Legislature(2007 - 2008)CAPITOL 106
03/25/2008 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB241 | |
| HB397 | |
| HB403 | |
| HB306 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 241 | TELECONFERENCED | |
| += | HB 397 | TELECONFERENCED | |
| *+ | HB 403 | TELECONFERENCED | |
| *+ | HB 306 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 403-APPROP: SCHOLARSHIP FUND 3:32:14 PM VICE CHAIR ROSES announced that the next order of business would be HOUSE BILL NO. 403, "An Act appropriating $100,000,000 to the Alaska achievers' scholarship fund; and providing for an effective date." 3:32:26 PM CHRISTIAN GOU-LEONHARDT, Staff to Representative David Guttenberg, Alaska State Legislature, speaking on behalf of the sponsor, Representative Guttenberg, informed the committee that HB 403 appropriates $100,000,000 to fund the scholarship program endowment established by HB 397. 3:33:04 PM REPRESENTATIVE FAIRCLOUGH asked whether public testimony would be heard. 3:33:16 PM VICE CHAIR ROSES called for public testimony. There being none, public testimony was closed. 3:33:42 PM REPRESENTATIVE FAIRCLOUGH asked why the bill does not have any dedication of funds and whether it is not necessary on an appropriation bill. 3:34:02 PM MR. GOU-LEONHARDT explained that, in HB 397, the enabling language for the scholarship fund is found on page 3, line 21 through 23, and read: "Money in the fund may be appropriated for scholarships under AS 14.43.190 or for any other public purpose. Nothing in this section creates a dedicated fund." REPRESENTATIVE FAIRCLOUGH further asked whether a dedication of funds is necessary in HB 403. 3:35:04 PM MS. BARRANS opined that the purpose of HB 403 was to create a fund. [Her testimony was interrupted by technical difficulties.] 3:35:55 PM VICE CHAIR ROSES asked Representative Fairclough to re-state her question. REPRESENTATIVE FAIRCLOUGH remarked: I understand that, in the bill that's already moved from committee, that we created the shell, or the framework to establish the fund and inside of that there was a question about, or an answer to, "this is not a dedicated fund." On page 1, of HB 403, on line 7, it says "endowment fund and does not lapse." And usually when I see the "does not lapse" in other bills that I've seen ... I've seen somehow a re-statement that it is not a dedicated fund. 3:37:11 PM REPRESENTATIVE LES GARA, Alaska State Legislature, explained that a dedicated fund is created by saying, "in the future, money should be put into this fund." A future legislature can not be obligated to put money into a certain fund, and a certain amount can not be dedicated to a particular fund. However, in the appropriation process funds are always dedicated, for example, to a bridge. Representative Gara concluded that there is not a dedicated fund when the legislature makes an appropriation. 3:38:26 PM VICE CHAIR ROSES pointed out that the issue was on the record for the House Finance Committee to address. 3:38:34 PM REPRESENTATIVE CISSNA affirmed that HB 403 would establish an endowment that would not lapse and would be continued by its interest and future funding. She opined that this funding could turn the [low] education statistics around for the state. 3:39:27 PM REPRESENTATIVE GUTTENBERG agreed with Representative Cissna. Furthermore, these funds, unlike dedicated funds, can be reappropriated and are not locked away; future legislators can access this money. 3:40:10 PM REPRESENTATIVE FAIRCLOUGH expressed her reluctance at recommending an appropriation of $100 million, given the other needs across the state. She compared the ways in which money is disbursed and the difficulties in prioritizing the funding of programs that are necessary for transportation, early education, and other worthy programs. She concluded that advocating for this type of funding with the rural and urban needs that exist in Alaska is difficult. 3:42:32 PM REPRESENTATIVE KELLER stated that he would vote against the bill. He recalled his support for the original concept that was for a merit based scholarship program; however, the requirement that a student maintain a cumulative 3.0 grade point average is very different from scholarships that demand high levels of achievement. He said that he understood the difficulty students face as he struggled to pay for his own college education. Representative Keller opined that the legislature needs to take the time to establish a merit based program. 3:44:39 PM REPRESENTATIVE CISSNA stressed that Alaska is not graduating enough students with higher degrees, thus the state must import its professional workforce and depend on oil and gas for revenue. She expressed her belief that there must be incentives to keep young people in the state. She pointed out that she, also, paid for her college education. To address the funding of how to support all of the worthy issues in the state would take a comprehensive look at the budget during a session longer than 90 days. Representative Cissna concluded that growing the state's economy is dependent on the passage of this bill. 3:47:59 PM REPRESENTATIVE GARDNER reminded the committee that, nationally, the U.S. is losing ground on the education front and statistics show that Alaska is near the bottom in the U.S. There is an overall need to promote education in general. She opined that merit based scholarships serve a purpose to inspire high school students; however, high achievers have a wide choice of where they might attend college. A need-based scholarship program would support students who have abilities but may have families or need extra study time. She stated that the bill is part of a long term plan to improve the education level of Alaska's permanent residents. 3:50:15 PM VICE CHAIR ROSES announced that HB 403 would be held until it could be considered by the full committee. 3:50:33 PM
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