Legislature(2017 - 2018)HOUSE FINANCE 519

03/08/2017 01:30 PM FINANCE

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Audio Topic
01:35:34 PM Start
01:35:34 PM HB57 || HB59
01:36:27 PM Amendments
07:23:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 9:30 am on 3/9/17 --
+= 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
May Recess to Sunday 3/12/17 at 12:00 PM, if
necessary
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."                                                                                                        
                                                                                                                                
1:35:34 PM                                                                                                                    
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT Amendment H DOE 19                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     H  DOE  19  -  Pre-K Programs  Affected  by  the  Moore                                                                    
     Settlement                                                                                                                 
     Offered by Representative Ortiz                                                                                            
                                                                                                                                
     Under  the   Moore  Settlement  (Moore  vs.   State  of                                                                    
     Alaska),  the  State set  aside  funds  to address  the                                                                    
     educational needs of students  in 40 of the chronically                                                                    
     lowest   performing  schools   in  Alaska.   Under  the                                                                    
     Settlement the state was directed  to invest in several                                                                    
     strategies to  support student  learning, one  of which                                                                    
     was  in  early  learning  (Pre-K  and  early  literacy)                                                                    
     programs.   In  2012, $18  million was  appropriated by                                                                    
     the Legislature  to meet conditions of  the Settlement,                                                                    
     with  funding continuing  through FY17,  at which  time                                                                    
     any remaining funds would lapse.                                                                                           
                                                                                                                                
     Despite investment made over  the last four years under                                                                    
     the   Moore  Settlement,   the  need   for  Pre-K/early                                                                    
     learning programs has not ended.                                                                                           
                                                                                                                                
     In  FY17,   $2.7  million  provides  Pre-K   and  early                                                                    
     literacy  services to  273 children  in 30  communities                                                                    
     with   Moore  Settlement   funds.   In  FY18,   without                                                                    
     legislative  action,  there  is   no  money  for  these                                                                    
     services  and   few  if  any  of   the  Pre-K  programs                                                                    
     developed  under  Moore  will survive.  In  discussions                                                                    
     with  several  participating  School Districts,  it  is                                                                    
     clear   that  constricting   school  budgets   make  it                                                                    
     difficult  if not  impossible  to  maintain gains  that                                                                    
     have been made.                                                                                                            
                                                                                                                                
     Schools included  in the  Moore Settlement  remain some                                                                    
     of   the  lowest   performing  in   the  State;   early                                                                    
     interventions and early  learning support remains vital                                                                    
     to  give  these children  the  start  they need  to  be                                                                    
     successful in their school years and beyond.                                                                               
                                                                                                                                
     This   amendment  provides   funds   to  continue   the                                                                    
     community  based early  learning  services begun  under                                                                    
     the   Moore    Settlement   with   the    support   and                                                                    
     administrative  oversight of  Early  Learning staff  at                                                                    
     the  Department  of  Education and  Early  Development.                                                                    
     Funds  will be  leveraged  to mix  and stretch  dollars                                                                    
     from all  sources including  federal, private  and non-                                                                    
     profit  to  offer  lean, high  quality  early  learning                                                                    
     programs  for   these  children,   some  of   the  most                                                                    
     vulnerable in Alaska.                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for the purpose of                                                                               
discussion.                                                                                                                     
                                                                                                                                
Representative  Ortiz  explained   that  the  amendment  was                                                                    
intended to  provide one-time bridge  funds into  the coming                                                                    
year in order  to give time for the department  to address a                                                                    
long-term plan for the Moore  schools. The amendment related                                                                    
to Pre-K programs affected by  the Moore settlement. He read                                                                    
from the amendment description [see above].                                                                                     
                                                                                                                                
Representative  Wilson spoke  to her  objection. She  shared                                                                    
that  she  chaired the  Department  of  Education and  Early                                                                    
Development   (DEED)   budget    subcommittee   when   Moore                                                                    
settlement  items  had  been  going  through.  She  recalled                                                                    
asking  what would  happen  when the  funding  ran out.  She                                                                    
detailed at  the time there  had been no funding  for Pre-K.                                                                    
She spoke to the Moore  settlement and read from the judge's                                                                    
findings on the case (copy not on file):                                                                                        
                                                                                                                                
     A related issue on educational  content is the topic of                                                                    
     pre-kindergarten.   Many   witnesses   for   both   the                                                                    
     plaintiffs   and   the   state  testified   that   pre-                                                                    
     kindergarten  programs   can  contribute   to  academic                                                                    
     success  by helping  to make  young children  ready for                                                                    
     formal education. Yet there appears  to be no consensus                                                                    
     as to the age to  best supply pre-kindergarten programs                                                                    
     or  whether they  ought to  be provided  in the  public                                                                    
     schools  or  outside  of the  school  system.  Although                                                                    
     there  is considerable  evidence that  pre-kindergarten                                                                    
     programs may be  beneficial to children, it  is not the                                                                    
     court's role to make such policy determinations.                                                                           
                                                                                                                                
Representative  Wilson  spoke to  "number  12"  of the  same                                                                    
case:                                                                                                                           
                                                                                                                                
     The  education clause  on its  face  requires that  the                                                                    
     state  establish  and  maintain   a  system  of  public                                                                    
     schools.  At  statehood  public schooling  began  after                                                                    
     kindergarten. The  state now  provides a  public school                                                                    
     system  available to  children beginning  at age  five.                                                                    
     This court  does not read  the education clause  of the                                                                    
     Alaska   Constitution   to  accord   to   preschool-age                                                                    
     children the right to a public school education.                                                                           
                                                                                                                                
Representative Wilson surmised that  although the state gave                                                                    
money for  preschool programs, the appropriate  question was                                                                    
about how the funds would be  used. She believed many of the                                                                    
districts combined classes with  four and five-year-olds due                                                                    
to the low number of students  in many villages. She did not                                                                    
know how  many areas did  not combine classes with  four and                                                                    
five-year-olds and had  been able to utilize  the same funds                                                                    
and  teachers  for classrooms  that  would  normally be  for                                                                    
kindergarten.  She   had  heard  and  supported   that  some                                                                    
districts were  already utilizing  funding through  the Base                                                                    
Student  Allocation (BSA)  because it  was not  costing them                                                                    
anymore. She underscored that districts  had known the state                                                                    
funding would not continue in  perpetuity and she believed a                                                                    
plan should have been made.                                                                                                     
                                                                                                                                
Vice-Chair  Gara   supported  the  amendment.  He   was  not                                                                    
interested  in whether  the state  was  legally required  to                                                                    
provide  the funding.  He believed  the amendment's  purpose                                                                    
was to address the fact  that one-sixth of the state's youth                                                                    
not  at reading  level by  3rd grade  did not  graduate from                                                                    
high school. He  stated that those students  became the most                                                                    
expensive.  He  stressed that  children  who  went to  Pre-K                                                                    
ended up  in jobs at  higher levels, earned higher  pay, and                                                                    
graduated from  high school and college  in greater numbers.                                                                    
He remarked that when the  state established its Pre-K grant                                                                    
program, which was only $2  million in 2008, the promise had                                                                    
been  that  after three  years  of  proof of  the  program's                                                                    
success,  the  funding would  increase  to  $10 million.  He                                                                    
stated the program  was only referred to as  a pilot program                                                                    
because the  legislature had never  followed through  on its                                                                    
commitment to get out of the  bottom 10 states in the nation                                                                    
providing Pre-K.                                                                                                                
                                                                                                                                
1:41:53 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  testified in support  of the  amendment. He                                                                    
agreed that the  courts did not determine the  issue; it was                                                                    
determined  by  the  legislature.   He  believed  the  House                                                                    
Majority  was   fully  committed  to  Pre-K   education.  He                                                                    
elaborated on  his belief  that Pre-K  education was  one of                                                                    
the  most  effective  things the  legislature  could  do  to                                                                    
promote education and successful outcomes.                                                                                      
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kawasaki, Ortiz,  Gara, Grenn, Guttenberg, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson                                                                                       
                                                                                                                                
The MOTION PASSED (7/4). There  being NO  further OBJECTION,                                                                    
Amendment H DOE 19 was ADOPTED.                                                                                                 
                                                                                                                                
1:43:35 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  20                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Pre-Kindergarten Grants                                                                                                    
     H DOE 20 - Eliminate Pre-Kindergarten Grants                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Pre-Kindergarten  programs are  available through  Head                                                                    
     Start and  private programs. This is  not a requirement                                                                    
     of  our Constitution  and with  childcare grants  those                                                                    
     unable to qualify for Head  Start can still have access                                                                    
     to a great private childcare facility.                                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  the  amendment. She  noted                                                                    
that  the  legislature had  discussed  Pre-K  grants in  the                                                                    
past. She  believed it  had been  intended as  a competitive                                                                    
grant for private  and public Pre-K programs. As  far as she                                                                    
knew,  grants   had  not  gone  to   private  entities.  She                                                                    
continued that  most of the  funds had continuously  gone to                                                                    
the same entities versus acting  as starting funds for other                                                                    
places.  The amendment  would cut  $2  million from  General                                                                    
Fund spending.                                                                                                                  
                                                                                                                                
Representative Ortiz referred to  the discussion about Pre-K                                                                    
in general.                                                                                                                     
                                                                                                                                
Co-Chair Seaton redirected conversation to the amendment.                                                                       
                                                                                                                                
Representative  Ortiz   complied.  He  discussed   that  the                                                                    
amendment would  mean 358 children who  currently benefitted                                                                    
from the program would no  longer benefit. Additionally, the                                                                    
programs leveraged and blended  federal and private funds to                                                                    
reach more than 1,206 children directly and indirectly.                                                                         
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  emphasized that  the  grants had  been  intended to  be                                                                    
moved  around  to  different  entities  to  provide  startup                                                                    
funding. Additionally,  she believed programs  were supposed                                                                    
to  show  where  they  would  get  continued  funding  after                                                                    
receiving the initial grant.                                                                                                    
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt H DOE 20 FAILED (4/7).                                                                                      
                                                                                                                                
1:46:55 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  21                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Commissions and Boards                                                                                                     
     Alaska State Council on the Arts                                                                                           
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  two of  the  three  Fine  Art                                                                    
     Administrator  positions  requiring the  Department  to                                                                    
     redistribute  the work  to remaining  personnel and  to                                                                    
     operate  in a  more efficient  and effective  manner in                                                                    
     delivering these programs.                                                                                                 
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see  above]. The  amendment would  cut $200,000  in General                                                                    
Fund match from the Alaska State Council on the Arts.                                                                           
                                                                                                                                
Representative Ortiz  spoke in opposition to  the amendment.                                                                    
He stated that  in response to ever  tightening budgets, the                                                                    
Alaska  State Council  on the  Arts took  the initiative  to                                                                    
pursue  legislation  to  restructure  the  organization.  He                                                                    
detailed  that HB  137 would  restructure the  council as  a                                                                    
quasi-governmental  entity to  better  leverage private  and                                                                    
federal funds.  He relayed  that the  bill was  currently in                                                                    
the House Education Committee  with companion legislation in                                                                    
the  Senate. He  furthered that  the leading  two fine  arts                                                                    
administrator  positions  would result  in  a  loss of  $2.1                                                                    
million  in revenue  from private  and federal  partners and                                                                    
the council's collapse.                                                                                                         
                                                                                                                                
Representative Grenn  asked how  many positions  the council                                                                    
currently had.                                                                                                                  
                                                                                                                                
1:49:01 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:49:36 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative   Ortiz  replied   there   were  five   total                                                                    
positions,  three  of  which were  fine  arts  administrator                                                                    
positions.                                                                                                                      
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  did  not believe  the  amendment  would result  in  the                                                                    
collapse  of  the  entire program.  She  detailed  that  the                                                                    
amendment would enable  the council to continue  to look for                                                                    
replacement funds from  other sources. She did  not know any                                                                    
details about HB 137. The  amendment would discontinue state                                                                    
funding for two positions and  would not prevent the council                                                                    
from  requesting funds  from private  entities  such as  the                                                                    
Rasmuson Foundation or other.                                                                                                   
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson, Grenn                                                                                         
OPPOSED:  Thompson,   Gara,  Guttenberg,   Kawasaki,  Ortiz,                                                                    
Seaton, Foster                                                                                                                  
                                                                                                                                
The MOTION to adopt Amendment H DOE 21 FAILED (4/7).                                                                            
                                                                                                                                
1:51:31 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  22                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Mt. Edgecumbe Boarding School                                                                                              
     H DOE 22 - Deletes funding for pool storage and                                                                            
     winterizing maintenance operations.                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  the increment  of $100,000  in                                                                    
     the Services line of the  FY 18 Budget request for pool                                                                    
     storage and  winterizing maintenance operations  at the                                                                    
     Aquatic Center located at Mt. Edgecumbe High School.                                                                       
                                                                                                                                
Co-Chair Foster OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].  She did  not know  why the  cost had  not been                                                                    
figured  into  development  and  utilization  planning.  She                                                                    
believed  $100,000  was   excessive,  especially  given  the                                                                    
current budget deficit.                                                                                                         
                                                                                                                                
Representative  Ortiz  was  opposed  to  the  amendment.  He                                                                    
relayed that  the legislature had  included funding  for the                                                                    
pool in a  statewide bond package in 2010,  which the public                                                                    
had  approved in  a statewide  vote. The  new Mt.  Edgecumbe                                                                    
High School aquatic center  was currently under construction                                                                    
and  was   estimated  for   completion  by   November  2017.                                                                    
Currently  the  operation  and maintenance  needed  for  the                                                                    
center was $583,000  and full funding yet  to be identified.                                                                    
The  $100,000 increment  in the  governor's  proposed FY  18                                                                    
budget was to provide  minimal operations and maintenance of                                                                    
the  facility  upon  its completion,  specifically  to  help                                                                    
cover  the  warm storage  and  maintenance  costs until  the                                                                    
state  had identified  sufficient funds  to support  a fully                                                                    
operational aquatic center. The  increment was an investment                                                                    
to  protect  prior investments  into  the  center and  would                                                                    
maintain hope that the pool would open in the future.                                                                           
                                                                                                                                
Representative Pruitt  explained that the issue  had come up                                                                    
in a  Legislative Budget and  Audit (LB&A) audit.  He stated                                                                    
that  the  fact  the  state built  the  aquatic  center  had                                                                    
baffled  the  auditor  from Texas.  He  furthered  that  the                                                                    
auditor could  not believe the  state had paid to  build the                                                                    
pool  but it  had not  ensured the  facilities built  in the                                                                    
1940s   were   Americans   with   Disabilities   Act   (ADA)                                                                    
accessible. He  continued that the  state had  gotten itself                                                                    
locked  into   the  project,  which  it   could  not  finish                                                                    
building. He  emphasized the center  was less than  one mile                                                                    
away from another pool. He  underscored that the legislature                                                                    
really needed to consider whether  or not some projects were                                                                    
a  good  idea  when   contemplating  providing  funding.  He                                                                    
continued  that  the aquatic  center  was  an example  of  a                                                                    
project  where the  legislature found  itself asking  why it                                                                    
took  $100,000 to  winterize a  pool that  had not  yet been                                                                    
built.  He   believed  it  was  a   catch-22  situation.  He                                                                    
questioned  whether the  legislature  should  throw out  the                                                                    
money  it had  already spent  or  ensure the  pool would  be                                                                    
there for the  future. He would vote  against the amendment,                                                                    
but he did  not like the situation. He  underscored that the                                                                    
project should never have been  built in the first place. He                                                                    
believed the situation was important  to keep in mind in the                                                                    
future.                                                                                                                         
                                                                                                                                
1:55:08 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  emphasized  that  the  state   knew  it  did  not  have                                                                    
sufficient  funds to  complete  the project.  She noted  the                                                                    
issue  was not  about  whether  or not  the  pool should  be                                                                    
built.  She questioned  the reason  the  contractor had  not                                                                    
stopped at  a point where  it would not require  $100,000 to                                                                    
keep  the project  from being  destroyed. Additionally,  she                                                                    
stressed  that even  if  the  money to  build  the pool  was                                                                    
available,  it  was her  understanding  there  was no  money                                                                    
available  to maintain  the pool.  She  questioned how  many                                                                    
years the  state would pay  $100,000 for storage fees  for a                                                                    
project that  may never  be completed.  She noted  there was                                                                    
another  pool  in the  area  that  was being  utilized.  She                                                                    
wondered how  many times the  state would pay  for something                                                                    
that could not  be completed and could not  be operated. She                                                                    
stressed that money is not  free and that someone would have                                                                    
to pay for it.                                                                                                                  
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Pruitt,                                                                    
Foster, Seaton                                                                                                                  
                                                                                                                                
The MOTION to adopt Amendment H DOE 22 FAILED (3/8).                                                                            
                                                                                                                                
1:57:42 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  24                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DOE 24 - Funding reduction for team sports and                                                                           
     extra-curricular activities.                                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment reduces  the FY  18  Budget request  of                                                                    
     $505,900  in  the  Travel  line   for  travel  to  team                                                                    
     sporting  events  and  extra-curricular  activities  by                                                                    
     $200,000.  Funding is  not given  to  any other  public                                                                    
     school for sports and fees can be assessed if this is                                                                      
     an important activity for those that participate.                                                                          
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  that  the amendment  would                                                                    
reduce   funding  for   team   sports  and   extracurricular                                                                    
activities.  She  stressed  that  the  state  did  not  give                                                                    
schools   in   her   district  money   for   extracurricular                                                                    
activities. She  explained the schools in  her district held                                                                    
fundraisers  such as  car washes,  ticket  sales to  various                                                                    
things, and  other. She read the  amendment description [see                                                                    
above]. She added  that to her knowledge, the  state did not                                                                    
charge to  attend school at  Mt. Edgecumbe because it  was a                                                                    
state school. However, she did  not understand why the state                                                                    
would fund extracurricular activities  for one public school                                                                    
and  not others.  She surmised  each district  in the  state                                                                    
contained  schools  that  had  to  pay  for  the  activities                                                                    
themselves.                                                                                                                     
                                                                                                                                
Representative  Ortiz  believed  it  was safe  to  say  that                                                                    
nearly every school  in the state utilized a  portion of its                                                                    
operating  funds  (foundation  funds in  addition  to  local                                                                    
contributions)   for   student  extracurricular   activities                                                                    
including  sports.  Mt.  Edgecumbe offered  a  comprehensive                                                                    
program   for   its   students   including   extracurricular                                                                    
activities. He continued that most  of the travel funds paid                                                                    
for  roundtrip  transportation  for students  between  their                                                                    
home community and  Sitka - the average cost  was $1,200 per                                                                    
student for one roundtrip ticket.  The total travel cost for                                                                    
400  students  was  approximately $480,000,  which  did  not                                                                    
cover  the cost  of  traveling home  for Christmas  (parents                                                                    
paid  for that  cost);  after those  expenditures there  was                                                                    
little  funding  remaining  for sports  and  extracurricular                                                                    
travel.  He explained  that the  amendment would  hamper the                                                                    
ability for students to travel home.                                                                                            
                                                                                                                                
2:00:19 PM                                                                                                                    
                                                                                                                                
Representative Grenn asked about  the amount spent on travel                                                                    
for sports.                                                                                                                     
                                                                                                                                
Representative  Ortiz replied  that  he was  unaware of  the                                                                    
specific amount.                                                                                                                
                                                                                                                                
Representative Wilson  provided wrap up. She  countered that                                                                    
it did not cost all of  the Mt. Edgecumbe students $1,000 to                                                                    
travel home. She stated that  many of the students were from                                                                    
Anchorage. She  had examined the numbers  and reported there                                                                    
was a $200,000 difference.  She believed the school received                                                                    
substantially more  money because  of its  location compared                                                                    
to other schools  in urban districts. She  agreed that other                                                                    
school  districts used  formula funding  for extracurricular                                                                    
activities, but Mt.  Edgecumbe did as well.  She stated that                                                                    
Mt. Edgecumbe  received more formula  funds than  many other                                                                    
schools. She  believed at a certain  point a line had  to be                                                                    
drawn.                                                                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DOE 24 FAILED (4/7).                                                                            
                                                                                                                                
2:02:48 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  25                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska State Libraries, Archives and Museums                                                                               
     Library Operations                                                                                                         
     H DOE 25 - Services Reduction                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment reduces  FY 18  Budget  request in  the                                                                    
     Services  line  by  $900,000 for  the  RSA  with  State                                                                    
     Facilities Maintenance  for operations  and maintenance                                                                    
     support for  the Alaska  State Libraries,  Archives and                                                                    
     Museums combined  facility. The Services  line increase                                                                    
     by  $1,210.5  from  the FY  17  Management  Plan.  This                                                                    
     allocation  would   still  have  $875,000   a  $320,500                                                                    
     increase from the FY 17 Management Plan.                                                                                   
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. She stated  the reason for the amendment  was due to                                                                    
the  large  [new]  building  in Juneau  that  needed  to  be                                                                    
maintained. She  relayed she had  offered the  amendment for                                                                    
the purpose  of discussion. She detailed  that the amendment                                                                    
pointed  out that  when large  buildings  were built,  large                                                                    
cost increases  occurred. She continued  that the  money was                                                                    
not  currently left  over in  the budget  - it  would be  an                                                                    
increase  in the  current  year and  in  following years  in                                                                    
order to  maintain the  facility. She  did not  know whether                                                                    
any  rent had  been saved  because DEED  had moved  into the                                                                    
building.                                                                                                                       
                                                                                                                                
Representative  Ortiz opposed  the  amendment. He  explained                                                                    
that  the amendment  would bring  a $900,000  or 93  percent                                                                    
reduction  to operations  and maintenance.  He explained  it                                                                    
would mean  the state would  need to close the  newly opened                                                                    
A.P.  Kashevaroff building,  commonly  referred  to as  SLAM                                                                    
[State Library Museum Archives].                                                                                                
                                                                                                                                
Co-Chair  Seaton spoke  against the  amendment. He  noted it                                                                    
was  important to  realize that  a number  of the  items had                                                                    
been voted on by past legislatures  and many had gone out to                                                                    
bond after  receiving public approval.  He believed  that it                                                                    
could be  problematic for the current  legislature to decide                                                                    
to defund  maintenance and operations  and close  a facility                                                                    
(without providing funding to keep the building warm).                                                                          
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She emphasized  that the amendment would  leave $320,500 and                                                                    
would not shut the entire  building down. She reiterated she                                                                    
had  offered  the  amendment for  discussion  purposes.  She                                                                    
noted that  historically when new buildings  were considered                                                                    
she  had  never seen  the  House  Finance Committee  discuss                                                                    
where  the maintenance  and heating  funds  would come  from                                                                    
(i.e. fees  or general funds).  She stressed that  the issue                                                                    
had occurred  numerous times.  She did  not expect  to close                                                                    
the new  library, but she  wanted people to  understand that                                                                    
$1 million to  keep a library open was  a substantial amount                                                                    
compared  to  the funds  needed  for  the prior  space.  She                                                                    
WITHDREW the amendment.                                                                                                         
                                                                                                                                
2:06:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara  remarked that  when  he  had been  on  the                                                                    
finance  committee in  past members  had been  asked to  use                                                                    
their discretion  to not  speak twice  to an  amendment when                                                                    
possible. He  noted it  would take  substantial time  to get                                                                    
through the approximately 323 amendments.                                                                                       
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  26                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Archives                                                                                                                   
     H DOE 26 - Personal Services Reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  an  Archivist  position and  a                                                                    
     Records Analysis  position requiring the  Department to                                                                    
     redistribute  the workload  of these  positions to  the                                                                    
     remaining staff resources                                                                                                  
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative   Wilson   explained   the   amendment.   The                                                                    
amendment would  delete two  positions, which  would require                                                                    
DEED  to  redistribute  the workload.  The  amendment  would                                                                    
remove $242,500 from the personal  services line and reduced                                                                    
the general fund appropriation.                                                                                                 
                                                                                                                                
Representative Ortiz  stated that  the loss of  an archivist                                                                    
position would  mean that the records  collections would not                                                                    
be  available for  the public  to use  for research  and for                                                                    
state  agencies  to use  for  bill  drafting, research,  and                                                                    
lawsuits. He continued that  state agencies used accessible,                                                                    
archivable  records for  civil litigations  such as  Amareda                                                                    
Hess and Exxon  Valdez oil spill cases,  which returned more                                                                    
than  $1  billion to  state  coffers.  There were  only  two                                                                    
records analysts  on staff. He  detailed that  the positions                                                                    
helped agencies  with records, dispositions,  schedules, and                                                                    
activities.  He  stressed  that  the  loss  of  one  of  the                                                                    
positions would  result in cost increases  to state agencies                                                                    
as they would be forced to  store more of their records over                                                                    
longer periods  of time. The  unit had been static  for many                                                                    
years with  two staff, even  as state government  had grown.                                                                    
He  concluded  the  loss  of  a  records  analyst  would  be                                                                    
devastating to the orderly management of state records.                                                                         
                                                                                                                                
Representative  Wilson  reminded   the  committee  that  the                                                                    
amendment  would  not  remove  PCNs. She  offered  that  the                                                                    
Division of  Libraries, Archives  and Museums could  use the                                                                    
cut for other areas of efficiencies if it chose to do so.                                                                       
                                                                                                                                
Co-Chair Foster 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 to adopt Amendment H DOE 26 FAILED (4/7).                                                                            
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  27                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Museum Operations                                                                                                          
     H DOE 27 - Alignment of the FY 18 Budget Request with                                                                      
     the FY 17 Authorized Expenditures                                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     FY 17 Authorized Expenditures are $1,282,100 and FY18                                                                      
     Budget Request is $1,465,700 a difference of $183,600,                                                                     
     therefore $183,600 was deleted.                                                                                            
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
2:10:13 PM                                                                                                                    
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. She  noted the reduction  was to  personal services,                                                                    
but it could  be taken out of any line  item the Division of                                                                    
Libraries, Archives and Museums chose.                                                                                          
                                                                                                                                
Representative  Ortiz  was  opposed  to  the  amendment.  He                                                                    
stated that  if the museum  budget was cut beyond  a certain                                                                    
point,  revenues  from  admission  fees  (program  receipts)                                                                    
would  be lost,  further  reducing the  budget. He  believed                                                                    
there  needed to  be critical  mass of  funded positions  to                                                                    
keep the  museum open  and generating  revenue to  offset as                                                                    
many  operational costs  as possible,  while protecting  the                                                                    
state's cultural heritage and artifacts.                                                                                        
                                                                                                                                
Representative Grenn  asked how  many museums  the amendment                                                                    
would impact.                                                                                                                   
                                                                                                                                
Representative Wilson  answered that the  amendment impacted                                                                    
the museum in Juneau.                                                                                                           
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Pruitt, Thompson, Tilton, Wilson                                                                               
OPPOSED: Guttenberg, Kawasaki, Ortiz, Gara, Seaton, Foster                                                                      
                                                                                                                                
The MOTION to adopt Amendment H DOE 27 FAILED (5/6).                                                                            
                                                                                                                                
2:12:36 PM                                                                                                                    
                                                                                                                                
Representative Thompson  MOVED to  ADOPT Amendment H  DOE 28                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Online with Libraries (OWL)                                                                                                
     H DOE 28 - Reduction to Online with Libraries                                                                              
     Offered by Representative Thompson                                                                                         
                                                                                                                                
     This  is a  reduction to  services and  grants/benefits                                                                    
     for the Online with  Libraries program.  This reduction                                                                    
     will  not impact  the classroom,  but  will reduce  the                                                                    
     amount   of  grants   available  to   public  libraries                                                                    
     providing  internet  service.  Internet  services  have                                                                    
     become cheaper  and more accessible,  and as  the state                                                                    
     looks  to   balance  the  budget,  funding   should  be                                                                    
     prioritized towards the core K-12 education services.                                                                      
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Thompson read  the amendment description [see                                                                    
above]. He  elaborated that  the OWL  program began  in 2011                                                                    
with federal  funds provided  through the  American Recovery                                                                    
and  Reinvestment  Act  (ARRA)   of  2009  and  administered                                                                    
through  the Broadband  Technology Opportunities  Program of                                                                    
the  U.S. Department  of  Commerce. In  2013  the state  had                                                                    
funded  the  OWL  project, which  was  renamed  Online  with                                                                    
Libraries Program.  The program was an  example of accepting                                                                    
federal money, but  then losing the funds and  having to pay                                                                    
for the program with state  funds. He believed that in times                                                                    
of  fiscal uncertainty  the state  needed to  prioritize its                                                                    
resources  and  focus funding  to  programs  related to  the                                                                    
classroom. The  state needed to encourage  local communities                                                                    
to contribute to internet services.  He furthered that local                                                                    
community  contributions  were grossly  disproportionate  to                                                                    
the subsidy cost. He clarified  that the reduction would not                                                                    
end  the OWL  program, it  would only  reduce the  amount of                                                                    
internet services subsidized by the state.                                                                                      
                                                                                                                                
Representative  Ortiz   spoke  against  the   amendment.  He                                                                    
detailed  that a  reduction in  $140,000  to services  meant                                                                    
that DEED  would need  to cut  maintenance on  60 of  the 95                                                                    
videoconference endpoints in  public libraries statewide. As                                                                    
maintenance  ended the  endpoint  would quickly  go dark  as                                                                    
software enhancements  to the hardware halted.  He furthered                                                                    
that  staff  would  be  unable to  arrange  for  repairs  on                                                                    
endpoints. He  relayed the videoconference network  would be                                                                    
reduced by 63 percent.  According to the libraries receiving                                                                    
the OWL  grant for internet,  the loss of the  funding would                                                                    
force  them to  cut  internet completely.  The reduction  of                                                                    
$60,000 to OWL  grants from the current  $153,000 meant that                                                                    
39 percent  of public libraries receiving  OWL subsidy would                                                                    
go dark; 10 of the 25  libraries would lose internet for the                                                                    
public and  for the  videoconference network. In  many cases                                                                    
the  libraries provided  the only  public internet  to their                                                                    
communities and patrons would no  longer have the ability to                                                                    
apply  for  the  Permanent   Fund  Dividend  (PFD),  fishing                                                                    
licenses,  or  take  advantage of  other  online  government                                                                    
services.                                                                                                                       
                                                                                                                                
2:15:44 PM                                                                                                                    
                                                                                                                                
Representative Wilson  spoke in favor of  the amendment. She                                                                    
had a  hard time believing  many people would not  use their                                                                    
phones for the  services. She stated that the  grant went to                                                                    
urban libraries as well - it  was based on the percentage of                                                                    
people in  communities. She added that  most communities had                                                                    
provided  the services  long before  2011  when the  federal                                                                    
funding had  been received.  She believed  it may  have been                                                                    
leftover  federal stimulus  money.  She  continued that  the                                                                    
program  had  been  funded completely  with  federal  money,                                                                    
mostly  to establish  the infrastructure.  She believed  the                                                                    
intention had  been for communities  to implement a  plan to                                                                    
pay  for maintaining  the services.  She  remarked that  she                                                                    
would love to see  documentation showing which libraries had                                                                    
issues and  which could operate  the services on  their own.                                                                    
She agreed  that several libraries  may be  more challenged;                                                                    
however, she  believed the majority  could come up  with the                                                                    
funding. She  concluded that  information from  DEED showing                                                                    
which  libraries were  having  problems  with funding  would                                                                    
have  been  very  helpful. She  believed  urban  communities                                                                    
could make up the difference in their libraries.                                                                                
                                                                                                                                
Vice-Chair  Gara was  opposed  to the  amendment. He  stated                                                                    
that for many years people had  been trying to cut OWL, with                                                                    
some  success at  times.  He believed  the  response -  that                                                                    
Alaska  should operate  as  one  state not  two  - had  been                                                                    
compelling. For  example, a resident  in Naknek  could spend                                                                    
five  minutes  on  their  phone waiting  for  a  website  to                                                                    
download. He discussed that OWL  helped students do research                                                                    
and  there had  been times  when the  program helped  people                                                                    
take online courses. He stressed  that the state's education                                                                    
system  was unequal  as it  was.  He referred  to the  merit                                                                    
scholarship  program  requiring  students  to  take  certain                                                                    
courses  to be  eligible for  the scholarship.  He explained                                                                    
that students  may have  the ability  to access  the courses                                                                    
with OWL.                                                                                                                       
                                                                                                                                
Representative Guttenberg  was opposed to the  amendment. He                                                                    
believed in some ways the  amendment went back to the intent                                                                    
language  in an  amendment  he had  offered  related to  the                                                                    
Regulatory Commission of Alaska  (RCA). He stressed the high                                                                    
cost of  broadband in Alaska  and its  limited availability.                                                                    
He   shared  that   the   Lower   Kuskokwim  district   paid                                                                    
$15,375,000, Southwest  regions paid $2,500,000,  the Tanana                                                                    
City School paid $450,000, St.  Mary's School paid $450,000,                                                                    
and the  North Slope Borough  paid $3 million.  He supported                                                                    
helping communities pay for the service.                                                                                        
                                                                                                                                
Representative Pruitt spoke in  support of the amendment. He                                                                    
stated  the situation  was a  consequence of  taking federal                                                                    
money; it  happened over  and over.  He explained  that when                                                                    
the state took federal money  it became that the state could                                                                    
not live  without it and ended  up having to foot  the bill.                                                                    
He added that  the OWL program was a small  cost compared to                                                                    
other  examples. He  referred to  testimony indicating  that                                                                    
many  communities  would  not have  broadband.  However,  he                                                                    
thought the  amendment related  to a  software update  to 60                                                                    
endpoints, which  did not sound  like it would mean  the end                                                                    
of broadband for  most of the state. He noted  that he would                                                                    
be strongly  supportive if $200,000 could  provide broadband                                                                    
to  the entire  state; however,  that was  not the  case. He                                                                    
continued that  the state had  decided to jump into  the OWL                                                                    
program, which  it now was  responsible for  maintaining. He                                                                    
wondered if  the state should keep  maintaining the program.                                                                    
He reiterated that federal money was never free.                                                                                
                                                                                                                                
2:21:10 PM                                                                                                                    
                                                                                                                                
Representative Thompson  provided wrap up on  the amendment.                                                                    
He  emphasized  the amendment  did  not  impact schools.  He                                                                    
explained that  the goal was  to free  up money in  order to                                                                    
have more  money to keep in  schools. He referred to  a list                                                                    
of  the  25 communities  with  OWL  assistance. He  stressed                                                                    
there should  be more local  participation in the  costs. He                                                                    
believed there should  be more fees charged  for the service                                                                    
(e.g. a  fee should be  paid for the use  of videoconference                                                                    
equipment).  He believed  the legislature  had been  working                                                                    
over   the  past   couple  of   years   to  increase   local                                                                    
participation to  add funding to the  program. He reiterated                                                                    
that the  amendment did  not impact  schools and  would keep                                                                    
the money in the classroom.                                                                                                     
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg,  Kawasaki, Ortiz, Gara,  Grenn, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DOE 28 FAILED (4/7).                                                                            
                                                                                                                                
2:22:45 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  29                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DOE 29 - OWL 5 percent Reduction                                                                                         
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces  Online with Libraries component                                                                    
     by  5  percent  ($33,090).  These funds  are  given  to                                                                    
     libraries throughout  Alaska and leaves $628,710  to be                                                                    
     utilized for this program                                                                                                  
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson  that the amendment would  implement a                                                                    
5 percent reduction  to the OWL program.  She clarified that                                                                    
the program had been started  in order to get equipment into                                                                    
the  state's  public  libraries. However,  the  program  had                                                                    
become about  maintaining service versus what  the grant had                                                                    
been  initially intended  for.  She  believed the  situation                                                                    
would be perpetuated into the  future unless the legislature                                                                    
implemented  a  step-down  approach.  She  referred  to  the                                                                    
amendment description [see above].                                                                                              
                                                                                                                                
Representative  Ortiz  stated  that  his  previous  comments                                                                    
related to OWL stood. He spoke  to two letters in support of                                                                    
OWL. The first  was from the rural community  of Hollis. The                                                                    
letter addressed  how people attended disability  and social                                                                    
security  hearings,  and  other   with  the  technology.  He                                                                    
explained  the  OWL program  gave  people  living in  remote                                                                    
areas access to those  type of things. Additionally, classes                                                                    
were  offered  for  early  childhood  certification,  marine                                                                    
safety, health  administration, and other. He  concluded the                                                                    
service was critical for communities like Hollis.                                                                               
                                                                                                                                
Vice-Chair  Gara  stressed that  the  funding  had not  been                                                                    
increasing. He emphasized that it had been cut if anything.                                                                     
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  spoke to  duplication of  services in  communities. She                                                                    
stated it  cost millions of  dollars for E-rate  services to                                                                    
some communities.  She did  not know why  the state  was not                                                                    
utilizing  the   University  or  a  K-12   program  for  the                                                                    
services.  She explained  that the  OWL  program applied  to                                                                    
public libraries,  while schools  were having  to contribute                                                                    
substantial  amounts. She  believed combining  efforts would                                                                    
lower costs. She summarized that  the amendment would take 5                                                                    
percent or $33,000 from the program.                                                                                            
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz, Gara, Grenn, Guttenberg, Seaton, Foster                                                                         
                                                                                                                                
Representative Kawasaki was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H DOE 29 FAILED (4/6).                                                                            
                                                                                                                                
2:26:15 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOE  30                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Postsecondary Education Commission                                                                                  
     WWAMI Medical Education                                                                                                    
     H DOE 30 - Eliminate funding for WWAMI                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  the  funding  of the  contract                                                                    
     with the  University of Washington, School  of Medicine                                                                    
     for  WWAMI (Washington,  Wyoming,  Alaska, Montana  and                                                                    
     Idaho) from the Higher Education  Fund. This is not the                                                                    
     intended use  of the Higher Education  Fund and funding                                                                    
     the  contract  with  these  funds  could  endanger  the                                                                    
     Governor's   Performance  Scholarships.   Therefore,  a                                                                    
     reduction of  $3,070,800 is made  to the  Services line                                                                    
     to eliminate the funding for this program.                                                                                 
                                                                                                                                
Co-Chair Foster OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative  Wilson explained  that the  state was  using                                                                    
higher   education  funds   totaling   $3,070,800  for   the                                                                    
Washington,  Wyoming,  Alaska,  Montana, and  Idaho  (WWAMI)                                                                    
program. She detailed  that the program was  a contract with                                                                    
the  University  of  Washington. She  referred  to  numerous                                                                    
discussions about  use of  the Higher  Education Fund  - she                                                                    
believed  the legislature  had removed  the funding  when it                                                                    
came to  pension. She stressed  that the fund was  not meant                                                                    
to be  used for  the program. She  elaborated that  the fund                                                                    
had  been put  aside in  order for  eighth graders  and high                                                                    
school  students to  take stronger  courses and  prepare for                                                                    
college. She stated that the  WWAMI program was for students                                                                    
in medical school. She did  no support using the funding put                                                                    
aside to help  high school students for  medical students or                                                                    
the  pension  program.  She  believed  the  real  discussion                                                                    
should be about  whether the state could  continue to afford                                                                    
the  program.  She  was  interested  in  knowing  where  the                                                                    
funding was coming  from and where the  students were going.                                                                    
She  did  not  support  taking   money  out  of  the  Higher                                                                    
Education Fund.                                                                                                                 
                                                                                                                                
Representative  Ortiz agreed  with the  prior speaker  about                                                                    
the use of  the Higher Education Fund  for Public Employees'                                                                    
Retirement  System (PERS)  and  Teachers' Retirement  System                                                                    
(TRS),   which  would   potentially  impact   the  long-term                                                                    
solvency  of  the  fund. However,  he  stressed  that  WWAMI                                                                    
funding did  not jeopardize or  impact the  fund's long-term                                                                    
solvency.  He discussed  the current  physician shortage  in                                                                    
Alaska. He  detailed that the  prior summer the  Mat-Su area                                                                    
had lost seven primary care  physicians to retirement and it                                                                    
had not  been able  to replace them.  The region  was having                                                                    
great difficulty trying to fill  in with nurse practitioners                                                                    
and  physician assistants.  He  highlighted  that the  WWAMI                                                                    
program  had a  return  rate  to practice  in  Alaska of  80                                                                    
percent.  He   furthered  that  WWAMI  graduates   chose  to                                                                    
practice in  Alaska's critical physician shortage  areas, as                                                                    
the  majority   of  WWAMI  students  entered   primary  care                                                                    
specialists.  He  elaborated  that  the  program  was  cost-                                                                    
effective.  He  mentioned the  $4,062  per  capita cost  for                                                                    
medical  education in  Alaska compared  to  North Dakota  at                                                                    
$20,000.                                                                                                                        
                                                                                                                                
Representative Wilson stated that  the amendment had nothing                                                                    
to do  with whether the program  was good or bad,  but about                                                                    
whether  or not  using  the Higher  Education  Fund was  the                                                                    
appropriate  fund source.  She reasoned  that anytime  money                                                                    
was taken from  a fund it would have an  impact. She did not                                                                    
support  utilizing  the  fund for  something  that  was  not                                                                    
intended. She  stated they may  as well take the  funds from                                                                    
the Power Cost Equalization Fund  or any other fund. She did                                                                    
not  know  why general  funds  had  not been  utilized.  She                                                                    
relayed  she   had  offered  the  amendment   to  trigger  a                                                                    
conversation  about the  funding and  program. She  believed                                                                    
the impact could  be very negative if  the program continued                                                                    
to grow. She continued  that children were increasingly more                                                                    
ready  to go  to college,  take  hard courses,  and stay  in                                                                    
Alaska to  do it. She  stressed that  the only place  to use                                                                    
the scholarship program funded by  higher education fund was                                                                    
in Alaska.                                                                                                                      
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson                                                                                                
OPPOSED:   Ortiz,   Thompson,   Gara,   Grenn,   Guttenberg,                                                                    
Kawasaki, Foster, Seaton                                                                                                        
                                                                                                                                
The MOTION to adopt Amendment H DOE 30 FAILED (3/8).                                                                            
                                                                                                                                
2:31:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton noted the  committee would address Amendment                                                                    
L  H SAP  23,  which  had been  held  over  from a  previous                                                                    
meeting.  The   amendment  was   located  in   the  language                                                                    
amendment packet on page 5.                                                                                                     
                                                                                                                                
Representative Pruitt  MOVED to ADOPT  Amendment L H  SAP 23                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     L H  SAP 23  - Transfer  all funds  from ISP  and AKLNG                                                                    
     funds to UGF.                                                                                                              
     Offered by Representative Pruitt                                                                                           
     30GH1855U.15                                                                                                               
                                                                                                                                
     This   amendment    transfers   the    unexpended   and                                                                    
     unobligated balance  of the In-State Pipeline  Fund and                                                                    
     the  Alaska Natural  Gas Pipeline  Fund to  the general                                                                    
     fund.                                                                                                                      
                                                                                                                                
     Note: The  amendment has an  effective date of  July 1,                                                                    
     2017. May  want include a  specific lapse date  of June                                                                    
     30, 2017.                                                                                                                  
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Pruitt  MOVED to AMEND  Amendment L H  SAP 23                                                                    
(copy  on  file)  with  Amendment  30-GH1855\U.23  (Wallace,                                                                    
3/8/17) (copy on file):                                                                                                         
                                                                                                                                
     Page 70, following line 2:                                                                                                 
     Insert new subsections to read:                                                                                            
     "(l) The  sum of  $21,249,400 is appropriated  from the                                                                    
     in-state natural  gas pipeline  fund (AS  31.25.100) to                                                                    
     the  Alaska   higher  education  investment   fund  (AS                                                                    
     37.14.750).                                                                                                                
     (m)  The sum  of $78,144,600  is appropriated  from the                                                                    
     Alaska   liquefied  natural   gas   project  fund   (AS                                                                    
     31.25.110)  to the  Alaska higher  education investment                                                                    
     fund (AS 37.14.750."                                                                                                       
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair Seaton clarified  that the amendment 30-GH1855\U.23                                                                    
to Amendment  L H SAP 23  would insert a new  subsection. He                                                                    
read from the amendment description [see above].                                                                                
                                                                                                                                
Vice-Chair Gara  WITHDREW his OBJECTION to  the amendment to                                                                    
Amendment  L H  SAP 23.  There being  NO further  OBJECTION,                                                                    
Amendment  30-GH1855\U.23  to  Amendment  L  H  SAP  23  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
Representative  Pruitt reviewed  the  amended amendment.  He                                                                    
explained  that the  amendment reflected  a continuation  of                                                                    
the discussion on  how the legislature wanted  to handle the                                                                    
[proposed   AKLNG]   instate   gasline.  He   believed   the                                                                    
legislature should  be responsible  for making  the decision                                                                    
on how to go forward with  the project. He stated that "with                                                                    
this  money out  there" it  had put  the legislature  in the                                                                    
position where it  did not have the control  it should have.                                                                    
The intent of the legislature had  been to go forward with a                                                                    
specific  project; however,  that project  had morphed  into                                                                    
something else.  He continued that the  legislature had been                                                                    
consigned to  sitting on the sideline  without really having                                                                    
the ability to participate in  the discussion. He noted that                                                                    
at times  the legislature had  sought to participate  in the                                                                    
discussion by  adding a couple  of members to the  board and                                                                    
other.  He believed  the legislature  needed to  ensure that                                                                    
any  future expenditures  were not  easy for  Alaska Gasline                                                                    
Development Corporation (AGDC) to  receive. He believed AGDC                                                                    
should be  required to come  back to the legislature  for it                                                                    
to concur with the direction of the project.                                                                                    
                                                                                                                                
Representative  Pruitt  continued  that  he  believed  AKLNG                                                                    
should  be a  capital  project -  it  was an  infrastructure                                                                    
discussion. He  emphasized the  project should  be competing                                                                    
for  funds with  other infrastructure  projects. He  was not                                                                    
confident  the  funding  would  cover  the  initial  Federal                                                                    
Energy Regulatory  Commission (FERC) licensing. He  noted he                                                                    
was not trying to stop the  project. He stated that the FERC                                                                    
licensing  would  be  value-in-hand.   He  believed  it  was                                                                    
appropriate to  consider the  project annually  to determine                                                                    
how far  along the  project was in  the process  and whether                                                                    
the  legislature thought  the  project  should continue.  He                                                                    
wanted  to  ensure that  funding  for  the project  did  not                                                                    
continue  without  the  approval   of  the  legislature.  He                                                                    
believed it  was important to  move the funds to  the Higher                                                                    
Education  Investment  Fund.  He  explained  that  when  the                                                                    
legislature had invested  the money into AGDC,  the idea had                                                                    
been  to  set the  money  aside  to  invest in  the  state's                                                                    
future. He reasoned that if it  could not be invested in the                                                                    
state's future  in that capacity, the  state should continue                                                                    
to invest it  in its future in another way  - to provide for                                                                    
scholarships  for  students.  He  asked  members  for  their                                                                    
support of the fund change.                                                                                                     
                                                                                                                                
The OBJECTION was MAINTAINED.                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson                                                                                                
OPPOSED:  Thompson,   Gara,  Grenn,   Guttenberg,  Kawasaki,                                                                    
Ortiz, Seaton, Foster                                                                                                           
                                                                                                                                
The MOTION to  adopt Amendment L H SAP 23  as amended FAILED                                                                    
(3/8).                                                                                                                          
                                                                                                                                
2:39:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:54:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DEC  1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Administration                                                                                                             
     Office of the Commissioner                                                                                                 
     H DEC 1 - Eliminate Special Assistant position                                                                             
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  the Special  Assistant to  the                                                                    
     Commissioner  and   funding  from  the  FY   18  budget                                                                    
     request.  Although this  position  is partially  funded                                                                    
     with Federal  funds, general funds are  deleted for the                                                                    
     total cost of the position  as the federal funds can be                                                                    
     utilized for the 5 remaining positions.                                                                                    
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair Foster  spoke against  the amendment.  He responded                                                                    
that the Department of  Environmental Conservation (DEC) had                                                                    
one special  assistant who operated  as the  conduit between                                                                    
the department  and the legislature.  He furthered  that the                                                                    
commissioner's office had been cut  over 25 percent since FY                                                                    
15 and the elimination of  the position would be detrimental                                                                    
to  the legislature's  ability  to  effectively and  quickly                                                                    
communicate with the department.                                                                                                
                                                                                                                                
Representative  Grenn  asked  about the  amount  of  federal                                                                    
funding referenced by the amendment sponsor.                                                                                    
Co-Chair  Seaton   noted  the  sponsor  could   address  the                                                                    
question during wrap up on the amendment.                                                                                       
                                                                                                                                
Vice-Chair  Gara remarked  that  typically  when there  were                                                                    
federal  funds  they  matched  a salary.  He  asked  if  the                                                                    
amendment  sponsor  was saying  the  federal  funds for  the                                                                    
upper staff were not already  receiving their maximum match.                                                                    
If so,  he wondered how  they would use  additional matching                                                                    
funds.                                                                                                                          
                                                                                                                                
Representative  Wilson  answered  it was  not  general  fund                                                                    
match; it was general fund. She  did not include how much it                                                                    
was, but there  were positions funded by  general funds left                                                                    
within  the five  remaining positions  in order  for federal                                                                    
funding to be utilized in  their salaries. She reasoned that                                                                    
if  the cost  to fund  the position  was paid  personally by                                                                    
legislators  it would  be $29,400  per person.  She believed                                                                    
the  position did  good work,  but she  believed the  duties                                                                    
could be absorbed by the department.                                                                                            
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 1 FAILED (4/7).                                                                             
                                                                                                                                
2:57:36 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DEC  4                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Environmental Health                                                                                                       
     Food Safety and Sanitation                                                                                                 
     Unrestricted general funds with Oil Hazard Prevention                                                                      
     fund                                                                                                                       
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment makes a  funding source change replacing                                                                    
     general  fund  with  available funds  in  the  Oil  and                                                                    
     Hazardous  Substance  Release Prevention  and  Response                                                                    
     Fund.  As noted  in  the Department  of Revenue's  Fall                                                                    
     Revenue Sources book, in  2016, the Legislature altered                                                                    
     the motor  fuel tax  to include refined  fuel surcharge                                                                    
     of $0.0095 per  gallon on non-aviation fuel  as well as                                                                    
     a  certain non-motor  fuels such  as home  heating oil.                                                                    
     The new  surcharge raised  $6.5 million  in FY  16, its                                                                    
     first year  in effect  and is  projected to  raise $7.6                                                                    
     million in FY 17 and $7.7 million in FY 18.                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative   Wilson   explained   the   amendment.   The                                                                    
amendment would move  $587,000 from the General  Fund to the                                                                    
Oil  Hazard Prevention  Fund. She  furthered  that the  fund                                                                    
continuously made money because  the state charged a $0.0095                                                                    
[per  gallon]   surcharge  on   refined  fuels,   which  was                                                                    
deposited  into  the  Oil and  Hazardous  Substance  Release                                                                    
Prevention and  Response Fund. She noted  that the amendment                                                                    
was  unrelated to  the  new  motor fuel  tax  fund that  was                                                                    
included  in other  legislation.  The  new surcharge  raised                                                                    
$6.5  million in  FY 16,  its first  year in  effect and  is                                                                    
projected to  raise $7.6 million  in FY 17 and  $7.7 million                                                                    
in FY 18.                                                                                                                       
                                                                                                                                
Co-Chair  Foster spoke  in opposition  to the  amendment. He                                                                    
countered  that  the  funds   from  the  Oil  and  Hazardous                                                                    
Substance   Release  Prevention   and  Response   Fund  were                                                                    
designated to  work related to  response and  prevention. He                                                                    
referred  to the  surcharge mentioned  in the  amendment and                                                                    
clarified that it was not  excess revenue - it was necessary                                                                    
to  sustain the  fund over  the long-term  and the  fund was                                                                    
projected  to be  depleted  by  FY 25.  He  believed it  was                                                                    
important to preserve the fund for its designated use.                                                                          
                                                                                                                                
Representative   Wilson   surmised   that  the   state   was                                                                    
continuously putting  money into the  fund and the  only way                                                                    
the  account was  depleted was  when a  person could  not be                                                                    
accountable for a spill. She  continued that the state would                                                                    
clean up  the spill, sue  the party, and collect  the money.                                                                    
Alternatively, if a person was  responsible for a spill they                                                                    
received a  bill from DEC.  She explained that the  fund was                                                                    
never meant  to be  utilized and  not replenished.  The fund                                                                    
was replenished in  two ways - by offenders  and through the                                                                    
surcharge.  She did  not  see  how the  fund  would ever  be                                                                    
depleted by FY 25.                                                                                                              
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 4 FAILED (4/7).                                                                             
                                                                                                                                
3:01:04 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DEC  6                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Laboratory Services                                                                                                        
     H DEC 6 - Reduction  in personal services for positions                                                                    
     deleted by the Department (continued)                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department  deleted two  positions  in  the FY  18                                                                    
     budget request  without taking  a funding  reduction in                                                                    
     the  Personal  Services  line item  for  the  positions                                                                    
     deleted.     The  FY  2017  budgeted   cost  for  these                                                                    
     positions was  $158,857. This amendment deletes  the FY                                                                    
     17  budgeted position  costs that  were not  deleted by                                                                    
     the Department.                                                                                                            
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Co-Chair  Foster spoke  to his  objection. He  detailed that                                                                    
the positions  had been deleted due  to undesignated general                                                                    
fund  (UGF) reductions  made  in FY  17.  He explained  that                                                                    
reducing the  funding again  in FY 18  would result  in more                                                                    
positions  being  deleted  by the  department,  which  would                                                                    
impact the division's ability to operate effectively.                                                                           
                                                                                                                                
Representative Wilson  replied that  the money had  not been                                                                    
deleted. She  furthered that if  the money had  been deleted                                                                    
the budget book for FY 17  would have listed the PCN numbers                                                                    
and zero  funding. She explained  that the funding  had been                                                                    
listed next to the PCNs.                                                                                                        
                                                                                                                                
Co-Chair Foster 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 to adopt Amendment H DEC 6 FAILED (4/7).                                                                             
                                                                                                                                
3:03:02 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DEC  7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DEC  7 - Fund  source change replacing  general funds                                                                    
     with the Oil and Hazardous Prevention fund.                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment makes a  funding source change replacing                                                                    
     general  funds  with available  funds  in  the Oil  and                                                                    
     Hazardous  Substance  Release Prevention  and  Response                                                                    
     Fund.  As noted  in  the Department  of Revenue's  Fall                                                                    
     Revenue Sources book, in  2016, the Legislature altered                                                                    
     the motor  fuel tax  to include refined  fuel surcharge                                                                    
     of $0.0095 per  gallon on non-aviation fuel  as well as                                                                    
     a  certain non-motor  fuels such  as home  heating oil.                                                                    
     The new  surcharge raised  $6.5 million  in FY  16, its                                                                    
     first year  in effect  and is  projected to  raise $7.6                                                                    
     million in FY 17 and $7.7 million in FY 18.                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].  She stated it was  a good time to  utilize the                                                                    
funds  because the  fund continued  to  replenish as  people                                                                    
purchased the associated fuels.                                                                                                 
                                                                                                                                
Co-Chair Foster  spoke to his  objection. He  explained that                                                                    
the  funds  from the  Oil  and  Hazardous Substance  Release                                                                    
Prevention  and  Response  Fund   were  designated  to  work                                                                    
related to response and prevention.  The amendment would put                                                                    
undue pressure on  an already strained fund.  He believed it                                                                    
was important to preserve the fund for its designated use.                                                                      
                                                                                                                                
Representative  Wilson  replied  that   the  fund  had  been                                                                    
strained in the  past, but it was no longer  strained in the                                                                    
same fashion.  She stated it  was recurring at a  level that                                                                    
was more than  sufficient to take on the  role considered in                                                                    
the amendment.                                                                                                                  
                                                                                                                                
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,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 7 FAILED (4/7).                                                                             
                                                                                                                                
3:05:20 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  MOVED to  ADOPT  Amendment  H DEC  8                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DEC 8 - Eliminate  CPVEC funds for Shellfish Biotoxin                                                                    
     and Growing Water Testing Program                                                                                          
     Offered by Representative Pruitt                                                                                           
                                                                                                                                
     Since 2009 CPVEC funds have  been used to pay a portion                                                                    
     of shellfish biotoxin and water  testing. This year the                                                                    
     Governor's  budget request  pays the  entire cost  from                                                                    
     the  fund.  This is  a  questionable  use of  passenger                                                                    
     vessel taxes,  but also an indirect  expenditure to the                                                                    
     department that needs to look  to increased fees to pay                                                                    
     the costs related to lab testing.                                                                                          
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Pruitt addressed  the amendment and explained                                                                    
that the state  was involved in animal  testing. He detailed                                                                    
that  shellfish biotoxins  were injected  in female  mice to                                                                    
determine  how long  it  would  take for  them  to die  from                                                                    
paralytic shellfish poisoning. He  detailed that the program                                                                    
used   cruise   ship   funding,  which   he   believed   was                                                                    
questionable.  He  did not  believe  the  work was  directly                                                                    
related  to  cruise  ships. Additionally,  he  believed  the                                                                    
issue   represented  a   good   example   of  the   indirect                                                                    
expenditures   discussion.   He  questioned   whether   some                                                                    
industries  should have  to pay  for something  that another                                                                    
industry benefitted from  for free (paid for  by the state).                                                                    
He  suggested there  should be  consideration of  having the                                                                    
industry participate in ensuring  there were not issues with                                                                    
the biotoxins potentially in the  shellfish. He believed the                                                                    
issue  pertained  to  a  key   piece  of  a  fee-for-service                                                                    
discussion the committee had already had.                                                                                       
                                                                                                                                
Co-Chair Foster  spoke to his objection.  The department did                                                                    
not  believe the  commercial shellfish  industry could  bear                                                                    
the additional  cost and fees  to cover the  funding without                                                                    
negatively  impacting a  budding  industry's  ability to  do                                                                    
business. He  noted that the  industry already paid  fees in                                                                    
food   safety   for   permitted   growing   operations   and                                                                    
harvesters.  He  detailed  that all  sampling  and  shipping                                                                    
costs  to the  environmental  health lab  were  paid by  the                                                                    
industry  as well.  The amendment  would effectively  halt a                                                                    
growing  industry.  He  relayed that  the  subcommittee  had                                                                    
received a  memorandum from the  department stating  that it                                                                    
saw  no negative  ramifications from  use of  the Commercial                                                                    
Passenger  Vessel Environmental  Compliance  Fund. He  added                                                                    
that during testimony  the committee had been  told that the                                                                    
last  thing the  state wanted  was for  someone in  a market                                                                    
outside of Alaska to get  sick because of shellfish sent out                                                                    
from Alaska, which could harm the industry.                                                                                     
                                                                                                                                
Representative  Wilson  asked  who   was  making  them  [the                                                                    
industry] do this. She asked  if DEC was making the industry                                                                    
do  something that  was a  high  enough cost  that it  could                                                                    
result in  putting the industry  out of business.  She noted                                                                    
there  was a  fish processor  in North  Pole who  had to  do                                                                    
everything  at  his  own  cost;  there  had  been  no  state                                                                    
subsidies  to   help  the  individual.  She   asked  if  any                                                                    
subsidies  were provided  by the  state  to industries  that                                                                    
were forced to do the testing.                                                                                                  
                                                                                                                                
3:10:36 PM                                                                                                                    
                                                                                                                                
Representative  Grenn asked  if the  amendment included  the                                                                    
full amount of the FY 18 request.                                                                                               
                                                                                                                                
Representative Pruitt stated  that it was easy  for a person                                                                    
to  believe  that "funds  aren't  being  used, until  you're                                                                    
sued." He  remarked that  based on the  way the  state spent                                                                    
the  money   there  were  2  million   people  [cruise  ship                                                                    
passengers] with the  ability to sue the  state annually. He                                                                    
noted  that the  amendment would  not take  away the  entire                                                                    
proposed funding amount. He believed  it was a gamble to use                                                                    
the  funds  for shellfish  biotoxin  and  water testing.  He                                                                    
clarified that  he was  not asking for  the state  to become                                                                    
the world  importers of poisonous  shellfish. He  was asking                                                                    
for  the  legislature to  be  cognizant  that there  was  an                                                                    
expectation  from any  industry  there would  be  a cost  of                                                                    
doing business that  they would need to  cover. For example,                                                                    
a  small business  owner providing  certain services  had to                                                                    
pay for insurance; a business  with employees had to pay for                                                                    
workers'  compensation; and  other.  He  emphasized that  if                                                                    
part  of  doing  business  for a  company  included  testing                                                                    
shellfish, it  should be included in  the company's business                                                                    
model and factored into the cost  of the loan. He noted that                                                                    
there was  a loan program  in Alaska that  enabled companies                                                                    
to not  pay interest for seven  years to give them  time for                                                                    
their  business to  mature. He  wondered why  the state  was                                                                    
covering the costs.  He thought that it may have  been a pet                                                                    
project by  certain legislators who  had gotten  the funding                                                                    
in  the  past.  He  wanted  to get  back  to  ensuring  that                                                                    
government  could  provide the  services  if  the fees  were                                                                    
covered by the people utilizing the services.                                                                                   
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                               
OPPOSED: Guttenberg, Kawasaki, Ortiz, Gara, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H DEC 8 FAILED (5/6).                                                                             
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DEC  9                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Drinking Water                                                                                                             
     H  DEC   9  -  Reductions  in   personal  services  for                                                                    
     positions deleted by the Department                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department  deleted  an  Environmental  Technician                                                                    
     position in the  FY 18 budget request  without taking a                                                                    
     funding  reduction in  the Personal  Services line  for                                                                    
     the position  deleted.  The  FY 2017 budgeted  cost for                                                                    
     this position  was $71,302. This amendment  deletes the                                                                    
     FY 17 budgeted position costs  that were not deleted by                                                                    
     the Department.                                                                                                            
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
3:14:49 PM                                                                                                                    
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].  She  added  that  if the  desire  was  to  maintain                                                                    
personal services positions, the  same amount could be taken                                                                    
from  travel  services,   commodities,  leases,  grants,  or                                                                    
miscellaneous.                                                                                                                  
                                                                                                                                
Co-Chair Foster  spoke to his  objection. He shared  that he                                                                    
had been  told by DEC  and the Legislative  Finance Division                                                                    
that  the   funding  had  already   been  deleted   for  the                                                                    
positions. He reasoned that reducing  funding again in FY 18                                                                    
would  result  in  more  positions   being  deleted  by  the                                                                    
department,   which  would   impact  the   ability  of   the                                                                    
department's   drinking    water   component    to   operate                                                                    
effectively.                                                                                                                    
                                                                                                                                
Representative Wilson emphasized that  the funding was still                                                                    
there, which was the reason she proposed to remove it.                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Kawasaki,  Ortiz, Gara, Grenn,  Guttenberg, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 9 FAILED (4/7).                                                                             
                                                                                                                                
3:16:35 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DEC  10                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Solid Waste Management                                                                                                     
     H DEC 10 - Deletes two positions and associated                                                                            
     personal services costs                                                                                                    
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  two of  twelve  Environmental                                                                    
     Program  Specialist positions  from  the  FY 18  budget                                                                    
     request   which   will   require  the   Department   to                                                                    
     redistribute  the workload  of these  positions to  the                                                                    
     remaining staff resources.                                                                                                 
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair Foster spoke  to his objection. He  stated that the                                                                    
amendment  would  put  undue   strain  on  an  already  lean                                                                    
program. There  were currently  only 18  positions servicing                                                                    
landfills and  regulating pesticides  for the  entire state.                                                                    
He continued  that further restrictions to  the agency would                                                                    
likely  result  in  an  inability   to  meet  its  statutory                                                                    
obligations.                                                                                                                    
                                                                                                                                
Vice-Chair  Gara believed  the  amendments  were like  "wish                                                                    
amendments." He  furthered it was  like saying "I  wish with                                                                    
fewer people we could do the same amount of work..."                                                                            
                                                                                                                                
Representative Wilson disputed  the statements and requested                                                                    
to stay on topic of the amendment.                                                                                              
                                                                                                                                
Vice-Chair  Gara   stated  that  the  amendment   would  cut                                                                    
positions in  the hope  that other staff  could make  up the                                                                    
work. He believed  that with no evidence, it was  a wish. He                                                                    
remarked that the committee had  been voting on two types of                                                                    
amendments. One  type included cases where  funding had been                                                                    
deleted for  positions and  there was  an attempt  to delete                                                                    
the funding a second time.                                                                                                      
                                                                                                                                
Representative  Wilson  countered   the  depictions  of  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Vice-Chair  Gara  reiterated  his belief  that  the  current                                                                    
amendment represented  a wish (with  no evidence)  that with                                                                    
fewer staff  the same amount of  work could be done.  He did                                                                    
not support the amendment.                                                                                                      
                                                                                                                                
Representative Thompson  spoke in support of  the amendment.                                                                    
He discussed  that in the past  he had been in  business for                                                                    
35 years  and he recalled lean  times in the 1980s  where he                                                                    
learned how  to work  more efficiently with  less personnel.                                                                    
He stressed  it was important for  the state to learn  to do                                                                    
jobs more efficiently  and with less staff due to  a lack of                                                                    
funding. He stressed  it was important to cut  back and that                                                                    
people  needed  to   learn  to  work  harder   and  be  more                                                                    
efficient. He concluded that it  was necessary to find a way                                                                    
to reduce the state's budget.                                                                                                   
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz,  Gara, Grenn, Guttenberg,  Kawasaki, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 10 FAILED (4/7).                                                                            
                                                                                                                                
3:19:42 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DEC  11                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DEC 11  - Fund source change  replacing general funds                                                                    
     with the Oil Hazardous and Prevention fund                                                                                 
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment makes a  funding source change replacing                                                                    
     general  funds  with available  funds  in  the Oil  and                                                                    
     Hazardous  Substance  Release Prevention  and  Response                                                                    
     Fund.  As noted  in  the Department  of Revenue's  Fall                                                                    
     Revenue Sources book, in  2016, the Legislature altered                                                                    
     the motor  fuel tax  to include refined  fuel surcharge                                                                    
     of $0.0095 per  gallon on non-aviation fuel  as well as                                                                    
     a  certain non-motor  fuels such  as home  heating oil.                                                                    
     The new  surcharge raised  $6.5 million  in FY  16, its                                                                    
     first year  in effect  and is  projected to  raise $7.6                                                                    
     million in FY 17 and $7.7 million in FY 18.                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative  Wilson explained  that  the amendment  would                                                                    
replace $704,400  in general funds  with funds from  the Oil                                                                    
and  Hazardous  Substance  Release Prevention  and  Response                                                                    
Fund. She stated that if the  fund was completely at zero in                                                                    
2025, the issue needed to  be brought forward to the finance                                                                    
committee. She  furthered that the  new tax had  been passed                                                                    
in order  to keep  the fund  healthy and  with the  hope the                                                                    
funds  would not  need to  be spent  as costs  were recouped                                                                    
from parties responsible for spills.                                                                                            
                                                                                                                                
Co-Chair Foster  spoke against the  amendment. He  cited the                                                                    
same  argument  he  had spoken  to  in  previous  amendments                                                                    
pertaining  to  the  Oil  and  Hazardous  Substance  Release                                                                    
Prevention  and  Response  Fund.  He  spoke  to  the  fund's                                                                    
solvency  through FY  25.  He agreed  it  was something  the                                                                    
legislature needed  to address  to determine  if adjustments                                                                    
needed to be made. Ultimately  using the funds for the Solid                                                                    
Waste  Management Fund  went against  the fund's  designated                                                                    
purpose of oil spill prevention and response.                                                                                   
                                                                                                                                
Representative Wilson provided wrap up.  She stated it was a                                                                    
good example  of why  there were  not designated  funds. She                                                                    
stated  the constitution  did  not allow  it,  so they  were                                                                    
general funds.  She surmised  if the funds  were put  in one                                                                    
location  the legislature  would not  have to  discuss which                                                                    
place to take them from.                                                                                                        
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara,  Guttenberg, Kawasaki, Ortiz,  Grenn, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 11 FAILED (4/7).                                                                            
                                                                                                                                
3:22:23 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DEC  13                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Water                                                                                                                      
     Water Quality                                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment deletes  1 of 10 Program  Managers, 3 of                                                                    
     36  Program  Specialists  and 1  of  10  Engineers  and                                                                    
     associated personal  service cost of $690,000  from the                                                                    
    Personal Services line of the FY 18 budget request.                                                                         
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson  clarified  that she  had  taken  her                                                                    
amendment drafting  process very seriously.  She underscored                                                                    
there was  nothing about a  wish list. She wished  the state                                                                    
could afford each and every  state worker, but unfortunately                                                                    
that  was not  the case.  She  explained she  had worked  to                                                                    
propose taking a small amount  of funding from various areas                                                                    
in order  to prevent  eliminating an  entire section  of any                                                                    
department. She read the  amendment description [see above].                                                                    
She understood the amendment was  asking state workers to do                                                                    
more with  less. She wished the  state had all the  money in                                                                    
the  world,  but  that  was  not the  case.  She  noted  the                                                                    
legislature  could address  the  issue  again the  following                                                                    
year  if  there were  adverse  impacts  from the  cuts.  She                                                                    
emphasized the  importance of being  smarter with  the money                                                                    
the state had.                                                                                                                  
                                                                                                                                
Co-Chair  Foster spoke  against the  amendment. He  stressed                                                                    
that the division had seen a  reduction of 40 percent and 25                                                                    
positions  over  the  past  three  years.  He  believed  the                                                                    
department  had  taken a  substantial  hit  already and  was                                                                    
operating  very lean.  He  continued  that additional  staff                                                                    
loss would  impact the state's  ability to  maintain primacy                                                                    
of its waste water discharge permitting.                                                                                        
                                                                                                                                
Representative  Wilson responded  that the  state had  taken                                                                    
primacy  of wastewater  from the  federal government,  which                                                                    
was not  cheap. She asked  why the change had  occurred. She                                                                    
expounded that  the state had  taken federal  funding, which                                                                    
had  eventually been  pulled back.  Consequently, the  state                                                                    
was  left paying  for the  service with  general funds.  She                                                                    
remarked  that  it  was  not   always  smarter  to  take  on                                                                    
responsibilities  that  the  federal government  wanted  the                                                                    
state  to do.  She believed  sometimes it  was necessary  to                                                                    
stand  up  for  the  state's residents  by  making  its  own                                                                    
programs.                                                                                                                       
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 13 FAILED (4/7).                                                                            
                                                                                                                                
3:25:33 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DEC  14                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H DEC 14  - Fund source change  replacing general funds                                                                    
     with Oil and Hazardous Prevention Fund                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment makes a  funding source change replacing                                                                    
     general  fund  with  available funds  in  the  Oil  and                                                                    
     Hazardous  Substance  Release Prevention  and  Response                                                                    
     Fund.  As noted  in  the Department  of Revenue's  Fall                                                                    
     Revenue Sources book, in  2016, the Legislature altered                                                                    
     the motor  fuel tax  to include refined  fuel surcharge                                                                    
     of $0.0095 per  gallon on non-aviation fuel  as well as                                                                    
     a  certain non-motor  fuels such  as home  heating oil.                                                                    
     The new  surcharge raised  $6.5 million  in FY  16, its                                                                    
     first year  in effect  and is  projected to  raise $7.6                                                                    
     million in FY 17 and $7.7 million in FY 18.                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  that  the amendment  would                                                                    
replace $2,482,500  in general  funds with funding  from the                                                                    
Oil and Hazardous Prevention Fund.  She stated that although                                                                    
people may think  the Oil and Hazardous  Prevention Fund was                                                                    
dedicated funding, it was still General Fund money.                                                                             
                                                                                                                                
Co-Chair Foster spoke to his  objection. He agreed the funds                                                                    
could  be used  anywhere; however,  he believed  the prudent                                                                    
thing to  do was to use  oil spill response funds  for their                                                                    
designated purpose. He recognized  there had been times when                                                                    
exceptions had  been made, but  he believed it was  a policy                                                                    
call that had to be made.                                                                                                       
                                                                                                                                
Vice-Chair Gara  remarked that the  speaker next to  him had                                                                    
come  up with  a  way to  save money,  which  he had  always                                                                    
supported. He  stated that the  former [House]  Majority had                                                                    
taken over  primacy and  had known it  would cost  the state                                                                    
more  money. He  had  opposed the  move.  He suggested  that                                                                    
perhaps the legislature could revisit  the issue as a way to                                                                    
save money.                                                                                                                     
                                                                                                                                
Representative  Wilson  provided  wrap up.  She  stated  she                                                                    
would have agreed with the  co-chair about touching the fund                                                                    
when talking about per barrel  of oil taxed in the pipeline.                                                                    
She  continued  that the  tax  was  adding pennies  to  each                                                                    
barrel, which used to go into  the fund. She stated that the                                                                    
likelihood  of  a spill  would  most  likely come  from  the                                                                    
pipeline. She  discussed that the legislature  had then made                                                                    
the decision to  include other fuels in the  tax. She stated                                                                    
there was no  difference if there was a motor  fuel tax or a                                                                    
tax on heating fuel and what  it should be utilized for. She                                                                    
stated if  something major happened,  funds would  come from                                                                    
the General  Fund. When  there was  a substantial  amount of                                                                    
money  merely sitting  in the  [Oil and  Hazardous Substance                                                                    
Release Prevention and Response] fund,  it made sense to use                                                                    
a portion.                                                                                                                      
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DEC 14 FAILED (4/7).                                                                            
                                                                                                                                
3:28:50 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  13                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Commercial Fisheries                                                                                                       
     Southeast  Region  Fisheries  Management  H  DFG  13  -                                                                    
     Funding  reductions   in  overtime  pay,   travel,  and                                                                    
     services.                                                                                                                  
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  allocation  has  an  FY   18  budget  request  of                                                                    
     $121,192 for premium pay in  the Personal Services line                                                                    
     item.    This  amendment  reduces  premium  pay  by  25                                                                    
     percent  of  the  amount budgeted  in  anticipation  of                                                                    
     reduced  overtime.  Declining  state  revenues  dictate                                                                    
     that  expenditures  be  reduced by  taking  a  fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner. Therefore, a reduction  of $30,298 is made from                                                                    
     allocation.                                                                                                                
                                                                                                                                
     The  Department  deleted   three  positions  that  were                                                                    
     partially funded  with general  funds, however  made no                                                                    
     reduction in  funding for  the positions  deleted. This                                                                    
     amendment reduces the Personal  Services line of the FY                                                                    
     18 budget  request in this  allocation by  $75,091, the                                                                    
     general fund  portion of the  positions deleted  by the                                                                    
     Department.                                                                                                                
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     were $129,100  and the  FY 18  budget request  for this                                                                    
     line  item  is $187,600  resulting  in  an increase  of                                                                    
     $46,900 over FY 16  actual expenditures. This amendment                                                                    
     makes  a reduction  of $46,900  to  this allocation  to                                                                    
     align  the  FY 18  budget  request  with FY  16  actual                                                                    
     expenditures.                                                                                                              
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for Other Services  were $704,000 and the  FY 18 budget                                                                    
     request for this line item  is $952,100 resulting in an                                                                    
     increase of  $248,100 over  FY 16  actual expenditures.                                                                    
     This amendment  makes a reduction  of $248,100  to this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for  Equipment/Machinery were  $288,800 and  the FY  18                                                                    
     budget  request   for  this   line  item   is  $350,200                                                                    
     resulting in an  increase of $61,400 over  FY 16 actual                                                                    
     expenditures.  This  amendment  makes  a  reduction  of                                                                    
     $61,400 to  this allocation to  align the FY  18 budget                                                                    
     request with FY 16 actual expenditures.                                                                                    
                                                                                                                                
Representative Ortiz OBJECTED.                                                                                                  
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. She elaborated that the  PCNs were 11-1251, of which                                                                    
$63,603  was general  funds; 11-1738,  of which  $10,949 was                                                                    
general  funds; and  11-5078. She  stated other  non-general                                                                    
fund funding had been removed.                                                                                                  
                                                                                                                                
Representative  Ortiz spoke  to  his  objection. He  relayed                                                                    
that his comments  would apply to the  current and following                                                                    
five   or  six   amendments.   He   communicated  that   the                                                                    
department's funding  had been  reduced by 36  percent since                                                                    
FY 15.  He stressed that  the department could no  longer do                                                                    
surveys,  stream analysis,  and  data  collection needed  in                                                                    
order to allow fishermen to  fish at the maximum sustainable                                                                    
yield, which  meant there  were foregone  fish opportunities                                                                    
taking  place  in the  fishing  industry.  He stressed  that                                                                    
fishermen were allowed to catch  less fish, which meant less                                                                    
money for  their families and  less to the state  in landing                                                                    
taxes because  of the  reductions that  had taken  place. He                                                                    
reminded the committee that DFG  had the reputation of doing                                                                    
one  of  the  best  jobs  in  the  world  at  managing  fish                                                                    
resources. He  emphasized it was  being threatened  by level                                                                    
of  reductions  in the  past  several  years. He  read  from                                                                    
prepared remarks:                                                                                                               
                                                                                                                                
     The  amendment specifically  addressed the  premium pay                                                                    
     issue.  Premium pay  was  in  employees' contracts  and                                                                    
     covered  field   work  under  extended   and  hazardous                                                                    
     conditions.  Some   of  the  work  they   do  is  truly                                                                    
     dangerous  and their  unions work  to ensure  that they                                                                    
     are  compensated appropriately.  The Alaska  Department                                                                    
     of  Fish and  Game has  tragically lost  employees over                                                                    
     the years.                                                                                                                 
                                                                                                                                
Representative  Ortiz emphasized  that the  amendments would                                                                    
add  to   the  burden  DFG  was   already  experiencing.  He                                                                    
reiterated  that the  burden had  been  transferred to  lost                                                                    
opportunities  to  the  state's fishermen,  which  hurt  the                                                                    
state's overall economy. He did not support the amendment.                                                                      
                                                                                                                                
Representative Wilson  suggested that the state  should look                                                                    
at  its  fee  structure.   She  stated  "maybe  they're  not                                                                    
upholding  their  portion" or  perhaps  the  fees they  were                                                                    
paying were not going "to  what they are actually being able                                                                    
to  do." She  remarked that  once everything  went into  the                                                                    
General Fund  it was difficult  to determine who  was paying                                                                    
their way and  who was not. She believed going  back to 2016                                                                    
did not seem to be asking that much.                                                                                            
                                                                                                                                
Representative Ortiz 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 to adopt Amendment H DFG 13 FAILED (4/7).                                                                            
                                                                                                                                
3:34:48 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  14                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Central Region Fisheries Management                                                                                        
     H  DFG  14 -  Funding  reduction  for overtime  pay  to                                                                    
     encourage reduced overtime, services, and commodities.                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $95,827                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment reduces  premium pay  by 25  percent of                                                                    
     the   amount  budgeted   in  anticipation   of  reduced                                                                    
     overtime.   Declining  state   revenues  dictate   that                                                                    
     expenditures   be   reduced   by  taking   a   fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner.  Therefore, a  reduction  of  $23,957 is  being                                                                    
     taken in this allocation.                                                                                                  
                                                                                                                                
     The  Department  deleted   eight  positions  that  were                                                                    
     partially funded  with general  funds, however  made no                                                                    
     reduction in  funding for  the positions  deleted. This                                                                    
     amendment reduces the Personal  Services line of the FY                                                                    
     18 budget  request in this allocation  by $115,510, the                                                                    
     general fund  portion of the  positions deleted  by the                                                                    
     Department.                                                                                                                
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for  Equipment/Machinery were  $255,700 and  the FY  18                                                                    
     budget  request   for  this   line  item   is  $355,700                                                                    
     resulting in an increase of  $100,000 over FY 16 actual                                                                    
     expenditures.  This  amendment  makes  a  reduction  of                                                                    
     $100,000 in this  allocation to align the  FY 18 budget                                                                    
     request with FY 16 actual expenditures.                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for Other Services  were $375,400 and the  FY 18 budget                                                                    
     request for  this line item is  $1,150,400 resulting in                                                                    
     an   increase   of   $775,000   over   FY   16   actual                                                                    
     expenditures.  This  amendment  makes  a  reduction  of                                                                    
     $775,000 in this  allocation to align the  FY 18 budget                                                                    
     request with FY 16 actual expenditures.                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for Equipment Fleet  were $88,600 and the  FY 18 budget                                                                    
     request for this line item  is $110,500 resulting in an                                                                    
     increase  of $21,900  over FY  16 actual  expenditures.                                                                    
     This  amendment makes  a reduction  of $21,900  in this                                                                    
     allocation to align the FY 18 budget request with FY                                                                       
     16 actual expenditures.                                                                                                    
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].  She noted it  also allowed for  an opportunity                                                                    
to make  up the 25  percent in  the event of  vacancies. She                                                                    
communicated that other types of funds had been removed.                                                                        
                                                                                                                                
Representative Ortiz spoke against  the amendment. He stated                                                                    
that  the  reductions  would  result  in  reduced  in-season                                                                    
harvest  stock   composition  data  that   guides  in-season                                                                    
management for  Prince William  Sound. The  department would                                                                    
be  forced  to manage  more  conservatively  and fewer  fish                                                                    
would be harvested.                                                                                                             
                                                                                                                                
Representative   Thompson   supported  the   amendment.   He                                                                    
commented that the amendment aligned  numbers with the lower                                                                    
FY  16  numbers.  He  stressed there  was  a  huge  increase                                                                    
underway. He  emphasized that  the legislature  was supposed                                                                    
to  be  trying to  figure  out  how  to reduce  the  budget;                                                                    
however,  the  committee  was   not  currently  achieving  a                                                                    
reduced  budget. He  thought the  budget had  been added  to                                                                    
like crazy  since FY  16. He believed  the increases  were a                                                                    
mistake that was not supported by the public.                                                                                   
                                                                                                                                
Co-Chair  Seaton asked  members  to keep  in mind  mandatory                                                                    
furlough days  (unpaid leave) when asking  employees to take                                                                    
on  other duties.  Additionally,  vacancy factors  indicated                                                                    
unfunded positions;  therefore, there was no  one sitting in                                                                    
the position  to take on  the workload because there  was no                                                                    
funding to fill  them. He believed it was  important to keep                                                                    
in  mind  when looking  at  the  budget books  to  determine                                                                    
something  to delete.  He  strongly  suggested that  members                                                                    
individually  check  with  each   agency  to  determine  the                                                                    
implications moving forward.                                                                                                    
                                                                                                                                
Representative Wilson underscored that  she had not proposed                                                                    
to  remove any  PCNs or  people. She  stated it  had already                                                                    
been  done.  She was  not  asking  people  to take  on  more                                                                    
duties.  She noted  that much  could be  learned by  reading                                                                    
about an agency's  mission, accomplishments, and challenges.                                                                    
She  added that  if  she had  wanted to  make  a blanket  10                                                                    
percent cut she would have  proposed it. She reiterated that                                                                    
the amendment  did not propose  to eliminate  any positions.                                                                    
The amendment merely removed the remaining portions because                                                                     
the other funding had been removed previously. She noted it                                                                     
would remove 25 percent of the overtime.                                                                                        
                                                                                                                                
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, Foster,                                                                      
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DFG 14 FAILED (4/7).                                                                            
                                                                                                                                
3:41:05 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DFG 15                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     AYK Region Fisheries Management                                                                                            
     H DFG 15  - Funding reduction for  overtime pay; delete                                                                    
     funding for positions Department deleted                                                                                   
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  allocation  has  an  FY   18  budget  request  of                                                                    
     $109,062 for premium pay in  the Personal Services line                                                                    
     item.   This amendment  reduces premium  pay by  25% of                                                                    
     the   amount  budgeted   in  anticipation   of  reduced                                                                    
     overtime.   Declining  state   revenues  dictate   that                                                                    
     expenditures   be   reduced   by  taking   a   fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner.  Therefore, a  reduction  of  $27,266 is  being                                                                    
     taken in this allocation.                                                                                                  
                                                                                                                                
     The   Department  deleted   six  positions   that  were                                                                    
     partially funded  with general  funds, however  made no                                                                    
     reduction in  funding for  the positions  deleted. This                                                                    
     amendment reduces the Personal  Services line of the FY                                                                    
     18 budget  request in this allocation  by $121,269, the                                                                    
     general fund  portion of the  positions deleted  by the                                                                    
     Department.                                                                                                                
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for Other Services  were $446,100 and the  FY 18 budget                                                                    
     request for this line item  is $854,900 resulting in an                                                                    
     increase of  $408,800 over  FY 16  actual expenditures.                                                                    
     This amendment  makes a reduction  of $408,800  in this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures. A reduction  of $25,000 is also                                                                    
     made to  Services line item  for State  Equipment Fleet                                                                    
     costs.                                                                                                                     
                                                                                                                                
     The FY 18 budget request of $279,400 in the Travel                                                                         
     line is reduced by $100,000 by this amendment.                                                                             
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson   read  portions  of   the  amendment                                                                    
description  [see above].  She referred  to the  budget book                                                                    
and noted  that the enormous  costs were "done  every year,"                                                                    
but she observed that the  actual costs were much lower. She                                                                    
did  not know  why inflated  costs  were used  or why  major                                                                    
differences  appeared. She  was certain  that the  following                                                                    
year the major  costs would be listed and  the actuals would                                                                    
hopefully  be closer  to FY  16 figures.  Her goal  with the                                                                    
amendment was to ensure it would happen.                                                                                        
                                                                                                                                
Representative  Ortiz   addressed  his  opposition   to  the                                                                    
amendment.  He  detailed  that the  reduction  would  impact                                                                    
biometric support, eliminate  contribution towards triannual                                                                    
crab  trawl  survey,   discontinue  Chinook  salmon  genetic                                                                    
sample collection programs  and analysis, eliminate multiple                                                                    
positions   associated  with   the  Kuskokwim   sockeye  run                                                                    
assessment  in multiple  salmon  tributary weirs  (including                                                                    
all  weirs  funded  by FWS),  discontinue  the  Bethel  test                                                                    
fishery program  in favor of  mainstream sonar  resulting in                                                                    
two  layoffs,  and  other. He  believed  the  amendment  was                                                                    
harmful to  the industry.  He agreed that  reductions needed                                                                    
to  be  found, but  greater  harm  to  the economy  was  not                                                                    
prudent.                                                                                                                        
                                                                                                                                
Representative Wilson  provided wrap  up. She  stressed that                                                                    
when the  positions had been deleted,  the department should                                                                    
have  communicated  if  the funds  were  still  needed.  She                                                                    
emphasized  that the  amendment did  not delete  positions -                                                                    
the  positions  had  been deleted  by  the  department.  She                                                                    
stated the  department should have specified  that the funds                                                                    
were  needed for  travel, to  fund  remaining positions,  or                                                                    
other.  She  reasoned  that the  excess  $121,000  was  most                                                                    
likely being  utilized for  some of  the services  listed by                                                                    
Representative  Ortiz. Her  point  was  that the  department                                                                    
needed to specify where the funds were being used. She                                                                          
wanted to have a better understanding of where the money                                                                        
was going and how it was being spent.                                                                                           
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Pruitt, Thompson, Tilton, Wilson                                                                               
OPPOSED: Kawasaki, Ortiz, Gara, Seaton, Foster                                                                                  
                                                                                                                                
Representative Guttenberg was absent from the vote.                                                                             
                                                                                                                                
The MOTION to adopt Amendment H DFG 15 FAILED (5/5).                                                                            
                                                                                                                                
3:45:49 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DFG 16                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Westward Region Fisheries Management                                                                                       
     H  DFG  16  -  Funding reduction  in  overtime  pay  to                                                                    
     encourage  reduced  overtime;  align budget  to  FY  16                                                                    
     expenditures.                                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  allocation  has  an  FY   18  budget  request  of                                                                    
     $159,085 for premium pay in  the Personal Services line                                                                    
     item.   This amendment  reduces premium  pay by  25% of                                                                    
     the   amount  budgeted   in  anticipation   of  reduced                                                                    
     overtime.   Declining  state   revenues  dictate   that                                                                    
     expenditures   be   reduced   by  taking   a   fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner. Therefore, a reduction  of $39,771 is made from                                                                    
     this allocation.                                                                                                           
                                                                                                                                
     The   Department  deleted   two  positions   that  were                                                                    
     partially funded  with general  funds, however  made no                                                                    
     reduction in  funding for  the positions  deleted. This                                                                    
     amendment reduces the Personal  Services line of the FY                                                                    
     18  budget request  from this  allocation by  $100,862,                                                                    
     the general  fund portion of  the positions  deleted by                                                                    
     the Department.                                                                                                            
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     were $169,600  and the  FY 18  budget request  for this                                                                    
     line  item  is $271,900  resulting  in  an increase  of                                                                    
     $102,300   over  FY   16   actual  expenditures.   This                                                                    
     amendment  makes  a  reduction of  $102,300  from  this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     were $2,353,900 and  the FY 18 budget  request for this                                                                    
     line  item is  $3,167,300 resulting  in an  increase of                                                                    
     $813,400   over  FY   16   actual  expenditures.   This                                                                    
     amendment  makes  a  reduction of  $813,400  from  this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
     FY  2016 actual  expenditures in  the Commodities  line                                                                    
     item were  $618,900 and  the FY  18 budget  request for                                                                    
     this line item is $864,400  resulting in an increase of                                                                    
     $245,500   over  FY   16   actual  expenditures.   This                                                                    
     amendment  makes  a  reduction of  $245,500  from  this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson  read from  portions of  the amendment                                                                    
description  [see   above].  She  added  that   the  amounts                                                                    
combined totaled a $1.3 million decrease.                                                                                       
                                                                                                                                
Representative  Ortiz   spoke  to   his  objection   to  the                                                                    
amendment. He  detailed that the reductions  would result in                                                                    
the  elimination of  funding  for  regional finfish  support                                                                    
staff  and  publications,  more conservative  management  of                                                                    
herring  fisheries, and  the elimination  of aerial  surveys                                                                    
and vessel support. He furthered  that small areas would not                                                                    
open. Funding would be cut  for supply and contract money in                                                                    
the Kodiak  Island limnology lab and  sample processing time                                                                    
would increase, which could impact  hatchery stock plans and                                                                    
other.  He concluded  the  amendment  would mean  additional                                                                    
reductions  on top  of  a 36  percent  reduction, making  it                                                                    
increasingly  more difficult  for the  department to  do its                                                                    
work.                                                                                                                           
                                                                                                                                
Representative   Thompson    remarked   [facetiously]   that                                                                    
apparently  the  state failed  to  do  all of  those  things                                                                    
[listed by Representative Ortiz] in  FY 16 because it lacked                                                                    
the funding. He  reasoned that the work had been  done in FY                                                                    
16  [with  lower funding]  and  he  believed the  department                                                                    
should have the ability to do them at present as well.                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg, Kawasaki, Ortiz, Gara, Grenn, Foster,                                                                      
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DFG 16 FAILED (4/7).                                                                            
                                                                                                                                
3:49:03 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DFG 17                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Commercial Fisheries                                                                                                       
     Statewide Fisheries Management                                                                                             
     H DFG 17  - Funding reduction in  overtime pay, travel,                                                                    
     and services.                                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $32,395                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment reduces  premium pay  by 25  percent of                                                                    
     the   amount  budgeted   in  anticipation   of  reduced                                                                    
     overtime.   Declining  state   revenues  dictate   that                                                                    
     expenditures   be   reduced   by  taking   a   fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner. Therefore,  a reduction of $8,099  is made from                                                                    
     this allocation.                                                                                                           
                                                                                                                                
     The Department  deleted six positions that  were funded                                                                    
     with  general  funds,  however  made  no  reduction  in                                                                    
     funding  for  the  positions  deleted.  This  amendment                                                                    
     reduces the Personal Services line  of the FY 18 budget                                                                    
     request  in this  allocation by  $396,718, the  general                                                                    
     cost of the positions deleted by the Department.                                                                           
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     were $235,700  and the  FY 18  budget request  for this                                                                    
     line  item  is $312,100  resulting  in  an increase  of                                                                    
     $76,400 over FY 16  actual expenditures. This amendment                                                                    
     makes a  reduction of $76,400  from this  allocation to                                                                    
     align  the  FY 18  budget  request  with FY  16  actual                                                                    
     expenditures.                                                                                                              
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     were $4,676,900 and  the FY 18 budget  request for this                                                                    
     line  item is  $6,347,500 resulting  in an  increase of                                                                    
     $1,670,600  over   FY  16  actual   expenditures.  This                                                                    
     amendment  makes a  reduction of  $1,670,600 from  this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Co-Chair  Seaton  advised  that  if the  arguments  for  the                                                                    
amendments  were   the  same  Representative   Wilson  could                                                                    
reference her previous remarks.                                                                                                 
                                                                                                                                
Representative  Wilson  noted  the amounts  were  different.                                                                    
She  read from  portions of  the amendment  description [see                                                                    
above]. The amendment totaled  $2,151,800. She remarked that                                                                    
the work  had been  done in  FY 16;  therefore, she  did not                                                                    
understand why it could not be done in FY 18.                                                                                   
                                                                                                                                
Representative  Ortiz  was  opposed  to  the  amendment.  He                                                                    
detailed that the amendment would  result in the deletion of                                                                    
seven  positions  and would  reduce  travel,  the number  of                                                                    
printed  regulation  books,  a division  fund,  support  for                                                                    
salmon  assessment  in   statewide  reporting,  and  aquatic                                                                    
permit  review. Additionally,  it  would eliminate  programs                                                                    
for  stock  identification  of  sockeye  salmon  harvest  in                                                                    
Bristol Bay, Kodiak, and Cook Inlet.                                                                                            
                                                                                                                                
Vice-Chair Gara stated that  the amendment deleted positions                                                                    
that  had  already been  cut;  therefore,  it represented  a                                                                    
double  deletion. He  suggested that  the amendment  sponsor                                                                    
speak to the Legislative Finance  Division during a break to                                                                    
determine  which   amendments  would  result  in   a  double                                                                    
deletion.                                                                                                                       
                                                                                                                                
3:51:59 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up.  She relayed  that                                                                    
she had  gone through the Legislative  Finance Division. She                                                                    
had found that  "most of the money, except  the General Fund                                                                    
money  that  wasn't  deleted, went  back  after  yesterday's                                                                    
discussion."  She reasoned  the  state must  have been  much                                                                    
smarter with  its money in FY  16 because she had  not heard                                                                    
there were numerous things the state  could not do in 2016 -                                                                    
things that it could suddenly not do in FY 18.                                                                                  
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Kawasaki,  Ortiz, Gara, Grenn,  Guttenberg, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DFG 17 FAILED (4/7).                                                                            
                                                                                                                                
3:52:58 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  18                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Sport Fisheries                                                                                                            
     H DFG 18  - Funding reduction in  overtime pay, travel,                                                                    
     and services.                                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $75,668                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment  reduces  premium  pay by  25%  of  the                                                                    
     amount  budgeted in  anticipation of  reduced overtime.                                                                    
     Declining state  revenues dictate that  expenditures be                                                                    
     reduced by  taking a fiscally conservative  approach to                                                                    
     working hours and that state  services be provided in a                                                                    
     more  effective  and  efficient  manner.  Therefore,  a                                                                    
     reduction  of   $18,917  is  made  from   the  Personal                                                                    
     Services line.                                                                                                             
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     were $229,600  and the FY 18  Governor's budget request                                                                    
     for  this  line  item  is   $326,700  resulting  in  an                                                                    
     increase  of $97,100  over FY  16 actual  expenditures.                                                                    
     This amendment makes a reduction  of $100,000 from this                                                                    
     allocation to  align the FY  18 budget request  with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     were $10,768,400 and the FY  18 budget request for this                                                                    
     line item  is $13,549,300  resulting in an  increase of                                                                    
     $2,780,900  over   FY  16  actual   expenditures.  This                                                                    
     amendment  makes a  reduction of  $1,343,312 from  this                                                                    
     allocation  to  align the  FY  18  budget request  with                                                                    
     FY 16 actual expenditures.                                                                                                 
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative   Wilson   explained   that   the   amendment                                                                    
pertained to a  FY 18 budget request of  $55,014 for premium                                                                    
pay -  a reduction of  25 percent (a reduction  of $13,754).                                                                    
The total  positions in  the department had  been 220  in FY                                                                    
16, 221 in the  FY 17 management plan, and 227  in the FY 18                                                                    
budget  request.   There  had  also  been   an  increase  of                                                                    
$1,101,600 in the  personal services line between  the FY 18                                                                    
management plan and  the FY 18 request.  The amendment would                                                                    
eliminate six  positions in the general  funds of $1,184,866                                                                    
from  the  personal  services  line  of  the  FY  18  budget                                                                    
request.  She believed  the budget  should  at least  revert                                                                    
back to figures in FY 17.                                                                                                       
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz, Gara, Guttenberg, Kawasaki, Foster, Seaton                                                                      
                                                                                                                                
Representative Grenn was absent from the vote.                                                                                  
                                                                                                                                
The MOTION to adopt Amendment H DFG 18 FAILED (4/6).                                                                            
                                                                                                                                
3:54:53 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:55:08 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  19                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Wildlife Conservation                                                                                                      
     H DFG  19 Reduced  funding for  extra pay  to encourage                                                                    
    reduced overtime and eliminates six PFT positions.                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $55,014                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment  reduces  premium  pay by  25%  of  the                                                                    
     amount  budgeted in  anticipation of  reduced overtime.                                                                    
     Declining state  revenues dictate that  expenditures be                                                                    
     reduced by  taking a fiscally conservative  approach to                                                                    
     working hours and that state  services be provided in a                                                                    
     more  effective  and  efficient  manner.  Therefore,  a                                                                    
     reduction of $13,754 is made  from the Personal Service                                                                    
     line of this allocation.                                                                                                   
                                                                                                                                
     Total positions  in the Department  were 220 in  FY 16,                                                                    
     221 in the  FY 17 Management Plan and 227  in the FY 18                                                                    
     budget  request.   There  was   also  an   increase  of                                                                    
     $1,101,600 in  the Personal  Services line  between the                                                                    
     FY  17 Management  Plan  and the  FY  18 request.  This                                                                    
     amendment  deletes 6  positions  and  general funds  of                                                                    
     $1,184,866 from  the Personal Services  line of  the FY                                                                    
     18 budget request for this allocation.                                                                                     
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see  above].  She requested  an  "at  ease" to  review  the                                                                    
amendment. She  believed it was  the same amendment  she had                                                                    
just spoken to.                                                                                                                 
                                                                                                                                
3:55:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:55:49 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Wilson WITHDREW Amendment H DFG 19.                                                                              
                                                                                                                                
3:56:02 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DFG 21                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Support Services                                                                                                 
     Commissioner's Office                                                                                                      
     H DFG  21 Removes Special Assistant  position and align                                                                    
     FY 18 Services request with FY16 expenditures.                                                                             
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  a Special  Assistant  to  the                                                                    
     Commissioner position  and will require  the Department                                                                    
     to redistribute the work load to remaining staff.                                                                          
                                                                                                                                
     FY 2016  actual expenditures in the  Services line item                                                                    
     for Other  Services were  $4,200 and  the FY  18 budget                                                                    
     request for this line item  is $227,100 resulting in an                                                                    
     increase of  $222,000 over  FY 16  actual expenditures.                                                                    
     This  amendment makes  a reduction  of  $37,800 to  the                                                                    
     Services  line  in  this  allocation  and  deletes  all                                                                    
     unrestricted general funds.                                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  that  the amendment  would                                                                    
remove the special assistant  position within the Department                                                                    
of  Fish and  Game (DFG),  which was  currently funded  with                                                                    
interagency receipts of $172,800.                                                                                               
                                                                                                                                
Representative Ortiz  spoke in opposition to  the amendment.                                                                    
He  detailed that  DFG  had two  special  assistants to  the                                                                    
commissioner  - one  served as  the legislative  liaison and                                                                    
worked  on the  department budget  and the  other worked  on                                                                    
food  security and  subsistence on  the Yukon  and Kuskokwim                                                                    
Rivers and  acted as  a liaison  to the  federal subsistence                                                                    
board. In  recent years the  commissioner's office  had lost                                                                    
an assistant  commissioner, a public information  officer, a                                                                    
secretary  I,   and  an  administrative  assistant   II.  He                                                                    
furthered  that when  the deputy  commissioner position  had                                                                    
become vacant,  the department  had shifted  the legislative                                                                    
liaison   and   budget   roles  to   the   new   legislative                                                                    
liaison/special assistant to  the commissioner. He concluded                                                                    
that the department valued both positions.                                                                                      
                                                                                                                                
Representative  Wilson stated  that  everyone was  valuable,                                                                    
but sometimes it was not possible to afford everyone.                                                                           
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Wilson, Grenn                                                                                               
OPPOSED: Gara, Guttenberg, Kawasaki, Ortiz, Seaton, Foster                                                                      
                                                                                                                                
Representative Pruitt and  Representative Tilton were absent                                                                    
from the vote.                                                                                                                  
                                                                                                                                
The MOTION to adopt Amendment H DFG 21 FAILED (3/6).                                                                            
                                                                                                                                
3:57:54 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  22                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Administrative Services                                                                                                    
     H DFG  22 -  Reduce funding  for deleted  positions and                                                                    
     reduce the Commodities line to the FY16 level                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Several  position  were deleted  in  the  FY 18  budget                                                                    
     request  with no  deletion in  funding. This  amendment                                                                    
     makes a  reduction of $63,398 to  the Personal Services                                                                    
     line  for the  general  fund portion  of the  positions                                                                    
     deleted  by   the  Department  with  no   reduction  in                                                                    
     funding.                                                                                                                   
                                                                                                                                
     FY  2016 actual  expenditures in  the Commodities  line                                                                    
     were  $94,500 and  the FY  18 budget  request for  this                                                                    
     line  item   is  $217,200  resulting  in   an  increase                                                                    
     of$122,700  over   FY  16  actual   expenditures.  This                                                                    
     amendment  makes   a  reduction  of  $122,700   to  the                                                                    
     Commodities line in this allocation.                                                                                       
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Representative Ortiz  spoke in  objection to  the amendment.                                                                    
He detailed  that funding associated  with deleted  PCNs was                                                                    
part of  the FY 17  General Fund reduction. The  Division of                                                                    
Administrative  Services did  not lapse  general funds,  but                                                                    
rather  excess  interagency  and federal  receipt  authority                                                                    
furthered   position  deletions   from   the  division.   An                                                                    
amendment  had  been  previously adopted,  which  eliminated                                                                    
$182,600 GF from the division.                                                                                                  
                                                                                                                                
Vice-Chair  Gara stated  that  the amendment  had a  problem                                                                    
consistent  with  a  problem in  other  previously  proposed                                                                    
amendments.  He  detailed that  the  funding  had been  cut,                                                                    
positions were  not funded, and  the amendment  would double                                                                    
the  cut. The  result  would mean  another  equal number  of                                                                    
employees  would  lose  their  jobs. He  believed  that  the                                                                    
explanation the positions were still funded was inaccurate.                                                                     
                                                                                                                                
Representative Thompson discussed  that unallocated cuts had                                                                    
been put  into the FY 16  budget. He detailed that  in FY 17                                                                    
the positions  had gone away,  but they had been  funded. He                                                                    
stated that  the positions  were still funded  in the  FY 18                                                                    
budget.  He thought  the issue  was confusing,  but believed                                                                    
the amendment sponsor was correct.                                                                                              
                                                                                                                                
4:00:30 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She reasoned  that if  money had not  been allocated  to the                                                                    
positions  the FY  17 budget  would  show zero  next to  the                                                                    
positions.  Additionally,   the  non-UGF  funding   for  the                                                                    
positions  had  been removed,  which  was  indicated in  the                                                                    
budget. She emphasized  that no funds had been  removed - it                                                                    
was the reason other funds  or federal funds were not shown.                                                                    
She had reviewed  the items and stressed that  the funds had                                                                    
not previously been removed.                                                                                                    
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
Representative Pruitt was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H DFG 22 FAILED (3/7).                                                                            
                                                                                                                                
4:01:54 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DFG  26                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Habitat                                                                                                                    
     H DFG 26 - Reduce funding for overtime pay to                                                                              
     encourage reduced overtime; align services with FY16                                                                       
     expenditures                                                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  allocation  has  an  FY   18  budget  request  of                                                                    
     $127,456 for premium pay in  the Personal Services line                                                                    
     item.    This  amendment  reduces  premium  pay  by  25                                                                    
     percent  of  the  amount budgeted  in  anticipation  of                                                                    
     reduced  overtime.  Declining  state  revenues  dictate                                                                    
     that  expenditures  be  reduced by  taking  a  fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner. Therefore, a reduction  of $31,864 is made from                                                                    
     the Personal Services line in this allocation.                                                                             
                                                                                                                                
     FY 2016  actual expenditures  in the Services  line for                                                                    
     Other  Services  were  $37,300 and  the  FY  18  budget                                                                    
     request for this line item  is $423,900 resulting in an                                                                    
     increase of  $418,464 over  FY 16  actual expenditures.                                                                    
     This amendment makes a reduction  of $105,000 from this                                                                    
     allocation in the Service line.                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above]. She  stressed that with the  amendment the item                                                                    
would still  receive an increase exceeding  $300,000 from FY                                                                    
16.                                                                                                                             
                                                                                                                                
Representative  Ortiz reminded  the  amendment sponsor  that                                                                    
all  premium pay  was related  to field  work. He  continued                                                                    
that  the division  did  not lapse  general  funds, but  saw                                                                    
funding authority.  The reduction  would result  in position                                                                    
deletions.                                                                                                                      
                                                                                                                                
Representative  Wilson  countered  that the  division  would                                                                    
still  receive an  increase of  $300,000, which  was a  much                                                                    
larger  sum than  $31,864. She  was  certain the  allocation                                                                    
would  have the  ability  to compensate  for the  difference                                                                    
easily.                                                                                                                         
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Thompson                                                                                              
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
Representative Pruitt was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H DFG 26 FAILED (3/7).                                                                            
                                                                                                                                
4:04:07 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to  ADOPT Amendment H GOV 1(copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Commissions/Special Offices                                                                                                
     Human Rights Commission                                                                                                    
     H GOV 1 - Personal Services Reduction Offered by                                                                           
     Representative Wilson                                                                                                      
                                                                                                                                
     This amendment deletes two of  eight Human Rights Field                                                                    
     Rep  III positions  in the  FY 18  budget request  from                                                                    
     this  allocation and  will  require  the Department  to                                                                    
     redistribute  the  workload   to  remaining  staff  and                                                                    
     operate in a more efficient manner.                                                                                        
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Seaton spoke  in opposition  to the  amendment. He                                                                    
explained  that  the  reduction would  severely  hinder  the                                                                    
ability  of   the  Human  Rights  Commission   to  meet  its                                                                    
statutory  mandate to  prevent and  eliminate discrimination                                                                    
in  employment, in  credit and  financing practices,  and in                                                                    
places  of  public accommodation  in  the  sale, lease,  and                                                                    
rental of  real property  and in practices  by the  state or                                                                    
its  political  subdivisions   because  of  race,  religion,                                                                    
color,  national  origin,  sex,   age,  physical  or  mental                                                                    
disability,  marital status  and change  in marital  status,                                                                    
pregnancy, and  other. The elimination  of two  human rights                                                                    
field   representatives  would   result  in   a  significant                                                                    
increase  in   unmanageable  caseloads.   Each  investigator                                                                    
currently  closed  about  60 cases  per  year,  which  could                                                                    
result in reduced federal funding  from the Equal Employment                                                                    
Opportunity Commission,  which contributed about  10 percent                                                                    
of the commission's budget.                                                                                                     
                                                                                                                                
Representative Wilson provided wrap  up. She remarked it was                                                                    
five  cases per  month  for each  field representative.  She                                                                    
reasoned that deleting two of  the positions meant caseloads                                                                    
would  be ten  per month,  which she  did not  believe would                                                                    
over stress the commission.                                                                                                     
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Thompson, Tilton                                                                                              
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
Representative Pruitt was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H GOV 1 FAILED (3/7).                                                                             
                                                                                                                                
4:06:43 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H GOV  2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Executive Operations                                                                                                       
     Executive Office                                                                                                           
     H GOV 2 - Personal Services Reduction                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  reduces  the   overall  costs  of  the                                                                    
     Executive  Office  in the  Office  of  the Governor  in                                                                    
     anticipation  of   the  office  operating  in   a  more                                                                    
     efficient  manner. There  are a  significant number  of                                                                    
     management level positions costing  the state in excess                                                                    
     of $200,000 per  position. As has been  required by all                                                                    
     other   state  agencies,   this   office  should   seek                                                                    
     efficiencies   in  operations   by  reducing   personal                                                                    
     service   costs,  therefore   this  amendment   make  a                                                                    
     reduction of $500,000 to the  Personal Services line of                                                                    
     the FY 18 budget request.                                                                                                  
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Seaton spoke  in opposition  to the  amendment. He                                                                    
stated that the executive office  budget had been reduced by                                                                    
the current  administration from $12,988,000 UGF  in 2015 to                                                                    
$11,303,000 UGF  in the FY  18 request  - a reduction  of 13                                                                    
percent.  He furthered  that full  time  positions had  been                                                                    
reduced  from 71  to  60  during the  same  time period.  He                                                                    
relayed  that  any  further  reduction  would  significantly                                                                    
hinder   the   governor   from  performing   his   executive                                                                    
responsibilities.  He added  that the  governor had  already                                                                    
implemented  furloughs and  a  salary  freeze for  executive                                                                    
office personnel staff.                                                                                                         
                                                                                                                                
Representative  Wilson  stated  that the  Governor's  Office                                                                    
appeared  to be  the  luckiest department  thus  far with  a                                                                    
reduction of 13  percent. She remarked she  had been hearing                                                                    
about reductions  of 30  percent or higher  for most  of the                                                                    
agencies.                                                                                                                       
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Ortiz, Seaton                                                                       
                                                                                                                                
Representative Pruitt  and Co-Chair Foster were  absent from                                                                    
the vote.                                                                                                                       
                                                                                                                                
The MOTION to adopt Amendment H GOV 2 FAILED (3/6).                                                                             
                                                                                                                                
4:08:51 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H GOV  4                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Lieutenant Governor                                                                                                        
     H GOV 4 - Funding Reduction                                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The FY  18 budget request for  this allocation includes                                                                    
     a deletion  of one  position, however, no  reduction in                                                                    
     funding  was  taken.   This  amendment  eliminates  the                                                                    
     funding associated with the position.                                                                                      
                                                                                                                                
Representative Grenn OBJECTED.                                                                                                  
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. The amendment would eliminate $88,500.                                                                                  
                                                                                                                                
Co-Chair Seaton spoke against the  amendment. He stated that                                                                    
the  position  in  the   lieutenant  governor's  office  was                                                                    
eliminated to reduce the component's  vacancy factor from 10                                                                    
percent to 2 percent. The  amendment would mean the deletion                                                                    
of  another  position,  which  would  seriously  hamper  the                                                                    
operations of the office.                                                                                                       
                                                                                                                                
Representative  Wilson  replied  that  she  was  amazed  the                                                                    
committee could not cut $88,000 from a $4.2 billion budget.                                                                     
                                                                                                                                
Representative Grenn MAINTAINED his OBJECTION.                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Thompson, Tilton, Wilson                                                                                       
OPPOSED: Guttenberg, Kawasaki, Ortiz, Gara, Seaton, Foster                                                                      
                                                                                                                                
Representative Pruitt was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H GOV 4 FAILED (4/6).                                                                             
                                                                                                                                
4:10:38 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to  ADOPT Amendment H GOV 5(copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Office of Management and Budget                                                                                            
     H GOV 5 - Funding Reduction                                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     A position was deleted by  the Office of Management and                                                                    
     Budget (OMB)  in the  FY 18 budget  request. The  FY 17                                                                    
     budgeted cost  of that position  was $138,893.  In lieu                                                                    
     of  deleting   the  funding   for  the   position,  OMB                                                                    
     transferred  $87,000  to  the services  line  item  and                                                                    
     retained  $51,893 in  personal services.  The amendment                                                                    
     reduces the Services  line in the FY  18 budget request                                                                    
     item  by  $87,000 and  the  Personal  Services line  by                                                                    
     $51,893  for a  total reduction  to this  allocation of                                                                    
     $138,893, the cost of the position deleted.                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Seaton spoke  against the  amendment. He  detailed                                                                    
that the  amendment would significantly increase  the Office                                                                    
of Management  and Budget's  (OMB) vacancy  factor requiring                                                                    
essential  positions be  kept  vacant,  and would  eliminate                                                                    
contractual  services funding  to implement  and independent                                                                    
verification  validation  process  required  to  ensure  the                                                                    
success  of  shared  services. He  furthered  that  OMB  had                                                                    
already made  significant reductions  in the budget  and had                                                                    
reduced  full-time positions  from 17  (at the  beginning of                                                                    
the current  administration) to a  proposed level of  15 for                                                                    
FY 18.                                                                                                                          
                                                                                                                                
Vice-Chair  Gara opposed  the amendment.  He referred  to an                                                                    
earlier  statement that  there could  not be  an $80,000  or                                                                    
$100,000 cut to the proposed  budget. He underscored that in                                                                    
the current proposed budget, agency  operations had been cut                                                                    
by over $60 million from the prior year.                                                                                        
                                                                                                                                
Representative  Wilson stated  that  the money  had gone  to                                                                    
different areas,  but there continued  to be a  $4.2 billion                                                                    
budget no matter what had  been done thus far. She concluded                                                                    
that  the position  had  been deleted  and  she thought  the                                                                    
funding should have also been deleted.                                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Guttenberg,  Kawasaki, Ortiz, Gara,  Grenn, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
Representative Pruitt was absent from the vote.                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H GOV 5 FAILED (3/7).                                                                             
                                                                                                                                
4:13:39 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H GOV  7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Elections                                                                                                                  
     H GOV 7 - Reduce FY 18 budget request for election                                                                         
     funding in a non-election year.                                                                                            
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The FY  18 budget  request in this  allocation includes                                                                    
     $1,847,000  for costs  associated  with conducting  the                                                                    
     statewide  primary and  general  elections  as well  as                                                                    
     REAA and  CRSA elections  for fiscal years  ending June                                                                    
     30, 2018  and June 30,  2019.  It is  anticipated these                                                                    
     funds  will not  be  spent in  FY 18,  as  there is  no                                                                    
     primary  or general  election,  however will  carryover                                                                    
     and be  included with  an FY 19  budget request  for an                                                                    
     additional $1.8  million. This would result  in a total                                                                    
     of $3.6  million being available for  future elections.                                                                    
     This  amendment  deletes  the $1.8  requested  in  this                                                                    
     allocation and requires that funds  be requested in the                                                                    
     FY 19 budget for FY 19 elections.                                                                                          
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson explained  that the legislature funded                                                                    
the Division of Elections for two  years at a time. She read                                                                    
the  amendment  description  [see above].  She  stated  that                                                                    
basically  the legislature  was going  to make  the division                                                                    
come back to ask for the  money so it could review where the                                                                    
money had previously been spent.                                                                                                
                                                                                                                                
Co-Chair  Seaton spoke  in opposition  to the  amendment. He                                                                    
explained  that  beginning in  FY  17  the cost  of  holding                                                                    
elections every two years was  divided in half to reduce the                                                                    
volatility in the  final authorized budget of  the Office of                                                                    
the  Governor  while  allowing  for  sufficient  funding  to                                                                    
conduct  elections.   He  noted  that  Section   17  of  the                                                                    
governor's  operating budget  bill  would appropriate  money                                                                    
for a two-year  period; therefore, money not spent  in FY 18                                                                    
(expected  to be  nearly  all of  the  FY 18  appropriation)                                                                    
would be  available in FY  19. The funds would  combine with                                                                    
$1.8 [million] appropriated  next year for FY 19  and FY 20.                                                                    
If the  amendment was  adopted, the cost  shift to  the next                                                                    
year  and  the full  election  cost  of $3.6  million  would                                                                    
appear  in next  year's  budget as  an  additional cost.  He                                                                    
added  that  Regional  Educational  Attendance  Area  (REAA)                                                                    
elections still occurred in off-years.                                                                                          
                                                                                                                                
Representative Grenn asked what  the allocation requests had                                                                    
been in previous non-election years.                                                                                            
                                                                                                                                
Representative Kawasaki  noted that REAA elections  and some                                                                    
Coastal Resource  Service Areas  (CRSA) elections  were held                                                                    
in  off-years; therefore,  the funds  would be  necessary in                                                                    
the coming year.                                                                                                                
                                                                                                                                
Representative Wilson provided wrap  up. She agreed that the                                                                    
amendment would  leave funding  in the  budget for  one year                                                                    
instead  of two.  It would  mean the  Division of  Elections                                                                    
would have  to come back  to the legislature to  explain the                                                                    
need  for  the  funding  request for  the  given  year.  She                                                                    
remarked  that  instead  of forward  funding  education  the                                                                    
legislature  was forward  funding  elections. The  amendment                                                                    
represented  a savings  for  the current  year,  but not  an                                                                    
overall savings  in the future  until the  legislature heard                                                                    
from  the   division  the  following   year.  She   did  not                                                                    
understand why  the legislature would  be taking  money from                                                                    
savings to forward fund the cost when it was not necessary.                                                                     
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Kawasaki, Ortiz, Grenn, Guttenberg, Seaton, Foster                                                                     
                                                                                                                                
Representative Pruitt  and Vice-Chair Gara were  absent from                                                                    
the vote.                                                                                                                       
                                                                                                                                
The MOTION to adopt Amendment H GOV 7 FAILED (3/6).                                                                             
                                                                                                                                
4:18:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:34:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Seaton  indicated   the  committee  would  address                                                                    
amendments for the Department of  Health and Social Services                                                                    
(DHSS).                                                                                                                         
                                                                                                                                
4:35:10 PM                                                                                                                    
                                                                                                                                
Representative  Tilton  MOVED to  ADOPT  Amendment  H HSS  5                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Pioneer Homes                                                                                                       
     Alaska Pioneer Homes Management H HSS 5 - Decrease to                                                                      
    Alaska Pioneer Home Management travel and services                                                                          
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     This decrease is 18Gov - 16Actual InflAdj (3.5                                                                             
     percent)                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Tilton explained  the  amendment related  to                                                                    
Alaska  Pioneer  Home  management.   She  relayed  that  the                                                                    
actuals  in  FY  16  had   been  $24.1  [thousand]  and  the                                                                    
governor's  request had  been  $52.4  [thousand] in  travel.                                                                    
Actuals  for  services  had been  $65.2  [thousand]  with  a                                                                    
request of  $199.6 [thousand].  Actuals for  commodities had                                                                    
been  $7.4 [thousand]  with a  request of  $23.1 [thousand].                                                                    
She  stated that  the increment  had not  been impacted  the                                                                    
previous year.                                                                                                                  
                                                                                                                                
4:36:36 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:36:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Ortiz  spoke in opposition to  the amendment.                                                                    
He had heard real concerns over  the past few years from the                                                                    
director of  the Juneau Pioneer  Home about  reductions that                                                                    
had taken place.  He detailed the Juneau  Pioneer Home would                                                                    
have to  reduce its number  of beds if additional  cuts were                                                                    
received. He noted that there  was already a waiting list to                                                                    
get into the  home. He spoke to the importance  and value of                                                                    
Alaska's seniors -  he wanted to ensure  Alaska continued to                                                                    
be  a place  for them  to  live. He  concluded that  further                                                                    
reductions to the Pioneer Homes would be detrimental.                                                                           
                                                                                                                                
Vice-Chair Gara spoke against the  amendment. He stated that                                                                    
the Pioneer Home  had already taken over $1  million in cuts                                                                    
since FY 15.  He detailed that the homes were  able to serve                                                                    
fewer  people, yet  the residents  were much  more expensive                                                                    
because  of   their  high  level   of  need  (e.g.   due  to                                                                    
Alzheimer's,  dementia, and  other major  medical problems).                                                                    
Part  of  the  amendment  would delete  funds  owed  to  the                                                                    
Department of Administration  for leasing costs, information                                                                    
technology, risk  management, and  other. He noted  it would                                                                    
mean  a cut  to nursing  services or  other services  at the                                                                    
Pioneer Homes. He  continued that the Pioneer  Home had done                                                                    
a very good  job managing its costs as well  as possible. He                                                                    
reiterated  that  the  Pioneer  Home had  already  been  cut                                                                    
significantly.                                                                                                                  
                                                                                                                                
Representative Tilton relayed that  she had checked with the                                                                    
legislative  analyst.  She  stated  there  had  not  been  a                                                                    
reduction  in  the  line  in  the  previous  year.  She  had                                                                    
significant faith  in the state's  Pioneer Homes  and wanted                                                                    
to  protect the  state's seniors.  She stated  the amendment                                                                    
was  not  in  "that  line," but  in  their  management.  She                                                                    
believed if  small cuts were  made across agencies  it would                                                                    
be easier than  having to do something like  close a Pioneer                                                                    
Home.                                                                                                                           
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
Representative Tilton provided wrap up.                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz,  Gara, Grenn, Guttenberg,  Kawasaki, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 5 FAILED (4/7).                                                                             
                                                                                                                                
4:40:31 PM                                                                                                                    
                                                                                                                                
Representative  Tilton  MOVED to  ADOPT  Amendment  H HSS  7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Pioneer Homes                                                                                                              
     H HSS 7 - Decrease to commodities                                                                                          
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     This decrease is 18Gov - 16Actual Infl Adj (3.5                                                                            
     percent)                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Tilton explained  the  amendment related  to                                                                    
the commodities line of the  Alaska Pioneer Home budget. She                                                                    
referred  to an  earlier  discussion  about whether  actuals                                                                    
really represented  actuals. She relayed that  the actual in                                                                    
FY 15 was $2,953,000 and  $2,766,000 in FY 16. She continued                                                                    
that  in  both years  the  actual  spend  had not  been  the                                                                    
authorized  amount. The  reduction  in  the amendment  would                                                                    
come from  the General Fund  in the amount of  $639,000. She                                                                    
was concerned  that Pioneer Home residents  were paying more                                                                    
for  an increase  that  did not  equal  the amount  actually                                                                    
spent.                                                                                                                          
                                                                                                                                
Vice-Chair  Gara opposed  the amendment.  He stated  that he                                                                    
would join anyone who would like  to help reduce the level 1                                                                    
cost; however,  he relayed  that he  had failed  at building                                                                    
support  for reducing  the specific  cost. He  addressed the                                                                    
proposed $639,000 reduction in  commodities and relayed that                                                                    
the funds went  largely to medical supplies  for people with                                                                    
significant  health   problems.  He  believed   that  unless                                                                    
someone  could  identify  medical  supplies  that  were  not                                                                    
needed,  the  cut  was unsubstantiated.  He  listed  various                                                                    
treatment services.                                                                                                             
                                                                                                                                
Representative Tilton responded  that the commodities budget                                                                    
line also  included landscaping and systems  monitoring. She                                                                    
stressed that the amendment would  not result in a reduction                                                                    
to medications. She was concerned  that residents were being                                                                    
charged for money  the state was not  actually spending. She                                                                    
noted  that   the  cost  for  residents   was  scheduled  to                                                                    
increase.                                                                                                                       
                                                                                                                                
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,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 7 FAILED (4/7).                                                                             
                                                                                                                                
4:44:36 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H HSS  8                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Pioneer Homes                                                                                                              
     H HSS 8 - Funding reduction in Personal Services to                                                                        
     align with FY17 Management Plan level.                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     FY 2016 actual expenditures in the Personal Services                                                                       
     line item were $47,835,600, the FY 17 Management Plan                                                                      
     level was $48,922,000  and the FY 18  budget request is                                                                    
     $49,311,600. The increase between  the FY 17 Management                                                                    
     Plan and  the FY  18 budget  request is  $389,600. This                                                                    
     amendment  makes  a  reduction   of  $389,600  to  this                                                                    
     Personal  Services line  and aligns  the  FY 18  budget                                                                    
     request to FY 17 Management Plan level.                                                                                    
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara spoke  in opposition  to the  amendment. He                                                                    
found it  impressive that the  Pioneer Home had  found close                                                                    
to  $1.5  million  in  budget reductions  since  FY  15.  In                                                                    
reality the cost  of healthcare went up for  people who were                                                                    
being hired.  He spoke to  the $389,000 the  amendment would                                                                    
cut  from personnel  services and  explained  the money  was                                                                    
used to  pay for step  increases for existing staff  and for                                                                    
health  insurance  increases  because the  state  had  never                                                                    
gained control of its healthcare  costs. He believed the cut                                                                    
would potentially  mean laying off  three or four  nurses or                                                                    
other people.                                                                                                                   
                                                                                                                                
Representative Wilson was trying to  hold the line to FY 17.                                                                    
She did not believe it was asking much.                                                                                         
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 8 FAILED (4/7).                                                                             
                                                                                                                                
4:46:58 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H HSS  9                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Pioneer Homes                                                                                                              
     H HSS 9 - Funding reduction of four non-permanent                                                                          
     position deleted by the Dept. but not defunded.                                                                            
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department  deleted four  non-permanent  positions                                                                    
     that had been  vacant for more than one year  in the FY                                                                    
     18  budget   request,  however,  did  not   delete  the                                                                    
     personal   services   funding   associated   with   the                                                                    
     positions.  This amendment  reduces  the  FY 18  budget                                                                    
     request in the Personal Services  line by the amount of                                                                    
     the FY17 budgeted costs of the four positions.                                                                             
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair  Gara  explained that  the  Pioneer  Homes had  a                                                                    
vacancy factor of  roughly 2 percent -  vacant positons that                                                                    
were not  funded. He detailed  that a cut of  $166,000 could                                                                    
have associated  matching funds the legislature  was unaware                                                                    
of because it  did not know what positions would  be cut. He                                                                    
continued it  could be a  deletion of certified  nurse aides                                                                    
or other employees.  He reiterated there was  no funding for                                                                    
deleted positions contrary to  what the amendment suggested.                                                                    
The vacancy factor open positions  were not funded. He noted                                                                    
that every  once in a  while an  employee may leave  and the                                                                    
agency could fill the position.                                                                                                 
                                                                                                                                
Representative  Wilson agreed  that  the  four positions  no                                                                    
longer existed,  which was the  reason she was  proposing to                                                                    
delete the associated funding.                                                                                                  
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 9 FAILED (4/7).                                                                             
                                                                                                                                
Representative  Gara WITHDREW  Amendment H  HSS 14  (copy on                                                                    
file). He indicated  he would not be  offering the amendment                                                                    
in an attempt to keep costs down.                                                                                               
                                                                                                                                
4:50:19 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  16                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alcohol Safety Action Program (ASAP)                                                                                       
     H HSS  16 - Delete  three PFT positions  and associated                                                                    
     costs.                                                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Due  to declining  revenues and  as a  cost containment                                                                    
     measure,  this amendment  deletes  three new  positions                                                                    
     established  by  the Department  in  the  FY 18  budget                                                                    
     request  for   this  allocation.  This  results   in  a                                                                    
     reduction of  $221,197 from the Personal  Services line                                                                    
     of the FY 18 budget request.                                                                                               
                                                                                                                                
     The  FY  17  Management  Plan budget  in  the  Personal                                                                    
     Services  line  is  $2,488,700 and  the  FY  18  budget                                                                    
     request is $2,599,200 which is  an increase of $110,500                                                                    
     over  FY   16  actual   expenditures.     Therefore,  a                                                                    
     reduction of $110,105 in the  Personal Services line is                                                                    
     made from  this allocation  to align  the FY  18 budget                                                                    
     request with FY 16 actual expenditures.                                                                                    
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see  above]. She  clarified the  $221,197 in  the amendment                                                                    
description should read $331,300 general funds.                                                                                 
                                                                                                                                
Vice-Chair Gara  spoke against  the amendment.  He clarified                                                                    
that the  funding source was  interagency receipts  from the                                                                    
Court System  to pay for  the Alcohol Safety  Action Program                                                                    
(ASAP). He  detailed that the  program screened  people with                                                                    
substance   abuse  problems   to  determine   the  necessary                                                                    
treatment. The goal was to  keep people from becoming repeat                                                                    
customers  in the  state's criminal  justice  system and  to                                                                    
save  money. He  explained that  the amendment  would delete                                                                    
the people tasked with screening  people to determine needed                                                                    
treatment. He elaborated  that a portion of  the funding was                                                                    
for  step  and  health   insurance  increases.  Without  the                                                                    
services there would be increased  crime and fewer treatment                                                                    
services.                                                                                                                       
                                                                                                                                
Representative Wilson reported  that the amendment pertained                                                                    
to three new  positions. She stated there  were other things                                                                    
happening  in  the  criminal  world in  relation  to  SB  91                                                                    
[omnibus  crime   legislation  passed  in  2016]   or  other                                                                    
legislation.  She  did  not  believe  it  was  the  time  to                                                                    
increase personnel.                                                                                                             
                                                                                                                                
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 to adopt Amendment H HSS 16 FAILED (4/7).                                                                            
                                                                                                                                
4:53:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:53:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  21                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Designated Evaluation and Treatment                                                                                        
     H HSS 21 - Funding reduction to grants line item                                                                           
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Due  to declining  revenues, this  amendment as  a cost                                                                    
     containment measure,  reduces the FY 18  budget request                                                                    
     for evaluation and treatment  grants from $3,794,800 to                                                                    
     $3,594,800.                                                                                                                
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara  conveyed that the  item was  more important                                                                    
that the description of the  amendment conveyed. He stressed                                                                    
there  had  already been  a  reduction  of $869,000  in  the                                                                    
services   since  FY   15.  He   detailed  that   designated                                                                    
evaluation  treatment  services  went  to  individuals  with                                                                    
severe  mental  health  problems  who  were  in  crisis.  He                                                                    
continued that the individuals had to  be moved to a part of                                                                    
the  state  where  the  services   were  being  offered.  He                                                                    
explained  that the  services were  often court  ordered. He                                                                    
underscored that  the services were provided  to individuals                                                                    
who  may otherwise  be  suicidal  or end  up  on the  street                                                                    
(which  also   cost  the  state  money).   He  believed  the                                                                    
department had been efficient and  perhaps over efficient in                                                                    
cutting close  to $1 million.  He wanted to know  what would                                                                    
happen  to the  individuals if  an additional  cut occurred.                                                                    
Additionally,  he thought  the amendment  would result  in a                                                                    
supplemental budget  request by  the department  because the                                                                    
mental health crisis services were statutorily required.                                                                        
                                                                                                                                
Representative  Wilson  imagined  most  of  the  individuals                                                                    
would  have other  coverage with  Medicaid expansion  coming                                                                    
into full force.  She believed there should  be more federal                                                                    
funding based on different waivers  offered. She thought the                                                                    
state was still  waiting for some of the waivers  - they had                                                                    
not  come  the  prior  year,  which was  the  reason  for  a                                                                    
supplemental  cost. She  concluded that  more federal  funds                                                                    
should be available.                                                                                                            
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 21 FAILED (4/7).                                                                            
                                                                                                                                
4:56:43 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  22                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Psychiatric Institute                                                                                               
     H HSS 22 - Aligning the FY 18 budget request with FY                                                                       
     17 Management plan                                                                                                         
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces the FY  18 budget request in the                                                                    
     Personal  Services  line  by   $776,400  to  align  the                                                                    
     request  with  the  FY  17  Management  Plan  level  of                                                                    
     funding which is $26,766,400.                                                                                              
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara spoke  to his  objection. He  reported that                                                                    
funding for the Alaska  Psychiatric Institute (API) had been                                                                    
cut since FY 15. He reported  that the cuts had yielded poor                                                                    
results.  He detailed  that  similar  institutions in  other                                                                    
states were  able to treat  people and transition  them into                                                                    
housing,  jobs, and  services. Whereas,  individuals at  API                                                                    
were kept for  a very short period of time,  funding was not                                                                    
available  to  provide  needed  transitional  services,  and                                                                    
close to  half of the individuals  ended up back in  API. He                                                                    
reiterated  that  the  system was  already  underfunded.  He                                                                    
wondered if  the amendment sponsor  had determined  how much                                                                    
more it  would cost the  state if more  individuals returned                                                                    
to API for treatment. He  noted that currently there were no                                                                    
empty beds at  API and it was not even  providing the needed                                                                    
level of services.                                                                                                              
                                                                                                                                
Representative Guttenberg  remarked that the  funding source                                                                    
was GF mental health funds.  He reasoned the amendment would                                                                    
mean  denying  a  mental  health  funds  increment.  He  was                                                                    
unclear if the  funding was from Alaska  Mental Health Trust                                                                    
Authority (AMHTA).                                                                                                              
                                                                                                                                
Representative  Wilson responded  that  the  funds were  not                                                                    
from AMHTA. She stated that  the fund source was the General                                                                    
Fund. She  referred to  a previous remark  that API  was not                                                                    
providing the needed care. She  opined that the state needed                                                                    
to look at  alternatives if it was not  providing the needed                                                                    
level  of care.  She believed  it  was the  worst thing  the                                                                    
state could  do. She  stated it was  not only  about funding                                                                    
and there may be other issues  going on, such as the cost of                                                                    
healthcare in Alaska compared to other places.                                                                                  
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn,  Guttenberg, Kawasaki, Ortiz,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 22 FAILED (4/7).                                                                            
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  24                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Mental Health Board and Advisory Board on                                                                           
     Alcohol and Drug Abuse                                                                                                     
     H HSS 24 - Delete one PFT position and associated                                                                          
     costs                                                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  a Health  and Social  Services                                                                    
     Planner  II  position from  the  FY  18 budget  request                                                                    
     requiring the  Department to redistribute  the workload                                                                    
     to the remaining staff.                                                                                                    
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  spoke against  the amendment.  He explained                                                                    
that half  of the position  was funded with AMHTA  money and                                                                    
was an AMHTA priority. He  relayed that taking general funds                                                                    
out  would result  in  the deletion  of  two positions.  The                                                                    
positions were responsible  for reviewing grant applications                                                                    
to  help leverage  additional  federal  funding, working  on                                                                    
Medicaid  reform  to  save  the   state  money,  working  on                                                                    
policies to  reverse the heroin  and opioid  abuse increase,                                                                    
and  working  on  education  and  planning  to  help  reduce                                                                    
adverse  childhood experiences.  He  detailed that  children                                                                    
with adverse  childhood experiences  commit suicide  in much                                                                    
larger numbers, have  higher rates of depression,  end up in                                                                    
mental health institutions at a  high cost to the state, and                                                                    
end up living with much more  agony than they should. He saw                                                                    
the   amendment  as   costing   the  state   money  and   as                                                                    
disregarding  a  priority  of the  people  hired  at  AMHTA.                                                                    
Additionally,  he believed  it  would  delete two  positions                                                                    
instead of one.                                                                                                                 
                                                                                                                                
Representative Grenn asked the  amendment sponsor to address                                                                    
the number of positions the two boards currently had.                                                                           
                                                                                                                                
Representative  Wilson discussed  that making  cuts was  not                                                                    
easy.  She explained  that the  state was  not the  only one                                                                    
providing services to the public.  She reasoned that some of                                                                    
the  services would  have to  be the  responsibility of  the                                                                    
private sector.                                                                                                                 
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                               
OPPOSED: Guttenberg, Ortiz, Gara, Kawasaki, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H HSS 24 FAILED (5/6).                                                                            
                                                                                                                                
5:04:20 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  26                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Behavioral Health                                                                                                          
     Suicide Prevention Council                                                                                                 
     H HSS 26 - Funding reduction in grants line                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Due to declining revenues, this amendment is a cost                                                                        
     containment measure that reduces the $461,700 grants                                                                       
     line funding in the FY 18 budget request by $100,000.                                                                      
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara spoke  in opposition  to the  amendment. He                                                                    
reported that  the department had  cut roughly  $190 million                                                                    
in  state  funding since  FY  15.  He  detailed it  had  cut                                                                    
roughly $30  million in the  current year. He  stressed that                                                                    
the amendment  did not represent  a wise  cut on top  of the                                                                    
cuts that  had already taken  place. He relayed  that Alaska                                                                    
ranked first in the nation  in suicide per capita. The state                                                                    
had a Suicide Prevention  Council working to prevent suicide                                                                    
get the state out of  first place. He specified that suicide                                                                    
was  the number  one cause  of death  for youth  between the                                                                    
ages  of 16  and  24.  The funds  went  to  DEED to  provide                                                                    
school-based  education  and  services to  help  reduce  the                                                                    
number of suicides.                                                                                                             
                                                                                                                                
Representative Wilson  explained that the  funds represented                                                                    
grants through  DEED to the state's  school districts, which                                                                    
was counted as  another part of the BSA. She  stated that by                                                                    
decreasing the funds there would  not be as many grants, but                                                                    
it did not  mean the council could not  fulfill its mission.                                                                    
She  believed  it could.  She  wondered  why government  was                                                                    
providing  this  service  when   it  could  be  provided  by                                                                    
nonprofits.  She   reasoned  there  were   other  nonprofits                                                                    
dealing with  the same subject.  She questioned  whether the                                                                    
state was  ensuring the  districts had  money to  go forward                                                                    
with  the  services  once  the  grants  were  provided.  She                                                                    
wondered whether  the grants were  going to the  same school                                                                    
districts all of  the time. She did not  believe the service                                                                    
was a function of government;  it was a service she believed                                                                    
should be provided by the private sector.                                                                                       
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson                                                                                                        
OPPOSED:  Kawasaki, Ortiz,  Pruitt,  Thompson, Gara,  Grenn,                                                                    
Guttenberg, Seaton, Foster,                                                                                                     
                                                                                                                                
The MOTION to adopt Amendment H HSS 26 FAILED (2/9).                                                                            
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  28                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Residential Child Care                                                                                                     
     H HSS 28 - Delete  one Accounting Tech PFT position and                                                                    
     associated costs                                                                                                           
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Due  to declining  revenues, this  amendment as  a cost                                                                    
     containment measure,  deletes an  Accounting Technician                                                                    
     position in  the Residential  Child Care  grant program                                                                    
     from the FY 18 budget  request requiring the Department                                                                    
     to  use   existing  accounting  resources   in  another                                                                    
     allocation to provide the  accounting services for this                                                                    
     program.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  spoke to his  objection. He  had previously                                                                    
mentioned  that DEED  had already  received $190  million in                                                                    
cuts.  He  detailed that  the  amendment  would require  the                                                                    
department to  find some other  employee to do the  work. He                                                                    
elaborated  that employees  worked  with  children who  have                                                                    
significant  problems and  require  institutional care.  The                                                                    
department worked to try to  locate the appropriate facility                                                                    
for the child, with the child  to ensure the facility was as                                                                    
appropriate  as   possible,  and  with  the   facility.  The                                                                    
department had  been drastically  reduced. He  reasoned that                                                                    
if the department  was asked to absorb the work  it would be                                                                    
forced to  use an employee  already doing important  work in                                                                    
children's services,  senior services,  disability services,                                                                    
or  drug and  alcohol  treatment services.  He believed  the                                                                    
amendment would  result in  the deletion  of half  the staff                                                                    
doing the  work. He  thought more children  would end  up on                                                                    
the street or without needed treatment.                                                                                         
                                                                                                                                
Representative   Wilson  stressed   that   the  budget   was                                                                    
currently $4.2  billion in general  funds. She  doubted that                                                                    
$83,000 went to two people,  which she surmised was low. She                                                                    
stressed that every sector was  having to do more with less.                                                                    
The  amendment was  asking government  to do  the same.  She                                                                    
detailed that the  private sector had been forced  to make a                                                                    
shift because  it had  nowhere else to  get the  money from.                                                                    
She  agreed it  made it  hard getting  over the  hurdle. She                                                                    
reasoned that  if everyone  gave a  little it  prevented the                                                                    
need for  one entity to  give a large amount.  She concluded                                                                    
that at some point the decisions needed to be made.                                                                             
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 28 FAILED (4/7).                                                                            
                                                                                                                                
5:10:59 PM                                                                                                                    
                                                                                                                                
Representative Wilson  WITHDREW Amendment H HSS  31 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  35                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Medical Assistance Administration                                                                                          
     H HSS 35 - Delete one PFT position and associated                                                                          
     costs                                                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department  deleted  a full  time  vacant  Project                                                                    
     Analyst  position   in  this  allocation,   however  no                                                                    
     funding  was   deleted.  This  amendment   deletes  the                                                                    
     funding for the position from  the FY 18 budget request                                                                    
     based on the FY 17 budgeted cost of the position.                                                                          
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  testified in  opposition to  the amendment.                                                                    
He  relayed  that when  the  funding  had been  reduced  the                                                                    
position funding  had been deleted. The  amendment would add                                                                    
an additional $126,000 in decreases;  however, it was really                                                                    
about  $250,000  in  decreases because  the  positions  were                                                                    
matched with federal funds. He  surmised two positions would                                                                    
probably  be  lost.  He detailed  that  the  positions  were                                                                    
responsible for processing claims  for people the state owed                                                                    
Medicaid payments to. He had  heard numerous complaints from                                                                    
the legislature that the claims  were not being processed in                                                                    
time  and that  it  caused a  hardship  on medical  services                                                                    
providers.   He  stressed   that   deleting  two   positions                                                                    
responsible for  processing Medicaid claims would  slow down                                                                    
claims  processing. He  underscored that  the amendment  did                                                                    
not  merely implement  efficiencies, but  harmful cuts.  The                                                                    
department was serving  more people with less  funds than in                                                                    
FY 15 (approximately $200 million less).                                                                                        
                                                                                                                                
Representative  Thompson noted  that the  position had  been                                                                    
deleted by the department, yet  the money was still included                                                                    
in  the  budget.  He  emphasized that  the  money  would  be                                                                    
available from  July 1, 2017  through June 30, 2018,  but no                                                                    
one  was  working  in  the  position  because  it  had  been                                                                    
deleted. He  did not  understand how  the amendment  meant a                                                                    
doubling up on costs.                                                                                                           
                                                                                                                                
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,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 35 FAILED (4/7).                                                                            
                                                                                                                                
5:14:44 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  37                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Rate Review                                                                                                                
     H HSS 37 - Delete one Audit and Review Analyst III                                                                         
     position                                                                                                                   
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  one Audit  and Review  Analyst                                                                    
     III position and the  associated personal services cost                                                                    
     from the  Personal Services  line of  the FY  18 budget                                                                    
     request in  this allocation.     This will  require the                                                                    
     Department  to redistribute  the workload  to remaining                                                                    
     staff and to operate in a more efficient manner.                                                                           
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative  Wilson MOVED  to AMEND  Amendment H  HSS 37.                                                                    
She explained  the amendment  should include a  1 and  not a                                                                    
zero under  permanent full-time category. She  explained she                                                                    
was proposing to delete the position.                                                                                           
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.  He asked where the                                                                    
change was occurring.                                                                                                           
                                                                                                                                
Representative  Wilson explained  that  under the  permanent                                                                    
full-time  category the  number of  positions was  currently                                                                    
listed as  zero. The  amendment narrative  proposed deleting                                                                    
one  analyst position;  therefore,  the permanent  full-time                                                                    
category should  show the  number 1 instead  of a  zero. The                                                                    
position had not been previously deleted.                                                                                       
                                                                                                                                
Co-Chair  Seaton directed  members  to the  location of  the                                                                    
change on the document.                                                                                                         
                                                                                                                                
Vice-Chair Gara WITHDREW his OBJECTION  to Amend Amendment H                                                                    
HSS 37. There  being NO further OBJECTION,  the amendment to                                                                    
Amendment H HSS 37 was ADOPTED.                                                                                                 
                                                                                                                                
Vice-Chair Gara  spoke to his  objection to Amendment  H HSS                                                                    
37 as amended.  He did not support the  amendment because he                                                                    
believed  it hurt  people  and was  wrong.  He believed  the                                                                    
sponsor  should have  amended the  number  of positions  the                                                                    
amendment  would  eliminate  to   two  because  by  deleting                                                                    
$139,000 in  state funding,  it meant  the state  would also                                                                    
lose  $139,000 in  matching federal  funds.  He believed  it                                                                    
would require  the deletion of  two positions.  He addressed                                                                    
that the  positions were  partially responsible  for working                                                                    
on SB  74 reform  - to  try to reduce  medical costs  in the                                                                    
state  and  save  Medicaid  money.  He  explained  that  the                                                                    
amendment would  hamper those efforts. The  individuals were                                                                    
also responsible  for doing assessment work  on rate setting                                                                    
for  Medicaid payments.  He stated  that if  the legislature                                                                    
wanted the  state to do  an inferior job on  determining how                                                                    
to pay providers,  the amendment would do  so. He reiterated                                                                    
that the department was doing more work with less money.                                                                        
                                                                                                                                
Representative  Wilson clarified  that the  funding was  not                                                                    
General Fund match  money. She explained that  GF match went                                                                    
towards federal funding  and when the state cut  GF match, a                                                                    
certain percent of the federal  funds were not received. The                                                                    
amendment pertained  to general  funds -  additional funding                                                                    
the  legislature  had  determined  it  needed  to  give  the                                                                    
department over any  match that may be  required for federal                                                                    
dollars.                                                                                                                        
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Grenn, Pruitt                                                                               
OPPOSED: Gara, Guttenberg, Kawasaki, Ortiz, Foster, Seaton                                                                      
                                                                                                                                
The MOTION  to adopt  Amendment H HSS  37 as  amended FAILED                                                                    
(5/6).                                                                                                                          
                                                                                                                                
5:19:33 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  38                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Juvenile Justice                                                                                                           
     McLaughlin Youth Center                                                                                                    
     H  HSS 38  - Delete  ten PFT  positions and  associated                                                                    
     costs.                                                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Due  to declining  revenues, this  amendment as  a cost                                                                    
     containment   measure,  deletes   the  three   Juvenile                                                                    
     Justice  Officers transferred  by  the Department  from                                                                    
     Nome   to  this   center  ($489,300),   six  additional                                                                    
     Juvenile  Justice   Officers  and  one   Mental  Health                                                                    
     Clinician   ($825,862)  for   a   total  reduction   of                                                                    
     $1,315,162  from  the  FY 18  budget  request  in  this                                                                    
     allocation.                                                                                                                
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative   Wilson   explained   that   the   amendment                                                                    
pertained to  the Mclaughlin Youth  Center. She  referred to                                                                    
charts  shown to  the  committee showing  a  decline in  the                                                                    
juvenile justice system; the population  had gone from 6,800                                                                    
to 5,048  and referrals  had gone from  3,881 to  2,850, and                                                                    
"juvenile" from 2,674  to 1,914. She reasoned  that with the                                                                    
decline in  numbers the cost  should also go down.  She read                                                                    
the amendment description [see above].                                                                                          
                                                                                                                                
Vice-Chair  Gara spoke  to  his  objection. He  communicated                                                                    
that Mclaughlin  was currently 2  percent over  capacity. He                                                                    
agreed  there  had  been  a decline  in  youth  in  juvenile                                                                    
justice  facilities;  however,  the amendment  pertained  to                                                                    
Mclaughlin, which  was on the  verge of possibly  needing to                                                                    
open  an  additional  unit. Thus  far,  the  department  had                                                                    
proposed  to  eliminate 18  positions  by  closing the  Nome                                                                    
Youth Facility; it  was keeping 3 positions to  take care of                                                                    
youth moving from  Nome to other areas.  The amendment would                                                                    
cause  a  decrease  of  25  positions.  He  did  not  see  a                                                                    
justification  for reducing  staff  at a  facility who  were                                                                    
tasked with  working with youth  to prevent  reoffenders and                                                                    
to  transition  them  to  success.  He  had  not  heard  how                                                                    
services   at  Mclaughlin   would  improve   by  terminating                                                                    
numerous positions in a facility that was above capacity.                                                                       
                                                                                                                                
Representative  Wilson stated  that the  department "decides                                                                    
where they go" and there  were many facilities with very low                                                                    
numbers.  She  did not  know  why  the  state would  not  be                                                                    
evening up  the numbers. She  wanted to ensure  "those being                                                                    
transferred to  Nome -  it's included  in this  number, it's                                                                    
not in addition to those  positions." She continued that the                                                                    
state was seeing  a decline. She believed the  fact that one                                                                    
facility   was  overloaded   while  others   were  not   was                                                                    
indicative  of  a  case management  problem.  She  spoke  to                                                                    
ensure  numbers  were  as evenly  distributed  as  possible,                                                                    
which  had  been  discussed during  the  conversation  about                                                                    
where Nome youth would be  sent (e.g. Mclaughlin, Fairbanks,                                                                    
or other) and  about needed services. She  discussed a graph                                                                    
presented  by  DHSS  showing   a  downturn;  therefore,  she                                                                    
believed services should match that downturn.                                                                                   
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 38 FAILED (4/7).                                                                            
                                                                                                                                
5:24:16 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  40                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H HSS  40 - Eliminate three  positions transferred from                                                                    
     the Nome Youth Center to the McLaughlin Youth Center                                                                       
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The amendment  denies the transfer  of full  three full                                                                    
     time  position  from the  Nome  Youth  Facility to  the                                                                    
     McLaughlin Youth  Center resulting from the  closure of                                                                    
     the  Nome facility.  The Nome  Youth Facility  is being                                                                    
     closed,  no   longer  requires  the   three  positions,                                                                    
     therefore   the  positions   should   be  deleted.   If                                                                    
     McLaughlin requires  additional funding to  fulfill its                                                                    
     function, a  separate increment should be  submitted by                                                                    
     the Department.                                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson relayed  the amendment would eliminate                                                                    
three positions  transferred from  the Nome Youth  Center to                                                                    
the Mclaughlin Youth Center.                                                                                                    
                                                                                                                                
Vice-Chair Gara  spoke to his  opposition to  the amendment.                                                                    
He discussed the  goal to keep children in  a youth facility                                                                    
near  their  home.  He  did   not  support  the  concept  of                                                                    
transferring kids  far away from  their homes.  He continued                                                                    
that there had been 21  positions at the Nome Youth Facility                                                                    
and the department  was already eliminating 18  of them, but                                                                    
keeping  three to  take  care of  the  youth. The  amendment                                                                    
would eliminate  any staff for  the youth  being transferred                                                                    
from  the facility.  He continued  that  the department  was                                                                    
trying  to  find  efficiencies. Deleting  18  positions  was                                                                    
difficult, but  leaving no  staff left  for the  youth being                                                                    
sent  1,000  miles  away  from  their  homes  did  not  seem                                                                    
logical.                                                                                                                        
                                                                                                                                
Representative Wilson remarked that  they did not know where                                                                    
the youth  would go. She  argued that where the  youths were                                                                    
sent should be based on the  services they need. She did not                                                                    
believe youths should automatically  be sent to any specific                                                                    
facility.  She  believed the  most  important  thing was  to                                                                    
ensure  the  youths were  receiving  what  they needed.  She                                                                    
continued that it  may not be the facility  closest to home,                                                                    
but  she hoped  the facility  would get  the youths  back on                                                                    
track more quickly to avoid  getting in trouble again in the                                                                    
future.  She hoped  they  would  be able  to  go back  home,                                                                    
finish school, and move forward.                                                                                                
                                                                                                                                
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, Foster, Seaton                                                                                                        
                                                                                                                                
The MOTION to adopt Amendment H HSS 40 FAILED (3/8).                                                                            
                                                                                                                                
Representative  Foster WITHDREW  Amendments H  HSS 41  and H                                                                    
HSS 43  (copy on file).  He detailed that the  committee had                                                                    
passed a contingency language  amendment specifying that the                                                                    
Nome  Youth  Facility  would  remain open  if  it  was  less                                                                    
expensive  to keep  it open  as  opposed to  closing it  and                                                                    
moving youth all around the state.                                                                                              
                                                                                                                                
Representative Tilton  WITHDREW Amendment H HSS  45 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Co-Chair Foster WITHDREW Amendments H  HSS 46, H HSS 47, and                                                                    
H  HSS 48  (copy  on  file). He  noted  the amendments  were                                                                    
withdrawn for the reason he had just spoken to.                                                                                 
                                                                                                                                
Representative Tilton  WITHDREW Amendment H HSS  50 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
5:28:44 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  53                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Juvenile Justice                                                                                                           
     Probation Services                                                                                                         
     H  HSS 53  -  Delete 14  PFT  positions and  associated                                                                    
     costs. Offered by Representative Wilson                                                                                    
                                                                                                                                
     Juvenile  Justice Population  trends have  decreased by                                                                    
     10% from FY  15 to FY 16. As a  result of the decreased                                                                    
     population,  this amendment  deletes the  positions and                                                                    
     funding for  12 of  the 84 Juvenile  Probation Officers                                                                    
     and  2 of  the 15  Social Services  Associates and  the                                                                    
     associated  personal  service  costs  from  the  FY  18                                                                    
     budget request.                                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara spoke  to his objection. He  agreed that the                                                                    
juvenile justice population had  been decreasing, but it had                                                                    
leveled out. Five  youth in Nome had been  expected, but the                                                                    
number had  increased to eight. Additionally,  five had been                                                                    
expected in  Kenai and there  were eight. He  explained that                                                                    
initially  people thought  youths  could  be transferred  to                                                                    
Mclaughlin in Anchorage;  however, a new wing  would have to                                                                    
be opened at  Mclaughlin if that happened.  He explained the                                                                    
positions the  amendment would  delete were  responsible for                                                                    
working with  youth and to  provide safer  neighborhoods for                                                                    
youth  who come  out  of the  juvenile  justice system.  The                                                                    
individuals  were probation  officers  who  worked with  law                                                                    
enforcement and  youths released  from facilities  to ensure                                                                    
there a job, education, or  no-drug use plan was maintained.                                                                    
The goal  was to ensure  youths did not  end up back  in the                                                                    
criminal justice  system. There  was no evidence  there were                                                                    
way  too  many  people  in  the division  to  do  the  work.                                                                    
Additionally,  there  was  no   evidence  that  by  deleting                                                                    
probation officers, the community would  be kept as safe. He                                                                    
emphasized the community would be less safe.                                                                                    
                                                                                                                                
Representative  Wilson   stressed  that  people   should  be                                                                    
thrilled  the  number of  youths  [in  the juvenile  justice                                                                    
system] were  decreasing. She clarified  she had  not stated                                                                    
the numbers were disappearing [down  to zero]. She agreed it                                                                    
would be great  if the numbers were going down  to zero. She                                                                    
reiterated  that  as  the numbers  decreased  so  would  the                                                                    
workload.  The   amendment  reflected  a  decrease   in  the                                                                    
workload associated with  a decline in the  number of youths                                                                    
in the system.                                                                                                                  
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 53 FAILED (4/7).                                                                            
                                                                                                                                
5:32:52 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  55                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H  HSS 55  -  Delete one  PFT  position and  associated                                                                    
     cost.                                                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  Department  closed  the Ketchikan  Regional  Youth                                                                    
     Facility and  transferred an Office  Assistant position                                                                    
     to  Probation  Services.  Essentially  this  is  a  new                                                                    
     position in  this allocation. As a  result of declining                                                                    
     state revenues and as a  cost containment measure, this                                                                    
     amendment deletes  the position and the  FY 17 budgeted                                                                    
    cost of the position from the FY 18 budget request.                                                                         
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair  Gara  spoke  to his  objection.  He  stated  the                                                                    
amendment  contained   a  cost  savings  that   had  already                                                                    
occurred  because  the  Ketchikan Youth  Facility  had  been                                                                    
closed.  He  noted it  was  not  a  great cost  savings.  He                                                                    
detailed  that the  state would  not pay  for the  facility,                                                                    
employees,  or  to keep  the  youths  near their  homes.  He                                                                    
continued  that the  position was  needed because  the youth                                                                    
were  no  longer   in  Ketchikan;  the  youths   had  to  be                                                                    
transported back to Ketchikan  for court appearances. It was                                                                    
not free to  close a youth facility, move a  child 500 miles                                                                    
from their  home, and  think they  could do  it all  with no                                                                    
staff.                                                                                                                          
                                                                                                                                
Representative  Wilson asked  when  office assistants  begin                                                                    
transporting  juveniles  from  one   area  to  another.  She                                                                    
explained that  the department wanted  to move  the position                                                                    
in  Ketchikan somewhere  else  (due to  the  closure of  the                                                                    
facility)  because there  had probably  been someone  in the                                                                    
position.  She  was  pretty certain  the  position  was  not                                                                    
responsible  for   transporting  youth.  She   believed  the                                                                    
position was working in an office doing paperwork.                                                                              
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Pruitt, Thompson, Tilton, Wilson                                                                               
OPPOSED: Gara, Guttenberg, Kawasaki, Ortiz, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H HSS 56 FAILED (5/6).                                                                            
                                                                                                                                
5:36:24 PM                                                                                                                    
                                                                                                                                
Representative Foster  WITHDREW Amendment H HSS  57 (copy on                                                                    
file). He  explained that the committee  had already adopted                                                                    
contingency language related to the Nome Youth Facility.                                                                        
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  67                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Public Assistance                                                                                                          
     Public Assistance Administration                                                                                           
     H HSS 67  Delete 2 PFT positions  and associated costs.                                                                    
     Funding reductions in Services and Commodities.                                                                            
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  two  positions transferred  to                                                                    
     this   allocation   from  Energy   Assistance   Program                                                                    
     administrative  personnel  and  reduces funding  for  a                                                                    
     position the  Department deleted  with no  reduction in                                                                    
     funds. This  amendment also  reduces the  services line                                                                    
     item  to align  the FY  18  budget request  with FY  16                                                                    
     actual   expenditures    for   information   technology                                                                    
     (increased from  $13,200 to  $307,000) and  reduces the                                                                    
     commodities line to align the  FY 18 budget request for                                                                    
     business   supplies  to   FY  16   actual  expenditures                                                                    
     (increased  from   $47,200  to  $153,300).   The  total                                                                    
     reduction to this allocation is $642,900.                                                                                  
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara  spoke to his  objection. He  addressed that                                                                    
the only  low income  heating assistance provided  was fully                                                                    
federally  funded -  the Low  Income Home  Energy Assistance                                                                    
Program  (LIHEAP). Until  the previous  year there  had also                                                                    
been  a supplemental  state  energy  assistance policy  that                                                                    
helped  people the  federal program  did not.  The amendment                                                                    
would  eliminate  positions  responsible  for  administering                                                                    
LIHEAP.  Additionally,  while   the  amendment  proposed  to                                                                    
delete two positions,  it would mean the loss  of 50 percent                                                                    
matching funds  (twice as much).  He believed it  would mean                                                                    
the loss  of four  employees instead  of two.  He reiterated                                                                    
that  the  program was  fully  federally  funded for  people                                                                    
needing help,  especially in rural  areas where the  cost of                                                                    
heating a home  was sometimes over $1,000 per  month. He did                                                                    
not  believe  deleting the  positions  was  wise. He  stated                                                                    
there  was no  evidence  that the  program  could be  fairly                                                                    
administered by deleting the  employees. He highlighted that                                                                    
the   information  technology   portion  of   the  amendment                                                                    
pertained to a chargeback the  department had to pay back to                                                                    
the Department  of Administration.  He reasoned if  the item                                                                    
was cut,  the department  would have  to cut  something else                                                                    
inside the department. He concluded  that the department was                                                                    
about as lean as it had  ever been. He believed it meant the                                                                    
department would  need to choose between  children, seniors,                                                                    
disabled people, and people with alcoholism problems.                                                                           
                                                                                                                                
Representative Wilson explained that  the two positions were                                                                    
being transferred  and were no longer  administering LIHEAP.                                                                    
Additionally, the  funds were not interagency  receipts. She                                                                    
did  not  know why  the  DHSS  was  paying anything  to  the                                                                    
Department of Administration.                                                                                                   
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 67 FAILED (4/7).                                                                            
                                                                                                                                
5:41:07 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  70                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Fraud Investigation                                                                                                        
     H HSS 70 - Personal Services reduction and removal of                                                                      
     General Funds.                                                                                                             
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment removes all general funds in the FY 18                                                                      
     budget request for this allocation and reduces the                                                                         
     request in the Personal Services line item from                                                                            
     $1,542,400 to $1,518,400.                                                                                                  
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara spoke to his  objection. He underscored that                                                                    
the department had reduced its  budget by $30 million in the                                                                    
current  year. He  explained that  the amendment  would lose                                                                    
money for the  state. He spoke to the efforts  to bolster up                                                                    
the fraud unit to detect  people engaging in public benefits                                                                    
fraud. He continued  that the testimony in  every hearing he                                                                    
had  been in  had been  that a  fraud investigator  could be                                                                    
added  and  it  would  save the  state  money.  He  believed                                                                    
deleting the funding would result  in a decreased ability to                                                                    
detect fraud and  for the state to  recover overpaid monies.                                                                    
He  believed  it  would inadvertently  increase  the  budget                                                                    
deficit.                                                                                                                        
                                                                                                                                
Representative  Pruitt asked  the amendment  sponsor if  the                                                                    
general funds  were required  for a  federal fund  match. He                                                                    
wanted to ensure  they would not be jeopardizing  any of the                                                                    
federal funding.                                                                                                                
                                                                                                                                
Representative  Wilson  reported  that  the  money  was  not                                                                    
matching funding  - the amendment pertained  only to General                                                                    
Fund dollars.  She continued that  the funds had  been added                                                                    
in -  as other money  had come in  the funds had  been taken                                                                    
out  and the  amount was  down to  $24,000. There  was still                                                                    
$1,518,400  remaining in  the allocation.  She believed  the                                                                    
funds  would provide  sufficient  investigators to  continue                                                                    
the work.                                                                                                                       
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Pruitt, Thompson, Tilton, Wilson                                                                               
OPPOSED: Gara, Guttenberg, Kawasaki, Ortiz, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H HSS 70 FAILED (5/6).                                                                            
                                                                                                                                
5:44:38 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  72                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Quality Control                                                                                                            
     H HSS 72  - Remove General Funds and  reduce funding to                                                                    
     Personal Services and Travel                                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  removes all unrestricted  general funds                                                                    
     (fund  source 1004)  in the  FY 18  budget request  for                                                                    
     this allocation  and reduces the budget  request in the                                                                    
     Personal Services  line item from $2,318,700  to the FY                                                                    
     17 Management Plan level of  $2,301,100, a reduction of                                                                    
     $17,600. A reduction  of $22,000 is also  made from the                                                                    
     Travel  line  item to  more  closely  align the  FY  18                                                                    
     budget request of $209,300 to FY 16 actual                                                                                 
     expenditures of $158,000.                                                                                                  
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara spoke  to his  objection.  He defended  the                                                                    
department  in  its  efforts to  increase  efficiencies.  He                                                                    
detailed that between the 2017  and 2018 budgets, travel had                                                                    
already  been reduced  by 13  percent  ($846,000). He  added                                                                    
that travel costs had decreased by  18 percent from FY 15 to                                                                    
the current year.  The staff impacted by  the amendment were                                                                    
responsible    for   overseeing    and   ensuring    benefit                                                                    
determinations  were done  correctly (so  benefits were  not                                                                    
inappropriately  given  or  denied).  He  noted  that  often                                                                    
benefits included  food stamps  for families  with children.                                                                    
He  spoke to  the importance  of getting  the determinations                                                                    
done right.  Additionally, the staff  referred cases  to the                                                                    
fraud department  in order  for the  state to  recover money                                                                    
that had  been overpaid. He  stressed that much of  the work                                                                    
was federally  mandated. For  example, federal  law required                                                                    
field service visits  from main hubs to  smaller offices. He                                                                    
underscored that  it was  not possible  to tell  the federal                                                                    
government the state would accept  food stamp money, but not                                                                    
follow the  associated requirements. He emphasized  that the                                                                    
funds could not be cut.                                                                                                         
                                                                                                                                
Representative Wilson  stressed she had based  the amendment                                                                    
on FY  16 actuals. She  did not believe the  amendment would                                                                    
cut  a position  -  the entire  amendment  was $39,600.  She                                                                    
supported spreading cuts in small  amounts in order to avoid                                                                    
closing up numerous programs.                                                                                                   
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 72 FAILED (4/7).                                                                            
                                                                                                                                
5:48:28 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  73                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Work Services                                                                                                              
     H  HSS 73  - Funding  reductions for  Personal Services                                                                    
     and   Travel   to   more  closely   align   with   FY16                                                                    
     expenditures                                                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     were  $6,900 and  the FY  18 Governor's  budget request                                                                    
     for this line item is  $94,400 resulting in an increase                                                                    
     of $87,500  over FY 16 actual  expenditures. Therefore,                                                                    
     a reduction of $70,000 is  made in the Travel line item                                                                    
     from the  FY 18  budget request  to more  closely align                                                                    
     this line item with FY 16 actual travel expenditures.                                                                      
                                                                                                                                
     The  Department  deleted two  positions  in  the FY  18                                                                    
     budget request  that had been  vacant for over  a year,                                                                    
     however  there  was  no  reduction  in  funds  for  the                                                                    
     positions deleted.   This  amendment makes  a reduction                                                                    
     of $41,516 in  the Personal Services line  item for the                                                                    
     positions deleted.                                                                                                         
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  spoke to his  objection. He  explained that                                                                    
the funds  for the previously deleted  positions had already                                                                    
been  deleted. The  remaining  position  was half  federally                                                                    
funded  and  was  responsible for  helping  individuals  get                                                                    
things like food stamps in  order to feed their families and                                                                    
return to  work. He  had consulted  with the  department and                                                                    
had learned that if the  cut came to fruition the department                                                                    
would have  to cut something else.  He relayed it was  not a                                                                    
luxury position  and the  cut represented  a cut  to another                                                                    
part of  the department  because the work  would have  to be                                                                    
done.                                                                                                                           
                                                                                                                                
Representative Wilson replied that  the department needed to                                                                    
specify if  it was utilizing  the funds somewhere  else. She                                                                    
reasoned that if  the budget books did not show  a zero next                                                                    
to the deleted positions, there was still money attached.                                                                       
                                                                                                                                
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,                                                                      
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 73 FAILED (4/7).                                                                            
                                                                                                                                
5:51:36 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H HSS 75                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Public Health                                                                                                              
     Nursing                                                                                                                    
     H  HSS 75  - Reduce  funding in  the personal  services                                                                    
     line  (including  overtime  pay), and  the  travel  and                                                                    
     commodities lines                                                                                                          
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $67,276                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment  reduces  premium  pay by  25%  of  the                                                                    
     amount  budgeted in  anticipation of  reduced overtime.                                                                    
     Declining state  revenues dictate that  expenditures be                                                                    
     reduced by  taking a fiscally conservative  approach to                                                                    
     working hours and that state  services be provided in a                                                                    
     more  effective  and  efficient  manner.  Therefore,  a                                                                    
     reduction of $16,819 to the  Personal Service line item                                                                    
     is made by this portion of the amendment.                                                                                  
                                                                                                                                
     FY 2016  actual expenditures  in the  Personal Services                                                                    
     line  item  were  $19,398,200  and  the  FY  18  budget                                                                    
     request for this line item  is $19,490,300 resulting in                                                                    
     an increase  of $92,100  over FY 16  expenditures. This                                                                    
     portion  of  the amendment  reduces  the  FY 18  budget                                                                    
     request  for  the Personal  Services  line  item by  an                                                                    
     additional  $92,100 to  more closely  align  the FY  18                                                                    
     budget   request  with   FY   16  actual   expenditures                                                                    
     resulting in a total  reduction to the Personal Service                                                                    
     line item of $108,919.                                                                                                     
                                                                                                                                
     FY  2016 actual  expenditures in  the Travel  line item                                                                    
     for in-state  employee travel were $789,800  and the FY                                                                    
     18  budget  request  for this  line  item  is  $865,400                                                                    
     resulting  in  an  increase  of   $97,800  over  FY  16                                                                    
     expenditures. This  amendment reduces the FY  18 budget                                                                    
     request  for in-state  employee travel  by $100,000  to                                                                    
     more closely align the FY  18 budget request with FY 16                                                                    
     actual expenditures. The amendment  also deletes the FY                                                                    
     18 budget  request of $31,200  in the Travel  line item                                                                    
     for  moving   costs  associated   with  hard   to  fill                                                                    
     positions resulting  in a  total reduction  of $131,200                                                                    
     to the Travel line item.                                                                                                   
                                                                                                                                
     This  amendment  makes  reductions to  the  Commodities                                                                    
     line  item of  $100,000  in the  business category  and                                                                    
     $100,000 in  the scientific and medical  category for a                                                                    
     total reduction of $200,000 to the Commodities line.                                                                       
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara  spoke to his  objection. He  discussed that                                                                    
the  department had  done its  best to  minimize the  amount                                                                    
that  people were  damaged. He  noted that  people had  been                                                                    
damaged due to  budget cuts. He stressed  that the amendment                                                                    
would do worse  damage. He spoke to the  nursing function at                                                                    
the  department   and  relayed   it  had  already   lost  39                                                                    
positions. He  stated there were  a number of  problems with                                                                    
the amendment. First, cutting  overtime meant the department                                                                    
would be  required to  hire staff. He  stressed, it  was not                                                                    
possible  to  cut  the  number  of  hours  provided  by  the                                                                    
department  to  provide  the service.  He  underscored  that                                                                    
overtime  was  cheaper  than  hiring   a  new  employee.  He                                                                    
continued that due  to prior budget cuts  the department had                                                                    
already closed a  public health center in  Nome, which meant                                                                    
it was  now necessary  to pay for  travel. He  reasoned that                                                                    
cutting was  not always  free. He detailed  that the  cut of                                                                    
roughly $500,000  would result in fewer  nurses working with                                                                    
children  with undetected  hearing  problems, especially  in                                                                    
communities without health  facilities (providers were often                                                                    
traveling  nurses). He  underscored that  the nurses  helped                                                                    
families  incredibly.  He  elaborated   that  if  a  hearing                                                                    
problem continued to go undetected  a child was likely to do                                                                    
much  worse  in   school  and  in  life.   He  stressed  the                                                                    
importance  of   detecting  the  problem  early   on  in  an                                                                    
individual's life. Additionally, the  nurses did "well baby"                                                                    
exams,  which was  a good  thing especially  for communities                                                                    
without  health   centers.  He  detailed  that   the  nurses                                                                    
provided immunizations  to prevent people from  getting sick                                                                    
or  worsening,   helped  to  provide  nutrition   for  young                                                                    
mothers,  and  worked with  children  and  families with  no                                                                    
other health  options. He  stated it was  a policy  call and                                                                    
reiterated  that 39  positions  in the  section had  already                                                                    
been lost and  the budget had been cut by  over 12.5 percent                                                                    
since FY  15. He believed  the department had done  its best                                                                    
to locate cuts; $30 million  had already been cut. He opined                                                                    
that  the department  was already  faced  with doing  damage                                                                    
control. He did not want to create more damage.                                                                                 
                                                                                                                                
Representative Ortiz reported that  the public health clinic                                                                    
had been closed in Wrangell.  He noted that Wrangell did not                                                                    
have road  access to other  health clinics. He  believed the                                                                    
amendment would be a step in the wrong direction.                                                                               
                                                                                                                                
Representative Wilson was trying to  take the budget back to                                                                    
FY 16 levels.                                                                                                                   
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 75 FAILED (4/7).                                                                            
                                                                                                                                
5:57:43 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  76                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Women, Children and Family Health                                                                                          
     H HSS 76 - Delete three PFT positions and associated                                                                       
     funding; Services and Grants reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment deletes  one  of  seven Health  Program                                                                    
     Managers, one  of seven  Public Health  Specialists and                                                                    
     one  of   six  Research   Analyst  positions   and  the                                                                    
     associated personal  service costs. As a  result, three                                                                    
     positions are  deleted and a  reduction of  $302,500 is                                                                    
     made to the Personal Services line item.                                                                                   
                                                                                                                                
     FY  2016  actual  expenditures in  the  other  services                                                                    
     category of the Services  line item were $1,805,600 and                                                                    
     the  FY  18  budget  request  for  this  line  item  is                                                                    
     $3,281,300 resulting in an  increase of $1,475,700 over                                                                    
     FY 16  expenditures. This amendment  reduces the  FY 18                                                                    
     budget request in the Services  line item by $1,000,000                                                                    
     to more closely align the  FY 18 budget request with FY                                                                    
     16 actual expenditures.                                                                                                    
                                                                                                                                
     FY 2016 actual expenditures  in the benefit category of                                                                    
     the Grants line item were  $11,600 and the FY 18 budget                                                                    
     request for this line item  is $171,700 resulting in an                                                                    
     increase  of $160,100  over  FY  16 expenditures.  This                                                                    
     amendment  reduces  the FY  18  budget  request in  the                                                                    
     Services  line item  by $75,000  to more  closely align                                                                    
     the   FY  18   budget   request  with   FY  16   actual                                                                    
     expenditures.                                                                                                              
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara spoke to his  objection. He relayed that the                                                                    
Women,  Children  and Family  Health  section  had been  cut                                                                    
since  FY  15. He  believed  that  the three  positions  the                                                                    
amendment would cut  would likely be five  people because it                                                                    
involved  federal matching  funds. He  surmised that  taking                                                                    
away the $302,000 would  eliminate approximately $200,000 to                                                                    
$250,000 in  federal funds. He  detailed that  the employees                                                                    
were  responsible  for  health  screening  for  mothers  and                                                                    
children, and  opioid addiction work  and education.  He did                                                                    
not support cutting funds for  the state's opioid taskforce,                                                                    
which  the  amendment  would inadvertently  do.  The  second                                                                    
paragraph  in  the  amendment dealt  with  fixed  costs  the                                                                    
department  had to  pay for  leases, risk  management, human                                                                    
resources, information technology paid  to the Department of                                                                    
Administration.  He believed  that cutting  the funds  would                                                                    
mean  requiring  the  department   to  make  cuts  to  other                                                                    
programs for  kids, seniors, or disabled  people. The grants                                                                    
were largely  federally funded; if the  grants were replaced                                                                    
with  state funds  it meant  the cuts  would have  to go  to                                                                    
another  part  of  the  department.  He  stressed  that  the                                                                    
amendment  was not  free  and would  require  cuts to  other                                                                    
parts of  a department  that served  among the  most fragile                                                                    
people in the state.                                                                                                            
                                                                                                                                
Representative  Wilson  indicated  that  the  funds  in  the                                                                    
amendment were  not interagency receipts.  She was  not sure                                                                    
how  the   department  was  giving   $3.2  million   to  the                                                                    
Department of  Administration. She believed there  should be                                                                    
some type of  agreement "to be able to do  that." She agreed                                                                    
that  $115,000  of the  amendment  was  matching funds,  the                                                                    
$302,500 was not. She continued  that $1,261,700 was General                                                                    
Fund funding.                                                                                                                   
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 76 FAILED (4/7).                                                                            
                                                                                                                                
6:02:50 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:11:11 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  78                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Public Health Administrative Services H HSS 78 -                                                                           
     Delete one PFT position and associated costs.                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  an  Administrative  Assistant                                                                    
     position  from  the  FY  18  budget  request,  makes  a                                                                    
     reduction  to  the  Personal   Services  line  item  of                                                                    
     $98,634  and requires  the  Department to  redistribute                                                                    
     the workload to existing staff.                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara  discussed  that  the  Division  of  Public                                                                    
Health  had already  lost  63 staff;  there  were 13  people                                                                    
remaining in the Administrative  Services Division. He noted                                                                    
the  amendment  specified  it  would  delete  one  position;                                                                    
however,  the positions  were 50  percent federal  match. He                                                                    
surmised amendment  would likely  result in  the loss  of 2,                                                                    
2.5,  or  3  positions.  He  explained  the  positions  were                                                                    
support staff for public health  nurses and were responsible                                                                    
for  arranging  travel,  medical  supplies,  and  other.  He                                                                    
reiterated the department's budget  had already been reduced                                                                    
and he did not believe it could afford an additional cut.                                                                       
                                                                                                                                
Representative   Wilson   provided  closing   remarks.   She                                                                    
believed  UGF match  matched federal  funding. She  reasoned                                                                    
that if  the department was  not listing the item  under UGF                                                                    
match, it  should be doing  so in the future.  The amendment                                                                    
pertained to UGF only.                                                                                                          
                                                                                                                                
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 to adopt Amendment H HSS 78 FAILED (4/7).                                                                            
                                                                                                                                
6:14:50 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  81                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Epidemiology                                                                                                               
     H HSS 81 - Delete 3PFT positions and associated                                                                            
     funding. Funding reduction to grants line items.                                                                           
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $44,944                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment  reduces  premium  pay by  25%  of  the                                                                    
     amount  budgeted in  anticipation of  reduced overtime.                                                                    
     Declining state  revenues dictate that  expenditures be                                                                    
     reduced by  taking a fiscally conservative  approach to                                                                    
     working hours and that state  services be provided in a                                                                    
     more  effective and  efficient  manner. Therefore,  the                                                                    
     Personal Services line is reduced by $11,236.                                                                              
                                                                                                                                
     This  amendment   also  makes  a  reduction   from  the                                                                    
     Personal  Services line  item by  deleting 3  positions                                                                    
     and the associated personal service costs of $436,500.                                                                     
                                                                                                                                
     This amendment deletes,  one of seven Epidemiologist's,                                                                    
     one of  five Health  Program Managers  and one  of five                                                                    
     Administrative Assistants.                                                                                                 
                                                                                                                                
     FY 16 actual  expenditures in the grants  line item for                                                                    
     Sub-Recipient pass  through grants were  $1,010,300 and                                                                    
     the  FY  18  budget  request  for  this  line  item  is                                                                    
     $1,171,000 resulting  in an  increase of  $160,700 over                                                                    
     FY 16  expenditures, therefore a reduction  of $200,000                                                                    
     is made from the Grants line.                                                                                              
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Vice-Chair Gara spoke  to his objection. He  had spoken with                                                                    
the department  and corrected that the  amendment applied to                                                                    
federal grants, not General Fund  grants. He stated that the                                                                    
budget  code  1004  was  merely General  Fund  and  did  not                                                                    
indicate  whether federal  match funding  would be  lost. He                                                                    
stated  the  epidemiology  section was  roughly  81  percent                                                                    
federally funded.  He stated  it was  difficult to  tell how                                                                    
much  federal money  would be  lost when  state funding  was                                                                    
cut. He underscored that state  funding for the epidemiology                                                                    
section   had   been   cut  by   50   percent   since   2015                                                                    
(approximately $13 million). The  department was tasked with                                                                    
monitoring and  informing the public about  health epidemics                                                                    
and  health trends.  He concluded  it was  unknown how  much                                                                    
federal  funding and  positions the  state would  lose as  a                                                                    
result of the cut.                                                                                                              
                                                                                                                                
Representative  Wilson provided  wrap up  on her  amendment.                                                                    
She corrected that  the code 1004 was UGF,  not match money.                                                                    
She noted that the code 1003 was General Fund match.                                                                            
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 81 FAILED (4/7).                                                                            
                                                                                                                                
6:18:39 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  84                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Emergency Medical Services Grants H HSS 84 - Emergency                                                                     
     Medical Services Grants                                                                                                    
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes   all  funding  for  statewide                                                                    
     hospital  and  healthcare   preparedness  and  for  the                                                                    
     operations of  the seven EMS regions.  Although this is                                                                    
     a good  program, it  is not  the responsibility  of the                                                                    
     state  to  fund  these  programs  but  the  users  that                                                                    
     benefit.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson  commented   that  she  believed  the                                                                    
committee would  be having real conversations  about some of                                                                    
the  appropriations. She  had brought  forward  some of  the                                                                    
amendments because  she believed a conversation  was needed.                                                                    
The  current   amendment  pertained  to   emergency  medical                                                                    
services  grants   helping  various  groups  to   train  for                                                                    
emergencies.  She  believed  the  work  was  a  good  thing;                                                                    
however,  she believed  at some  point  the committee  would                                                                    
need  to  discuss  whether  or not  the  expenses  were  the                                                                    
responsibility of state  government versus municipalities or                                                                    
service  area  groups. She  observed  a  discussion did  not                                                                    
appear  to   be  occurring;  therefore,  she   WITHDREW  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
6:19:54 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  85                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     State Medical Examiner                                                                                                     
     H HSS 85 - Funding  reduction in extra pay to encourage                                                                    
     reduced overtime; service reduction                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $62,766                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment reduces  premium pay  by 25  percent of                                                                    
     the   amount  budgeted   in  anticipation   of  reduced                                                                    
     overtime.   Declining  state   revenues  dictate   that                                                                    
     expenditures   be   reduced   by  taking   a   fiscally                                                                    
     conservative approach  to working hours and  that state                                                                    
     services be provided in a  more effective and efficient                                                                    
     manner.                                                                                                                    
                                                                                                                                
     FY 2016  actual expenditures in the  services line item                                                                    
     for  deliver  services  were $282,900  and  the  FY  18                                                                    
     budget  request   for  this   line  item   is  $333,800                                                                    
     resulting  in  an  increase  of   $50,900  over  FY  16                                                                    
     expenditures, therefore a reduction  of $50,000 is made                                                                    
     to  this line  item to  more  closely align  the FY  18                                                                    
     budget request with FY 16 actual expenditures.                                                                             
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  spoke to his objection.  He understood that                                                                    
it  was  frustrating  to  file   an  amendment  and  not  be                                                                    
successful.  However,  he  underscored there  should  be  no                                                                    
implication that  the other committee  members had  not done                                                                    
their work. He  had worked hours with the  department on the                                                                    
items.  He  explained  that  the   medical  examiner  was  a                                                                    
statutory  position responsible  for investigating  cause of                                                                    
death. He  spoke to  the reason  for overtime  - it  was not                                                                    
possible  to   time  when  a   person  died.   The  position                                                                    
investigated   homicides  and   the  cause   of  death.   He                                                                    
emphasized  it  was  not possible  to  cut  overtime  unless                                                                    
additional  staff were  hired,  but the  cheaper option  was                                                                    
overtime pay. The  reason the section had not been  cut in a                                                                    
major way was because the  number of bodies the examiner had                                                                    
to  investigate  was  the  number  of  bodies  they  had  to                                                                    
investigate.                                                                                                                    
                                                                                                                                
Representative Wilson  provided wrap up. She  did not intend                                                                    
to come across as implying  that other committee members had                                                                    
not  done their  work. She  was  frustrated by  the lack  of                                                                    
committee  conversation  related   to  her  amendments.  She                                                                    
reasoned  that  offering amendments  was  the  only way  the                                                                    
discussions could  occur in the full  finance committee. She                                                                    
was leaving  over $57,066  in the  budget for  overtime. She                                                                    
noted she  did not know  how $62,766 had been  determined as                                                                    
the  magic  number. She  stressed  it  was important  to  be                                                                    
concerned  about seeing  increases  of  $50,000 to  $200,000                                                                    
every two  years to one line  item. She reasoned it  was how                                                                    
the state  had ended  up in  the current  financial deficit.                                                                    
She remarked  that unfortunately in good  financial times it                                                                    
was  less common  to  look  as closely  at  the budget.  She                                                                    
concluded that the amendment was only $65,700 in total.                                                                         
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn,  Guttenberg, Kawasaki, Ortiz,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 85 FAILED (4/7).                                                                            
                                                                                                                                
6:25:41 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  86                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Public Health Laboratories                                                                                                 
     H  HSS 86  - Funding  reduction  in Personal  Services,                                                                    
     Services and Commodities.                                                                                                  
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This allocation has an FY  18 budget request of $62,766                                                                    
     for  premium pay  in the  Personal Services  line item.                                                                    
     This  amendment  reduces  premium  pay by  25%  of  the                                                                    
     amount  budgeted in  anticipation of  reduced overtime.                                                                    
     Declining state  revenues dictate that  expenditures be                                                                    
     reduced by  taking a fiscally conservative  approach to                                                                    
     working hours and that state  services be provided in a                                                                    
     more  effective  and  efficient  manner.  Therefore,  a                                                                    
     reduction   of  $15,692   is   being   taken  in   this                                                                    
     allocation.                                                                                                                
                                                                                                                                
     FY 2016  actual expenditures in the  services line item                                                                    
     for  telecommunications  were  $12,000 and  the  FY  18                                                                    
     budget  request   for  this   line  item   is  $164,500                                                                    
     resulting  in  an  increase  of  $152,500  over  FY  16                                                                    
     expenditures,  therefore  a  reduction of  $100,000  is                                                                    
     made to this line.                                                                                                         
                                                                                                                                
     FY  2016 actual  expenditures in  the commodities  line                                                                    
     item for scientific and  medical supplies were $878,300                                                                    
     and  the FY  18 budget  request for  this line  item is                                                                    
     $1,100,000 resulting  in an  increase of  $221,700 over                                                                    
     FY 16  expenditures, therefore a reduction  of $200,000                                                                    
     is made to this line item.                                                                                                 
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair Gara  spoke to his  objection. He  discussed that                                                                    
public  health labs  did not  have substantial  control over                                                                    
services they  provided to  smaller medical  facilities. The                                                                    
larger  medical  facilities   (e.g.  Providence  and  Alaska                                                                    
Regional) had their own labs.  The smaller health facilities                                                                    
relied on the public health labs  for lab work. The item had                                                                    
been flat funded  over the years because  the population and                                                                    
individuals  using   medical  services  had   increased.  He                                                                    
reasoned  that  until  the  state   could  come  up  with  a                                                                    
different way to get money  to smaller medical facilities so                                                                    
they could  run their own labs,  the costs would have  to be                                                                    
paid; it  was part  of the  healthcare delivery  process. It                                                                    
was one of the economies of scale problems facing Alaskans.                                                                     
                                                                                                                                
Representative  Wilson  stated  she  was  merely  trying  to                                                                    
revert budget numbers back to FY 16 levels.                                                                                     
                                                                                                                                
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, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 86 FAILED (4/7).                                                                            
                                                                                                                                
6:29:17 PM                                                                                                                    
                                                                                                                                
Representative Wilson  WITHDREW Amendment H HSS  87 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  92                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Departmental Support Services                                                                                              
     Public Affairs                                                                                                             
     H HSS 92 - Delete 2 PFT positions and associated                                                                           
     costs.                                                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment   deletes  one  of   three  Information                                                                    
     Officer   positions   and   two  of   six   Publication                                                                    
     Specialist positions for a  total reduction of $300,000                                                                    
     in  the Personal  Services  line item  from  the FY  18                                                                    
     budget request.                                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].  She  noted the  amendment  pertained  to UGF  [fund                                                                    
code] 1004.                                                                                                                     
                                                                                                                                
Co-Chair Seaton asked  if the amendment would  delete two or                                                                    
three positions.                                                                                                                
                                                                                                                                
Representative  Wilson  answered   that  the  amendment  was                                                                    
intended  to  delete three  positions.  She  MOVED to  AMEND                                                                    
Amendment  H  HSS  92  to  reflect  the  deletion  of  three                                                                    
positions instead of  two. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
Representative   Grenn  asked   for  clarification   on  the                                                                    
location of the change.                                                                                                         
                                                                                                                                
Co-Chair  Seaton  replied  the  amendment  description  read                                                                    
"this  amendment deletes  one of  three Information  Officer                                                                    
positions and two of  six Publication Specialist positions,"                                                                    
which was a  total of three positions. The  amendment to the                                                                    
amendment changed the number of  positions from two to three                                                                    
under the "PFT" column.                                                                                                         
                                                                                                                                
Representative Grenn  surmised the change also  needed to be                                                                    
reflected in the introduction to the amendment description.                                                                     
                                                                                                                                
Co-Chair Seaton replied in the affirmative.                                                                                     
                                                                                                                                
Representative Wilson agreed.                                                                                                   
                                                                                                                                
Vice-Chair  Gara  opposed  the amendment.  He  believed  the                                                                    
number of  lost positions  should be  listed as  six because                                                                    
regardless  of the  funding code  used,  the positions  were                                                                    
partially funded by federal  money (approximately 50 percent                                                                    
federal match). He  reasoned that $300,000 turned  out to be                                                                    
$600,000  roughly. He  explained the  individuals worked  in                                                                    
rural  communities to  get information  out on  education to                                                                    
address things  like the opioid epidemic.  Additionally, the                                                                    
individuals  worked with  the Division  of Public  Health to                                                                    
get information  out. He furthered that  the individuals got                                                                    
the information out if there  was a tuberculosis outbreak or                                                                    
other.  He continued  that it  was  especially important  to                                                                    
work with  rural communities to  get the information  out on                                                                    
what they  needed to do  to protect themselves.  He stressed                                                                    
that the  individuals worked  to educate  people, especially                                                                    
in smaller  communities, to try  to combat  dangerous health                                                                    
problems.                                                                                                                       
                                                                                                                                
Representative   Ortiz   pointed    out   that   there   was                                                                    
consistently  a justification  for  the proposed  reductions                                                                    
that   read   "declining   state   revenues   dictate   that                                                                    
expenditures be  reduced by  taking a  fiscally conservative                                                                    
approach."  He opined  that the  language implied  the state                                                                    
had  not been  taking a  fiscally conservative  approach. He                                                                    
underscored  that from  FY  15 to  FY 18  there  had been  a                                                                    
reduction of $190  million to the DHSS  budget. He furthered                                                                    
there had been a reduction  to the department of $30 million                                                                    
from FY  17 to  FY 18. He  believed a  fiscally conservative                                                                    
approach had been taken.                                                                                                        
                                                                                                                                
6:33:24 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  replied  that  the  phrase  was  not                                                                    
included  in  the amendment,  but  she  did believe  in  the                                                                    
phrase. She  stressed that the state  had been overspending.                                                                    
She countered  that just because spending  had been reduced,                                                                    
it did not mean the state  was not overspending. She did not                                                                    
know  whether it  was a  department issue  or a  Legislative                                                                    
Finance Division  issue if  the correct  code was  not being                                                                    
used for  GF match. She  elaborated that the purpose  of the                                                                    
codes  was  to  indicate  whether  funds  were  matching  or                                                                    
whether the legislature had decided  to add UGF to enhance a                                                                    
program. She  stressed there  was a  significant distinction                                                                    
between  the two.  The amendment  pertained  to 1004,  which                                                                    
related  to  GF. She  stated  there  was  a problem  in  the                                                                    
coding/budgeting if  matching funds were impacted  under the                                                                    
1004  code. She  remarked  that the  amendment pertained  to                                                                    
public  affairs, which  she believed  needed  to be  reduced                                                                    
more than other areas.                                                                                                          
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Kawasaki,  Ortiz, Gara, Grenn,  Guttenberg, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION  to adopt  Amendment H HSS  92 as  amended FAILED                                                                    
(4/7).                                                                                                                          
                                                                                                                                
6:35:23 PM                                                                                                                    
                                                                                                                                
Representative Wilson  WITHDREW Amendment H HSS  93 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
Representative  Tilton MOVED  to  ADOPT Amendment  H HSS  94                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H HSS 94 - Delete the $25 million wordage allowing                                                                         
     transfers across appropriations                                                                                            
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     DELETE the following language found on Page 15, lines                                                                      
     27-29 (30-GH1855U):                                                                                                        
                                                                                                                                
     "At  the   discretion  of   the  Commissioner   of  the                                                                    
     Department  of  Health  and   Social  Services,  up  to                                                                    
     $25,000,000    may   be    transferred   between    all                                                                    
     appropriations in  the Department of Health  and Social                                                                    
     Services, except Medicaid Services."                                                                                       
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Tilton explained  that  the amendment  would                                                                    
delete the  $25 million  language allowing  transfers across                                                                    
all  appropriation lines.  She detailed  that in  2004 there                                                                    
had been  intent language added  to the budget  that allowed                                                                    
the   transfer   of   up  to   $50   million   between   all                                                                    
appropriations.  The intent  language  had been  added as  a                                                                    
temporary measure  to allow the department  to better manage                                                                    
the disaster  of the  MMIS [Medicaid  Management Information                                                                    
System]  and  its impact  on  private  sector partners.  She                                                                    
continued that  private sector partners had  been owed money                                                                    
and  the  system  had been  rejecting  their  invoices.  She                                                                    
remarked that a  number partners had been  owed thousands of                                                                    
dollars and  some had closed  as a result. The  language had                                                                    
been added to allow the  department to send money to private                                                                    
partners  to   help  keep  the  businesses   operating.  She                                                                    
believed temporary  had become  standard and  that somewhere                                                                    
along the way  the language had been reduced  to $25 million                                                                    
and  had become  standard.  She likened  it  to a  temporary                                                                    
income tax by the federal  government and stated that things                                                                    
became  standard after  a  while. She  explained  that at  a                                                                    
relatively recent House Finance  Committee meeting a request                                                                    
had been made  to determine how the transfer  had been used.                                                                    
She  relayed  the  committee  had   been  told  it  was  not                                                                    
something  that was  really used.  She asked  to remove  the                                                                    
language from the budget.                                                                                                       
                                                                                                                                
Vice-Chair  Gara   spoke  to  his  objection.   He  believed                                                                    
everyone who had  served on the House  Finance Committee had                                                                    
supported the  language [the amendment sought  to remove] in                                                                    
the  past.  He  stressed  the department's  large  size.  He                                                                    
continued  that  DHSS could  not  predict  exactly how  many                                                                    
people would need  public benefits and each  of the services                                                                    
it provided.  Additionally, DHSS could not  predict where it                                                                    
would  have  a  budget  shortfall.  He  explained  that  the                                                                    
department  did not  try to  spend every  single penny  in a                                                                    
given  allocation;  if  there   was  funding  remaining  the                                                                    
department may need  to use the funding in  another area if,                                                                    
for  example,  there  were  more   people  on  adult  public                                                                    
assistance than  anticipated. The legislature  had specified                                                                    
that $50 million was too  much leeway. He furthered that the                                                                    
prior   House  Finance   Committee   chair  from   Fairbanks                                                                    
[Representative Steve Thompson] and  others on the committee                                                                    
had also specified  they did not want  DHSS transferring the                                                                    
money  between  Medicaid  and   non-Medicaid  parts  of  the                                                                    
department; they did not want  DHSS to use Medicaid funds to                                                                    
pay for  public benefits or  vice versa. He stated  that the                                                                    
legislature  could change  its policy,  but he  believed the                                                                    
language was rational. He concluded  that the language would                                                                    
prevent DHSS  from having to  come back  to LB&A for  an RPL                                                                    
during the interim or with a supplemental request.                                                                              
                                                                                                                                
6:39:30 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  appreciated the amendment.  He stated                                                                    
that $25 million  was a substantial amount of  money. He did                                                                    
not  like  it when  the  legislature  started talking  about                                                                    
millions  of dollars  like it  was $50.  He did  not have  a                                                                    
problem with  the department going  through the  RPL process                                                                    
with LB&A.  He recalled that  when he  had been on  the LB&A                                                                    
committee, funding  had only  been denied  twice -  one time                                                                    
was related  to a  federal program; in  the end  the funding                                                                    
had  gone  through.  He  believed  it  was  worth  having  a                                                                    
conversation with the "appropriators"  if the needed funding                                                                    
was "off that far." He supported the amendment.                                                                                 
                                                                                                                                
Representative Kawasaki agreed that  $25 million was a large                                                                    
number,  but  when  considering the  totality  of  the  DHSS                                                                    
budget, Medicaid  services represented 1 percent  (2 percent                                                                    
of the  non-Medicaid budget). He used  the typical household                                                                    
budget as  an example  and noted  that many  budgets slipped                                                                    
between the 2 percent. He  did not believe it was irrational                                                                    
to have  the department dictate the  funds without requiring                                                                    
it to come back to LB&A every time.                                                                                             
                                                                                                                                
6:41:29 PM                                                                                                                    
                                                                                                                                
Representative Wilson  spoke in favor of  the amendment. She                                                                    
had supported  including the language  in the past,  but she                                                                    
it  was  important  to  be  more  careful  with  funds.  She                                                                    
underscored  that  the  only   check  and  balance  was  the                                                                    
requirement for the department to  return to the legislature                                                                    
for additional  funds if it  exceeded its  allocated amount.                                                                    
She  reasoned  that  when the  legislature  was  considering                                                                    
things like  an income tax  or a reduction to  the Permanent                                                                    
Fund Dividend, it was necessary  to watch where every dollar                                                                    
went. She reasoned that the  legislature had implemented the                                                                    
necessary  provisions if  the  department  needed the  extra                                                                    
money.  She stated  that $25  million  may not  seem like  a                                                                    
substantial amount  when talking about $1  billion; however,                                                                    
$25 million  was significant to  Alaskans. She  believed the                                                                    
legislature  should  definitely  be able  to  tell  Alaskans                                                                    
where the money was going.                                                                                                      
                                                                                                                                
Co-Chair  Seaton opposed  the amendment.  He remarked  there                                                                    
was the  other option of  having departments come  back with                                                                    
supplemental   requests.  He   would  prefer   not  to   see                                                                    
supplemental requests.  The language enabled  the department                                                                    
to use  funds from  one part of  its allocation  to another,                                                                    
which decreased the probability of a supplemental request.                                                                      
                                                                                                                                
6:43:02 PM                                                                                                                    
                                                                                                                                
Representative  Tilton provided  wrap up  on the  amendment.                                                                    
She  stated  that  no other  department  had  the  language,                                                                    
including DEED. She stressed the  language had been included                                                                    
as temporary assistance  and had been added  with the intent                                                                    
of  ensuring the  private sector  did not  have to  shut its                                                                    
doors. She  remarked that Vice-Chair  Gara had  spoken about                                                                    
the  substantial  $30 million  cut  to  the department.  She                                                                    
emphasized that $25 million is  a major amount of money. She                                                                    
stated it  was within the legislature's  power to scrutinize                                                                    
and  know where  the funds  were  spent. She  referred to  a                                                                    
prior  conversation during  the  subcommittee process  about                                                                    
moving a  $3.7 million  request. The subcommittee  had asked                                                                    
the department for detail on  how the appropriated money had                                                                    
been moved around. She stressed  the committed had been told                                                                    
it was not something the  department really used. She stated                                                                    
the department had not used  the method for the $3.7 million                                                                    
and  had  indicated it  would  not  move the  funds  without                                                                    
coming  to  the  legislature  first.   Under  that  line  of                                                                    
reasoning, she  wondered why the  department would  move $25                                                                    
million.                                                                                                                        
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                               
OPPOSED: Ortiz, Gara, Guttenberg, Kawasaki, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H HSS 94 FAILED (5/6).                                                                            
                                                                                                                                
6:45:30 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H HSS  99                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Information Technology Services                                                                                            
     H  HSS  99 -  Delete  5  PFT positions  and  associated                                                                    
     funding. Reduce travel and service funding.                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  deletes  2 of  26  Analyst  Programmer                                                                    
     positions, 1 of 8 Data  Processing Technicians and 2 of                                                                    
     19 Micro//Network  Technicians for a total  deletion of                                                                    
     5 positions and $500,000 from  the FY 18 budget request                                                                    
     in the Personal Services line item.                                                                                        
                                                                                                                                
     FY 16 actual  expenditures in the Travel  line item for                                                                    
     In-State  Employee travel  were $27,900  and the  FY 18                                                                    
     budget request for this line  item is $49,700 resulting                                                                    
     in  an increase  of  $21,800 over  FY 16  expenditures.                                                                    
     This  amendment reduces  the FY  18  budget request  by                                                                    
     $20,000 to more closely align  the FY 18 budget request                                                                    
     with FY 16 actual expenditures.                                                                                            
                                                                                                                                
     FY  16 actual  expenditures in  the Services  line item                                                                    
     for Information  Technology were $1,202,700 and  the FY                                                                    
     18  budget request  for this  line  item is  $1,328,600                                                                    
     resulting  in  an  increase  of  $126,000  over  FY  16                                                                    
     expenditures. This  amendment reduces the FY  18 budget                                                                    
     request by $126,000  to align the FY  18 budget request                                                                    
     with FY 16 actual expenditures.                                                                                            
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. She  clarified that  the amendment  made suggestions                                                                    
because  she  had not  removed  PCNs;  it would  enable  the                                                                    
department to select other positions instead.                                                                                   
                                                                                                                                
Vice-Chair  Gara spoke  to his  objection.  He stressed  the                                                                    
department's large  size. The department had  worked to find                                                                    
places to  cut travel and had  cut almost $1 million  in the                                                                    
current year.  He stressed that  every part of  a department                                                                    
was not the same. The  five positions identified had federal                                                                    
matching  funds  and the  amendment  would  likely mean  the                                                                    
deletion  of more  than five  positions. He  underscored the                                                                    
importance of  speaking to  people about  how the  cut would                                                                    
impact the department instead of  merely looking at a budget                                                                    
book. He relayed  that the systems impacted  by the proposed                                                                    
cuts were tasked with paying  providers (e.g. for Medicaid).                                                                    
He stressed  that deleting the  positions would  most likely                                                                    
slow down the payment  to Medicaid healthcare providers. The                                                                    
systems   also   helped   determine   benefit   eligibility.                                                                    
Additionally,   the  systems   helped  identify   fraudulent                                                                    
applications and  was responsible for covering  and tracking                                                                    
the  daily payments  given to  foster parents  (enabling the                                                                    
state  to  determine  how to  leverage  more  federal  match                                                                    
foster care  money). The travel was  important because there                                                                    
were  not IT  specialists in  every community.  For example,                                                                    
the  past  weekend  there  had   been  a  server  outage  in                                                                    
Ketchikan and  an IT specialist  had to travel  to Ketchikan                                                                    
to get the  server running again. The  $126,000 for services                                                                    
went  to   things  like  replacement   computers,  monitors,                                                                    
cables, servers, and other. He  concluded the department had                                                                    
tried  to find  its  $30  million in  cuts  and  he did  not                                                                    
believe it  could be  replicated in the  future. He  did not                                                                    
believe  the  department  could absorb  the  additional  cut                                                                    
proposed in the amendment.                                                                                                      
                                                                                                                                
6:49:41 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She remarked that she continued  to hear about the impact to                                                                    
the  department,  but  very  little   about  the  impact  to                                                                    
Alaskans if some of the  choices were not made. She remarked                                                                    
the  state may  have been  trading off  computers much  more                                                                    
often because it had the  money. She stated sometimes things                                                                    
had  to  last  longer  when  there  was  little  money.  She                                                                    
underscored that  things changed when money  gets tight. She                                                                    
reiterated  that  it  was  not  merely  the  impact  on  the                                                                    
department,  but  the  impact  to Alaska  residents  if  the                                                                    
budget was maintained at the proposed level.                                                                                    
                                                                                                                                
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,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 99 FAILED (4/7).                                                                            
                                                                                                                                
6:51:21 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  Amendment H  HSS 102                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Human Services Community Matching Grant                                                                                    
     H HSS 102 - Funding reduction to the Grants line item.                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces the FY  18 budget request in the                                                                    
     Grants  line item  by $387,000  to a  funding level  of                                                                    
     $1,000,000  for  Sub-Recipient pass-through  grants  to                                                                    
     municipalities  who  contract with  various  non-profit                                                                    
     sub-grantees for human services.                                                                                           
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative Kawasaki  stated that sometimes the  item was                                                                    
overlooked because  it only impacted Anchorage,  Mat-Su, and                                                                    
Fairbanks.  He  explained  that the  purpose  of  the  human                                                                    
services  matching grants  had been  to pass  off grants  to                                                                    
municipalities   in  order   for   municipalities  to   help                                                                    
themselves  with the  social services  network. It  had been                                                                    
determined  the method  was more  efficient than  having the                                                                    
state try  to do the  same thing. He furthered  that several                                                                    
years earlier  the total grants to  the three municipalities                                                                    
had  been  almost  $4  million, but  the  funding  had  been                                                                    
reduced to  $1.4 million. The  cut would further  reduce the                                                                    
amount to $1 million. He  spoke to the return on investment;                                                                    
each of the  communities was responsible for  coming up with                                                                    
a  30 percent  local  match. Many  of  the different  groups                                                                    
obtaining  funding through  the grant  system had  been very                                                                    
successful.  For  example,  the   Fairbanks  Food  Bank  was                                                                    
reporting a higher number of  people requesting food baskets                                                                    
in the current  year. He referred to  the Interior Community                                                                    
Health  Center  that  specifically  helped  individuals  who                                                                    
could not afford a regular  physician. The center looked out                                                                    
for the indigent in particular  and had a sliding fee scale.                                                                    
The Interior  Aids Association  operated a  methadone clinic                                                                    
and  Big  Brothers  Big Sisters  helped  kids  primarily  in                                                                    
single  parent  families.   The  agencies  were  desperately                                                                    
working  in communities  and  improving  the social  service                                                                    
network  at a  time when  the state  had been  faltering. He                                                                    
concluded that  cuts to the granting  agencies would further                                                                    
harm the social service network.                                                                                                
                                                                                                                                
Vice-Chair  Gara  spoke to  his  objection.  He agreed  with                                                                    
comments  made by  Representative Kawasaki  and noted  there                                                                    
were also  matching grants, which  would be impacted  by the                                                                    
next  amendment seeking  to cut  matching  grants for  other                                                                    
areas of  the state. He  stressed the legislature  could not                                                                    
keep moving  the goal  posts. He recalled  that in  the past                                                                    
the argument  had been  that if the  state ran  shelters for                                                                    
abused  women,   a  homeless  shelter,  or   an  Alzheimer's                                                                    
resource  center it  would be  very expensive.  Instead, the                                                                    
state had decided  that work could be  done more efficiently                                                                    
and less expensively. The amendment's  proposed cut to human                                                                    
services  matching grants  would  be a  cut  to Beans  Café,                                                                    
AWAKE, Covenant  House, the  Disease Resource  Center, Clare                                                                    
House, the Food  Bank for Alaska, and other.  The Mat-Su had                                                                    
been added  to the  program when  former Senator  Lyda Green                                                                    
had been  in the  legislature. He stated  the money  had not                                                                    
gone up, but  Mat-Su had been added and the  money was split                                                                    
three ways. He  stressed that the services  were crucial and                                                                    
were provided  at significantly lower  costs than  the state                                                                    
could offer. He believed  the amendment would increase costs                                                                    
because the  state would end  up paying for  the individuals                                                                    
when they ended up on the street.                                                                                               
                                                                                                                                
6:55:41 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  stated it  came down  to  what fell  under the  state's                                                                    
responsibility.   She  believed   all   of  the   nonprofits                                                                    
mentioned  were  great  organizations. She  elaborated  that                                                                    
nonprofits  came into  a community  to meet  a need  and the                                                                    
community in turn  donates time, money, or  services to keep                                                                    
the nonprofit  going. She stated  Alaska was the  number one                                                                    
for the  most nonprofits per capita.  She questioned whether                                                                    
that  was  good  or  bad.  She  believed  there  were  great                                                                    
nonprofits and  there were others  that were pumped  up with                                                                    
state or  federal funding. She underscored  that communities                                                                    
would have to  step up into areas that were  not the state's                                                                    
responsibility  to fund.  She explained  it  was a  stepdown                                                                    
approach  that did  not  take  all of  the  funds away.  The                                                                    
Fairbanks  North  Star Borough  matched  some  of the  state                                                                    
funds; the community  was meeting the need at  a local level                                                                    
as well.  She was  afraid it  would reach  the time  when an                                                                    
"all or nothing" approach would be necessary.                                                                                   
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson, Pruitt                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 102 FAILED (4/7).                                                                           
                                                                                                                                
6:57:46 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  Amendment H  HSS 103                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Community  Initiative  Matching  Grants  (non-statutory                                                                    
     grants)                                                                                                                    
                                                                                                                                
     H  HSS 103  - Reduce  the FY  18 budget  for grants  as                                                                    
     these grants are not statutorily mandated.                                                                                 
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces the FY  18 budget request in the                                                                    
     Grants  line item  by $361,700  to a  funding level  of                                                                    
     $500,000 for  Sub-Recipient pass-through  grants. These                                                                    
     grants   provide   human    services   to   communities                                                                    
     throughout  the state  that  are  ineligible for  Human                                                                    
     Services Community  Matching Grant  funds. This  is not                                                                    
     mandated by statute.                                                                                                       
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative  Guttenberg  objected  to the  amendment.  He                                                                    
stated  that  the  matching   grants  were  not  statutorily                                                                    
mandated  and over  the years  it had  been determined  that                                                                    
turning the work over to  nonprofits was less expensive than                                                                    
providing the service  by the state. At the end  of the day,                                                                    
many of the services were  the least expensive way the state                                                                    
could deal  with them.  He reasoned it  was not  possible to                                                                    
walk away;  the expenses happened to  residents. He stressed                                                                    
it would  be necessary to  pay for  the expenses some  way -                                                                    
via the  state, hospitals, families, and  other. He detailed                                                                    
that  the  grants were  the  most  efficient way  to  handle                                                                    
situations that were  more expensive in every  other way. He                                                                    
continued  that  the state  had  been  cutting back  on  the                                                                    
grants over  the years and  nonprofits were doing  more with                                                                    
less,   sometimes  in   crisis  mode.   He  continued   that                                                                    
nonprofits were  not lucrative places to  work - managements                                                                    
were always stressed on delivering their services.                                                                              
                                                                                                                                
Vice-Chair  Gara believed  the  amendment was  wrong and  it                                                                    
violated  his moral  compass. He  believed  a person  should                                                                    
have  some  compassion  for  people   who  had  nothing.  He                                                                    
stressed that  places like the  Rasmuson Foundation  did not                                                                    
fund operating  costs, but only  one-time capital  costs. He                                                                    
listed  places that  would be  cut  statewide including  the                                                                    
Independent   Learning   Center   in  Homer   for   disabled                                                                    
individuals,  the  Nome   emergency  shelter,  Alaska  Legal                                                                    
Services  for  victims  of domestic  violence,  the  Brother                                                                    
Francis Shelter  in Kodiak, the  Bethel shelter,  the Palmer                                                                    
Senior Center,  a SAIL center  in Southeast. It was  not the                                                                    
vision he had for the state.                                                                                                    
                                                                                                                                
7:01:20 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She disputed the  statement that a person  had no compassion                                                                    
because they believed in a  step down approach. She referred                                                                    
to  churches and  other  nonprofits that  did  not take  any                                                                    
state or federal funding. She  wondered what happened before                                                                    
Alaska  had become  a state  and  before it  had money.  She                                                                    
reasoned  that friends,  neighbors, and  churches had  taken                                                                    
care of  each other.  She continued that  in the  past every                                                                    
once  in a  while  a nonprofit  popped up  to  take care  of                                                                    
specific needs. She imagined the  food banks may have fallen                                                                    
in  that category.  She stressed  that  people had  survived                                                                    
before the  state had become  involved. She believed  it was                                                                    
hard to discontinue giving money  after allocating the money                                                                    
in the past. She agreed  that it was difficult to fundraise,                                                                    
which was the reason she proposed the stepdown approach.                                                                        
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 103 FAILED (4/7).                                                                           
                                                                                                                                
7:03:35 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  Amendment H  HSS 104                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Medicaid Services                                                                                                          
     Adult Preventative Dental Medicaid Services                                                                                
     H  HSS 104  - Funding  reduction  of the  FY 18  budget                                                                    
     request for unrestricted general fund match.                                                                               
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  reduces the FY 18  unrestricted general                                                                    
     fund  match   request  of  $2,882,600   by  $1,400,000,                                                                    
     roughly   50  percent.   In  these   times  of   fiscal                                                                    
     restraint, this is currently an  extra service over and                                                                    
     beyond the initial Medicaid program.                                                                                       
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  that she  had offered  the                                                                    
amendment  in order  to initiate  a committee  conversation;                                                                    
however,  she believed  since  the item  was  in statute  it                                                                    
would be  better for  a bill to  be submitted  the amendment                                                                    
and WITHDREW it.                                                                                                                
                                                                                                                                
7:04:22 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  Amendment H  HSS 105                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Health Care Medicaid Services                                                                                              
     H HSS  105 - Eliminates all  unrestricted General Funds                                                                    
     and reduces general match funding.                                                                                         
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The FY  18 budget request  in the Grants line  item for                                                                    
     Benefits  increased  by  $12,408,500  from  the  FY  17                                                                    
     Management  Plan  level   of  funding.  This  amendment                                                                    
     eliminates all unrestricted  general funds (fund source                                                                    
     1004) in  this allocation and reduces  general match by                                                                    
     $2,594,500  for   a  total   reduction  to   this  this                                                                    
     allocation of $12,408,500, the amount of the increase.                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].  She MOVED  to AMEND  the amendment  by adding  1003                                                                    
General Fund  match of $2,594,500. The  amendment would only                                                                    
pertain to the $9.814 million in GF.                                                                                            
                                                                                                                                
Co-Chair Seaton asked for clarification.                                                                                        
                                                                                                                                
Representative   Wilson   explained    that   the   negative                                                                    
$2,594,500 would be taken away;  no General Fund match would                                                                    
be taken  with the amendment.  There being NO  OBJECTION, it                                                                    
was so ordered.                                                                                                                 
                                                                                                                                
Vice-Chair Gara  spoke to his  objection to Amendment  H HSS                                                                    
105.  He   believed  more   information  was   required.  He                                                                    
explained  that  the  amendment   was  related  to  Medicaid                                                                    
services  and  those  services received  matching  [federal]                                                                    
funds at 50 percent or 90 percent for Medicaid expansion.                                                                       
                                                                                                                                
Co-Chair  Seaton asked  for clarification  on the  amendment                                                                    
Vice-Chair Gara was discussing.                                                                                                 
                                                                                                                                
Vice-Chair Gara  stated he was  speaking to Amendment  H HSS                                                                    
105.  He was  not  sure  it was  possible  to claim  federal                                                                    
funding would  not be lost  when it would actually  be lost.                                                                    
He surmised that  based on the amendment  language the money                                                                    
seemed  to  be  Medicaid  funds.  First,  the  state  had  a                                                                    
statutory  obligation to  pay the  funds. Second,  they were                                                                    
paid based on the number of  people who were sick and on the                                                                    
cost  of  medical  care.  The department  did  its  best  to                                                                    
anticipate what the costs would  be over the coming year; it                                                                    
was known  that every year  the department was  either under                                                                    
or over  by a bit.  He did not think  it could be  said that                                                                    
the 50  to 90 percent  federal match  would not be  lost. He                                                                    
believed spending  the state money  was required  to receive                                                                    
the federal match.  He did not understand  the amendment. He                                                                    
believed  it  seemed  like  a   cut  to  mandatory  Medicaid                                                                    
services.                                                                                                                       
                                                                                                                                
7:08:32 PM                                                                                                                    
                                                                                                                                
Representative  Ortiz asked  if  they were  speaking to  the                                                                    
decrement of  $9.814 million and  the other monies  would go                                                                    
away.                                                                                                                           
                                                                                                                                
Representative  Wilson clarified  that  the amendment  would                                                                    
reduce  the $9.814  million.  She noted  that  if the  match                                                                    
money were removed,  federal funds would be  lost, which was                                                                    
not her intent.  She stated that the  federal fund authority                                                                    
increase was  $10.7 million; therefore,  more than  what the                                                                    
state had in GF used to supplement the program.                                                                                 
                                                                                                                                
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  to adopt Amendment  H HSS 105 as  amended FAILED                                                                    
(4/7).                                                                                                                          
                                                                                                                                
7:10:15 PM                                                                                                                    
                                                                                                                                
Representative  Tilton MOVED  to ADOPT  Amendment H  HSS 106                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Health Care Medicaid Services                                                                                              
     H  HSS  106  -   Limitation  on  Medicaid  funding  for                                                                    
     abortions                                                                                                                  
     Offered by Representatives: Tilton, Wilson                                                                                 
                                                                                                                                
     No  money appropriated  in  this  appropriation may  be                                                                    
     expended  for  an  abortion that  is  not  a  mandatory                                                                    
     service  required  under  AS  47.07.030(a).  The  money                                                                    
     appropriated  for Health  and  Social  Services may  be                                                                    
     expended  only for  mandatory  services required  under                                                                    
     Title XIX of  the Social Security Act  and for optional                                                                    
     services offered by the state  under the state plan for                                                                    
     medical  assistance  that  has  been  approved  by  the                                                                    
     United States Department of Health and Human Services.                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Tilton explained  the  amendment that  would                                                                    
limit  Medicaid funding  on abortions.  The amendment  would                                                                    
add   conditional   language   to  the   Medicaid   Services                                                                    
appropriation   that  no   money  appropriated   within  the                                                                    
appropriation may be  expended for an abortion  that was not                                                                    
a  mandatory service  required  under  AS 47.07.030(a).  The                                                                    
money  appropriated  for  DHSS  may  be  expended  only  for                                                                    
mandatory  services under  Title 19  of the  Social Security                                                                    
Act and  for optional  services offered  by the  state under                                                                    
the state plan  for the Medicaid assistance  approved by the                                                                    
U.S. Department of Health and Human Services.                                                                                   
                                                                                                                                
Vice-Chair  Gara stressed  the amendment  was unenforceable.                                                                    
He detailed that  the Alaska Supreme Court had  held that if                                                                    
services were  going to be  provided for people who  want to                                                                    
continue  towards pregnancy,  it was  unlawful to  choose to                                                                    
withhold services who decide they  are not going to continue                                                                    
towards  pregnancy. He  cited situations  where an  abortion                                                                    
was needed to  protect the life or health of  the mother. He                                                                    
stated the language could be  inserted in the budget, but it                                                                    
was  unenforceable. He  understood the  views of  people who                                                                    
opposed the concept of abortion.  He shared that he was pro-                                                                    
choice,  but   noted  that  was  irrelevant   in  the  given                                                                    
situation.   He    reiterated   that   the    language   was                                                                    
unenforceable.  He concluded  that the  courts would  strike                                                                    
the concept down and had done so in the past.                                                                                   
                                                                                                                                
Representative  Grenn  was  hopeful  the  amendment  sponsor                                                                    
could  expand on  the mandatory  services listed  in statute                                                                    
and Title 19  of the Social Security Act. He  asked for more                                                                    
details.                                                                                                                        
                                                                                                                                
Representative  Wilson supported  the amendment.  She stated                                                                    
there  was already  intent language  included in  the budget                                                                    
that  was  unenforceable.  She reasoned  it  was  about  the                                                                    
message  the legislature  wanted  to send.  She stated  that                                                                    
someone could take  it to court if they chose  to do so. She                                                                    
continued  that  "pretty  much   all"  intent  language  was                                                                    
unenforceable.  She  concluded   the  amendment  represented                                                                    
intent language  to communicate the legislature's  stance on                                                                    
a particular  issue. She  believed it  was clear  that using                                                                    
funding for abortions was an improper use of the funds.                                                                         
                                                                                                                                
Representative  Tilton provided  wrap up  on the  amendment.                                                                    
She  stated  that  the  language  had  been  in  the  budget                                                                    
throughout  the years.  She stressed  the importance  of the                                                                    
language.                                                                                                                       
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Pruitt, Thompson, Tilton, Wilson                                                                               
OPPOSED: Gara, Grenn, Guttenberg, Kawasaki, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H HSS 106 FAILED (5/6).                                                                           
                                                                                                                                
7:15:35 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg MOVED  to ADOPT  Amendment H  HSS                                                                    
107 (copy on file):                                                                                                             
                                                                                                                                
     Senior and Disabilities Medicaid Services                                                                                  
     H HSS 107 - Increase  Funds to Maintain the FY17 Number                                                                    
     of Hours per day for Day Habilitation Services                                                                             
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     This amendment  restores $2.6 million  in UGF  in order                                                                    
     to allow  the Department of Health  and Social Services                                                                    
     to provide  the level  of day habilitation  services in                                                                    
     FY18 that  were provided  in FY17 (i.e.,  15 hours/week                                                                    
     in FY17 vs a proposed 8 hours/week in FY18).                                                                               
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Guttenberg  explained   that  the  amendment                                                                    
sought to restore  $2.6 million to enable  the department to                                                                    
maintain its  current level  of day  rehabilitation services                                                                    
of 15  hours per  week versus  8 hours  per week.  He shared                                                                    
that  over the  years he  had worked  with many  individuals                                                                    
utilizing  the services.  He detailed  that the  individuals                                                                    
just wanted to  work and have a job. He  continued that when                                                                    
the individuals  got out  of the house  it also  freed their                                                                    
families.  He  surmised  that  even though  it  may  not  be                                                                    
statutorily  required or  fiscally  conservative enough  for                                                                    
some people, it made  everything more productive in society.                                                                    
He  elaborated that  it provided  meaning in  people's lives                                                                    
and their families were also able  to work and be out of the                                                                    
house. He WITHDREW the amendment.                                                                                               
                                                                                                                                
7:17:18 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  Amendment H  HSS 108                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Senior and Disabilities Medicaid Services                                                                                  
     H HSS 108 - Funding reduction for grants.                                                                                  
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  deletes all unrestricted  general funds                                                                    
     (code 1004) in  the FY 18 budget request.  Actual FY 16                                                                    
     federal  receipts  were  $236,565,300  and  the  FY  18                                                                    
     budget  request   for  federal  receipt   authority  is                                                                    
     $297,193,100,   an   increase  of   $60,627,800.   This                                                                    
     increase can  replace the general fund  request in this                                                                    
     allocation.                                                                                                                
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Vice-Chair  Gara   explained  his  objection.  He   and  the                                                                    
department saw the amendment as  a straight cut to Medicaid.                                                                    
He did  not believe it  was reasonable  to say there  was no                                                                    
match. He relayed that the match  was either around 50 or 90                                                                    
percent under Medicaid expansion.  He stressed the state had                                                                    
to pay  the Medicaid bills  coming in. He stressed  that the                                                                    
greatest thing  the legislature  could ever  do would  be to                                                                    
gain control  over medical costs  in the state.  However, he                                                                    
reasoned  that  if  control  over   medical  costs  was  not                                                                    
achieved, the legislature could not  pretend to cut money it                                                                    
would have to  pay. He believed the amendment  would lead to                                                                    
a supplemental  request the  following year.  The department                                                                    
had made  its best  guess of how  many people  would qualify                                                                    
for Medicaid  in FY 18 and  was working very hard  to reduce                                                                    
Medicaid costs. He specified that  DHSS had reduced Medicaid                                                                    
costs by  $114 million since  2015, in part due  to Medicaid                                                                    
expansion and waivers.  He did not expect  the "miracles" to                                                                    
recur. He  concluded that paying  the funds was  a statutory                                                                    
requirement.                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She  stated   it  was  not   about  a  miracle,   but  about                                                                    
accounting.  She stated  the  1003 code  was  GF match.  She                                                                    
stressed  that  the code  in  the  particular amendment  was                                                                    
1004. She  relayed that there were  additional federal funds                                                                    
allocated  to  the  item  -  $60 million  over  FY  16.  She                                                                    
remarked  that the  increase could  be  due to  a waiver  or                                                                    
other things  related to the  passage of SB 74  the previous                                                                    
year [Medicaid  reform legislation].  She stressed  that the                                                                    
amendment  would  not  cut  the   spending  amount,  but  it                                                                    
proposed cutting the type of  funds with an addition already                                                                    
in the  budget. She  requested to  Co-Chair Seaton  that the                                                                    
right codes made it into the budget books in the future.                                                                        
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn, Guttenberg, Kawasaki, Ortiz, Gara, Seaton,                                                                      
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H HSS 108 FAILED (4/7).                                                                           
                                                                                                                                
Co-Chair  Seaton noted  that Representative  George Rauscher                                                                    
was present in the audience.  He relayed the committee would                                                                    
be  taking  up  amendments  to HB  115  the  following  week                                                                    
related to  the Permanent Fund.  The committee would  not be                                                                    
taking up amendments on Sections 10, 11, and 12.                                                                                
                                                                                                                                
Co-Chair Seaton RECESSED the meeting until 9:30 a.m. the                                                                        
following day.                                                                                                                  
                                                                                                                                
^RECESSED                                                                                                                       
7:23:50 PM                                                                                                                    
                                                                                                                                
                                                                                                                                

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