Legislature(2017 - 2018)HOUSE FINANCE 519

03/08/2017 08:30 AM FINANCE

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Audio Topic
08:36:36 AM Start
08:37:58 AM HB57 || HB59
08:38:51 AM Amendments: All Remaining Amendments
10:22:23 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Amendments
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 57                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 57                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
8:37:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Seaton noted he saw a significant amount of red                                                                        
around the table and acknowledged that it was International                                                                     
Women's Day.                                                                                                                    
                                                                                                                                
^AMENDMENTS: ALL REMAINING AMENDMENTS                                                                                         
                                                                                                                                
8:38:51 AM                                                                                                                    
                                                                                                                                
Representative Wilson WITHDREW Amendment H CED 14 (copy on                                                                      
file).                                                                                                                          
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H CED  16                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Gasline Development Corporation                                                                                     
     Alaska Gasline Development Corporation                                                                                     
     H CED  16 - Deletes  all positions and funding  for the                                                                    
     Alaska Gasline Development Corporation                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  deletes all  positions and  funding for                                                                    
     this  allocation   from  the  FY  18   budget  request.                                                                    
     Extensive funding  is available  to the  Corporation by                                                                    
     way of  Capital funds.  The In-State Gas  Pipeline Fund                                                                    
     was  not created  to fund  AKLNG, therefore,  should be                                                                    
     either  reserved  for  its   original  purpose,  or  be                                                                    
     considered  unrestricted   general  funds.  Projections                                                                    
     indicate that AGDC will lapse                                                                                              
     $5,200,000 in FY 2017.                                                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative Wilson read the amendment (See above).                                                                           
                                                                                                                                
8:40:09 AM                                                                                                                    
                                                                                                                                
Representative Guttenberg  thought the in-state  gasline was                                                                    
a part  of Alaska's  future. The Alaska  Gasline Development                                                                    
Corporation  (AGDC) continued  to work  on the  right-of-way                                                                    
for  the  instate  gasline  as  a  back-up  for  the  larger                                                                    
diameter pipeline. The work needed  to continue whether on a                                                                    
small  diameter or  large diameter  pipeline. He  thought it                                                                    
was  short-sighted  to pull  funding  from  the project.  He                                                                    
believed the  project was much  closer to  being economical.                                                                    
He  suggested if  the project  was  currently economical  it                                                                    
would have  already been built.  He spoke about  the Federal                                                                    
Energy  Regulatory  Commission  (FERC) application  and  the                                                                    
uncertainty of the  project. He did not  believe pulling the                                                                    
authorization  back would  accomplish anything.  He referred                                                                    
to  a letter  from  the  governor to  the  president of  the                                                                    
United  States containing  suggestions on  what the  federal                                                                    
government could  do to  help with  the project  in bringing                                                                    
additional  infrastructure. He  thought  there were  several                                                                    
opportunities on  the horizon  for economic  development and                                                                    
noted that the project was at a critical point.                                                                                 
                                                                                                                                
Representative  Thompson  understood  the need  to  look  at                                                                    
additional  revenue   options.  He   did  not   support  the                                                                    
direction of the amendment. He  spoke of monumental meetings                                                                    
in Girdwood and  in Kenai the prior  weekend. Finance people                                                                    
and buyers from around the  world participated. He noted the                                                                    
right-of-way nearing permitting through  Denali Park. He did                                                                    
not want to  see the project stopped at  present. He thought                                                                    
the  project was  important to  Alaska's future.  He opposed                                                                    
de-funding AGDC and would not be supporting the amendment.                                                                      
                                                                                                                                
8:45:22 AM                                                                                                                    
                                                                                                                                
Representative  Pruitt  favored  the amendment,  as  he  had                                                                    
offered  a similar  amendment previously.  He  spoke to  the                                                                    
fact that  initially the project was  going to be a  part of                                                                    
the  operations of  the state.  He relayed  that when  first                                                                    
approved   by  the   legislature,  the   project  was   very                                                                    
different. The  legislature had approved something  that had                                                                    
substantially morphed. Originally, the  state was a partner.                                                                    
Presently,  the  state  was  the sole  owner  and  would  be                                                                    
assuming all  the risk associated  with the project.  He did                                                                    
not believe the project could  be viewed the same or treated                                                                    
the same. Even  though the state currently  had $100 million                                                                    
to  invest in  the project,  he  wondered if  the state  was                                                                    
willing  to spend  $400  million  at the  time  of the  feed                                                                    
decision. He  suggested that the legislature  scale back and                                                                    
rethink  the  project.  He thought  the  project  should  be                                                                    
discussed within  the confines of the  capital budget rather                                                                    
than the  operating budget.  He mentioned  that in  a recent                                                                    
slide  show AGDC  was  referred  to Alaska's  infrastructure                                                                    
project.  He  thought that  if  AGDC  was an  infrastructure                                                                    
project, it  should be  competing with  other infrastructure                                                                    
projects. The  governor asked the president  to consider the                                                                    
project shovel-ready. He did not  see the project as shovel-                                                                    
ready as  some of  the other economic  development projects.                                                                    
He mentioned  several other projects  by name.  He concluded                                                                    
that the AGDC project was  a capital project. He spoke about                                                                    
conversations he  had had  with constituents  going door-to-                                                                    
door. Many  asked why  the state  was paying  one individual                                                                    
$750,000 and  about a conflict  of interest that  the person                                                                    
might have  in hiring a  family member  to run an  office in                                                                    
Houston,  Texas.  He  thought  the  legislature  should  ask                                                                    
itself whether  it was willing  to take a dollar  from every                                                                    
person's PFD to  pay for one person. He  thought the project                                                                    
had  been  allowed  to  move   forward  without  checks  and                                                                    
balances.  He  supported  removing   the  project  from  the                                                                    
operating budget.  He also thought  it was important  to try                                                                    
to answer the  question as to whether the  state was willing                                                                    
to move  forward and commit  to the project.  Otherwise, the                                                                    
state would lose $20 million.                                                                                                   
                                                                                                                                
8:49:38 AM                                                                                                                    
                                                                                                                                
Representative Wilson was not  defunding the project, rather                                                                    
she believed  it was a  capital project. She  furthered that                                                                    
it  was important  to be  clear what  project the  state was                                                                    
funding, as there was confusion.                                                                                                
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Pruitt, Tilton                                                                                                
OPPOSED:  Gara,   Grenn,    Guttenberg,   Kawasaki,   Ortiz,                                                                    
Thompson, Seaton                                                                                                                
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (3/7). Amendment H CED 16 FAILED.                                                                             
                                                                                                                                
Representative Pruitt  WITHDREW Amendment H CED  17 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Representative  Pruitt  asked to  go  back  to the  language                                                                    
packet on page 5 related to the particular project.                                                                             
                                                                                                                                
Representative Pruitt  MOVED to AMEND  Amendment L H  SAP 23                                                                    
(copy on file).                                                                                                                 
                                                                                                                                
Representative Pruitt began to read the amendment.                                                                              
                                                                                                                                
Co-Chair  Seaton  interjected  that the  amendment  was  too                                                                    
technical to address presently.                                                                                                 
                                                                                                                                
Representative  Pruitt  WITHDREW   the  amendment  to  AMEND                                                                    
Amendment L H SAP 23.                                                                                                           
                                                                                                                                
8:54:16 AM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H CED  19                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Energy Authority                                                                                                    
     Alaska Energy Authority Rural Energy Assistance                                                                            
     H CED 19 - Replace UGF with PCE Endow Funds for Rural                                                                      
     Energy Assistance                                                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This   amendment   utilizes   PCE  funds   instead   of                                                                    
     Unrestricted  General  Funds  in this  allocation.  The                                                                    
     projects  in this  allocation  are  mostly utilized  in                                                                    
     areas  receiving  PCE  in  exchange  for  lower  energy                                                                    
     costs.                                                                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson  read the  amendment (see  above). She                                                                    
noted  that  in looking  at  the  mission of  Alaska  Energy                                                                    
Authority  (AEA),  most  of  the   projects  were  meant  to                                                                    
displace  the use  of diesel  fuel through  sources such  as                                                                    
solar, wind, or biofuels. The  idea was that, at some point,                                                                    
communities   could  be   removed   from   the  Power   Cost                                                                    
Equalization  (PCE)  program, having  substantially  reduced                                                                    
their  energy costs.  The Power  Cost Equalization  Fund was                                                                    
doing well  having a balance  of about $1 billion.  The fund                                                                    
was able to  take care of the PCE costs  of communities. She                                                                    
believed  that  the   point  of  having  the   fund  was  to                                                                    
ultimately get low-cost energy to  areas that were currently                                                                    
suffering. The  state had been  using general  fund dollars,                                                                    
but she  thought using PCE  funds would  be a proper  use of                                                                    
the fund.                                                                                                                       
                                                                                                                                
8:56:02 AM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  mentioned  that  the  governor's                                                                    
budget  included  a  fund change  ensuring  that  all  costs                                                                    
related to managing  the PCE program were paid  for with PCE                                                                    
funds. The analysis from the  PCE program revealed that some                                                                    
of PCE's administrative costs had  historically been paid by                                                                    
UGF authority  and a rural  energy assistance  component. He                                                                    
noted  that  in  the  2018   budget  the  governor  replaced                                                                    
$381,000 UGF with $381,000 PCE  funds. The current amendment                                                                    
spent PCE funds on things  other than the PCE program, which                                                                    
was not the purpose of the program.                                                                                             
                                                                                                                                
Representative   Wilson   argued   that  the   program   was                                                                    
ultimately  for lower  cost energy.  She  reasoned that  the                                                                    
state should be investing in  projects that would reduce the                                                                    
cost  of electricity.  The Power  Cost Equalization  program                                                                    
was not supposed  to go on indefinitely. It  was supposed to                                                                    
help  offset   electricity  costs  as  well   as  help  with                                                                    
investments of  projects that would lower  energy costs. She                                                                    
added  that she  thought  some  communities were  devastated                                                                    
because of  basic energy costs. She  thought that technology                                                                    
was key in lowering energy costs.                                                                                               
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara, Green, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H CED 19 FAILED.                                                                             
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H CED  20                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Seafood Marketing Institute                                                                                         
     Alaska Seafood Marketing Institute                                                                                         
     H  CED  20 -  Eliminates  all  General Funds  from  the                                                                    
     Seafood Marketing (services line)                                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  deletes all General Fund  Match in this                                                                    
     allocation  from  the  FY 18  budget  request.  Seafood                                                                    
     Marketing   Services   funds  are   available   through                                                                    
     alternative sources such  as industry participants. The                                                                    
     intent of  the Legislature  in FY  17 was  to eliminate                                                                    
     the need  for any general  fund dollars to be  used for                                                                    
     seafood marketing.  Over $20,000,000 is  available from                                                                    
     a combination of industry fees and federal funds.                                                                          
                                                                                                                                
Vice-Chair Gara OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative  Wilson  read  the amendment.  She  found  it                                                                    
interesting  that  the  Alaska Seafood  Marketing  Institute                                                                    
(ASMI)  was  still  in  the   operating  budget,  while  the                                                                    
legislature had moved tourism to the capital budget.                                                                            
                                                                                                                                
9:00:17 AM                                                                                                                    
                                                                                                                                
Representative  Guttenberg had  looked into  the history  of                                                                    
ASMI  funding. In  FY 17,  there was  legislative intent  to                                                                    
remove UGF  for AMSI. He  conveyed that the  amendment would                                                                    
take effect  in FY  19. The  amendment accelerated  one year                                                                    
without replacing the funds for  it, pulling it up short. He                                                                    
reported the funds  would be removed the  following year. He                                                                    
suggested in  the following  year ASMI  would not  appear in                                                                    
the budget as a UGF item.                                                                                                       
                                                                                                                                
Representative Pruitt agreed with  the amendment. He thought                                                                    
that tourism and ASMI should  be treated the same. He agreed                                                                    
with a step-down approach. However,  he believed keeping the                                                                    
monies in  the operating budget was  not a good idea,  as it                                                                    
sent the  message that  it was part  of the  state's overall                                                                    
operating  expenses.   It  was   perceived  as   a  one-time                                                                    
increment. He supported the amendment.                                                                                          
                                                                                                                                
9:03:20 AM                                                                                                                    
                                                                                                                                
Representative Wilson thought it was  good to hear there was                                                                    
a plan. She  agreed that if tourism was being  placed in the                                                                    
capital  budget,  she thought  ASMI  should  not be  in  the                                                                    
operating budget.                                                                                                               
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H CED 20 FAILED.                                                                             
                                                                                                                                
9:04:21 AM                                                                                                                    
                                                                                                                                
Representative  Tilton MOVED  to  ADOPT Amendment  H CED  21                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Seafood Marketing Institute                                                                                         
     Alaska Seafood Marketing Institute                                                                                         
     H CED 21 - Elimination of Seattle based Marketing and                                                                      
     Sustainability Director positions                                                                                          
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     This reduction would eliminate the Seattle based                                                                           
     Marketing Specialist and Sustainability Director as                                                                        
     outlined in the Governor's departmental budget detail.                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Tilton read the  amendment (see above). There                                                                    
had  been recent  conversations about  stepping the  program                                                                    
down. There had been intent  language moving the funding for                                                                    
Alaska Seafood  Marketing Institute (ASMI) into  the capital                                                                    
budget. In light of stepping  the program down, there were 6                                                                    
positions that  were Seattle-based. The amendment  sought to                                                                    
eliminate 2 of the 6 positions.                                                                                                 
                                                                                                                                
9:05:42 AM                                                                                                                    
                                                                                                                                
Representative Guttenberg indicated  that the department was                                                                    
moving one of the positions to  Alaska and another in FY 18.                                                                    
He thought it  was important to allow the agency  to do what                                                                    
it needed to do.                                                                                                                
                                                                                                                                
9:07:01 AM                                                                                                                    
                                                                                                                                
Representative Kawasaki mentioned  discussions about whether                                                                    
the industry  participation was there  and whether  it would                                                                    
continue  to be  there in  the  future. He  wondered if,  by                                                                    
removing  specific positions,  partner sponsorship  would be                                                                    
removed or jeopardized.                                                                                                         
                                                                                                                                
Representative Wilson  was concerned with why  the positions                                                                    
were in Seattle.                                                                                                                
                                                                                                                                
9:08:13 AM                                                                                                                    
                                                                                                                                
Representative  Tilton  reported  7 people  sitting  in  the                                                                    
Seattle office.  The largest  salary was  $161,603 including                                                                    
benefits. The  second largest salary was  $160,406. She read                                                                    
the remaining  salaries including benefits from  the Seattle                                                                    
office:  $81,307;  $161,603;   156,931;  and  $106,509.  She                                                                    
thought  the  salaries  were  high  for  people  outside  of                                                                    
Alaska.  The  marketing  specialist and  the  sustainability                                                                    
specialist  salaries  totaled   $263,400.  She  thought  the                                                                    
industry  understood and  knew the  state would  be stepping                                                                    
down  its GF  contribution and  would have  to pay  from its                                                                    
pocket  instead.  She  thought   it  was  disconcerting  for                                                                    
Alaskans that they were paying for positions out of state.                                                                      
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kawasaki, Pruitt, Thompson, Tilton, Wilson                                                                            
OPPOSED: Gara, Grenn, Guttenberg, Ortiz, Seaton                                                                                 
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (5/5). Amendment H CED 21 FAILED.                                                                             
                                                                                                                                
9:10:55 AM                                                                                                                    
                                                                                                                                
Representative Guttenberg MOVED to ADOPT Amendment H CED 22                                                                     
(copy on file):                                                                                                                 
                                                                                                                                
     Regulatory Commission of Alaska                                                                                            
     Regulatory Commission of Alaska                                                                                            
     H CED 22 - Replaces intent language in                                                                                     
     CSHB 57(FIN),Version U, p.7, lines 13-19                                                                                   
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Regulatory Commission  of Alaska  provide to  the House                                                                    
     Finance  Committee, the  Senate  Finance Committee  and                                                                    
     the Legislative Finance Division,  by December 1, 2017,                                                                    
     an analysis of Alaska's  current broadband coverage and                                                                    
     providers'   planned   coverage   expansions,   and   a                                                                    
     description   of  the   remaining  gaps   in  statewide                                                                    
     broadband infrastructure and financing.                                                                                    
                                                                                                                                
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Guttenberg  explained that the  amendment was                                                                    
a  re-write  of  intent  language   that  had  already  been                                                                    
adopted.  The  language  was  more   concise.  He  read  the                                                                    
amendment description.                                                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H CED 22 was ADOPTED.                                                                       
                                                                                                                                
9:13:13 AM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DOE 6                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Education Support Services                                                                                                 
     Executive Administration                                                                                                   
     H DOE 6 - Eliminate Special Assistant position                                                                             
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  a Special  Assistant  to  the                                                                    
     Commissioner and the  associated personal service costs                                                                    
     from  the Personal  Service line  of the  FY 18  budget                                                                    
     request.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Wilson  read  the amendment.  She  explained                                                                    
that  it was  the  job  of a  special  assistant to  provide                                                                    
answers to  the legislature.  She thought  legislators could                                                                    
live without the position.                                                                                                      
                                                                                                                                
Representative   Ortiz   relayed   that  since   2015,   the                                                                    
department  had   been  cut  38  percent.   General  funding                                                                    
positions  were   essential  in  meeting   the  department's                                                                    
statutory  requirements.  He  suggested  that  when  talking                                                                    
about the  department being  cut by 38  percent, it  did not                                                                    
reflect the essential things that  were not occurring within                                                                    
the department  as a  result of those  cuts. He  mentioned a                                                                    
program that supported teachers  living in rural Alaska with                                                                    
their curriculum  and with  other things  having to  do with                                                                    
living in a rural setting. The  intent of the program was to                                                                    
help  them sustain  their stay  and to  avoid teacher  turn-                                                                    
over. He  thought the proposed  cut would add  an additional                                                                    
burden  to   the  department.  He  would   be  opposing  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  Seaton   asked  if   the  special   assistant  was                                                                    
responsible for the fiscal notes.                                                                                               
                                                                                                                                
Representative  Wilson   responded  in  the   negative.  She                                                                    
reported  that  the  financial officers  took  care  of  the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Representative  Wilson  indicated   that  the  position  had                                                                    
nothing  to do  with  the mentoring  program  that had  been                                                                    
mentioned  earlier.   The  teacher  mentoring   program  was                                                                    
offered  by  the department  through  grants  given to  past                                                                    
educators  and  to  the university.  Deleting  the  position                                                                    
would  not impact  a  program that  no  longer existed.  The                                                                    
primary  duty  of  the  special   assistant  was  to  answer                                                                    
questions  from the  legislature. She  was aware  the person                                                                    
attended  the education  meetings, but  she did  not believe                                                                    
$164,400  was  affordable  in  the  state's  current  fiscal                                                                    
situation.  She  relayed  that   federal  dollars  were  put                                                                    
towards  the  position  carrying   with  those  dollars  the                                                                    
responsibility of  reporting to the federal  government. She                                                                    
asked members for their support of her amendment.                                                                               
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 6 FAILED.                                                                              
                                                                                                                                
9:18:44 AM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DOE  7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Education Support Services                                                                                                 
     Executive Administration                                                                                                   
     H DOE 7 - Remove Erin's Law Funding                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     An   appropriation  of   $200,000  was   made  to   the                                                                    
     Department  for the  implementation  of  Erin's Law  in                                                                    
     Sec32(c)  Ch3 4SSLA2016  P95 L22  (HB256), reversed  in                                                                    
     HB256  CC Amendment  29-LS8006A.31  Wallace  P2 L6  and                                                                    
     restored as  an increment in  the FY 18  Budget request                                                                    
     for  this   allocation.  This  amendment   deletes  the                                                                    
     requested  increment   of  $200,000  and   removes  the                                                                    
     funding  from  the  base  budget.  Private  funds  were                                                                    
     available  for this  program. The  department also  had                                                                    
     resources and  personnel dedicated toward this  type of                                                                    
     program.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson  read the  amendment (see  above). She                                                                    
furthered that  private non-profits  had come to  her saying                                                                    
they would pay  for any implementation or  material that was                                                                    
needed. They  were turned away,  being told the  funding was                                                                    
not  needed.  Additionally,  before   the  law  was  passed,                                                                    
Governor  Sean Parnell  had installed  a program  addressing                                                                    
domestic  violence and  what children  should know  and what                                                                    
teenagers needed  to do. The  state hired a  position within                                                                    
DEED  to help  districts to  assist them.  The duty  of this                                                                    
particular person  was to  make sure  that every  school had                                                                    
curriculum.  It was  her  understanding  that the  Rasmussen                                                                    
Foundation and the  Children's Trust had come  forward to be                                                                    
a part  of the discussion and  a source of funding  but were                                                                    
turned  away. She  did not  understand why  the state  would                                                                    
turn away private  funding. It did not make sense  to her to                                                                    
have $200,000 in the base every year.                                                                                           
                                                                                                                                
9:21:29 AM                                                                                                                    
                                                                                                                                
Representative  Ortiz asked  for more  detail regarding  the                                                                    
money  that  was  turned  down. He  wondered  if  she  could                                                                    
provide documentation or specific information about it.                                                                         
                                                                                                                                
Co-Chair  Seaton indicated  that the  clarification question                                                                    
should be addressed in wrap-up.                                                                                                 
                                                                                                                                
Representative Ortiz  recalled that  in the  previous year's                                                                    
vote  on Erin's  law, the  bill received  widespread support                                                                    
for  its  passage.  However,  he  had  heard  concerns  from                                                                    
districts about Erin's Law being  an unfunded mandate passed                                                                    
down to  local school districts.  They did not want  to have                                                                    
to use  their budgets to fulfill  the requirements resulting                                                                    
from  the legislation.  He reported  that DEED  had received                                                                    
one-time funding support  in the amount of  $25,000 from the                                                                    
Alaska Children's Trust to  develop eLearning online courses                                                                    
to  assist  district  teachers in  complying  with  training                                                                    
requirements  on sexual  abuse assault  and dating  violence                                                                    
required  under  the  Alaska's   Safe  Children's  Act.  The                                                                    
funding did  not address the  ongoing costs  associated with                                                                    
delivering such  courses to personnel. He  reported that 100                                                                    
percent  of  the  FY 17  appropriation  of  $200,000  passed                                                                    
through  the  districts  to purchase  materials  to  provide                                                                    
training on curricula. The  estimated initial start-up costs                                                                    
for districts to implement the  act was $400,000 to $500,000                                                                    
for curricula.  Funding would be  needed every  year because                                                                    
of DEED  having to  purchase new  slots for  each additional                                                                    
personnel  of  the  16,000   district  personnel  using  the                                                                    
eLearning  system.  The  Alaska Children's  Safe  Act  would                                                                    
result  in   many  additional  staff  using   the  eLearning                                                                    
program.  He expected  the number  of  district staff  would                                                                    
grow to 20,000  once the new law took effect.  The money was                                                                    
needed every  year so that  districts could comply  with the                                                                    
law.  If the  money  was  removed it  would  be an  unfunded                                                                    
mandate. He opposed the amendment.                                                                                              
                                                                                                                                
Representative  Wilson  indicated  that  there  were  people                                                                    
ready to  step up to the  plate. She did not  understand the                                                                    
notion  of  DEED  having  its   own  eLearning  program  and                                                                    
charging  for it.  She spoke  of  someone in  DEED that  was                                                                    
helping  with getting  the program  started. She  noted that                                                                    
some school  districts were already  in compliance  with the                                                                    
law.  The intent  of the  amendment had  nothing to  do with                                                                    
whether the  law was good  or bad. She wanted  to understand                                                                    
why  the state  turned  private money  down  and used  state                                                                    
dollars instead.                                                                                                                
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 7 FAILED.                                                                              
                                                                                                                                
9:26:50 AM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DOE  9                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Education Support Services                                                                                                 
     School Finance & Facilities                                                                                                
     H DOE 9 - Eliminate funding for semi-annual school bus                                                                     
     inspections                                                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Semi-annual safety school bus inspections were not the                                                                     
     responsibility of the state but of the districts, so                                                                       
     funding has been removed.                                                                                                  
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson  read the amendment. She  wondered why                                                                    
the state was  paying for school bus  inspections when there                                                                    
were  private vendors  contracted.  She thought  it was  the                                                                    
vendor's responsibility  to inspect its vehicles  for safety                                                                    
and  should  be  part  of   the  contract  with  the  school                                                                    
districts.                                                                                                                      
                                                                                                                                
9:28:08 AM                                                                                                                    
                                                                                                                                
Representative Ortiz  indicated that  by statute  the school                                                                    
districts were  responsible for  inspection of  school buses                                                                    
twice every year.  He thought it was simple -  the state was                                                                    
required  to do  the  inspections by  statute (AS  14.09.030                                                                    
(b)(2).                                                                                                                         
                                                                                                                                
Representative  Guttenberg  understood  the  intent  by  the                                                                    
maker of the amendment. However,  he thought the adoption of                                                                    
the  amendment  would  result  in  school  buses  not  being                                                                    
inspected. He did not believe it was an acceptable outcome.                                                                     
                                                                                                                                
Representative  Wilson thought  the state  could charge  the                                                                    
company a  fee. The  law required the  state to  inspect the                                                                    
buses, not pay  for the inspection. She  provided an example                                                                    
regarding air  quality and car inspections.  She was certain                                                                    
the  state could  require payment  for inspections.  She did                                                                    
not  want  to  see  students injured.  She  saw  nothing  in                                                                    
statute  requiring the  state to  pay  for inspections.  The                                                                    
buses did  not belong to  the state. She disagreed  with the                                                                    
statement that the legislature would  be making buses unsafe                                                                    
for children.  She thought the private  companies should pay                                                                    
for the inspections rather than the state.                                                                                      
                                                                                                                                
Co-Chair  Seaton  directed   Representative  Wilson  not  to                                                                    
repeat her argument more than once due to time constraints.                                                                     
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg, Kawasaki, Ortiz, Gara, Grenn, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 9 FAILED.                                                                              
                                                                                                                                
9:33:55 AM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  10                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Student and School Achievement                                                                                             
     H DOE 10 - Reduce funding for positions deleted by the                                                                     
     Department and funds were retained in the Service                                                                          
     line.                                                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department deleted  nine positions  in  the FY  18                                                                    
     budget  request without  taking  funding reductions  in                                                                    
     the  Personal  Services  line item  for  the  positions                                                                    
     deleted.  The  FY 2017  budgeted  cost  for these  nine                                                                    
     positions  was $1,085,317  million. The  Department did                                                                    
     transfer $1,070,300 million  from the Personal Services                                                                    
     line  item   to  the  Services   line  item   with  the                                                                    
     explanation  that  the  transfer   was  made  to  align                                                                    
     authority  as  a  result   of  enacted  reductions  and                                                                    
     deletion of long term vacancies.                                                                                           
                                                                                                                                
     This  amendment  deletes  the amount  transferred  from                                                                    
     personal services to services.                                                                                             
                                                                                                                                
Vice-Chair Gara OBJECTED for* discussion.                                                                                       
                                                                                                                                
Representative  Wilson  read  the amendment.  She  reflected                                                                    
that there  had been comments made  about unallocated costs.                                                                    
She argued  that if a position  was not being funded  in the                                                                    
budget  the  corresponding  position  control  number  (PCN)                                                                    
should reflect  a zero amount.  If there was an  amount next                                                                    
to the PCN, it meant  the state was still allocating funding                                                                    
for  that  position.  In  the  case  of  the  items  in  the                                                                    
amendment, the funding was being transferred not deleted.                                                                       
                                                                                                                                
Representative  Ortiz  explained  that  the  amendments  all                                                                    
reduced  personal  services  funding  where  the  department                                                                    
deleted  positions  without  deleting all  funding  for  the                                                                    
positions. In  all cases,  the legislature  made unspecified                                                                    
reductions  to   the  allocations   in  the  FY   17  budget                                                                    
necessitating adjustments to positions  by the department to                                                                    
manage  the  reductions.  The   money  associated  with  the                                                                    
positions was already removed in FY 17.                                                                                         
                                                                                                                                
Representative  Wilson  clarified  that the  money  was  not                                                                    
coming  from personal  services, but  rather, services.  She                                                                    
did not reduce anything from personal services.                                                                                 
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson, Thompson                                                                                      
OPPOSED: Kawasaki, Ortiz, Gara, Grenn, Guttenberg, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 10 FAILED.                                                                             
                                                                                                                                
9:37:03 AM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  11                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Student and School Achievement                                                                                             
     H DOE 11 - Reduce unrestricted general funds to                                                                            
     encourage the use of federal funds.                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  reduces the FY 18  General Fund request                                                                    
     of  $4,921,700 in  this  allocation  by $4,000,000  and                                                                    
     will  require  the  Department  to  reallocate  federal                                                                    
     funds  to  fund  the   programs  administered  by  this                                                                    
     allocation.                                                                                                                
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson read the amendment (see above).                                                                           
                                                                                                                                
Representative  Ortiz explained  the amendment  would remove                                                                    
$4 million out  of $4.9 million in UGF  budgeted for student                                                                    
and school  achievement. Federal  funds must be  directed to                                                                    
federal work.  The department already leveraged  the federal                                                                    
dollars it received. There were  very few GF positions left.                                                                    
General fund  funding was essential  if DEED was  to address                                                                    
state issues and priorities. This  particular section in the                                                                    
budget had been  cut 41 percent UGF over the  prior 4 years,                                                                    
since  FY 14.  Staffing  had  been cut  30  percent. If  the                                                                    
amendment was  adopted there would  be no  statewide student                                                                    
assessment, no  charter school grants, no  school health and                                                                    
safety project  funding, and no  report card to  the public.                                                                    
There    would   be    no   school    district   educational                                                                    
accountability. He spoke of the  need for accountability and                                                                    
the  assessment of  outcomes. The  legislature  had been  on                                                                    
record calling for such  accountability. The amendment would                                                                    
move the  state in  the opposite  direction. He  opposed the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Wilson responded that  the allocation took in                                                                    
$4 million  in additional  federal funds. She  conveyed that                                                                    
none  of  the  money  was matching  funds  and  would  leave                                                                    
$921,700 to  cover any  extras that  were necessary  and not                                                                    
covered under  federal guidelines.  She spoke of  a required                                                                    
waiver  to receive  certain federal  funds. She  thought the                                                                    
funds  could  be used  to  pay  for accountability  measures                                                                    
mentioned by Representative Ortiz.                                                                                              
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz, Gara, Grenn, Guttenberg, Kawasaki, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 11 FAILED.                                                                             
                                                                                                                                
9:40:37 AM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  13                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     State System of Support                                                                                                    
     H DOE 13 - Funding  deletion for one-time appropriation                                                                    
     for the Best Practice Initiative.                                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment deletes  the one-time appropriation from                                                                    
     the FY  18 budget request  in the Grants line  item for                                                                    
     the new  Best Practice Initiative. This  grant provides                                                                    
     assistance  to  the  Department in  encouraging  school                                                                    
     districts to  strengthen and expand  innovative student                                                                    
     learning  opportunities   through  effective  district-                                                                    
     level  partnerships. Schools  that want  to participate                                                                    
     in  this   program  can  utilize   individual  district                                                                    
     funding.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson read the amendment (see above).                                                                           
                                                                                                                                
Representative Ortiz reported that  in the governor's State-                                                                    
Of-The-State speech he challenged  Alaskans to come together                                                                    
to improve  the state's educational system  through Alaska's                                                                    
education challenge. The State  Board of Education and Early                                                                    
Development members  would chair 5 committees  to prioritize                                                                    
recommendations  from  Alaskans  in 5  priority  areas.  The                                                                    
areas included  improved student learning, the  assurance of                                                                    
excellent educators,  modernization and finance,  tribal and                                                                    
community  ownership,  and  the   promotion  of  safety  and                                                                    
wellbeing. He  reported that  over the  past 3  years DEED's                                                                    
budget  had been  reduce by  38  percent. It  resulted in  a                                                                    
reduction of  the department's capacity to  engage in future                                                                    
planning  and  analysis.  The increment  would  provide  the                                                                    
funding  necessary  to  ensure  that  Alaska's  voices  were                                                                    
reflected   in  the   Alaska's   education  challenge.   The                                                                    
department was  still in  the early  planning of  the Alaska                                                                    
education  challenge,  but  approximately  $125,000  of  the                                                                    
increment would be used to  provide opportunities for public                                                                    
input,  provide  community  members with  written  comments,                                                                    
provide support for travel,  provide technology, and provide                                                                    
staff  needed  through the  end  of  the calendar  year.  In                                                                    
addition, the  funds would  be used for  the State  Board of                                                                    
Education and  Early Development  members to meet  in person                                                                    
to  approve  the  final  draft  of  the  recommendations  on                                                                    
improving education  in Alaska  and to  present them  to the                                                                    
governor and  the legislature. The remaining  $125,000 would                                                                    
be  for  competitive  grants to  school  districts  to  help                                                                    
collaborate  with  other  school   districts  and  to  share                                                                    
innovative  projects  that  were   making  a  difference  in                                                                    
student  achievement. It  would also  strengthen and  expand                                                                    
innovative student learning  opportunities through effective                                                                    
district-level partnerships.                                                                                                    
                                                                                                                                
Representative Wilson  suggested that  the state had  to pay                                                                    
schools to work  together. Originally, the grant  had been a                                                                    
one-time funding increment to  encourage school districts to                                                                    
strengthen and  expand innovation for their  students, which                                                                    
she believed  most were  already doing.  She wondered  if it                                                                    
was something the district felt  was worth-while and whether                                                                    
it could  utilize the funding  already in place  rather than                                                                    
the state paying extra money.                                                                                                   
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                               
OPPOSED: Gara, Guttenberg, Kawasaki, Ortiz, Seaton                                                                              
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (5/5). Amendment H DOE 13 FAILED.                                                                             
                                                                                                                                
9:44:35 AM                                                                                                                    
                                                                                                                                
Representative  Pruitt MOVED  to  ADOPT Amendment  H DOE  14                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Teacher Certification                                                                                                      
     H DOE 14 - Decrease funding to personal services and                                                                       
     services.                                                                                                                  
     Offered by Representative Pruitt                                                                                           
                                                                                                                                
     There  have been  steady  increases  in spending  under                                                                    
     Teaching  &  Learning  support every  year  during  our                                                                    
     drop-in revenue. This  amendment draws services funding                                                                    
     back to roughly FY08 and FY09 levels.                                                                                      
                                                                                                                                
Representative Grenn OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative Pruitt explained the  amendment was a call to                                                                    
reanalyze  whether  the  legislature should  have  increased                                                                    
funding at the rate that  it had the previous several years.                                                                    
He  suggested returning  to funding  levels from  FY 08  and                                                                    
FY 09. He thought the amendment  provided the opportunity to                                                                    
recognize the  state had grown  faster than it  should have.                                                                    
The amendment would  scale back the funding  for teacher and                                                                    
learning support.                                                                                                               
                                                                                                                                
Representative Ortiz reported that  in 2016 at the direction                                                                    
of   the  legislature   the  department   increased  teacher                                                                    
certification fees  to generate enough revenue  to fund both                                                                    
teacher   certification   and  the   Professional   Teaching                                                                    
Practices Commission  (PTPC) budgets.  In FY 18,  the budget                                                                    
was funded  by teacher certification  fees in the  amount of                                                                    
$916,000.  There was  $16.4 million  in interagency  receipt                                                                    
authority.  In FY  08 the  actuals  were $353,000  primarily                                                                    
through  program  receipts plus  $5.2  million  UGF in  real                                                                    
dollars. He  explained that FY  08 funding in the  amount of                                                                    
$353,400   equated    to   $422,700   in    FY 17   dollars.                                                                    
Historically, the program  receipt authorization for teacher                                                                    
certification was not fully spent.  It provided a buffer for                                                                    
PTPC and  teacher certification from a  variation in revenue                                                                    
collection from variation and  revenue collection since each                                                                    
was  almost  100  percent dependent  on  the  receipts.  For                                                                    
example, in FY 16 the  authorization was $913,000 but actual                                                                    
expenditures  equaled $631,200.  The  Teacher Education  and                                                                    
Certification  Office  planned   to  utilize  carry  forward                                                                    
receipts to  upgrade their database  system to  maintain and                                                                    
improve efficiencies.                                                                                                           
                                                                                                                                
Representative Wilson  asked why the state  was charging its                                                                    
teachers  more for  certification  if it  did  not need  the                                                                    
money. The money  would go back to the  teachers. She argued                                                                    
that it  was difficult to  hire teachers and the  fees could                                                                    
be  a  deterrent  in  attracting  teachers  to  Alaska.  She                                                                    
suggested giving  the teachers a  refund if there  was extra                                                                    
funding.                                                                                                                        
                                                                                                                                
Representative Pruitt appreciated his colleague's argument.                                                                     
                                                                                                                                
Representative Grenn MAINTAINED his OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
[Co-Chair Foster was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 14 FAILED.                                                                             
                                                                                                                                
9:49:44 AM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  15                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Child Nutrition                                                                                                            
     H DOE 15 - Personal Services Reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The Department deleted an  Office Assistant position in                                                                    
     the  FY  18 budget  request  without  taking a  funding                                                                    
     reduction in  the Personal Services  line item  for the                                                                    
     position deleted.  The FY 2017  budgeted cost  for this                                                                    
     position was $69,659. This amendment  deletes the FY 17                                                                    
     budgeted position  costs that  were not deleted  by the                                                                    
     Department from  the Personal Services  line of  the FY                                                                    
     18 budget request.                                                                                                         
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson  read the  amendment (see  above). She                                                                    
explained that  the funding, rather than  being reduced from                                                                    
the  personal  services line,  was  moved  into grants.  She                                                                    
advocated for  truth in budgeting.  She suggested  that with                                                                    
unallocated  cuts  the   departments  were  responsible  for                                                                    
assigning where the cuts would  be applied. She thought they                                                                    
were  dealing with  an accounting  issue. If  the department                                                                    
took the  money from personal  services and left the  PCN in                                                                    
place, the  books would  show an  office assistant  PCN with                                                                    
zero funding in  FY 17. The position would  still exist, but                                                                    
the  funding  would not.  However,  the  books continued  to                                                                    
reflect  the position  along with  its funding.  Without her                                                                    
amendment, the  department would be over  budget by $69,659.                                                                    
She asked for support of her amendment.                                                                                         
                                                                                                                                
9:52:07 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:46 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Wilson MOVED  to AMEND  Amendment H  DOE 15.                                                                    
She  explained that  the $69,700  should be  moved from  the                                                                    
personal services line to the grants line.                                                                                      
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Wilson relayed  that it  was brought  to her                                                                    
attention that the $69,700 was  shifted to grants and should                                                                    
be removed from there rather than personal services.                                                                            
                                                                                                                                
Co-Chair Seaton asked for clarification.                                                                                        
                                                                                                                                
Representative  Wilson   responded  that  the   funding  had                                                                    
already shifted  to the grants line  from personal services.                                                                    
It was the  same amount of money, but a  different line. The                                                                    
PCN would be removed.                                                                                                           
                                                                                                                                
Vice-Chair  Gara thought  it was  important  to discuss  the                                                                    
impact of a  reduction. He indicated that the  $69,700 was a                                                                    
decrement from the prior year.  A position was unfunded. The                                                                    
amendment  would  be another  decrement  of  about the  same                                                                    
amount. He thought  it was important to  consider what would                                                                    
happen in the  area of child nutrition. He  was uncertain if                                                                    
the maker  of the  amendment was  aware that  it would  be a                                                                    
repeat of the same decrement from the previous year.                                                                            
                                                                                                                                
Representative Wilson  clarified that  the amendment  to the                                                                    
amendment was  shifting $69,700  from the  personal services                                                                    
line item to the line item of grants.                                                                                           
                                                                                                                                
Co-Chair Seaton asked for further clarification.                                                                                
                                                                                                                                
Representative Wilson  replied that personal  services would                                                                    
equal zero and grants would show -$69,700.                                                                                      
                                                                                                                                
Representative Thompson asked if it was still UGF.                                                                              
                                                                                                                                
Representative Wilson indicated that it was a GF match.                                                                         
                                                                                                                                
10:04:04 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:04:44 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton recognized  Representative Millet had joined                                                                    
the meeting.                                                                                                                    
                                                                                                                                
Vice-Chair Gara WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO  OBJECTION, the Amendment to  Amendment H DOE                                                                    
15 was ADOPTED.                                                                                                                 
                                                                                                                                
Representative Ortiz spoke in  opposition of Amendment H DOE                                                                    
15.  He  thought  the  amendment   was  an  example  of  not                                                                    
reviewing the  effects of the  amendment. He  suggested that                                                                    
if  the amendment  passed it  would have  dire consequences.                                                                    
Department of  Education and Early  Development laid  off an                                                                    
office  assistant  position,  PCN  05-2300, for  the  FY  17                                                                    
budget.  Child nutrition  programs was  primarily funded  by                                                                    
the USDA.  In order to  receive funds  from the USDA  in the                                                                    
amount of  $64,712.7 million  in FY 16  the State  of Alaska                                                                    
was  mandated to  provide a  small  amount of  GF match.  He                                                                    
continued that  a reduction of  the $69,700 would  result in                                                                    
non-compliance  with state  match requirements  by USDA  and                                                                    
would result  in the  loss of  federal reimbursement  to pay                                                                    
for  meal  programs at  schools,  Head  Start agencies,  and                                                                    
child care centers.                                                                                                             
                                                                                                                                
Representative  Wilson was  unsure  why  the governor  would                                                                    
make an  unallocated reduction within  the department  if it                                                                    
was  going  to be  devastating.  She  acknowledged that  the                                                                    
funds  had  been  transferred.  She  thought  it  was  about                                                                    
numbers.                                                                                                                        
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Pruitt, Thompson, Tilton                                                                                      
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Foster,                                                                      
Seaton                                                                                                                          
                                                                                                                                
The MOTION FAILED (4/7). Amendment H DOE 15 as amended                                                                          
FAILED.                                                                                                                         
                                                                                                                                
10:08:42 AM                                                                                                                   
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DOE 16                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Early Learning Coordination                                                                                                
     H DOE  16 - Eliminate  Funding for Best  Beginnings and                                                                    
     Parents as Teachers                                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     A  reduction of  $820,000 is  made to  this allocation,                                                                    
     $320,000 from the Best  Beginnings program and $500,000                                                                    
     from the Parents as  Teachers program. An appropriation                                                                    
     of $320,000  was made  to the  Department for  the Best                                                                    
     Beginnings program  in Sec32(c)  CH3 4SSLA2016  P95 L20                                                                    
     (HB256), reversed  in HB256 CC  Amendment 29-LS8006A.31                                                                    
     Wallace  P2 L6  and  restored as  an  increment in  the                                                                    
     FY 18   budget  request   for  this   allocation.  This                                                                    
     amendment deletes  the requested increment  of $320,000                                                                    
     and  removes  the  funding from  the  base  budget.  An                                                                    
     additional appropriation  of $700,000  was made  to the                                                                    
     Department  for  the  Parents as  Teachers  program  in                                                                    
     Sec32(c) CH3  4SSLA2016 P95  L21 (HB256),  $700,000 was                                                                    
     vetoed  and   $500,000  was  restored  in   the  FY  18                                                                    
     Governor's  budget   request  as  an   increment.  This                                                                    
     amendment deletes  the requested increment  of $500,000                                                                    
     and removes the funding  from the base budget. Although                                                                    
     these   are   good   programs    they   are   not   the                                                                    
     responsibility  of  the state  to  fund  and should  be                                                                    
     funded through  contributions of those that  benefit or                                                                    
     private contributions.                                                                                                     
                                                                                                                                
Co-Chair Foster OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative Wilson read the amendment (see above).                                                                           
                                                                                                                                
Representative  Ortiz  relayed   there  had  been  extensive                                                                    
conversations about  preschool programs at  the subcommittee                                                                    
level. Also,  there had been  extensive public  testimony in                                                                    
support of these programs. In  response to the amendment, he                                                                    
reported  that the  Best Beginnings  and Parents  as Techers                                                                    
programs  reached  populations  of  children  not  otherwise                                                                    
supported by  DEED services. Best Beginnings  was supporting                                                                    
the  implementation   of  literacy   by  mailing   books  to                                                                    
children,  ages   0-5  years.  They  relied   on  corporate,                                                                    
individual, and  foundation funds to supply  the Imagination                                                                    
Library.  Private   participation  was  already   in  place.                                                                    
Parents  as Teachers  programs provided  support for  infant                                                                    
learning,  Head Start,  childcare resources,  and referrals.                                                                    
These agencies were doing more  with less. State support for                                                                    
Parents as Techers allowed them  to extend their services to                                                                    
provide  home visits.  Requesting that  Best Beginnings  and                                                                    
Parents  as Teachers  be funded  through contributions  from                                                                    
participants  would limit  the  ability to  serve rural  and                                                                    
low-income  families.  The  amendment   went  in  the  wrong                                                                    
direction in  terms of helping  to support  Alaska's overall                                                                    
education  system.  Research  and documentation  showed  the                                                                    
strong  impact   of  preschool  opportunities   provided  to                                                                    
students; setting  them up for  a greater chance  of success                                                                    
in their K-12  education experience. He did  not support the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Wilson responded that  they were dealing with                                                                    
grants which  did not have  reporting requirements  to DEED.                                                                    
The state had many early  programs most of which were housed                                                                    
within  the Department  of Health  and Social  Services. She                                                                    
recalled seeing  the Dolly  Parton advertisement  about Best                                                                    
Beginnings and  how it would  be a program supported  by the                                                                    
community. She reported the  program having contributors who                                                                    
might renege on their funding  if the state contributed. She                                                                    
thought  having communities  involved in  the programs  made                                                                    
them  better.   The  programs  were  started   as  community                                                                    
programs, not  state programs. She  asked the  committee for                                                                    
its support.                                                                                                                    
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED:  Grenn,   Guttenberg,   Kawasaki,  Ortiz,   Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
[Vice-Chair Gara was absent from the vote].                                                                                     
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 16 FAILED.                                                                             
                                                                                                                                
10:14:35 AM                                                                                                                   
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  17                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Early Learning Coordination                                                                                                
     H DOE 17 - Reduce Head Start grant by 5 percent                                                                            
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The FY 18 Budget request  for Head Start grants in this                                                                    
     allocation  is  $8,003,700.  This  is  not  a  mandated                                                                    
     program; therefore,  a reduction  of 5 percent  is made                                                                    
     to  the Grants  line of  the FY  18 Budget  request for                                                                    
     these pass-through grants by this amendment.                                                                               
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson read the amendment (see above).                                                                           
                                                                                                                                
Representative Ortiz  relayed that  the Head  Start grantees                                                                    
utilized  the  state  grant  they  received  to  meet  their                                                                    
federal  20  percent match  for  the  non-federal share.  It                                                                    
leveraged  $300 million  in federal  Head  Start funds  that                                                                    
went directly  to grantees. Some  programs were not  able to                                                                    
meet  the non-federal  share  in other  ways  such as  local                                                                    
contribution, parent volunteer  hours, fundraising, or other                                                                    
contributions. He suggested the  amendment went in the wrong                                                                    
direction. The benefits of  preschool opportunities had been                                                                    
documented  and proven  to  be critical  and  needed in  the                                                                    
state.   The    amendment   would    effectively   eliminate                                                                    
opportunities for preschool.                                                                                                    
                                                                                                                                
Representative Thompson  argued that  the $400  thousand cut                                                                    
was  relatively small  compared to  the program  size of  $8                                                                    
million. He thought that the  reductions were reasonable and                                                                    
would preserve  the program  in the  future. He  favored the                                                                    
reduction.                                                                                                                      
                                                                                                                                
Representative Pruitt agreed that  the cut did not eliminate                                                                    
the program. He did not  think Alaska received $300 million.                                                                    
He thought it was appropriate to  focus on the $8 million in                                                                    
the  budget,  a  5  percent reduction,  and  preserving  the                                                                    
program  into  the future.  He  thought  the discussion  was                                                                    
reasonable.                                                                                                                     
                                                                                                                                
Representative  Ortiz  clarified  that the  number  was  $30                                                                    
million  rather than  $300 million.  The $8  million matched                                                                    
the $30 million.                                                                                                                
                                                                                                                                
Representative Wilson  explained that  the numbers  were not                                                                    
adding up correctly. She noted  that with the amendment, the                                                                    
matching GF would  remain in the budget and  the state would                                                                    
still receive  the corresponding federal funding.  She spoke                                                                    
to  many Head  Start programs  that  had to  have their  own                                                                    
buildings, not being a part  of the K-12 system. She thought                                                                    
additional  savings could  be  identified through  utilizing                                                                    
already established school buildings.                                                                                           
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED:  Grenn,   Guttenberg,   Kawasaki,  Ortiz,   Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
[Vice-Chair Gara was absent for the vote].                                                                                      
                                                                                                                                
The MOTION FAILED (4/6). Amendment H DOE 17 FAILED.                                                                             
                                                                                                                                
10:20:07 AM                                                                                                                   
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  18                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Teaching and Learning Support                                                                                              
     Early Learning Coordination                                                                                                
     H DOE 18 - Personal Services Reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The Department  deleted an Education  Program Assistant                                                                    
     position in the  FY 18 Budget request  without taking a                                                                    
     funding reduction  in the  Personal Services  line. The                                                                    
     FY 2017  budgeted cost for  this position  was $74,260.                                                                    
     This  amendment deletes  the  FY  17 budgeted  position                                                                    
     costs that were not deleted  by the Department from the                                                                    
    Personal Service line of the FY 18 Budget request.                                                                          
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Wilson  read the  amendment (see  above). She                                                                    
would be  withdrawing the amendment. However,  she wanted to                                                                    
speak to the fact that  the department moved the same amount                                                                    
to the travel services  and commodities line. She emphasized                                                                    
the  importance  of  the  numbers  matching  correctly.  She                                                                    
thought  it was  difficult to  track where  money was  being                                                                    
spent within the department.                                                                                                    
                                                                                                                                
Representative Wilson WITHDREW Amendment H DOE 18.                                                                              
                                                                                                                                
HB  57  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  59  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Seaton  indicated that  the committee  would return                                                                    
to H DOE 19 at the 1:30 PM meeting.                                                                                             
                                                                                                                                

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