Legislature(2007 - 2008)HOUSE FINANCE 519

03/20/2007 01:30 PM FINANCE


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01:44:01 PM Start
01:45:57 PM HB95 || HB96
03:29:59 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
+= HB 95 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 96 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Amendments
HOUSE BILL NO. 95                                                                                                             
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     loan program  expenses of state government,  for certain                                                                   
     programs,    and    to    capitalize    funds;    making                                                                   
     appropriations  under art. IX, sec.  17(c), Constitution                                                                   
     of the State  of Alaska; and providing  for an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
HOUSE BILL NO. 96                                                                                                             
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     capital    expenses    of   the    state's    integrated                                                                   
     comprehensive mental  health program; and  providing for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment PERS #1:                                                                             
                                                                                                                                
     OFFERED BY:         Co-Chair Chenault                                                                                      
     DEPARTMENT:         Various                                                                                                
     APPROPRIATION:      Various                                                                                                
     ALLOCATION:         Various                                                                                                
                                                                                                                                
     ADD:                53.1       GE/Match (1003)                                                                             
                         2,377.0    GF (1004)                                                                                   
                         31.9       GF/PR (1005)                                                                                
                         119.1      GFMH (1037)                                                                                 
                                                                                                                                
     EXPLANATION:   In the Governor's request, about 750                                                                        
     employees were  budgeted as participants in  the defined                                                                   
     contribution   retirement   plan,   with   an   employer                                                                   
     contribution rate of less  than 11 percent. In the fixed                                                                   
     rate  retirement plan  envisioned by  the House  Finance                                                                   
     Committee,  agencies will contribute  22 percent  of all                                                                   
     employees'   salaries  to   retirement  accounts.   This                                                                   
      amendment adds II  percent of the  general fund  portion                                                                  
      of salaries budgeted for defined contribution employees                                                                   
      in all  agencies. Affected  allocations  and the  amount                                                                  
      and fund sources required  to provide agencies with  the                                                                  
      money to  pay a rate  of 22  percent are  listed on  the                                                                  
      attached seven pages.                                                                                                     
                                                                                                                                
 Representative Hawker OBJECTED.                                                                                                
                                                                                                                                
 SHARON KELLY, STAFF,  CO-CHAIR CHENAULT, explained Amendment                                                                   
 PERS #1 is an  addition of the general  fund portion of  PERS                                                                  
 salaries budgeted for defined  contribution employees in  all                                                                  
 agencies.                                                                                                                      
                                                                                                                                
 Representative Hawker  WITHDREW his OBJECTION.   There  being                                                                  
 NO further OBJECTION, it was so ordered.                                                                                       
                                                                                                                                
 1:47:50 PM                                                                                                                   
                                                                                                                                
 Co-Chair Chenault MOVED to ADOPT Amendment PERS #2:                                                                            
                                                                                                                                
      OFFERED BY:         Co-Chair Chenault                                                                                     
      DEPARTMENT:         Alaska Court System                                                                                   
      APPROPRIATION:      Alaska Court System                                                                                   
                                                                                                                                
      ALLOCATION:         Appellate Courts                                                                                      
      ADD:                493.5 General Funds (1004)                                                                            
                                                                                                                                
      ALLOCATION:         Trial Courts                                                                                          
      ADD:                3,272.3 General Funds (1004)                                                                          
                                                                                                                                
      ALLOCATION:         Administration and Support                                                                            
      ADD:                43.6 General Funds (1004)                                                                             
                                                                                                                                
      EXPLANATION:    The  Judicial  Retirement  System   rate                                                                  
      remains  at  56.98%;  it  does  not  drop  to   the  225                                                                  
      applicable to PERS employees.                                                                                             
                                                                                                                                
 Representative Meyer OBJECTED.                                                                                                 
                                                                                                                                
 Ms. Kelly  explained  that  Court System  information  as  it                                                                  
 relates to retirement was consolidated.  This amendment  adds                                                                  
 back funds to the appellate  courts, to trial courts, and  to                                                                  
 administration and support.                                                                                                    
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
 Representative Gara  inquired  if the  payment rate  for  the                                                                  
 Alaska Court System employees  will remain at 56.98  percent.                                                                  
 Ms. Kelly  replied that  the Judicial  Retirement System  was                                                                  
 not  addressed  in  TRS/PERS  fixes.    Representative   Gara                                                                  
 requested that that be addressed by the end of session.                                                                        
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
1:49:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment PERS #3:                                                                             
                                                                                                                                
     OFFERED BY:         Co-Chair Chenault                                                                                      
     DEPARTMENT:         Natural Resources                                                                                      
     APPROPRIATION:      Resource Development                                                                                   
     ALLOCATION:         Oil & Gas Development                                                                                  
                                                                                                                                
     ADD:                $0.7 General Funds (1004)                                                                              
     DELETE:             $0.7 Investment Loss Trust Fund                                                                        
                         (1053)                                                                                                 
                                                                                                                                
     EXPLANATION:   This amendment  removes excess Investment                                                                   
     Loss Trust Fund receipts  that were appropriated as part                                                                   
     of  the PERS  adjustments  made in  the draft  committee                                                                   
     substitute.                                                                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Ms. Kelly explained that the PERS fix overspent the                                                                             
Investment Loss Trust Fund by $700, and this amendment                                                                          
replaces that amount with general funds.                                                                                        
                                                                                                                                
Co-Chair Meyer WITHDREW his OBJECTION.  There being NO                                                                          
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
1:50:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment DOA #1:                                                                              
                                                                                                                                
     OFFERED BY:         Co-Chair Chenault                                                                                      
                                                                                                                                
     DEPARTMENT:         Administration                                                                                         
     APPROPRIATION:      Legal and Advocacy Services                                                                            
     ALLOCATION:         Office of Public Advocacy                                                                              
                                                                                                                                
     ADD:                231.2 GF                                                                                               
                                                                                                                                
     EXPLANATION:  Increment for the support of Elder Fraud                                                                     
     increased case load.  Add Attorney II, Investigator and                                                                    
     one Clerk II.                                                                                                              
                                                                                                                                
          Attorney II          97,078                                                                                           
          Investigator III     84,739                                                                                           
          Clerk II             49,382                                                                                         
                            $231,199                                                                                            
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Ms. Kelly explained that the case load for Elder Fraud has                                                                      
significantly increased, hence the need for more staff.                                                                         
                                                                                                                                
 Co-Chair Chenault commented that Representatives Gara and                                                                      
 Thomas have also been concerned with this issue.  He pointed                                                                   
 out the higher case loads regarding Elder Fraud.                                                                               
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.  There being NO                                                                         
 further OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
 1:51:34 PM                                                                                                                   
                                                                                                                                
 Representative Thomas MOVED to ADOPT Amendment DOA #2:                                                                         
                                                                                                                                
      OFFERED BY:         Representative Thomas                                                                                 
                                                                                                                                
      DEPARTMENT:         ADMINISTRATION                                                                                        
      APPROPRIATION:      Centralized Administrative Services                                                                   
      ALLOCATION:         Office of the Commissioner                                                                            
                                                                                                                                
      Amendment to Sec. 11.  DEPARTMENT OF ADMINISTRATION                                                                       
                                                                                                                                
      The sum of $1,267,600 [$2,251,600] is appropriated  from                                                                
      the general  fund to the  Department of Administration,                                                                   
      commissioner's  office,   for  distribution   to   state                                                                  
      agencies to  offset a  portion of  chargeback rates  for                                                                  
      enterprise  technology  services  for  the  fiscal  year                                                                  
      ending June 30, 2008.                                                                                                     
      It is the intent of the legislature that state  agencies                                                                  
      receiving  money   under  (b)  of   this  section   will                                                                  
      reimburse  the money  [FROM  VARIOUS  FUND  SOURCES]  as                                                                  
      required   by   the  enterprise   technology    services                                                                  
     federally approved statewide cost allocation plan.                                                                         
      The sum  of $740,000  is appropriated  from the  general                                                                  
      fund    to    the   Department    of    Administration,                                                                   
      commissioner's  office,   for  distribution   to   state                                                                  
      agencies to  offset the increased  rates for facilities                                                                   
      covered  by   the  Alaska  public   building  fund   (AS                                                                  
      37.05.570) for the fiscal year ending June 30, 2008.                                                                      
      It is the intent of the legislature that state  agencies                                                                  
      receiving  money   under  (d)  of   this  section   will                                                                  
      reimburse  the money  [FROM  VARIOUS  FUND  SOURCES]  as                                                                  
      required by  the Alaska public  building fund federally                                                                   
      approved cost allocation plan.  The amounts distributed                                                                   
      are  intended  to  cover  a  portion  of  the  costs  of                                                                  
      increased  rates   resulting  from   fiscal  year   2008                                                                  
      operations.                                                                                                               
                                                                                                                                
      EXPLANATION: This  amendment  is needed  to reflect  the                                                                  
      Governor's  amendments  for   subsection  (b)  for   the                                                                  
      following three items:                                                                                                    
      (1)  an  addition  of  $825,000  general  fund  for  the                                                                  
      exchange/active   directory   maintenance   costs    and                                                                  
      training,                                                                                                                 
      (2) an addition of  $250,000 general fund for  security-                                                                  
      anti-virus software and server hosting, and                                                                               
     (3) a reduction of $1,826,000  for enterprise technology                                                                   
     efficiencies.                                                                                                              
     (4) a reduction of $232,000  of non-GF fund sources that                                                                   
     are available due to the PERS rate adjustment                                                                              
                                                                                                                                
     Subsections  (c) and (e) are  amended to reflect  a more                                                                   
     accurate  description  of  the  reimbursement  of  money                                                                   
     required   by   the   enterprise   technology   services                                                                   
     federally approved statewide cost allocation plan.                                                                         
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Thomas  explained the  amendment  amalgamates                                                                   
three amendments  proposed by the governor not  acted upon in                                                                   
subcommittee.                                                                                                                   
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
1:52:52 PM                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to ADOPT Amendment DOA #3:                                                                          
                                                                                                                                
     OFFERED BY:         Representative Hawker                                                                                  
                                                                                                                                
     DEPARTMENT:         Administration                                                                                         
     APPROPRIATION:      Legal and Advocacy Services                                                                            
     ALLOCATION:         Public Defender Agency                                                                                 
                                                                                                                                
     DELETE:             ($106,100)                                                                                             
                                                                                                                                
     FUNDING SOURCE:     1092 Mental Health Trust Authority                                                                     
                         Authorized Receipts                                                                                    
                                                                                                                                
     EXPLANATION:   Available  Mental Health Trust  Authority                                                                   
     Authorized  Receipts are  reduced by  $106,100 to  match                                                                   
     the Trust Authority's funding recommendation.                                                                              
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Hawker  explained that the  amendment conforms                                                                   
the budget  to those authorities  authorized by the  board of                                                                   
directors of the Mental Health Trust Authority.                                                                                 
                                                                                                                                
Representative  Gara asked what  the impact of  the amendment                                                                   
on  Therapeutic  Courts  would  be.    Representative  Hawker                                                                   
responded that  the amendment provides less  MHTAAR authority                                                                   
for the  Therapeutic Court System.   It is expected  that the                                                                   
department  will continue  to  fund Therapeutic  Courts  with                                                                   
other available  resources.  Representative Gara  wondered if                                                                   
the  department  was  counting  on the  $106,000  during  the                                                                   
budget proposal process.  Representative  Hawker replied that                                                                   
the  department  was privy  to  this information  during  the                                                                   
budget process.  He termed the  change a technical amendment.                                                                   
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.  There being NO                                                                         
 OBJECTION, it was so ordered.                                                                                                  
                                                                                                                                
 1:55:26 PM                                                                                                                   
                                                                                                                                
 Representative Kelly MOVED to ADOPT Amendment DCCED #1:                                                                        
                                                                                                                                
      OFFERED BY:         Representative Kelly                                                                                  
                                                                                                                                
      DEPARTMENT:         Commerce, Community and Economic                                                                      
      Development                                                                                                               
      APPROPRIATION:      Corporations,      Business      and                                                                  
                          Professional Licensing                                                                                
      ALLOCATION:         Corporations,      Business      and                                                                  
                          Professional Licensing                                                                                
                                                                                                                                
      ADD THE FOLLOWING WORDAGE:                                                                                                
      The amount appropriated  by this appropriation  includes                                                                  
      the  unexpected and  unobligated  balance  on  June  30,                                                                  
      2007, of  the  Department of  Commerce,  Community,  and                                                                  
      Economic   Development,   division   of   corporations,                                                                   
      business and professional  licensing, receipts from  the                                                                  
      fees under AS 08.01.065(a), (c), and (f)-(i).                                                                             
                                                                                                                                
      EXPLANATION:   This wordage was  inadvertently left  out                                                                  
      of the  Governor's request  and is needed  to allow  the                                                                  
      receipts  collected  from  the  various  boards   to  be                                                                  
      carried forward.                                                                                                          
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
 Representative  Kelly explained  that  the  wordage  in  this                                                                  
 amendment  was  inadvertently  left  out  of  the governor's                                                                   
 request and is needed to  allow receipts from various  boards                                                                  
 to be carried forward.                                                                                                         
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.  There being NO                                                                         
 further OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
 1:56:12 PM                                                                                                                   
                                                                                                                                
 Representative Kelly MOVED to ADOPT Amendment DCCED #2:                                                                        
                                                                                                                                
      OFFERED BY:         Representative Kelly                                                                                  
                                                                                                                                
      DEPARTMENT:         Commerce, Community & Economic                                                                        
                          Development                                                                                           
      APPROPRIATION:      Alaska Seafood Marketing Institute                                                                    
      ALLOCATION:         Alaska Seafood Marketing Institute                                                                    
                                                                                                                                
      ADD:                $1,250.0 (One time Inc.)                                                                              
                                                                                                                                
      FUNDING SOURCE:     Receipt Supported Services                                                                            
                                                                                                                                
     EXPLANATION:   Increasing  ASMI's  RSS authorization  to                                                                   
     $3M from $1.725M will allow  ASMI to complete the second                                                                   
     year  of the TV  component of  its consumer  advertising                                                                   
     campaign with  only minor reductions and  provide enough                                                                   
     authorization  industry generated  funds to  be used  to                                                                   
     match federal monies for  the USDA Market Access Program                                                                   
     which  have been approved  for this  FY. The carry  over                                                                   
     of   remaining  industry funds will better  level ASMI's                                                                   
     financial picture in the coming fiscal year.                                                                               
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Kelly  explained that the  amendment increases                                                                   
ASMI's receipt  authority to $3 million from  $1.725 million,                                                                   
which  will allow  ASMI to complete  their  TV campaign.   He                                                                   
noted that it does not impact general funds.                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
1:57:30 PM                                                                                                                    
                                                                                                                                
Representative Kelly MOVED to ADOPT Amendment DCCED #3:                                                                         
                                                                                                                                
     OFFERED BY:         Representative Kelly                                                                                   
                                                                                                                                
     DEPARTMENT:         Commerce, Community & Economic                                                                         
                        Development                                                                                             
     APPROPRIATION:      Qualified      Trade     Association                                                                   
                         Contract                                                                                               
     ALLOCATION:         Qualified      Trade     Association                                                                   
                         Contract                                                                                               
                                                                                                                                
     ADD:                $1,000.0                                                                                               
                                                                                                                                
     FUNDING SOURCE:     Vehicle Rental Tax                                                                                   
                                                                                                                                
     EXPLANATION:   Increase funding  level for  "Destination                                                                 
     Marketing".                                                                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Kelly explained  that the amendment removes $1                                                                   
million  from the  vehicle  rental tax  and  allocates it  to                                                                   
Destination Marketing.                                                                                                          
                                                                                                                                
Representative  Gara asked if  the additional money  compares                                                                   
to last  year's  marketing allotment.   Representative  Kelly                                                                   
said it would add $1 million to  the state's share, which was                                                                   
roughly $5 million last year.                                                                                                   
                                                                                                                                
 Representative Crawford  thought the money  had to come  from                                                                  
 the general fund.   Representative Kelly  explained that  the                                                                  
 vehicle rental  tax  becomes part  of  the general  fund  and                                                                  
 permits the use  of the funds  in this fashion.   This  shows                                                                  
 the significant  impact of  the vehicle  rental  tax and  the                                                                  
 cruise ship tax.                                                                                                               
                                                                                                                                
 Representative Crawford agreed that more needs to be  done to                                                                  
 enhance marketing.    He wanted  to  clarify that  these  are                                                                  
 general fund dollars.  Representative Kelly added that  there                                                                  
 are other sources of funding as well.                                                                                          
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
 2:01:41 PM                                                                                                                   
                                                                                                                                
 Representative Joule  mentioned  the relationship  with  ATIA                                                                  
 regarding marketing.    He  related a  personal  story  about                                                                  
 tourism in  rural areas.   He  hoped that  tourism for  rural                                                                  
 areas would be marketed more effectively in the future.                                                                        
                                                                                                                                
 There being NO further OBJECTION, it was so ordered.                                                                           
                                                                                                                                
 2:04:54 PM                                                                                                                   
                                                                                                                                
 Representative Gara MOVED to ADOPT Amendment DCCED #4:                                                                         
                                                                                                                                
      OFFERED BY:         Representative Gara                                                                                 
                                                                                                                                
      DEPARTMENT:         Department of Commerce, Community &                                                                 
                          Economic Development.                                                                                 
      APPROPRIATION:      Community Assistance & Economic                                                                     
                          Development                                                                                           
      ALLOCATION:         Community Advocacy                                                                                  
                                                                                                                                
      ADD:                $250.0 GF                                                                                             
                                                                                                                                
      EXPLANATION:   This amendment will  provide funding  for                                                                  
      the Alaska  Legal  Services Corporation  (ALSC).    ALSC                                                                  
      provides  legal  advice   and  representation  to   help                                                                  
      resolve serious legal  problems of low-income Alaskans,                                                                   
      promotes  family,  social  and  economic  stability   by                                                                  
      upholding  the  rule  of  law  and  reduces  the   legal                                                                  
      consequences of  poverty. For more  than 40 years,  ALSC                                                                  
      has responded  to the  civil legal  needs of  low-income                                                                  
      Alaskans   who  would   otherwise   go   without   legal                                                                  
      assistance.  Their efforts  improve the quality of  life                                                                  
      for  our  children,   our  families,  the  elderly   and                                                                  
      disadvantaged, and our community.                                                                                         
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
Representative  Gara  related  that the  amendment  addresses                                                                   
funding for legal representation  for low-income Alaskans who                                                                   
have not  committed a crime.   The item was funded  until two                                                                   
years  ago.  The  debate earlier  this year  centered on  the                                                                   
mechanism to maintain  this funding.  He related  the history                                                                   
of the allocation.                                                                                                              
                                                                                                                                
Co-Chair Meyer MAINTAINED his OBJECTION.                                                                                        
                                                                                                                                
Co-Chair Chenault commented that  the funding source for this                                                                   
item  had been  debated  earlier.   He  did  not support  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Representative  Crawford thought that  if something  is worth                                                                   
being funded  it should  be funded out  of the general  fund.                                                                   
He spoke in support of Amendment DCCED #4.                                                                                      
                                                                                                                                
Representative  Kelly   recalled  that  this   item  was  not                                                                   
addressed in the subcommittee.                                                                                                  
                                                                                                                                
2:09:32 PM                                                                                                                    
                                                                                                                                
Representative  Gara  argued   that  the  amendment  provides                                                                   
funding  on a  level  basis through  the  general  fund.   He                                                                   
recalled favorable discussion earlier this session.                                                                             
                                                                                                                                
Representative   Stoltze  thought  it   was  not   a  funding                                                                   
priority.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Nelson, Crawford, Gara                                                                                         
OPPOSED: Kelly,  Stoltze, Thomas,  Foster, Hawker,  Chenault,                                                                   
Meyer                                                                                                                           
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
2:12:04 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT DCCED #5:                                                                                  
                                                                                                                                
     OFFERED BY:    Representative Nelson                                                                                     
                                                                                                                                
     DEPARTMENT:    Commerce,     Community    &     Economic                                                                 
                    Development                                                                                                 
     APPROPRIATION: State Revenue Sharing                                                                                     
     ALLOCATION:    State Revenue Sharing                                                                                   
                                                                                                                                
     ADD:           $51,500.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:  This appropriation  would continue funding                                                                 
     for  the  Municipal  Revenue Sharing  program  at  $48.1                                                                   
     million   plus    $3.4   million   for    unincorporated                                                                   
      communities in Alaska.  This is based on the Governor's                                                                   
      proposal of  $40,000 minimum  for municipal governments                                                                   
      and  $25,000   for  unincorporated   communities.     An                                                                  
      additional allocation  for municipal governments-cities                                                                   
      and boroughs-would be allocated on a per capita basis.                                                                    
                                                                                                                                
      To many  Alaskan communities  revenue  sharing is  money                                                                  
      for essential services  such as  basics such as  heating                                                                  
      and electricity,  insurance, and city  clerks.   Revenue                                                                  
      sharing has helped fund  community safety needs such  as                                                                  
      snow removal, street  lights, and  fire protection.   In                                                                  
      larger  communities  revenue  sharing  helps  ease   the                                                                  
      burden  off  of local  tax  payers  who  are  often  the                                                                  
      community's largest source of revenue.  Revenue  sharing                                                                  
      is  an  important  component  of  the  State's   overall                                                                  
      economic health.                                                                                                          
                                                                                                                                
      Many Alaskan  communities  have  made a  stable  revenue                                                                  
      sharing program their top legislative priority.                                                                           
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
 Representative  Nelson explained  that  the  amendment  would                                                                  
 continue funding for the  Municipal Revenue Sharing  program.                                                                  
 She pointed out  that while some  municipal assistance  would                                                                  
 be provided to communities regarding the PERS/TRS retirement                                                                   
 fund,  not  all  communities  participate  in  the   PERS/TRS                                                                  
 retirement  system.    She  highlighted  increased  costs  to                                                                  
 municipalities.  She thought municipal revenue sharing  could                                                                  
 be funded out of the capital budget this year.  She  provided                                                                  
 statistics regarding the failure of small communities.                                                                         
                                                                                                                                
 Co-Chair Meyer  agreed that  revenue sharing  was important,                                                                   
 but this  was not the  method to  achieve it.   He  suggested                                                                  
 waiting for the PERS/TRS fix.                                                                                                  
                                                                                                                                
 2:15:30 PM                                                                                                                   
                                                                                                                                
 Representative Joule recalled the  loss of a building due  to                                                                  
 a fire  in  a  small  rural community,  which  could  not  be                                                                  
 replaced due to loss of revenue sharing.  He argued  in favor                                                                  
 of including Amendment DCCED #5 in the operating budget.                                                                       
                                                                                                                                
 Representative  Crawford spoke  of  research  regarding  what                                                                  
 other states do  to provide for rural  communities and  local                                                                  
 governments.   Generally, Alaska  ranks mid-range  as far  as                                                                  
 assistance.  All states provide some sort of assistance.   He                                                                  
 agreed  it  is  right  to  include  revenue  sharing  in  the                                                                  
 operating budget.                                                                                                              
                                                                                                                                
 Representative Gara opined that the term is incorrect;  it is                                                                  
 life-line funding and tax-relief  funding.  He recalled  when                                                                  
 municipal revenue sharing began  to decline in the 90's.   He                                                                  
thought the costs would have to  be made up somewhere else if                                                                   
they are not funded in municipal revenue sharing.                                                                               
                                                                                                                                
2:21:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault brought up the  PERS/TRS crisis as a reason                                                                   
for not  putting funds  into municipal  revenue sharing.   He                                                                   
recalled  the   many  ways  the   state  funds   services  to                                                                   
municipalities.   He  agreed that  many  communities are  not                                                                   
involved  in the  PERS/TRS issues.   He  emphasized that  the                                                                   
state  needs to  cut  back on  deficit  spending.   He  spoke                                                                   
against Amendment DCCED #5 and in favor of a long-term fix.                                                                     
                                                                                                                                
2:26:47 PM                                                                                                                    
                                                                                                                                
Representative  Nelson  explained  the reasoning  behind  the                                                                   
$51,500.0,  which  includes  an   amount  for  unincorporated                                                                   
communities.                                                                                                                    
                                                                                                                                
Co-Chair Meyer MAINTAINED his  OBJECTION.  He thought revenue                                                                   
sharing   could  be  in   other  ways   the  state   supports                                                                   
municipalities.  He  noted that Alaska pays up  to 70 percent                                                                   
of new  school construction, which  many other states  do not                                                                   
do.                                                                                                                             
                                                                                                                                
2:29:16 PM                                                                                                                    
                                                                                                                                
Representative  Thomas  commented that  there  is  a bill  on                                                                   
revenue sharing  coming up.   He recalled what  happened when                                                                   
revenue sharing  was taken away  in his community.   He spoke                                                                   
in favor  of having  a sustained program  rather than  a one-                                                                   
year fix.                                                                                                                       
                                                                                                                                
Representative  Joule summarized  that  everyone agrees  that                                                                   
there  is a need  for helping  communities  and that a  long-                                                                   
range plan is needed.   He spoke in favor of  Amendment DCCED                                                                   
#5.                                                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Nelson, Crawford, Gara                                                                                         
OPPOSED: Kelly,  Stoltze, Thomas,  Foster, Hawker,  Chenault,                                                                   
Meyer                                                                                                                           
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
2:34:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment Courts #1:                                                                           
                                                                                                                                
     OFFERED BY:         Co-Chair Chenault                                                                                      
                                                                                                                                
     DEPARTMENT:         Alaska Court System                                                                                    
     APPROPRIATION:      Alaska Court System                                                                                    
      ALLOCATION:         Appellate Courts    $ 32,500                                                                          
                          Trial Courts        $293,300                                                                          
                          Administration      $ 31,000                                                                        
                          Total               $356,800                                                                          
                                                                                                                                
      ADD:                356.8 GF                                                                                              
                                                                                                                                
      EXPLANATION:  Creates a  "G" Step for front line,  Range                                                                  
      14   and   below,    employees   allowing   long    term                                                                  
      knowledgeable staff  the  opportunity and  incentive  to                                                                  
      remain with  the  Court  System.   This  increment  will                                                                  
      bring  the  court  system  on  an  even  keel  with  the                                                                  
      executive   branch   and    in   compliance   with    AS                                                                  
      22.20.037(c).                                                                                                             
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
 Co-Chair Chenault explained that the amendment creates a "G"                                                                   
 Step for front line, Range 14 and below, employees.                                                                            
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.  There being NO                                                                         
 further OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
 2:36:02 PM                                                                                                                   
                                                                                                                                
 Co-Chair Chenault MOVED to ADOPT Amendment Courts #2:                                                                          
                                                                                                                                
      OFFERED BY:         Co-Chair Chenault                                                                                     
                                                                                                                                
      DEPARTMENT:         Alaska Court System                                                                                   
      APPROPRIATION:      Alaska Court System                                                                                   
      ALLOCATION:         Trial Courts                                                                                          
                                                                                                                                
      ADD:                $100.0 GF                                                                                             
      EXPLANATION:  The  court system  has been excluded  from                                                                  
      the "trigger"  distribution of fuel  to be administered                                                                   
      by the Governor's Office.   This amendment adds  funding                                                                  
      included in the  Governor's budget  that was removed  in                                                                  
      anticipation of the "trigger" distribution.                                                                               
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
 Co-Chair Chenault  related  that the  court system  has  been                                                                  
 excluded  from the  "trigger"  distribution  of  fuel  to  be                                                                  
 administered  by  the  Governor's  Office.    This amendment                                                                   
 expends funds to the court system for fuel.                                                                                    
                                                                                                                                
 Co-Chair Meyer WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
 2:37:30 PM                                                                                                                   
                                                                                                                                
 Representative Nelson MOVED to ADOPT Amendment Courts #3:                                                                      
                                                                                                                                
      OFFERED BY:         Representative Nelson                                                                                 
                                                                                                                                
     DEPARTMENT:         Alaska Court System                                                                                    
     APPROPRIATION:      Alaska Court System                                                                                    
     ALLOCATION:         Trial Courts                                                                                           
                                                                                                                                
     ADD:                $75.0 GF                                                                                               
                                                                                                                                
     EXPLANATION:   The court  system received funding  in FY                                                                   
     07 to pay for ½ year cost  for screening services.  This                                                                   
     appropriation will provide  operating funds for the full                                                                   
     year  court security  screen at  the Bethel  courthouse.                                                                   
     The Bethel  court is one of the busiest  court locations                                                                   
     in the  state and serves  as the hub for  communities in                                                                   
     the Yukon-Kuskokwim Delta.                                                                                                 
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Nelson explained that  this is funding  for a                                                                   
security system for the Bethel  court system, which is one of                                                                   
the busiest  in the state with  a very high number  of felony                                                                   
and domestic violence rates.                                                                                                    
                                                                                                                                
Co-Chair  Chenault noted  that this  issue was  looked at  in                                                                   
subcommittee.  He thought it was not a major issue.                                                                             
                                                                                                                                
Co-Chair Meyer MAINTAINED his OBJECTION.                                                                                        
                                                                                                                                
2:39:09 PM                                                                                                                    
                                                                                                                                
Representative  Joule asked if  this is  the second  year for                                                                   
this request.   Representative Nelson said it  was.  Co-Chair                                                                   
Chenault thought  that last year  $150,000 was  requested and                                                                   
$75,000  was  approved.   Representative  Joule  thought  the                                                                   
requested  amount  is  to finish  paying  for  the  screening                                                                   
services.                                                                                                                       
                                                                                                                                
Representative Nelson said it is to update the system.                                                                          
                                                                                                                                
Representative Gara  commented on a need for  security in the                                                                   
Bethel court system.                                                                                                            
                                                                                                                                
Co-Chair Chenault  argued that  security might be  impossible                                                                   
to assure.   Representative  Gara agreed  that it is  unknown                                                                   
how much is adequate.                                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Nelson, Crawford, Gara                                                                                         
OPPOSED: Kelly,  Stoltze, Thomas,  Foster, Hawker,  Chenault,                                                                   
Meyer                                                                                                                           
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
2:42:39 PM                                                                                                                    
                                                                                                                                
 Co-Chair Meyer MOVED to ADOPT Amendment DEED #1:                                                                               
                                                                                                                                
      OFFERED BY:         Representative Meyer                                                                                  
                                                                                                                                
      DEPARTMENT:         Education and Early Development                                                                       
      APPROPRIATION:      Mt. Edgecumbe Boarding School                                                                         
      ALLOCATION:         Mt. Edgecumbe Boarding School                                                                         
                                                                                                                                
      ADD:           $26,000 GF - Inc. OTI                                                                                      
                                                                                                                                
      EXPLANATION:   The Subcommittee's intent was to  replace                                                                  
      grant  funds   of  $140,000  (funding   for  4   live-in                                                                  
      residential  staff positions)  with  $70,000 to  fund  2                                                                  
      positions.   This  appropriation,  when coupled  with  a                                                                  
      $44,000 remaining  AASB grant, should  be sufficient  to                                                                  
      hire 2 live-in residential staff.                                                                                         
                                                                                                                                
 Representative Stoltze OBJECTED.                                                                                               
                                                                                                                                
 Co-Chair Meyer explained that Mt. Edgecumbe had a soon-to-                                                                     
 expire grant for four staff positions.  The amendment would                                                                    
 allocate $26,000 to be combined with money from a remaining                                                                    
 AASB grant to fund two of those positions.                                                                                     
                                                                                                                                
 Representative Stoltze WITHDREW his OBJECTION.  There being                                                                    
 NO further OBJECTION, it was so ordered.                                                                                       
                                                                                                                                
 2:44:00 PM                                                                                                                   
                                                                                                                                
 Representative Gara MOVED to ADOPT Amendment DEED #2:                                                                          
                                                                                                                                
      OFFERED BY:         Representative Gara                                                                                   
                                                                                                                                
      DEPARTMENT:         Education and Early Development                                                                       
      APPROPRIATION:      Alaska    Postsecondary   Education                                                                   
      Commission                                                                                                                
      ALLOCATION:         Program      Administration      and                                                                  
                         Operations                                                                                             
                                                                                                                                
      ADD:                $3,000,000 GF                                                                                         
                                                                                                                                
      EXPLANATION:   Appropriates money to fund need-based                                                                      
      education grants for Alaskan students attending  Alaskan                                                                  
      institutions.   Alaska has  ranked last  in the  country                                                                  
      for the  percentage  of  low-income  students attending                                                                   
      college for 13  of the past 14  years (8.6%).  It  ranks                                                                  
        th                                                                                                                      
      49  in the  level of financial aid  it provides to  low-                                                                  
      income students.  This  appropriation will help  educate                                                                  
      students who seek higher education but cannot afford  to                                                                  
      do  so, and  will  implement  a  recommendation  by  the                                                                  
      University regents to fix an estimated $4 to $7  million                                                                  
      shortfall in needs-based aid.                                                                                             
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative   Gara   addressed  the   explanation   behind                                                                   
Amendments  DEED #2  and DEED  # 4.   He  explained that  the                                                                   
amendments  appropriate money  to  fund need-based  education                                                                   
grants for  Alaskan students attending Alaskan  institutions.                                                                   
He related statistics to support  his request.  He recalled a                                                                   
study  which  graded Alaska  with  an  "F"  in the  areas  of                                                                   
financing low income students.                                                                                                  
                                                                                                                                
2:48:00 PM                                                                                                                    
                                                                                                                                
PAT PITNEY, VICE PRESIDENT, BUDGET  & PLANNING, UNIVERSITY OF                                                                   
ALASKA, spoke  to the need  for financial aid  for low-income                                                                   
students.  She  noted that the aid should be  provided at the                                                                   
state  level.  If  the state  funded needs-based  aid at  the                                                                   
national  average, it  would be  just over  $6 million.   She                                                                   
reported  that many Alaskan  low-income  families do  not see                                                                   
higher education as an option.   She termed this funding as a                                                                   
"state investment"  against the  use of social  service funds                                                                   
in  the future.   She  reported that  low-income families  do                                                                   
save for college education.                                                                                                     
                                                                                                                                
2:51:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault questioned  the  income level  eligibility                                                                   
for student aid regarding other  financial aid packages.  Ms.                                                                   
Pitney noted  that the $50,000  family income figure  is when                                                                   
it  becomes  hard  to afford  college  costs.    She  related                                                                   
information about  the PELL Grant, which pays  for 40 percent                                                                   
of the cost of higher education.                                                                                                
                                                                                                                                
Co-Chair  Meyer asked  how the Alaska  system's tuition  rate                                                                   
compares to other states.  Ms.  Pitney replied that for four-                                                                   
year  tuition, Alaska  ranks in  the lower  third.   Co-Chair                                                                   
Meyer asked who  qualifies for the UA Scholars  program.  Ms.                                                                   
Pitney  replied  that  the  top  ten  percent  of  graduating                                                                   
students  qualify for  the program; however,  UA Scholars  no                                                                   
longer  pays for  full  tuition.   Co-Chair  Meyer  suggested                                                                   
taking  the top five  percent  for UA Scholars  and the  next                                                                   
five  percent for  financial aid  assistance  for low  income                                                                   
students.  Ms. Pitney addressed  the university's role in the                                                                   
needs-based  approach,   including  the  Tuition   Assistance                                                                   
Grant.                                                                                                                          
                                                                                                                                
2:55:48 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  wondered if  this  amendment item  was                                                                   
included in  the regents'  request.  Ms.  Pitney said  it was                                                                   
not.                                                                                                                            
                                                                                                                                
Representative Gara clarified  that this amendment request is                                                                   
at the recommendation  of the regents.  He  spoke of Alaska's                                                                   
ranking  in affordability  and the  lack of  aid provided  to                                                                   
 needs-based students.   He explained  the difference  between                                                                  
 the  Alaska  Advantage  program  and  university  grants  for                                                                  
 higher and lower income ranges.                                                                                                
                                                                                                                                
 Representative Kelly related other financial aid options  for                                                                  
 students.                                                                                                                      
                                                                                                                                
 2:58:39 PM                                                                                                                   
                                                                                                                                
 Representative Hawker  observed that  university funding  has                                                                  
 been increased  to $335  million in  general  funds over  the                                                                  
 past two years.                                                                                                                
                                                                                                                                
 Co-Chair Meyer  MAINTAINED  his OBJECTION.   He  pointed  out                                                                  
 that Alaska's  tuition is  in the lower  third, scholarships                                                                   
 are offered to  students, Native  Corporations offer  student                                                                  
 grants, and students receive PFD's.                                                                                            
                                                                                                                                
 Representative  Gara  emphasized  that  it  is  difficult  to                                                                  
 attend college in Alaska without financial aid.                                                                                
                                                                                                                                
 A roll call vote was taken on the motion.                                                                                      
                                                                                                                                
 IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                        
 OPPOSED:  Stoltze,  Thomas,  Foster,  Hawker,  Kelly,  Meyer,                                                                  
           Chenault                                                                                                             
                                                                                                                                
 The MOTION FAILED (4-7).                                                                                                       
                                                                                                                                
 3:02:08 PM                                                                                                                   
                                                                                                                                
 Representative Gara MOVED to ADOPT DEED Amendment #3:                                                                          
                                                                                                                                
      OFFERED BY:         Representative Gara                                                                                 
                                                                                                                                
      DEPARTMENT:         Education and Early Development                                                                     
      APPROPRIATION:      Teaching and Learning Support                                                                       
      ALLOCATION:         Head Start Grants                                                                                   
                                                                                                                                
      ADD:                $630,000 GF                                                                                         
                                                                                                                                
      EXPLANATION:   This  amendment will  provide additional                                                                 
      general funds  to  the grants  line  of the  Head  Start                                                                  
      program.   State Head  Start funding  has remained  flat                                                                  
      for many  years, and  the current  budget proposes  flat                                                                  
      state funding again. In  real terms, that constitutes  a                                                                  
      funding reduction.  National studies show that  children                                                                  
      who participate  in quality preschools  are more  likely                                                                  
      to graduate from  high school than  other children,  are                                                                  
      less  likely to  need  expensive  special  education  or                                                                  
      remedial  services,  and  are  more  likely  to   attend                                                                  
      college and be employed later in life.                                                                                    
                                                                                                                                
     Alaska  has no  statewide early  education program,  and                                                                   
     Head Start  has been struggling  to meet  growing demand                                                                   
     with flat  or decreased funding.   Since 2003,  the Head                                                                   
     Start program  has been forced to eliminate  services to                                                                   
     361 children,  close services  in 6 communities,  reduce                                                                   
     classroom  hours,  change  program options,  scale  back                                                                   
     transportation services, freeze staff wages, defer on-                                                                     
     going maintenance  and repairs  to facilities,  and rely                                                                   
     more heavily  on in kind donations from  the communities                                                                   
     for  the  provision of  some  essential  services.   The                                                                   
     proposed   increment  would   help   keep  this   proven                                                                   
     successful  program  in  place until  a  statewide  pre-                                                                   
     school program can be implemented.                                                                                         
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara  spoke  in  support  and  explained  the                                                                   
amendment would add $630,000 for  Head Start.  He pointed out                                                                   
how federal funding has been reduced for Head Start.                                                                            
                                                                                                                                
Co-Chair  Meyer  acknowledged the  good  of  the program  and                                                                   
stressed  that the amendment  would be  exceeding the  amount                                                                   
needed for a federal match.  He  related other early learning                                                                   
programs and  maintained that the  funds were not  needed for                                                                   
them.                                                                                                                           
                                                                                                                                
Representative  Crawford observed  the  degree of  importance                                                                   
the program has for his constituents.   He maintained that it                                                                   
is "one of those right things to do."                                                                                           
                                                                                                                                
Representative Nelson noted that  the program is flat funded.                                                                   
She pointed  to the  price of  inflation and maintained  that                                                                   
there is  an 11 - 13 percent  cut with expenses  factored in.                                                                   
Six  programs  have  been  closed,  affecting  361  students.                                                                   
Children that are not read to,  come to school disadvantaged.                                                                   
Early education counters the lack of parental involvement.                                                                      
                                                                                                                                
Representative Gara  noted that there would  be no additional                                                                   
classrooms.   The  intent is  to open  opportunities.   Fewer                                                                   
kids will  have early learning  opportunities if there  is no                                                                   
action.                                                                                                                         
                                                                                                                                
3:12:11 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED:  Stoltze,  Thomas,  Foster,  Hawker,  Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment DEED 4:                                                                            
                                                                                                                                
      OFFERED BY:     Representative Gara                                                                                     
                                                                                                                                
      DEPARTMENT:     Language Section                                                                                        
      APPROPRIATION:  Fund Capitalization                                                                                     
      ALLOCATION:     Education Loan Fund                                                                                     
                                                                                                                                
      ADD:           "The sum of $20,000,000 is                                                                               
                      appropriated from Alaska Student Loan                                                                     
                      Corporation   receipts to the                                                                             
                      education loan fund (AS 14.42.210)."                                                                    
                                                                                                                                
      FUNDING SOURCE: Alaska     Student   Loan   Corporation                                                                   
                       receipts                                                                                                 
                                                                                                                                
      EXPLANATION:  Appropriates money to fund need-based                                                                     
      education   grants  for   students   attending   Alaskan                                                                  
      institutions,  reinserting  what  was  in  the  language                                                                  
      section  of  the  Governor's   original  budget.     The                                                                  
      transfer of  $20 million  from the  Alaska Student  Loan                                                                  
      Corporation  to the  Education  Loan Fund  will  provide                                                                  
      approximately $1 million/year  in income to be used  for                                                                  
      needs-based  financial aid  grants.   Because  it  would                                                                  
      restrict use of corporate  assets to a non-loan  purpose                                                                  
      the ASLC  regards  this  appropriation  as a  return  of                                                                  
      capital to  the State.   ASLC  intends to  complete  the                                                                  
      return of capital in FY 09 with $40 million transfer  of                                                                  
      bond proceeds.   The  principal will  not  be spent  and                                                                  
      could be  returned to  the state  for appropriation  for                                                                  
      other purposes in the future.                                                                                             
                                                                                                                                
 Co-Chair Meyer OBJECTED.                                                                                                       
                                                                                                                                
 Representative Gara observed that the amount requested was                                                                     
 in the governor's budget and would be a fund transfer, not a                                                                   
 fund expenditure.                                                                                                              
                                                                                                                                
 Ms. Kelly explained  that the concern  was the transfer  from                                                                  
 the Alaska Student Loan  Corporation receipts.  The  transfer                                                                  
 was removed in order to allow  the fund to be set up for  its                                                                  
 own purpose.                                                                                                                   
                                                                                                                                
 Representative Gara WITHDREW Amendment DEED #4.                                                                                
                                                                                                                                
 3:15:43 PM                                                                                                                   
                                                                                                                                
 Representative Nelson MOVED to ADOPT Amendment DEED #5:                                                                        
                                                                                                                                
      OFFERED BY:         Representative Nelson                                                                                 
                                                                                                                                
      DEPARTMENT:         Education and Early Development                                                                       
      APPROPRIATION:      See attached language section.                                                                        
                                                                                                                                
      ADD:                $250.0 GF                                                                                             
                                                                                                                                
     EXPLANATION:   This amendment  will provide  funding for                                                                   
     charter  schools around  the state  that have less  than                                                                   
     150  students.    These  charter  schools  receive  less                                                                   
     funding per  student because they are funded  as if they                                                                   
     are part of  the largest school in their  district.  The                                                                   
     marginal  funding received  for each additional  student                                                                   
     at a large  school is insufficient to operate  a charter                                                                   
     school.  For  the past three years, the  legislature has                                                                   
     appropriated  $106,000 - $250,000  to the small  charter                                                                   
     schools   to   partially   compensate  for   this   huge                                                                   
     discrepancy.                                                                                                               
                                                                                                                                
     Page 60, following line 8:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(d) The sum of $250,000 is appropriated from the                                                                     
     general fund  to the Department  of Education  and Early                                                                   
     Development  for  the fiscal  year  ending  in June  30,                                                                   
     2008,  for payment  as grants  to  each school  district                                                                   
     that  operates a  charter school  with an average  daily                                                                   
     membership  of  less  than  150  for  support  of  those                                                                   
     charter  schools   in  those  districts.     The  amount                                                                   
     appropriated  for grants  by  this subsection  is to  be                                                                   
     allocated  among   eligible  school  districts   in  the                                                                   
     proportion  that  the average  daily  membership of  the                                                                   
     eligible  charter schools  in  a district  bears to  the                                                                   
     total average  daily membership of all  eligible charter                                                                   
     schools  in   all  school  districts  that   operate  an                                                                   
     eligible charter school."                                                                                                  
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Nelson  observed  that  the  amendment  would                                                                   
affect charter schools [and others]  with under 150 students.                                                                   
Schools  with less  than 150  students receive  funding at  a                                                                   
reduced  rate  as  part  of  the   largest  school  in  their                                                                   
district.  She spoke in support of the amendment.                                                                               
                                                                                                                                
Co-Chair  Chenault  acknowledged   the  advantage  of  having                                                                   
smaller class size.                                                                                                             
                                                                                                                                
Representative  Nelson observed  that Juneau, Bethel,  Homer,                                                                   
Fairbanks, and Nome have charter schools.                                                                                       
                                                                                                                                
3:19:24 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  explained why the number 150  was determined.                                                                   
He  argued  against  continued  subsidizing  of  the  charter                                                                   
schools.                                                                                                                        
                                                                                                                                
Representative Gara spoke in support of the funding.                                                                            
                                                                                                                                
Co-Chair Chenault argued against it.                                                                                            
                                                                                                                                
 3:23:16 PM                                                                                                                   
                                                                                                                                
 Representative Nelson  noted that this  item has been  funded                                                                  
 for the past  three years.   She offered  to amend Amendment                                                                   
 DEED #5.                                                                                                                       
                                                                                                                                
 Co-Chair  Meyer  argued   against  continued  funding.     He                                                                  
 MAINTAINED his OBJECTION.                                                                                                      
                                                                                                                                
 Representative Stoltze spoke  highly of charter schools,  but                                                                  
 agreed that this is  a temporary fix.   He preferred to  look                                                                  
 at this issue through statute.                                                                                                 
                                                                                                                                
 Representative Nelson noted  that she would continue to  work                                                                  
 on this issue.                                                                                                                 
                                                                                                                                
 A roll call vote was taken on the motion.                                                                                      
                                                                                                                                
 IN FAVOR: Joule, Nelson, Crawford, Gara                                                                                        
 OPPOSED: Kelly,  Stoltze, Thomas,  Foster, Hawker, Chenault,                                                                   
 Meyer                                                                                                                          
                                                                                                                                
 The MOTION FAILED (4-7).                                                                                                       
                                                                                                                                
 3:27:22 PM                                                                                                                   
                                                                                                                                
 Representative Foster MOVED to ADOPT Amendment DMVA #1:                                                                        
                                                                                                                                
      OFFERED BY:         Representative Foster                                                                                 
                                                                                                                                
      DEPARTMENT:         Military and Veterans Affairs                                                                         
      APPROPRIATIONS:     Military and Veterans Affairs                                                                         
      ALLOCATION:         Veterans Services                                                                                     
                                                                                                                                
      ADD:                $50.0 GF                                                                                              
                                                                                                                                
      ADD WORDAGE:        "It   is    the   intent   of    the                                                                  
      legislature that, whenever  possible, the Department  of                                                                  
      Military and Veterans  Affairs use existing services  to                                                                  
      provide  formal recognition  and  discharge  for  Alaska                                                                  
      Territorial Guard members  in the most expedient  manner                                                                  
      possible."                                                                                                                
                                                                                                                                
      APPROPRIATION:      Alaska National Guard Benefits                                                                        
      ALLOCATION:         Educational Benefits                                                                                  
                                                                                                                                
      ADD:                $30.0 GF                                                                                              
                                                                                                                                
      ADD WORDAGE:  "It is the intent of the legislature  that                                                                  
      the   Alaska   National   Guard's   education    tuition                                                                  
      assistance program  be  funded at  a level  adequate  to                                                                  
      provide the  benefit to  all qualified  applicants.   If                                                                  
      the appropriation under this section is insufficient  to                                                                  
      provide the  benefit to  all qualified  applicants,  the                                                                  
     Department of Military and Veterans' Affairs shall make                                                                    
    a request for supplemental to cover the shortfall."                                                                         
                                                                                                                                
     Adjust the funding sources accordingly.                                                                                    
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
PAUL LABOLLE,  STAFF, REPRESENTATIVE  FOSTER, explained  that                                                                   
the first part of the amendment  allows members of the Alaska                                                                   
Territorial   Guard  to   receive   formal  recognition   and                                                                   
discharge.                                                                                                                      
                                                                                                                                
Representative  Stoltze  asked   about  benefits  for  Alaska                                                                   
National Guard  members.  Mr.  Labolle said this is  the same                                                                   
issue.                                                                                                                          
                                                                                                                                
Representative Gara spoke in support of the amendment.                                                                          
                                                                                                                                
3:29:59 PM                                                                                                                    
                                                                                                                                
Mr. Labolle explained the second  part of DMVA #2.  There was                                                                   
an under  funding of educational  benefits and  the amendment                                                                   
helps to correct that.                                                                                                          
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                

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