Legislature(2001 - 2002)

03/11/2001 12:28 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
hb104                                                                                                                           
HOUSE BILL NO. 103                                                                                                            
                                                                                                                                
     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, from the  constitutional budget                                                                   
     reserve fund; and providing for an effective date.                                                                         
                                                                                                                                
HOUSE BILL NO. 104                                                                                                            
                                                                                                                                
     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.                                                                                                         
                                                                                                                                
DEPARTMENT OF EDUCATION                                                                                                       
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT DEED-#1.                                                                                         
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department Education & Early Development                                                                    
     BRU            Early Development                                                                                           
     Component      Head Start Grants                                                                                           
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     ILTF                      $100,000                                                                                         
                                                                                                                                
Co-Chair Mulder  explained that  the amendment would  provide                                                                   
increased funding  for Head Start  Programs.  The  money will                                                                   
act  as  match funding  in  order  to  bring in  $500,000  in                                                                   
federal funds.                                                                                                                  
                                                                                                                                
Representative  Davies interjected that  Head Start  has been                                                                   
one of the most studied education  programs and has proven to                                                                   
be  a highly  effective program.    He hoped  that the  State                                                                   
would continue  to fund  the Head  Start Program and  capture                                                                   
all federal funding available to that program.                                                                                  
                                                                                                                                
There being NO OBJECTION, DEED-#1 was adopted.                                                                                  
                                                                                                                                
Co-Chair Mulder AMENDED and MOVED  to ADOPT Amendment DEED-2.                                                                   
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Teaching and Learning Support                                                                          
     Component           Education Special Projects                                                                             
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     General Fund Match        $20.0                                                                                            
                                                                                                                                
Co-Chair Mulder  explained that the proposed  amendment would                                                                   
restore $20.0 to the Americorp Program.                                                                                         
                                                                                                                                
There being NO OBJECTION, DEED-#2 was adopted.                                                                                  
                                                                                                                                
Co-Chair Mulder  AMENDED and MOVED  to ADOPT Amendment  DEED-                                                                   
#3.                                                                                                                             
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Pupil Transportation                                                                                   
     Component           Pupil Transportation                                                                                   
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     AHFC Dividend             $1,000.0                                                                                         
                                                                                                                                
Co-Chair Mulder  explained that the proposed  amendment would                                                                   
increase  pupil  transportation  funding.    In  response  to                                                                   
concerns  voiced  by Representative  Croft,  Co-Chair  Mulder                                                                   
explained that the  attempt was to keep the  amount of growth                                                                   
to  a minimum,  recognizing that  pupil  transportation is  a                                                                   
long-term cost.   He noted that  they recognize that  this is                                                                   
an early  point in the budget  process and that  the dividend                                                                   
at this point is a "place" holder.                                                                                              
                                                                                                                                
Representative Davies noted that  there is an additional $1.4                                                                   
million required  to cover the expected  pupil transportation                                                                   
funding.  He stated that to fully  cover those costs, it will                                                                   
end  up   coming  out   of  the   classroom  or  some   other                                                                   
administrative part of the education budget.                                                                                    
                                                                                                                                
Co-Chair Mulder  stated that the local school  districts will                                                                   
have to  come up with  the extra funds.   He emphasized  that                                                                   
this  year, there  is $5  million additional  dollars.   Last                                                                   
year,  there  was  a  one-time  fund  source  of  $4  million                                                                   
dollars.   He believed that  the State is making  significant                                                                   
progress.    Most  of  the  pupil  transportation  costs  are                                                                   
related  to  the five-year  contracts.    The State  has  not                                                                   
realized savings  from kids taking  the bus.   The Department                                                                   
has aligned their  contracts in the Anchorage  area with four                                                                   
or five contract bids.                                                                                                          
                                                                                                                                
Representative   Davies   understood    that   through   that                                                                   
alignment, the rate of growth had been reduced.                                                                                 
                                                                                                                                
Representative  Croft   interjected  that  he   did  have  an                                                                   
amendment to fully  fund pupil transportation.   He commented                                                                   
that he would  modify his amendment to reflect  action of the                                                                   
Committee on the proposed amendment.                                                                                            
                                                                                                                                
There being NO OBJECTION, DEED-#3 was adopted.                                                                                  
                                                                                                                                
Representative  Davies  MOVED   to  ADOPT  DEED-#4.  Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Executive Administration                                                                               
     Component           Commissioner's Office                                                                                  
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     General Fund              $33.5                                                                                            
     I/A Receipts              $31.4                                                                                            
                                                                                                                                
Representative  Davies  explained  that the  amendment  would                                                                   
restore the reduction  made in Subcommittee to  eliminate the                                                                   
part-time Special Assistant in the Commissioner's Office.                                                                       
                                                                                                                                
Co-Chair  Mulder commented  that  the Subcommittee  has  been                                                                   
trying  to create  efficiencies  within the  Department.   He                                                                   
advised that  position has been  eliminated for  three years.                                                                   
He noted that the  position does not "go away"  even if it is                                                                   
not funded.                                                                                                                     
                                                                                                                                
Representative  Davies argued that  the Legislature  has been                                                                   
encouraging efficiencies for five  years.  The Department has                                                                   
been  cutting into  "bare bones"  ability  to execute  timely                                                                   
work.                                                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Davies  MOVED  to ADOPT  DEED-#5.    Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Teaching & Learning Support                                                                            
     Component           Quality Schools                                                                                        
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     General Funds             $2,000.0                                                                                         
                                                                                                                                
Representative Davies  explained that the  amendment includes                                                                   
funding requested  by the  Governor's Education  Funding Task                                                                   
Force for incentives for high performing schools.                                                                               
                                                                                                                                
Representative J.  Davies spoke to the Task  Force, which was                                                                   
a  bipartisan task  force,  well balanced  with  participants                                                                   
from the  PTA and broad ranging  task force.  They  looked at                                                                   
the  recommendations from  the entire  State.   It was  their                                                                   
opinion  in making  the transition  to the  high stake  exist                                                                   
exams and increased  accountability that the  State will need                                                                   
incremental funding.   The  amendment provides "carrots"  for                                                                   
those schools that have shown significant performance.                                                                          
                                                                                                                                
Co-Chair Mulder countered that  the issue did not come before                                                                   
the  Subcommittee.   He  was not  convinced  that the  system                                                                   
would  change.    The Department  has  not  yet  submitted  a                                                                   
proposal of how to change the current challenges.                                                                               
                                                                                                                                
Representative  J. Davies stated  that was  the point  of the                                                                   
educational  summit that  happened last  year to address  the                                                                   
exit exam.   They considered on a district-by-district  basis                                                                   
what the  results were.  He  emphasized that a great  deal of                                                                   
work had  been done  on that  concern.   Following that,  the                                                                   
Task  Force recommended  changes.   Those  changes cannot  be                                                                   
made without additional resources.   There must be transition                                                                   
money.  He noted that he was surprised  that the Subcommittee                                                                   
had  not received  a  presentation  by the  Task  Force.   He                                                                   
recommended that  the Legislature should provide  a forum for                                                                   
the work produced by the Task Force.                                                                                            
                                                                                                                                
Representative  Croft  interjected  that  the  State  can  no                                                                   
longer  afford  to be  in  status  quo  with education.    He                                                                   
stressed that this  is important public policy  issue.  Vice-                                                                   
Chair Bunde agreed  that the State does not  want to continue                                                                   
with the status quo situation,  however, did not believe that                                                                   
the amendment was necessary.                                                                                                    
                                                                                                                                
Representative  Harris  recommended  that  the  amendment  be                                                                   
included  in  some  of  the  education  legislation  that  is                                                                   
currently floating around the Legislature.                                                                                      
                                                                                                                                
Representative  Davies  advised  that  the  report  had  been                                                                   
available  since February  1st.   The Task  Force provided  a                                                                   
serious attempt  to deal with an imminent  statewide problem,                                                                   
identifying  problems with  education.   He  asked where  the                                                                   
Legislature would identify the fundamental problem.                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
     IN FAVOR:      Davies, Moses, Croft                                                                                        
     OPPOSED:       Harris, Hudson, Lancaster, Whitaker,                                                                        
                    Bunde, Williams, Mulder                                                                                     
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative  Davies  MOVED  to ADOPT  DEED-#6.    Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Teaching & Learning Support                                                                            
     Component           Quality Schools                                                                                        
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Funds             $2,000.0                                                                                         
                                                                                                                                
Representative  Davies  noted  that  the  amendment  includes                                                                   
funding requested  by the  Governor's Education  Funding Task                                                                   
Force for the Center for School Excellence.                                                                                     
                                                                                                                                
He noted that  unless the law is changed, beginning  in 2002,                                                                   
students must pass a competency  exam to receive a diploma in                                                                   
Alaska.   In order to be  legally defensible, the  State must                                                                   
demonstrate that  intervention activities have  been provided                                                                   
for those students at risk of not receiving a diploma.                                                                          
                                                                                                                                
Representative Davies noted that there are two issues:                                                                          
     ·    The test and                                                                                                          
     ·    The tools needed to pass the test.                                                                                    
                                                                                                                                
Representative  J. Davies  commented that  the test  would be                                                                   
challenged if the State's education system is not improved.                                                                     
                                                                                                                                
Vice-Chair Bunde  noted that Legislative Legal  Services have                                                                   
indicated  that the Alaska  State exit  tests are  currently,                                                                   
legally defensible.    Representative  J. Davies  stated that                                                                   
there are  two issues, one being  the test and one  being the                                                                   
educational  effort put  forward by  the State  to help  pass                                                                   
that test.                                                                                                                      
                                                                                                                                
Co-Chair Mulder  reminded members of  changes made in  SB 36,                                                                   
and  the  foundation  formula $4  million  dollars  addition.                                                                   
Last year, $6  million dollars a year was added  for learning                                                                   
opportunity grants.   He surmised  that the State has  made a                                                                   
substantial contribution to these concerns.                                                                                     
                                                                                                                                
TAPE HFC 01 - 49, Side B                                                                                                      
                                                                                                                                
Representative  Davies   reminded  members  of   last  year's                                                                   
reduction in  funds.   He mentioned the  fixed costs  of each                                                                   
school district.  He stressed  that the school districts have                                                                   
had to make  difficult decisions to accommodate  these costs.                                                                   
He  emphasized   that  the  Task   Force  were   not  "casual                                                                   
observers".  They  made recommendations that  the funding was                                                                   
needed.   Co-Chair  Mulder countered  that Representative  J.                                                                   
Davies was  placing the Task Force  at a level  of legitimacy                                                                   
that he did not agree with.                                                                                                     
                                                                                                                                
Representative  Croft  reaffirmed   that  the  House  Finance                                                                   
Committee  was  the place  where  a discussion  on  education                                                                   
should  occur.   If money  was going  to be  placed into  the                                                                   
education budget,  the House Finance  Committee is  the place                                                                   
where it should happen.                                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Davies  MOVED  to ADOPT  DEED-#7.    Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Alyeska Central School                                                                                 
     Component           Alyeska Central School                                                                                 
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     $1,000.0                  General Funds                                                                                    
                                                                                                                                
Representative  Davies  noted  that  the  amendment  includes                                                                   
funding requested  by the  Governor's Education  Funding Task                                                                   
force  for distance  delivered  core courses  based on  State                                                                   
standards to  be offered to high  schools with fewer  than 50                                                                   
students.                                                                                                                       
                                                                                                                                
Co-Chair Mulder countered  that there is merit  to the focus,                                                                   
however,  he  did  not  know  how  it  could  be  effectively                                                                   
administered  or  applied.    He observed  that  he  was  not                                                                   
comfortable  that  it  could  be  a  service  that  would  be                                                                   
utilized by the rural schools.                                                                                                  
                                                                                                                                
Representative Davies  emphasized there if there  were not an                                                                   
opportunity for the Task Force  to have a hearing, there will                                                                   
not be  any input  regarding these  concerns. He  recommended                                                                   
that the work  of that group be recognized.   Co-Chair Mulder                                                                   
commented that  the discussion would happen,  however, he did                                                                   
not know  if the Committee  would agree  with the  outcome of                                                                   
that work.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Williams,                                                                     
               Mulder                                                                                                           
                                                                                                                                
Representative  Whitaker   and  Vice-Chair  Bunde   were  not                                                                   
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Davies MOVED to  ADOPT Amendment DEED-#8.  Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Early Development                                                                                      
     Component           Childcare Assistance and Licensing                                                                     
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     General Fund              $427.6                                                                                           
                                                                                                                                
Representative  J. Davies  noted  that the  Subcommittee  had                                                                   
reduced the funding  for the childcare subsidy  program.  The                                                                   
reduction represents  the state  general fund portion  of the                                                                   
FY02 budget request,  which also included $3  million dollars                                                                   
from  welfare  reform  savings.   If  the  level  of  funding                                                                   
proposed is not sufficient to  provide childcare subsidies to                                                                   
eligible  families,  the Department  will  seek  supplemental                                                                   
funding in FY02.                                                                                                                
                                                                                                                                
Co-Chair  Mulder advised  that  the childcare  wait list  has                                                                   
been effectively  eliminated.   He  stated that  it is  not a                                                                   
mandated  function  that  the  State provides  any  level  of                                                                   
funding to  that component.   He noted  that extra  funds had                                                                   
been added to that component last year.                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster,  Williams,                                                                    
               Mulder                                                                                                           
                                                                                                                                
Vice-Chair  Bunde   and  Representative  Whitaker   were  not                                                                   
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative  Davies  MOVED  to ADOPT  DEED-#9.    Co-Chair                                                                   
Mulder asked  if Representative  Davies wanted to  change the                                                                   
BRU  and Component.   Representative  Davies understood  that                                                                   
this was  for early involvement.    Representative  J. Davies                                                                   
stated that  he did not want  to make those changes  as these                                                                   
concerns  address  parent  involvement  and  early  childhood                                                                   
issues.                                                                                                                         
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education and Early Development                                                                        
     BRU                 TLS                                                                                                    
     Component           Special Programs                                                                                       
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                       
     General Fund              $1,000.0                                                                                         
                                                                                                                                
Representative  Davies explained  that  this increment  would                                                                   
fund  a  new  program  of  professional  development,  parent                                                                   
education,  and  training  opportunities  to  support  parent                                                                   
involvement  with  their  children's   literacy  development,                                                                   
education, and over all health and development                                                                                  
                                                                                                                                
BETH NORDLUND,  SPECIAL ASSISTANT, DEPARTMENT OF  EDUCATION &                                                                   
EARLY DEVELOPMENT, explained that  the Subcommittee had moved                                                                   
some things from  Early Development to Teaching  and Learning                                                                   
Support (TLS).                                                                                                                  
                                                                                                                                
Representative J.  Davies noted that the  Department objected                                                                   
to making  the changes  from Early  Development  to TLS.   He                                                                   
emphasized  that  this  is very  much  an  early  development                                                                   
issue.  The point is to support  parents that have very young                                                                   
children to learn more about issues  of literacy development.                                                                   
                                                                                                                                
Co-Chair Mulder  explained why these early programs  had been                                                                   
shifted to TLS.                                                                                                                 
                                                                                                                                
Representative  Davies   restated  the  amendment   with  the                                                                   
changes as noted.  He MOVED the  amended amendment.  Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
Co-Chair  Mulder stated  that  the Department  did receive  a                                                                   
grant  for $2.5  million dollars  for a  program called  Even                                                                   
Start, which could accomplish  those goals with that funding.                                                                   
He  opposed   paying  parents   to  get  involved   in  their                                                                   
children's education.                                                                                                           
                                                                                                                                
Representative Davies  argued that the reality  is that there                                                                   
are many kids for  which it is a miracle if  they are able to                                                                   
show up  at all.  The more  help that these  children receive                                                                   
at a young age the better off they will be.                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Croft, Moses, Davies                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Croft  MOVED to  AMEND  DEED-#10,  indicating                                                                   
$15.0 thousand dollars.  Representative  Croft MOVED to adopt                                                                   
DEED-#10.  Co-Chair Mulder OBJECTED.                                                                                            
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Early Development                                                                                      
     Component           Special Programs                                                                                       
                                                                                                                                
     FUNDING SOURCE            AMOUNT                                                                                           
     General Funds             $15.0                                                                                            
                                                                                                                                
Representative Croft  noted that the amendment  would restore                                                                   
the personal services reduction.                                                                                                
                                                                                                                                
Representative  Croft   commented  that  the   Subcommittee's                                                                   
decrement in general fund, impacts  the ability of the Alaska                                                                   
State Community  Service Commission  to meet their  match for                                                                   
administrative  funds  for  the  federally  funded  community                                                                   
service/volunteerism program.                                                                                                   
                                                                                                                                
Approximately  $2  million  federal grant  fund  dollars  are                                                                   
available  to  Alaska  for  the program  with  a  very  small                                                                   
administrative  match.    The   reduction  would  impact  the                                                                   
commission's  ability  to  administer   funds  and  meet  the                                                                   
Federal program requirements.                                                                                                   
                                                                                                                                
Vice-Chair Bunde commented that  the program would be able to                                                                   
adequately move  forward with  the additional funds  provided                                                                   
in the previous amendment.                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Davies  MOVED to  ADOPT  DEED-#11.   Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Teaching & Learning Support                                                                            
     Component           Quality Schools                                                                                        
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $74.3                                                                                            
                                                                                                                                
Representative Davies stated that  the amendment would fund a                                                                   
full  time   Education  Specialist   to  administer   to  the                                                                   
Statewide Correspondence Program.                                                                                               
                                                                                                                                
EDDY JEANS,  SCHOOL FINANCE MANAGER, DEPARTMENT  OF EDUCATION                                                                   
&  EARLY  DEVELOPMENT,  explained  that  there  has  been  an                                                                   
increase in  statewide correspondence programs  being offered                                                                   
by school districts.  The Department  does not have the staff                                                                   
to oversee and monitor the need  of regulations developed for                                                                   
the program.                                                                                                                    
                                                                                                                                
Representative J.  Davies asked if General  Education Diploma                                                                   
(GED) students  would  utilize the services  outlined  in the                                                                   
amendment.  Mr. Jeans stated they would not.                                                                                    
                                                                                                                                
Co-Chair  Mulder  voiced  opposition  to  the  amendment  and                                                                   
commented  that it was  a situation  of "loving something  to                                                                   
death".                                                                                                                         
                                                                                                                                
Representative Davies  noted that the students  are "dragging                                                                   
their feet" and there is no one  in the Department to address                                                                   
the  problem.   Co-Chair  Mulder disagreed.    Representative                                                                   
Davies emphasized  that it  is difficult  for kids  to access                                                                   
services  without   the  proper   staff.    Co-Chair   Mulder                                                                   
commented that  it is a question  of how much  regulation and                                                                   
oversight should be put on the entity.                                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Harris, Hudson, Lancaster, Whitaker, Bunde,                                                                      
               Williams, Mulder                                                                                                 
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative  Croft  MOVED  to ADOPT  DEED-#12.    Co-Chair                                                                   
Mulder OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department          Education & Early Development                                                                          
     BRU                 Teaching & Learning Support                                                                            
     Component           Quality Schools                                                                                        
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Funds             $730.0                                                                                           
                                                                                                                                
Representative  Croft  stated  that  the  amendment  includes                                                                   
funding requested  by the  Governor's Education  Funding Task                                                                   
Force for an increase in the Department's  capacity to gather                                                                   
and  report  data  for  schools and  to  provide  support  to                                                                   
schools in the collection and reporting of information.                                                                         
                                                                                                                                
Mr. Jeans added  that the amendment was recommended  from the                                                                   
Governor's  Statewide   Task  Force.    He   noted  that  the                                                                   
information would be used to identify  student's performance.                                                                   
                                                                                                                                
Co-Chair Mulder  did not  agree with  placing that  amount of                                                                   
money would  change the current  problems that  students have                                                                   
in passing the test. He believed  that sufficient funding has                                                                   
been added to address that concern.                                                                                             
                                                                                                                                
Representative   Davies  interjected   that  the  nature   of                                                                   
education  is  changing.   The  amendment would  provide  two                                                                   
technical positions that would  provide analysis of the data.                                                                   
If the  exit exam were to  be administered, the  funding from                                                                   
the   amendment  would   provide  a   tremendous  amount   of                                                                   
information available for educational concerns.                                                                                 
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE  OF MANAGMENT AND BUDGET,                                                                   
OFFICE  OF THE  GOVERNOR, spoke  to the  benefits, which  the                                                                   
data could provide.   She insisted that it  is essential that                                                                   
the issues be analyzed and that these tools are available.                                                                      
                                                                                                                                
TAPE HFC 01 - 50, Side A                                                                                                      
                                                                                                                              
Ms.  McConnell  responded  that   the  information  has  been                                                                   
available and  pointed out  that the Task  Force would  be in                                                                   
Juneau on the 19th of March.                                                                                                    
                                                                                                                                
Representative Croft  questioned if the  bar is at  the right                                                                   
height. He  emphasized that  this is  the time to  understand                                                                   
the data.                                                                                                                       
                                                                                                                                
Representative Davies stressed  that setting the cut score is                                                                   
a major issue.                                                                                                                  
                                                                                                                                
Mr.  Jeans  noted that  book  marking  would be  an  on-going                                                                   
expense because  the test will  have to be re-evaluated.  Co-                                                                   
Chair Mulder  concluded that Representative  Davies' concerns                                                                   
were addressed  in the base. Representative  Davies responded                                                                   
that the department is requesting additional assistance.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED-13:                                                                          
                                                                                                                                
     Add:                                                                                                                       
     BRU            Teaching & Learning Support                                                                                 
     Component      Quality Schools                                                                                             
     General Funds       $2,000.0                                                                                               
                                                                                                                                
     Assistance for Low Performing Schools.                                                                                     
                                                                                                                                
     This  amendment   includes  funding  requested   by  the                                                                   
     Governor's Education  Funding Task Force  for Assistance                                                                   
     for Low Performing Schools.                                                                                                
                                                                                                                                
     ** Unless changed, beginning  in 2002 students must pass                                                                   
     a competency  exam to receive  a diploma in Alaska.   In                                                                   
     order  to   be  legally   defensible,  the   state  must                                                                   
     demonstrate  that  intervention   activities  have  been                                                                   
     provided for  those students at risk of  not receiving a                                                                   
     diploma.                                                                                                                   
                                                                                                                                
Co-Chair Mulder  emphasized that the formula  has been funded                                                                   
to the statutorily  required limit. He noted  that enrollment                                                                   
has  had  a  moderate  reduction.   Property  tax  assessment                                                                   
increases and  federal impact aid have  increased, decreasing                                                                   
state support. He acknowledged  that the state's contribution                                                                   
has  been   reduced.   He  observed  that   the  task   force                                                                   
recommended $34  million dollars in additional  contribution.                                                                   
He observed  that it would  take a head  tax of  $250 dollars                                                                   
per working person to pay for the initiative.                                                                                   
                                                                                                                              
Representative  Davies  pointed out  that  students would  be                                                                   
denied diplomas  in the next  year. He questioned  what would                                                                   
be done to help  low performance schools. He  stressed that a                                                                   
plan  should   be  in  place.   He  pointed  out   that  some                                                                   
communities are  up against the  property tax cap  and cannot                                                                   
offset the  decrease in [state  funding]. He maintained  that                                                                   
there are good  schools in the state of Alaska.  The state is                                                                   
above the  national average.  He stressed  that the  paradigm                                                                   
for education has shifted.                                                                                                      
                                                                                                                                
Vice-Chair Bunde observed that  10 percent of the students do                                                                   
not currently receive diplomas.                                                                                                 
                                                                                                                                
Representative  Davies  responded   that  there  would  be  a                                                                   
substantial change  in procedures  [by implementation  of the                                                                   
exit exam],  in that  students that  would otherwise  receive                                                                   
diplomas would be denied.                                                                                                       
                                                                                                                                
Co-Chair  Mulder stressed  that the change  is outcome  based                                                                   
and felt that the change was positive.  Representative Davies                                                                   
responded  that the program  is complex  and emphasized  that                                                                   
there are no simple conclusions.                                                                                                
                                                                                                                                
Representative  Hudson asked  why  the formula  is not  being                                                                   
addressed to give schools additional  funding if that is what                                                                   
is  needed. He  questioned  how funds  would  be directed  to                                                                   
address the concerns identified in the amendments.                                                                              
                                                                                                                                
Representative  Davies  agreed  that the  formula  should  be                                                                   
addressed    and    possibly     modified.    He    discussed                                                                   
recommendations  of the Governor's  Task Force on  Education.                                                                   
The Task Force  concluded that schools that  were designated,                                                                   
as low  performing  would access  the funds  based on a  plan                                                                   
developed   by  the   Department  of   Education  and   Early                                                                   
Development. The  funds would  be distributed in  awards from                                                                   
$10 -  $100 thousand dollars depending  on the size  and type                                                                   
of school. The appropriation of  $2 million dollars in grants                                                                   
would be decreased as performance increases.                                                                                    
                                                                                                                                
Representative Croft argued that  the funds would be targeted                                                                   
to  schools  that  need  them   most.  He  pointed  out  that                                                                   
legislators  wrote the  formula and implied  that they  could                                                                   
change the  formula. He maintained  that $14 million  dollars                                                                   
of the cost of  education is being shifted from  the state to                                                                   
local governments  through the  shift in federal  impact aid,                                                                   
addressed in  SB 36. He discussed  the performance of  one of                                                                   
the  schools in  his district  (North Star).  He pointed  out                                                                   
that the  amendment only  proposes an  additional $2  million                                                                   
dollars. A $250 dollar tax per  working person would fund all                                                                   
of the  Task Force  proposals, which  would cost $34  million                                                                   
dollars.                                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde, Foster, Harris,  Lancaster, Whitaker, Mulder                                                                   
                                                                                                                                
Representatives  Hudson  and Williams  were  absent from  the                                                                   
vote.                                                                                                                           
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED-14:                                                                          
                                                                                                                                
     Add:                                                                                                                       
     BRU            Early Development                                                                                           
     Component      Head Start                                                                                                  
     General Funds 562.4                                                                                                        
                                                                                                                                
     This adds  in General funds that would  support Alaska's                                                                   
     Head  Start grantees  in  applying for  and receiving  a                                                                   
     projected   $3,312.0   available  in   federal   program                                                                   
     expansion  funds.  These   federal  funds  are  provided                                                                   
     directly to  the Head Start  Grantees and require  a 20%                                                                   
     match.                                                                                                                     
                                                                                                                                
     These  new  federal  expansion  funds will  be  used  to                                                                   
     expand  services to  approximately 325  children in  6-8                                                                   
     communities.                                                                                                               
                                                                                                                                
     Absence of  increased state funds will  require grantees                                                                   
     to locate local sources to  meet the match requirements.                                                                   
                                                                                                                                
Representative Croft observed  that the amendment was reduced                                                                   
by  $100  thousand dollars  previously  appropriated  by  the                                                                   
Committee. He noted  that 11 different studies  over the last                                                                   
15  years  have shown  that  Head  Start helps  children  and                                                                   
results in substantial savings.                                                                                                 
                                                                                                                                
Vice-Chair   Bunde   acknowledged   the  benefit   of   early                                                                   
educational programs.  He noted that local grantees  would be                                                                   
required  to come  up with  the match  and felt  that it  was                                                                   
appropriate  for   local  communities  to  put   forward  the                                                                   
contributions.                                                                                                                  
                                                                                                                                
Co-Chair Mulder  suggested that local communities  could step                                                                   
up to the plate.                                                                                                                
                                                                                                                                
Representative  Davies pointed  out  that it  is a  statewide                                                                   
issue.  Anchorage has  the biggest  number  of children  that                                                                   
would  be served by  the program.  He observed  that only  25                                                                   
percent of  the federal  funding is being  captured due  to a                                                                   
lack of match.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Mulder                                                                                                      
                                                                                                                                
Representative Williams was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED-15:                                                                          
                                                                                                                                
     Add:                                                                                                                       
     Education Support Services                                                                                                 
     District Support Services                                                                                                  
     $350.0 General fund                                                                                                        
                                                                                                                                
     District  Cost  Factor Study.  This  amendment  includes                                                                   
     funding  requested by the  Governor's Education  Funding                                                                   
     Task Force for a District Cost Factor (DCF) Study.                                                                         
                                                                                                                                
     According  to the Department,  without these  funds, the                                                                   
     Department will  be unable to comply with  the statutory                                                                   
     requirement to  recommend updates to DCFs  on a biennial                                                                   
     basis.                                                                                                                     
                                                                                                                                
Representative  Croft spoke in  support of the  amendment. He                                                                   
referred to the  Task Force Recommendations.  He stressed the                                                                   
need to assure  that the cost factors used  in the foundation                                                                   
formula are reasonable.  He maintained that the  cost factors                                                                   
methodology was flawed.                                                                                                         
                                                                                                                                
Co-Chair   Mulder   acknowledged   that   the   request   was                                                                   
meritorious. He  pointed out that it  is a one time  cost and                                                                   
suggested that it could be addressed in the capital budget.                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED-16:                                                                          
                                                                                                                                
     Add:                                                                                                                       
     Pupil Transportation                                                                                                       
     $1,467,00 General fund                                                                                                     
                                                                                                                                
     This amendment will provide full funding for the                                                                           
     projected Pupil Transportation costs for FY02.                                                                             
                                                                                                                                
     The Subcommittee funded Pupil Transportation at 95%. If                                                                    
     full funding is not received, the Department will be                                                                       
     back with a Supplemental next year.                                                                                        
                                                                                                                                
Representative  Croft spoke in  support of the  amendment. He                                                                   
explained that  increases in pupil transportation  costs were                                                                   
the result  of a single  contract. Multiple bids  were issued                                                                   
and the  cost rate growth has  slowed from 12 percent  to 2-3                                                                   
percent. He emphasized the direct impact to schools.                                                                            
                                                                                                                                
Co-Chair Mulder  stated that pupil transportation  was funded                                                                   
at  the  95  percentile.  He  thought  that  there  would  be                                                                   
additional focus on full funding,  but did not think that the                                                                   
state could afford more at the current moment.                                                                                  
                                                                                                                                
Representative Whitaker spoke in support of the amendment.                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Hudson, Lancaster, Whitaker, Moses                                                                     
OPPOSED: Bunde, Foster, Harris, Williams, Mulder                                                                                
                                                                                                                                
The MOTION PASSED (6-5).                                                                                                        
                                                                                                                                
RECESSED                                                                                                                      
                                                                                                                                
The Committee recessed at 3:01 p.m.                                                                                             
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
Reconvened at 3:18 p.m.                                                                                                         
                                                                                                                                
Co-Chair Williams MOVED to Rescind  the Committee's action in                                                                   
adopting  Amendment DEED-16.  Representative Croft  OBJECTED.                                                                   
Representative    Davies    spoke   against    the    motion.                                                                   
Representative Croft referred  to the open meeting guidelines                                                                   
and noted  that some  of the majority  members met  after the                                                                   
previous vote.                                                                                                                  
                                                                                                                                
Representative  Whitaker  observed  that  no vote  was  taken                                                                   
during  the meeting and  stated that  discussion centered  on                                                                   
strategy  regarding  the  education   budget.  Representative                                                                   
Hudson noted that  strategy issues could be  discussed during                                                                   
closed-door  meetings.  Representative   Harris  agreed  that                                                                   
members  could   iron  out  differences   during  closed-door                                                                   
meetings. Representative Lancaster  agreed that no votes were                                                                   
taken  and  a  majority  was  not  present  at  the  meeting.                                                                   
Discussion  ensued   regarding  caucus  decisions   and  open                                                                   
meetings.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
OPPOSED: Croft, Davies, Moses                                                                                                   
                                                                                                                                
The MOTION PASSED (8-3).                                                                                                        
                                                                                                                                
The  main motion  was  before the  committee.  Representative                                                                   
Croft argued in support of Amendment DEED-16.                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
DEPARTMENT OF LABOR                                                                                                           
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment LAB-1:      ~                                                                    
                                                                                                                                
     ADD                                                                                                                        
     BRU:       Employment Security                                                                                             
                                                                                                                                
     Component: Job Training Programs                                                                                           
     Fund Source                                   Amount                                                                       
     Technical Vocational Education Program Funds $4,553.8                                                                      
                                                                                                                                
     The  Employment Security  Division  (ESD), Job  Training                                                                   
     Programs  component, requests  a FY2002 budget  increase                                                                   
     of  $4,553.8  from  fund  code 1151  for  the  Technical                                                                   
     Vocational  Education Program  (TVEP). This request  was                                                                   
     inadvertently   excluded  from  ESD's   original  FY2002                                                                   
     budget submission.                                                                                                         
                                                                                                                                
     The Technical  Vocational Education Program  was created                                                                   
     July  1,  2000  by state  legislation  SB289  (AS  23.15                                                                   
     article  7).   The  Alaska  Human  Resource   Investment                                                                   
     Council (AHRIC),  housed in the Department  of Labor and                                                                   
     Workforce  Development,  was provided  oversight,  grant                                                                   
     administration and regulatory  powers over this program.                                                                   
     A new  TVEP fund account  was established and  one tenth                                                                   
     of  one   percent  from   the  employee's   Unemployment                                                                   
     Insurance (UI)  tax deposited in  the UI trust  fund was                                                                   
     transferred  to  the  TVEP program.  Under  the  AHRIC's                                                                   
     guidance,  the program provides  vocational training  in                                                                   
     one  or   more  program  elements,   including  industry                                                                   
     specific     training,    on-the-job    training     and                                                                   
     institutional or classroom training.                                                                                       
                                                                                                                                
     The majority of funds will  go to vocational programs as                                                                   
     identified  by  the  AHRIC,  with a  focus  on  training                                                                   
     programs  and  services in  high  wage and  high  demand                                                                   
     occupation areas.  It is anticipated  that approximately                                                                   
     1,500  participants  will  be served  with  these  funds                                                                   
     through grantees and contractors.                                                                                          
                                                                                                                                
Representative Davies  spoke in support of the  amendment. He                                                                   
noted that  the request was  inadvertently excluded  from the                                                                   
department's submission.                                                                                                        
                                                                                                                                
REMOND  HENDERSON,   DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT  OF  LABOR  AND  WORKFORCE  DEVELOPMENT                                                                   
spoke in  support of the request.  The funding is  the result                                                                   
of  legislation   passed  in  the  previous   year  (SB  289:                                                                   
Vocational   Education).  One   tenth  of   one  percent   of                                                                   
unemployment  insurance benefits is  directed to  the program                                                                   
for  vocational  education.  The  request  should  have  been                                                                   
included in the department's budget submission.                                                                                 
                                                                                                                                
RON   HULL,   ACTING   DIRECTOR,   DIVISION   OF   EMPLOYMENT                                                                   
SECURITIES,  DEPARTMENT OF  LABOR  AND WORKFORCE  DEVELOPMENT                                                                   
discussed  the program.  He explained  that the Council  will                                                                   
identify the  high wage, high  demand occupations  that would                                                                   
require training for Alaskans to fill.                                                                                          
                                                                                                                                
Co-Chair  Mulder   noted  that   funds  were  given   to  the                                                                   
University of  Alaska, Kotzebue  Technical Center  and Alaska                                                                   
Vocational  Technical   Center.  He   spoke  in   support  of                                                                   
continuing the program for another year.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment LAB-2:                                                                           
                                                                                                                                
     Vocational Rehabilitation                                                                                                  
     Independent Living Rehabilitation                                                                                          
     Add 90.0 GF                                                                                                                
                                                                                                                                
     Without this increment outreach services for people                                                                        
     with disabilities will not be able to expand to rural                                                                      
     areas.                                                                                                                     
                                                                                                                                
Representative Davies spoke in  support of the amendment. The                                                                   
appropriation  would allow an  increase of outreach  services                                                                   
for persons with disabilities  into rural areas of the state.                                                                   
                                                                                                                                
Representative   Hudson  explained   that  the  request   was                                                                   
seriously  considered.  An excess  of $600  thousand  dollars                                                                   
were  approved  for  other  programs   for  the  department's                                                                   
highest  priorities.  It  was  not one  of  the  department's                                                                   
highest priorities.                                                                                                             
                                                                                                                                
Representative  Davies stressed  that the  program should  be                                                                   
expanded to serve rural Alaska.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
Whitaker, Williams, Mulder                                                                                                      
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment LAB-3:                                                                            
                                                                                                                                
     Office of the Commissioner                                                                                                 
     Commissioner's office                                                                                                      
     Add: 10.0 GF                                                                                                               
                                                                                                                                
     This increment of $10.0 of general fund money will                                                                         
     restore the reduction made in House Finance Budget sub-                                                                    
     committee.                                                                                                                 
                                                                                                                                
Representative  Croft  stressed  that there  is  very  little                                                                   
general fund money in the Department  of Labor's budget. Most                                                                   
of the Occupational  Safety and Health  Administration (OSHA)                                                                   
programs are federally funded.                                                                                                  
                                                                                                                                
Representative  Hudson explained  that  $10 thousand  dollars                                                                   
was  taken  from   the  Commissioner's  Office   to  fund  an                                                                   
additional  hearing officer  (at  $93 thousand  dollar).  The                                                                   
hearing officer was  added in order to reduce  the backlog of                                                                   
injured  worker cases.  The  deputy commission  position  was                                                                   
vacant.  The Subcommittee  felt  that the  position could  be                                                                   
filled at a lower grade.                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Moses                                                                                                          
OPPOSED:  Bunde, Davies,  Foster, Harris, Hudson,  Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (2-9).                                                                                                        
                                                                                                                                
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                      
                                                                                                                                
Representative Harris MOVED to ADOPT Amendment HSS-1:                                                                           
                                                                                                                                
     DELETE                                                                                                                     
     Medical Assistance                                                                                                         
     Medicaid Services                                                                                                          
     3,720,500 GENERAL FUND                                                                                                     
                                                                                                                                
     ADD                                                                                                                        
     Medical Assistance                                                                                                         
     Medicaid Services                                                                                                          
     Tobacco Settlement             3,720,500                                                                                   
                                                                                                                                
     Purpose: Appropriately accounts for Tobacco settlement                                                                     
     funds to the Medicaid program                                                                                              
                                                                                                                                
Representative  Harris  explained  that the  amendment  would                                                                   
change  the fund source.  These funds  would replace  general                                                                   
funds.                                                                                                                          
                                                                                                                                
Representative  Croft questioned why  the funds aren't  being                                                                   
used for tobacco cessation programs.                                                                                            
                                                                                                                                
Representative  Harris  noted  that there  are  $1.4  million                                                                   
dollars for tobacco cessation.                                                                                                  
                                                                                                                                
Co-Chair Mulder  noted that  many of  the affects of  tobacco                                                                   
are supported  within the Medicaid component.  Representative                                                                   
Davies responded that prevention  would provide a substantial                                                                   
savings. Only  $1.4 million  of the  $20 million received  by                                                                   
the state is going for cessation  programs. He estimated that                                                                   
$8 million dollars is needed to be effective.                                                                                   
                                                                                                                                
Representative  Harris  observed  that  it is  a  complicated                                                                   
issue.                                                                                                                          
                                                                                                                                
Representative  Croft   MOVED  to  AMEND  the   amendment  by                                                                   
retaining   the  general  fund   appropriation  in   Medicaid                                                                   
Services  and  adding  $3,720,500  dollars  to  State  Health                                                                   
Services for  Tobacco Prevention  and Control. He  noted that                                                                   
tobacco  cessation  programs would  then  be  funded at  $5.1                                                                   
million dollars.                                                                                                                
                                                                                                                                
Co-Chair   Mulder  spoke   against  the   amendment  to   the                                                                   
amendment.  He  pointed  out   that  the  tobacco  funds  are                                                                   
considered as general funds and  would count against the cap.                                                                   
                                                                                                                                
Representative  Harris pointed  out  that some  of the  freed                                                                   
general fund money  would go to provide increases  to nurses'                                                                   
salaries in other places in the budget.                                                                                         
                                                                                                                                
TAPE HFC 01 - 51, Side A                                                                                                      
                                                                                                                                
A roll call vote was taken on  the motion of the amendment to                                                                   
the amendment.                                                                                                                  
                                                                                                                                
IN FAVOR:      Davies, Bunde, Croft                                                                                             
OPPOSED:       Foster,    Hudson,     Lancaster,    Whitaker,                                                                   
               Williams, Mulder                                                                                                 
                                                                                                                                
Representative  Moses  and  Representative  Harris  were  not                                                                   
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion to adopt HSS-#1.                                                                       
                                                                                                                                
IN FAVOR:      Foster, Harris, Lancaster, Whitaker, Bunde,                                                                      
               Williams, Mulder                                                                                                 
OPPOSED:       Davies, Croft                                                                                                    
                                                                                                                                
Representative  Moses  and  Representative  Hudson  were  not                                                                   
present for the vote.                                                                                                           
                                                                                                                                
The MOTION PASSED (7-2).                                                                                                        
                                                                                                                                
Representative  Harris  MOVED  to ADOPT  Replacement  HSS-#2.                                                                   
Representative  Croft OBJECTED  for an  explanation from  the                                                                   
Department.                                                                                                                     
                                                                                                                                
     DELETE:                                                                                                                    
     Department     Department of Health & Social Services                                                                      
     BRU            Public Assistance Administration                                                                            
     Component      Public Assistance Administration                                                                            
                                                                                                                                
     FUND SOURCE         AMOUNT                                                                                                 
     Federal Receipts    $35.0                                                                                                  
                                                                                                                                
     BRU            Fraud Investigations                                                                                        
     Component      Fraud Investigations                                                                                        
                                                                                                                                
     FUND SOURCE         AMOUNT                                                                                                 
     General Funds       $165.0                                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Fraud Investigations                                                                                        
     Component      Fraud Investigations                                                                                        
                                                                                                                                
     FUND SOURCE         AMOUNT                                                                                                 
     Federal Receipts    $35.0                                                                                                  
                                                                                                                                
     BRU            Public Assistance Administration                                                                            
     Component      Public Assistance Field Services                                                                            
                                                                                                                                
     FUND SOURCE         AMOUNT                                                                                                 
     General Fund        $165.0                                                                                                 
                                                                                                                                
Representative  Harris  testified  that the  amendment  would                                                                   
provide one additional  fraud investigator in  FY02 budget by                                                                   
allocating a  portion of the  Field Services budget  to Fraud                                                                   
Investigation.  He added that  the Department did support the                                                                   
amendment.                                                                                                                      
                                                                                                                                
JANET CLARKE, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                                                                   
DEPARTMENT  OF  HEALTH  AND SOCIAL  SERVICES,  spoke  to  the                                                                   
number of  fraud investigators  needed and acknowledged  that                                                                   
an additional  fraud person could  be used but  was concerned                                                                   
with the  transfer from field  services.  She  commented that                                                                   
the  amendment provides  a  "reasonable"  alternative to  the                                                                   
Department's needs.                                                                                                             
                                                                                                                                
Representative  Croft  WITHDREW   his  OBJECTION  to  HSS-#2.                                                                   
There being NO further OBJECTION, HSS-#2 was adopted.                                                                           
                                                                                                                                
Representative  Harris   MOVED  to  ADOPT   Amendment  HSS-3.                                                                   
Representative Croft OBJECTED.                                                                                                  
                                                                                                                                
     DELETE:                                                                                                                    
     Department     Department of Health & Social Services                                                                      
     BRU            Balloon Project                                                                                             
     Component      Balloon Project                                                                                             
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $1,386.6                                                                                         
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Balloon Project                                                                                             
     Component      Balloon Project                                                                                             
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     Federal Funds (TANF)      $1,386.6                                                                                         
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Administrative Services                                                                                     
     Component      Unallocated                                                                                                 
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
    $600,000                  General Fund/Mental Health                                                                        
     $500,000                  General Fund                                                                                     
                                                                                                                                
Representative  Harris  explained  that  the purpose  of  the                                                                   
amendment  would replace  general funds  with TANF funds  and                                                                   
would   then  redistribute   the  general   funds  to   other                                                                   
activities.  The  balloon project is being extended  one year                                                                   
beyond its original  agreed date and that it  is not intended                                                                   
to be  a permanent  activity,  thus, the use  of a  temporary                                                                   
fund source would be appropriate.                                                                                               
                                                                                                                                
Representative  Davies asked  if TANF  funds were  available.                                                                   
Co-Chair Mulder clarified  that these funds were  known to be                                                                   
a one-time approach.   Representative J. Davies  asked if the                                                                   
program would  be able  to carry out  its initial  mission in                                                                   
the two-year framework.   Co-Chair Mulder stated  that it was                                                                   
never the intention  that the program would be  longer than a                                                                   
two-year funding.                                                                                                               
                                                                                                                                
Ms. Clarke  identified that the  balloon project  was started                                                                   
as a temporary solution.  She  admitted that the outgrowth of                                                                   
the project  has been successful  within all the  departments                                                                   
working together  for these  kids.   The number of  adoptions                                                                   
taking place  in the  State has doubled.   Foster  care rates                                                                   
are lower  than they  have been  for the  first time  in four                                                                   
years.   The Department  claims that  the program is  working                                                                   
and wants  to keep the project  going so that  those children                                                                   
in foster care can hopefully get  permanent homes.  She added                                                                   
that the  TANF funds  are an appropriate  fund source  to use                                                                   
for the project.                                                                                                                
                                                                                                                                
Co-Chair  Mulder asked  what the  Governor's proposed  number                                                                   
and spending for TANF funds was  and how they compared to the                                                                   
number  contained  within  the  FY02 proposed  budget.    Ms.                                                                   
Clarke did not know.                                                                                                            
                                                                                                                                
Representative Davies advised  that the Balloon Project saved                                                                   
the Foster Care Program $750 thousand dollars.                                                                                  
                                                                                                                                
There being NO OBJECTION, HSS-#3 was adopted.                                                                                   
                                                                                                                                
Representative Croft  MOVED to ADOPT HSS-#4.   Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Public Assistance                                                                                           
     Component      Adult Public Assistance                                                                                     
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $1,205.1                                                                                         
     I/A Receipts              $   85.0                                                                                         
                                                                                                                                
Representative  Croft  commented   that  the  Department  had                                                                   
predicted  a   4.7%  growth  rate,  while   the  Subcommittee                                                                   
accepted  a  growth  rate of  less  than  2%  for FY01.    He                                                                   
commented  that Public  Assistance (APA)  is a  formula-based                                                                   
program  and that  the  Department would  have  to request  a                                                                   
supplemental  budget request  next  session if  it is  under-                                                                   
funded.                                                                                                                         
                                                                                                                                
Representative   Croft  stressed   that  APA  provides   cash                                                                   
assistance  to needy  aged, blind,  and  disabled adults  who                                                                   
meet  certain  income  and  resource  requirements.    People                                                                   
served  are over 65  years old  or have  severe or  long-term                                                                   
disabilities.                                                                                                                   
                                                                                                                                
Representative   Harris  responded   that  the   Subcommittee                                                                   
anticipates less of a growth rate than the Department does.                                                                     
                                                                                                                                
Representative  Croft noted  that the  concern is a  caseload                                                                   
driven  deal.   In response  to Co-Chair  Mulder, Ms.  Clarke                                                                   
clarified  that  the  Legislature  has  always  funded  Adult                                                                   
Public Assistance.                                                                                                              
                                                                                                                                
Representative Croft WITHDREW HSS-#4.                                                                                           
                                                                                                                                
Representative Croft  MOVED to ADOPT HSS-#5.   Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Medical Assistance                                                                                          
     Component      Catastrophic & Chronic Illness Assist.                                                                      
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $734.4                                                                                           
                                                                                                                                
Representative  Croft  explained  that  the  amendment  would                                                                   
restore utilization growth to  10% ($430.0 general funds) and                                                                   
would  restore  the Subcommittee  reduction  in  payments  to                                                                   
hospitals  by  $304.4  general  funds.   He  noted  that  the                                                                   
reduction  taken  by  the Subcommittee  applies  to  hospital                                                                   
payments.    It  would  be  particularly  difficult  for  the                                                                   
smaller hospital facilities to absorb the cut.                                                                                  
                                                                                                                                
Ms. Clarke added that the program  serves the very poorest of                                                                   
poor.   They have to  have less than  $300 dollars  of income                                                                   
per  month, $500  dollars in  assets and  a life  threatening                                                                   
illness.   The highest use of  the funds is  for prescription                                                                   
drugs.   Hospitals  will  have  to  continue to  serve  these                                                                   
individuals if they come in their door without payment.                                                                         
                                                                                                                                
Representative  Harris countered  that  there were  difficult                                                                   
decisions that had to be made  within the budget.  One of the                                                                   
directives  given to  the Department  was that  prescriptions                                                                   
services not  be reduced.   He added  that there would  be no                                                                   
hospital that will turn down these people.                                                                                      
                                                                                                                                
Representative  Croft pointed  out that  the Legislature  was                                                                   
directing  the Department to  cut some  of the payments  that                                                                   
they  make  to  hospitals.   He  stressed  that  this  is  an                                                                   
unfunded  mandate   and  that  it   is  clear  who   will  be                                                                   
responsible for  paying the costs  to the private  hospitals.                                                                   
He commented that this is bad policy.                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams                                                                                                  
                                                                                                                                
Co-Chair Mulder was not present for the vote.                                                                                   
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Davies MOVED to  ADOPT HSS-#6.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
   Department     Department of Health & Social Services                                                                        
     BRU            Public Assistance Administration                                                                            
     Component      Public Assistance Field Services                                                                            
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $200.0                                                                                           
                                                                                                                                
Representative  Davies   stated  that  the   amendment  would                                                                   
restore  a decrement made  by the  Subcommittee, which  would                                                                   
impact the fee agent services.   Currently, the entire budget                                                                   
for fee  agents is  $200.0, of  which 90%  is funded  through                                                                   
federal  and  general  fund  match  sources;  only  $21.0  is                                                                   
general  fund.   The  Subcommittee  action  would   have  the                                                                   
unintended impact  of cutting  four existing APA  caseworkers                                                                   
that  collectively  manage  an average  monthly  caseload  of                                                                   
1,200.                                                                                                                          
                                                                                                                                
Representative  Harris indicated  that the  funding had  been                                                                   
added back through passage of HSS-#2.                                                                                           
                                                                                                                                
Ms. Clarke  explained that there had  been a cut to  the base                                                                   
budget.  She stressed  that this would be a  "serious" cut to                                                                   
the program.  Ms. Clarke elaborated  on the work accomplished                                                                   
by the  program.   She noted  that the  concern had  not been                                                                   
addressed in HSS-#2.                                                                                                            
                                                                                                                                
Representative Harris stood correct,  however, noted that the                                                                   
Subcommittee   had  taken  a   reduction,  noting   that  the                                                                   
Department was  receiving $25  million dollars overall.   The                                                                   
money was needed in other places in that budget.                                                                                
                                                                                                                                
Representative  Davies  countered  that  of the  $25  million                                                                   
dollars  was  mostly  federal  money.   Without  the  general                                                                   
funds,  these  cases  cannot be  addressed.    Representative                                                                   
Harris  countered that  half of  the money  was general  fund                                                                   
money.   Ms.  Clarke  reported that  the  general fund  match                                                                   
dollars were not reduced.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Harris, Hudson, Lancaster, Whitaker, Bunde,                                                                      
               Williams                                                                                                         
                                                                                                                                
Representative Foster and Co-Chair Mulder were not present                                                                      
for the vote.                                                                                                                   
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Davies  MOVED to ADOPT HSS-#7.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Purchased Services                                                                                          
     Component      Foster Care Special Need                                                                                    
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $150.0                                                                                           
                                                                                                                                
Representative  Davies  explained  that the  amendment  would                                                                   
fund the increment  for the Citizen Review  and Participation                                                                   
in Six-Month Review Conference.                                                                                                 
                                                                                                                                
He added  that since  the closure of  the Foster  Care Review                                                                   
Board, an  increase required that  the Division  has absorbed                                                                   
reviews.    The Division's  goal  is  to  have at  least  one                                                                   
community  member  participate  in every  federally  required                                                                   
six-month review conference.                                                                                                    
                                                                                                                                
Representative  Harris suggested  that  this was  not a  high                                                                   
priority  of the  Department.   Representative  Davies  asked                                                                   
what  the choices  made by  the Subcommittee  had been  based                                                                   
upon.  He asked  what is the best thing the  State can do for                                                                   
all those children in foster care.                                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Harris, Hudson, Lancaster, Whitaker, Bunde,                                                                      
               Williams                                                                                                         
                                                                                                                                
Co-Chair Mulder  and Representative  Foster were  not present                                                                   
for the vote.                                                                                                                   
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
                                                                                                                                
Representative Croft  MOVED to ADOPT HSS-#8.   Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Purchased Services                                                                                          
     Component      Subsidized Adoptions and Guardianship                                                                       
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $1,069.9                                                                                         
                                                                                                                                
Representative Croft  explained that the  Subcommittee failed                                                                   
to  fully fund  the  program.   Due to  the  progress of  the                                                                   
Balloon  Project,  adoptions  have  significantly  increased.                                                                   
The Department  anticipates  the number  of children  in this                                                                   
program  to  increase  by  14%  to 1,518  in  FY01,  with  an                                                                   
additional 14% growth  to 1,730 in FY02 (up  from FY'00 level                                                                   
of 1,332 and FY'99 level of 1,169).                                                                                             
                                                                                                                                
Representative   Harris  commented   that  the   Subcommittee                                                                   
attempted  to  capture  all possible  federal  dollars.    He                                                                   
recommended  that  if  the  program  was  short-funded,  that                                                                   
concern could be addressed through the supplemental.                                                                            
                                                                                                                                
Representative   Croft  strongly   urged  that   this  is   a                                                                   
worthwhile group of people to  spend money on and that if the                                                                   
budget is  not funded,  the cost  to the  State will  be much                                                                   
greater "down the road".                                                                                                        
                                                                                                                                
TAPE HFC 01 - 51, Side B                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams                                                                                                  
                                                                                                                                
Co-Chair Mulder was not present for the vote.                                                                                   
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft  MOVED to ADOPT HSS-#9.   Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Front Line Social Workers                                                                                   
     Component      Front Line Social Workers                                                                                   
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $450.0                                                                                           
                                                                                                                                
Representative Croft explained  that the amendment would fund                                                                   
the  increment  for  case-note   transcription  services  for                                                                   
social workers statewide.                                                                                                       
                                                                                                                                
Representative  Croft noted  that  a pilot  project had  been                                                                   
initiated  last year  and  the preliminary  results  indicate                                                                   
that social workers using the  transcription services spent a                                                                   
weekly  average of 7.5  hours less  on completing  paperwork.                                                                   
Utah  implemented  the  service  and has  seen  an  immediate                                                                   
decrease   in  the   amount  of   time   spent  on   clerical                                                                   
documentation.                                                                                                                  
                                                                                                                                
He  added that  implementation  of  the service  would  allow                                                                   
social  workers to  spend more  time in the  field and  would                                                                   
improve casework  management because of the  rapid turnaround                                                                   
in entering casework documentation  in the files.  Basically,                                                                   
social  workers call  a toll  free number  and dictate  their                                                                   
case  documentation  at any  time  from a  touch-tone  phone.                                                                   
Dictation   is    digitally   recorded,   transcribed,    and                                                                   
electronically  transmitted to  the agency's  office in  less                                                                   
than two business                                                                                                               
                                                                                                                                
Representative  Harris commented that  the request was  not a                                                                   
high priority and therefore was not funded.                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Croft                                                                                                    
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
Representative Moses was not present for the vote.                                                                              
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative    Davies    MOVED     to    ADOPT    HSS-#10.                                                                   
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health and Social Services                                                                    
     BRU            Front Line Social Workers                                                                                   
     Component      Front Line Social Workers                                                                                   
                                                                                                                                
     FUND SOURCE         AMOUNT                                                                                                 
     General Fund        $200.0                                                                                                 
                                                                                                                                
Representative  Davies  explained  that the  amendment  would                                                                   
fund the increment for implementation  of the risk and safety                                                                   
assessment  tool,  which was  a  recommendation  of the  1998                                                                   
Legislative Audit report on social workers.                                                                                     
                                                                                                                                
Representative  Harris   interjected  that  it   had  been  a                                                                   
difficult  decision   to  make,  however,   the  Subcommittee                                                                   
submitted that this was not the  highest priority and that it                                                                   
did not fit within the budget caps.                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Croft                                                                                                    
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
Representative Moses was not present for the vote.                                                                              
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
RECESSED                                                                                                                      
                                                                                                                                
The Committee recessed at 4:45 P.M.                                                                                             
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
The Committee reconvened at 4:55 P.M.                                                                                           
                                                                                                                                
Representative Croft MOVED to  ADOPT HSS-#11.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Juvenile Justice                                                                                            
     Component      Mclaughlin Youth Center                                                                                     
                                                                                                                                
     FUND SOURCE                    AMOUNT                                                                                      
     General Fund/Mental Health   $292.5                                                                                        
                                                                                                                                
Representative Croft  noted that the amendment  would provide                                                                   
services for youth offenders with  substance abuse and/or co-                                                                   
occurring  substance abuse  and  mental illness  in order  to                                                                   
reduce  unnecessary   and  inappropriate  detentions.     The                                                                   
addition would  increases effectiveness of  multiple agencies                                                                   
serving the youth through improving  interagency coordination                                                                   
and collaboration between:                                                                                                      
                                                                                                                                
     ·    Division of Juvenile Justice;                                                                                         
     ·    Division of Mental Health and Developmental                                                                           
          Disabilities; and                                                                                                     
     ·    Division of Alcohol and Drug Abuse.                                                                                   
                                                                                                                                
Additionally,  the   amendment  would  provide   transitional                                                                   
services   targeted  for   youth   leaving  secure   juvenile                                                                   
institutions  because they require  more intensive  services,                                                                   
such as transitional housing and treatment services.                                                                            
                                                                                                                                
Representative  Harris commented  that he  had contacted  the                                                                   
Mental Health Trust Board to determine  their priorities.  He                                                                   
commented that this  proposed project was not  a top priority                                                                   
for  that  Board.   The  Subcommittee  did  not  include  the                                                                   
component in  the funding list.   Co-Chair Mulder  noted that                                                                   
when there is a priority for that  Board and it is not funded                                                                   
through the operating budget,  the Board usually provides the                                                                   
necessary funding.                                                                                                              
                                                                                                                                
Representative  Croft  commented  that  there are  a  certain                                                                   
amount of mental  health concerns addressed in  the operating                                                                   
budget and  that was the  arrangement with the  Mental Health                                                                   
Board that  the Legislature  would continue  an effort.   Co-                                                                   
Chair  Mulder argued  that there  had not  been a  systematic                                                                   
approach used to date.                                                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT HSS-#12.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            McLaughlin Youth Center                                                                                     
     Component      Juvenile Justice                                                                                            
                                                                                                                                
     FUND SOURCE                    AMOUNT                                                                                      
     General Fund/Mental Health     $213.5                                                                                      
                                                                                                                                
Representative Croft  commented that the Project  is meant to                                                                   
divert  alcohol, drug  dependent  and mentally  ill  juvenile                                                                   
offenders  from   being  inappropriately  and/or   repeatedly                                                                   
detained due to lack of services  addressing the contributing                                                                   
causes  of drug and  alcohol dependency  and mental  illness.                                                                   
The  request  would  be consistent  with  the  Alaska  Mental                                                                   
Health Board's  emphasis on  reducing the criminalization  of                                                                   
mental illness.                                                                                                                 
                                                                                                                                
Co-Chair  Mulder commented  that this  would be a  worthwhile                                                                   
goal, which is not necessarily refined yet.                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative    Davies    MOVED     to    ADOPT    HSS-#13.                                                                   
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Johnson Youth Center                                                                                        
     Component      Juvenile Justice                                                                                            
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $37.0                                                                                            
                                                                                                                                
Representative Davies noted that  the amendment would restore                                                                   
$37 thousand dollars  for opening the facility  in Ketchikan.                                                                   
The   savings  was   estimated  at   $13  thousand   dollars.                                                                   
Restoring  the $37 thousand  dollars would  reflect the  more                                                                   
accurate savings amount.                                                                                                        
                                                                                                                                
Representative  Harris replied  that the  Department has  the                                                                   
ability to  save more money  than they  believe they do.   He                                                                   
stated that  the Department would  probably be able  to reach                                                                   
their goal.                                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft, Hudson                                                                                     
OPPOSED:       Foster, Harris, Lancaster, Whitaker, Bunde,                                                                      
               Williams, Mulder                                                                                                 
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT HSS-#14.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            Juvenile Justice                                                                                            
     Component      Probation Services                                                                                          
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $564.5                                                                                           
                                                                                                                                
Representative  Croft  explained  that  in 1998,  the  Alaska                                                                   
Legislature  enacted  changes  to delinquency  statutes  that                                                                   
shifted  emphasis  to  greater  offender  accountability  and                                                                   
services  to victims.   The primary  agent policing  offender                                                                   
accountability  and insuring  victim  services are  probation                                                                   
officers.     The  request   would  add  juvenile   probation                                                                   
officers/victim  services  to  reduce  highest  caseloads  in                                                                   
Anchorage, Bethel,  Dillingham, Kenai, Ketchikan,  Kodiak and                                                                   
Valdez,  to accomplish  greater  juvenile accountability  and                                                                   
victim services.                                                                                                                
                                                                                                                                
Representative  Harris countered  that the  program would  be                                                                   
adding  nine new  employees.    He added  that  the State  of                                                                   
Alaska cannot afford the extra program proposal.                                                                                
                                                                                                                                
Representative  Croft   stressed  that  juvenile   probations                                                                   
services needs more assistance.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Davies  asked  if HSS-#15  would  be  covered                                                                   
under  HSS-#3.   Ms. Clarke  acknowledged  that HSS-#3  would                                                                   
address concerns indicated in HSS-#15.                                                                                          
                                                                                                                                
Representative Davies WITHDREW HSS-#15.                                                                                         
                                                                                                                                
Representative Croft MOVED to  ADOPT HSS-#16.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            State Health Services                                                                                       
     Component      Nursing                                                                                                     
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $852.2                                                                                           
                                                                                                                                
Representative Croft  explained that the  amendment increment                                                                   
for the  "Back to Basics" initiative  had been funded  at 30%                                                                   
of the  requested level.   The communicable disease  problems                                                                   
addressed in  the Back  to Basics programs  such as  TB, HIV,                                                                   
Hepatitis, sexually  transmitted diseases (STD),  and loss in                                                                   
immunization  coverage,   remain  threats  to   the  public's                                                                   
health.   Without full funding,  some areas will  continue to                                                                   
experience   disease   problems,   which  could   have   been                                                                   
identified,  treated, and  controlled  with adequate  nursing                                                                   
personnel.   He  emphasized that  the  original proposal  for                                                                   
eleven nurses and  four support staff was modest  in terms of                                                                   
the work  needed to be accomplished.   Current  resources are                                                                   
inadequate to  meet the demand.   He emphasized that  this is                                                                   
an  increasing  population.   Representative  Croft  stressed                                                                   
that the nursing  component should be funded  to help prevent                                                                   
and contain  infectious disease in  the State.  He  warned of                                                                   
the increase in TB cases throughout the State.                                                                                  
                                                                                                                                
Co-Chair  Mulder noted  that currently  the State spends  $25                                                                   
million dollars  on public health.   He suggested  that these                                                                   
issue  should  be  under  control  with  that  size  subsidy.                                                                   
Representative  Croft  countered  that  with the  process  of                                                                   
budget  cutting over  the past  few years,  the agency  is as                                                                   
lean as it can  be, which erodes their ability  to respond to                                                                   
new situations.                                                                                                                 
                                                                                                                                
Representative Harris  advised that the nurse's  component is                                                                   
funded at  $15 million  dollars.  He  pointed out  that there                                                                   
were incremental increases.                                                                                                     
                                                                                                                                
Ms. Clarke  stated that  there are  significant funds  in the                                                                   
Division of Public Health budget.   Many of those are federal                                                                   
funds and  have other  strings attached.   She stressed  that                                                                   
the  Division will  continue to  address  epidemics but  what                                                                   
will happen  is that other basic  programs will suffer.   She                                                                   
reminded  the Committee  that the Back  to Basis  initiatives                                                                   
addresses  multiple  concerns,  not  just  TB.    Ms.  Clarke                                                                   
emphasized that  within the Division,  not everything  can be                                                                   
accomplished.                                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Davies WITHDREW HSS-#17.                                                                                         
                                                                                                                                
Representative    Davies    MOVED     to    ADOPT    HSS-#18.                                                                   
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            State Health Services                                                                                       
     Component      Epidemiology                                                                                                
                                                                                                                                
     FUND SOURCE               AMOUNT                                                                                           
     General Fund              $439.0                                                                                           
                                                                                                                                
Representative  J.  Davies  noted  that the  Back  to  Basics                                                                   
initiative  was only funded  at 30%  of the requested  level.                                                                   
The communicable  disease problems  addressed in the  Back to                                                                   
Basics  programs   such  as  TB,  HIV,   Hepatitis,  sexually                                                                   
transmitted  diseases,  and  loss  in  immunization  coverage                                                                   
remain threats to the public's  health.  Without full funding                                                                   
the increment  would mean that  some areas would  continue to                                                                   
experience disease problems that  could have been identified,                                                                   
treated   and  controlled   with   adequate   epidemiological                                                                   
personnel.   He stressed  that TB,  Hepatitis A,  B and  C as                                                                   
well  as several  sexually transmitted  diseases  are on  the                                                                   
rise throughout the State.                                                                                                      
                                                                                                                                
Representative  J.  Davies noted  that  just  this week,  the                                                                   
Centers for Disease Control and  Prevention released national                                                                   
data on the incidence of tuberculosis  in the US.  Alaska led                                                                   
the  Nation with  the highest  rate  of increase  of 77%  for                                                                   
2000.   There are about 700  Alaskans who have  been recently                                                                   
infected  with tuberculosis.   Measles  has also  reappeared.                                                                   
Current resources  are inadequate  to do the  epidemiological                                                                   
and  laboratory  fieldwork  that  is  needed  to  keep  these                                                                   
diseases under  control. A tuberculosis outbreak  alone would                                                                   
require countless hours of data  tracking and follow up work.                                                                   
Fully  funding the  increment would  help control  infectious                                                                   
disease in Alaska.                                                                                                              
                                                                                                                                
Representative  Harris   countered  that  one-third   of  the                                                                   
requests were  funded.  He  noted that the Subcommittee  went                                                                   
after as much federal money as possible.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Moses, Croft                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Williams, Mulder                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to  ADOPT HSS-#19.  Representative                                                                   
Harris OBJECTED.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     Department     Department of Health & Social Services                                                                      
     BRU            State Health Services                                                                                       
     Component      Infant Learning Program                                                                                     
                                                                                                                                
     FUND SOURCE                    AMOUNT                                                                                      
     General Fund/Mental Health     $700.0                                                                                      
                                                                                                                                
Representative Croft noted the  funding source change for the                                                                   
Infant Learning Program/Early  Intervention Services from I/A                                                                   
to GF/MH.                                                                                                                       
                                                                                                                                
Representative Croft stated that  in FY 2001, the Legislature                                                                   
added $700.0 in  I/A receipts to the Infant  Learning Program                                                                   
and the  Early Intervention Services  in anticipation  that a                                                                   
federal  grant for  Fetal Alcohol  Syndrome  effect could  be                                                                   
used to provide services to the  300-waitlisted children.  It                                                                   
was discovered  that using  federal funds  in that  manner is                                                                   
not allowed under that grant.                                                                                                   
                                                                                                                                
TAPE HFC 01 - 52, Side A                                                                                                      
                                                                                                                                
Representative Croft stressed  that if services are delayed 6                                                                   
months to a  year that the advantage of early  services would                                                                   
be lost  and the child might  not be properly  categorized as                                                                   
an  infant by  the time  services are  provided. He  observed                                                                   
that  the  waitlist  was  continued   last  year  due  to  an                                                                   
inability to access federal Fetal Alcohol Syndrome funds.                                                                       
                                                                                                                                
Representative  Harris acknowledged  the  need and  commented                                                                   
that he  was committed to looking  at the program  during the                                                                   
interim.                                                                                                                        
                                                                                                                                
Representative  Davies  stressed  that  failure to  fund  the                                                                   
request would result in a cut  to the program due to the loss                                                                   
of FAS money. He  asked that a serious look be  taken at this                                                                   
concern.                                                                                                                        
                                                                                                                                
Ms.  Clark  clarified  that  FAS  funds  came  from  a  grant                                                                   
provided by Senator  Stevens. It was an increment  last year.                                                                   
The House funded  the request in FY01 through  general funds.                                                                   
The Senate  replaced the  general funds  with FAS funds.  The                                                                   
FAS grants cannot be used for this purpose.                                                                                     
                                                                                                                                
Co-Chair   Mulder   encouraged    the   Subcommittee   chair,                                                                   
Representative  Harris,  to  review the  request  during  the                                                                   
interim.                                                                                                                        
                                                                                                                                
Representative  Davies  reminded  members  how  critical  the                                                                   
first three  years are.  Concerns will  have to be  addressed                                                                   
more extensively later  on, if they are not  addressed in the                                                                   
early stages of infancy.                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Moses, Croft                                                                                                  
OPPOSED:  Foster,   Harris,  Hudson,   Lancaster,   Whitaker,                                                                   
          Williams, Mulder                                                                                                      
                                                                                                                                
Vice-Chair Bunde was absent from the vote.                                                                                      
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
RECESSED                                                                                                                      
                                                                                                                                
The Committee recessed at 5:40 P.M.                                                                                             
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
The Committee reconvened at 6:42 P.M.                                                                                           
                                                                                                                                
Representative     Croft    WITHDREW    Amendment     HSS-20.                                                                   
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Public Health Laboratories                                                                                                 
     State Health Services                                                                                                      
     $235,0 GENERAL FUND                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-21:                                                                          
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     State Health Services                                                                                                      
     Tobacco Prevention and Control                                                                                             
     1,600.0 GF                                                                                                                 
                                                                                                                                
     Smoking  is the leading  cause of  preventable  death in                                                                   
     Alaska,  as   in  the  U.S.  as  a  whole.   Tobacco  is                                                                   
     responsible   for  one  out   five  deaths   in  smoking                                                                   
     accounted for 19.8% of all  deaths in Alaska. Alaska has                                                                   
     one of  the highest smoking  rates in the  prevalence of                                                                   
     26.1%.                                                                                                                     
                                                                                                                                
     This  amendment  would increase  current  level of  $1.4                                                                   
     million  to   $8.1  million,  the  recommended   minimum                                                                   
     funding  level endorsed  by the  Alaska Tobacco  Control                                                                   
     Alliance for a comprehensive tobacco control program.                                                                      
                                                                                                                                
Representative Davies stated that  the general funds could be                                                                   
read as tobacco funds.                                                                                                          
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
Representative Davies spoke in support of the request.                                                                          
                                                                                                                                
Representative  Harris felt that  there is probably  close to                                                                   
$8 million  dollars spread through  the operating  budget for                                                                   
tobacco related programs.                                                                                                       
                                                                                                                                
Co-Chair Mulder  acknowledged the benefit of  prevention, but                                                                   
emphasized  that  it  is ultimately  a  personal  choice.  He                                                                   
acknowledged the costs  of tobacco to the state  [in terms of                                                                   
health  related  services],  but  did  not  feel  that  youth                                                                   
consumption would be affected by additional funds.                                                                              
                                                                                                                                
Representative Davies  reiterated that the cost  to the state                                                                   
is the reason why  more funds should be spent.  He noted that                                                                   
the  state  supports  reducing   alcohol  consumption  during                                                                   
pregnancy because  it saves future  state funds.  He stressed                                                                   
that it is the same issue.                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Bunde, Croft, Davies, Moses                                                                                           
OPPOSED:  Foster,   Harris,  Hudson,   Lancaster,   Whitaker,                                                                   
          Williams, Mulder                                                                                                      
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative  Hudson  stated  that  he would  like  to  see                                                                   
information  regarding the  reduction of  smoking related  to                                                                   
the increased cost of tobacco.                                                                                                  
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-22:                                                                          
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Alcohol Safety Action Program                                                                                              
     Alcohol and Drug Abuse Services                                                                                            
     $1,366.1 G.F                                                                                                               
                                                                                                                                
     Short Summary:                                                                                                             
                                                                                                                                
     Alcohol   Safety  Action   Program  (ASAP)  provides   a                                                                   
     standardized   statewide  network  of   substance  abuse                                                                   
     screening  and case  management  of  civil and  criminal                                                                   
     cases.  ASAP  operates as  a  neutral link  between  the                                                                   
     justice  and health care  delivery system. This  program                                                                   
     gets  offenders  into  needed  rehabilitation  services.                                                                   
     Many  rural  ASAP  offices  have been  closed  and  this                                                                   
     increment  would  reopen  offices  in  five  communities                                                                   
     including  Bethel and Barrow  and will increase  funding                                                                   
     at ten  other locations.  This is a much-needed  service                                                                   
     in rural Alaska.                                                                                                           
                                                                                                                                
Representative  Davies spoke  in support  of the request  and                                                                   
noted that it  would fund the Alcohol Safety  Action Program.                                                                   
He stressed  that the program  enforces sentencing  of DWI's.                                                                   
He observed that alcohol is one  of the most serious problems                                                                   
facing the state.                                                                                                               
                                                                                                                                
Representative Harris  observed that the amendment  would add                                                                   
eight  positions  around  the   state  and  additional  grant                                                                   
funding. He  noted that the subcommittee  added approximately                                                                   
$1 million  dollars into  this component.  He added  that the                                                                   
subcommittee   could  not  find   further  funding   for  the                                                                   
component.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-23:                                                                          
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Alcohol and Drug Abuse Grants                                                                                              
     Alcohol and Drug Abuse Services                                                                                            
     $1,500.0 GENERAL FUND                                                                                                      
                                                                                                                                
     Under federal law, known  as the Synar Amendment, States                                                                   
     receiving a  Substance Abuse and Mental  Health Services                                                                   
     Administration  Block  grant   must  meet  predetermined                                                                   
     targets for  enforcing sales  of tobacco to  minors. The                                                                   
     federal mandate for the reporting  period federal fiscal                                                                   
     year  (FFY)  2000  could  not exceed  20%.  During  this                                                                   
     period Alaska's non-compliance  rate was 34%. This means                                                                   
     that  minors  participating  in compliance  checks  were                                                                   
     successful in  buying cigarettes  34% of the time.  As a                                                                   
     result, the  State of Alaska has recently  been found in                                                                   
     non-compliance with Synar  and stands to lose up to $1.5                                                                   
     million  in federal substance  abuse treatment  funds. A                                                                   
     Congressional proposal  has been approved,  which allows                                                                   
     for  new   State  tobacco  funding  as   an  alternative                                                                   
     "penalty                                                                                                                   
                                                                                                                                
Representative Davies spoke in support of the amendment.                                                                        
                                                                                                                                
Ms.  Clark explained  that  Congress  has allowed  a  reduced                                                                   
penalty  provision. The  state  of Alaska's  could avoid  the                                                                   
penalty  if the state's  enforcement  were increased  by $471                                                                   
thousand  dollars. Legislation  would have  to accompany  the                                                                   
funding.                                                                                                                        
                                                                                                                                
Representative   Harris   noted  that   he   is  working   on                                                                   
legislation. He  stated that the legislation  could take care                                                                   
of the funding.                                                                                                                 
                                                                                                                                
Ms. Clark clarified  that Congress provided that  if the rate                                                                   
of  tobacco  sales  to  minor were  out  of  compliance  that                                                                   
alcohol block grants would be  penalized. The problem is that                                                                   
the $1.5 million dollar penalty  [to the state's block grant]                                                                   
will continue  if the  compliance rate  is not brought  under                                                                   
control.                                                                                                                        
                                                                                                                                
Representative   Harris  noted   that   the  department   has                                                                   
attempted to  bring their  compliance numbers under  control.                                                                   
He  maintained  that enforcement  needs  to  be improved  and                                                                   
fines enforced on business that  do not observe the statutes.                                                                   
                                                                                                                                
Representative Davies  pointed out that there  are not enough                                                                   
troopers to enforce the statutes.                                                                                               
                                                                                                                                
Representative Davies WITHDREW Amendment HSS-23.                                                                                
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-24:                                                                          
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Alcohol/Drug Abuse Services                                                                                                
     Alcohol/Drug Abuse Grants                                                                                                  
     $2,000.0 GENERAL FUND                                                                                                      
                                                                                                                                
     Short Summary:                                                                                                             
                                                                                                                                
     The  intent  of  this  increment  is  to  eliminate  the                                                                   
     waitlist  for substance  abuse  treatment by  increasing                                                                   
     outpatient  and residential  treatment  capacity with  a                                                                   
     specific  emphasis   on  individuals  involved   in  the                                                                   
     criminal  justice system.  The current  need and  demand                                                                   
     for   treatment  far  exceeds   the  current   treatment                                                                   
     capacity.  Approximately   $800,000  will  be   used  to                                                                   
     increase  outpatient  treatment  capacity by  adding  18                                                                   
     outpatient  counselors   within  grantee   agencies  and                                                                   
     approx.  1,200.00 would  increase residential  treatment                                                                   
     capacity by fully funding 54 treatment beds.                                                                               
                                                                                                                                
Representative  Davies noted  that  there is  a waitlist  for                                                                   
treatment  beds.   There  are  only  10  treatment   beds  in                                                                   
Fairbanks  and   14  in  Anchorage.  He  stressed   that  the                                                                   
treatment  capacity  does  not  exist  to  support  increased                                                                   
enforcement.                                                                                                                    
                                                                                                                                
Representative  Harris  acknowledged  the need.  He  observed                                                                   
that there is $20 million dollars  in the budget for drug and                                                                   
alcohol  abuse  grants.  He  stressed  that  it  is  a  major                                                                   
increment and could not be funded.                                                                                              
                                                                                                                                
Co-Chair Mulder questioned if  the beds were income eligible.                                                                   
                                                                                                                                
Ms. Clark clarified  that there is a sliding fee  scale and a                                                                   
match requirement.                                                                                                              
                                                                                                                                
Representative Davies  maintained that the status  quo is not                                                                   
good  enough  and  reiterated  that there  is  a  substantial                                                                   
waitlist.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Mulder                                                                                                      
                                                                                                                                
Co-Chair Williams was absent from the vote.                                                                                     
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment HSS-25:                                                                           
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Alcohol and Drug Abuse Services                                                                                            
     Alcohol/Drug Abuse Grants                                                                                                  
     $1,010.5 GE                                                                                                                
                                                                                                                                
     Short Summary:                                                                                                             
                                                                                                                                
     The  demand for  alcohol treatment  for youth  currently                                                                   
     exceeds  the availability.  Youth residential  treatment                                                                   
     is available only in Anchorage,  Fairbanks and Sitka and                                                                   
     all  providers  have  wait  lists.  Note  there  are  no                                                                   
     facilities  in rural  Alaska. In  1999, more than  2,200                                                                   
     citations  were issued for  minors under  the age  of 18                                                                   
     consuming  alcohol according to  court records.  We need                                                                   
     to help these youth before  the problems are compounded.                                                                   
     This funding  will be utilized to provide  grant funding                                                                   
     for  approximately 22  youth  outpatient and  continuing                                                                   
     care  counselors  statewide.   This  is  a  much  needed                                                                   
     expansion and can be viewed  as a preventive health care                                                                   
     move.                                                                                                                      
                                                                                                                                
Representative  Croft  emphasized  that  the  same  arguments                                                                   
apply  as to  the previous  amendment,  but that  there is  a                                                                   
greater chance of influencing juveniles.                                                                                        
                                                                                                                                
Representative Harris acknowledged  that greater intervention                                                                   
for juveniles  would be beneficial,  but emphasized  that the                                                                   
request could not be funded.                                                                                                    
                                                                                                                                
In  response to  a question  by Vice-Chair  Bunde, Ms.  Clark                                                                   
clarified  that there  is not  a juvenile  ASAP program.  She                                                                   
observed that  treatment does work.  There is a  waiting list                                                                   
of  80 for  adult  out patient  treatment  in Anchorage.  She                                                                   
thought that this  number had grown. She stressed  the affect                                                                   
of  juvenile  alcoholism  on families.  Treatment  works  for                                                                   
about half  of the  publicly funded  cases. Persons  referred                                                                   
through ASAP have higher success rates (up to 3/4).                                                                             
                                                                                                                                
Representative  Croft spoke in  support of the  amendment. He                                                                   
pointed out that the best way  to be involved in treatment is                                                                   
to be in treatment.                                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment HSS-26:                                                                           
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     CAASA Grants                                                                                                               
     Alcohol and Drug Abuse Services                                                                                            
     $426.0 General fund                                                                                                        
                                                                                                                                
     Short Summary:                                                                                                             
                                                                                                                                
     The existing  ASAP program does not serve  minors. There                                                                   
     is no mechanism to currently  screen or assess juveniles                                                                   
     for alcohol dependency. Early  intervention of juveniles                                                                   
     with  alcohol   problems  would  likely   reduce  future                                                                   
     demands  on  the  criminal  justice  system.  In  Alaska                                                                   
     between  1991  and 1998  there  was  a 60%  increase  in                                                                   
     alcohol-related  injuries for youth.  The money  will be                                                                   
     used  to provide screening,  assessments and  monitoring                                                                   
     of  court   ordered  sanctions   of  minors   cited  for                                                                   
     consuming  or possessing alcohol  in 6 to  8 communities                                                                   
     through  grants with community  based agencies.  Funding                                                                   
     is also requested  for a PFT juvenile  Probation Officer                                                                   
     to administer the program.                                                                                                 
                                                                                                                                
TAPE HFC 01 - 52, Side B                                                                                                      
                                                                                                                                
Representative Croft spoke in support of the amendment.                                                                         
                                                                                                                                
Representative  Harris  noted that  the  request was  heavily                                                                   
debated  in the  Subcommittee, but  was not  included in  the                                                                   
scarce resources.                                                                                                               
                                                                                                                                
Ms. Clark noted that a study found  that 3/4 of DWI's and 50%                                                                   
of drug  or alcohol  cases referred did  not commit  a second                                                                   
time. Co-Chair  Mulder  concluded that  ASAP is an  effective                                                                   
treatment program.                                                                                                              
                                                                                                                                
Representative  Croft observed that  screening is  not funded                                                                   
because  there is  no  treatment and  that  treatment is  not                                                                   
funded because there is no screening.                                                                                           
                                                                                                                                
Ms.  Clark  pointed out  that  there  is no  consequence  for                                                                   
juveniles.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-27:                                                                          
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Add:                                                                                                                       
     Rural Services Grants                                                                                                      
     Alcohol and Drug Abuse Services                                                                                            
     $750.0 GENERAL FUND                                                                                                        
                                                                                                                                
     Program  will provide assessment  and referral  services                                                                   
     at  the   local  level  for  individuals   needing  care                                                                   
     provided   through   hub   communities.   They   provide                                                                   
     continued  support  and  aftercare  to  individuals  who                                                                   
     return to  the community  after treatment.  The existing                                                                   
     program  has  been  successful  since  it  trains  local                                                                   
     people  who can  combine their  cultural knowledge  with                                                                   
     alcohol  and mental health  counseling and  intervention                                                                   
     skills. Fourteen sub-regional  or regional organizations                                                                   
     currently  participate  in   the  rural  Human  Services                                                                   
     Program through grants from  the Division of Alcohol and                                                                   
     Drug  Abuse.  This  proposal  will  fund  the  salaries,                                                                   
     training  and supervision,  clinical  space and  support                                                                   
     for  ten additional  workers. Today  there are  98 human                                                                   
     service workers  in 75 communities. The  expansion would                                                                   
     increase  the workers  from  98 to  108  and expand  the                                                                   
     program from 75 to 85 communities.                                                                                         
                                                                                                                                
Representative Davies  spoke in support of the  amendment. He                                                                   
emphasized  that   the  program  is  successful   because  it                                                                   
concentrates on  training local people who can  combine their                                                                   
local  cultural  knowledge  with alcohol  and  mental  health                                                                   
counseling  and intervention  skills. He  pointed out  that a                                                                   
high percentage  of those incarcerated in Alaska  are Alaskan                                                                   
Native  and a  high  percentage  of those  (approximately  90                                                                   
percent) are there for alcohol abuse.                                                                                           
                                                                                                                                
Representative  Harris observed  that this  grant program  is                                                                   
funded  at $2.6  million dollars.  He  acknowledged that  the                                                                   
program works, but the increment was denied.                                                                                    
                                                                                                                                
Representative  Davies  stated  that  a  modest  increase  in                                                                   
alcohol sales tax  would fund many of the requests  denied by                                                                   
the Committee.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Croft WITHDREW  Amendment HSS-28  (as it  was                                                                   
included in a previous amendment):                                                                                              
                                                                                                                                
     Add:                                                                                                                       
     API                                                                                                                        
     Institutions and Administration                                                                                            
     609.9     GF/MH                                                                                                            
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment HSS-29:                                                                           
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
     Medicaid Assistance                                                                                                        
                                                                                                                                
     Delete intent  language: "No money appropriated  in this                                                                   
     appropriation  may be expended  for an abortion  that is                                                                   
     not    a   mandatory   service    required   under    AS                                                                   
     47.07.030(a)."                                                                                                             
                                                                                                                                
Representative  Croft spoke in  support of the  amendment. He                                                                   
spoke to  the legal  issue. He observed  that 12  states have                                                                   
reached   similar   conclusions   to  the   Supreme   Court's                                                                   
interpretation  of the  Constitution on  the conditioning  of                                                                   
money,  which would  wave  a person's  constitutional  right.                                                                   
States can  chose to  not appropriate  funds but they  cannot                                                                   
condition   the  funds.   He   referred  to   the  state   of                                                                   
California's  Supreme  Court  decision.  All states  with  an                                                                   
explicit right to  privacy have come to the  same conclusion.                                                                   
He referred to the Massachusetts' Supreme Court's ruling.                                                                       
                                                                                                                                
Co-Chair  Mulder agreed  that it is  a constitutional  issue,                                                                   
but  emphasized that  the  legislature  is the  appropriating                                                                   
arm. He  pointed out that the  alternative is to  not provide                                                                   
any funding.                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Mulder                                                                                                      
                                                                                                                                
Co-Chair Williams was absent from the meeting.                                                                                  
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment HSS-30:                                                                          
                                                                                                                                
     Medicaid Assistance                                                                                                        
                                                                                                                                
     Delete intent  language: "No money appropriated  in this                                                                   
     appropriation  may be expended  for an abortion  that is                                                                   
     not    a   mandatory   service    required   under    AS                                                                   
     47.07.030(a)."                                                                                                             
                                                                                                                                
     Administrative Services                                                                                                    
                                                                                                                                
     Delete intent  language: "No money appropriated  in this                                                                   
     appropriation  may be expended  for an abortion  that is                                                                   
     not    a   mandatory   service    required   under    AS                                                                   
     47.07.030(a)."                                                                                                             
                                                                                                                                
Representative Davies spoke in support of the amendment.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED: Bunde,     Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Mulder                                                                                                      
                                                                                                                                
Co-Chair Williams was absent from the meeting.                                                                                  
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment HSS-31:                                                                           
                                                                                                                                
     ADD                                                                                                                        
     Front Line Social Workers                                                                                                  
     Front Line Social Workers                                                                                                  
     General Funds $228.00                                                                                                      
                                                                                                                                
     Explanation                                                                                                                
     Fund   pilot  project  to   evaluate  effectiveness   of                                                                   
    "intensive family preservation" services in Alaska.                                                                         
                                                                                                                                
     As of  Jan. 1,  DFYS had 1,929  children in  its custody                                                                   
     living in foster homes, relative  homes, and group homes                                                                   
     and assorted other placements,  an increase of nearly 40                                                                   
     percent from five years ago.                                                                                               
                                                                                                                                
     This   pilot    project   applies   "intensive    family                                                                   
     preservation   services"  to   families  in  crisis   in                                                                   
     attempts  to  change  abusive   or  neglectful  behavior                                                                   
     likely  to  result  in  child  placement.  Consequently,                                                                   
     children will  be able to  remain safely in  their homes                                                                   
     and  communities,  instead  of being  placed  in  costly                                                                   
     foster care and/or state institutions.                                                                                     
                                                                                                                                
     The pilot project  hires a team of 2.5  therapists and a                                                                   
     .5  supervisor  that  sees  50  families  for  one  year                                                                   
     ($4,565  per family).  Families in  crisis are  targeted                                                                   
     and a well-prepared  caseworker is sent  into their home                                                                   
     15 to  20 hours a  week. Effectiveness requires  keeping                                                                   
     caseloads very  low, no more than two or  three families                                                                   
     at once and  providing families with someone  to call 24                                                                   
     hours a day.  Crisis family service is  ended after four                                                                   
     to  six weeks, once  the immediate  situation is  calmed                                                                   
     and the family is linked to longer-term help.                                                                              
                                                                                                                                
     Based  on Washington State's  Homebuilder's project  and                                                                   
     now  adopted in  over 30  states, "family  preservations                                                                   
     services" have demonstrated  prevention of inappropriate                                                                   
     and  costly placements  of children  into state  custody                                                                   
     and  care.  This  has  reduced   costs  to  the  state's                                                                   
     juvenile  justice,  child   welfare  and  mental  health                                                                   
     systems.                                                                                                                   
                                                                                                                                
AUTHUR MASON,  STAFF, REPRESENTATIVE CISSNA spoke  in support                                                                   
of the amendment. He noted that  the amendment recognizes the                                                                   
importance of the family structure.  Many of the nearly 2,000                                                                   
Alaskan  children in  out-of-home  placement  are from  homes                                                                   
that are unsafe. There are many  other children being removed                                                                   
from their  families because  of a  lack of services.  Family                                                                   
preservation  services are  a cost  effective alternative  to                                                                   
institutional foster care. In  the state of Washington, costs                                                                   
for  family treatment  were  shown  to be  half  the cost  of                                                                   
caring for a child in the foster care system.                                                                                   
                                                                                                                                
He noted  that the  amendment would  establish a  competitive                                                                   
grant fund  for 2.5  therapists and  1 half time  supervisor.                                                                   
Service  costs for  a family's  4  - 6  week intervention  is                                                                   
$4,565  dollars.  He maintained  that  the state  would  save                                                                   
money through the program.                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Foster,   Harris,  Hudson,   Lancaster,   Whitaker,                                                                   
          Williams, Mulder                                                                                                      
                                                                                                                                
Representatives Bunde and Hudson were absent from the vote.                                                                     
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative Mulder  MOVED to ADOPT Amendment UA-1:                                                                           
                                                                                                                                
     ADD                                                                                                                        
     Agency         University of Alaska                                                                                        
     BRU            University of Alaska                                                                                        
    Component      Budget Reductions/Additions - System                                                                         
     Fund Source         Amount                                                                                                 
     ACPE Div       $2,000.0                                                                                                    
                                                                                                                                
     Purpose: Increase University funding with portion of                                                                       
     the ACPE dividend.                                                                                                         
                                                                                                                                
Co-Chair  Mulder  noted  that  the  amendment  would  add  $2                                                                   
million  dollars in  additional  funds to  the University  of                                                                   
Alaska from  the Alaska Postsecondary Education  Commission's                                                                   
dividend.                                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment UA-2:                                                                            
                                                                                                                                
     Add:                                                                                                                       
     Statewide Programs and Services                                                                                            
     Budget Reductions/Additions - Statewide                                                                                    
     $7,490.8 GF                                                                                                                
                                                                                                                                
Representative Davies  spoke in support of the  amendment. He                                                                   
noted that  the amendment would  fully fund the  university's                                                                   
request. He noted that President  Hamilton concluded that the                                                                   
University  of Alaska  "hit the  wall" in  FY96. He  stressed                                                                   
that  the  state needs  to  make  an investment  in  training                                                                   
workers and developing  new jobs through the  university. The                                                                   
university leads  the charge on research and  development. He                                                                   
emphasized the value placed on  the university by the state's                                                                   
founders.                                                                                                                       
                                                                                                                                
Representative  Whitaker  spoke  in  support.  Representative                                                                   
Harris expressed  support but  emphasized that other  funding                                                                   
mechanisms would be sought.                                                                                                     
                                                                                                                                
Co-Chair Mulder  acknowledged the plea for the  University of                                                                   
Alaska, but emphasized  the budget restraints.  He noted that                                                                   
the additional funding for the  University is not universally                                                                   
supported.  He stated  that  he would  continue  to look  for                                                                   
additional funding.                                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED: Bunde, Foster, Harris,  Hudson, Lancaster, Whitaker,                                                                   
Williams, Mulder                                                                                                                
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
RECESS                                                                                                                        
                                                                                                                                
The Committee recessed at 7:55 P.M.                                                                                             
                                                                                                                                
RECONVENED                                                                                                                    
                                                                                                                                
The Committee reconvened at 8:20 P.M.                                                                                           
                                                                                                                                
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES                                                                              
                                                                                                                                
Representative Foster MOVED to ADOPT Amendment DOT-#3:                                                                          
                                                                                                                                
     Replace  intent language for  the Marine Highway  System                                                                   
     to read:                                                                                                                   
                                                                                                                                
     The Department  is projecting the depletion  of the fund                                                                   
     prior  to   the  end  of   the  FY02  fiscal   year  and                                                                   
     anticipates that there may  be a need to reduce services                                                                   
     if that  amount is not funded.  It is the intent  of the                                                                   
     Legislature that the Department  should take measures to                                                                   
     reduce operating  costs and increase revenues.  If those                                                                   
     measures  do not  allow  for the  projected  293 to  298                                                                   
     weeks  of  service,  the  Department  should  request  a                                                                   
     supplemental appropriation.                                                                                                
                                                                                                                                
     Explanation:                                                                                                             
                                                                                                                                
     The  expected  depletion  of the  fund   is not  due  to                                                                   
     higher  fuel  prices in  fiscal  year 2002  adopted.  No                                                                   
     Objection.                                                                                                                 
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
LEGISLATURE                                                                                                                   
                                                                                                                                
Representative  Moses MOVED  to ADOPT  the amended  Amendment                                                                   
LEG-1.                                                                                                                          
                                                                                                                                
     Delete:                                                                                                                    
     Legislature                                                                                                                
     Legislative Council       $45.0                                                                                            
                                                                                                                                
     Add:                                                                                                                       
     Department of Fish and Game                                                                                                
     Administration and Support                                                                                                 
     Boards of Fisheries and Game                                                                                               
     Advisory Committees       $45.0 general fund                                                                               
                                                                                                                                
Representative Harris OBJECTED.                                                                                                 
                                                                                                                                
Representative  Moses noted  that the  request would  restore                                                                   
funding to the  boards and allow additional  meeting days and                                                                   
travel.                                                                                                                         
                                                                                                                              
TAPE HFC 01 - 53, Side A                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies                                                                                                  
OPPOSED:  Harris,   Hudson,   Lancaster,   Whitaker,   Bunde,                                                                   
          Foster, Williams, Mulder                                                                                              
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Croft MOVED  to ADOPT  Amendment LEG-2.   Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     Legislative Operating Budget                                                                                               
     Delete: 1,500.0 GF                                                                                                         
                                                                                                                                
     Legislative Council                                                                                                        
     Delete: 500.0 CF                                                                                                           
                                                                                                                                
Representative  Croft observed  that  other departments  have                                                                   
been asked to find efficiencies. The Legislature's carry-                                                                       
forward is $3 million dollars  for FY 02. The amendment would                                                                   
reduce the carry-forward by $2 million dollars.                                                                                 
                                                                                                                                
Representative  Croft MOVED  to  amend by  adding $2  million                                                                   
dollars to the University of Alaska's  budget. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative Croft  commented that whatever happens  to the                                                                   
rest   of  the   departments   should  also   occur  in   the                                                                   
Legislature's budget.                                                                                                           
                                                                                                                                
Co-Chair  Mulder spoke  against  the amendment.  He  observed                                                                   
that  there  has been  an  attempt  to take  legislators  and                                                                   
legislative committees  to rural Alaska. He  pointed out that                                                                   
this  is expensive,  but  emphasized the  need  to unite  the                                                                   
state.                                                                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Croft, Davies                                                                                                  
OPPOSED:  Harris,   Hudson,   Lancaster,   Whitaker,   Bunde,                                                                   
          Foster, Williams, Mulder                                                                                              
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
OFFICE OF THE GOVERNOR                                                                                                        
                                                                                                                                
Representative  Davies MOVED to  ADOPT Amendment GOV-1.   Co-                                                                   
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
     Add:                                                                                                                       
     Office of the Governor                                                                                                     
     Governmental Coordination                                                                                                  
     $4,500.0 Federal funds                                                                                                     
                                                                                                                                
Representative  Davies   explained  that  Congress   recently                                                                   
appropriated  funds for Coastal  Impact Assistance  (CARA) to                                                                   
oil  producing states,  including Alaska.  Alaska's share  is                                                                   
$12,850.0  of which 35%  or $4,500.0  is directed to  county-                                                                   
equivalent  coastal  political subdivisions  (i.e.,  boroughs                                                                   
and  Coastal  Resource  Service  Areas) based  on  a  formula                                                                   
contained in the bill.                                                                                                          
                                                                                                                                
Co-Chair Mulder  clarified that he  did not oppose  CARA, but                                                                   
questioned  what  exactly  the funds  are  appropriating.  He                                                                   
thought  it  would  be  appropriate   to  come  back  to  the                                                                   
Legislative   Budget   and   Audit   Committee   for   future                                                                   
authorization. The  funds do not  have to be appropriated  in                                                                   
the  next  fiscal   year.  He  felt  that  the   process  was                                                                   
cumbersome.                                                                                                                     
                                                                                                                                
PATRICK  GALVIN, DIRECTOR,  GOVERNMENTAL CORDINATION,  Office                                                                   
of  the Governor  provided  information  on the  request.  He                                                                   
stated that the  $4.5 million dollar request  constitutes the                                                                   
local  portion  of  the  CARA   funds  for  FY02.  The  state                                                                   
anticipates a  total appropriation of $12.8  million dollars.                                                                   
Federal  statute  requires  that   35  percent  go  to  local                                                                   
boroughs  and  Coastal  Resource  Service  Areas.  The  local                                                                   
portion  would  be appropriated  to  the  state as  one  pass                                                                   
through grant. The  State has no say on what  those funds are                                                                   
spent  on as  long  as they  meet federal  requirements.  The                                                                   
state has  begun to  solicit plans  from local entities.  The                                                                   
state would place  the local plans and passed them  on to the                                                                   
National Oceanic  and Atmospheric  Administration (NOAA)  for                                                                   
approval.  He  added  that the  money  would  be  distributed                                                                   
according to a federal formula.   It is anticipated that some                                                                   
boroughs  will  receive  a sizeable  appropriation  based  on                                                                   
population.                                                                                                                     
                                                                                                                                
Representative Hudson concluded  that the state's function is                                                                   
receivership  for distribution with  no determination  on how                                                                   
funds are used.                                                                                                                 
                                                                                                                                
Mr.  Galvin explained  that the  federal formula  establishes                                                                   
the appropriation  and provides a  list of how the  money can                                                                   
be spent.  As long as  the projects fall  within the  list of                                                                   
allowable  projects there  is  no direction  from the  state.                                                                   
The  National   Oceanic   and  Atmospheric   Administration's                                                                   
responsibility is to approve the state plan as submitted.                                                                       
                                                                                                                                
Co-Chair Mulder  expressed his hope that NOAA's  review would                                                                   
not be a rubber stamp.                                                                                                          
                                                                                                                                
Representative  Davies questioned  the  decision to  withhold                                                                   
authorization.  Co-Chair Mulder  suggested that the  projects                                                                   
could come before the Legislative  Budget and Audit Committee                                                                   
when the plan is developed.                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Davies                                                                                                         
OPPOSED:  Croft, Harris, Hudson,  Lancaster, Whitaker, Bunde,                                                                   
          Foster, Williams, Mulder                                                                                              
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative Croft WITHDREW Amendment GOV-2:                                                                                  
                                                                                                                                
     Add:                                                                                                                       
     Office of the Governor                                                                                                     
     Governmental Coordination                                                                                                  
     $66.6 General funds                                                                                                        
                                                                                                                                
LANGUAGE SECTION                                                                                                              
                                                                                                                                
Co-Chair Williams MOVED to ADOPT Amendment LANG-1:                                                                              
                                                                                                                                
     DIVE FISHERY  MANAGEMENT ASSESSMENT.   The dive  fishery                                                                   
     management  assessment collected  under  AS 43.76.150  -                                                                   
     43.76.210  in fiscal  year 2001  and deposited  into the                                                                   
     state  treasury under  AS  43.76.190(d) is  appropriated                                                                   
     from the  state treasury to  the Department of  Fish and                                                                   
     Game for disbursement under  AS 43.76.200 in fiscal year                                                                   
     2002  of the  amount  collected in  each  administrative                                                                   
     area to the qualified regional  dive fishery development                                                                   
     association operating within  the administrative area in                                                                   
     which the assessment was  collected. For purposes of the                                                                   
     state  accounting  system,  the amount  appropriated  in                                                                   
     this  section may  be treated as  an appropriation  made                                                                   
     under  the   fund  source  code  for   receipt-supported                                                                   
     services.                                                                                                                  
                                                                                                                                
Vice-Chair Bunde  clarified that  the Department of  Fish and                                                                   
Game  doesn't  object  to the  amendment.  Co-Chair  Williams                                                                   
noted   that   the  Southeast   divers   also   support   the                                                                   
legislation. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
Representative Davies MOVED to ADOPT Amendment LANG-2:                                                                          
                                                                                                                                
     Amend Section 10:                                                                                                          
                                                                                                                                
      *  Sec. 10.  FEDERAL AND  OTHER  PROGRAM RECEIPTS.  (a)                                                                 
     Federal   receipts,  designated   program  receipts   as                                                                   
     defined  in   AS  37.05.  146(b)(3),   program  receipts                                                                 
     defined  in  AS  44.21.045(b)~  receipts  of  commercial                                                                 
     fisheries    test    fishing   operations    under    AS                                                                   
     37.05.146(b)(4)(U),  corporate  receipts  of the  Alaska                                                                   
     Aerospace Development Corporation,  and program receipts                                                                   
     of  the Alaska  Science and  Technology Foundation  that                                                                   
     exceed  the   amounts  appropriated  by  this   Act  are                                                                   
     appropriated conditioned  on compliance with the program                                                                   
     review provisions of AS 37.07.080(h).                                                                                      
          (b) if federal or other program receipts as                                                                           
     defined in  AS 37.05.146  and in AS 44.21.045(b)  exceed                                                                 
     the   estimates   appropriated    by   this   Act,   the                                                                   
     appropriations   from  state  funds  for   the  affected                                                                   
     program may  be reduced by the excess if  the reductions                                                                   
     are consistent with applicable federal statutes.                                                                           
          (c) If federal or other program receipts as                                                                           
     defined  in AS  37.05.146  and in  AS 44.21.045(b)  fall                                                                 
     short  of the estimates  appropriated  by this  Act, the                                                                   
     affected appropriation  is reduced by the  amount of the                                                                   
     shortfall in receipts.                                                                                                     
                                                                                                                                
     Explanation:                                                                                                             
     This amendment would include  Information Services Funds                                                                   
     in the types  of funds the Legislative  Budget and Audit                                                                   
     Committee (LB&A) would be able to review.                                                                                  
                                                                                                                                
     The   Department   of   Administration    is   currently                                                                   
     evaluating  responses to the  Request for Proposals  for                                                                   
     telecommunications  services.  These  are  very  complex                                                                   
     proposals  and  it  now   appears  that  the  evaluation                                                                   
     process  won't be  complete until  at least  June. As  a                                                                   
     result, the department is  unable to predict what impact                                                                   
     an award might have on the  Information Technology Group                                                                   
     (1TG) budget.                                                                                                              
                                                                                                                                
     One    possibility   is    that    payment   for    some                                                                   
     telecommunications  costs  which  departments  currently                                                                   
     pay  vendors  for  directly,   such  as  cellular  phone                                                                   
     charges, might  be sent through  1TG so the  state would                                                                   
     have one consolidated payment to a vendor.                                                                                 
                                                                                                                                
     While such  a movement of  funds between  state agencies                                                                   
     could  normally   be  dealt  over  the   short  term  as                                                                   
     unbudgeted inter-agency  receipts, that is  not the case                                                                   
     with funds transferred to  1TG. AS 44.21.045(b) makes it                                                                   
     clear  that this  kind  of movement  of  funds would  be                                                                   
     subject to review by LB&A.                                                                                                 
                                                                                                                                
     The department  does not know if it would  actually need                                                                   
     to present  a proposal to  LB&A and would likely  not do                                                                   
     so unless it is confronted  with a situation where cash-                                                                   
     flow constraints become and  issue. However, it would be                                                                   
    prudent to leave this avenue open should it become.                                                                         
                                                                                                                                
Mr.   Spencer  explained   that  the   amendment  would   add                                                                   
Information  Services Fund funds  to the  list of funds  that                                                                   
can go before the Legislative  Budget and Audit Committee for                                                                   
a Revised Program - Legislative  (RPL) during the interim. He                                                                   
clarified  that  there are  proposals  for  telecommunication                                                                   
Request  for  Proposals  (RFP) to  partnership  with  private                                                                   
industry. If  intent to award  were issued discussions  would                                                                   
begin with vendors  to provide services. Funds  in individual                                                                   
budgets   that  do   not  go   through   the  Department   of                                                                   
Administration,  Information  Technology  Group  (ITG)  (cell                                                                   
phones, pagers,  or long  distance charges  not on  the state                                                                   
network) may want  to be consolidated in order  for the state                                                                   
to make  one payment. The  department needs authorization  to                                                                   
accept these funds during the interim.                                                                                          
                                                                                                                                
DAVID TEAL,  DIRECTOR, LEGISLATIVE  FINANCE DIVISION  thought                                                                   
that the  authority to  approach the  Legislative Budget  and                                                                   
Audit  Committee existed  through their  enabling statues  in                                                                   
Title 44. He felt that the amendment would be duplicative.                                                                      
                                                                                                                                
Mr. Spencer stressed  that the amendment would  clarify their                                                                   
ability to request authorization  from the Legislative Budget                                                                   
and Audit Committee.                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment LANG-3:                                                                           
                                                                                                                                
     Add a new section to read:                                                                                                 
                                                                                                                                
     Sec._____.  FEDERAL  MEDICAL ASSISTANCE  PERCENTAGE.  If                                                                   
     the estimated  federal receipts  for medical  assistance                                                                   
     appropriated  in  sec. 1  of  this  Act are  below  59.8                                                                   
     percent  for Medicaid  services during  the fiscal  year                                                                   
     ending  June 30, 2002,  the amount  of the shortfall  in                                                                   
     federal receipts  is appropriated from the  general fund                                                                   
     to  the Department  of Health  and  Social Services  for                                                                   
     Medicaid services.                                                                                                         
                                                                                                                                
     Explanation:                                                                                                             
                                                                                                                                
     This  section provides  general  funds  to replace  lost                                                                   
     federal  funds if  the  federal participation  rate  for                                                                   
     Medicaid  (FMAP)   service  falls  below   59.8%  during                                                                   
     FY2002.  While the  current rate  is 60.16% for  federal                                                                   
     FY2001,  the state  FY2002  budget was  based on  59.8%.                                                                   
     Under current  federal statutes Alaska's FMAP  rate will                                                                   
     drop  to 57.38%,  a  reduction  of 2.42%  or  a loss  of                                                                   
     approximately  $10  million GF  from  what is  currently                                                                   
     budgeted.  This drop  will  occur if  Congress does  not                                                                   
     extend the one-year negotiated  rate to future years and                                                                   
     will go into effect October 1, 2001.                                                                                       
                                                                                                                                
Representative  Croft explained  that the amendment  provides                                                                   
insurance if the  state fails to receive an  extension on its                                                                   
Medicaid percentages from Congress.                                                                                             
                                                                                                                                
Co-Chair Mulder observed that  the amendment is an open-ended                                                                   
appropriation.  He felt that  the congressional  action would                                                                   
occur.                                                                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED:  Bunde,    Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment LANG-4:                                                                           
Co-Chair Mulder OBJECTED.                                                                                                       
                                                                                                                                
     Add new section:                                                                                                           
                                                                                                                                
   "Sec. -. LONGEVITY BONUS GRANT PROGRAM. If the amount                                                                        
    appropriated in section  1 of this Act for  the longevity                                                                   
    bonus  grant program  (AS  47.45)  is not  sufficient  to                                                                   
    fully fund that program  for the fiscal year  ending June                                                                   
    30, 2002,  the amount  of the  shortfall is  appropriated                                                                   
    from   the   general   fund   to    the   Department   of                                                                   
    Administration."                                                                                                            
                                                                                                                                
Representative Croft spoke in support of Amendment Lang-4.                                                                      
                                                                                                                                
Co-Chair Mulder pointed out that  the program has always been                                                                   
funded  and indicated  that it would  receive a  supplemental                                                                   
appropriation if needed.                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Moses                                                                                                  
OPPOSED: Bunde,     Foster,   Harris,   Hudson,    Lancaster,                                                                   
          Whitaker, Williams, Mulder                                                                                            
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
TECHNICAL AMENDMENTS                                                                                                          
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT Amendment TECH-1:                                                                                
                                                                                                                                
     Delete page 9 lines 7 - 17;                                                                                                
     Page 9 line 20 - 10 line 14; and                                                                                           
     Page 10 line 17 - page 11 line 5.                                                                                          
                                                                                                                                
     Purpose:  This  eliminates  the  Capital  appropriations                                                                   
     from  HB  104,  which  represent   last  year's  capital                                                                   
     appropriation  with the exception  of the  appropriation                                                                   
     for the  Urban Transition Housing Facility  (Anchor Arms                                                                   
     Project), which is a FY 02 request.                                                                                        
                                                                                                                                
                                                                                                                                
     Information  on  technical  change  by  the  Legislative                                                                   
     Finance Division:                                                                                                          
                                                                                                                                
     Intent language  on page 3, lines  3 through 8  of CS HB                                                                   
     104(FIN) should  be identical to the intent  language on                                                                 
     page  7, lines  9 through  13  of CS  FIB 103(FIN).  The                                                                   
     language   is  attached  to   the  Inmate  Health   Care                                                                   
     allocation  within  the  Administration  and  Operations                                                                   
     appropriation  in  the Department  of  Corrections.  The                                                                   
     language  in  FIB  103  was  revised  to  refer  to  the                                                                   
     legislature   rather   than   to   the   House   Finance                                                                   
     subcommittee.  The delivered version  of NB 104  was run                                                                   
     before the revisions were made.                                                                                            
                                                                                                                                
     Versions of FIB 104 will  print correctly in the future,                                                                   
     but I  believe the committee  should be informed  of the                                                                   
     correction.  Whether to address  the revision  through a                                                                   
     formal amendment or inform  the committee of a technical                                                                   
     correction is your decision.                                                                                               
                                                                                                                                
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER explained                                                                      
that capital and operational expenses are both contained in                                                                     
the mental health bill [HB104]. The amendment strips the                                                                        
previous years capital projects and inserts one current                                                                         
capital request as a placeholder, which protects the title                                                                      
of the bill.                                                                                                                    
                                                                                                                                
Representative Davies questioned why all the requests were                                                                      
not included. Mr. Dewitt explained that last year's capital                                                                     
projects are currently included in HB 104.                                                                                      
                                                                                                                                
Ms. McConnell clarified that the projects submitted in HB                                                                       
104 are the current year's [FY02] mental health request.                                                                        
                                                                                                                                
Co-Chair  Mulder noted  that  the intent  is  to combine  the                                                                   
capital  and  mental health  projects  into  one bill  in  an                                                                   
effort  to   work  with  the   Alaska  Mental   Health  Trust                                                                   
Authority.                                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Mulder  MOVED  to  allow  the  Legislative  Finance                                                                   
Division  to   make  technical  corrections   and  conforming                                                                   
changes to  HB 103 an  HB 104. There  being NO OBJECTION,  it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                  
                                                                                                                                
Representative Lancaster MOVED to ADOPT Amendment ADIM-14:                                                                      
                                                                                                                                
     ADD                                                                                                                        
     Department of Administration                                                                                               
     Senior Services                                                                                                            
     Protection, Community Services and Administration.                                                                         
     $200.0 thousand dollars                                                                                                    
                                                                                                                                
Representative Lancaster  explained that the  amendment would                                                                   
adjust the  general fund support  for general  relief grants.                                                                   
This would allow  a small increase to about  150 clients. Co-                                                                   
Chair  Mulder explained  that  a federal  grant was  received                                                                   
that  could  be  used for  Senior  Citizens.  The  additional                                                                   
general  funds  with  the  federal  funds  will  address  the                                                                   
request contained in Amendment HSS-6.                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Vice-Chair  Bunde  MOVED  to  ADOPT  the  proposed  committee                                                                   
substitutes for HB 103 (22-LS0410\L,  3/3/01) and HB 104 (22-                                                                   
LS0411\C, 3/1/01).                                                                                                              
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                   
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment PS-13:                                                                            
                                                                                                                                
     ADD                                                                                                                        
     Department of Public Safety                                                                                                
     Village Public Safety Officers                                                                                             
     Contracts           $576.0                                                                                                 
                                                                                                                                
Representative  Croft spoke  in  support. He  noted that  the                                                                   
proposal would fund 10 new village public safety officers.                                                                      
                                                                                                                                
Vice-Chair Bunde argued against  the amendment. He noted that                                                                   
a  federal   grant  will  provide  additional   officers  and                                                                   
recommended  that  the  state   continue  to  pursue  federal                                                                   
support.                                                                                                                        
                                                                                                                                
Representative Davies  spoke in support. He  pointed out that                                                                   
the federal  funds only  apply to dry  villages. The  need is                                                                   
more substantial,  in  some instances,  in the wet  villages.                                                                   
Many villages will not be covered.                                                                                              
                                                                                                                                
Vice-Chair Bunde  argued that the intent is  to encourage dry                                                                   
villages.  Representative Davies  responded  by pointing  out                                                                   
that it is still legal to buy  alcohol in the state of Alaska                                                                   
and  noted  that  state  troopers are  not  taken  away  from                                                                   
Anchorage or Fairbanks because they sell alcohol.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Davies, Foster, Moses                                                                                          
OPPOSED:  Bunde,   Harris,   Hudson,   Lancaster,   Whitaker,                                                                   
          Williams, Mulder                                                                                                      
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Co-Chair  Williams MOVED  to  report CSHB  103  (FIN) out  of                                                                   
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
CS HB  103 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation.                                                                                                           
                                                                                                                                
Co-Chair  Williams MOVED  to  report CSHB  104  (FIN) out  of                                                                   
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
CS HB  104 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation.                                                                                                           

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