Legislature(2007 - 2008)HOUSE FINANCE 519
03/20/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB95 || HB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 95 | TELECONFERENCED | |
| += | HB 96 | TELECONFERENCED | |
HOUSE BILL NO. 95
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
HOUSE BILL NO. 96
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
Co-Chair Chenault MOVED to ADOPT Amendment PERS #1:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Various
APPROPRIATION: Various
ALLOCATION: Various
ADD: 53.1 GE/Match (1003)
2,377.0 GF (1004)
31.9 GF/PR (1005)
119.1 GFMH (1037)
EXPLANATION: In the Governor's request, about 750
employees were budgeted as participants in the defined
contribution retirement plan, with an employer
contribution rate of less than 11 percent. In the fixed
rate retirement plan envisioned by the House Finance
Committee, agencies will contribute 22 percent of all
employees' salaries to retirement accounts. This
amendment adds II percent of the general fund portion
of salaries budgeted for defined contribution employees
in all agencies. Affected allocations and the amount
and fund sources required to provide agencies with the
money to pay a rate of 22 percent are listed on the
attached seven pages.
Representative Hawker OBJECTED.
SHARON KELLY, STAFF, CO-CHAIR CHENAULT, explained Amendment
PERS #1 is an addition of the general fund portion of PERS
salaries budgeted for defined contribution employees in all
agencies.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was so ordered.
1:47:50 PM
Co-Chair Chenault MOVED to ADOPT Amendment PERS #2:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Appellate Courts
ADD: 493.5 General Funds (1004)
ALLOCATION: Trial Courts
ADD: 3,272.3 General Funds (1004)
ALLOCATION: Administration and Support
ADD: 43.6 General Funds (1004)
EXPLANATION: The Judicial Retirement System rate
remains at 56.98%; it does not drop to the 225
applicable to PERS employees.
Representative Meyer OBJECTED.
Ms. Kelly explained that Court System information as it
relates to retirement was consolidated. This amendment adds
back funds to the appellate courts, to trial courts, and to
administration and support.
Co-Chair Meyer WITHDREW his OBJECTION.
Representative Gara inquired if the payment rate for the
Alaska Court System employees will remain at 56.98 percent.
Ms. Kelly replied that the Judicial Retirement System was
not addressed in TRS/PERS fixes. Representative Gara
requested that that be addressed by the end of session.
There being NO further OBJECTION, it was so ordered.
1:49:23 PM
Co-Chair Chenault MOVED to ADOPT Amendment PERS #3:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Oil & Gas Development
ADD: $0.7 General Funds (1004)
DELETE: $0.7 Investment Loss Trust Fund
(1053)
EXPLANATION: This amendment removes excess Investment
Loss Trust Fund receipts that were appropriated as part
of the PERS adjustments made in the draft committee
substitute.
Co-Chair Meyer OBJECTED.
Ms. Kelly explained that the PERS fix overspent the
Investment Loss Trust Fund by $700, and this amendment
replaces that amount with general funds.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:50:01 PM
Co-Chair Chenault MOVED to ADOPT Amendment DOA #1:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Administration
APPROPRIATION: Legal and Advocacy Services
ALLOCATION: Office of Public Advocacy
ADD: 231.2 GF
EXPLANATION: Increment for the support of Elder Fraud
increased case load. Add Attorney II, Investigator and
one Clerk II.
Attorney II 97,078
Investigator III 84,739
Clerk II 49,382
$231,199
Co-Chair Meyer OBJECTED.
Ms. Kelly explained that the case load for Elder Fraud has
significantly increased, hence the need for more staff.
Co-Chair Chenault commented that Representatives Gara and
Thomas have also been concerned with this issue. He pointed
out the higher case loads regarding Elder Fraud.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:51:34 PM
Representative Thomas MOVED to ADOPT Amendment DOA #2:
OFFERED BY: Representative Thomas
DEPARTMENT: ADMINISTRATION
APPROPRIATION: Centralized Administrative Services
ALLOCATION: Office of the Commissioner
Amendment to Sec. 11. DEPARTMENT OF ADMINISTRATION
The sum of $1,267,600 [$2,251,600] is appropriated from
the general fund to the Department of Administration,
commissioner's office, for distribution to state
agencies to offset a portion of chargeback rates for
enterprise technology services for the fiscal year
ending June 30, 2008.
It is the intent of the legislature that state agencies
receiving money under (b) of this section will
reimburse the money [FROM VARIOUS FUND SOURCES] as
required by the enterprise technology services
federally approved statewide cost allocation plan.
The sum of $740,000 is appropriated from the general
fund to the Department of Administration,
commissioner's office, for distribution to state
agencies to offset the increased rates for facilities
covered by the Alaska public building fund (AS
37.05.570) for the fiscal year ending June 30, 2008.
It is the intent of the legislature that state agencies
receiving money under (d) of this section will
reimburse the money [FROM VARIOUS FUND SOURCES] as
required by the Alaska public building fund federally
approved cost allocation plan. The amounts distributed
are intended to cover a portion of the costs of
increased rates resulting from fiscal year 2008
operations.
EXPLANATION: This amendment is needed to reflect the
Governor's amendments for subsection (b) for the
following three items:
(1) an addition of $825,000 general fund for the
exchange/active directory maintenance costs and
training,
(2) an addition of $250,000 general fund for security-
anti-virus software and server hosting, and
(3) a reduction of $1,826,000 for enterprise technology
efficiencies.
(4) a reduction of $232,000 of non-GF fund sources that
are available due to the PERS rate adjustment
Subsections (c) and (e) are amended to reflect a more
accurate description of the reimbursement of money
required by the enterprise technology services
federally approved statewide cost allocation plan.
Co-Chair Meyer OBJECTED.
Representative Thomas explained the amendment amalgamates
three amendments proposed by the governor not acted upon in
subcommittee.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:52:52 PM
Representative Hawker MOVED to ADOPT Amendment DOA #3:
OFFERED BY: Representative Hawker
DEPARTMENT: Administration
APPROPRIATION: Legal and Advocacy Services
ALLOCATION: Public Defender Agency
DELETE: ($106,100)
FUNDING SOURCE: 1092 Mental Health Trust Authority
Authorized Receipts
EXPLANATION: Available Mental Health Trust Authority
Authorized Receipts are reduced by $106,100 to match
the Trust Authority's funding recommendation.
Co-Chair Meyer OBJECTED.
Representative Hawker explained that the amendment conforms
the budget to those authorities authorized by the board of
directors of the Mental Health Trust Authority.
Representative Gara asked what the impact of the amendment
on Therapeutic Courts would be. Representative Hawker
responded that the amendment provides less MHTAAR authority
for the Therapeutic Court System. It is expected that the
department will continue to fund Therapeutic Courts with
other available resources. Representative Gara wondered if
the department was counting on the $106,000 during the
budget proposal process. Representative Hawker replied that
the department was privy to this information during the
budget process. He termed the change a technical amendment.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
1:55:26 PM
Representative Kelly MOVED to ADOPT Amendment DCCED #1:
OFFERED BY: Representative Kelly
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Corporations, Business and
Professional Licensing
ALLOCATION: Corporations, Business and
Professional Licensing
ADD THE FOLLOWING WORDAGE:
The amount appropriated by this appropriation includes
the unexpected and unobligated balance on June 30,
2007, of the Department of Commerce, Community, and
Economic Development, division of corporations,
business and professional licensing, receipts from the
fees under AS 08.01.065(a), (c), and (f)-(i).
EXPLANATION: This wordage was inadvertently left out
of the Governor's request and is needed to allow the
receipts collected from the various boards to be
carried forward.
Co-Chair Meyer OBJECTED.
Representative Kelly explained that the wordage in this
amendment was inadvertently left out of the governor's
request and is needed to allow receipts from various boards
to be carried forward.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:56:12 PM
Representative Kelly MOVED to ADOPT Amendment DCCED #2:
OFFERED BY: Representative Kelly
DEPARTMENT: Commerce, Community & Economic
Development
APPROPRIATION: Alaska Seafood Marketing Institute
ALLOCATION: Alaska Seafood Marketing Institute
ADD: $1,250.0 (One time Inc.)
FUNDING SOURCE: Receipt Supported Services
EXPLANATION: Increasing ASMI's RSS authorization to
$3M from $1.725M will allow ASMI to complete the second
year of the TV component of its consumer advertising
campaign with only minor reductions and provide enough
authorization industry generated funds to be used to
match federal monies for the USDA Market Access Program
which have been approved for this FY. The carry over
of remaining industry funds will better level ASMI's
financial picture in the coming fiscal year.
Co-Chair Meyer OBJECTED.
Representative Kelly explained that the amendment increases
ASMI's receipt authority to $3 million from $1.725 million,
which will allow ASMI to complete their TV campaign. He
noted that it does not impact general funds.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:57:30 PM
Representative Kelly MOVED to ADOPT Amendment DCCED #3:
OFFERED BY: Representative Kelly
DEPARTMENT: Commerce, Community & Economic
Development
APPROPRIATION: Qualified Trade Association
Contract
ALLOCATION: Qualified Trade Association
Contract
ADD: $1,000.0
FUNDING SOURCE: Vehicle Rental Tax
EXPLANATION: Increase funding level for "Destination
Marketing".
Co-Chair Meyer OBJECTED.
Representative Kelly explained that the amendment removes $1
million from the vehicle rental tax and allocates it to
Destination Marketing.
Representative Gara asked if the additional money compares
to last year's marketing allotment. Representative Kelly
said it would add $1 million to the state's share, which was
roughly $5 million last year.
Representative Crawford thought the money had to come from
the general fund. Representative Kelly explained that the
vehicle rental tax becomes part of the general fund and
permits the use of the funds in this fashion. This shows
the significant impact of the vehicle rental tax and the
cruise ship tax.
Representative Crawford agreed that more needs to be done to
enhance marketing. He wanted to clarify that these are
general fund dollars. Representative Kelly added that there
are other sources of funding as well.
Co-Chair Meyer WITHDREW his OBJECTION.
2:01:41 PM
Representative Joule mentioned the relationship with ATIA
regarding marketing. He related a personal story about
tourism in rural areas. He hoped that tourism for rural
areas would be marketed more effectively in the future.
There being NO further OBJECTION, it was so ordered.
2:04:54 PM
Representative Gara MOVED to ADOPT Amendment DCCED #4:
OFFERED BY: Representative Gara
DEPARTMENT: Department of Commerce, Community &
Economic Development.
APPROPRIATION: Community Assistance & Economic
Development
ALLOCATION: Community Advocacy
ADD: $250.0 GF
EXPLANATION: This amendment will provide funding for
the Alaska Legal Services Corporation (ALSC). ALSC
provides legal advice and representation to help
resolve serious legal problems of low-income Alaskans,
promotes family, social and economic stability by
upholding the rule of law and reduces the legal
consequences of poverty. For more than 40 years, ALSC
has responded to the civil legal needs of low-income
Alaskans who would otherwise go without legal
assistance. Their efforts improve the quality of life
for our children, our families, the elderly and
disadvantaged, and our community.
Co-Chair Meyer OBJECTED.
Representative Gara related that the amendment addresses
funding for legal representation for low-income Alaskans who
have not committed a crime. The item was funded until two
years ago. The debate earlier this year centered on the
mechanism to maintain this funding. He related the history
of the allocation.
Co-Chair Meyer MAINTAINED his OBJECTION.
Co-Chair Chenault commented that the funding source for this
item had been debated earlier. He did not support the
amendment.
Representative Crawford thought that if something is worth
being funded it should be funded out of the general fund.
He spoke in support of Amendment DCCED #4.
Representative Kelly recalled that this item was not
addressed in the subcommittee.
2:09:32 PM
Representative Gara argued that the amendment provides
funding on a level basis through the general fund. He
recalled favorable discussion earlier this session.
Representative Stoltze thought it was not a funding
priority.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault,
Meyer
The MOTION FAILED (4-7).
2:12:04 PM
Representative Nelson MOVED to ADOPT DCCED #5:
OFFERED BY: Representative Nelson
DEPARTMENT: Commerce, Community & Economic
Development
APPROPRIATION: State Revenue Sharing
ALLOCATION: State Revenue Sharing
ADD: $51,500.0 GF
EXPLANATION: This appropriation would continue funding
for the Municipal Revenue Sharing program at $48.1
million plus $3.4 million for unincorporated
communities in Alaska. This is based on the Governor's
proposal of $40,000 minimum for municipal governments
and $25,000 for unincorporated communities. An
additional allocation for municipal governments-cities
and boroughs-would be allocated on a per capita basis.
To many Alaskan communities revenue sharing is money
for essential services such as basics such as heating
and electricity, insurance, and city clerks. Revenue
sharing has helped fund community safety needs such as
snow removal, street lights, and fire protection. In
larger communities revenue sharing helps ease the
burden off of local tax payers who are often the
community's largest source of revenue. Revenue sharing
is an important component of the State's overall
economic health.
Many Alaskan communities have made a stable revenue
sharing program their top legislative priority.
Co-Chair Meyer OBJECTED.
Representative Nelson explained that the amendment would
continue funding for the Municipal Revenue Sharing program.
She pointed out that while some municipal assistance would
be provided to communities regarding the PERS/TRS retirement
fund, not all communities participate in the PERS/TRS
retirement system. She highlighted increased costs to
municipalities. She thought municipal revenue sharing could
be funded out of the capital budget this year. She provided
statistics regarding the failure of small communities.
Co-Chair Meyer agreed that revenue sharing was important,
but this was not the method to achieve it. He suggested
waiting for the PERS/TRS fix.
2:15:30 PM
Representative Joule recalled the loss of a building due to
a fire in a small rural community, which could not be
replaced due to loss of revenue sharing. He argued in favor
of including Amendment DCCED #5 in the operating budget.
Representative Crawford spoke of research regarding what
other states do to provide for rural communities and local
governments. Generally, Alaska ranks mid-range as far as
assistance. All states provide some sort of assistance. He
agreed it is right to include revenue sharing in the
operating budget.
Representative Gara opined that the term is incorrect; it is
life-line funding and tax-relief funding. He recalled when
municipal revenue sharing began to decline in the 90's. He
thought the costs would have to be made up somewhere else if
they are not funded in municipal revenue sharing.
2:21:01 PM
Co-Chair Chenault brought up the PERS/TRS crisis as a reason
for not putting funds into municipal revenue sharing. He
recalled the many ways the state funds services to
municipalities. He agreed that many communities are not
involved in the PERS/TRS issues. He emphasized that the
state needs to cut back on deficit spending. He spoke
against Amendment DCCED #5 and in favor of a long-term fix.
2:26:47 PM
Representative Nelson explained the reasoning behind the
$51,500.0, which includes an amount for unincorporated
communities.
Co-Chair Meyer MAINTAINED his OBJECTION. He thought revenue
sharing could be in other ways the state supports
municipalities. He noted that Alaska pays up to 70 percent
of new school construction, which many other states do not
do.
2:29:16 PM
Representative Thomas commented that there is a bill on
revenue sharing coming up. He recalled what happened when
revenue sharing was taken away in his community. He spoke
in favor of having a sustained program rather than a one-
year fix.
Representative Joule summarized that everyone agrees that
there is a need for helping communities and that a long-
range plan is needed. He spoke in favor of Amendment DCCED
#5.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault,
Meyer
The MOTION FAILED (4-7).
2:34:04 PM
Co-Chair Chenault MOVED to ADOPT Amendment Courts #1:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Appellate Courts $ 32,500
Trial Courts $293,300
Administration $ 31,000
Total $356,800
ADD: 356.8 GF
EXPLANATION: Creates a "G" Step for front line, Range
14 and below, employees allowing long term
knowledgeable staff the opportunity and incentive to
remain with the Court System. This increment will
bring the court system on an even keel with the
executive branch and in compliance with AS
22.20.037(c).
Co-Chair Meyer OBJECTED.
Co-Chair Chenault explained that the amendment creates a "G"
Step for front line, Range 14 and below, employees.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
2:36:02 PM
Co-Chair Chenault MOVED to ADOPT Amendment Courts #2:
OFFERED BY: Co-Chair Chenault
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Trial Courts
ADD: $100.0 GF
EXPLANATION: The court system has been excluded from
the "trigger" distribution of fuel to be administered
by the Governor's Office. This amendment adds funding
included in the Governor's budget that was removed in
anticipation of the "trigger" distribution.
Co-Chair Meyer OBJECTED.
Co-Chair Chenault related that the court system has been
excluded from the "trigger" distribution of fuel to be
administered by the Governor's Office. This amendment
expends funds to the court system for fuel.
Co-Chair Meyer WITHDREW his OBJECTION.
2:37:30 PM
Representative Nelson MOVED to ADOPT Amendment Courts #3:
OFFERED BY: Representative Nelson
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Trial Courts
ADD: $75.0 GF
EXPLANATION: The court system received funding in FY
07 to pay for ½ year cost for screening services. This
appropriation will provide operating funds for the full
year court security screen at the Bethel courthouse.
The Bethel court is one of the busiest court locations
in the state and serves as the hub for communities in
the Yukon-Kuskokwim Delta.
Co-Chair Meyer OBJECTED.
Representative Nelson explained that this is funding for a
security system for the Bethel court system, which is one of
the busiest in the state with a very high number of felony
and domestic violence rates.
Co-Chair Chenault noted that this issue was looked at in
subcommittee. He thought it was not a major issue.
Co-Chair Meyer MAINTAINED his OBJECTION.
2:39:09 PM
Representative Joule asked if this is the second year for
this request. Representative Nelson said it was. Co-Chair
Chenault thought that last year $150,000 was requested and
$75,000 was approved. Representative Joule thought the
requested amount is to finish paying for the screening
services.
Representative Nelson said it is to update the system.
Representative Gara commented on a need for security in the
Bethel court system.
Co-Chair Chenault argued that security might be impossible
to assure. Representative Gara agreed that it is unknown
how much is adequate.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault,
Meyer
The MOTION FAILED (4-7).
2:42:39 PM
Co-Chair Meyer MOVED to ADOPT Amendment DEED #1:
OFFERED BY: Representative Meyer
DEPARTMENT: Education and Early Development
APPROPRIATION: Mt. Edgecumbe Boarding School
ALLOCATION: Mt. Edgecumbe Boarding School
ADD: $26,000 GF - Inc. OTI
EXPLANATION: The Subcommittee's intent was to replace
grant funds of $140,000 (funding for 4 live-in
residential staff positions) with $70,000 to fund 2
positions. This appropriation, when coupled with a
$44,000 remaining AASB grant, should be sufficient to
hire 2 live-in residential staff.
Representative Stoltze OBJECTED.
Co-Chair Meyer explained that Mt. Edgecumbe had a soon-to-
expire grant for four staff positions. The amendment would
allocate $26,000 to be combined with money from a remaining
AASB grant to fund two of those positions.
Representative Stoltze WITHDREW his OBJECTION. There being
NO further OBJECTION, it was so ordered.
2:44:00 PM
Representative Gara MOVED to ADOPT Amendment DEED #2:
OFFERED BY: Representative Gara
DEPARTMENT: Education and Early Development
APPROPRIATION: Alaska Postsecondary Education
Commission
ALLOCATION: Program Administration and
Operations
ADD: $3,000,000 GF
EXPLANATION: Appropriates money to fund need-based
education grants for Alaskan students attending Alaskan
institutions. Alaska has ranked last in the country
for the percentage of low-income students attending
college for 13 of the past 14 years (8.6%). It ranks
th
49 in the level of financial aid it provides to low-
income students. This appropriation will help educate
students who seek higher education but cannot afford to
do so, and will implement a recommendation by the
University regents to fix an estimated $4 to $7 million
shortfall in needs-based aid.
Co-Chair Meyer OBJECTED.
Representative Gara addressed the explanation behind
Amendments DEED #2 and DEED # 4. He explained that the
amendments appropriate money to fund need-based education
grants for Alaskan students attending Alaskan institutions.
He related statistics to support his request. He recalled a
study which graded Alaska with an "F" in the areas of
financing low income students.
2:48:00 PM
PAT PITNEY, VICE PRESIDENT, BUDGET & PLANNING, UNIVERSITY OF
ALASKA, spoke to the need for financial aid for low-income
students. She noted that the aid should be provided at the
state level. If the state funded needs-based aid at the
national average, it would be just over $6 million. She
reported that many Alaskan low-income families do not see
higher education as an option. She termed this funding as a
"state investment" against the use of social service funds
in the future. She reported that low-income families do
save for college education.
2:51:06 PM
Co-Chair Chenault questioned the income level eligibility
for student aid regarding other financial aid packages. Ms.
Pitney noted that the $50,000 family income figure is when
it becomes hard to afford college costs. She related
information about the PELL Grant, which pays for 40 percent
of the cost of higher education.
Co-Chair Meyer asked how the Alaska system's tuition rate
compares to other states. Ms. Pitney replied that for four-
year tuition, Alaska ranks in the lower third. Co-Chair
Meyer asked who qualifies for the UA Scholars program. Ms.
Pitney replied that the top ten percent of graduating
students qualify for the program; however, UA Scholars no
longer pays for full tuition. Co-Chair Meyer suggested
taking the top five percent for UA Scholars and the next
five percent for financial aid assistance for low income
students. Ms. Pitney addressed the university's role in the
needs-based approach, including the Tuition Assistance
Grant.
2:55:48 PM
Representative Kelly wondered if this amendment item was
included in the regents' request. Ms. Pitney said it was
not.
Representative Gara clarified that this amendment request is
at the recommendation of the regents. He spoke of Alaska's
ranking in affordability and the lack of aid provided to
needs-based students. He explained the difference between
the Alaska Advantage program and university grants for
higher and lower income ranges.
Representative Kelly related other financial aid options for
students.
2:58:39 PM
Representative Hawker observed that university funding has
been increased to $335 million in general funds over the
past two years.
Co-Chair Meyer MAINTAINED his OBJECTION. He pointed out
that Alaska's tuition is in the lower third, scholarships
are offered to students, Native Corporations offer student
grants, and students receive PFD's.
Representative Gara emphasized that it is difficult to
attend college in Alaska without financial aid.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Foster, Hawker, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
3:02:08 PM
Representative Gara MOVED to ADOPT DEED Amendment #3:
OFFERED BY: Representative Gara
DEPARTMENT: Education and Early Development
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Head Start Grants
ADD: $630,000 GF
EXPLANATION: This amendment will provide additional
general funds to the grants line of the Head Start
program. State Head Start funding has remained flat
for many years, and the current budget proposes flat
state funding again. In real terms, that constitutes a
funding reduction. National studies show that children
who participate in quality preschools are more likely
to graduate from high school than other children, are
less likely to need expensive special education or
remedial services, and are more likely to attend
college and be employed later in life.
Alaska has no statewide early education program, and
Head Start has been struggling to meet growing demand
with flat or decreased funding. Since 2003, the Head
Start program has been forced to eliminate services to
361 children, close services in 6 communities, reduce
classroom hours, change program options, scale back
transportation services, freeze staff wages, defer on-
going maintenance and repairs to facilities, and rely
more heavily on in kind donations from the communities
for the provision of some essential services. The
proposed increment would help keep this proven
successful program in place until a statewide pre-
school program can be implemented.
Co-Chair Meyer OBJECTED.
Representative Gara spoke in support and explained the
amendment would add $630,000 for Head Start. He pointed out
how federal funding has been reduced for Head Start.
Co-Chair Meyer acknowledged the good of the program and
stressed that the amendment would be exceeding the amount
needed for a federal match. He related other early learning
programs and maintained that the funds were not needed for
them.
Representative Crawford observed the degree of importance
the program has for his constituents. He maintained that it
is "one of those right things to do."
Representative Nelson noted that the program is flat funded.
She pointed to the price of inflation and maintained that
there is an 11 - 13 percent cut with expenses factored in.
Six programs have been closed, affecting 361 students.
Children that are not read to, come to school disadvantaged.
Early education counters the lack of parental involvement.
Representative Gara noted that there would be no additional
classrooms. The intent is to open opportunities. Fewer
kids will have early learning opportunities if there is no
action.
3:12:11 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Foster, Hawker, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
Representative Gara MOVED to ADOPT Amendment DEED 4:
OFFERED BY: Representative Gara
DEPARTMENT: Language Section
APPROPRIATION: Fund Capitalization
ALLOCATION: Education Loan Fund
ADD: "The sum of $20,000,000 is
appropriated from Alaska Student Loan
Corporation receipts to the
education loan fund (AS 14.42.210)."
FUNDING SOURCE: Alaska Student Loan Corporation
receipts
EXPLANATION: Appropriates money to fund need-based
education grants for students attending Alaskan
institutions, reinserting what was in the language
section of the Governor's original budget. The
transfer of $20 million from the Alaska Student Loan
Corporation to the Education Loan Fund will provide
approximately $1 million/year in income to be used for
needs-based financial aid grants. Because it would
restrict use of corporate assets to a non-loan purpose
the ASLC regards this appropriation as a return of
capital to the State. ASLC intends to complete the
return of capital in FY 09 with $40 million transfer of
bond proceeds. The principal will not be spent and
could be returned to the state for appropriation for
other purposes in the future.
Co-Chair Meyer OBJECTED.
Representative Gara observed that the amount requested was
in the governor's budget and would be a fund transfer, not a
fund expenditure.
Ms. Kelly explained that the concern was the transfer from
the Alaska Student Loan Corporation receipts. The transfer
was removed in order to allow the fund to be set up for its
own purpose.
Representative Gara WITHDREW Amendment DEED #4.
3:15:43 PM
Representative Nelson MOVED to ADOPT Amendment DEED #5:
OFFERED BY: Representative Nelson
DEPARTMENT: Education and Early Development
APPROPRIATION: See attached language section.
ADD: $250.0 GF
EXPLANATION: This amendment will provide funding for
charter schools around the state that have less than
150 students. These charter schools receive less
funding per student because they are funded as if they
are part of the largest school in their district. The
marginal funding received for each additional student
at a large school is insufficient to operate a charter
school. For the past three years, the legislature has
appropriated $106,000 - $250,000 to the small charter
schools to partially compensate for this huge
discrepancy.
Page 60, following line 8:
Insert a new subsection to read:
"(d) The sum of $250,000 is appropriated from the
general fund to the Department of Education and Early
Development for the fiscal year ending in June 30,
2008, for payment as grants to each school district
that operates a charter school with an average daily
membership of less than 150 for support of those
charter schools in those districts. The amount
appropriated for grants by this subsection is to be
allocated among eligible school districts in the
proportion that the average daily membership of the
eligible charter schools in a district bears to the
total average daily membership of all eligible charter
schools in all school districts that operate an
eligible charter school."
Co-Chair Meyer OBJECTED.
Representative Nelson observed that the amendment would
affect charter schools [and others] with under 150 students.
Schools with less than 150 students receive funding at a
reduced rate as part of the largest school in their
district. She spoke in support of the amendment.
Co-Chair Chenault acknowledged the advantage of having
smaller class size.
Representative Nelson observed that Juneau, Bethel, Homer,
Fairbanks, and Nome have charter schools.
3:19:24 PM
Co-Chair Meyer explained why the number 150 was determined.
He argued against continued subsidizing of the charter
schools.
Representative Gara spoke in support of the funding.
Co-Chair Chenault argued against it.
3:23:16 PM
Representative Nelson noted that this item has been funded
for the past three years. She offered to amend Amendment
DEED #5.
Co-Chair Meyer argued against continued funding. He
MAINTAINED his OBJECTION.
Representative Stoltze spoke highly of charter schools, but
agreed that this is a temporary fix. He preferred to look
at this issue through statute.
Representative Nelson noted that she would continue to work
on this issue.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Foster, Hawker, Chenault,
Meyer
The MOTION FAILED (4-7).
3:27:22 PM
Representative Foster MOVED to ADOPT Amendment DMVA #1:
OFFERED BY: Representative Foster
DEPARTMENT: Military and Veterans Affairs
APPROPRIATIONS: Military and Veterans Affairs
ALLOCATION: Veterans Services
ADD: $50.0 GF
ADD WORDAGE: "It is the intent of the
legislature that, whenever possible, the Department of
Military and Veterans Affairs use existing services to
provide formal recognition and discharge for Alaska
Territorial Guard members in the most expedient manner
possible."
APPROPRIATION: Alaska National Guard Benefits
ALLOCATION: Educational Benefits
ADD: $30.0 GF
ADD WORDAGE: "It is the intent of the legislature that
the Alaska National Guard's education tuition
assistance program be funded at a level adequate to
provide the benefit to all qualified applicants. If
the appropriation under this section is insufficient to
provide the benefit to all qualified applicants, the
Department of Military and Veterans' Affairs shall make
a request for supplemental to cover the shortfall."
Adjust the funding sources accordingly.
Co-Chair Meyer OBJECTED.
PAUL LABOLLE, STAFF, REPRESENTATIVE FOSTER, explained that
the first part of the amendment allows members of the Alaska
Territorial Guard to receive formal recognition and
discharge.
Representative Stoltze asked about benefits for Alaska
National Guard members. Mr. Labolle said this is the same
issue.
Representative Gara spoke in support of the amendment.
3:29:59 PM
Mr. Labolle explained the second part of DMVA #2. There was
an under funding of educational benefits and the amendment
helps to correct that.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
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