Legislature(2009 - 2010)HOUSE FINANCE 519

03/09/2009 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 81 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 83 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Operating budget amendments
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HOUSE BILL NO. 81                                                                                                   
                                                                                                                                
               "An  Act  making appropriations  for  the operating  and                                                         
               loan program  expenses of state  government, for certain                                                         
               programs,  and to capitalize funds;  making supplemental                                                         
               appropriations;  and  making  appropriations under  art.                                                         
               IX,  sec. 17(c),  Constitution of  the State  of Alaska;                                                         
               and providing for an effective date."                                                                            
                                                                                                                                
          HOUSE BILL NO. 83                                                                                                   
                                                                                                                                
               "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."                                                                                              
                                                                                                                                
          Representative   Foster  introduced   former   Department  of                                                         
          Transportation   and  Public  Facilities   Commissioner,  Joe                                                         
          Ferguson.                                                                                                             
                                                                                                                                
          1:52:32 PM                                                                                                          
                                                                                                                                
          Co-Chair Hawker  related that the amendments  to HB 81 and HB                                                         
          83 are filling in pieces  of the bills "left to this moment".                                                         
          He  explained  that  Section  16 of  the  governor's  budget,                                                         
          related to gasline work,  had been deferred, but now would be                                                         
          taken up.   Co-Chair Hawker reported that  he has requested a                                                         
          summary  of oil and  gas development appropriations  from the                                                         
          Office  of Budget and  Management (OMB)  and FY 2010  oil and                                                         
          gas-related   budget  items  from  the   Legislative  Finance                                                         
          Division.                                                                                                             
                                                                                                                                
          Co-Chair  Hawker  explained  the  procedure  to  be  used  to                                                         
          address amendments.                                                                                                   
                                                                                                                                
          1:55:30 PM                                                                                                          
                                                                                                                                
          Co-Chair Hawker MOVED to ADOPT Amendment 1:                                                                           
                                                                                                                                
               Part A-Technical Correction (duplicated transaction)                                                             
                                                                                                                                
      DEPARTMENT:          Health and Social Services                                                                           
               APPROPRIATION:       Behavioral Health                                                                           
       ALLOCATION:          Behavioral Health Grants                                                                            
                                                                                                                                
     DELETE:   $75,000   Mental    Health   Trust   Authority                                                                   
     Authorized Receipts (1092)                                                                                                 
     DELETE:   $75,000 General Fund/Mental Health (1037)                                                                        
                                                                                                                                
     EXPLANATION:   This amendment removes subcommittee                                                                         
     transactions that duplicated Governor's transactions.                                                                      
     Governor's transactions accomplishing the same purpose                                                                     
     will be retained.                                                                                                          
                                                                                                                                
     Part B-Technical Correction (duplicated transaction)                                                                       
                                                                                                                                
     DEPARTMENT:         Natural Resources                                                                                      
     APPROPRIATION:      Resource Development                                                                                   
     ALLOCATION:         Claims, Permits & Leases                                                                               
                                                                                                                                
     DELETE:   One Permanent Full-Time Position (PFT)                                                                           
                                                                                                                                
     Line Item Transfer:                                                                                                        
     ADD: $42,100        Contractual                                                                                            
                                                                                                                                
     DELETE:   $37,600         Personal Services                                                                                
               $3,300               Travel                                                                                      
               $1,200               Commodities                                                                                 
                                                                                                                                
     EXPLANATION:  This amendment reverses one of two                                                                           
     similar transactions that duplicated the House Finance                                                                     
     Budget Subcommittee's intent.                                                                                              
                                                                                                                                
     Part C-Correction (omitted transaction)                                                                                    
                                                                                                                                
     DEPARTMENT:         Fish and Game                                                                                          
     APPROPRIATION:      Wildlife Conservation                                                                                  
     ALLOCATION:         Wildlife Conservation                                                                                  
                                                                                                                                
     ADD: $150,000 Federal Receipts (1002)                                                                                      
                                                                                                                                
     DELETE:   $150,000 Fish and Game Fund (1024)                                                                               
                                                                                                                                
     EXPLANATION:  This amendment adds a fund source change                                                                     
     transaction that was inadvertently omitted from the                                                                        
     committee substitute bill.                                                                                                 
                                                                                                                                
     Part D-Correction (unnecessary wordage)                                                                                    
                                                                                                                                
     DEPARTMENT:         Commerce, Community and Economic                                                                       
     Development                                                                                                                
     APPROPRIATION:      Alaska     Aerospace     Development                                                                   
     Corporation                                                                                                                
     ALLOCATION:         Alaska     Aerospace     Development                                                                   
     Corporation                                                                                                                
                                                                                                                                
     DELETE:        Intent Wordage sec.1, page 6, line 23.                                                                      
                                                                                                                                
               It is the intent of the legislature that the Alaska                                                              
               Aerospace Development Corporation fully pay its                                                                  
               portion of the DOA and DCCED cost allocation plans.                                                              
                                                                                                                                
               EXPLANATION:  This amendment removes FY09 intent                                                                 
               language that is no longer necessary. AADC complied                                                              
               with the intent in FY09 and intends to do so in the                                                              
               future.                                                                                                          
                                                                                                                                
               Part E-Correction (position adjustment)                                                                          
                                                                                                                                
               DEPARTMENT:          Natural Resources                                                                           
               APPROPRIATION:       Resource Development                                                                        
               ALLOCATION:          Petroleum Systems Integrity Office                                                          
                                                                                                                                
       ADD: Four Permanent Full-Time Positions (PFT)                                                                            
                                                                                                                                
               EXPLANATION:  This amendment restores four PFT                                                                   
               positions that were inadvertently deleted during                                                                 
               subcommittee close out.                                                                                          
                                                                                                                                
               Part F-Correction (overlooked Governor's language)                                                               
                                                                                                                              
               Amend language section 10 (Department of      Commerce,                                                          
               Community, and Economic Development) by adding two new                                                           
               subsections:                                                                                                     
                                                                                                                                
               f) If the amount necessary to make national forest                                                               
                  receipts payments exceeds the amount appropriated in                                                          
                  sec. 1 of this Act, the amount necessary is                                                                   
                  appropriated from federal receipts to the Department                                                          
                  of Commerce, Community, and Economic Development,                                                             
                  national forest receipts, for the fiscal year ending                                                          
                  June 30, 2010.                                                                                                
                                                                                                                                
               g) If the amount necessary to make payment in lieu of                                                            
                  taxes (PILT) payments exceeds the amount                                                                      
                  appropriated in sec. 1 of this Act, the amount                                                                
                  necessary is appropriated from federal receipts to                                                            
                  the Department of Commerce, Community and Economic                                                            
                  Development, payment in lieu of taxes (PILT), for                                                             
                  the fiscal year ending June 30, 2010.                                                                         
                                                                                                                                
               Explanation:  The new sections  allow the  department to                                                       
               pass   federal  receipts  to  eligible   recipients  and                                                         
               communities   without  going  through   the  Legislative                                                         
               Budget and Audit review process.                                                                                 
                                                                                                                                
               These two subsections were requested by the Governor                                                             
               but were omitted from the Committee Substitute for                                                               
               House Bill 81 (FIN).                                                                                             
                                                                                                                                
               Part G-Correction (overlooked Governor's language)                                                               
                                                                                                                                
     Amend language section 11 (Department of Labor and                                                                         
     Workforce Development) by adding a new subsection:                                                                         
     (d)   If the amount of designated program receipts                                                                         
        received under AS 43.20.014(a)(3) and deposited in                                                                      
        the vocational education account (AS 37.10.200)                                                                         
        during the fiscal year ending June 30, 2010 exceeds                                                                     
        the amount appropriated in sec. 1 of this Act for                                                                       
        purposes described in AS 37.10.200, the additional                                                                      
        designated program receipts are appropriated to the                                                                     
        Department of Labor and Workforce Development,                                                                          
        Alaska Vocational Technical Center, for the fiscal                                                                      
        year ending June 30, 2010.                                                                                              
                                                                                                                              
     Explanation:  The   language  section  (d)   allows  the                                                                 
     department  to spend  any  Statutory Designated  Program                                                                   
     Receipts  (SDPR) they receive  for vocational  education                                                                   
     purposes in FY2010.                                                                                                        
                                                                                                                                
     Part H-Correction (drafting errors)                                                                                        
                                                                                                                                
     Amend section 25:                                                                                                          
                                                                                                                                
     (c)   The sum of $30,248,000 [30,455,300] is                                                                             
        appropriated to the state bond committee from the                                                                       
        Alaska debt retirement fund (AS 37.15.011) for                                                                          
        payment of debt service, accrued interest, and                                                                          
        trustee fees on outstanding State of Alaska general                                                                     
        obligation bonds, series 2003A, for the fiscal year                                                                     
        ending June 30, 2010.                                                                                                   
                                                                                                                                
     (e)   The sum of $10,275,000 [10,067,700] is                                                                             
        appropriated to the state bond committee from the                                                                       
        Alaska debt retirement fund (AS 37.15.011) for                                                                          
        payment of debt service, accrued interest, and                                                                          
        trustee fees on outstanding State of Alaska general                                                                     
        obligation bonds, series 2009A, for the fiscal year                                                                     
        ending June 30, 2010.                                                                                                 
                                                                                                                              
     (n) The sum of $22,917,325 [22,917,300] is appropriated                                                                  
        from the general fund to the Department of                                                                              
        Administration for the fiscal year ending June 30,                                                                      
        2010, for payment of obligations and fees for the                                                                       
        following facilities:                                                                                                   
                                                                                                                                
        FACILITY                              ALLOCATION                                                                        
        (1) Anchorage Jail                         $5,103,900                                                                   
        (2) Goose Creek Correctional Center                                                                                     
           17,813,425  [17,813,400]                                                                                           
                                                                                                                                
     Explanation: This amendment will correct the amounts                                                                     
     necessary for state debt and other obligations in sec.                                                                     
     25 (c), 25(e), 25(n) of the House CS for CSHB 81(FIN).                                                                     
                                                                                                                                
               Amend section 20(q)                                                                                            
                                                                                                                                
               The sum of $459,200 is appropriated from the permanent                                                           
               fund dividend (PFD) in lieu of dividends to criminals                                                            
               account within the dividend fund (AS 43.23.045(a))                                                               
               [general fund] to the crime victim compensation fund                                                             
               (AS 18.67.162).                                                                                                  
                                                                                                                                
               Explanation: Restores language requested by the                                                                
               Governor.                                                                                                        
                                                                                                                                
          Co-Chair Stoltze OBJECTED.                                                                                            
                                                                                                                                
          Co-Chair  Hawker  described   the  Amendment  as  Legislative                                                         
          Finance's technical amendment.                                                                                        
                                                                                                                                
          DAVID   TEAL,   DIRECTOR,   LEGISLATIVE   FINANCE   DIVISION,                                                         
          explained  that Amendment  1, Parts  A and  B,  are technical                                                         
          corrections  of duplications.   Part C is a  transaction that                                                         
          was left  out and is  now being restored.   Part D  is intent                                                         
          language   that  applies  to  Alaska   Aerospace  Development                                                         
          Corporation compliance,  which has been corrected.  Part E is                                                         
          a  position   adjustment  from  the  Department   of  Natural                                                         
          Resources  (DNR).    Part  F  is language  submitted  by  the                                                         
          governor  regarding   federal  receipts  that  should  bypass                                                         
          Legislative  Budget and Audit  (LB&A), which was  left out of                                                         
          the draft.   Co-Chair Hawker  added that his  office had also                                                         
          overlooked that language.                                                                                             
                                                                                                                                
          1:58:35 PM                                                                                                          
                                                                                                                                
          Mr.  Teal   continued  to  explain  that   Part  G  similarly                                                         
          addresses an  amendment by the governor to  the Department of                                                         
          Labor  (DOL) for designated  receipt authority for  the newly                                                         
          created  Vocational Education  account.   Part H  consists of                                                         
          drafting errors.   Sections (c) and (e)  correct a bond issue                                                         
          error.   Section (n) corrects  an error in debt  service, and                                                         
          Section  (q)  restores  the  language  for the  Crime  Victim                                                         
          Compensation   Fund.    Co-Chair  Hawker   commented  on  the                                                         
          misunderstanding.                                                                                                     
                                                                                                                                
          Co-Chair  Stoltze  WITHDREW  his  OBJECTION to  Amendment  1.                                                         
     There being NO OBJECTION, Amendment 1 was adopted.                                                                         
                                                                                                                                
          2:00:43 PM                                                                                                          
                                                                                                                                
          Vice-Chair Thomas MOVED to ADOPT Amendment 2:                                                                         
                                                                                                                                
       OFFERED BY:  Representatives Thomas and Hawker                                                                           
                                                                                                                                
               Part A-Fund Source Change                                                                                        
                                                                                                                                
     DEPARTMENT:         Administration                                                                                         
                                                                                                                                
     APPROPRIATION:      Centralized Administrative Services                                                                    
     ALLOCATION:         Personnel                                                                                              
                                                                                                                                
     FUND CHANGE:   $472,200 General Fund (1004)                                                                                
          ($472,200) Interagency Receipts Fund (1007)                                                                           
                                                                                                                                
     APPROPRIATION:      Enterprise Technology Services                                                                         
     ALLOCATION:         Enterprise Technology Services                                                                         
                                                                                                                                
                                                                                                                                
     FUND CHANGE:   $415,900 General Fund (1004)                                                                                
          ($415,900) Interagency Receipts Fund (1007)                                                                           
                                                                                                                                
     EXPLANATION:   Part A of this amendment  pays bargaining                                                                   
     unit  agreement  costs with  GF  in  order to  avoid  an                                                                   
     increase  in chargeback  rates  paid  by agencies.  This                                                                   
     action  was requested  by  the Governor,  but denied  by                                                                   
     subcommittee  pending receipt of information  pertaining                                                                   
     to  recovery  of  non-general  funds.  The  fund  source                                                                   
     information requested  by the subcommittee is  part B of                                                                   
     this amendment.                                                                                                            
                                                                                                                                
     Part B-Cost Recovery of Non-general Funds                                                                                  
                                                                                                                                
     APPROPRIATION:      Centralized Administrative Services                                                                    
     ALLOCATION:         Personnel                                                                                              
                                                                                                                                
     ADD: $37,200        Federal Receipts (1002)                                                                                
          $6,300    Interagency Receipts (1007)                                                                                 
       $1,100    Commercial Fishing Loan Fund (1036)                                                                            
          $100      Fisheries Enhancement Revolving Loan                                                                        
     Fund (1070)                                                                                                                
          $1,200    Alaska Industrial Development & Export                                                                      
     Authority Receipts (1102)                                                                                                  
          $1,900    Regulatory Commission of Alaska Receipts                                                                    
     (1141)                                                                                                                     
          $7,600    Receipt Supported Services (1156)                                                                           
          $800      Business License & Corporation Filing                                                                       
     Fees and Taxes (1175)                                                                                                      
       $2,800    Permanent Fund Dividend Fund (1050)                                                                            
          $400      Permanent Fund Corporation Receipts                                                                         
     (1105)                                                                                                                     
          $100      Statutory Designated Program Receipts                                                                       
     (1108)                                                                                                                     
          $2,500    Workers     Safety    and    Compensation                                                                   
     Administration Account (1157)                                                                                              
          $100      Second Injury Fund Reserve Account                                                                          
     (1031)                                                                                                                     
          $100      Fishermen's Fund (1032)                                                                                     
          $600      Building Safety Account (1172)                                                                              
          $1,000    Group Health and Life Benefits Fund                                                                         
     (1017)                                                                                                                     
                    $1,200     Public Employees Retirement Trust Fund                                                           
               (1029)                                                                                                           
                    $500       Teachers Retirement Trust Fund (1034)                                                            
                    $900       Alaska Oil & Gas Conservation Commission                                                         
               Receipts (1162)                                                                                                  
                                                                                                                                
               DELETE:   $66,400         General Fund (1004)                                                                    
                                                                                                                                
                                                                                                                                
               APPROPRIATION:       Enterprise Technology Services                                                              
               ALLOCATION:          Enterprise Technology Services                                                              
                                                                                                                                
               ADD: $58,500         Federal Receipts (1002)                                                                     
                    $4,200          Interagency Receipts (1007)                                                                 
                    $700            Commercial Fishing Loan Fund (1036)                                                         
                    $100       Fisheries Enhancement Revolving Loan                                                             
               Fund (1070)                                                                                                      
                    $800       Alaska Industrial Development & Export                                                           
               Authority Receipts (1102)                                                                                        
                    $1,200          Regulatory Commission of Alaska                                                             
               Receipts (1141)                                                                                                  
                    $14,600         Receipt Supported Services (1156)                                                           
                    $500       Business License & Corporation Filing                                                            
               Fees and Taxes (1175)                                                                                            
                    $8,400     Permanent Fund Dividend Fund (1050)                                                              
                    $200       Permanent Fund Corporation Receipts                                                              
               (1105)                                                                                                           
                    $100       Statutory Designated Program Receipts                                                            
               (1108)                                                                                                           
                    $1,500     Workers    Safety    and    Compensation                                                         
               Administration Account (1157)                                                                                    
                    $400       Building Safety Account (1172)                                                                   
                    $1,800     Group Health and Life Benefits Fund                                                              
               (1017)                                                                                                           
                    $2,200     Public Employees Retirement Trust Fund                                                           
               (1029)                                                                                                           
                    $900       Teachers Retirement Trust Fund (1034)                                                            
                    $1,100     Alaska Oil & Gas Conservation Commission                                                         
               Receipts (1162)                                                                                                  
                                                                                                                                
               DELETE:   $97,200         General Fund (1004)                                                                    
                                                                                                                                
               EXPLANATION:   The Department of  Administration charges                                                         
               other  agencies for personnel and  enterprise technology                                                         
               services.  In order to  minimize FY2010  rate increases,                                                         
               the Governor  requested an addition of  general funds to                                                         
               DOA.  This action  causes the general  fund to  bear the                                                         
               full burden of  cost increases. Part B of this amendment                                                         
               replaces  general funds with  a variety of  other funds.                                                         
               These  non-general   funds  (along  with  the  remaining                                                         
               general  funds in increments  for this purpose)  will be                                                         
               distributed  to  agencies  and  recovered  through  rate                                                         
               increases.  The  impact is  to shift  $163,600  of costs                                                         
               from general funds to other funds.                                                                               
                                                                                                                                
                                                                                                                                
     Part C-Add Wordage                                                                                                         
                                                                                                                                
     APPROPRIATION:      Centralized Administrative Services                                                                    
     ALLOCATION:         Personnel                                                                                              
                                                                                                                                
     ADD: The  money appropriated  by this appropriation  may                                                                   
     be  distributed  to state  departments  and agencies  in                                                                   
     order to pay service costs  charged by the Department of                                                                   
     Administration for centralized personnel services.                                                                         
                                                                                                                                
     APPROPRIATION:      Enterprise Technology Services                                                                         
     ALLOCATION:         Enterprise Technology Services                                                                         
                                                                                                                                
     ADD: The  money appropriated  by this appropriation  may                                                                   
     be  distributed  to state  departments  and agencies  in                                                                   
     order to pay service costs  charged by the Department of                                                                   
     Administration for enterprise technology services.                                                                         
                                                                                                                                
     EXPLANATION:   Part  C  allows funding  appropriated  in                                                                   
     parts A and  B to be distributed to various  agencies to                                                                   
     offset chargeback rate increases.                                                                                          
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Vice-Chair Thomas explained that  his subcommittee originally                                                                   
requested to  delete $472,200  in General Funds;  however, at                                                                   
the  Department  of Administration's  request  and  with  the                                                                   
shifting  of  funds,  the  amendment   reflects  the  revised                                                                   
amount.                                                                                                                         
                                                                                                                                
Co-Chair Hawker WITHDREW his OBJECTION.  There being NO                                                                         
OBJECTION, Amendment 2 was adopted.                                                                                             
                                                                                                                                
2:02:20 PM                                                                                                                    
                                                                                                                                
Representative Austerman MOVED to ADOPT Amendment 3:                                                                            
                                                                                                                                
     OFFERED BY: Representatives Austerman and Hawker                                                                           
                                                                                                                                
     DEPARTMENT:         Commerce, Community and Economic                                                                       
     Development                                                                                                                
     APPROPRIATION:      Community Assistance & Economic                                                                        
     Development                                                                                                                
     ALLOCATION:         Community and Regional Affairs                                                                         
                                                                                                                                
     ADD: $1,571,300 General Fund (1004)                                                                                        
                                                                                                                                
     EXPLANATION:   Governor's 2008 legislation  cut business                                                                   
     license fees  in half, reducing  state revenue  by about                                                                   
     $3.2 million  and leaving insufficient  business license                                                                   
     revenue   to  pay  for   program  costs.  The   Governor                                                                   
     requested  replacement  of   $1,971.3  business  license                                                                   
               receipts with GF  in Community and Regional Affairs. The                                                         
               subcommittee  added 400.0 in business  license receipts,                                                         
               which  left  the program  with  a  1,571.3 reduction  in                                                         
               funding. This amendment  restores program funding to the                                                         
               level requested by the Governor.                                                                                 
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Austerman  reported  that  the Department  of                                                         
          Commerce,  Community  and Economic  Development  subcommittee                                                         
          discussed the  loss of revenue from business  license fees in                                                         
          2008.   He explained that Amendment 3  restores $1,571,300 in                                                         
          General  Fund program funding  to the level requested  by the                                                         
          Governor.                                                                                                             
                                                                                                                                
          Co-Chair  Hawker noted that  the subcommittee  added $400,000                                                         
          in business  license receipts leaving a  reduction in funding                                                         
          which was fully restored.                                                                                             
                                                                                                                                
          Co-Chair  Hawker  WITHDREW  his  OBJECTION  to  Amendment  3.                                                         
     There being NO OBJECTION, Amendment 3 was adopted.                                                                         
                                                                                                                                
          2:04:11 PM                                                                                                          
                                                                                                                                
          Representative Austerman MOVED to ADOPT Amendment 4:                                                                  
                                                                                                                                
               OFFERED BY: Representatives Austerman and Hawker                                                                 
                                                                                                                                
               DEPARTMENT:          Commerce, Community and Economic                                                            
                                    Development                                                                                 
               APPROPRIATION:       Alaska Energy Authority                                                                     
               ALLOCATION:          Alaska Energy Authority Power Cost                                                          
                                    Equalization                                                                                
                                                                                                                                
         DELETE:         $4,000,000 PCE Fund (1089)                                                                             
                                                                                                                                
               EXPLANATION:    The Committee  Substitute bill  bypasses                                                         
               the PCE fund and  appropriates money directly to the PCE                                                         
               program.  The appropriation of $4 million  from the fund                                                         
               is  unnecessary because  an open-ended  appropriation of                                                         
               GF to  the PCE program for FY09 will  leave the PCE fund                                                         
               with  a zero balance at  the end of FY09.  Removing this                                                         
               "hollow   authorization"  will   have  no   programmatic                                                         
               impact;  the PCE program is fully funded  in FY2010 with                                                         
               an open-ended GF appropriation.                                                                                  
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Austerman  related that  the amendment  fully                                                         
          funds   Power  Cost   Equalization   (PCE),  removes   hollow                                                         
          authorization,  and appropriates  money  directly to  the PCE                                                         
          program.   Co-Chair  Hawker added  that the  item was  in the                                                         
          governor's  original  budget and  the  funding was  uncertain                                                         
          earlier.                                                                                                              
                                                                                                                                
Representative  Gara recalled that  last special  session the                                                                   
PCE subsidy was  increased to cover communities  that charged                                                                   
about $1  per kwh, rather than  the previous amount  of about                                                                   
$.52 per  kwh.  He  understood that  the funding was  for one                                                                   
year.  He suggested that this  amendment would fund the older                                                                   
PCE program.   Co-Chair Hawker disagreed.  He  explained that                                                                   
PCE would be  funded under the current,  higher appropriation                                                                   
structure.  Representative Gara summarized the policy call.                                                                     
                                                                                                                                
Representative  Austerman related  that there is  legislation                                                                   
to remove the sunset date on last  year's legislation so that                                                                   
the higher funding continues.                                                                                                   
                                                                                                                                
Co-Chair  Hawker  WITHDREW his  OBJECTION.    There being  NO                                                                   
OBJECTION, Amendment 4 was adopted.                                                                                             
                                                                                                                                
2:07:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas MOVED to ADOPT Amendment 5:                                                                                   
                                                                                                                                
     OFFERED BY: Representatives Thomas and Hawker                                                                              
                                                                                                                                
     DEPARTMENT:    Department   of  Commerce,   Community  &                                                                   
     Economic Development                                                                                                       
                                                                                                                                
     ADD: It  is  the  intent  of the  legislature  that  any                                                                   
     marketing entities that receive  state funding shall not                                                                   
     engage in any lobbying efforts of any kind.                                                                                
                                                                                                                                
     EXPLANATION:                                                                                                               
     It  is inappropriate  for entities  who receive  general                                                                   
     fund  money  from  the  state   to  engage  in  lobbying                                                                   
     activities.                                                                                                                
                                                                                                                                
     ADD: It  is  the  intent  of the  legislature  that  any                                                                   
     marketing  entities  that  receive state  funding  shall                                                                   
     coordinate   their  efforts   when  implementing   their                                                                   
     marketing  strategies.  This  shall include, but  is not                                                                   
     limited to, fishing, tourism, and agriculture.                                                                             
                                                                                                                                
     EXPLANATION:                                                                                                               
     It is  economical to ask  that the entities  who receive                                                                   
     state  funding  should  work   together  when  marketing                                                                   
     Alaska and Alaskan products.                                                                                               
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Vice-Chair Thomas  explained that  the amendment  adds intent                                                                   
language  that  any marketing  entities  that  receive  state                                                                   
funding  shall not  engage  in any  lobbying  efforts of  any                                                                   
kind.                                                                                                                           
                                                                                                                                
Co-Chair Hawker added that it was intent language.                                                                              
                                                                                                                                
          Vice-Chair Thomas  explained the second part  of Amendment 5.                                                         
          He  said  it  is  the  intent of  the  legislature  that  any                                                         
          marketing   entity   that   receives  state   funding   shall                                                         
          coordinate  their efforts  when implementing  their marketing                                                         
          strategies.    He shared  a  story  about in-state  fisheries                                                         
          marketing   and  suggested   ways  to   help   Alaskans  with                                                         
          marketing.                                                                                                            
                                                                                                                                
          2:10:07 PM                                                                                                          
                                                                                                                                
          Co-Chair  Stoltze addressed  part  one of  the amendment  and                                                         
          asked  how  broad  it was.    He  wondered if  the  amendment                                                         
          targets  the   Alaska  Travel  Industry   Association  (ATIA).                                                        
          Vice-Chair  Thomas   pointed  out  that  the  Alaska  Seafood                                                         
          Marketing   Institute  (ASMI)  is  already   prohibited  from                                                         
          running  marketing  campaigns  against  any  other  group  in                                                         
          Alaska.   He  explained  his concerns  with  ATIA's stand  on                                                         
          halibut  quotas.  He  pointed out  the impact in  District 2C                                                         
          and  the resulting  loss of  income and  the negative  social                                                         
          effects.                                                                                                              
                                                                                                                                
          Co-Chair  Hawker  added  that  the  restriction  is  only  on                                                         
          entities  that are  marketing Alaskan  products.   Vice-Chair                                                         
          Thomas agreed.                                                                                                        
                                                                                                                                
          Co-Chair  Stoltze commented  that the  issue has  a different                                                         
          dynamic  in his area  of the  state.  It  is not  a clear-cut                                                         
          science vs. politics  issue, and the North Pacific Management                                                         
          Council,  for  example,  is  filled  with  its own  group  of                                                         
          politicians.  He thought  there were enough avenues available                                                         
          for communication  within the tourism industry.   He reported                                                         
          that  he has a  problem with limits  to halibut  fisheries in                                                         
          the Cook Inlet where there is less tourism.                                                                           
                                                                                                                                
          2:14:13 PM                                                                                                          
                                                                                                                                
          Co-Chair Hawker noted  that it was intent language and he was                                                         
          in favor of it.                                                                                                       
                                                                                                                                
          Representative  Kelly  agreed  with  Co-Chair  Stoltze.    He                                                         
          thought  the amendment was  too broadly  worded.  He  gave an                                                         
          example  of a scenario  that would  prohibit a slide  show by                                                         
          various industry groups.                                                                                              
                                                                                                                                
          Vice-Chair Thomas thought  that marketing entities paid a fee                                                         
          outside of  state funding.  He did not want  to see them take                                                         
          positions  which negatively impacted  Alaska.   He especially                                                         
          took  issue with  telling the  International Pacific  Halibut                                                         
          Commission how to manage  the fishery.  He stated that it has                                                         
          been a negative impact  to the 2,000 fishers in his district.                                                         
          He reported  that he  personally has lost  money.  He  made a                                                         
          point that marketing has taken a negative direction.                                                                  
                                                                                                                                
Representative  Kelly reiterated that  the amendment  was too                                                                   
broad and anyone  in ATIA or ASME would read  it incorrectly.                                                                   
He suggested  spending more time  on the amendment  before it                                                                   
is offered.                                                                                                                     
                                                                                                                                
2:17:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas suggested splitting the motion.                                                                               
                                                                                                                                
Co-Chair  Hawker  suggested  Amendment   5  be  divided  into                                                                   
Amendments 5A and 5B.                                                                                                           
                                                                                                                                
Co-Chair Hawker WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Vice-Chair Thomas MOVED to ADOPT Amendment 5B:                                                                                  
                                                                                                                                
     OFFERED BY: Representatives Thomas and Hawker                                                                              
                                                                                                                                
     DEPARTMENT:    Department   of  Commerce,   Community  &                                                                   
     Economic Development                                                                                                       
                                                                                                                                
     ADD: It  is  the  intent  of the  legislature  that  any                                                                   
     marketing entities  that receive state funding  shall to                                                                   
     the maximum extent practicable  coordinate their efforts                                                                   
     when  implementing  their  marketing strategies.    This                                                                   
     shall include, but is not  limited to, fishing, tourism,                                                                   
     and agriculture.                                                                                                           
                                                                                                                                
     EXPLANATION:                                                                                                               
     It is  economical to ask  that the entities  who receive                                                                   
     state  funding  should  work   together  when  marketing                                                                   
     Alaska and Alaskan products.                                                                                               
                                                                                                                                
Representative Kelly OBJECTED.                                                                                                  
                                                                                                                                
2:19:49 PM                                                                                                                    
                                                                                                                                
Representative  Kelly suggested  a friendly amendment;  after                                                                   
"shall" add "to the maximum extent practicable".                                                                                
                                                                                                                                
Co-Chair  Stoltze OBJECTED  to  the Conceptual  Amendment  to                                                                   
Amendment  5B.     He  explained  that  he   thought  it  was                                                                   
unnecessary.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
2:22:06 PM                                                                                                                    
                                                                                                                                
There being  NO further  OBJECTION, the Conceptual  Amendment                                                                   
to Amendment 5B was adopted.                                                                                                    
                                                                                                                                
Representative Kelly WITHDREW  his OBJECTION.  There being NO                                                                   
OBJECTION, Amendment 5B was adopted.                                                                                            
                                                                                                                                
          Vice-Chair  Thomas WITHDREW  Amendment  5A.   Co-Chair Hawker                                                         
          agreed  that  intent  language  should  apply only  to  state                                                         
          funds.                                                                                                                
                                                                                                                                
          2:23:05 PM                                                                                                          
                                                                                                                                
          Representative Joule MOVED to ADOPT Amendment 6:                                                                      
                                                                                                                                
               OFFERED BY: Representatives Joule and Hawker                                                                     
                                                                                                                                
               DEPARTMENT:          Health and Social Services                                                                  
               APPROPRIATION:       Juvenile Justice                                                                            
               ALLOCATION:          Probation Services                                                                          
                                                                                                                                
               ADD: $225,000 General Fund (1004)                                                                                
                                                                                                                                
               EXPLANATION:   This amendment provides  base funding for                                                         
               guard  hires for escorts,  travel for juveniles  who are                                                         
               not Medicaid-eligible,  psychiatric evaluations that are                                                         
               not  Medicaid-eligible and  other various  court-ordered                                                         
               costs.  The funding  applies to youth either in division                                                         
               custody  or  under  court  order  to  receive  specified                                                         
               services.                                                                                                        
                                                                                                                                
               In  recent  years,  the  legislature  has  directed  the                                                         
               department  to   include  these  costs  as  supplemental                                                         
               request.  This amendment  will reduce  or  eliminate the                                                         
               need for supplemental funding.                                                                                   
                                                                                                                                
          CO-CHAIR HAWKER OBJECTED.                                                                                             
                                                                                                                                
          Representative  Joule  explained  that  the  amendment  would                                                         
          allow   Juvenile  Justice   to  quit   coming  back   to  the                                                         
          legislature  through the  supplemental  budget process.   The                                                         
          amount  requested  has  been  consistent.    Co-Chair  Hawker                                                         
          agreed. The amendment  was identified during the supplemental                                                         
          budget process  this year.   About five years  ago a decision                                                         
          was made regarding the  probation services request, which has                                                         
          remained  constant  since  then.   He  stated  that the  item                                                         
          belongs in the operating budget.                                                                                      
                                                                                                                                
          Co-Chair Hawker WITHDREW  his OBJECTION to adopting Amendment                                                         
          6.  There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
          2:25:09 PM                                                                                                          
                                                                                                                                
          Representative Joule MOVED to ADOPT Amendment 7:                                                                      
                                                                                                                                
               OFFERED BY: Representatives Joule and Hawker                                                                     
                                                                                                                                
               DEPARTMENT:          Health and Social Services                                                                  
               APPROPRIATION:       Public Health                                                                               
     ALLOCATION:         Chronic Disease Prevention and                                                                         
                         Health Promotion                                                                                       
                                                                                                                                
     DELETE:        $923,100 General Fund (1004)                                                                                
                                                                                                                                
     EXPLANATION:                                                                                                               
     This amendment deletes funding  for the establishment of                                                                   
     a new childhood obesity prevention  program. The program                                                                   
     as  proposed  appears  to   be  an  investment  in  data                                                                   
     collection and analysis,  with very little funding being                                                                   
     used  to address  the core  issues of  the problem.   As                                                                   
     childhood  obesity is a  concern, further  consideration                                                                   
     should be  given to working together with  the Anchorage                                                                   
     School  District  in  expanding  their  very  successful                                                                   
     model to other school districts.                                                                                           
                                                                                                                                
     The very gradual inclusion  of school districts into the                                                                   
     program is  of concern, as  is the limited use  of these                                                                   
     resources   to   assist   the   school   districts   and                                                                   
     communities in directly addressing this issue.                                                                             
                                                                                                                                
     Long range cost projects  for this program are projected                                                                   
     to be over $16 million.                                                                                                    
                                                                                                                                
Co-Chair Hawker OBJECTED for discussion purposes.                                                                               
                                                                                                                                
Representative  Joule commented  that  he would  like to  see                                                                   
more emphasis on community coalitions  for such programs.  He                                                                   
did not  want to  fund a  new program,  given today's  budget                                                                   
climate.                                                                                                                        
                                                                                                                                
Co-Chair Hawker agreed with the  amendment.  He stressed that                                                                   
effort was made to understand  the $15.7 million request long                                                                   
range.   He agreed that the  issue of obesity  prevention was                                                                   
important,  but that  this program  only  established a  data                                                                   
keeping bureaucracy  and did not coordinate with  schools and                                                                   
the Department of Education and Early Development.                                                                              
                                                                                                                                
2:29:10 PM                                                                                                                    
                                                                                                                                
Representative Gara thought he  needed more information about                                                                   
the  subject,  although  he  agreed with  the  concept.    He                                                                   
wondered if  the educational portion  of the increment  could                                                                   
be included.  He requested more  time to understand the basis                                                                   
for data gathering.                                                                                                             
                                                                                                                                
Co-Chair Hawker WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Representative Gara OBJECTED.                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Fairclough, Foster, Joule, Kelly, Austerman,                                                                          
          Thomas, Hawker, Stoltze                                                                                               
                                                                                                                                
          OPPOSED: Gara, Salmon, Crawford                                                                                       
                                                                                                                                
          The MOTION PASSED (8-3).                                                                                              
                                                                                                                                
          2:33:30 PM                                                                                                          
                                                                                                                                
          Co-Chair Hawker MOVED to ADOPT Amendment 8:                                                                           
                                                                                                                                
               OFFERED   BY:  Representatives  Hawker   by  request  of                                                         
               Governor                                                                                                         
                                                                                                                                
               DEPARTMENT:          Law                                                                                         
               APPROPRIATION:       Criminal Division                                                                           
               ALLOCATION:          See below                                                                                   
                                                                                                                                
               Law Item 1 Second Judicial Dist Fed Funds 90.0                                                                   
                                                                                                                                
               Law Item 2 Fourth Judicial Dist Fed Funds 285.0                                                                  
                                                                                                                                
               Law Item  3 Criminal Appeals/Special  Litigation Federal                                                         
               Funds 271.6                                                                                                      
                                                                                                                                
               Total Federal Funds $646.6                                                                                       
                                                                                                                                
               EXPLANATION:   This amendment moves  Governor's requests                                                         
               for lapse  extensions from the supplemental  bill to the                                                         
               operating  bill. In an  effort to ensure that  all money                                                         
               that  will  be   available  for  agency  expenditure  is                                                         
               reviewed   in   conjunction   with   regular   operating                                                         
               requests,  this amendment  puts the Department  of Law's                                                         
               Federal   lapse  extensions  before   the  full  finance                                                         
               committee   for  consideration  as   FY2010  increments.                                                         
               Please  see the following pages for  details provided by                                                         
               OMB.                                                                                                             
                                                                                                                                
          Co-Chair Stoltze OBJECTED.                                                                                            
                                                                                                                                
          Co-Chair Hawker explained  Amendment 8 consists of items that                                                         
          had been  in the supplemental/operating  budget bill.   These                                                         
          are  federal funds  that  have not  been  expended and  which                                                         
          require continuing authorization.                                                                                     
                                                                                                                                
          Co-Chair Stoltze WITHDREW his OBJECTION.  There being NO                                                              
          OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
          2:34:37 PM                                                                                                          
                                                                                                                                
          Representative Kelly MOVED to ADOPT Amendment 9:                                                                      
                                                                                                                                
               OFFERED BY:         Representatives Hawker and Kelly                                                             
                                                                                                                                
               DEPARTMENT:          Department of Natural Resources                                                             
               APPROPRIATION:       Parks and Recreation Management                                                             
     ALLOCATION:         Parks Management                                                                                       
                                                                                                                                
     ADD: $138,500 general fund (fund code 1004)                                                                                
                                                                                                                                
     EXPLANATION:                                                                                                               
     Since 1997  the State Parks in the Prince  William Sound                                                                   
     area  have  been  managed  by  volunteer  organizations.                                                                   
     Despite  their  enormous  and admirable  efforts,  these                                                                   
     organizations  can no longer  afford to continue  losing                                                                   
     money and are  giving up on their efforts  to manage the                                                                   
     State  Parks  at  places like  the  Worthington  Glacier                                                                   
     (which receives  over 40,000  visits annually).   Alaska                                                                   
     State Parks  has no permanent  Parks presence  in Valdez                                                                   
     or  the Prince  William Sound.   The  nearest office  is                                                                   
     located  in Soldotna,  and rarely  ever does a  district                                                                   
     ranger visit  the entire Prince William  Sound or Valdez                                                                   
     area.                                                                                                                      
                                                                                                                                
     These  parks  are  beautiful  and are  heavily  used  by                                                                   
     Alaskan residents  and tourists.  Unless  a Valdez State                                                                   
     Park Ranger position is established,  at least one state                                                                   
     park  - Worthington Glacier  - is  almost certain  to be                                                                   
     closed  this coming  summer.   Additional  parks in  the                                                                   
     area   are  likely   to  also   close  since   volunteer                                                                   
     organizations  currently  operating  the parks  can  not                                                                   
     continue to lose money.                                                                                                    
                                                                                                                                
     The addition  of a Park Ranger position  in Valdez would                                                                   
     vitalize  volunteer  efforts by  allowing  the parks  to                                                                   
     remain   open.     This  new   position  would   oversee                                                                   
     maintenance  and  upkeep of  14  state marine  parks  in                                                                   
     Prince William Sound.                                                                                                      
                                                                                                                                
     The Valdez Area State Parks  Citizens Advisory Board has                                                                   
     prioritized  this request  as their  number 1  issue and                                                                   
     has expressed  the critical  nature of the  situation to                                                                   
     me directly.   A survey conducted last  summer indicates                                                                   
     that visitors spend $12.2  million annually to enjoy PWS                                                                   
     state parks, which results in 103 local jobs.                                                                              
                                                                                                                                
     Here is breakdown of the budget request:                                                                                   
                                                                                                                                
     Park Ranger (Range 16A - 12 $71,200                                                                                        
     months)                                                                                                                    
     Vehicles:   Ranger    (4WD   pickup $7,500                                                                                 
     truck)    &   Fuel    ACC/volunteer                                                                                        
     (surplus truck) & Fuel                                                                                                     
     Park Maintenance & Janitorial $6,500                                                                                       
     Supplies                                                                                                                   
     Toilet Pumping (Worthington & $900                                                                                         
     Blueberry Lake)                                                                                                            
     Garbage Removal (Worthington & $5,900                                                                                      
     Blueberry Lake)                                                                                                            
     Travel & Per Diem for Park $8,000                                                                                          
               Maintenance in PWS                                                                                               
               Boat Maintenance, Harbor Slip, $4,500                                                                            
               Operation                                                                                                        
               Volunteer Support                    $2,000                                                                      
               Alaska   Conservation    Corps   (4 $10,000                                                                      
               months)                                                                                                          
               Office/Shop Rental & Utilities       $12,000                                                                     
               Road Maintenance:  Annual Grading $10,000                                                                        
               and Snow Removal at Blueberry Lake                                                                               
               & Worthington Glacier                                                                                            
               TOTAL                                $138,500                                                                  
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative   Kelly  explained  that   the  amendment  was                                                         
          requested by Representative  Harris.  It would replace a Park                                                         
          Ranger  position  and  park  supplies  in  the  Valdez/Prince                                                         
          William Sound  area, which is no longer  managed by volunteer                                                         
          organizations.                                                                                                        
                                                                                                                                
          Co-Chair  Hawker informed the  Committee that  the Department                                                         
          of Natural Resources  was involved in drafting the amendment.                                                         
          He  also  reported  on  a  formal  notice  by  the  volunteer                                                         
          organizations  that they would  not be able to  keep managing                                                         
          the   state  parks   in  the   Prince  William   Sound  area.                                                         
          Representative  Kelly added  that loss  of volunteers  was an                                                         
          issue.                                                                                                                
                                                                                                                                
          Co-Chair Hawker REMOVED  his OBJECTION to Amendment 9.  There                                                         
          being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
          2:37:27 PM                                                                                                          
                                                                                                                                
          Co-Chair  Hawker  added  three to  the  list  of sponsors  to                                                         
          Amendment 10: Gara, Crawford, and Salmon.                                                                             
                                                                                                                                
          Representative Fairclough MOVED to ADOPT Amendment 10:                                                                
                                                                                                                                
               OFFERED BY: Representatives Fairclough, Stoltze,                                                               
               Hawker, Gara, Crawford, and Salmon                                                                               
                                                                                                                                
               DEPARTMENT:          Public Safety                                                                             
               APPROPRIATION:       Council on Domestic Violence and                                                          
                                    Sexual Assault                                                                              
               ALLOCATION:          Council on Domestic Violence and                                                          
                                    Sexual Assault                                                                              
                                                                                                                                
               ADD:                 $500,000 PFD Criminal Funds (1171)                                                        
                                                                                                                              
               EXPLANATION:   This amendment  brings the  FY2010 budget                                                       
               for  the  Council on  Domestic  Violence  closer to  the                                                         
               FY2010  Governor's  request. The  Governor requested  an                                                         
               increase  of  $1,677.9.  The Committee  Substitute  bill                                                         
     includes an increase of $296.0. Due to extraordinarily                                                                     
     high PFDs, the amount of available PFD criminal funds                                                                      
     is sufficient to fund this amendment.                                                                                      
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative   Fairclough  explained   that   all  of   her                                                                   
colleagues  recognize  the  issue  of  domestic  violence  in                                                                   
Alaska.   She thanked the  subcommittee chair  for increasing                                                                   
the request by $296,000.  It was  not as much as the governor                                                                   
had  proposed, $1.6  million.   She  requested an  additional                                                                   
$500,000 to  help private, non-profit  programs in  all areas                                                                   
of domestic violence.                                                                                                           
                                                                                                                                
2:39:41 PM                                                                                                                    
                                                                                                                                
Representative Crawford did not  object to the amendment, but                                                                   
questioned  the   funding  source.    He  discussed   a  bill                                                                   
regarding  funds  to  children  of  incarcerated  felons  and                                                                   
wondered what would happen if  there was not enough PFD money                                                                   
to fund both programs.                                                                                                          
                                                                                                                                
Co-Chair  Hawker  commented that  the  base  funding and  the                                                                   
additional funding  for the Council on Domestic  Violence and                                                                   
Sexual  Assault were  from  PFD  crime funds.    There is  an                                                                   
extraordinary amount  of PFD crime funds available  this year                                                                   
due to the one-time increase in  the PFD last year.  He noted                                                                   
that the issue  of sustained funding would return  next year.                                                                   
He added that Section 20 (q) of  the bill addresses the Crime                                                                   
Victim  Compensation Fund  in the amount  of $459,200,  which                                                                   
Representative Crawford was referring to.                                                                                       
                                                                                                                                
Co-Chair  Stoltze questioned  what would  happen if  dividend                                                                   
and revenue funds  fall short.  Co-Chair Hawker  commented on                                                                   
Co-Chair  Stoltze's   choice  to  prioritize   the  sustained                                                                   
general funding commitment into  the Law Enforcement Officers                                                                   
increments  for Village  Public  Safety  Officers.   Co-Chair                                                                   
Stoltze pointed that  that came in after $74  per barrel oil.                                                                   
Co-Chair  Hawker  echoed  Co-Chair Stoltze's  concerns.    He                                                                   
believed the budget was responsible, but not sustainable.                                                                       
                                                                                                                                
2:43:48 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough  appealed   to  the  Committee  to                                                                   
support  Amendment 10.   She reported  that public  testimony                                                                   
showed a need for this funding.                                                                                                 
                                                                                                                                
Co-Chair  Hawker referred  to  a document  which showed  that                                                                   
Alaska has made an increased commitment  to the prevention of                                                                   
domestic violence.   In FY 04 only $4.7 million  was put into                                                                   
this program.  This year, $4.5 was added to that amount.                                                                        
                                                                                                                                
Co-Chair  Hawker  WITHDREW  his OBJECTION  to  Amendment  10.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
          2:45:43 PM                                                                                                          
                                                                                                                                
     Representative Foster MOVED to ADOPT Amendment 11:                                                                         
                                                                                                                                
               OFFERED BY:  Representatives Foster and Hawker                                                                   
                                                                                                                                
               DEPARTMENT:          Transportation and Public                                                                   
                                    Facilities                                                                                  
         APPROPRIATION:       Marine Highway System                                                                             
               ALLOCATION:          Marine Vessel Operations                                                                    
                                                                                                                                
               ADD:                 $4,617,600 Marine Highway Fund                                                              
               (1076)                                                                                                           
                                                                                                                                
               ADD:                 New subsections to section 20 (fund                                                         
                                    capitalization)                                                                             
                                                                                                                                
               (t)  The  sum of  $5,000,000  is  appropriated from  the                                                         
               general  fund to the  Alaska marine highway  system fund                                                         
               (AS 19.65.060(a)).                                                                                               
                                                                                                                                
               (u)  The  unexpended  and  unobligated  balance  of  the                                                         
               appropriation made  in sec. 19 (d) (1), ch. 27, SLA 2008                                                         
               to the Department  of Transportation & Public Facilities                                                         
               is  reappropriated to the  Alaska marine  highway system                                                         
               fund (AS 19.65.060(a)). (Effective date June 30, 2009)                                                           
                                                                                                                                
               EXPLANATION: The  addition of $4.6 million to the FY2010                                                         
               base  budget  will   allow  the  AMHS  to  continue  the                                                         
               schedule  covering  operations  through September  2009.                                                         
               However,  in combination with subcommittee  actions, the                                                         
               additional  expenditures  authorized  by this  amendment                                                         
               leave the marine  highway fund with a projected year-end                                                         
          FY2010 deficit in excess of $4 million.                                                                               
                                                                                                                                
               New  section (t) eliminates  the projected  deficit. New                                                         
               section  (u) reappropriates available  FY09 fuel trigger                                                         
               funding  (estimated to  be $9.2  million) to  the marine                                                         
               highway  fund, allowing the fund to  fulfill its role as                                                         
               a stabilizing force.                                                                                             
                                                                                                                                
               Language  (in  section 19  of  the committee  substitute                                                         
               bill)  allowing expenditures  of marine  highway program                                                         
               receipts  in excess  of the  appropriations made  in the                                                         
               operating  budget  (subject  to LB&A  Committee  review)                                                         
               permits  the  Department   to  spend  additional  marine                                                         
               highway funds through the RPL process.                                                                           
                                                                                                                                
          Co-Chair Stoltze OBJECTED.                                                                                            
                                                                                                                                
          LARRY   LABOLLE,   STAFF,  REPRESENTATIVE   RICHARD   FOSTER,                                                         
          explained that the amendment  addresses two unresolved issues                                                         
          that  were left  out after  subcommittee budgets  were closed                                                         
out.  The first  appropriation would add $4.6  million to the                                                                   
Marine Highway  Operations.  The governor had  requested this                                                                   
one-time increment as a part of  the base budget, however, an                                                                   
explanation  of how the  funds would be  used was  not given.                                                                   
The second part of the amendment  deals with capitalizing the                                                                   
Marine Highway  Stabilization Fund, now that  projections are                                                                   
available.                                                                                                                      
                                                                                                                                
Mr. LaBolle listed  the three sections of the  amendment: the                                                                   
first two  are the  addition of money  to the Marine  Highway                                                                   
Operations,  the third  section of the  amendment deals  with                                                                   
the unexpended and unobligated  balance of the appropriation,                                                                   
the fuel trigger funding for $9.2  million.  This combination                                                                   
should make the Marine Highway  capable of carrying out their                                                                   
schedule through 2009 and will  capitalize the fund to ensure                                                                   
adequate cash flow.                                                                                                             
                                                                                                                                
Co-Chair Hawker  agreed with the  amendment.   He appreciated                                                                   
the efforts  by the Department  of Transportation  and Public                                                                   
Facilities.    With  the  adoption   of  the  amendment,  the                                                                   
operating request will be fully  funding, the bargaining unit                                                                   
included, and  lapse money will  be spent.  Last  year's fuel                                                                   
trigger was  placed at the peak  of oil prices.   It appeared                                                                   
that the Marine Highway System  would be lapsing $9.2 million                                                                   
of  fuel trigger  money.   The  amendment  would provide  for                                                                   
continued spending authority and  a $10 million cushion as an                                                                   
operations buffer.                                                                                                              
                                                                                                                                
2:50:44 PM                                                                                                                    
                                                                                                                                
Mr.  LaBolle  related  that  the  amendment  puts  about  $15                                                                   
million more into  the fund, the amount that  was vetoed last                                                                   
year  by  the  governor.    Co-Chair  Hawker  summarized  the                                                                   
capitalization  process last  year,  whereby the  legislature                                                                   
had  appropriated  a  $25 million  increment  to  the  Marine                                                                   
Highway and the governor vetoed $15 million of that amount.                                                                     
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.   There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:51:55 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas MOVED to ADOPT Amendment 12:                                                                                  
                                                                                                                                
     OFFERED BY:  Representatives Thomas and Hawker                                                                           
                                                                                                                                
     DEPARTMENT:         Transportation and Public                                                                            
                         Facilities                                                                                             
     APPROPRIATION:      Marine Highway System                                                                                
     ALLOCATION:         Marine Vessel Operations                                                                             
                                                                                                                                
                                                                                                                                
     ADD INTENT:                                                                                                              
               It is the intent of the legislature that money                                                                   
               allocated for the Marine Transportation Advisory Board                                                           
               not be spent for any other purpose.                                                                              
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Vice-Chair Thomas explained that the intent of the amendment                                                          
          is that the money allocated for the Marine Transportation                                                             
     Advisory Board not be spent for any other purpose.                                                                         
                                                                                                                                
          Co-Chair Hawker REMOVED his OBJECTION.  There being NO                                                                
          OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
          2:53:17 PM                                                                                                          
                                                                                                                                
          Representative Fairclough MOVED to ADOPT Amendment 13:                                                                
                                                                                                                                
               OFFERED BY:  Representatives Fairclough and Hawker                                                               
                                                                                                                                
         DEPARTMENT:          University of Alaska                                                                              
         APPROPRIATION:       University of Alaska                                                                              
               ALLOCATION:          Systemwide Education and Outreach                                                           
                                                                                                                                
               TRIN:     $1,253,000 Total and 9 PFT positions                                                                   
                         $922,600 General Fund (1004)                                                                           
                         $320,400 Univ Rcpts (1048)                                                                             
                         $10,000 UA Interagency Rcpts (1174)                                                                    
                                                                                                                                
         APPROPRIATION:       University of Alaska                                                                              
               ALLOCATION:          Kenai Peninsula College                                                                     
                                                                                                                                
               TROUT:    $1,253,000  Total with 9 PFT positions                                                                 
                $922,600 General Fund (1004)                                                                                    
                          $320,400 Univ Rcpts (1048)                                                                            
                          $10,000 UA Interagency Rcpts (1174)                                                                   
                                                                                                                                
               EXPLANATION:     This  amendment   accepts  a   pair  of                                                         
               transactions  proposed  in the  Governor's budget  which                                                         
               transfers  the  Mining and  Petroleum Training  Services                                                         
               (MAPTS)  from  Kenai  Peninsula  College  to  Systemwide                                                         
               Education and Outreach.                                                                                          
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative Fairclough explained that the amendment was                                                            
          necessary due to lack of time to talk to the University                                                               
          about this issue.                                                                                                     
                                                                                                                                
          Co-Chair Hawker REMOVED his OBJECTION.  There being NO                                                                
          OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
          2:54:09 PM                                                                                                          
                                                                                                                                
          Representative Fairclough MOVED to ADOPT Amendment 14:                                                                
                                                                                                                                
     OFFERED BY:  Representatives Fairclough and Hawker                                                                         
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Small Business Development Center                                                                      
                                                                                                                                
     ADD:      $550,000 General Fund (1004)                                                                                     
    DELETE:   $550,000 Business License Receipts (1175)                                                                         
                                                                                                                                
     EXPLANATION:   Replaces business  license receipts  with                                                                   
     general funds  as requested by the  Governor. Governor's                                                                   
     legislation cut  business license fees in  half, leaving                                                                   
     insufficient revenue to pay for program costs.                                                                             
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative  Fairclough   explained  that   the  amendment                                                                   
changes  the  fund  source  to   allow  the  University  more                                                                   
flexibility  when using  general funds  rather than  business                                                                   
license receipts.                                                                                                               
                                                                                                                                
Co-Chair  Hawker  WITHDREW  his OBJECTION  to  Amendment  14.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
2:54:57 PM                                                                                                                    
                                                                                                                                
Representative Fairclough MOVED to ADOPT Amendment 15:                                                                          
                                                                                                                                
     OFFERED BY:  Representatives Fairclough and Hawker                                                                         
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Anchorage Campus                                                                                       
                                                                                                                                
     ADD: $500,000 General Fund (1004)                                                                                          
                                                                                                                                
     EXPLANATION:   This  amendment funds  the operating  and                                                                   
     maintenance costs  necessary to open the  new Integrated                                                                   
     Sciences   Building   (ISB)  in   the   fall  of   2009.                                                                   
     Completion  of the  120,000  square  foot facility  will                                                                   
     approximately  double  the amount  of  space devoted  to                                                                   
     science instruction and research programs.                                                                                 
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative Fairclough  explained that there  is a concern                                                                   
at the  University whether there  would be enough  funding to                                                                   
open their  new Integrated Sciences  Building.  This  money -                                                                   
$500,000 - would enable that to happen.                                                                                         
                                                                                                                                
Co-Chair  Hawker  added that  he  talked with  personnel  who                                                                   
agreed that $500,000 was adequate for the request.                                                                              
                                                                                                                                
          Representative  Gara cautioned that he would  object if money                                                         
          was being taken out of a teaching program.                                                                            
                                                                                                                                
          Co-Chair  Hawker  REMOVED  his  OBJECTION.   There  being  NO                                                         
          OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
          2:57:50 PM                                                                                                          
                                                                                                                                
          Representative Crawford MOVED to ADOPT Amendment 16:                                                                  
                                                                                                                                
               OFFERED BY:   Representative Crawford                                                                            
                                                                                                                                
               DEPARTMENT:          Commerce, Community, and Economic                                                           
               Development                                                                                                      
               APPROPRIATION:       Alaska Energy Authority                                                                     
               ALLOCATION:          Statewide Project Development,                                                              
                                    Alternative Energy and Efficiency                                                           
                                                                                                                                
               ADD: $360,300 General Funds (1004)                                                                               
                         Support for Energy Planning- $150.0                                                                    
                         Funding for AEA Executive Director- $210.3                                                             
                                                                                                                                
               EXPLANATION:    This restores funding recommended in the                                                         
               Governor's  Amended budget for  senior staff in  the AEA                                                         
          office including the executive director.                                                                              
                                                                                                                                
               AEA  staff are charged  with statewide  energy planning,                                                         
               preparing  for   the  governor's  transition  to  a  50%                                                         
               renewable  grid by 2025, and reviewing  and recommending                                                         
               projects for the Renewable Energy Grant Fund.                                                                    
                                                                                                                                
               The change  made by the subcommittee  reflects more than                                                         
               a 30% reduction  to the governor's requested budget.  In                                                         
               the  FY09 budget,  these functions  were funded  in part                                                         
               through  a fund transfer  from the  Governor's Executive                                                         
               Operations budget.                                                                                               
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Crawford   related  that  the  state  made  a                                                         
          commitment  toward  renewable energy  for  $300 million  over                                                         
          five  years.  The  Alaska Energy  Authority (AEA)  that would                                                         
          administer  the funds  was not  funded adequately  to oversee                                                         
          the  workload  necessary  to  handle  energy planning.    The                                                         
          amendment restores funding for AEA.                                                                                   
                                                                                                                                
          Co-Chair  Hawker thought  Representative Crawford's  concerns                                                         
          had merit,  however, he noted  that there were  other sources                                                         
          of  funding available, such  as AIDA.   He spoke  against the                                                         
          amendment.                                                                                                            
                                                                                                                                
          3:00:55 PM                                                                                                          
                                                                                                                                
Representative  Austerman clarified  that the positions  were                                                                   
created using  CIP money and  additional funds should  not be                                                                   
requested now.                                                                                                                  
                                                                                                                                
Representative  Gara summarized  that the  issue is  that AEA                                                                   
has the  responsibility  to deal with  the state's  renewable                                                                   
energy.   He noted that  without adequate AEA  support, money                                                                   
will be spent in  the wrong places, at a waste  to the state.                                                                   
Stimulus plans require a statewide  plan in which AEA will be                                                                   
involved.  He stressed the need to support AEA.                                                                                 
                                                                                                                                
Co-Chair Hawker felt that there  were sufficient funds in AEA                                                                   
to fund the position.                                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Salmon, Crawford                                                                                                
OPPOSED:  Joule,   Kelly,  Thomas,   Austerman,   Fairclough,                                                                   
          Foster, Hawker, Stoltze                                                                                               
                                                                                                                                
The MOTION FAILED (8-3).                                                                                                        
                                                                                                                                
3:04:43 PM                                                                                                                    
                                                                                                                                
Representative Crawford WITHDREW Amendment 17.                                                                                  
                                                                                                                                
3:05:10 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment 18:                                                                            
                                                                                                                                
     OFFERED BY:   Representative Crawford                                                                                      
                                                                                                                                
     DEPARTMENT:         Fish and Game                                                                                          
     APPROPRIATION:      Division of Wildlife Conservation                                                                      
     ALLOCATION:         Wildlife Conservation                                                                                  
                                                                                                                                
     ADD:      $200,100 General Funds (1004)                                                                                    
         Wildlife Biologist II               $74.3                                                                              
                    (PCN 11-2218; range 16)                                                                                     
               F&W Technician 3 (range 11)    $40.8                                                                             
               Travel, signage, small equipment,                                                                                
         trail maintenance, supplies         $85.0                                                                              
                                                                                                                                
     EXPLANATION:    Several     constituent    groups    and                                                                   
     organizations  have  concerns about  inadequate  funding                                                                   
     for the  management of wildlife refuges  in Southcentral                                                                   
     Alaska  and the  problem  it is  creating.   This is  an                                                                   
     area-wide issue  that primarily affects  Anchorage, Mat-                                                                   
     Su and Kenai.                                                                                                              
                                                                                                                                
     There are 25 wildlife refuges  in Southcentral, covering                                                                   
     2.5 million  acres of land.  Thirteen of  these refuges,                                                                   
     with  nearly   a  million   acres,  are  found   in  the                                                                   
     Anchorage,  Mat-Su, and Kenai  areas alone.   The budget                                                                   
               for managing  these 25 refuges, which  span from Yakutat                                                         
               to  Dillingham, is $15,000.   This level of  funding has                                                         
               created  a number  of public  safety issues  and habitat                                                         
               degradation  in  those  refuges  closest  to  population                                                         
               centers.                                                                                                         
                                                                                                                                
               People  are using the refuges  as a place  to dump cars,                                                         
               appliances,  and trash.   There is a  substantial amount                                                         
               of  illegal target shooting,  illegal tree  cutting, and                                                         
               in some  cases illegal cabins are being  built on public                                                         
               lands.                                                                                                           
                                                                                                                                
               The  division has had  a vacant Refuge  Manager position                                                         
               for  the  last  four  years.   This  is  a  Palmer-based                                                         
               wildlife  biologist  PCN.    Filling this  position  and                                                         
               adding  a seasonal Fish and Wildlife  Technician 3 would                                                         
               help solve the  public safety issues outlined above.  In                                                         
               addition,  increasing  the  current  $15,000  management                                                         
               budget  by $85,000 to a  total of $100,000  would enable                                                         
               the  division to  effectively manage  this  resource and                                                         
               make   the  refuges  safer   and  more   accessible  for                                                         
               Southcentral families.                                                                                           
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Crawford explained  that the amendment  was a                                                         
          fairness issue and was  needed to fund management of wildlife                                                         
          refuges  in Southcentral Alaska.   The small amount  of money                                                         
          would fund  one manager, would coordinate  volunteer efforts,                                                         
          and  would make  a difference  in the  lives of  Southcentral                                                         
          Alaskans.                                                                                                             
                                                                                                                                
          Co-Chair   Hawker  admitted  not   knowing  much   about  the                                                         
          amendment.                                                                                                            
                                                                                                                                
          3:07:58 PM                                                                                                          
                                                                                                                                
          Vice-Chair  Thomas observed that the  amendment was addressed                                                         
          in  the subcommittee  and a  recommendation  made that  it be                                                         
          included in the capital budget.                                                                                       
                                                                                                                                
          Co-Chair Hawker MAINTAINED his OBJECTION.                                                                             
                                                                                                                                
          Representative  Crawford  explained  that  the  intent is  to                                                         
          support an on-going program.                                                                                          
                                                                                                                                
          3:09:00 PM                                                                                                          
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Gara, Salmon, Crawford                                                                                      
          OPPOSED:  Joule,   Kelly,   Thomas,  Austerman,   Fairclough,                                                         
                    Foster, Hawker                                                                                              
                                                                                                                                
Co-Chair Stoltze was absent from the vote.                                                                                      
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
3:09:58 PM                                                                                                                    
                                                                                                                                
Representative Crawford WITHDREW Amendment 19.                                                                                  
                                                                                                                                
Co-Chair  Hawker  observed  that the  amendment  was  brought                                                                   
forward  by the minority  leader.   He pointed  out that  the                                                                   
funding  for  Child  Care  Benefits   was  increased  in  the                                                                   
subcommittee to 50 percent of the incremental request.                                                                          
                                                                                                                                
3:11:20 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment 20:                                                                            
                                                                                                                                
     OFFERED BY:   Representative Crawford                                                                                      
                                                                                                                                
     DEPARTMENT:         Department of Labor and Workforce                                                                      
     Development                                                                                                                
     APPROPRIATION:      Workers' Compensation and Safety                                                                       
     ALLOCATION:         Wage and Hour Administration                                                                           
                                                                                                                                
     ADD:                $150,000 General Fund $75.0 (1004)                                                                     
                         Workers Safety $75.0 (1157),                                                                           
                                                                                                                                
     EXPLANATION:   This    increment   is   to    fund   two                                                                   
     investigators  in  the  Wage   and  Hour  Agency.    The                                                                   
     investigators   will  perform  Title  36   and  workers'                                                                   
     compensation  classification fraud investigations.   The                                                                   
     positions  will also  assist in  child labor,  uninsured                                                                   
     employer and other necessary  wage and hour and workers'                                                                   
     compensation investigations.                                                                                               
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative Crawford shared  his personal history with the                                                                   
Iron Workers  Union.  He  explained that the  amendment would                                                                   
fund  Wage  and  Hour  investigation  positions,  which  were                                                                   
eliminated  while  vacant.  There   were  approximately  five                                                                   
positions eliminated;  one was reinstated.   He stressed that                                                                   
there is a backlog of work.                                                                                                     
                                                                                                                                
Representative  Fairclough  noted that  the  request was  not                                                                   
supported as a priority by the governor.                                                                                        
                                                                                                                                
3:14:25 PM                                                                                                                    
                                                                                                                                
Representative  Gara spoke to  the governor's priority  list.                                                                   
He stressed  that commissioners are directed  toward specific                                                                   
requests.   He  stressed the  need to  evaluate the  requests                                                                   
based on public need.                                                                                                           
                                                                                                                                
          Co-Chair Hawker MAINTAINED his OBJECTION.                                                                             
                                                                                                                                
          Representative Crawford acknowledged that it may not be an                                                            
          administration priority, but asserted that the work is not                                                            
          getting done and more help is needed to address violations.                                                           
                                                                                                                                
          3:17:23 PM                                                                                                          
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Gara, Salmon, Crawford                                                                                      
          OPPOSED: Joule, Thomas, Austerman, Fairclough, Foster,                                                                
                    Hawker                                                                                                      
                                                                                                                                
          The MOTION FAILED (3-6).                                                                                              
                                                                                                                                
          Co-Chair Stoltze and Representative Kelly were absent from                                                            
          the vote.                                                                                                             
                                                                                                                                
          AT EASE:     3:18:19 PM                                                                                             
                                                                                                                                
          RECONVENE: 3:33:52 PM                                                                                               
                                                                                                                                
          Representative Crawford MOVED to ADOPT Amendment 21:                                                                  
                                                                                                                                
               OFFERED BY:   Representative Crawford                                                                            
                                                                                                                                
               DEPARTMENT:          Revenue                                                                                     
               APPROPRIATION:       Administration and Support                                                                  
         ALLOCATION:          Commissioner's Office                                                                             
                                                                                                                                
               ADD:                 $119,000 General Fund $46.4 (1004)                                                          
                                    I/A Receipts $72.6 (1007)                                                                   
                                                                                                                                
               EXPLANATION:    This reverses  a decrement  made  by the                                                         
               budget  subcommittee, and  restores a  Special Assistant                                                         
               position in the commissioner's office.                                                                           
                                                                                                                                
               The  position   in  question  is  an  essential  liaison                                                         
               between  the Department and the legislature  for oil and                                                         
               gas issues.   He is also a well  regarded researcher and                                                         
               aide    who   helps   maximize   the    efficiency   and                                                         
               effectiveness    of   the   commissioner    and   deputy                                                         
               commissioner in his department.                                                                                  
                                                                                                                                
               The   2010  legislative   session   will  face   several                                                         
               significant  issues and  it would  benefit the  state to                                                         
               have this person continue in his position.                                                                       
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative Crawford explained that the amendment                                                                  
          restores a Special Assistant position in the Department of                                                            
          Revenue.                                                                                                              
                                                                                                                                
Co-Chair Hawker responded that it is an issue of positions,                                                                     
not individuals.  He argued that creating special assistant                                                                     
positions are expensive.                                                                                                        
                                                                                                                                
3:37:59 PM                                                                                                                    
                                                                                                                                
Representative Crawford spoke in support of continuing the                                                                      
position.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Salmon, Crawford, Gara                                                                                                
OPPOSED:  Kelly, Thomas, Austerman, Fairclough, Foster,                                                                         
Joule, Hawker, Stoltze                                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
3:39:28 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment 22:                                                                            
                                                                                                                                
     OFFERED BY:   Representative Crawford                                                                                      
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
                                                                                                                                
          ALLOCATION        ADD             FUNDING SOURCE                                                                    
          Anchorage         $780,300        $690,300     Gen                                                                    
          Campus                            Fund (1004)                                                                       
                                            $90,000     Univ                                                                    
                                            Rcpt (1048)                                                                       
                                                                                                                              
          Tanana            $  63,200       $47,200      Gen                                                                    
          Valley                            Fund (1004)                                                                       
          Campus                                                                                                                
                                            $16,000     Univ                                                                    
                                            Rcpt (1048)                                                                       
                                                                                                                              
          Juneau            $  67,000       $56,300      Gen                                                                    
          Campus                            Fund (1004)                                                                       
                                            $10,700     Univ                                                                    
                                            Rcpt (1048)                                                                       
                                                                                                                              
          College of        $  48,800       $40,800      Gen                                                                    
          Rural   and                       Fund (1004)                                                                       
          Community                                                                                                             
                                            $8,000      Univ                                                                    
          Development                                                                                                           
                                            Rcpt (1048)                                                                       
                                                                                                                              
          Fairbanks         $  112,400      $87,400      Gen                                                                    
          Campus                            Fund (1004)                                                                       
                                            $25,000     Univ                                                                    
                                            Rcpt (1048)                                                                       
                                                                                                                              
                    Totals            $1,071,700       $922,000    Gen                                                          
                                                       Fund (1004)                                                            
                                                       $149,700   Univ                                                          
                                                       Rcpt (1048)                                                            
                                                                                                                                
               EXPLANATION:                                                                                                     
               This  amendment  restores Priority  Program  Enhancement                                                         
               and  Growth Increments for  Health Academic  Programs to                                                         
               the funding level supported by the Governor.                                                                     
               Program   requests  will  support  UA's   next  step  in                                                         
               building strong  health occupation training programs. UA                                                         
               has   accomplished   significant   results   in   health                                                         
               instructional  programs;  however, the  state  needs and                                                         
               opportunities  in this area  are monumental  and require                                                         
         this as well as future state investments.                                                                              
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Crawford  pointed  to  the  crying  need  for                                                         
          adequate  health care  positions and  university  programs to                                                         
          support  them.  The funding  would be spread  across the five                                                         
          campus's in the state.                                                                                                
                                                                                                                                
          Co-Chair  Hawker  explained  that the  subcommittee  included                                                         
          half  the amount  requested by  the university,  but  not the                                                         
          entire  amount.   He  felt that  the  budget was  development                                                         
          occurred during  a time of adequate revenue.   Now there is a                                                         
          multi-billion   dollar  shortfall.    He   stood  behind  the                                                         
          subcommittee's  decision and maintained that  there have been                                                         
          no reductions to university services, but rather increases.                                                           
                                                                                                                                
          Representative  Fairclough   thought  the  increases  to  the                                                         
          university budget totaled about $2.2 million.                                                                         
                                                                                                                                
          Representative   Hawker  agreed  that  it   was  a  continued                                                         
          investment with adjusted increases.                                                                                   
                                                                                                                                
          3:43:40 PM                                                                                                          
                                                                                                                                
          Representative  Gara   maintained  that  this  amendment  was                                                         
          necessary.  The unemployment  rate is rising and there are an                                                         
          inadequate  number  of  health  care  providers.   The  state                                                         
          should be  funding these jobs to help  ward off unemployment.                                                         
          He argued  that the university  should produce jobs  that are                                                         
          needed and are good for the economy.                                                                                  
                                                                                                                                
          Co-Chair  Hawker disagreed  that the  university is  there to                                                         
          produce people to find jobs.                                                                                          
                                                                                                                                
          Representative   Fairclough  reported   about   the  internal                                                         
          reallocation  of funds  the university has  been doing.   She                                                         
          referred to  page 71 of their red book.   There were millions                                                         
          of  general funds  that were  redistributed to  a performance                                                         
funding  pool.   The  University of  Anchorage  redistributed                                                                   
$2.3 million to  program priorities.  One of  the reasons for                                                                   
the subcommittee's  decision to make a reduction  was because                                                                   
of  the university's  ability  to  redistribute  funds.   She                                                                   
recognized  that some  programs  can't be  sustained in  this                                                                   
economy.  She  gave an example of the difficulty  of offering                                                                   
new programs and sustaining them.                                                                                               
                                                                                                                                
Co-Chair  Hawker  appreciated  the  level  of  diligence  the                                                                   
university subcommittee used to make decisions.                                                                                 
                                                                                                                                
3:49:15 PM                                                                                                                    
                                                                                                                                
Representative Crawford urged support for Amendment 22.                                                                         
                                                                                                                                
Co-Chair Hawker MAINTAINED his OBJECTION to the motion.                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Salmon, Crawford, Gara                                                                                                
OPPOSED:  Thomas,   Austerman,  Fairclough,   Foster,  Joule,                                                                   
Kelly, Stoltze, Hawker                                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
3:51:17 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment 23:                                                                            
                                                                                                                                
     OFFERED BY:         Representative Crawford                                                                                
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Tanana Valley Campus                                                                                   
                                                                                                                                
     ADD: $162,900 $98,600 General Funds (1004)                                                                                 
                    $64,300 Univ Rcpt (1048)                                                                                    
                                                                                                                                
     EXPLANATION:                                                                                                               
     Law Enforcement Academy Base Funding                                                                                       
     This  request  provides  base  funding  for  the  Tanana                                                                   
     Valley  Campus  (TVC)  Law  Enforcement  Academy.    The                                                                   
     academy  conducts  basic  police training  for  Interior                                                                   
     Alaska, rural municipalities,  and employers of security                                                                   
     personnel.  The training  consists of  students who  are                                                                   
     both  current recruit  employees  of  a law  enforcement                                                                   
     academy  as  well  as students  who  are  considering  a                                                                   
     career in  law enforcement. All students  in the program                                                                   
     will be  seeking Alaska Police Standards  Certification,                                                                   
     which will  make them eligible  for employment  with any                                                                   
     of the  approximately 21 State Enforcement  Agencies, or                                                                   
     the 43 municipal police departments  within the State of                                                                   
     Alaska.  In addition  to  these agencies,  many  private                                                                   
     security  companies   give  enhanced   consideration  to                                                                   
               hiring  a  candidate  who  possesses  an  Alaska  Police                                                         
               Standards   Council   certificate.   Approval   of   Law                                                         
               Enforcement  as a new "occupational  endorsement" at UAF                                                         
               is  anticipated, recognizing  the  value to  students of                                                         
               completing  this  academy  and  securing  Alaska  Police                                                         
               Standards certification.                                                                                         
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Crawford argued  in support of  the amendment                                                         
          because it provides  funding for the Tanana Valley Campus Law                                                         
          Enforcement  Academy.   All students in  the program  will be                                                         
          seeking  Alaska Police  Standards  Certification, which  will                                                         
          make them  eligible for employment  with any of  the 21 State                                                         
          Enforcement Agencies,  or the 43 municipal police departments                                                         
          within the  state.  He wanted to see Alaskans  trained in law                                                         
          enforcement jobs.                                                                                                     
                                                                                                                                
          Co-Chair  Hawker  reiterated   his  stance  on  the  previous                                                         
          amendment.                                                                                                            
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR:    Crawford, Gara, Salmon                                                                                   
          OPPOSED:     Thomas,  Austerman,  Fairclough,  Joule,  Kelly,                                                         
                       Hawker, Stoltze                                                                                          
                                                                                                                                
          Representative Foster was absent from the vote.                                                                       
                                                                                                                                
          The MOTION FAILED (3-7).                                                                                              
                                                                                                                                
          3:53:52 PM                                                                                                          
                                                                                                                                
          Representative Gara MOVED to ADOPT Amendment 24:                                                                      
                                                                                                                                
               Page 60, following line 16:                                                                                      
               Insert a new bill section to read:                                                                               
                  "*  Sec.  10.    DEPARTMENT  OF EDUCATION  AND  EARLY                                                       
               DEVELOPMENT.   The  sum of  $23,027,000 is  appropriated                                                         
               from  the general  fund to  the Department  of Education                                                         
               and  Early  Development  for  distribution  as  learning                                                         
               opportunity  grants  to each  school  district based  on                                                         
               adjusted  (ADM) as  calculated under  AS 14.17.410(b)(1)                                                         
               for the fiscal year ending June 30, 2010."                                                                       
                                                                                                                                
               Renumber the following bill sections accordingly.                                                                
                                                                                                                                
               Page 76, lines 22 - 23:                                                                                          
                    Delete "20, 22, 25(j), 25(k), 26(e), and 26(f)"                                                             
                    Insert "21, 23, 26(j), 26(k), 27(e), and 27(f)"                                                             
                                                                                                                                
               Page 76, line 30:                                                                                                
               Delete "Sections 26(d) and 28"                                                                                   
          Insert "Sections 27(d) and 29"                                                                                        
                                                                                                                                
     Page 76, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative Gara  explained that the amendment  would fund                                                                   
learning opportunity grants to  each school district based on                                                                   
adjusted ADM.  It would be an  increase in student allocation                                                                   
funding  by  $100.    He noted  that  last  year  a  two-year                                                                   
education  budget and  many reforms were  adopted with  every                                                                   
school  district benefitting.    He argued  that this  year's                                                                   
increase of $100 to the base student  allocation would result                                                                   
in  cuts   to  various   districts,  especially   the  larger                                                                   
districts.   He  said he  introduced  the bill  to begin  the                                                                   
discussion about  equity in funding student  allocations.  He                                                                   
stated  his  intent  to  withdraw  the  amendment  after  the                                                                   
discussion.                                                                                                                     
                                                                                                                                
Representative  Gara emphasized  the need  for a "hold  even"                                                                   
budget for school districts.                                                                                                    
                                                                                                                                
Co-Chair Hawker addressed last  year's student funding, which                                                                   
was a three-to-five-year  commitment.  It was  not based only                                                                   
on base  student allocation,  but also  on the regional  cost                                                                   
differential factor,  and special needs student  funding.  He                                                                   
did  not agree  that  the  state  was decreasing  funding  to                                                                   
education.   He maintained that  the forward funding  and new                                                                   
district cost  factors, plus intensive needs  student funding                                                                   
would adequately  fund schools.   He  shared that the  budget                                                                   
reflects  the results  of the  bi-partisan education  funding                                                                   
task force.                                                                                                                     
                                                                                                                                
4:00:26 PM                                                                                                                    
                                                                                                                                
Representative Gara spoke to the phase-in of the Institute                                                                      
of Social and Economic Research (ISER) study, which would                                                                       
help rural school districts.  He maintained that the                                                                            
majority of schools in the state  would have to cut back.  He                                                                   
requested more discussion on the issue.                                                                                         
                                                                                                                                
Co-Chair Hawker noted that the  special needs factor provides                                                                   
substantial  funding  to  urban  schools and  is  the  single                                                                   
greatest  increment   to  the  Anchorage   School  District's                                                                   
budget.   He emphasized the  need to consider  all components                                                                   
of education funding.                                                                                                           
                                                                                                                                
Representative Gara added that  there was also $20 million in                                                                   
last  year's budget  for a  fuel subsidy  for schools,  which                                                                   
will not be in this year's budget.                                                                                              
                                                                                                                                
Representative Gara WITHDREW Amendment 24.                                                                                      
                                                                                                                                
          4:03:06 PM                                                                                                          
                                                                                                                                
          Representative Gara MOVED to ADOPT Amendment 25:                                                                      
                                                                                                                                
               OFFERED BY:  Representative Gara                                                                                 
                                                                                                                                
               DEPARTMENT:          Education and Early Development                                                             
               APPROPRIATION:       Teaching and Learning Support                                                               
               ALLOCATION:          Early Learning Coordination                                                                 
                                                                                                                                
               ADD: $1,200,000,  1004  Gen Fund,  (Increase Head  Start                                                         
               Grant program Funding).                                                                                          
                                                                                                                                
               EXPLANATION:    The amendment  is  intended to  increase                                                         
               the current  Head Start Grant Program  Funding increment                                                         
               from $800,000.00  to $2,000,000.  Head Start anticipates                                                         
               with a  funding increase to $2,000,000  they could serve                                                         
               200  more children.    Head Start  estimates that  7,727                                                         
               eligible children  do not participate in the program and                                                         
               there is currently a 900-1,000 child waitlist.                                                                   
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Gara called the amendment  a stopgap measure.                                                         
          It provides an extra  $1.2 million to early education in Head                                                         
          Start.  There is a waiting  list of 900 children for the Head                                                         
          Start  program.   The  Head Start  program  has requested  $2                                                         
          million to  cut the waiting list to 700.   The current budget                                                         
          would  cut  the  waiting  list  by  only  80  students.    He                                                         
          maintained  that the one  thing the  state can do  to promote                                                         
          better  education  is to  think "outside  the  box" and  fund                                                         
          early education.                                                                                                      
                                                                                                                                
          Co-Chair  Hawker noted  that the  subcommittee  for education                                                         
          funded  the  administration's  requests  100  percent.    The                                                         
          administration  brought  forward the  $800,000 increment  for                                                         
          Head Start, as well as others.                                                                                        
                                                                                                                                
          Representative Fairclough  referred to the $800,000 increment                                                         
          for Head  Start and reported that the  subcommittee looked at                                                         
          methods  of expanding  the program.   The  current  cash flow                                                         
          shortage  was a factor in  making the budget  increment.  She                                                         
          mentioned  that  Representative  Gara's bill  was  considered                                                         
          during the development of the bill.                                                                                   
                                                                                                                                
          Co-Chair  Hawker commented  on potential  stimulus  money for                                                         
          education.                                                                                                            
                                                                                                                                
          4:07:02 PM                                                                                                          
                                                                                                                                
          Representative  Gara pointed  out that  discussions  on early                                                         
          education have been  productive and positive.  He agreed that                                                         
          the question is where the money will come from.                                                                       
                                                                                                                                
Representative Kelly  observed that he was not  excited about                                                                   
early education because of the  poor job public education was                                                                   
doing.   He thought  that parents  should be parenting  three                                                                   
and four year olds, rather than schools.                                                                                        
                                                                                                                                
Co-Chair  Hawker agreed  that  it was  also a  socio-economic                                                                   
consideration.                                                                                                                  
                                                                                                                                
Representative Fairclough  reported that Commissioner  Ledoux                                                                   
explained  that   the  program   is  not  meant   to  replace                                                                   
parenting.   She stressed  that the  $2 million budgeted  for                                                                   
the pilot program would help parents help their children.                                                                       
                                                                                                                                
Representative Kelly maintained his position.                                                                                   
                                                                                                                                
4:10:25 PM                                                                                                                    
                                                                                                                                
Representative Gara  responded to the idea that  parents need                                                                   
to be involved.   He stated  that there were cheaper  ways to                                                                   
provide  early  education  than   through  Head  Start.    He                                                                   
maintained that early education  with the parents-as-teachers                                                                   
model especially works.                                                                                                         
                                                                                                                                
Representative Gara WITHDREW Amendment 25.                                                                                      
                                                                                                                                
Representative   Kelly   talked   about  the   Dolly   Parton                                                                   
Imagination Library  program.  He agreed that  there are less                                                                   
expensive ways to provide early education.                                                                                      
                                                                                                                                
4:12:35 PM                                                                                                                    
                                                                                                                                
Representative Joule  commented on his efforts  to keep early                                                                   
education in the  department and in the budget.   He reminded                                                                   
the Committee that a number of  items do not get discussed in                                                                   
committee because they were addressed in subcommittee.                                                                          
                                                                                                                                
Representative  Crawford  noted that  often  parents are  not                                                                   
able to provide adequate early  education.  He spoke in favor                                                                   
of the amendment and any efforts made for early education.                                                                      
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT New Amendment 26:                                                                            
                                                                                                                                
     OFFERED BY:  Representatives Gara and Hawker                                                                               
                                                                                                                                
     DEPARTMENT:         Health and Social Services                                                                             
     APPROPRIATION:      Office of Children's Services                                                                          
     ALLOCATION:         Office of Children's Services                                                                          
                                                                                                                                
     ADD: $30,000, general funds, 1004                                                                                          
                                                                                                                                
               EXPLANATION:  Produce  a  television  and  radio  Public                                                         
               Service  Announcement (PSA),  highlighting the  need for                                                         
               Alaska  foster homes in  the state, and  urging Alaskans                                                         
               to  learn  more about  becoming  a foster  parent.   The                                                         
               PSA's would  air on television and radio  via the Alaska                                                         
               Broadcaster's  Association's  Non-commercial  Sustaining                                                         
               Announcement  Program (NCSA).   Through  this "Community                                                         
               Voice"   program  the  PSA's  would   be  placed  on  21                                                         
               television  stations and  60 radio  stations  across the                                                         
               state  for  approximately  a month  and  a  half at  two                                                         
               different times  during the year.  The PSA would also be                                                         
               placed  on APRN for four  weeks (two weeks  at two times                                                         
               during  the  year)  because  of  its  reach  into  rural                                                         
               Alaska.     The   $30,000  includes   visual  scripting,                                                         
               direction,  talent   coordination,  on  location  shoot,                                                         
               pre/post  production work and dub to  stations.  The ads                                                         
               would  reach  approximately  80,000  Alaskans,  and  the                                                         
               response  rate is expected to be  about 3%--that's 2,400                                                         
               people   who  will  seek  out  more   information  about                                                         
               becoming  foster parents.   The Department shall  in its                                                         
               discretion, utilize  these funds at radio and television                                                         
               outlets that produce the most effective outreach.                                                                
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative Gara  spoke of a shortage of foster parents in                                                         
          Alaska.   He believed  that more  people ought to  hear about                                                         
          the  need  for  more  foster  parents.    He  suggested  that                                                         
          producing  television and radio  advertising would  assist in                                                         
          urging  Alaskans  to  learn  more  about  becoming  a  foster                                                         
          parent.                                                                                                               
                                                                                                                                
          Co-Chair Hawker  added that this is a one-time  funding.  Old                                                         
          Amendment 26 targeted only rural foster homes.                                                                        
                                                                                                                                
          4:18:05 PM                                                                                                          
                                                                                                                                
          Vice-Chair  Thomas shared a story  about how difficult  it is                                                         
          to  fill  out  the   foster  parent  application.    Adoption                                                         
          paperwork is additionally cumbersome.                                                                                 
                                                                                                                                
          Co-Chair  Hawker suggested that  the department was  aware of                                                         
          that problem.                                                                                                         
                                                                                                                                
          Co-Chair  Hawker  WITHDREW  his  OBJECTION.  There  being  NO                                                         
          OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
          4:19:25 PM                                                                                                          
                                                                                                                                
          Representative Gara MOVED to ADOPT Amendment 27:                                                                      
                                                                                                                                
               OFFERED BY:  Representatives Gara and Hawker                                                                     
                                                                                                                                
     DEPARTMENT:         Department of Health and Social                                                                        
     Services                                                                                                                   
     APPROPRIATION:      Behavioral Health, Health Care                                                                         
               Services, Office of Children's                                                                                   
                         Services, Senior Disability                                                                            
                         Services                                                                                               
     ALLOCATION:         Denali KidCare                                                                                         
                                                                                                                                
     ADD: $25,000 General Funds, 1004.                                                                                          
                                                                                                                                
     EXPLANATION:   Provide    $25,000    in   funding    for                                                                   
     television and/or radio advertising for Denali KidCare.                                                                    
     All of the advertisements would occur in two non-                                                                          
     consecutive calendar months.                                                                                               
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative  Gara  explained   that  the  amendment  would                                                                   
provide $25,000  for funding  for television advertising  for                                                                   
Denali  KidCare.   He spoke of  this method  as an  effective                                                                   
outreach.                                                                                                                       
                                                                                                                                
Co-Chair  Hawker related  changes  in the  federal and  State                                                                   
Children's Health  Insurance Program  (SCHIP) and  the merits                                                                   
of public outreach.                                                                                                             
                                                                                                                                
4:21:16 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough offered  a  friendly amendment  to                                                                   
include   "and/or   radio"   after    "television"   in   the                                                                   
explanation.   She spoke  of a concern  about the  expense of                                                                   
television.                                                                                                                     
                                                                                                                                
Representative  Kelly  said he  has  a problem  with  raising                                                                   
Denali KidCare to  200 percent of poverty level.   He was not                                                                   
in support of Denali KidCare.                                                                                                   
                                                                                                                                
Co-Chair Hawker noted it was for one-time funding.                                                                              
                                                                                                                                
Co-Chair  Hawker  WITHDREW his  OBJECTION.    There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative  Gara   added  that  he  wished   to  see  the                                                                   
advertisements produced "in house" by the department.                                                                           
                                                                                                                                
4:23:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hawker noted  that Legislative  Finance terms  one-                                                                   
time increments as "INC. OTI".                                                                                                  
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 28:                                                                                
                                                                                                                                
     OFFERED BY:  Representative Gara                                                                                           
                                                                                                                                
               DEPARTMENT:          Department of Health and Social                                                             
                                    Services                                                                                    
               APPROPRIATION:       Behavioral Health                                                                           
               ALLOCATION:          Behavioral Health Grants                                                                    
                                                                                                                                
               ADD: $750,000 General Fund/Mental Health (1037)                                                                  
                                                                                                                                
               EXPLANATION:   The amendment is intended to restore the                                                          
               Governor's proposed increment for grants to Community                                                            
               Based Substance Abuse Services.                                                                                  
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Gara, in referring  to both Amendment  28 and                                                         
          Amendment  29,  spoke of  the  administration's $1.5  million                                                         
          increment   for  Substance   Abuse   and  Behavioral   Health                                                         
          Services.  For a number  of years there have been cuts in the                                                         
          Substance Abuse  programs.  Beginning two  years ago, some of                                                         
          those  funds were  added  back.   Last year  he requested  an                                                         
          estimate  from Legislative Legal  regarding the  total amount                                                         
          cut,  which was estimated  at about  50 percent.   He pointed                                                         
          out  that there  were waiting  lists for treatment  programs.                                                         
          He expected further  discussions on treatment programs during                                                         
          the budget process.                                                                                                   
                                                                                                                                
          Representative Gara WITHDREW Amendment 28.                                                                            
                                                                                                                                
          Co-Chair  Hawker commented on  whether there really  had been                                                         
          reductions   or  increases  in  these  programs.     In  this                                                         
          particular component,  between FY 07 and FY 10 there has been                                                         
          a 158 percent funding  increase for a total of $39.1 million.                                                         
          Regarding  the all Behavior  Health Grants, there  has been a                                                         
          150 percent increase to $75.6 million.                                                                                
                                                                                                                                
          AT-EASE:     4:28:27 PM                                                                                             
                                                                                                                                
          RECONVENE: 4:30:42 PM                                                                                               
                                                                                                                                
          Co-Chair  Hawker  thought the  conversation  on these  budget                                                         
    items would continue throughout the budget process.                                                                         
                                                                                                                                
          4:32:03 PM                                                                                                          
                                                                                                                                
          Representative Gara WITHDREW Amendment 29.                                                                            
                                                                                                                                
          Representative Gara MOVED to ADOPT Amendment 30:                                                                      
                                                                                                                                
               OFFERED BY:  Representative Gara                                                                                 
                                                                                                                                
               DEPARTMENT:          Department of Public Safety                                                                 
               APPROPRIATION:       Council on Domestic Violence and                                                            
                                    Sexual Assault                                                                              
               ALLOCATIONS:         Council on Domestic Violence and                                                            
                                    Sexual Assault                                                                              
                                                                                                                                
     ADD:  $1,381.9, General Funds, 1004.                                                                                       
                                                                                                                                
     EXPLANATION:   The amendment is intended to restore the                                                                    
     Governor's proposed increment for the Council on                                                                           
     Domestic Violence and Sexual Assault.                                                                                      
                                                                                                                                
Co-Chair Hawker OBJECTED.                                                                                                       
                                                                                                                                
Representative Gara  related that he was trying  to determine                                                                   
if the  amount passed  was adequate  to fund  the Council  on                                                                   
Domestic Violence  and Sexual  Assault.  The amendment  would                                                                   
restore the governor's proposed increment.                                                                                      
                                                                                                                                
Co-Chair Hawker  pointed out the  state of Alaska is  last in                                                                   
the category  of private  benevolency.   The state  is almost                                                                   
entirely  dependent   on  the  state  budget   to  fund  such                                                                   
organizations.  He  stated that he is looking  for long-term,                                                                   
sustainable funding for benevolent programs.                                                                                    
                                                                                                                                
Representative Joule  added that the  funding is for  a topic                                                                   
that is difficult to talk about.   He suggested continuing to                                                                   
talk about  it.  He stressed that  there is a need  to change                                                                   
the behavior of  those who commit such acts of  violence.  He                                                                   
related that he would continue to work on the problem.                                                                          
                                                                                                                                
Co-Chair  Hawker recalled  public  testimony from  Dillingham                                                                   
that addressed domestic violence  and the need for a shelter.                                                                   
He  agreed  that   examining  the  causes  and   focusing  on                                                                   
prevention was important.                                                                                                       
                                                                                                                                
Representative  Foster asked about  the Alaska Women's  Lobby                                                                   
statement of  support.  He  questioned the statistics  of the                                                                   
handout that  said that  one in four  Alaskan women  would be                                                                   
sexually assaulted and two would be raped.                                                                                      
                                                                                                                                
Co-Chair   Hawker    appreciated   Representative    Foster's                                                                   
observation.                                                                                                                    
                                                                                                                                
4:38:47 PM                                                                                                                    
                                                                                                                                
Representative Fairclough  thought that wasn't  the intent of                                                                   
the  statement.     Representative   Foster  questioned   the                                                                   
validity of the handout and termed it inflammatory.                                                                             
                                                                                                                                
Co-Chair  Hawker  commented  that   it  was  poorly  written.                                                                   
Representative  Foster maintained  that  half of  the men  in                                                                   
Alaska were not rapists.                                                                                                        
                                                                                                                                
Representative  Fairclough  appreciated  the concern  of  the                                                                   
Committee.  She reported that  she has tried hard in her work                                                                   
with women's  issues not  to overstate  issues.  She  related                                                                   
that there  are thousands  of men  who step  up to make  sure                                                                   
that Alaska  women and  children are safe.   She  pointed out                                                                   
          that boys  and men are also raped and less  likely to report.                                                         
          She  added that  domestic violence  and  sexual assault  is a                                                         
          cross-cultural  problem  and it  is a  disservice to  inflate                                                         
          numbers.    Words  are   very  important  and  are  meant  to                                                         
          highlight  a serious problem.   Domestic violence  and sexual                                                         
          assault  are societal issues  and many people  are passionate                                                         
          about them; however, the right words need to be used.                                                                 
                                                                                                                                
          Representative Gara WITHDREW Amendment 30.                                                                            
                                                                                                                                
          4:44:11 PM                                                                                                          
                                                                                                                                
          Representative Gara MOVED to ADOPT Amendment 31:                                                                      
                                                                                                                                
               OFFERED BY:  Representative Gara                                                                                 
                                                                                                                                
         DEPARTMENT:          University of Alaska                                                                              
         APPROPRIATION:       University of Alaska                                                                              
               ALLOCATIONS:         Anchorage Campus, Fairbanks Campus,                                                         
                                    Interior-Aleutians Campus, Juneau                                                           
                                    Campus                                                                                      
                                                                                                                                
               ADD: $1,030.0  TOTAL ($800.0 General  Fund, 1004; $230.0                                                         
                    University Receipts, 1048)                                                                                  
                                                                                                                                
                    Anchorage Campus: TOTAL $364.3--$304.3 General                                                              
                    Funds (1004), $60.0 University Receipts (1048).                                                             
                                                                                                                                
                    Fairbanks Campus: TOTAL $365.0--$225.0 General                                                              
                    Funds (1004), $140.0 University Receipts (1048).                                                            
                                                                                                                                
                    Interior-Aleutians Campus: TOTAL $100.7--$95.7                                                              
                    General Funds (1004), $5.0 University Receipts                                                              
                    (1048).                                                                                                     
                                                                                                                                
                    Juneau Campus: TOTAL $200.0--$175.0 General Funds                                                           
                    (1004), $25.0 University Receipts (1048).                                                                   
                                                                                                                                
               EXPLANATION:    The amendment is intended to restore the                                                         
               Governor's  proposed increment  for the  University K-12                                                         
               outreach.                                                                                                        
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative  Gara   explained  that  the  amendment  would                                                         
          restore   the   governor's   proposed   increment   for   the                                                         
          university's K-12  outreach.  He spoke of  the ability of the                                                         
          university  to ready  students  for life  after high  school.                                                         
          The request  is for $1  million.  He suggested  the Committee                                                         
          look at the usefulness of the request.                                                                                
                                                                                                                                
          Co-Chair  Hawker  related that  the  education and  workforce                                                         
          development  budgets  were  combined under  one  subcommittee                                                         
          headed   by   Representative  Fairclough.      Representative                                                         
Fairclough pointed out that she  would have liked to do more,                                                                   
but the job was difficult due to the revenue situation.                                                                         
                                                                                                                                
4:48:44 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough reported  on her  thirty years  of                                                                   
support for education in the state.   She maintained that due                                                                   
to budget  constraints, issues  had to  be prioritized.   She                                                                   
explained that the  K-12 Outreach would be a  new program and                                                                   
it was evaluated  on sustainability.  She discussed  the role                                                                   
of the university  as it relates to curriculum  for teachers.                                                                   
It  became apparent  that  the  math and  science  curriculum                                                                   
needed  retooling.    As  requested  by  the  university,  an                                                                   
increment for $600,000  was approved to hire  a specialist to                                                                   
examine curriculum  in those areas,  as well as in  the areas                                                                   
of  art,  technology,  and social  studies.    She  requested                                                                   
information   from  the   university   about  resources   for                                                                   
teachers.     The  subcommittee  did  provide   $600,000  for                                                                   
outreach  to  increase  students'  abilities  to  perform  in                                                                   
college.                                                                                                                        
                                                                                                                                
Co-Chair  Hawker  added  that   the  area  of  workforce  and                                                                   
development was being looked at holistically.                                                                                   
                                                                                                                                
4:53:06 PM                                                                                                                    
                                                                                                                                
Representative Gara WITHDREW Amendment 31.                                                                                      
                                                                                                                                
4:53:32 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 32:                                                                                
                                                                                                                                
     OFFERED BY:  Representative Gara                                                                                           
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         System Reductions/Additions                                                                            
                                                                                                                                
     ADD:                $2,500,000                                                                                             
                                                                                                                                
     FUNDING SOURCE:     General Funds 1004                                                                                     
                                                                                                                                
     EXPLANATION:                                                                                                               
     Need Based Grants                                                                                                          
                                                                                                                                
     To  minimize  any  added   administrative  burdens,  the                                                                   
     intent  is to  administer these  funds through  existing                                                                   
     mechanisms  for  the university's  existing,  internally                                                                   
     funded,  needs-based grant  aid program,  the UA  Grant.                                                                   
     This  program reserves  one percent  of tuition  revenue                                                                   
     for needs-based financial aid awards.                                                                                      
                                                                                                                                
     General Fund  revenue of $2.5  million will be  added to                                                                   
     the  University   of  Alaska's  System   Reductions  and                                                                   
               Additions allocation.  This funding will be distributed                                                          
               to campuses in a manner consistent with the UA Grant                                                             
               program for financial aid awards.                                                                                
                                                                                                                                
          Co-Chair Hawker OBJECTED.                                                                                             
                                                                                                                                
          Representative   Gara  recalled  previous   support  for  the                                                         
          university's  financial  aid  program,  which  is the  second                                                         
          lowest per  capita of any other state.   Alaska has the worst                                                         
          rate of attendance for  college.  One of the reasons students                                                         
          don't  go to college  or get job training  is due to  lack of                                                         
          money.  Tuition  has gone up 10 percent a  year over the last                                                         
          four  years.  The proposed  amendment replicates  last year's                                                         
          funding.   It adds $2,500,000 for aid to  students who cannot                                                         
          afford a  college education.  That amount  is about one-third                                                         
          of what  is needed.  He  reported that if this  does not pass                                                         
          there  is some  money  at the  university and  in the  Alaska                                                         
          Commission  on Postsecondary Education (ACPE)  for low income                                                         
          grants.    The  amendment  is  being  requested  through  the                                                         
          university because ACPE has a statutory cap.                                                                          
                                                                                                                                
          Co-Chair  Hawker  recalled  seeing  the same  amendment  last                                                         
          year.   He  related  that  it did  not make  the  cut in  the                                                         
          university's  requests.  Until it becomes  a key priority, it                                                         
    belongs in the conversation, but not in the budget.                                                                         
                                                                                                                                
          4:58:54 PM                                                                                                          
                                                                                                                                
          Representative Joule  observed that he wouldn't be supporting                                                         
          the amendment.  He argued  that just because something is not                                                         
          on the university's  priority list is not  a valid reason for                                                         
          not   supporting  the  request.     The  legislature   is  an                                                         
          independent body.                                                                                                     
                                                                                                                                
          Representative  Kelly mentioned  that  the students  had this                                                         
          item  high on  their list.   He  suggested loosening  payback                                                         
          requirements  that  focused  on the  student  applicant.   He                                                         
          thought   there  could  be   some  permanent   fund  dividend                                                         
          involvement for collateral.                                                                                           
                                                                                                                                
          5:02:04 PM                                                                                                          
                                                                                                                                
          Representative  Gara agreed  with Representative  Joule.   He                                                         
          pointed out that the  university has focused on financial aid                                                         
          reform.    He  questioned  the  omission  in  the  governor's                                                         
          budget.  He called the amendment a stop gap.                                                                          
                                                                                                                                
          Co-Chair Hawker MAINTAINED his OBJECTION.                                                                             
                                                                                                                                
          A roll call vote was taken on the motion.                                                                             
                                                                                                                                
          IN FAVOR: Crawford, Gara, Salmon                                                                                      
          OPPOSED:   Austerman,  Fairclough,   Foster,   Joule,  Kelly,                                                         
          Thomas, Hawker, Stoltze                                                                                               
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
HB 81 and HB 83 were heard and HELD in Committee for further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB81 Amendments 030909.pdf HFIN 3/9/2009 1:30:00 PM
HB 81
Amendment action 030909 HB81.pdf HFIN 3/9/2009 1:30:00 PM
HB 81
New Amendment 26.doc HFIN 3/9/2009 1:30:00 PM
HB 81