Legislature(1999 - 2000)

04/06/2000 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 441                                                                                                              
                                                                                                                                
An Act making appropriations for the operating expenses                                                                         
of the University of Alaska; making appropriations                                                                              
under art. IX, sec. 17c, Constitution of the State of                                                                           
Alaska, from the constitutional budget reserve fund;                                                                            
and providing for an effective date.                                                                                            
                                                                                                                                
MARK HAMILTON, PRESIDENT, STATEWIDE PROGRAMS AND SERVICES,                                                                      
UNIVERSITY OF ALASKA, FAIRBANKS, stated that House Bill 441                                                                     
invests a one-time, state funded $34,000,000 appropriation                                                                      
to the University of Alaska with a two-year lapse date.  In                                                                     
total, it would invest $532,654,800 in operations to the                                                                        
University of Alaska.                                                                                                           
                                                                                                                                
The bill responds to the University's Board of Regents                                                                          
request to help the University by making a significant and                                                                      
multi-year commitment to a new direction.                                                                                       
                                                                                                                                
President Hamilton pointed out that House Bill 441, in an                                                                       
innovative fashion, would address the needs of the                                                                              
University of Alaska. The bill invests a total of                                                                               
$532,654,800 for operation of the University of Alaska. That                                                                    
would include $66,284,700 ($34,000,000 in state funds) with                                                                     
a two-year lapse date so the University could retool to meet                                                                    
Alaska's changing needs.                                                                                                        
                                                                                                                                
President Hamilton noted that HB 441 would provide                                                                              
$466,370,100 (including $172,143,300 in state funds) as                                                                         
basic funding for FY 01.                                                                                                        
                                                                                                                                
      Funds             6/30/01 Lapse        6/30/O2 Lapse                                                                      
 State Funds 172,143,300 34,000,000                                                                                             
 Other funds 294,226,800 32,284,700                                                                                             
 Total funds 466,370,100 66,284,700                                                                                             
                                                                                                                                
The separate, two-year allocation to the University budget                                                                      
would allow the Board of Regents stability in funding for                                                                       
new programs and additional flexibility in meeting the                                                                          
evolving needs of the students and the State.  The                                                                              
University would be able to begin programs with the                                                                             
assurance that second year funding would be available. The                                                                      
two year time span would allow new and modified programs to                                                                     
begin functioning so that they can be reasonably measured as                                                                    
the FY 03 budget is being considered.                                                                                           
                                                                                                                                
President Hamilton stated that HB 441 would establish goals                                                                     
for the University to meet, including providing more Alaska                                                                     
trained teachers, helping diversify our economy, providing                                                                      
education and training for jobs and professions that are                                                                        
developing in Alaska.  The Legislature expects the                                                                              
University to offer quality education to its students and                                                                       
retain students through graduation. It also expects the                                                                         
University forge partnerships with the private sector.  To                                                                      
accomplish these goals, the University will need to review                                                                      
all its programs and facilities and eliminate or revamp                                                                         
those not contributing to these new goals.                                                                                      
                                                                                                                                
President Hamilton urged a change to the existing document.                                                                     
He stated that it was his intent, to pay from that same sum,                                                                    
the salary increase agreed to through the contracts.  He                                                                        
noted that the faculty deserves those raises and that it                                                                        
would not require extra dollars.  He reiterated that the                                                                        
legislation is innovative and enlightened.                                                                                      
                                                                                                                                
Co-Chair Mulder asked for more information regarding the new                                                                    
programs which would be coming on line.  President Hamilton                                                                     
explained that there would be programs in some direct                                                                           
service areas, addressing long-term existing requirements                                                                       
for the production of quality teachers in the State.                                                                            
Additionally, there would be a two-year nursing graduate                                                                        
program, several allied health fields, heavy equipment                                                                          
operator program, additional opportunities in logistics as                                                                      
well as informatics, and a degree in financing.                                                                                 
                                                                                                                                
Co-Chair Mulder asked for further discussion on the                                                                             
continuation of the four-year program and how that would                                                                        
"fit" with the five-year program system.  President Hamilton                                                                    
noted that a State University is directed to do a four-year                                                                     
program.  He stated that the University was faced with a                                                                        
dilemma three years ago which was either to do "quality" or                                                                     
"quantity".  The quality piece tried to get in consort with                                                                     
the Alaska quality schools initiative.  At that time, it was                                                                    
assumed that the University would produce another year of                                                                       
graduate level participation.  He hoped that there was a                                                                        
potential to merge those two programs and save a couple                                                                         
faculty positions.                                                                                                              
                                                                                                                                
President Hamilton stated that the University would now                                                                         
offer a four-year program and wanted to keep the five-year                                                                      
program.                                                                                                                        
                                                                                                                                
Representative Williams questioned investment of teacher                                                                        
qualifications and expertise of the faculty and training of                                                                     
the students.  President Hamilton responded that the system                                                                     
is improving and the programs are being revamped.                                                                               
Representative Williams advised that "something is currently                                                                    
broken" in the University system as it now exists.                                                                              
                                                                                                                                
President Hamilton assured members that many changes need to                                                                    
happen which the University is now attempting.  Funding this                                                                    
legislation will enable these things to be addressed.                                                                           
                                                                                                                                
President Hamilton stated that there has been a significant                                                                     
loss of confidence from loosing the accreditation by the                                                                        
University of Alaska-Fairbanks.  He believed that there was                                                                     
great failure on the part of the University not to have                                                                         
dealt with that publicly.  The report that removed the                                                                          
accreditation, at the same time, praised the quality of the                                                                     
faculty and the quality of the students.  He emphasized that                                                                    
a university needs to produce the majority of the teachers                                                                      
in that state.  That is fundamental to the long-term support                                                                    
of the community in terms of recruitment.                                                                                       
                                                                                                                                
President Hamilton pointed out that only 15% of the faculty                                                                     
of the Alaska school system come from residents within the                                                                      
State.  Most other states have 40% of their teachers having                                                                     
been trained in their state.  He reiterated that this is not                                                                    
a broken system, however, it does have a bad reputation.                                                                        
                                                                                                                                
Co-Chair Mulder asked about the logistics program and the                                                                       
vision for that program in the future.  President Hamilton                                                                      
advised that logistics at large has an enormous potential in                                                                    
the State of Alaska.  He noted that Anchorage is #2 in the                                                                      
global exchange with the airport and that Fairbanks is #9.                                                                      
It appears that the free market believes that this is a good                                                                    
place (Alaska) to undertake this "stuff".  He added that                                                                        
many industries within the State have indicated their                                                                           
commitment by donating approximately $1 million dollars to                                                                      
the University to expand that program.                                                                                          
                                                                                                                                
President Hamilton noted that through discussions with the                                                                      
military installations, there is a great deal of interest in                                                                    
the possibility of out-sourcing the logistics schools.                                                                          
President Hamilton stressed that the State would be hard                                                                        
pressed to understand the impact this.                                                                                          
                                                                                                                                
Representative Williams questioned what the extra funding                                                                       
would be used for.  President Hamilton offered to outline                                                                       
prioritized programs.                                                                                                           
                                                                                                                                
(TAPE CHANGE, HFC 00 - 105, Side 1).  **Tape out of place**                                                                     
                                                                                                                                
Co-Chair Mulder spoke to the contracts and recognized                                                                           
President Hamilton's desire to treat all his employees                                                                          
equally.  Co-Chair Mulder commented that the Legislature is                                                                     
trying to treat all the contracts consistently.  President                                                                      
Hamilton stated that was fair.  He added that it is his                                                                         
intent to construct a "contract continuation" which would                                                                       
not change the financial terms of the previous contract.                                                                        
This was constructed in time so that it could be considered                                                                     
along with everything else.  He indicated that this is not a                                                                    
small point and urged that be reconsidered.                                                                                     
                                                                                                                                
Representative G. Davis asked if the amount of the new                                                                          
contract was known.                                                                                                             
                                                                                                                                
(TAPE CHANGE, HFC 00 - 107, Side 1).                                                                                            
                                                                                                                                
DAVE LEWIS, OPERATIONS MANAGER, ALASKA FIBERSTAR, EAGLE                                                                         
RIVER, ALASKA, spoke on behalf and in support of greater                                                                        
funding for the University of Alaska.  He stressed that the                                                                     
State needs the University for the State's economy.  He                                                                         
advised that it is difficult to hire from within the State                                                                      
when all the children of the State move out of state for                                                                        
training.  Ultimately, they end up living where they                                                                            
graduate from college.                                                                                                          
                                                                                                                                
BOB CONDON, PRESIDENT, ALASKA FEDERATION OF TEACHERS FOR                                                                        
COMMUNITY COLLEGES, testified in support of HB 441.  He                                                                         
noted that their union was not included on the list proposed                                                                    
by the University. He emphasized that the amount of money                                                                       
needed would not change regardless of whether they were on                                                                      
the list or not. Mr. Condon provided a history of their                                                                         
contract.  He urged that they be placed on the list.                                                                            
                                                                                                                                
Vice Chair Bunde questioned how many people were in that                                                                        
union. Mr. Condon replied that he represented about 260                                                                         
employees.  There are 1,000 or more of non-represented                                                                          
members and 1,000 with the United Academics.                                                                                    
                                                                                                                                
In response to a question by Vice Chair Bunde, Mr. Condon                                                                       
pointed out that their union has historically led the fight                                                                     
for better working conditions and salaries.                                                                                     
                                                                                                                                
Representative Bunde MOVED a conceptual amendment.  Co-Chair                                                                    
Mulder interjected that it was his intention to hold the                                                                        
bill until tomorrow to discuss these issues. Representative                                                                     
Bunde WITHDREW the conceptual amendment.                                                                                        
                                                                                                                                
Co-Chair Mulder commented that it was his intent to treat                                                                       
all new contracts as a "separate package". Mr. Condon                                                                           
recognized that the legislation appears to have a two-year                                                                      
prohibition.                                                                                                                    
                                                                                                                                
HB 441 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  

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