Legislature(1999 - 2000)
04/07/2000 09:05 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 441
"An Act making appropriations for the operating
expenses of the University of Alaska; making
appropriations under art. IX, sec. 17©, Constitution of
the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
Vice Chair Bunde MOVED to ADOPT Amendment 1: insert (4)
Alaska Community Colleges' Federation of Teachers. There
being NO OBJECTION, it was so ordered.
Representative J. Davies MOVED to ADOPT Amendment 2: reduce
the Constitutional Budget Reserve draw to $34 million
dollars. He pointed out that $172 million dollars for the
university is already in the operating budget.
Co-Chair Mulder OBJECTED and stressed that it would be
advantageous to keep the entire amount in the legislation.
Representative Grussendorf spoke in support of separating
the amounts. He maintained that the intent of the CBR is to
fill shortfalls, not to fund operating costs.
Co-Chair Mulder explained that the intent of the legislation
is to segregate the university and identify it as a separate
issue.
Representative G. Davis stated that he would support the
amendment, but emphasized that he did not want to identify
the university as the highest priority.
Representative Austerman stated that he had the same
concerns, and pointed out that Power Cost Equalization is
still an issue.
Co-Chair Mulder observed that if the amendment would pass
that the bill would probably not move from the Committee.
Representative G. Davis asked what is being done on other
issues before the Legislature: education, PCE, and labor
contracts.
Co-Chair Mulder responded that there is an opportunity to
look at additional support for K-12 funding in the
Conference Committee. He noted that there is funding for PCE
in both the House and Senate operating budgets. He noted
that discussions are continuing regarding an endowment. He
did not know if an endowment would succeed. He added that
the size and scope of the labor contracts have yet to be
determined in regards to their true monetary costs. He did
not know how or when the labor contracts would be addressed,
but assumed that the Legislature would be back in special
session if the issue is not addressed during the regular
session.
Representative G. Davis stated that he would oppose the
amendment in an effort to allow the legislation to move.
Representative Grussendorf spoke in support of the
amendment. He emphasized that he supports funding the $34
million dollar increment for the university, but stated that
there are too many unknowns to include the total CBR amount.
Representative J. Davies acknowledged the intent of the
legislation. He felt that insertion of the rest of the CBR
draw was premature. He stressed that the legislation would
still accomplish separation and support of the university at
the $34 million dollar increment level.
A roll call vote was taken on the motion to adopt Amendment
2.
IN FAVOR: Austerman, Davies, Grussendorf
OPPOSED: Phillips, Williams, Bunde, Davis, Foster,
Therriault, Mulder
Representative Moses was absent from the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to ADOPT Amendment 3: Delete
subsection (c), page 4, line 28 - page 5, line 11. He
explained that the amendment would delete the measures and
maintained that they are redundant. He pointed out that
measures were already adopted for the university and are
redundant and confusing.
Co-Chair Mulder explained that they were included to allow
measurements specific to the additional funding that is
being invested in the university. He stressed that the
measurements highlight the additional investment.
Representative J. Davies responded that the House Finance
Subcommittee made the assumption that the additional funding
would be available. He felt that all of the measures were
addressed. He questioned if it would be constitutional to
add the measures to an appropriation bill.
Co-Chair Mulder observed that legal counsel was contacted
and indicated that the language is appropriate.
Representative G. Davis spoke in opposition of the
amendment.
Representative Phillips agreed with the amendment. She
emphasized that measures were passed (in SB 281) and
maintained that those measures should pertain for
perpetuity.
Co-Chair Mulder maintained that the two sets of measures are
not in conflict. He Pointed out that number (3) requests a
careful look at the reduction on nonproductive programs and
facilities. The measure asks the university to take a
careful look at their system to see those programs and
facilities that are not necessarily productive. He observed
that there is a two-year window to do a careful analysis and
maintained that this would allow them to determine those
things that are productive and are meeting their objective.
This allows time to identify things that can be streamlined.
Representative Grussendorf stressed that legislative
findings are not necessary.
Co-Chair Mulder maintained that the university would pay
close attention to the missions and measures and that they
would not be tossed out. Co-Chair Therriault agreed with
comments of Co-Chair Mulder.
Representative J. Davies stressed that there has not been a
policy discussion on the measures contained in the
legislation. He emphasized that they may have unintended
consequences. He pointed out that the measures included in
SB 281 were discussed at length within the Subcommittee and
with the university.
A roll call vote was taken on the motion to adopt Amendment
4.
IN FAVOR: Phillips, Williams, Davies, Grussendorf
OPPOSED: Austerman, Bunde, Davis, Foster, Therriault,
Mulder
Representative Moses was absent from the vote.
The MOTION FAILED (4-6).
Representative J. Davies MOVED to ADOPT a conceptual
Amendment 4: make sure the importance of continuing the
current master's program is emphasized, within the
discussions of the 4 year-program.
Representative Phillips recommended the deletion of "four-
year" and insertion of "baccalaureate". She argued that the
four-year degree program is almost nonexistent. Co-Chair
Mulder argued in support of retaining "four-year". He
stressed that students leave the state to obtain four-year
degrees.
Vice Chair Bunde noted that not many people complete a four-
year degree in four years.
Representative J. Davies MOVED to amend Amendment 4: Delete
"four-year" and insert "baccalaureate, as well as masters
level teacher training programs" on page 4, lines 27 and 12.
There being NO OBJECTION, it was so ordered.
Co-Chair Therriault MOVED to report CSHB 441 (FIN) out of
Committee. Vice Chair Bunde OBJECTED for the purpose of
discussion. He expressed concern that the legislation
creates a step toward a dedicated fund, and removes the
notion that state funding would be reduced in FY01.
Representative Austerman observed that he supports funding
for the university, but stressed that there are a number of
issues that have not been addressed.
Representative J. Davies expressed support for university
funding, but expressed concern that many issues remain.
Representative G. Davis stated that there are a lot of
priorities that have not been addressed.
Representative Williams stressed that the Committee should
be working on a fiscal plan and that the legislation is only
part of the puzzle. He suggested that the bill be held and
noted that K-12 education and PCE funding still need to be
addressed.
A roll call vote was taken on the motion to move HB 441.
IN FAVOR: Austerman, Bunde, Davies, Davis, Foster, Phillips,
Therriault, Mulder
OPPOSED: Williams, Grussendorf
Representative Moses was absent from the meeting.
The MOTION PASSED (8-2).
CSHB 441 (FIN) was REPORTED out of Committee with "no
recommendation".
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