  1997 and has                                                                    
expanded since  FY 99 with federal  Denali Commission funds.                                                                    
When  the work  began  there were  1,100  above ground  tank                                                                    
farms  in 171  remote  communities. She  explained that  $30                                                                    
million  is   needed  to  complete  the   upgrades  for  the                                                                    
remaining 25 communities on the list.                                                                                           
Co-Chair Stedman  asked for a  list of the  communities. Ms.                                                                    
Ryder agreed to provide a list after the meeting.                                                                               
10:09:08 AM                                                                                                                   
In response  to a  question by  Co-Chair Stedman,  Ms. Ryder                                                                    
observed that Alterative Energy  grants were included in the                                                                    
request because they are part  of AEA's energy projects. The                                                                    
Alternative Energy  and Energy Efficiency program  is a long                                                                    
standing  federal program  that receives  grants for  diesel                                                                    
generation, hydroelectric  project development  pass through                                                                    
federal  grants,  wind  energy,  biomass  geothermal,  ocean                                                                    
energy and energy cost reduction.  The program does not deal                                                                    
with  the renewable  energy grant  projects that  are funded                                                                    
from   the  $100   million  dollar   fund  created   by  the                                                                    
Ms.  Ryder  observed  that the  request  also  includes:  $7                                                                    
million  for Rural  Power System  upgrades  from the  Denali                                                                    
Commission,  $1  million  to develop  the  statewide  Alaska                                                                    
Energy Plan, and $2 million  for Renewable Energy Grant Fund                                                                    
projects.    No  state  match is  required  for  the  Denali                                                                    
Commission projects in this request.                                                                                            
Reference NO. 47877                                                                                                           
AEA - Denali Commission       $10 million                                                                                       
Match for rural power system upgrades                                                                                           
Ms. Ryder  explained that  the funding  would come  from the                                                                    
Capital Income  Fund. The Denali Commission  asked the state                                                                    
to provide  a match to  what had been 100  percent federally                                                                    
funded projects.                                                                                                                
10:13:41 AM                                                                                                                   
Reference No. 38946                                                                                                           
Community Block Grant    $6.1 million.                                                                                          
Ms.  Ryder  observed  that  the  request  contains  $6,030.0                                                                    
million in federal  funds and $70 thousand  in general funds                                                                    
for grants  to improve  the quality of  life for  low income                                                                    
rural  Alaskans through  RurAL  CAP  a non-profit  community                                                                    
agency.  The  request also  includes  funding  for Food  and                                                                    
Nutrition  Grants, Community  Development Block  Grants, and                                                                    
Emergency Shelter Grants.                                                                                                       
Reference No. 47006                                                                                                           
Grants Tracking System   $255 thousand                                                                                          
Ms.  Ryder observed  that the  grants tracking  system would                                                                    
provide software to assist the  department with its tracking                                                                    
of grants and expand reporting capacity.                                                                                        
Co-Chair Stedman assumed that the  requests were ranked in a                                                                    
priority  order.  Ms. Ryder  was  uncertain  but offered  to                                                                    
report back.                                                                                                                    
10:16:15 AM                                                                                                                   
Reference No. 41789                                                                                                           
Kodiak Launch Complex Infrastructure    $17.5 million                                                                           
Ms. Ryder  explained that $14  million of the  request would                                                                    
come  from  federal  funds.  The  remaining  $3.5  would  be                                                                    
general  funds. This  is the  second  year appropriation  to                                                                    
build a  dedicated rocket motor  facility and  an additional                                                                    
launch pad, which would allow multiple launches.                                                                                
Reference No. 40242                                                                                                           
Manufacturing Extension Program    $806,401                                                                                     
Ms. Ryder  highlighted the request  which would  support the                                                                    
federal  program   set  up  to  support   small  and  medium                                                                    
manufacturers. The  request funds  the state's third  of the                                                                    
10:18:08 AM                                                                                                                   
Reference No. 38943                                                                                                           
Community Development and Assistance    $2.63 million.                                                                          
Ms. Ryder  observed that the  general fund portion  would be                                                                    
$430  thousand.  The  request supports  multiple  federally-                                                                    
funded   programs    providing   grants    and   development                                                                    
opportunities and  assistant to communities  and non-profits                                                                    
for community development. The  request includes funding for                                                                    
the  Alaska  Floodplain   and  Erosion  Management  program,                                                                    
business  development,  and   the  Coastal  Zone  Management                                                                    
Reference No. 47007                                                                                                           
Licensing MyAlaska Integration     $310 thousand                                                                                
Ms. Ryder noted  that the project goal is  to integrate each                                                                    
of the division's on line  applications so that users do not                                                                    
have  to   apply  for  separate  ID's   and  passwords.  She                                                                    
concluded that the project would  offer greater security and                                                                    
ability to view accounts online.                                                                                                
Reference No.47878                                                                                                            
Denali Commission Match/Rural Transportation    $5 million                                                                      
Ms. Ryder  explained that  the funding  would come  from the                                                                    
Capital  Income  Fund. The  purpose  of  the request  is  to                                                                    
assist  the   Denali  Commission's   effort  to   fund  cost                                                                    
effective  road  construction   and  waterfront  development                                                                    
projects in  rural Alaska. The  request would  benefit rural                                                                    
Alaska  by   reducing  the  cost  of   goods  and  services,                                                                    
improving village  to village connections,  providing access                                                                    
to  resources,  and  helping to  create  jobs  and  economic                                                                    
development.  She observed  that  there is  30,000 miles  of                                                                    
shoreline  and  that  Alaska's   marine  facilities  are  an                                                                    
integral  part   of  local,  statewide,   and  international                                                                    
transportation of goods and  services. The Denali Commission                                                                    
previously  funded 100  percent  of these  projects but  has                                                                    
requested state participation.                                                                                                  
10:20:56 AM                                                                                                                   
Reference No. 47847                                                                                                           
Shishmaref Beach Erosion      $3 million                                                                                        
Ms. Ryder  observed that  the request funds  phase III  of a                                                                    
four phase project.  This phase would construct  550 feet of                                                                    
ocean side protection for the  washeteria and sewage lagoon.                                                                    
She noted that phases I and II are complete.                                                                                    
Co-Chair Hoffman  asked if these improvements  would prevent                                                                    
relocation  of Shishmaref.  Ms.  Ryder  understood that  the                                                                    
project would provide Shishmaref with  time to plan. She did                                                                    
not know how much time the project would buy.                                                                                   
10:22:51 AM                                                                                                                   
Reference No. 47987                                                                                                           
Kenai River Bluff Erosion Project $5 million                                                                                    
Ms.  Ryder  explained that  the  request  is the  result  of                                                                    
erosion  and is  the number  one  priority for  the city  of                                                                    
Kenai. The  total cost  of the project  is $20  million ($13                                                                    
million in  federal funds). The  local match is  $2 million.                                                                    
This request provides the state's portion.                                                                                      
Reference No. 41956                                                                                                           
Municipality of Anchorage     $10 million                                                                                       
Expansion of the Port of Anchorage                                                                                              
Ms.  Ryder observed  that the  Port of  Anchorage serves  80                                                                    
percent of Alaska's population and  is the entry point of 90                                                                    
percent of  the consumer goods  shipped to Alaska.  The port                                                                    
is securing funding of $350  million to $400 million through                                                                    
a  combination of  state, federal  and local  resources. The                                                                    
total  federal cost  is 52  percent; 48  percent would  come                                                                    
from  state   grants,  port   retained  earnings   and  loan                                                                    
proceeds. The state has so  far appropriated $55 million for                                                                    
this purpose.                                                                                                                   
Reference No. 47879                                                                                                           
Alaska Marine Exchange    0                                                                                                     
Ms.  Ryder clarified  that the  governor  removed this  item                                                                    
that would have  expanded the vessel tracking  system due to                                                                    
the state's fiscal situation.                                                                                                   
10:25:40 AM                                                                                                                   
Co-Chair  Stedman noted  that the  original request  for the                                                                    
marine exchange  system was $650 thousand  and questioned if                                                                    
the  cruise  ship head  tax  would  be an  appropriate  fund                                                                    
source.  Ms.  Ryder was  unable  to  answer but  offered  to                                                                    
discuss the  issue with OMB. Co-Chair  Stedman questioned if                                                                    
deletion of  the request would  impact cruise  ship tracking                                                                    
and monitoring of  discharge. He asked if  other areas would                                                                    
be increased  and questioned the  long term "deal"  with the                                                                    
transmitter  network  of  the  Alaska  Marine  Exchange.  He                                                                    
wanted  to  ascertain if  the  deletion  was temporary.  Ms.                                                                    
Ryder  responded  that she  was  unable  to comment  on  the                                                                    
policy issues behind  the deletion but offered  to talk with                                                                    
10:28:35 AM                                                                                                                   
Reference No. 38713                                                                                                           
Arctic Power   $120 thousand                                                                                                    
Ms. Ryder  explained that the  grant would  support eduation                                                                    
efforts in opening  up ANWR for oil and  gas exploration and                                                                    
Reference No. 41959                                                                                                           
Arctic Winter Games Team Alaska    $250 thousand                                                                                
Ms.  Ryder   clarified  that   the  request   would  support                                                                    
participation in the 2009 Arctic Winter Games.                                                                                  
Reference No. 38948                                                                                                           
NPR-A Impact Grant Program    $15,967,840                                                                                       
Ms. Ryder  explained that the  request funds  fifteen grants                                                                    
to  communities impacted  by  oil and  gas  lease sales  and                                                                    
development  within   the  National  Petroleum   Reserve  of                                                                    
Co-Chair  Stedman  asked about  a  list  of the  grants  and                                                                    
applications  that  were not  funded.  Ms.  Ryder agreed  to                                                                    
provide  the  list and  pointed  out  that the  grants  were                                                                    
Co-Chair  Hoffman asked  the reason  for the  amendment that                                                                    
reduced the request by $7 million.                                                                                              
10:31:40 AM                                                                                                                   
Ms.  Ryder answered  that one  of  the lease  sales did  not                                                                    
occur.  The  appropriation was  based  on  the actual  lease                                                                    
Co-Chair Stedman reiterated his request  for a list of grant                                                                    
applications that were declined.                                                                                                
Reference No. 47031                                                                                                           
Electrical Emergencies Program     $250 thousand                                                                                
Ms. Ryder clarified that the  request is a long standing AEA                                                                    
program  that funds  technical  support  when an  electrical                                                                    
utility has  lost or is in  danger of losing the  ability to                                                                    
generate power,  creating a  situation that  is a  threat to                                                                    
health, life  and/or property.  A language  appropriation is                                                                    
also  included  to reappropriate  the  cash  balance of  the                                                                    
Rural Electrification Revolving  Loan Fund ($80.4 thousand).                                                                    
The total cost would be $330.4 thousand.                                                                                        
Reference No. 45662                                                                                                           
Climate Change Impact Mitigation Program     $300 thousand                                                                      
Ms.  Ryder  explained  that the  program  provides  planning                                                                    
assistance  to the  most  at risk  villages  and provides  a                                                                    
planned   approach   to   shoreline   protection,   building                                                                    
relocation and/or  the eventual  relocation of  the village.                                                                    
The request would fund approximately five grantees.                                                                             
10:33:59 AM                                                                                                                   
Reference No. 47898                                                                                                           
Cruise Ship-Related Grant Projects $22.54 million.                                                                              
Ms. Ryder  noted that the  grants to municipalities  use the                                                                    
Cruise Ship  Impact Fund.  The Department  of Transportation                                                                    
and  Public Facilities  worked with  the department  to rank                                                                    
and  review  the projects  based  on  need and  cruise  ship                                                                    
industry impact to the communities and specific projects.                                                                       
Co-Chair Stedman  asked for more information  on the process                                                                    
used to collect  and rank projects. Ms.  Ryder observed that                                                                    
OMB outlined the ranking process  in a letter dated February                                                                    
26,  2009.  The  Department  of  Transportation  and  Public                                                                    
Facilities  gathered  project  information  and  prioritized                                                                    
projects based on OMB's letter.                                                                                                 
Co-Chair Stedman  did not  see Petersburg  on the  list. Ms.                                                                    
Ryder  did not  know  which communities  had proposals.  Co-                                                                    
Chair  Stedman asked  for more  information on  the pool  of                                                                    
requests and ranking. He observed  that there are still some                                                                    
funds available  and noted that  some projects  requested in                                                                    
the  previous  year  were  not  funded.  He  asked  for  any                                                                    
information  provided  by  the  industry that  was  used  in                                                                    
ranking with the objective to  keep the industry in the loop                                                                    
in regards  to the selected  grants project. He  pointed out                                                                    
that Fairbanks and Anchorage receive cruise ship visitors.                                                                      
10:37:56 AM                                                                                                                   
OFFICE OF THE GOVERNOR                                                                                                          
Reference No. 47009                                                                                                           
Banking and Securities Imaging     $580 thousand                                                                                
Ms.  Ryder   added  that  a   number  of   the  department's                                                                    
information and  technology projects  were placed  under the                                                                    
Office  of  the  Governor.  She  observed  that  an  imaging                                                                    
project  for  the  Banking and  Security  Management  System                                                                    
remains.  The  project  uses an  imaging  system  previously                                                                    
developed for  the Division of  Insurance as a base  for the                                                                    
new  project. Imagines  are currently  stored  in hard  copy                                                                    
format.  The request  would  improve document  accessibility                                                                    
and eliminates the cost of paper.                                                                                               
Ms. Ryder discussed the items that were deleted.                                                                                
Reference NO. 47005                                                                                                           
Community and Regional Affairs Imaging  $690 thousand                                                                           
Ms. Ryder observed  that the request was deleted  due to the                                                                    
state's fiscal situation.                                                                                                       
Reference NO. 47010                                                                                                           
Banking and Securities Management System     $890 thousand                                                                      
Ms. Ryder explained  that the request was removed  due to an                                                                    
incident that  convinced the administration to  start on the                                                                    
project  prior to  FY 10.  The  request encompasses  systems                                                                    
that address  STAR, ANCSA and Native  corporations. The STAR                                                                    
system was deemed  at risk and the request was  added to the                                                                    
supplemental appropriation.  Co-Chair Stedman  observed that                                                                    
the intent was to remove capital from the supplemental.                                                                         
10:42:10 AM                                                                                                                   
Co-Chair Stedman suggested that  the department's request be                                                                    
stacked in priority order.                                                                                                      
Co-Chair   Stedman    asked   for    information   regarding                                                                    
applications  for  climate  impact mitigation  funding.  Ms.                                                                    
Ryder noted that applications were  ranked by the department                                                                    
but did not know how the applications were submitted. She                                                                       
observed that some applications have been returned for more                                                                     
10:45:04 AM                                                                                                                   
Co-Chair Stedman  referred to economic stimulus  funding for                                                                    
the  department.  Ms.  Ryder   observed  that  requests  for                                                                    
economic stimulus  funding would  be made  for longstanding,                                                                    
existing programs. Co-Chair Stedman  observed that the issue                                                                    
would be given further review.                                                                                                  
10:46:46 AM                                                                                                                   

Document Name Date/Time Subjects
DCCED Kodiak AADC Overview.pdf SFIN 3/17/2009 9:00:00 AM
SB 75
AK Railroad briefing 31709.ppt SFIN 3/17/2009 9:00:00 AM