Legislature(2001 - 2002)

04/03/2001 09:20 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     CS FOR HOUSE BILL NO. 103(FIN)(brf sup maj fld)                                                                            
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize  funds; and providing for an effective date."                                                            
                                                                                                                                
     CS FOR HOUSE BILL NO. 104(FIN)                                                                                             
     "An  Act making appropriations  for the  operating and  capital                                                            
     expenses of the state's  integrated comprehensive mental health                                                            
     program; and providing for an effective date."                                                                             
                                                                                                                                
                                                                                                                                
At the previous  hearing for these bills, the Committee  adopted SCS                                                            
CS HB 103,  22-LS0410\S and SCS CS  HB 104, 22-LS0411\J,  as working                                                            
drafts. The following amendments are to these versions.                                                                         
                                                                                                                                
Co-Chair  Donley thanked  Senate Finance Committee  staff for  their                                                            
work compiling the amendments.                                                                                                  
                                                                                                                                
Department of Community and Economic Development                                                                              
                                                                                                                                
C&ED  #1:   This  amendment   adds  $9   million  Alaska   Aerospace                                                            
Development  Corporation (AADC) receipts  to the AADC Budget  Review                                                            
Unit (BRU), AADC component on page 6, lines 29 through 32.                                                                      
                                                                                                                                
This amendment  also inserts a new bill section to  read as follows.                                                            
                                                                                                                                
     Sec. __.  ALASKA AEROSPACE DEVELOPMENT  CORPORATION.  Corporate                                                            
     receipts  of  the  Alaska  Aerospace  Development  Corporation                                                             
     received during the  fiscal year ending June 30, 2002, that are                                                            
     in excess of the amount  appropriated in sec. 1 of this Act are                                                            
     appropriated  to the Alaska Aerospace  Development Corporation                                                             
     for operations during the fiscal year ending June 30, 2002.                                                                
                                                                                                                                
Explanatory  language accompanying  the amendment reads as  follows.                                                            
                                                                                                                                
     This  replaces a  $9,000,000  AADC Receipt  increment that  the                                                            
     subcommittee  added for  increased launch  activities with  the                                                            
     language  section that is in the original Governor's  operating                                                            
     budget.  This would allow  the AADC to  receive and expend  any                                                            
     additional  operating receipts  that they might receive  during                                                            
     the fiscal  year for any unexpected  launches that should  come                                                            
     up during the fiscal year.                                                                                                 
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
C&ED  #2:  This  amendment  adds  $98,000   general  funds  for  the                                                            
Community  Assistance and  Economic Development  BRU, Community  and                                                            
Business Development component on page 6, lines 12 through 15.                                                                  
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This amendment  restores funding for two positions,  located in                                                            
     Nome  and  Bethel. These  positions  were  funded  from the  no                                                            
     longer available Rural  Economic Development Initiative Fund. A                                                            
     funding source  change had been made to switch  this funding to                                                            
     general funds.                                                                                                             
     Elimination  of  these two  positions will  cause…reduction  in                                                            
     assistance  on  … community  and economic  development-related                                                             
     training  in the  Bering Strait,  Northwest  Arctic and  Yukon-                                                            
     Kuskokwim regions.                                                                                                         
                                                                                                                                
Senator  Hoffman stressed  that  these areas  are  amongst the  most                                                            
economically depressed regions of the state.                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
C&ED #3: This  amendment adds $100,000  general funds/match  for the                                                            
Community  Assistance and  Economic Development  BRU, Community  and                                                            
Business Development component on page 6, lines 12 through 15.                                                                  
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This  funding will  be used to  provide one  to one match  to a                                                            
     grant  from the Economic  Development  Administration (EDA)  to                                                            
     provide  planning  and implementation  funds  for specifically                                                             
     identified  economic development  activities and programs.  The                                                            
     department  has received  and EDA grant  regularly since  1985.                                                            
     Recently the EDA grants have averaged $100,000.                                                                            
                                                                                                                                
Co-Chair Kelly  informed that this  request has been denied  for the                                                            
last few years  as an increment in  the capital budget. However,  he                                                            
pointed out,  the federal funds have  still been received  and there                                                            
is no reason to believe this would not continue.                                                                                
                                                                                                                                
Senator  Olson  asked about  the  back-up  plans  in the  event  the                                                            
federal funds are not received.                                                                                                 
                                                                                                                                
Co-Chair Kelly  stated that there is no back-up plan  since there is                                                            
no reason to  believe that the federal  funds would not continue  to                                                            
be provided.  He stressed  that  although the  requests have  stated                                                            
that a  general fund match  is required, there  actually is  no such                                                            
requirement.                                                                                                                    
                                                                                                                                
Senator  Olson opined  that  this item  "is looked  on in  a way  of                                                            
contempt"  with  a  message  that  if  the  federal  funds  are  not                                                            
received, "sorry".                                                                                                              
                                                                                                                                
Co-Chair Kelly  countered there is  no contempt because there  is no                                                            
need for a general fund match.                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
C&ED  #4:  This  amendment  adds  $200,000  general  funds  for  the                                                            
Qualified Trade  Association Contract  BRU and component  on page 6,                                                            
lines 23 through 26.                                                                                                            
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
An unidentified member voiced an objection.                                                                                     
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     A reduction  of $200,000  from the  tourism-marketing  contract                                                            
     will  result in a  loss of television  advertising and  further                                                            
     erosion   of  the  state's  ability   to  compete  with   other                                                            
     destinations.  In addition, the  contract requires this  amount                                                            
     to be  matched by $85,700 from  the private sector for  a total                                                            
     loss to the program of $285,700.                                                                                           
                                                                                                                                
Co-Chair Kelly noted the  current budget allocates $100,000 over the                                                            
amount of the  previous fiscal year. He stated it  follows the trade                                                            
association's plan for reductions.                                                                                              
                                                                                                                                
Senator Hoffman  commented, "Times change and we have  to reevaluate                                                            
and adjust accordingly."                                                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
C&ED #5: This  amendment creates a  new BRU and component,  Renter's                                                            
Equivalency  Rebate, and adds  $300,000 general  funds for  that BRU                                                            
and component on page six.                                                                                                      
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This program provides  for reimbursement to Senior Citizens and                                                            
     Disabled Veterans  who rent property that is subject to a local                                                            
     property  tax. It compensates a senior or disabled  veteran for                                                            
     that  portion of  their rent  that goes toward  the payment  of                                                            
     local  property  taxes.   It  is similar   to  the homeowners'                                                             
     property  tax exemption program and was instituted  in order to                                                            
     treat seniors who paid rent for their homes on an equitable                                                                
     basis with those who own their homes in terms of property tax                                                              
     relief.                                                                                                                    
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Kelly objected.                                                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
AT EASE 9:30 AM / 9:34 AM                                                                                                       
                                                                                                                                
[Note: The tape recorder  was not stopped during the break resulting                                                            
in a blank  period in the  recording. No portion  of the meeting  is                                                            
missing.]                                                                                                                       
                                                                                                                                
Department of Law                                                                                                             
                                                                                                                                
LAW #1:  This amendment adds  $250,000 general  funds for the  Civil                                                            
Division BRU,  Governmental Affairs  component on page 24,  line 12.                                                            
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Olson  explained this relates  to litigation costs  incurred                                                            
from an on-going lawsuit  between the state and the Bank of America.                                                            
He noted the  dispute is over alleged  mismanagement in the  Bank of                                                            
America and  that it is  likely the state  would prevail. He  warned                                                            
that not  fully funding  this request would  limit the department's                                                             
ability to successfully argue the case.                                                                                         
                                                                                                                                
Senator Wilken informed  that while he supports the increment as the                                                            
expenditure  could  yield  a potential  return  of $50  million,  it                                                            
should not be  contained in the operating budget.  He suggested this                                                            
should be included  in the FY 01 supplemental appropriation  or as a                                                            
one-time capital expenditure.                                                                                                   
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly                                                                         
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
LAW #2: This  amendment creates a  new Victim Restitution  component                                                            
under the  Civil Division  BRU and  adds $306,500  general funds  to                                                            
that component on page 24, following line 19.                                                                                   
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator Olson  explained this appropriation  is for the purchase  of                                                            
computer  hardware,  programming  a database,  as well  as  covering                                                            
administrative   expenses  related  to  securing  compensation   for                                                            
victims of crime.                                                                                                               
                                                                                                                                
Senator Wilken  pointed out that funding for this  item is contained                                                            
in fiscal notes for HB 133 and SB 107.                                                                                          
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Office of the Governor                                                                                                        
                                                                                                                                
GOV  #1:  This amendment  adds  $4,500,000  federal  funds  for  the                                                            
Governmental  Coordination BRU  and component  on page 17,  lines 12                                                            
and 13.                                                                                                                         
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator  Olson  spoke to  the  amendment  that pertains  to  coastal                                                            
impact assistance offered to states such as Alaska.                                                                             
                                                                                                                                
Co-Chair Donley  stated that the House of Representative  version of                                                            
the operating  budget, as well as the current committee  substitute,                                                            
contains $100,000  for the governor's  office to develop  a plan for                                                            
the utilization  of this  money. He stressed  that no such  plan had                                                            
been presented to the Legislature.  He said it was determined in the                                                            
House of Representatives  that when a plan is developed,  the matter                                                            
could be brought  before the Legislative Budget and  Audit Committee                                                            
for authority to receive the federal funds.                                                                                     
                                                                                                                                
Senator  Hoffman  agreed  that  the  Legislative  Budget  and  Audit                                                            
Committee  could  have  oversight  of the  state's  portion  of  the                                                            
funding. However, he noted  the original federal intent was that the                                                            
federal  funds   go  directly  to   communities,  although   it  was                                                            
ultimately  decided to allocate  the funds  as one increment  to the                                                            
state. He disagreed  that the federal  funds should be subject  to a                                                            
state-determined plan, when no state funds are involved.                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
GOV  #2:  This  amendment   adds  $66,000  general   funds  for  the                                                            
Governmental  Coordination BRU  and component  on page 17,  lines 12                                                            
and 13.                                                                                                                         
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator  Olson shared  that these  funds would  be used  to hire  an                                                            
additional   Project  Review  Coordinator   to  handle  gas-related                                                             
projects.                                                                                                                       
                                                                                                                                
AT EASE 9:42 AM / 9:42 AM                                                                                                       
                                                                                                                                
[Note: The tape recorder  was not stopped during the break resulting                                                            
in a blank  portion on the recording.  No portion of the  meeting is                                                            
missing.]                                                                                                                       
                                                                                                                                
Co-Chair Donley  remarked that this  was similar to a proposal  that                                                            
was deleted  from the FY  01 fast track  supplemental budget  due to                                                            
on-going  considerations.  He  offered  an explanation:   "Different                                                            
vehicles are going  to be developed in the legislative  process here                                                            
and possibly  deal with this  at a later time."  He added that  this                                                            
item is not included in  the House of Representatives version of the                                                            
FY 02 operating  budget, nor does  the Senate Finance Office  of the                                                            
Governor budget subcommittee recommend it.                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Department of Revenue                                                                                                         
                                                                                                                                
There were no  amendments to the committee substitute  affecting the                                                            
Department of Revenue budget.                                                                                                   
                                                                                                                                
Alaska Court System                                                                                                           
                                                                                                                                
COURT  #1:  This  amendment  adds  $39,200  general  funds  for  the                                                            
Judicial Council BRU and component on page 35, lines 15 and 16.                                                                 
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Wilken objected.                                                                                                        
                                                                                                                                
Senator  Olson explained  this request  is for the  completion  of a                                                            
research  project  on the  felony convictions  and  sentencing,  and                                                            
would provide up to date analysis.                                                                                              
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
AT EASE 9:46 AM / 9:46 AM                                                                                                       
                                                                                                                                
Department of Natural Resources                                                                                               
                                                                                                                                
DNR  #1: This  amendment removes  $300,000  general  funds from  the                                                            
Minerals, Land  and Water BRU, Water  Development component  on page                                                            
26, line 20. This amendment  also inserts a new bill section on page                                                            
54, following line 24 that reads as follows.                                                                                    
                                                                                                                                
          Sec. 28. WATER DEVELOPMENT. The sum of $300,000 in                                                                    
     interagency  receipts  from nonpoint  source pollution  control                                                            
     funds received by  the Department of Environmental Conservation                                                            
     is  appropriated  to  the  Department   of Natural   Resources,                                                            
     division  of water development,  for water quality monitoring,                                                             
     watershed or nonpoint  source assessment, groundwater research,                                                            
     assessment,  technical assistance,  and training, and  instream                                                            
     flow reservations for the fiscal year ending June 30, 2002.                                                                
                                                                                                                                
Senator Leman moved for adoption.                                                                                               
                                                                                                                                
Senator Hoffman objected for an explanation.                                                                                    
                                                                                                                                
Senator  Leman  explained  this is  a one-time  fund  source  change                                                            
involving  inter-agency  receipts.  He  characterized  this  funding                                                            
source  as 319 monies  under the  Clean Water  Act through the  U.S.                                                            
Environmental  Protection Agency (EPA). He noted that,  according to                                                            
a Division  of Legislative  Finance fiscal  analyst, the  department                                                            
could use  existing general  funds to provide  the 40-percent  match                                                            
required.                                                                                                                       
                                                                                                                                
Senator Hoffman  requested the department respond  to the amendment.                                                            
                                                                                                                                
NICO  BUS, Administrative   Services Manager,  Division  of  Support                                                            
Services,  Department   of  Natural  Resources,  stated   that  this                                                            
amendment  would take from  the hydrology  section of the  operating                                                            
budget related to water rights permits, leaving only $40,000.                                                                   
                                                                                                                                
Senator Leman  calculated the department would only  need to provide                                                            
40-percent of $300,000, which is $120,000.                                                                                      
                                                                                                                                
Mr. Bus replied that the  matter was investigated and it was learned                                                            
the total  cost of  the project  would be $500,000,  thus  requiring                                                            
$200,000 in general fund match.                                                                                                 
                                                                                                                                
Senator  Leman  stressed  that  after  working  on  the  matter,  he                                                            
determined that it was possible.                                                                                                
                                                                                                                                
Senator Leman WITHDREW his motion to adopt the amendment without                                                                
objection and the amendment was HELD in Committee.                                                                              
                                                                                                                                
DNR #2: This amendment adds $72,200 general funds for the                                                                       
Information/Data Management BRU, Information Resource Management                                                                
component on page 25, lines 28, 30 and 31.                                                                                      
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DNR #3: This amendment adds $160,000 general funds for the Parks                                                                
and Recreation Management BRU, Parks Management component on page                                                               
26, lines 27 and 30.                                                                                                            
                                                                                                                                
Senator Hoffman moved for adoption and read an explanatory                                                                      
statement into the record as follows.                                                                                           
                                                                                                                                
     $100,000 for Wood-Tikckik State Park                                                                                       
     America's largest  state park, Wood-Tikckik will continue to be                                                            
     staffed at an embarrassingly low level.                                                                                    
                                                                                                                                
AT EASE 9:50 AM / 9:51 AM                                                                                                       
                                                                                                                                
Senator Hoffman continued reading.                                                                                              
                                                                                                                                
     Currently  one staff  person manages  an area  larger than  the                                                            
     state of Delaware,  1.6 million acres. Park use in the past ten                                                            
     years  has  steadily  climbed  and  additional   ranger  staff,                                                            
     assigned   to  year-round  responsibilities,   is  desperately                                                             
     needed.  Without this new position,  there will continue  to be                                                            
     no routine  patrolling  in over half  the park. This  increment                                                            
     also included  funds for maintenance  of an aircraft  (aircraft                                                            
     to be  secured through  the Department  of Public Safety  at no                                                            
     cost  to Parks). Without  an aircraft  and a ranger/pilot,  the                                                            
     upper lake  systems will not see regular patrol.  The increased                                                            
     conflicts  between  hunting  guides,  and  between  guides  and                                                            
     private   hunters  will   continue  with   no  possibility   of                                                            
     resolution.  Recommendations  from  the  revision  of the  park                                                            
     management  plan to resolve the  hunter conflicts and  resource                                                            
     impacts  from both guided and  non-guided park visitors  cannot                                                            
     be implemented without a field presence.                                                                                   
     $60,000 for Park Maintenance                                                                                               
     The general condition  of the state parks in Alaska is terrible                                                            
     and we  are hearing that statement  from the public  regularly.                                                            
     State Parks has identified  $42 million in deferred maintenance                                                            
     needs  in our 120 park units.  Last year, one of the  outhouses                                                            
     was so rotten  a woman fell through and a park  road was so bad                                                            
     it broke  a motor home axle.  While we attempt to keep  up with                                                            
     the worst  situations, we are  now unable to do so.  All of the                                                            
     maintenance  staff  are  seasonal.  This funding  would  extend                                                            
     their  seasons  so they  can address  more of  the maintenance                                                             
     needs of  the park system. This increase in person  months will                                                            
     be spread throughout  the park system and will compliment a CIP                                                            
     request for Park Emergency  Repairs. Without this increment, we                                                            
     will simply  continue to defer maintenance needs  with the hope                                                            
     that those needs involving  health and safety don't result in a                                                            
     visitor  injury. This  increment  does not address  all of  the                                                            
     park maintenance needs,  but at this point, even a small amount                                                            
     of additional  funding will be  immediately put to good  use on                                                            
     those problems that  can cause the most injury to park visitors                                                            
     and the most liability to the state.                                                                                       
                                                                                                                                
Senator Leman  understood this is a priority item  of the department                                                            
but surmised that existing  members of the fish and wildlife service                                                            
could  undertake the  duties.  However, he  stressed  that he  would                                                            
support  funding of  $60,000 for  maintenance, provided  that  it be                                                            
done  with  volunteer  work.  He  noted   that  the  department  has                                                            
indicated this is possible.                                                                                                     
                                                                                                                                
Senator Hoffman WITHDREW his motion and the amendment was HELD.                                                                 
                                                                                                                                
DNR #4:  This amendment  adds $160,000 general  funds for  Minerals,                                                            
Land  and  Water  Development   BRU,  Claims,  Permits   and  Leases                                                            
component on page 26, lines 17, 18 and 21.                                                                                      
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     Results   of  recent  geophysical   exploration  indicate   the                                                            
     potential  for a significant  deposit of mineral in  the Denali                                                            
     Block area.  As the public became aware that  the Department of                                                            
     Natural  Resources recently  requested  the entitlement  of the                                                            
     eastern  portion  of the Denali  Block  area to  be on the  US.                                                            
     Bureau of  Land Management (BLM) conveyance priority  list, the                                                            
     mining  industry  has  communicated  considerable  interest  in                                                            
     assuring  that this  conveyance occurs.  That is, the  industry                                                            
     has  reinforced   the  importance  of  the  area   to  upcoming                                                            
     exploration and expenditures.                                                                                              
                                                                                                                                
Senator  Hoffman  noted  the Alaska  Miners  Association,  Inc.  has                                                            
written in support of this increment.                                                                                           
                                                                                                                                
Senator Leman  agreed there is support  for this item, but  stressed                                                            
the budget  subcommittee would have  been unable to meet  the Senate                                                            
Majority  imposed budget limitations  if this  item were funded.  He                                                            
encouraged the item to  be considered the next year. He also pointed                                                            
out that the House of Representatives  did not fund this item in its                                                            
version of the FY 02 budget.                                                                                                    
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DNR #5:  This amendment changes  the funding  source of $300,000  in                                                            
the Minerals,  Land  and Water  Development BRU,  Water Development                                                             
component on page  26, lines 17, 18 and 20, from inter-agency  (I\A)                                                            
receipts to general funds                                                                                                       
                                                                                                                                
Senator Hoffman  noted the relationship of this amendment  to DNR #5                                                            
and requested it be HELD.                                                                                                       
                                                                                                                                
DNR  #6:  This  amendment  adds  $350,000  for  the  Statewide  Fire                                                            
Suppression  Program BRU,  Fire Suppression  component  on page  27,                                                            
lines 18 through 20.                                                                                                            
                                                                                                                                
Senator Hoffman  commented  on the on-going  method of funding  fire                                                            
suppression activities in the supplemental budget.                                                                              
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
Senator  Leman noted that  the budget subcommittee  was considering                                                             
options  of  establishing  an  on-call  crew  stationed  in  central                                                            
locations  for the duration  of the  fire station,  rather than  the                                                            
current practice of setting  up a 20-person initial strike force for                                                            
each fire outbreak.                                                                                                             
                                                                                                                                
Senator Leman stressed the need for setting funding priorities.                                                                 
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
Department of Labor and Workforce Development                                                                                 
                                                                                                                                
There were no  amendments to the committee substitute  affecting the                                                            
Department  of Labor  and Workforce  Development  submitted at  this                                                            
time.                                                                                                                           
                                                                                                                                
AT EASE 9:59 AM / 10:01 AM                                                                                                      
                                                                                                                                
Department of Education and Early Development                                                                                 
                                                                                                                                
E&ED  #1:   This  amendment  removes   $1,300,000  from   the  Early                                                            
Development  BRU, Child Care Assistance  and Licensing component  on                                                            
page 11, lines 29, 31 and  32. It also adds $6,000,000 general funds                                                            
to  the University  of  Alaska,  University  of Alaska  BRU,  Budget                                                            
Reductions\Additions-Systemwide  component, page 34, lines 13 to 15.                                                            
Explanatory language states,  "This amendment deletes excess General                                                            
Funds used  as a match  for the Child Care  Assistance Program"  and                                                            
"This amendment  provides the necessary  funding for the  University                                                            
of Alaska to continue its educational activities."                                                                              
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
E&ED  #2: This  amendment adds  $68,900  general funds  for the  Mt.                                                            
Edgecumbe  Boarding School  BRU and component  on page 12,  lines 22                                                            
and 23.                                                                                                                         
                                                                                                                                
Senator  Olson  explained  this  amendment  relates  to  a  contract                                                            
providing around the clock  coverage for over 300 students served in                                                            
the residential  program of the school.  He opined that not  funding                                                            
this increment would be a "disservice" to these students.                                                                       
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
Co-Chair  Donley  and Senator  Green  objected  to adoption  of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
E&ED #3: This amendment  adds $609,000 general funds to the Kotzebue                                                            
Technical  Center Operations  Grant BRU and  component. This  BRU is                                                            
not included in the committee substitute.                                                                                       
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator  Olson warned that  not funding  this increment jeopardizes                                                             
the ability of  this vocational institute to train  residents of his                                                            
district  to get  jobs and  earn an  income for  their families.  He                                                            
noted that  while significant  coordination  efforts have been  made                                                            
between the  University of Alaska,  The Alaska Technical  Center and                                                            
the Northwest  Arctic Borough School District to merge  programs, he                                                            
did not think it would be successful.                                                                                           
                                                                                                                                
Senator Olson predicted  that closure of this center would result in                                                            
"staggering"  unemployment   rates  in  the  region.  He  understood                                                            
discussions  were   held  several  years  prior  regarding   merging                                                            
programs,  but  stressed  that  since that  time,  there  have  been                                                            
preparations for  a natural gas pipeline and that  trained personnel                                                            
would be needed  to undertake such a project. He did  not agree that                                                            
decisions made by a previous  legislature should be binding for this                                                            
legislature.                                                                                                                    
                                                                                                                                
Senator Wilken reminded  the members of a discussion two years prior                                                            
in the Senate Finance Committee  where it was recognized there was a                                                            
duplication of effort between  the Kotzebue Technical Center and the                                                            
University  of Alaska-Chukchi Campus.  He referenced two  letters he                                                            
received, one from the  Northwest Arctic Borough School District and                                                            
the other from  President Mark Hamilton of the University  of Alaska                                                            
[copies  not provided]  affirming  the duplication.  These  letters,                                                            
Senator Wilken  noted, indicate a savings of $634,000  in FY 02 with                                                            
the phase-down of the Kotzebue Training Center.                                                                                 
                                                                                                                                
AT EASE 10:07 AM / 10:12 AM                                                                                                     
                                                                                                                                
Senator  Austerman stressed  that any perceived  cuts to  vocational                                                            
education were  of concern to him. He suggested that  the University                                                            
of Alaska should be part of this discussion.                                                                                    
                                                                                                                                
Senator  Green shared  that she  had visited  the area  a few  years                                                            
prior and was  surprised to learn that the University  of Alaska has                                                            
hampered  from offering certain  courses because  they were  already                                                            
offered at the  technical center. She deemed the proposed  merger to                                                            
be "a wonderful  marriage" that would  allow "everybody to  come out                                                            
way on top."  She added that the building  space is useful  for both                                                            
the  university  as  well  as  local  high  school  activities  that                                                            
technically are not vocational-related.                                                                                         
                                                                                                                                
Senator Wilken emphasized  this is not an effort to close the school                                                            
but rather an  opportunity to merge overlapping programs.  He stated                                                            
that if other funding were  located to fund the center, he would not                                                            
oppose it, but did not want to use general funds.                                                                               
                                                                                                                                
Senator Olson  explained there are reasons for the  existence of the                                                            
two institutions. He characterized  one institution as "producing or                                                            
enhancing those  people who are in  the white collar market,"  while                                                            
those in  the "blue  collar" market  are served  by the institution                                                             
offering  vocational technical  training. He  expressed that  a good                                                            
welding teacher  could not be expected  to teach ancient  history or                                                            
visa versa.                                                                                                                     
                                                                                                                                
Senator Olson requested  a representative of the university speak to                                                            
the issues relating to this matter.                                                                                             
                                                                                                                                
                                                                                                                                
SFC 01 # 65, Side B 10:16 AM                                                                                                    
                                                                                                                                
                                                                                                                                
WENDY REDMOND,  Vice President, University Relations,  University of                                                            
Alaska stated  that there is no duplication of services  between the                                                            
two facilities.  She spoke to the collaboration between  the schools                                                            
and the resulting lowered  expenses. She stressed that if vocational                                                            
education programs  were eliminated  the university could  in no way                                                            
pick up the vocational training.                                                                                                
                                                                                                                                
Senator Leman mentioned  other legislation with a fiscal note, which                                                            
would essentially double fund the program.                                                                                      
                                                                                                                                
Senator Olson  applauded the  efforts to  fund the technical  center                                                            
through the  other legislation,  but was  not convinced the  funding                                                            
would actually occur.                                                                                                           
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Austerman, Senator Hoffman and Senator Olson                                                                  
                                                                                                                                
OPPOSED:  Senator  Wilken,  Senator Green,  Senator  Leman,  Senator                                                            
Ward, Co-Chair Donley and Co-Chair Kelly                                                                                        
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
E&ED #4:  This amendment  adds $427,600 general  funds to the  Early                                                            
Development  BRU, Child Care Assistance  and Licensing component  on                                                            
page 11, lines 29, 31 and 32.                                                                                                   
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Wilken objected.                                                                                                        
                                                                                                                                
Senator Olson  expressed this funding program would  allow childcare                                                            
subsidies to continue for eligible families.                                                                                    
                                                                                                                                
Senator  Wilken pointed  out that  federal grants  and inter-agency                                                             
receipts  would provide  $30,648,000  for  child care  services.  He                                                            
reported  there  is  no  longer  a  waitlist  for  services  in  any                                                            
community except Anchorage,  where the issue is being addressed with                                                            
other  funds.  Therefore,   he  assured,  this  amendment   was  not                                                            
necessary.                                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
E&ED #5:  This amendment  adds $562,400 general  funds to the  Early                                                            
Development  BRU, Head Start Grants  component on page 11,  lines 29                                                            
and 33.                                                                                                                         
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Green and an unidentified member objected.                                                                              
                                                                                                                                
Senator  Olson  cited  that  27 percent  of  Alaska's  children  are                                                            
eligible for this program  and this amendment provides the necessary                                                            
matching  funds to receive  federal funding.  He cautioned  that not                                                            
funding Head  Start would  be a disservice  to children; both  those                                                            
who would participate and  those who would be future state senators.                                                            
                                                                                                                                
Senator  Austerman spoke  in favor  of the amendment,  stating  that                                                            
Head Start is  one of the most important early development  tools in                                                            
every  state.   He  calculated  this   amendment  would   secure  an                                                            
additional $3.3 million in federal funding.                                                                                     
                                                                                                                                
Senator Wilken  noted there already would be an increase  in federal                                                            
funds  for local  Head Start  programs. He  suggested contributions                                                             
could be made  by communities to provide  matching funds  to acquire                                                            
additional  federal funding.   He  pointed out  that the  additional                                                            
amount requested  in this amendment  was never mentioned  during the                                                            
subcommittee  process.  He opined  that the  Head  Start program  is                                                            
adequately funded and is  benefiting from increased federal funding.                                                            
                                                                                                                                
Senator Hoffman remarked  that there is an effort to expand the Head                                                            
Start program  into additional communities.  He listed six  to eight                                                            
additional  communities  and 325 more  children would  be served  if                                                            
this additional funding were provided.                                                                                          
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman, Senator Olson and Senator Austerman                                                                  
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Co-Chair Donley and Co-Chair Kelly                                                                                      
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
E&ED  #6: This  amendment  adds $1  million  general  funds for  the                                                            
Alyeska Central  School BRU  and component  on page 12, line  11 and                                                            
12.                                                                                                                             
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Wilken objected.                                                                                                        
                                                                                                                                
Senator  Olson   explained  this   amendment  would  assist   in  an                                                            
innovative  program to improve  the education  provided to  students                                                            
from  communities  with  low  enrollment.  He stated  there  were  a                                                            
limited  number  of  teachers  with an  ability  to  teach  multiple                                                            
subjects available  for rural areas. He stressed the  correspondence                                                            
program would  benefit students  living in  his district as  well as                                                            
other  rural  students  in  preparing   for  the  high  school  exit                                                            
examinations.                                                                                                                   
                                                                                                                                
Senator  Hoffman  added  this   item  is  a recommendation   of  the                                                            
Governor's  Education Funding Task  Force after it spent  many hours                                                            
addressing  ways to  improve education  throughout  Alaska.  Senator                                                            
Hoffman  noted this appropriation  is targeted  toward schools  with                                                            
fewer than 50 students.                                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
E&ED  #7:  This  amendment  adds  $730,000  general  funds  for  the                                                            
Teaching  and Learning Support  BRU, Quality  Schools component  and                                                            
page 11, lines 20 and 23.                                                                                                       
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Wilken objected.                                                                                                        
                                                                                                                                
AT EASE 10:30 AM \ 10:32 AM                                                                                                     
                                                                                                                                
Senator Olson  AMENDED his  motion to include  adoption of  E&ED #8,                                                            
E&ED #9  and E&ED #10.  [Note: These three  amendments appear  to be                                                            
identical.]                                                                                                                     
                                                                                                                                
E&ED  #8: This  amendment  adds $2  million  general  funds for  the                                                            
Teaching  and Learning Support  BRU, Quality  Schools component  and                                                            
page 11, lines 20 and 23.                                                                                                       
                                                                                                                                
E&ED  #9: This  amendment  adds $2  million  general  funds for  the                                                            
Teaching  and Learning Support  BRU, Quality  Schools component  and                                                            
page 11, lines 20 and 23.                                                                                                       
                                                                                                                                
E&ED  #10: This  amendment adds  $2 million  general  funds for  the                                                            
Teaching  and Learning Support  BRU, Quality  Schools component  and                                                            
page 11, lines 20 and 23.                                                                                                       
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator Olson shared these  amendments relate to efforts made by the                                                            
Governor's Education  Funding Task Force to review  education in the                                                            
state  and identify  where improvements  could  be made  as well  as                                                            
finding maximum  efficiencies in spending. He asserted  that because                                                            
of   the   task   force's   objectivity   in   the   matter,   their                                                            
recommendations  should receive greater credibility.  He requested a                                                            
representative  of  the  Administration  explain  the  necessity  of                                                            
adopting this amendment.                                                                                                        
                                                                                                                                
Co-Chair  Donley reminded  that  the purpose  of  witnesses at  this                                                            
hearing is to  address questions rather than make  detailed position                                                            
statements.                                                                                                                     
                                                                                                                                
ANNALEE  MCCONNELL,  Director,  Office  of  Management  and  Budget,                                                            
Office of the Governor  shared that the Education Funding Task Force                                                            
took an  approach  of identifying  specific areas  where  additional                                                            
resources are  necessary to comply with the requirements  leading up                                                            
to the  exit exams. She  listed three areas:  the need for  specific                                                            
assistance  for schools that  were not  performing well,  incentives                                                            
for schools that  were performing well, and developing  a center for                                                            
excellence  to highlight  effective  methods that  could be  applied                                                            
elsewhere. She noted these  complement the legislature's performance                                                            
measure approach to funding programs.                                                                                           
                                                                                                                                
Senator  Wilken remarked  that the  Education Task  Force "did  good                                                            
work" and  he was  tempted to  support the  amendments. However,  he                                                            
stated there  was a more  appropriate manner  to address this  issue                                                            
such as the K-12 education funding formula.                                                                                     
                                                                                                                                
Senator Olson  commented that any  delays in funding this  increment                                                            
would create more expense in the future.                                                                                        
                                                                                                                                
Senator  Hoffman referenced  pending legislation  designed to  "fine                                                            
tune" the exit  exam. He asked the  witness how the exit  exam could                                                            
be improved  according  to  the recommendations  of  the task  force                                                            
without adequate funding.                                                                                                       
                                                                                                                                
Ms. McConnell  answered this  relates to the  decision to delay  the                                                            
implementation  of  the exit  exams.  She said  this  is to  provide                                                            
assistance to  those students who demonstrate learning  difficulties                                                            
in earlier  tests, including  the exam administered  to third  grade                                                            
students.  She  detailed  how the  quality  schools  programs  would                                                            
address areas of insufficiency.                                                                                                 
                                                                                                                                
A roll call  was taken on the motion  to adopt the four amendments.                                                             
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green and Co-Chair Donley                                                                                    
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendments FAILED to be adopted.                                                                                            
                                                                                                                                
Department of Labor and Workforce Development (cont.)                                                                         
                                                                                                                                
LAB #1: This  amendment changes the  fund source of $90,000  for the                                                            
Employment Security BRU,  Job Training Programs component from State                                                            
Training  and Employment Program  (STEP) funds  to general  funds on                                                            
page 22, lines 14 and 17.                                                                                                       
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator Hoffman  shared this funding  source change is a  request of                                                            
the Division of Employment  Security and reverses the recommendation                                                            
of  the  Department  of  Labor  and  Workforce  Development   budget                                                            
subcommittee.  He warned that  using STEP  funds for this  increment                                                            
would  result in approximately  50  participants  who paid into  the                                                            
fund through the Unemployment  Insurance (UI) tax, would not receive                                                            
training and employment services through the STEP program.                                                                      
                                                                                                                                
Senator  Hoffman noted  this amendment  supports  Co-Chair  Donley's                                                            
position that UI funds should be used only as intended.                                                                         
                                                                                                                                
AT EASE 10:42 AM / 10:44 AM                                                                                                     
                                                                                                                                
Co-Chair  Donley shared information  he garnered  during the  recess                                                            
indicating  that using STEP funds  for job training efforts  in this                                                            
increment is not  inconsistent with the intent of  the STEP program.                                                            
He pointed out  the training program in question is  a long-standing                                                            
program.                                                                                                                        
                                                                                                                                
Senator Hoffman  WITHDREW his motion to allow him  an opportunity to                                                            
verify Co-Chair Donley's assertion. The amendment was HELD.                                                                     
                                                                                                                                
AT EASE 10:45 AM / 10:46 AM                                                                                                     
                                                                                                                                
Department of Fish and Game                                                                                                   
                                                                                                                                
F&G #1: This  amendment adds $100,000  general funds to the  Habitat                                                            
BRU  and  component  on page  16,  lines  17  and  18. Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     Oil and gas  exploration, leasing and development  on the North                                                            
     Slope  have increases dramatically  in the last several  years.                                                            
     The  existing  budget  is not  adequate  to conduct  the  field                                                            
     reviews required before,  during, and after project activities.                                                            
     This   has   limited   the   department's   ability   to   work                                                            
     cooperatively  with industry  when project  designs are  in the                                                            
     early  stages of development,  a time  when the input  is often                                                            
     the most important.  The department's early involvement results                                                            
     in the least economic  impact to industry, and provides for the                                                            
     highest  level of protection  for fish and wildlife  resources,                                                            
     while still allowing development to occur.                                                                                 
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
F&G #2: This  amendment adds $100,000  general funds to the  Habitat                                                            
BRU and component on page 16, lines 17 and 18.                                                                                  
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
Department of Environmental Conservation                                                                                      
                                                                                                                                
DEC  #1:  This  amendment   adds  $32,500  general   funds  for  the                                                            
Environmental  Health BRU, Solid Waste Management  component on page                                                            
13, lines 15 and 20.                                                                                                            
                                                                                                                                
Senator Leman moved for adoption.                                                                                               
                                                                                                                                
Senator Hoffman objected for an explanation.                                                                                    
                                                                                                                                
Senator  Leman explained  this  amendment  is a result  of  "intense                                                            
discussions"  with resource  development council  members  regarding                                                            
the  need for  the  department  to hire  a third-party  independent                                                             
contractor   to  work  with  the   department  and  the   "regulated                                                            
community"  on the appropriate categorization  of permit  types, fee                                                            
rates  and   associated  regulation.   He  noted  this  relates   to                                                            
implementation of other legislation passed the previous session.                                                                
                                                                                                                                
Senator Leman  relayed to the Committee that since  close-out of the                                                            
Department  of Environmental Conservation  budget subcommittee,  the                                                            
department  has  acknowledged  an  error  in  their  report  stating                                                            
$40,000 general  funds would be transferred  through a reimbursable                                                             
services  agreement (RSA)  to the Department  of Law for  regulation                                                            
efforts.  He noted  the subcommittee  considered  the  amount to  be                                                            
excessive  and  did  not  recommend  funding  that  portion  of  the                                                            
increment.   Since  that   time,  he  shared,   the  Department   of                                                            
Environmental  Conservation  clarified the funds  would be  used for                                                            
activities  in  addition  to  drafting  and  adopting  regulations,                                                             
including efforts  to work with all parties and reaching  agreement.                                                            
                                                                                                                                
Senator Leman  commented that while  he maintains the work  could be                                                            
done  within  existing  structure,  the  regulating   community  has                                                            
concluded that a third  party contractor is necessary. He noted that                                                            
a third party  contractor was used for reaching agreements  in water                                                            
related matters  and the regulatory  community predicts it  would be                                                            
successful in solid waste related matters as well.                                                                              
                                                                                                                                
Senator  Leman  noted  this  amendment  funds the  majority  of  the                                                            
original  $40,000 request  and that  the department  budget  remains                                                            
below the spending limit established by the Senate Majority.                                                                    
                                                                                                                                
Senator Hoffman removed his objection.                                                                                          
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
DEC #2: This amendment reads as follows.                                                                                        
                                                                                                                                
                             Appropriation  General            Other                                                            
                      Allocation      Items     Funds          Funds                                                            
     Page 13, line 31:                                                                                                          
          Delete:                                                                                                               
     Spill Prevention           8,240,800                    8,240,800                                                          
          And Response                                                                                                          
          Insert:                                                                                                               
     Spill Prevention           8,163,300                    8,163,300                                                          
          And Response                                                                                                          
                                                                                                                                
     Page 14, line 3:                                                                                                           
          Delete:                                                                                                               
       Industry           3,123,100                                                                                             
        Preparedness and                                                                                                        
        Pipeline Operations                                                                                                     
          Insert:                                                                                                               
       Industry           3,045,600                                                                                             
        Preparedness and                                                                                                        
        Pipeline Operations                                                                                                     
                                                                                                                                
     Page 47, following line 31:                                                                                                
          Insert a new bill section to read:                                                                                    
          Sec. 10. DEPARTMENT OF ENVIRONMENTAL CONSERVATION. The                                                                
     sum  of $77,500  is appropriated  from  the  oil and  hazardous                                                            
     substance  release prevention  account (AS 46.08.010(a)(1))  to                                                            
     the  Department  of Environmental  Conservation  for  increased                                                            
     financial  responsibility  activities for  nontank vessels  and                                                            
      railroad cars for the fiscal year ending June 30, 2002.                                                                   
                                                                                                                                
Senator Leman  moved for adoption and explained this  is a technical                                                            
amendment to fund  the second year of the fiscal note  for SB 273 of                                                            
the twenty-first  legislative  session relating  to nontank  vessels                                                            
and  railroad  cars. He  noted  this amendment  clarifies  that  the                                                            
funding  is one-time  only  and not  to become  a part  of the  base                                                            
expenses in FY 03.                                                                                                              
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
DEC #3: This amendment  removes $112,500 Oil/Hazardous Response Fund                                                            
(Prevention  Account) from the Local  Emergency Planning  Committees                                                            
BRU and component.                                                                                                              
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DEC  #4:  This  amendment   adds  $40,000  general   funds  for  the                                                            
Environmental Health BRU, Solid Waste Management component.                                                                     
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DEC  #5: This  amendment  adds $120,000  Commercial  Fisheries  Loan                                                            
funds for the  Environmental Health BRU, Food Safety  and Sanitation                                                            
component on page 13, lines 15 and 17.                                                                                          
                                                                                                                                
Senator  Olson explained  this amendment would  ensure a  systematic                                                            
monitoring  program for Alaskan seafood  products. He asserted  that                                                            
the safety  of seafood  products is  a growing  concern through  the                                                            
world.  He cautioned  that without  a monitoring  system,  questions                                                            
from  commercial  buyers  about matters  such  as  federally  issued                                                            
consumption  advisories,  could  not be  refuted  due to  a lack  of                                                            
scientific data.  He stressed that these consumption  advisories are                                                            
causing  unnecessary  concern  for  Alaska  since  most  reports  of                                                            
contamination  involve  seafood  from the  Lower  48.  He moved  for                                                            
adoption of the amendment.                                                                                                      
                                                                                                                                
Senator Green  objected and informed that $3.25 million  is included                                                            
in the Department  of Health and Social  Services budget  to respond                                                            
to the advisories  and also review the method of mercury  testing as                                                            
well as fund research  activities on the effects of  contaminants on                                                            
seafood  and people.  She noted  that portions  of  these funds  are                                                            
designated  for the  Department  of Environmental  Conservation  and                                                            
other entities involved.                                                                                                        
                                                                                                                                
Senator  Hoffman requested  Ms.  McConnell address  Senator  Green's                                                            
statement that the funds in this amendment are no longer needed.                                                                
                                                                                                                                
Ms.  McConnell  responded  that a  request  has been  submitted  for                                                            
federal funds,  but they had not yet  been received. She  added that                                                            
Alaska's congressional  delegation has been notified  that this is a                                                            
key issue, but  she warned that there is no indication  at this time                                                            
of whether this  request would be successful.  She  pointed out that                                                            
this  amendment pertains  specifically  to  the testing  of  seafood                                                            
whereas   the  proposal   Senator   Green   spoke   of  involves   a                                                            
comprehensive  approach   to  the  entire  issue  of  public  health                                                            
relating  to  seafood.  She  clarified   that  the  funding  in  the                                                            
amendment would  allow the Department of Environmental  Conservation                                                            
to conduct baseline monitoring of seafood.                                                                                      
                                                                                                                                
Senator Hoffman requested comment on the fund source.                                                                           
                                                                                                                                
Ms.  McConnell  said the  original  budget  request was  to  utilize                                                            
general  funds  and  that  the  source  was  changed  to  Commercial                                                            
Fisheries  Loan  funds  in  the  budget   passed  by  the  House  of                                                            
Representatives.  She  detailed  how the  proposed  testing  project                                                            
would qualify for Commercial Fisheries Loan funds.                                                                              
                                                                                                                                
Senator Hoffman  spoke to his support  of the amendment emphasizing                                                             
the large number of people who depend on the fishing industry.                                                                  
                                                                                                                                
Ms. McConnell  emphasized there have  been instances where  the U.S.                                                            
Environmental  Protection Agency has planned to issue  contamination                                                            
advisories that  included Alaskan fish. She stressed  that the state                                                            
successfully  argued  Alaskan seafood  products  should be  exempted                                                            
from  the bans  in  one such  case.  She stated  that  the  proposed                                                            
testing would be useful  in persuading against similar inclusions in                                                            
the future.                                                                                                                     
                                                                                                                                
Senator  Leman shared  the amendment  sponsor's  goal of  supporting                                                            
Alaska's seafood industry.  However he informed that the Division of                                                            
Legislative  Finance advises  that use of  the Commercial  Fisheries                                                            
Loan fund for the proposed testing is not possible.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green and Co-Chair Donley                                                                                    
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DEC  #6:  This  amendment  removes  $167,600  Statutory   Designated                                                            
Program  Receipts (SDPR)  from the  Environmental  Health BRU,  Food                                                            
Safety and Sanitation  component and adds $221,300  general funds to                                                            
the same BRU and component on page 13, lines 15 and 17.                                                                         
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Leman objected.                                                                                                         
                                                                                                                                
Senator Olson  expressed this is a public health issue  and asserted                                                            
the need  for  protection by  ensuring  that the  highest risk  food                                                            
facilities  should   be  inspected  at  least  once   a  year.  This                                                            
amendment,  he stated,  would provide  adequate  funding to  conduct                                                            
annual inspections on such facilities.                                                                                          
                                                                                                                                
Senator Leman  noted this amendment utilizes general  funds and that                                                            
the budget subcommittee  had determined that SDPR was better suited.                                                            
                                                                                                                                
Senator Hoffman  opined that  the fishing  industry "more than  pays                                                            
its fair share"  for the services  it receives. He surmised  that in                                                            
order to  continue to receive  revenue from  the commercial  fishing                                                            
industry, the  state must expend some funds to ensure  the viability                                                            
of  the  industry.   He  characterized   this  increment   as  "very                                                            
inexpensive insurance."                                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator Ward,  Senator Wilken, Senator Green, Senator Leman                                                            
and Co-Chair Donley                                                                                                             
                                                                                                                                
ABSENT: Senator Austerman and Co-Chair Kelly                                                                                    
                                                                                                                                
The motion FAILED (2-5-2)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DEC #7:  This amendment  adds  $82,500 Capital  Improvement  Project                                                            
(CIP) receipts and a new  position for the Facility Construction and                                                            
Operation BRU and component on page 14, lines 13 through 16.                                                                    
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DEC #8:  This amendment  changes the  fund source  of $156,800  from                                                            
general  funds to  I/A Oil and  hazardous substance  prevention  and                                                            
response  fund in the Administration  BRU on  page 13, line  11. The                                                            
amendment  makes the  same  replacement in  the Department  of  Law,                                                            
Civil Division  BRU, Environmental  Law component  on page  33, line                                                            
33.                                                                                                                             
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
AT EASE 11:01 AM / 3:34 PM                                                                                                      
                                                                                                                                
[Note: remainder of the  tape is blank. No portion of the meeting is                                                            
missing.]                                                                                                                       
                                                                                                                                
                                                                                                                                
SFC 01 # 66, Side A 03:34 PM                                                                                                    
                                                                                                                                
                                                                                                                                
DEC #8:  This amendment  changes the  fund source  of $156,800  from                                                            
general  funds to  I/A Oil and  hazardous substance  prevention  and                                                            
response  fund in the Administration  BRU on  page 13, line  11. The                                                            
amendment  makes the  same  replacement in  the Department  of  Law,                                                            
Civil Division  BRU, Environmental  Law component  on page  33, line                                                            
33.                                                                                                                             
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Department of Public Safety                                                                                                   
                                                                                                                                
DPS  #1: This  amendment  removes  $50,000  general funds  from  the                                                            
Council  on Domestic  Violence and  Sexual Assault  (CDVSA) BRU  and                                                            
component, on page 28,  line 33 and page 29, lines 3 through 5. This                                                            
amendment  also  adds  $50,000  general  funds  for  the  Batterer's                                                            
Intervention  Program BRU and component  on page 29, lines  6 and 7.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The CDVSA  has received a 15  percent increase in funding  over                                                            
     the  last two years  while the Batterers  Intervention  Program                                                            
     funding has  remained level. This transfer of  $50,000 provides                                                            
     much  needed funding  for the additional  grant requests  being                                                            
     made by batterers  intervention program. Without  intervention,                                                            
     we cannot hope to do away with domestic violence.                                                                          
                                                                                                                                
     Additionally,  a recent audit  of the CDVSA identifies  serious                                                            
     issues regarding  monitoring and evaluation and  indicates that                                                            
     Batterers Intervention Programs are underfunded.                                                                           
                                                                                                                                
This amendment was HELD.                                                                                                        
                                                                                                                                
DPS #2:  This amendment adds  $89,900 general  funds for the  Alaska                                                            
State  Troopers BRU,  Criminal  Investigations  Bureau component  on                                                            
page 28, lines 4 and 8.                                                                                                         
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DPS #3: This  amendment adds $350,000  general funds for  the Alaska                                                            
State Troopers BRU, Search  and Rescue component on page 28, lines 4                                                            
and 12.                                                                                                                         
                                                                                                                                
This amendment was NOT OFFERED to defer to DPS #16.                                                                             
                                                                                                                                
DPS #4:  This amendment  creates a new  Judicial Services-Statewide                                                             
component  in the  Alaska  State Troopers  BRU and  adds  $3,725,900                                                            
general funds for that  component, on page 28, lines 4 and following                                                            
line 10.                                                                                                                        
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
Senator  Olson explained  the new component  pertains to  courthouse                                                            
security.  He informed  the amendment  would  provide 35  additional                                                            
court  officers  to  increase  security  in  both  rural  and  urban                                                            
courthouses  across the  state. He  stressed courtroom  safety  as a                                                            
growing concern.                                                                                                                
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson                                                                                                         
                                                                                                                                
OPPOSED: Senator Wilken,  Senator Austerman, Senator Green, Co-Chair                                                            
Kelly, Senator Ward, Co-Chair Donley and Co-Chair Kelly                                                                         
                                                                                                                                
ABSENT: Senator Hoffman                                                                                                         
                                                                                                                                
The motion FAILED (1-7-1)                                                                                                       
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
DPS #5:  This amendment  creates a new  Judicial Services-Statewide                                                             
component  in the  Alaska  State Troopers  BRU and  adds  $4,369,100                                                            
general funds for that  component, on page 28, lines 4 and following                                                            
line 10.                                                                                                                        
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DPS #6: This  amendment adds $100,000  general funds for  the Alaska                                                            
State Trooper  Detachment  BRU and  component on  page 28, lines  16                                                            
through 18.                                                                                                                     
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
Senator  Olson noted  this amendment  provides  funding to  purchase                                                            
three  vehicles at  the request  of the  Alaska  State Troopers.  He                                                            
stated these are to replace aged emergency response vehicles.                                                                   
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
DPS #7: This  amendment adds $142,700  general funds for  the Alaska                                                            
State Trooper  Detachment  BRU and  component on  page 28, lines  16                                                            
through 18.                                                                                                                     
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator Olson  told the  Committee this amendment  would fully  fund                                                            
on-going  law  enforcement  recruiting   efforts.  He  stressed  the                                                            
difficulties  in attracting  quality  applicants who  meet the  high                                                            
standards of the Alaska State Troopers.                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS #8: This  amendment adds $838,000  general funds for  the Alaska                                                            
State Trooper  Detachment  BRU and  component on  page 28, lines  16                                                            
through 18.                                                                                                                     
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
Senator Olson  stated this  amount meets  the governor's request  to                                                            
hire  and  train eight  new  certified  police  officers  for  rural                                                            
communities in which the  Alaska State Troopers has jurisdiction. He                                                            
spoke to the  need for long-term proactive  measures to deter  rural                                                            
citizens  from committing  a crime.  He noted  these officers  would                                                            
also assist  in search  and rescue activities,  conduct boat  safety                                                            
inspections and  respond to the needs of domestic  violence victims.                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS #9: This amendment  adds $1,280,100 general funds for the Alaska                                                            
State Trooper  Detachment  BRU and  component on  page 28, lines  16                                                            
through 18.                                                                                                                     
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator  Olson explained  this  increment  provides  funding for  an                                                            
additional  eight  state  troopers.  He  warned  that  without  this                                                            
funding,  the troopers  would  be forced  to continue  dealing  with                                                            
crime  only  in  a  reactive  mode  rather  than  taking   proactive                                                            
measures.                                                                                                                       
                                                                                                                                
Co-Chair  Donley asked Senator  Austerman how  many new trooper  and                                                            
Fish and Wildlife  Protection officer positions were  created at the                                                            
recommendation of the department budget subcommittee.                                                                           
                                                                                                                                
Senator Austerman  listed three Alaska State Troopers  and four Fish                                                            
and Wildlife Protection officers.                                                                                               
                                                                                                                                
Co-Chair  Donley noted  an additional  $500,000  allocated for  this                                                            
purpose  through  an  RSA,  bringing   the  total  to  fourteen  new                                                            
officers.                                                                                                                       
                                                                                                                                
Senator Austerman clarified the total as twelve.                                                                                
                                                                                                                                
Senator Olson  stressed the  need for proactive  efforts to  prevent                                                            
crime,  which would  not be  achieved with  the  twelve new  officer                                                            
positions.                                                                                                                      
                                                                                                                                
Senator   Hoffman  agreed   the  committee   substitute  adds   more                                                            
personnel,  but maintained  that the area  of jurisdiction  for each                                                            
trooper remains too large.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS #10: This amendment  adds $500,000 general funds for the Council                                                            
on Domestic  Violence and Sexual Assault  BRU and component  on page                                                            
28, line 33 and page 29, lines 3 through 5.                                                                                     
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
Senator  Olson asserted  the budget  subcommittee  had approved  the                                                            
governor's  funding request  of $500,000 to  implement the  Violence                                                            
Against Women  Act. However,  he pointed  out that the subcommittee                                                             
recommended removing $950,000 from the program.                                                                                 
                                                                                                                                
Co-Chair Donley  advised that the  general funds were replaced  with                                                            
federal funds and there would therefore be no reduction.                                                                        
                                                                                                                                
Senator  Hoffman stressed  that  Alaska ranks  highest  in drug  and                                                            
alcohol abuse,  which is directly related to the number  of domestic                                                            
violence and  sexual assault incidents.  He emphasized that  without                                                            
these funds  domestic violence and  sexual assault would  still be a                                                            
problem in many lives.                                                                                                          
                                                                                                                                
Co-Chair  Donley   stressed  the  legislature  has   made  "a  major                                                            
commitment to  this program in particular" but opined  that this has                                                            
sometimes been at the expense of other programs.                                                                                
                                                                                                                                
Senator  Hoffman  requested  the  department  explain  where  Alaska                                                            
stands in regard to other states in domestic violence.                                                                          
                                                                                                                                
KEN  BISCHOFF,  Director,   Division  of  Administrative   Services,                                                            
Department  of  Public   Safety,  affirmed  that  the  subcommittee                                                             
proposal maintains  the level of funding appropriated  in FY 01, but                                                            
does not provide the additional  $500,000 requested by the governor.                                                            
                                                                                                                                
TRISHA  GENTLE, Council  on  Domestic  Violence and  Sexual  Assault                                                            
testified  Alaska has  the  highest rate  of domestic  violence  and                                                            
sexual assault incidents  in the nation. She said this increment was                                                            
intended specifically for children's advocates.                                                                                 
                                                                                                                                
Senator Hoffman concluded  that without this funding the high levels                                                            
of domestic  violence and  sexual assault  would remain. He  pointed                                                            
out that  the media  has been reporting  of the  high percentage  of                                                            
domestic  violence  and sexual  assaults  committed  against  Alaska                                                            
Natives.  He presumed that  $500,000 is "a small price to pay to try                                                            
to get us off the list as number one in the nation."                                                                            
                                                                                                                                
Senator Olson opined that  it was obvious to him that because of the                                                            
number  one ranking  of Alaska, efforts  to address  the matter  are                                                            
inadequately  funded.  He  stressed  domestic  violence  and  sexual                                                            
assault affects  everyone, regardless  of race or social  economical                                                            
group.                                                                                                                          
                                                                                                                                
Senator Hoffman  asked Mr.  Bischoff about  insurance rates  and the                                                            
purchasing  power that would  be reduced by  trying to maintain  the                                                            
current level of services.                                                                                                      
                                                                                                                                
Ms. Gentle replied that  the Network on Domestic Violence and Sexual                                                            
Assault conducted  a survey of programs  and health insurance  costs                                                            
for employees and found  a 20 percent increase for all programs. She                                                            
emphasized there are additional costs to operate the programs.                                                                  
                                                                                                                                
Senator Hoffman  therefore stated that the current  funding does not                                                            
maintain,  but rather  decreases the  funding level  because of  the                                                            
reduced purchasing power.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman and Co-Chair Donley                                                                                        
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS #11: This  amendment adds $60,400 general funds  for the Village                                                            
Public Safety  Officer Program  BRU, Support  component on  page 28,                                                            
lines 19, 20 and 22.                                                                                                            
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DPS #12: This amendment  adds $828,500 general funds for the Village                                                            
Public Safety  Officer Program BRU, Contracts component  on page 28,                                                            
lines 19 through 21.                                                                                                            
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator Olson spoke to  the amendment to increase the salary paid to                                                            
Village  Public  Safety  Officers  (VPSO),  which  he  remarked  are                                                            
underpaid. He  emphasized that the high turnover in  these positions                                                            
is a loss of experience for the state.                                                                                          
                                                                                                                                
Senator  Hoffman  stressed that  the  VPSOs are  the  first line  of                                                            
defense in  the communities they serve.  He hoped to someday  have a                                                            
VPSO in every Alaskan community.                                                                                                
                                                                                                                                
Co-Chair  Donley  pointed  out,  "Despite   erroneous  news  stories                                                            
earlier this  session, VPSOs  have not been  cut"; funding  for this                                                            
program has never been  reduced and was actually increased the prior                                                            
year.                                                                                                                           
                                                                                                                                
Senator Hoffman  thanked Senator Halford for sponsoring  legislation                                                            
that enhances the VPSO program and hoped it would pass.                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS  #13: This  amendment  adds  $1,152,100  general funds  for  the                                                            
Village Public  Safety Officer Program  BRU, Contracts component  on                                                            
page 28, lines 19 through 21.                                                                                                   
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator Olson  stated that 73 rural  communities do not have  a VPSO                                                            
or any  other state-certified  law  enforcement  officer. He  warned                                                            
that without  this appropriation,  up to 20 of these villages  would                                                            
not begin to receive this service.                                                                                              
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DPS #14: This  amendment adds $1,210,000 general funds  for the Fish                                                            
and Wildlife Protection  BRU, Enforcement and Investigative Services                                                            
Unit component on page 27, lines 24 through 26.                                                                                 
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
Senator  Olson WITHDREW  his motion,  without  explanation, and  the                                                            
amendment was HELD.                                                                                                             
                                                                                                                                
DPS #15: This  amendment adds $100,000 general funds  for the Alaska                                                            
State Troopers BRU, Search  and Rescue component on page 28, lines 4                                                            
and 12.                                                                                                                         
                                                                                                                                
Senator  Green moved  for adoption  and explained  this would  allow                                                            
more attention  to be given to information  dissemination,  training                                                            
and awareness of avalanches.  She shared that the Mat-Su Borough has                                                            
been  impacted  by  loss  of life  to  avalanches.  She  stated  she                                                            
preferred  more funding,  but  would be  satisfied  with the  amount                                                            
proposed in the amendment.                                                                                                      
                                                                                                                                
Co-Chair Donley  pointed out no funds are included  for this purpose                                                            
in the budget passed by the House of Representatives.                                                                           
                                                                                                                                
Senator Green affirmed.                                                                                                         
                                                                                                                                
Co-Chair  Donley stated  that  passing this  amendment  is the  only                                                            
method in which to provide these funds.                                                                                         
                                                                                                                                
Senator Leman  was unsure how these  funds would impact the  loss of                                                            
life. He understood  there is an education effort  already underway,                                                            
but that avalanche deaths still were occurring.                                                                                 
                                                                                                                                
Senator  Green replied that  a well-funded  program existed  several                                                            
years prior  and this  appropriation would  reinstate that  program.                                                            
She  stated this  would allow  for  notification  of certain  danger                                                            
areas if the ability  to identify them were developed.  She admitted                                                            
she was unsure whether  every person would ever heed to the dangers.                                                            
                                                                                                                                
Senator  Hoffman  opposed the  amendment,  stating  that several  of                                                            
Senator Olson's amendments were of higher priority.                                                                             
                                                                                                                                
Co-Chair Donley  commented the Committee heard, "very  emotional and                                                            
moving testimony"  on this matter.  He requested Senator  Green work                                                            
with  him  to  identify   an  alternate  funding  source   for  this                                                            
increment.                                                                                                                      
                                                                                                                                
Senator  Ward added that  this danger  does not  only apply  to snow                                                            
machine riders,  but to all backcountry users, skiers,  trappers and                                                            
miners.                                                                                                                         
                                                                                                                                
Senator Green WITHDREW  her motion to adopt the amendment and it was                                                            
HELD.                                                                                                                           
                                                                                                                                
[Pause on the record.]                                                                                                          
                                                                                                                                
Department of Health and Social Services                                                                                      
                                                                                                                                
H&SS #1: This  amendment changes the  funding source of $288,600  in                                                            
the  Medical  Assistance  BRU,  Medicaid  Services  component,  from                                                            
general funds  to Tobacco Settlement  funds on page 17, line  31 and                                                            
page 18,  line 3. This  amendment also adds  $288,600 general  funds                                                            
for the State  Health Services BRU,  Tobacco Prevention and  Control                                                            
component on page 20, lines 5 and 26.                                                                                           
                                                                                                                                
Senator Green moved for  adoption and told the Committee that during                                                            
the budget subcommittee  process, general funds had been included in                                                            
the  Tobacco   Prevention  and  Control   component.  However,   she                                                            
asserted, the  intent was to utilize only Tobacco  Settlement funds.                                                            
She  pointed  out  that an  additional  $100,000  is  added  to  the                                                            
increment.                                                                                                                      
                                                                                                                                
Senator  Austerman   asked  the  total  amount  allocated   to  this                                                            
increment in FY 01.                                                                                                             
                                                                                                                                
Senator  Green answered $1,400,000  and pointed  out this  amendment                                                            
increases that amount to $1,500,000.                                                                                            
                                                                                                                                
Senator  Hoffman stated  that he would  support  the amendment  as a                                                            
"good first small step."                                                                                                        
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
H&SS  #2: This  amendment  removes $47,800  general  funds from  the                                                            
Community Mental Health  Grants BRU, General Community Mental Health                                                            
Grants component on page  21, lines 6 through 8. This amendment also                                                            
adds  $47,800   general  funds  for   the  Community  Developmental                                                             
Disabilities Grants  BRU and component on page 21,  lines 16 through                                                            
19. Accompanying explanatory language reads exactly as follows.                                                                 
                                                                                                                                
     In the Senate Subcommittee  transfer from designated BRU grants                                                            
     there  was  $47.8 that  should  have  been transferred  to  the                                                            
     Developmental Disability  Grant component. The $47.8 has funded                                                            
     individualized  DD services for many years in  the Norton Sound                                                            
     region and  if the designated BRU grants do not  exist the fund                                                            
     should be  in the funded in the Developmental  Disability Grant                                                            
     component.                                                                                                                 
                                                                                                                                
Senator Green moved for  adoption and explained this is a correction                                                            
to the subcommittee recommendation.                                                                                             
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
H&SS  #3:  This  amendment   adds  $2,900  general   funds  for  the                                                            
Facilities Maintenance  BRU, HSS State Facilities  Rent component on                                                            
page 22, lines 8 and 10.  Accompanying explanatory language reads as                                                            
follows.                                                                                                                        
                                                                                                                                
     The  subcommittee failed  to adopt this  net zero transfer.  By                                                            
     paying  this rent  in  the Health  and Social  Services  budget                                                            
     instead  of the Administration  budget the State of  Alaska can                                                            
     take advantage  of federal reimbursement  for a portion  of the                                                            
     rental costs.                                                                                                              
                                                                                                                                
Senator  Green moved  for adoption  and read  the above explanation                                                             
statement into the record.                                                                                                      
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
H&SS #4: This  amendment adds $63,500 general funds  for the Alcohol                                                            
and Drug Abuse  Services BRU, Alcohol  Safety Action Program  (ASAP)                                                            
component on page 20, lines 27, 29 and 30.                                                                                      
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     Research  shows that youth who begin to consume  alcohol before                                                            
     the  age of 15 are  four times more  likely to develop  alcohol                                                            
     dependency  than people who wait  until after the age  of 21 to                                                            
     begin drinking.  In 1999 the Alaska Court System  recorded over                                                            
     2,200  citations  for  minors under  the  age of  18  consuming                                                            
     alcohol.                                                                                                                   
     Funding  is  requested  for  a  permanent  full  time  Juvenile                                                            
     Probation  Officer to assist with a new program  to address the                                                            
     need for  a Juvenile Alcohol Safety Action Program  (ASAP). The                                                            
     Division  of  Alcohol  and  Drug  Abuse  will  provide  alcohol                                                            
     screening,   assessments  and   monitoring  of  court   ordered                                                            
     sanctions  of minors cited for consuming or possessing  alcohol                                                            
     in  6-8  communities   through  grants  with  community   based                                                            
     agencies.                                                                                                                  
                                                                                                                                
Senator Green pointed out this item was funded at FY 01 level.                                                                  
                                                                                                                                
Senator Hoffman emphasized  Alaska's standing in relation to alcohol                                                            
consumption in  relation to other states to show the  "magnitude" of                                                            
the issue.                                                                                                                      
                                                                                                                                
AT EASE 4:11 PM / 4:14 PM                                                                                                       
                                                                                                                                
Senator Hoffman requested comment from the department.                                                                          
                                                                                                                                
KAREN  PERDUE,  Commissioner,   Department  of  Health   and  Social                                                            
Services, stressed that  alcohol is a "very large problem in Alaska"                                                            
with at least  the fifth highest rate  of alcohol-related  problems.                                                            
She added that  the state has the  highest documented rate  of fetal                                                            
alcohol  syndrome in  the nation,  and  possibly in  the world.  She                                                            
continued  that   alcohol  accounts  for  50  percent   of  hospital                                                            
emergency room  visits, 65 percent  of suicide attempts,  83 percent                                                            
of  child abuse  cases,  "very  high" domestic  violence  rates,  50                                                            
percent of fatal  automobile crashes, 45 percent of  fire deaths and                                                            
46  percent of  murders.  She  stressed  that there  is  a need  for                                                            
treatment that exceeds  the amount of funds to offer such treatment.                                                            
                                                                                                                                
Ms. Perdue compared the  2.67 gallons per person consumption rate of                                                            
Alaskans  to the  U.S. average  of two  gallons.  She reported  that                                                            
consumption in Alaska has  declined in the last decade by almost one                                                            
gallon.                                                                                                                         
                                                                                                                                
Senator Hoffman  requested the amendment be HELD to  await action on                                                            
HESS #27.                                                                                                                       
                                                                                                                                
H&SS #5: This amendment  adds $326,300 general funds for the Alcohol                                                            
and Drug Abuse Services  BRU, Alcohol/Drug Abuse Grants component on                                                            
page 20, lines 27 and 31.                                                                                                       
                                                                                                                                
This amendment was HELD to await action on HESS #27.                                                                            
                                                                                                                                
H&SS #16: This  amendment adds $359,400 general funds  for the State                                                            
Health Services  BRU, Community Health Grants component  on page 20,                                                            
lines 5 and 20.                                                                                                                 
                                                                                                                                
This amendment was HELD to await action on HESS #27.                                                                            
                                                                                                                                
H&SS  #21:  This amendment   adds $148,500  general  funds  for  the                                                            
Purchased Services  BRU, Family Preservation  component on  page 18,                                                            
lines 28 and 29.                                                                                                                
                                                                                                                                
This amendment was HELD to await action on HESS #27.                                                                            
                                                                                                                                
H&SS #6: This amendment  adds $426,000 general funds for the Alcohol                                                            
and Drug  Abuse Services  BRU,  Community Action  Against  Substance                                                            
Abuse Grants  (CAASA) component  on page 20,  lines 27, and  33, and                                                            
page 21, line 3.                                                                                                                
                                                                                                                                
Senator Hoffman  referred to the H&SS  #4 explanatory statement  and                                                            
read  an  additional  explanatory   statement  into  the  record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The impact of not funding these grants will be:                                                                            
     ·    Approximately eight communities, including Anchorage and                                                              
          Mat-Su, who are experiencing the most problems with minor                                                             
          consuming, will not receive juvenile ASAP services                                                                    
           through grants with community based agencies.                                                                        
     ·    Increase in the number of repeat juvenile offenders who                                                               
          progress to levels necessitating increased supervision                                                                
          and space utilization.                                                                                                
     ·    Repeat juvenile offenders will eventually enter the adult                                                             
          system (Department of Corrections), resulting in more                                                                 
          costly jail time or felony supervision.                                                                               
     ·    Across time not funding these grants will increase the                                                                
          number of new DWI, Domestic Violence Assault and other                                                                
          alcohol/other drug-related offenses statewide due to lack                                                             
          of early intervention.                                                                                                
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman and Co-Chair Donley                                                                                   
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS #7: This amendment  adds $700,000 general funds for the Alcohol                                                            
and Drug Abuse Services  BRU, Alcohol/Drug Abuse Grants component on                                                            
page 20, lines 27 and 31.                                                                                                       
                                                                                                                                
Senator   Hoffman   noted  the   budget  subcommittee   recommended                                                             
transferring  these funds  to another "worthy"  program. He  read an                                                            
explanatory statement into the record as follows.                                                                               
                                                                                                                                
     This  is a  general fund  reduction  of funds  available to  be                                                            
     granted  to substance abuse treatment  and prevention  services                                                            
     in Alaska.                                                                                                                 
                                                                                                                                
     The  Knowles  Administration   had  proposed  $1.8  million  to                                                            
     increase  related to substance  abuse treatment and  prevention                                                            
     [sic]. The  impacts of not funding each of those  proposals are                                                            
     separately  discussed in this  impact statement. However,  this                                                            
     is a reduction  ($700,000) from the base funding  now available                                                            
     for  grants  and  has some  large  impacts  on  the  Division's                                                            
     ability to fund existing services.                                                                                         
                                                                                                                                
     We estimate  the likely impact in terms of beds  lost during FY                                                            
     02 to be:                                                                                                                  
     ·    Eliminate 5 detoxification beds                                                                                       
     ·    Eliminate   19  co-ed,  8  woman  only  and  2  adolescent                                                            
          intermediate care beds                                                                                                
     ·    Eliminate 8 adult and 2 adolescent long-term care beds                                                                
     ·    The  reductions in  outpatient capacity  are difficult  to                                                            
          calculate by will be significant                                                                                      
                                                                                                                                
     Substance  abuse treatment is  also a program that works.  At a                                                            
     time  when the state  is estimating that  the lifetime  cost of                                                            
     one Fetal  Alcohol Syndrome (FAS)  child is a million  dollars,                                                            
     eliminating funds  for alcohol treatment and prevention seems a                                                            
     contrary   approach  to  FAS   prevention.  FAS  is   the  only                                                            
     preventable birth defect. FAS is 100% preventable.                                                                         
                                                                                                                                
Senator Green  pointed out that the  funding for this increment  was                                                            
transferred to  the Infant Learning Program, which  she said has had                                                            
financial difficulty because  the funding allocated in FY 01 was not                                                            
provided. She  noted the connection  between drug and alcohol  abuse                                                            
and infant  learning stressing  it is therefore  appropriate  to use                                                            
these fund  for the infant  learning program.  She also pointed  out                                                            
$700,000  in federal  grant  funds remains  available  for drug  and                                                            
alcohol abuse programs.                                                                                                         
                                                                                                                                
Senator  Green then  spoke  to Medicaid  payments  made to  alcohol-                                                            
related grant recipients.                                                                                                       
                                                                                                                                
Senator Hoffman  responded that the  infant learning program  should                                                            
not  be  funded  at  the  expense  of  this  program.  In  fact,  he                                                            
predicted,  it could  actually  place an  additional  burden on  the                                                            
infant  learning  program as  a result  of  alcohol  and drug  abuse                                                            
problems with infants.                                                                                                          
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS  #8: This  amendment  adds  $1,010,500  general funds  for  the                                                            
Alcohol and Drug  Abuse Services BRU, Alcohol and  Drug Abuse Grants                                                            
component on page 20, lines 27, 28 and 31.                                                                                      
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The demand  for alcohol treatment  for youth currently  exceeds                                                            
     the  availability.  Youth residential  treatment  is  available                                                            
     only in Anchorage,  Fairbanks and Sitka and all  providers have                                                            
     wait lists.   Note there are no facilities in  rural Alaska. In                                                            
     1999,  more than 2,200 citations  were issued for minors  under                                                            
     the age of 18 consuming  alcohol according to court records. We                                                            
     need to  help these youth before  the problems are compounded.                                                             
     This  funding will  be utilized  to provide  grant funding  for                                                            
     approximately   22  youth   outpatient   and  continuing   care                                                            
     counselors  statewide. This is a much-needed  expansion and can                                                            
     be viewed as a preventive health care move.                                                                                
                                                                                                                                
Senator Hoffman moved for adoption of the amendment.                                                                            
                                                                                                                                
                                                                                                                                
SFC 01 # 66, Side B 04:25 PM                                                                                                    
                                                                                                                                
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS  #9: This  amendment  adds  $1,366,400  general funds  for  the                                                            
Alcohol and Drug  Abuse Services BRU, Alcohol Safety  Action Program                                                            
(ASAP) component on page 20, lines 27, 29 and 30.                                                                               
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
H&SS  #10: This  amendment  adds $1,500,000  general  funds for  the                                                            
Alcohol and Drug Abuse  BRU, Alcohol and Drug Abuse Grants component                                                            
on page 20, lines 27 and 31.                                                                                                    
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
H&SS #11: This  amendment adds $2  million for the Alcohol  and Drug                                                            
Abuse Services BRU, Alcohol  and Drug Abuse Grants component on page                                                            
20, lines 27 and 31.                                                                                                            
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The intent of this  increment is to eliminate the wait list for                                                            
     subsistence  abuse  treatment   by increasing   outpatient  and                                                            
     residential  treatment  capacity  with a specific  emphasis  on                                                            
     individuals  involved  in  the  criminal  justice  system.  The                                                            
     current need  and demand for treatment far exceeds  the current                                                            
     treatment  capacity.  Approximately  $800,000 will  be used  to                                                            
     increase outpatient  treatment capacity by adding 18 outpatient                                                            
     counselors   within   grantee   agencies    and  approximately                                                             
     $1,200,000  would increase  residential  treatment capacity  by                                                            
     fully funding 54 treatment beds.                                                                                           
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward and Co-Chair Donley                                                                                         
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS #12: This amendment adds $394,500 general funds for the                                                                    
Community Mental Health Grants BRU, Services to Chronically                                                                     
Mentally Ill component on page 21, lines 6, 10 and 11.                                                                          
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Donley objected.                                                                                                       
                                                                                                                                
Senator Hoffman read an explanatory statement into the record as                                                                
follows.                                                                                                                        
                                                                                                                                
     Impact:  The transfer  of designated  BRU grant  funds for  the                                                            
     public   health  component   of  5   current  designated   BRUs                                                            
     (Maniilaq, Norton  Sound, Southeast Alaska Regional Health Care                                                            
     (SEARHC),  Tanana  Chiefs  Council  (TCC) and  Yukon  Kuskokwim                                                            
     Health   Care  (YKHC))  to  Community   Health  Grants   budget                                                            
     component results  in an 8% reduction or $359,400 to the entire                                                            
     community health grant program.                                                                                            
     The grant  funds support a number of public health  programs as                                                            
     listed  below that  would be  impacted by  this reduction.  The                                                            
     division  will have to re-evaluate  the amount that  they award                                                            
     to each  program and area of  the state to minimize  the impact                                                            
     overall.                                                                                                                   
     Emergency  Medical  Services:  The Emergency  Medical  Services                                                            
     grant   programs  provide   important   functions,   including:                                                            
     providing  high quality and low  cost training; assisting  with                                                            
     the   certification   and   t4esting   of   Emergency   Medical                                                            
     Technicians;  coordinating  EMS  resources;  and improving  the                                                            
     availability  of safe and efficient emergency  medical care and                                                            
     transportation.   The  programs  provide  essential   emergency                                                            
      medical training to Community Health Aides and others.                                                                    
     Training  and  Supervision:   These  grant  funds  support  the                                                            
     training  and supervision  of over 500  community health  aides                                                            
     (CHA) and community  health practitioners (CHP) statewide. This                                                            
     reduction  could result  in a  yearly elimination  of over  100                                                            
     training  courses and over 1,000  supervisory contracts,  which                                                            
     could  clearly affect the expertise  of CHA/Ps and the  quality                                                            
     of care provided to patients in rural Alaska.                                                                              
     Health Clinics: Funds  available to support the personnel costs                                                            
     of mid-level  practitioners providing  medical services  in the                                                            
     rural villages will be reduced.                                                                                            
     Public  Health Nurses:  An 8%  reduction to  the public  health                                                            
     nursing programs  will result in a significant  decrease in PHN                                                            
     workforce  capacity  to provide  local public  health  services                                                            
     throughout  the  state. In  addition  to the  Norton Sound  and                                                            
     Maniilaq BRUs, the  Division of Public Health awards grants for                                                            
     Public Health Nursing  to the Municipality of Anchorage and the                                                            
     North Slope Borough.  The division will have to re-evaluate the                                                            
     amount  that they award to each  area of the state to  minimize                                                            
     the impact overall.                                                                                                        
     Additionally,  the  following  two  programs  currently  funded                                                            
     through  the  designated  BRUs may  not be  able  to be  funded                                                            
     through  the  competitive  bid process  through  the  Community                                                            
     Health Grants component.                                                                                                   
     Pre-maternal  Homes:  The result  of the  funding transfer  and                                                            
     reduction  would be  the discontinuation  of  the Maniilaq  and                                                            
     Norton  Sound prematernal homes.  Prematernal home funding  was                                                            
     discontinued  in  the  state  approximately  eight  years  ago,                                                            
     except in these BRUs.                                                                                                      
     Eye  Care:  The only  eye  care programs  statewide  are  those                                                            
     supported  with  state  BRU  funds  provide  for comprehensive                                                             
     vision  services  in  the Norton  Sound  and  Maniilaq  regions                                                            
     [sic]. These services may be eliminated.                                                                                   
                                                                                                                                
Senator Hoffman asserted this item has widespread support as shown                                                              
during the public testimony hearings.                                                                                           
                                                                                                                                
Senator Green asked how this amendment relates to H&SS #16, which                                                               
relates to Community Health Grants.                                                                                             
                                                                                                                                
AT EASE 4:32 PM / 4:33 PM                                                                                                       
                                                                                                                                
It was established that Senator Hoffman's comments pertain to H&SS                                                              
#16 rather then H&SS #12. He then addressed comments to H&SS #12                                                                
and read an explanatory statement into the record as follows.                                                                   
                                                                                                                                
     Impact:  The  CMH/API  Replacement  Project  is  enhancing  the                                                            
     capability   of  private  community   providers  to   meet  the                                                            
     challenging  needs  of people  with severe  and chronic  mental                                                            
     illness who would  otherwise require acute or long-term care at                                                            
     the  Alaska  Psychiatric  Institute  (API).  This  fund  source                                                            
     switch  request replaces  with  GF/MH the  federal funding  for                                                            
     deinstitutionalizing   six  long-term  residents   of  API  and                                                            
     reducing the size of the Katmai unit from 25 to 20 beds.                                                                   
     In  the fall  of 1999  and spring  of 2000,  six long-term  API                                                            
     residents  transitioned  to community-based  residential  care.                                                            
     Five  of these former  patients  now live in  a triplex  with a                                                            
     full  complement  of  support services  and  one  resides in  a                                                            
     foster care  home. These individuals had lived  at API from two                                                            
     to  18  years prior  to  being  placed in  the  community,  not                                                            
     because they required  hospital care, but because there were no                                                            
     other options  available for meeting their challenging  day-to-                                                            
     day needs.                                                                                                                 
     These  services have  been funding  since 1999  with a  federal                                                            
     grant. The plan has  been to transition to state general funds.                                                            
     The  Department of  Health and  Social Services  continues  its                                                            
     commitment  to improving  community mental  health services  as                                                            
     part   of  the  three-pronged   Community   Mental   Health/API                                                            
     Replacement Project.  Major partners in this effort include the                                                            
     Alaska  Mental Health  Board, the Alaska  Mental Health  Trust,                                                            
     the  Department  of  Health and  Social  Services  Division  of                                                            
     Mental  Health and  Developmental  Disabilities,  and API.  The                                                            
     three central components of this effort are:                                                                               
          ·     Improving community mental health by supporting the                                                             
                provision of private treatment alternatives to API                                                              
                hospitalization                                                                                                 
          ·     Replacing the API building                                                                                      
          ·     Enhancing the quality of care at API                                                                            
     Funding  of  this increment  is  essential to  maintaining  the                                                            
     community's support  of the entire CMH/API Replacement Project.                                                            
     Community support,  vital to this success of this effort [sic],                                                            
     hinges  on  the  State's  commitment  to on  going  funding  of                                                            
     community-based  services rather  than relying on time-limited                                                             
     funds, such as SAMHSA grants.                                                                                              
     The short-term  impact in not funding this increase  is that we                                                            
     will be  required to make an  amendment to our federal  funding                                                            
     application  for  FY 02  that has  already been  submitted.  In                                                            
     making  this amendment,  we will  need to  decrease some  other                                                            
     vital  service that is  part of this  project. In our  planning                                                            
     for this project,  having the funds for this project as general                                                            
     funds  allowed  for  some  additional  community  based  direct                                                            
     services  to  be  provided.  For FY  02,  the  revised  federal                                                            
     spending  plan will result  in fewer  funds for such  community                                                            
     services  as enhanced  detox,  crisis/respite,  dual  diagnosis                                                            
     treatment, supported  housing, and other vital services. All of                                                            
     this has  a direct impact on meeting the goals  of this project                                                            
     as noted above.                                                                                                            
     The  long-term  impact is  that  the program  will  have to  be                                                            
     closed after  the federal funds terminate in  FY 03. An attempt                                                            
     will  be made to absorb  the six individuals  into the  general                                                            
     funded  services,  but  due to  the  severe  impairments  these                                                            
     individuals   have,  it   is  unclear   whether  this   can  be                                                            
     accomplished.                                                                                                              
                                                                                                                                
Senator Green shared that in discussions with the department she                                                                
learned that in one year, funding for the program would be replaced                                                             
with federal funds.                                                                                                             
                                                                                                                                
Senator Hoffman requested the department address the issue.                                                                     
                                                                                                                                
JANET  CLARKE,  Director,   Division  of  Administrative   Services,                                                            
Department  of Health and Social Services  testified that  currently                                                            
the program  is funded with a federal  grant and that the  intent of                                                            
the department,  the Mental  Health Trust  Authority (MHTA)  and the                                                            
Alaska Mental Health Board  (AMHB) is to utilize general fund-mental                                                            
health funds  in FY 02 as part of  a long-range plan. She  cautioned                                                            
that without  the general  funds the application  for federal  funds                                                            
would  have to  be  altered  and other  services  would  have to  be                                                            
reduced.                                                                                                                        
                                                                                                                                
Senator  Hoffman asked  if  federal funds  were available  for  this                                                            
purpose for one more year.                                                                                                      
                                                                                                                                
Ms. Clarke responded  that the grant application,  which had already                                                            
been submitted, would have  to be amended since this program was not                                                            
intended  to  be a  part  of  the expenditures   of the  grant.  She                                                            
stressed  that it  is uncertain  how the federal  agency  overseeing                                                            
this grant would  address the matter. She told of  the API residents                                                            
impacted, and  the importance of the  program. She could  not answer                                                            
Senator Hoffman's question yes or no.                                                                                           
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward and Co-Chair Donley                                                                                                        
                                                                                                                                
ABSENT: Senator Wilken and Co-Chair Kelly                                                                                       
                                                                                                                                
The motion FAILED (2-5-2)                                                                                                       
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
H&SS #13: This  amendment adds $235,000 general funds  for the State                                                            
Health Services  BRU, Public Health  Laboratories component  on page                                                            
20, lines 5 and 25.                                                                                                             
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This increment  for this Back  to Basics initiative  was funded                                                            
     at  30%  of  the  requested  level.  The communicable   disease                                                            
     problems  addressed in the Back to Basics programs  such as TB,                                                            
     HIV, Hepatitis  A/B/C, sexually transmitted diseases,  and loss                                                            
     in  the immunization  coverage remain  threats to the  public's                                                            
     health.  Failure to fully  fund the  Back to Basics  initiative                                                            
     will result  in the elimination of one proposed  microbiologist                                                            
     position and a 50%  reduction in needed commodities. Failure to                                                            
     provide adequate  professional staff significantly  hinders the                                                            
     timely  diagnosis of such diseases  as tuberculosis,  hepatitis                                                            
     and  sexually transmitted  diseases,  all of  which are on  the                                                            
     rise  in Alaska. Current  resource [sic]  are inadequate  to do                                                            
     the epidemiological  and laboratory  fieldwork that  is needed.                                                            
     This increment will  help control infectious disease in Alaska.                                                            
                                                                                                                                
Senator Olson spoke in  support of the amendment on behalf of public                                                            
health services.  He stressed that this service is  constitutionally                                                            
mandated.  He talked  of the  increases in  the number  of cases  of                                                            
meningitis and tuberculosis.                                                                                                    
                                                                                                                                
Senator  Green  noted the  $700,000  overall  funding  increase  for                                                            
public health.                                                                                                                  
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Austerman and Co-Chair Donley                                                                                                   
                                                                                                                                
ABSENT: Senator Wilken and Co-Chair Kelly                                                                                       
                                                                                                                                
The motion FAILED (2-5-2)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS #14: This  amendment adds $188,600 Tobacco Settlement  Receipts                                                            
for the State  Health Services BRU,  Tobacco Prevention and  Control                                                            
component on page 20, lines 5 and 26.                                                                                           
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
H&SS  #15:  This amendment  adds  $1.6  million  Tobacco  Settlement                                                            
Receipts for the  State Health Services BRU, Tobacco  Prevention and                                                            
Control component on page 20, lines 5 and 26.                                                                                   
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The $1,600,000  in tobacco settlement funds (a  type of general                                                            
     funds)  for Tobacco  Prevention and  Control Enhancement  would                                                            
     provide funding  for community-based grants for  three specific                                                            
     areas:   community-based   programming,    school-based   youth                                                            
     programs   and  cessation  services.   The  Governor's   budget                                                            
     includes  $1.4 million for Tobacco  Prevention and Control  and                                                            
     this amendment  would bring the total resources  to $3 million.                                                            
                                                                                                                                
MICHELLE   TOOHEY,   Public   Advocacy   Manager,   American   Heart                                                            
Association,  pointed to the "tremendous  successes" in states  with                                                            
comprehensive  sustained   tobacco  control  programs,  such  as  in                                                            
California and  Massachusetts. She reported smoking  consumption has                                                            
been reduced by over 30  percent. She stated that this funding would                                                            
help the Alaska program expand and achieve measurable success.                                                                  
                                                                                                                                
Senator Leman  appreciated the intent  of the amendment,  but stated                                                            
that  he would  not support  such  a large  increment  at one  time,                                                            
suggesting the increase was "too much too fast."                                                                                
                                                                                                                                
Senator  Hoffman requested  the witness respond  to Senator  Leman's                                                            
statement.                                                                                                                      
                                                                                                                                
Ms. Toohey  pointed  out an infrastructure  and  procedures were  in                                                            
place for  undertaking this  effort and that  the programs  in other                                                            
states are proving successful.                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green and Co-Chair Donley                                                                                    
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
H&SS #16: This  amendment adds $359,400 general funds  for the State                                                            
Health Services  BRU, Community Health Grants component  on page 20,                                                            
lines 5 and 20.                                                                                                                 
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
H&SS #17: This  amendment adds $439,000 general funds  for the State                                                            
Health Services BRU, Epidemiology  component on page 20, lines 5 and                                                            
13.                                                                                                                             
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
H&SS #18: This  amendment adds $852,200 general funds  for the State                                                            
Health Service BRU, Nursing component on page 20, lines 5 and 6.                                                                
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The increment for  this Back to Basics initiative was funded at                                                            
     30% of the  requested level. The communicable  disease problems                                                            
     addressed  in the  Back  to Basics  programs such  as TB,  HIV,                                                            
     Hepatitis  A/B/C, sexually  transmitted  diseases, and  loss in                                                            
     immunization  coverage remain  threats to the public's  health.                                                            
     Without  full  funding,  sine  [sic?] areas  will  continue  to                                                            
     experience  disease problems  that could have been identified,                                                             
     treated  and controlled  with adequate  nursing personnel.  The                                                            
     original proposal  for 11 nurses and 4 support staff was modest                                                            
     in  terms  of  the  work  to be  done  in  our  state.  Current                                                            
     resources  are inadequate to meet the demand  and an increasing                                                            
     population.  The nursing  component  should be  funded to  help                                                            
     prevent and contain infectious disease in the state.                                                                       
                                                                                                                                
Senator Green pointed out  that the funding for nursing services was                                                            
increased nearly $1.8 million from FY 01.                                                                                       
                                                                                                                                
Senator  Hoffman  requested  the department   explain how  the  $1.8                                                            
million relates to the amount requested in this amendment.                                                                      
                                                                                                                                
Ms.  Clarke responded  that  the  primary  funding increase  in  the                                                            
nursing component  is for the salary increase granted  to the public                                                            
health nurse  positions. She affirmed  the Back to Basics  component                                                            
remains funded at 30 percent of the governor's requested amount.                                                                
                                                                                                                                
Ms. Clark shared  that the areas with  major disease outbreaks  have                                                            
been identified  as  Anchorage, Mat-Su,  Kenai,  Bristol Bay,  Delta                                                            
Junction,  Valdez,   the  Interior  region,  and  Aleutian   Islands                                                            
communities.   She  detailed   there  were   several  outbreaks   of                                                            
tuberculosis  in recent years  in Anchorage,  the Seward prison  and                                                            
the Norton Sound region.                                                                                                        
                                                                                                                                
[Note: No formal motion was made to adopt the amendment.]                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward and Co-Chair Donley                                                                                         
                                                                                                                                
ABSENT: Co-Chair Kelly                                                                                                          
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
H&SS  #19:  This amendment   adds $564,500  general  funds  for  the                                                            
Juvenile  Justice  BRU, Probation  Services  component  on page  19,                                                            
lines 21 and 31.                                                                                                                
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     Impact:  The division  will be  unable to  provide services  to                                                            
     victims  of  juvenile  crime  and  will  increasingly  fail  to                                                            
     provide    them   with   opportunities   to   exercise    their                                                            
     constitutional  and  statutory  rights  to participate  in  the                                                            
     judicial  and restitution  processes.  The division would  have                                                            
     located  nine additional juvenile  probation officers  in those                                                            
     areas  with  the highest  caseload  and  programmatic  need  as                                                            
     follows:  Anchorage  (2), Bethel,  Barrow,  Dillingham,  Kenai,                                                            
     Ketchikan, Kodiak,  and Valdez. This was to have been the first                                                            
     year of a  three year initiative to intervene  earlier and more                                                            
     effectively  with juveniles before they penetrate  further into                                                            
     the  formal juvenile  justice  system  or, in  other words,  to                                                            
     prevent  juveniles from entering  one of the state's  six youth                                                            
     facilities.                                                                                                                
     If offense referrals  continue at current levels or increase by                                                            
     any amount at our  rural offices, the delinquency response will                                                            
     be  limited  to  only the  most  serious  felony  cases.  Early                                                            
     intervention   and  effective  diversion  activities   will  be                                                            
     reduced,  eliminated or not initiated due to  continued lack of                                                            
     resources.   There  will  be   fewer  consequences   for  young                                                            
     offenders  who  commit   minor  crimes;  this,  in  turn,  will                                                            
     increase  the likelihood that juveniles will  offend due to the                                                            
     lack of accountability for their inappropriate behavior.                                                                   
                                                                                                                                
Senator Green commented  $1.6 million has been allocated for the new                                                            
Ketchikan   and  Mat-Su   juvenile  detention   facilities   and  an                                                            
additional  $150,000  has been  allocated  for  increased  probation                                                            
services. She agreed with the merits of the probation system.                                                                   
                                                                                                                                
Senator Hoffman  pointed out that Senator Green did  not mention any                                                            
rural communities as having received additional funds.                                                                          
                                                                                                                                
Co-Chair  Donley   commented  on   the  "tremendous"  progress   the                                                            
legislature  has  made over  the past  three  years in  the area  of                                                            
funding for juvenile justice  services, plus the "massive" increases                                                            
contained  in the FY 02 budget.  He pointed  out that this  area has                                                            
experienced  a significant  growth in  the number  of personnel.  He                                                            
acquiesced continued efforts are necessary.                                                                                     
                                                                                                                                
Senator Hoffman  agreed but  noted that the  funding increases  were                                                            
primarily directed  to urban areas and suggested fair  and equitable                                                            
increases and decreases between urban and rural areas.                                                                          
                                                                                                                                
Co-Chair Donley noted that  there had been only two juvenile justice                                                            
facilities in the state until recently.                                                                                         
                                                                                                                                
[Note: No formal motion was made to adopt the amendment.]                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Co-Chair Donley and Co-Chair Kelly                                                                                      
                                                                                                                                
ABSENT: Senator Austerman                                                                                                       
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS  #20: This  amendment  adds $1,205,100  general  funds for  the                                                            
Public Assistance  BRU, Adult  Public Assistance  component  on page                                                            
17, lines 19 and 22.                                                                                                            
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     The  Adult  Public  Assistance   (APA)  program  provides  cash                                                            
     assistance  (approximately  $300/month)  to needy aged,  blind,                                                            
     and  disabled persons  to cover basic  living expenses  such as                                                            
     shelter  clothing and food. The  elderly and disabled  poor are                                                            
     the most vulnerable citizens.                                                                                              
     The  Governor's Budget  requested that  the estimated  caseload                                                            
     would  continue to  grow by about  4.7%, which  is the  average                                                            
     growth  for the program for the  last several years,  to 14,617                                                            
     persons  per month in FY 02.  The Senate Subcommittee  funds an                                                            
     APA population increase of less than 2%.                                                                                   
     APA is a  cash entitlement program and the department  does not                                                            
     have  discretion to reduce  benefit amounts,  of the funds  are                                                            
     insufficient  to meet the need this could cause  a supplemental                                                            
     funding situation.                                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator                                                                    
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
H&SS #21: This amendment adds $148,500 general funds for the                                                                    
Purchased Services BRU, Family Preservation component on page 18,                                                               
lines 28 and 29.                                                                                                                
                                                                                                                                
This amendment was NOT OFFERED to defer to H&SS #27.                                                                            
                                                                                                                                
H&SS #22: This amendment adds $1,828,100 general funds for the                                                                  
Purchased Services BRU, Subsidized Adoption and Guardianship                                                                    
component on page 18, line 28 and page 19, lines 4 and 5.                                                                       
                                                                                                                                
Senator Hoffman moved for adoption and read an explanatory                                                                      
statement into the record as follows.                                                                                           
                                                                                                                                
     Impact:  The  number  of  children  provided   permanent  homes                                                            
     through the  Subsidized Adoptions and Guardianship  program has                                                            
     increased  significantly over  the past several years.  From FY                                                            
     92  to FY 00  the number of  children removed  from the  Foster                                                            
     Care system and placed  in a permanent home increased 294% from                                                            
     228 to 1,332.                                                                                                              
     This  caseload increase  is in large  part attributable  to the                                                            
     success  of  State  permanency  planning  initiatives,  Project                                                            
     SUCCEED   and  the  Balloon   Project.  The  Balloon   Project,                                                            
     implemented  in July  1999, provides funds  to the Division  of                                                            
     Family and  Youth Services, the Attorney General's  office, the                                                            
     Public  Defender Agency, and  the Office of Public Advocacy  to                                                            
     increase  the state's ability to comply with  state and federal                                                            
     permanency planning  mandates and to focus on legal proceedings                                                            
     needed  for  children  who have  been  in custody  the  longest                                                            
     period of time.                                                                                                            
     The proposed reduction  of $1,069,900 general funds from the FY                                                            
     02 caseload growth  increment and not approving the transfer of                                                            
     $758,200 from Foster  Care Base Rate to Subsidized Adoption and                                                            
     Guardianship   will   result   in  insufficient   funding   for                                                            
     approximately 235  children. This represents 12% of the revised                                                            
     FY 02 projected caseload. This could potentially result in the                                                             
     need for a FY 02 supplemental.                                                                                             
                                                                                                                                
Senator Green listed increases  to this component of $1.3 million in                                                            
addition to  a $1.3 million increase  to the Balloon Project,  which                                                            
she pointed out is above the amount requested by the governor.                                                                  
                                                                                                                                
Senator  Hoffman asked  the department  the difference  between  the                                                            
amount  requested  for  the  Subsidized  Adoption  and Guardianship                                                             
program and the $1.3 million allocated to the Balloon Project.                                                                  
                                                                                                                                
Ms.  Clarke explained  that  of the  $1.3 million  increase  Senator                                                            
Green  referred  to, $1  million  is to  replace  federal  Temporary                                                            
Assistance  for Needy Families (TANF)  funds that could not  be used                                                            
for  funding  subsidized  adoption  programs.  She noted  a  similar                                                            
funding   source  change   request  is  contained   in  the   FY  01                                                            
Supplemental budget legislation.                                                                                                
                                                                                                                                
Ms Clarke reiterated  previous testimony  given at earlier  hearings                                                            
attesting   to  the   success  of   the  Subsidized   Adoption   and                                                            
Guardianship  program.  She emphasized  the growth  rate for  foster                                                            
care cases is less than  zero. She attributed this to the success of                                                            
the Balloon Project.                                                                                                            
                                                                                                                                
Ms. Clarke  expressed the department  would continue to operate  the                                                            
program and  would not keep  children in foster  care. As a  result,                                                            
she warned,  this item would be included  in the FY 02 Supplemental                                                             
budget request as well.                                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Co-Chair Donley and Co-Chair Kelly                                                                                       
                                                                                                                                
ABSENT: Senator Leman                                                                                                           
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS  #23: This  amendment  adds $1,564,700  general  funds for  the                                                            
Medical  Assistance BRU,  Medicaid  Services component  on page  17,                                                            
line 31 and page 18, line 3.                                                                                                    
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     The Medicaid  Services FY 02 funding request  is base on a low-                                                            
     case  scenario. A  general fund  reduction  of $1,567,700  will                                                            
     result in inadequate  spending authority to pay service claims.                                                            
     Medicaid payments  to providers will be affected in the absence                                                            
     of a timely FY 02 supplemental appropriation.                                                                              
     The  FY 02  projections that  formed  the basis  for the FY  02                                                            
     budget  request  incorporated   the  maximum  rate  of  federal                                                            
     funding   participation.  Under   this  low-case  scenario,   a                                                            
     $1,567,700  cut to  general funds  means a loss  of as  much as                                                            
     $4,645,000 total funds to the Medicaid program.                                                                            
     The  foreseeable  impact  of  any  cut to  general  fund  match                                                            
     requested  by the Medicaid  program is  that providers  may not                                                            
     receive   timely  payment   for  services   rendered  and   the                                                            
     department  could be forced to request supplemental  funding in                                                            
     FY  02.  The department  has  no  plans  to reduce  service  or                                                            
     eligible groups because of this reduction.                                                                                 
                                                                                                                                
Senator Green  emphasized the appropriation  for this increment  "at                                                            
best" is  an estimate  of the actual  amount needed  to operate  the                                                            
Medicaid program.  She spoke of the budget subcommittee's  intent to                                                            
monitor expenditures throughout the upcoming fiscal year.                                                                       
                                                                                                                                
Senator Hoffman WITHDREW his motion to adopt the amendment to defer                                                             
to the FY 02 Supplemental budget request.                                                                                       
                                                                                                                                
H&SS #24: This amendment adds a new bill section to read as                                                                     
follows.                                                                                                                        
                                                                                                                                
          Sec. __. FEDERAL MEDICAL ASSISTANCE PERCENTAGE. If the                                                                
     estimated federal  receipts for medical assistance appropriated                                                            
     in  sec. 1  of this  Act are below  59.8  percent for  Medicaid                                                            
     services  during  the fiscal  year ending  June  30, 2002,  the                                                            
     amount  of the shortfall  in federal  receipts is appropriated                                                             
     from the  general fund to the  Department of Health  and Social                                                            
     Services for Medicaid services.                                                                                            
                                                                                                                                
Accompanying explanatory reads as follows.                                                                                      
                                                                                                                                
     This  section provides  general funds  to replace lost  federal                                                            
     funds  if  the  federal  participation   rate  Medicaid  (FMAP)                                                            
     service  falls  below 59.8  percent  during FY2002  budget  was                                                            
     based on 59.8 percent.  Under current federal statutes Alaska's                                                            
     FMAP  rate will  drop to  57.38 percent,  a  reduction of  2.42                                                            
     percent  or a loss of approximately  $10 million general  funds                                                            
     from  what  is currently  budgeted.  This  drop will  occur  if                                                            
     Congress  does  not  extend the  one-year  negotiated  rate  to                                                            
     future years and will go into effect October 1, 2001.                                                                      
                                                                                                                                
Senator Hoffman moved for adoption and read the explanatory                                                                     
statement into the record.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator                                                               
Green, Co-Chair Donley and Co-Chair Kelly                                                                                       
                                                                                                                                
ABSENT: Senator Leman                                                                                                           
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS #25: This amendment removes the following amounts from BRU and                                                             
components as shown.                                                                                                            
                                                                                                                                
     $1,465,400 general funds                                                                                                   
     Purchased Services BRU                                                                                                     
     Family Preservation component                                                                                              
     Page 18, lines 28 and 29                                                                                                   
                                                                                                                                
     $3,538,300 general funds                                                                                                   
     State Health Services BRU                                                                                                  
     Community Health Grants component                                                                                          
     Page 20, lines 6 and 20                                                                                                    
                                                                                                                                
     $3,213,200 general funds                                                                                                   
     Alcohol and Drug Abuse Services BRU                                                                                        
     Alcohol/Drug Abuse Grants component                                                                                        
     Page 20, lines 27 and 31                                                                                                   
                                                                                                                                
     $2,319,800 general funds                                                                                                   
     Community Mental Health Grants BRU                                                                                         
     General Community Mental Health Grants                                                                                     
     Page 21, lines 6 through 8                                                                                                 
                                                                                                                                
This amendment adds the following amounts for BRU and components                                                                
not included in this committee substitute but present in CS HB 103                                                              
(FIN)(brf sup maj fld S)                                                                                                        
                                                                                                                                
     $3,045,30 general funds                                                                                                    
     Maniilaq BRU                                                                                                               
     Social Services component                                                                                                  
     Public Health Services component                                                                                           
     Alcohol  and Drug Abuse component                                                                                          
      Mental Health and Developmental Disabilities component                                                                    
                                                                                                                                
     $2,357,200 general funds                                                                                                   
     Norton Sound BRU                                                                                                           
     Social Services component                                                                                                  
     Public  Health Services component                                                                                          
     Alcohol  and Drug Abuse component                                                                                          
      Mental Health and Developmental Disabilities component                                                                    
                                                                                                                                
     $565,700 general funds                                                                                                     
     Southeast Alaska Regional Health Consortium BRU                                                                            
     Social Services component                                                                                                  
     Public  Health Services component                                                                                          
     Alcohol  and Drug Abuse component                                                                                          
     Mental  Health Services component                                                                                          
                                                                                                                                
     $372,700 general funds                                                                                                     
     Kawarek BRU                                                                                                                
     Social Services component                                                                                                  
     Public  Health Services component                                                                                          
     Alcohol  and Drug Abuse component                                                                                          
     Mental  Health Services component                                                                                          
                                                                                                                                
     $1,255,100 general funds                                                                                                   
     Tanana Chiefs Conference BRU                                                                                               
     Social Services component                                                                                                  
     Public  Health Services component                                                                                          
     Alcohol  and Drug Abuse component                                                                                          
     Mental  Health Services component                                                                                          
                                                                                                                                
     $198,500 general funds                                                                                                     
     Tlingit-Haida BRU                                                                                                          
     Social Services component                                                                                                  
     Alcohol  and Drug Abuse component                                                                                          
                                                                                                                                
     $2,742,200 general funds                                                                                                   
     Yukon-Kuskokwim Health Corporation BRU                                                                                     
     Public  Health Services component                                                                                          
     Alcohol  and Drug Abuse component                                                                                          
     Mental  Health Services component                                                                                          
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     These adjustments would restore all of the Designated Grants                                                               
     to rural health providers that were eliminated in the Senate                                                               
     Subcommittee action.                                                                                                       
     The Designated BRUs primary function is to provide human                                                                   
     services  in  rural  Alaska.  The  cuts in  these  areas  would                                                            
     primarily  affect rural communities  that are in need  of these                                                            
     services  and  do not  have access  to other  providers.  These                                                            
     direct  grants  provide  an  efficient   mechanism  to  provide                                                            
     service in these regions.                                                                                                  
     All  of these grants  are for direct  public health,  substance                                                            
     abuse,  mental  health,  social services  or  child  protection                                                            
     services  in their  respective  regions. These  grant  programs                                                            
     have existed  in the state budget for almost  20 years and were                                                            
     established because  of special circumstances or because of the                                                            
     lack of competition  in these regions. The grantees function in                                                            
     place  of state employees in  these areas and provide  the most                                                            
     basic  services.  State  resources  to these  primarily  Native                                                            
     grantees  also  ensure  that  non-Natives  in the  region  have                                                            
     access to services.                                                                                                        
     Services  that  have been  provided  in these  regions  through                                                            
     designated   grants   include:  Emergency   Medical   Services,                                                            
     Community  Health Aide Training and supervision,  Public Health                                                            
     Nursing  Services, Pre-maternal  homes  in Maniilaq and  Norton                                                            
     Sound  regions, Eye care services,  Child Protection  services,                                                            
     Alcohol   and  Drug  Abuse  Services  and  Mental   Health  and                                                            
     Developmental Disabilities services.                                                                                       
     This amendment  would transfer  all of these grants  from other                                                            
     grant  programs  such  as  Alcohol  and Drug  Abuse  Grants  or                                                            
     General Community  Mental Health Grants back  to the designated                                                            
     grants.                                                                                                                    
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Senator  Hoffman pointed  out  that during  the two  days of  public                                                            
testimony  the Committee heard  relating to  this budget, this  item                                                            
received more  attention than any other, and that  no opposition was                                                            
voiced  on the  matter.  He  requested the  department  explain  the                                                            
program would be administered.                                                                                                  
                                                                                                                                
AT EASE 5:06 PM / 5:06 PM                                                                                                       
                                                                                                                                
Senator  Hoffman elaborated  asking  how the  Request for  Proposals                                                            
(RFP) would  be evaluated and how  the department would address  the                                                            
resulting reduction of services.                                                                                                
                                                                                                                                
Ms.  Clarke noted  the  information  was very  recent  and that  the                                                            
department has  not yet formulated a plan. She detailed  the process                                                            
that occurred  when the RFP  was issued and  the consolidated  grant                                                            
proposal submitted  by the grantees for "those activities  that have                                                            
been funded  in the  budget for  almost 20 years."  She stated  that                                                            
although  the  grant   process  would  have  to  be  expanded,   she                                                            
maintained  there  is  no  competition   for  these  providers.  She                                                            
stressed   these  providers   are  established   and  already   have                                                            
infrastructures in place.                                                                                                       
                                                                                                                                
Senator  Hoffman  added  that these  grantees  are  providing  basic                                                            
health care  services as required  by the constitution on  behalf of                                                            
the State of  Alaska. He asked if  a major reduction in services  to                                                            
rural areas is foreseen as a result of this amendment.                                                                          
                                                                                                                                
Ms. Clarke expressed the  department supports the amendment and that                                                            
the "designated  BRU grants provide an efficient means  of providing                                                            
those  services  out of  those  regions  where  there are  no  other                                                            
providers and  we would continue to support that."  She assured that                                                            
these regions of the state  would not be penalized without analysis.                                                            
                                                                                                                                
Senator Green  asked if designated  grant recipients participate  in                                                            
the competitive grant process for the community grants.                                                                         
                                                                                                                                
Ms. Clarke  replied they  could if additional  funds were  available                                                            
under new initiatives.                                                                                                          
                                                                                                                                
Senator Green  asked if all of the  providers were participating  in                                                            
the competitive grant process.                                                                                                  
                                                                                                                                
Ms. Clarke did not know if all were.                                                                                            
                                                                                                                                
Senator Green  understood all of the  providers participated  in the                                                            
competitive grant process currently.                                                                                            
                                                                                                                                
Senator Olson  reiterated Senator Hoffman's statement  regarding the                                                            
support voiced  during public testimony  for the designated  grants.                                                            
He  predicted  services   would  be  "sharply  curtailed"   if  this                                                            
amendment were not adopted.                                                                                                     
                                                                                                                                
Senator  Green referenced  a report  showing the  "great variety  of                                                            
funding   that  goes   to   every  one   of  these   public   health                                                            
corporations."  She opined,  "they are not  being held captive"  and                                                            
would "probably not suffer  one bit." However, she continued, "There                                                            
is great advantage  to everyone out there being under  a competitive                                                            
grant  process.  She found  the  argument  that patients  would  not                                                            
receive  services  "disingenuous"  given  the  ratio  of  the  funds                                                            
received  through the  grant process  to the  funds received  though                                                            
Medicare, in  addition to funds contributed  by third-party  payers,                                                            
the Indian  Health Service grants  and other direct federal  grants.                                                            
                                                                                                                                
Senator Hoffman did not  know of another program administered by the                                                            
state  that penalizes  the grantee  for receiving  additional  funds                                                            
from  a  different  source.  He  believed  this  should  instead  be                                                            
encouraged.  He  spoke  of a  conversation  he  had with  the  Chief                                                            
Executive Officer  of the Yukon-Kuskokwim  Health Corporation  where                                                            
he  learned patients  would  receive  a reduction  in  services.  He                                                            
warned  that other  communities  would also  suffer  a reduction  in                                                            
services.  He emphasized  that this  amendment  attempts to  restore                                                            
services  to a  rural region  and that  this budget  contains  block                                                            
grant reductions  to Anchorage or Fairbanks. He reiterated  that the                                                            
rural areas  should not be treated  differently than other  areas of                                                            
the state during times of increases or decreases.                                                                               
                                                                                                                                
AT EASE 5:15 PM / 5:18 PM                                                                                                       
                                                                                                                                
Senator Olson  stressed that although  he understood there  would be                                                            
some funding,  tuberculosis outbreaks are serious.  Because of this,                                                            
he remarked  the public health services  must be adequately  funded.                                                            
                                                                                                                                
Senator  Hoffman  referred  to the  figures  referenced  by  Senator                                                            
Green. He asserted the numbers are inaccurate.                                                                                  
                                                                                                                                
                                                                                                                                
SFC 01 # 67, Side A 05:20 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Senator Hoffman  continued  the state does  not provide services  to                                                            
rural  Alaska  because it  depends  on the  Native  corporations  to                                                            
provide such  services. He  asked if the  department concurred  with                                                            
this assumption.                                                                                                                
                                                                                                                                
Ms. Clarke  detailed that public health  nurses are state  employees                                                            
except in areas  served by a regional health corporation,  the North                                                            
Slope Borough  and the  Municipality of Anchorage.  In these  cases,                                                            
she  explained, grants  are  provided to  the corporation  or  local                                                            
government  to pay  the  cost of  public  health. She  stressed  the                                                            
corporations  and local governments  are acting as a state  agent in                                                            
providing public health nursing services.                                                                                       
                                                                                                                                
Co-Chair  Donley  listed the  per  capita  expenditures  of $194  in                                                            
Juneau, $132 in  Anchorage, and $171 in Fairbanks,  compared to over                                                            
$300 for  the remainder of  the state. This,  he said reflects  that                                                            
there is a  need, but does not support  the argument that  the state                                                            
is  unfair in  funding  rural areas  because  of the  higher  amount                                                            
appropriated for them.                                                                                                          
                                                                                                                                
Senator Hoffman disagreed.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS  #26: This  amendment  adds $1,500,000  federal  funds for  the                                                            
Purchased Services  BRU, Family Preservation  component on  page 18,                                                            
lines 28 and 29.                                                                                                                
                                                                                                                                
Senator  Green  moved  for  adoption  noting  this  is  a  technical                                                            
amendment relating  to a change in attorney positions  in the Office                                                            
of Public Advocacy  and should not be included in  the Department of                                                            
Health and Social Services budget.                                                                                              
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
AT EASE 5:24 PM / 7:48 PM                                                                                                       
                                                                                                                                
H&SS #27: This  amendment adds the  following amounts for  the noted                                                            
BRUs and components.                                                                                                            
                                                                                                                                
     $148,800 general funds                                                                                                     
     Purchased Services BRU                                                                                                     
     Family Preservation component                                                                                              
     Page 18, lines 28 and 29                                                                                                   
                                                                                                                                
     $359,400 general funds                                                                                                     
     State Health Services BRU                                                                                                  
     Community Health Grants component                                                                                          
     Page 20, lines 5 and 20                                                                                                    
                                                                                                                                
     $326,600 general funds                                                                                                     
     Alcohol and Drug Abuse Services BRU                                                                                        
     Drug and Alcohol Abuse Grants component                                                                                    
     Page 20, lines 27 and 31                                                                                                   
                                                                                                                                
     $4,400 general funds                                                                                                       
     Community Mental Health Grants BRU                                                                                         
     General Mental Health Grants component                                                                                     
     Page 21, lines 6 through 8                                                                                                 
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This amendment reverses all reductions made to grant programs                                                              
     after the transfer of funds from the designated BRUs.                                                                      
                                                                                                                                
Senator Green moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Donley stated  this amendment would restore funding for the                                                            
Community Health  grants and other  social service grants  to the FY                                                            
01 level.                                                                                                                       
                                                                                                                                
The amendment was ADOPTED without objections.                                                                                   
                                                                                                                                
AT EASE 7:49 PM / 7:50 PM                                                                                                       
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
ADM #1:  This amendment  adds $500,000  general  funds and  $800,000                                                            
SDPR  for   the  Public  Communications   Services  BRU,   Satellite                                                            
Infrastructure component on page 4, lines 12 and 16.                                                                            
                                                                                                                                
Co-Chair  Donley  AMENDED the  amendment,  changing  the amounts  to                                                            
$350,000 general funds and $350,000 SDPR.                                                                                       
                                                                                                                                
Co-Chair Kelly moved for adoption.                                                                                              
                                                                                                                                
Without objection the amended amendment was ADOPTED.                                                                            
                                                                                                                                
ADM #2:  This amendment adds  $185,000 general  funds for the  Legal                                                            
and Advocacy  Services BRU, Office  of Public Advocacy component  on                                                            
page 5, lines 24 and 15.  Accompanying explanatory language reads as                                                            
follows.                                                                                                                        
                                                                                                                                
     In  the Senate  Subcommittee on  the Department  of Health  and                                                            
     Social Services  the Child Protection Legal Assistance  BRU was                                                            
     zeroed  out. While these components  have been funded  in H&SS,                                                            
     the   funds  simply   pass  through   to   the  Department   of                                                            
     Administration.  The above amendment funds these  components in                                                            
     the  Department  of  Administration,  which  should  result  in                                                            
     better tracking of these budgets.                                                                                          
                                                                                                                                
Senator Green announced she would NOT OFFER this amendment.                                                                     
                                                                                                                                
ADM  #3:  This  amendment   adds  $50,000  general   funds  for  the                                                            
Centralized Administrative  Services BRU, Labor Agreements component                                                            
on page 2, lines 12, 13 and 21.                                                                                                 
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
ADM #4: This amendment  adds $13,500 general funds and $55,700 Iter-                                                            
Agency  Receipts  (I/A  Recpts.) for  the  Leases  Except  Anchorage                                                            
Division  of Motor  Vehicles Facilities  BRU,  Lease Administration                                                             
component on page 2, lines 27, 28 and 30.                                                                                       
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
ADM #5: This amendment  adds $1,900,000 general funds for the Leases                                                            
Except Anchorage  DMV Facilities  BRU, Leases  component on  page 2,                                                            
lines 27 through 29.                                                                                                            
                                                                                                                                
Senator  Hoffman moved for  adoption. He  stated that historically,                                                             
the  legislature   has  short-funded  the  leasing  components   and                                                            
addressed the remaining funds in supplemental budgets.                                                                          
                                                                                                                                
Senator Hoffman  WITHDREW his motion  to adopt the amendment  and it                                                            
was NOT RE-OFFERED.                                                                                                             
                                                                                                                                
ADM #6: This  amendment changes the  funding source of $255,000  I/A                                                            
Receipts to general  funds for the Legal and Advocacy  Services BRU,                                                            
Public Defender Agency component on page 5, lines 14 and 15.                                                                    
                                                                                                                                
Senator Hoffman  moved for adoption,  stating it relates  to ADM #2,                                                            
and read an explanatory statement into the record as follows.                                                                   
                                                                                                                                
     The  funding   for  these  interagency  receipts   was  in  the                                                            
     Department   of  Health   and  Social   Services  budget.   The                                                            
     Department  of Health and Social  Services budget subcommittee                                                             
     cut  these authorizations,  so without  this amendment  funding                                                            
     for  these services  will disappear.  The Department of  Health                                                            
     and Social Services  Senate Finance Subcommittee recommendation                                                            
     eliminates  this funding for the Department of  Administration.                                                            
     The interagency  receipts for  the Public Defender Agency  will                                                            
     enable  the agency to process  Child in Need of Aid  cases in a                                                            
     timely fashion.  Two full-time attorney positions  will have to                                                            
     be  eliminated.  Without the  interagency  receipts the  Public                                                            
     Defender  Agency  will  be unable  to  meet the  new  statutory                                                            
     deadlines  for processing these cases as well  as the increased                                                            
     filings  based  on  increased  Division  of  Family  and  Youth                                                            
     Services resources and zero tolerance policies.                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM #7:  This amendment adds  $466,400 general  funds for the  Legal                                                            
and Advocacy Services BRU,  Public Defender Agency component on page                                                            
5, lines 14 and 16.                                                                                                             
                                                                                                                                
Senator  Hoffman   moved  for  adoption   and  explained   the  same                                                            
justification for ADM #6  applies. He noted this amount matches that                                                            
appropriated by the House of Representatives.                                                                                   
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM #8: This amendment  adds $1,291,400 general funds  for the Legal                                                            
Advocacy Services  BRU, Public Defender Agency component  on page 5,                                                            
lines 14 and 16.                                                                                                                
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     This amendment of  $1,292,400 in general funds provides funding                                                            
     for the Public Defender  Agency at the level recommended by the                                                            
     governor.                                                                                                                  
     The agency  needs a portion of  this increment to maintain  the                                                            
     current  level of services. Failure  to fund this will  require                                                            
     reducing  existing services.  The Public  Defender Agency  will                                                            
     not  be able to  keep up with  the delinquency  filings  in the                                                            
     Bethel office due  to the loss of the existing paralegal. Also,                                                            
     the  Public   Defender  Agency  will  no  longer   be  able  to                                                            
     participate  in the highly successful  Anchorage mental  health                                                            
     court.                                                                                                                     
     Another portion of  this increment would provide for additional                                                            
     resources  recommended  in  a legislative  audit  in May  1998.                                                            
     Eight  paralegals,   an  additional  investigator   in  Kodiak,                                                            
     additional   computer/case  management   support,  travel   for                                                            
     attorneys to participate  in trials in rural court locations to                                                            
      ensure that rural clients receive equitable treatment.                                                                    
                                                                                                                                
Senator Olson  commented about lack  of consideration for  those "on                                                            
the fringes of society."                                                                                                        
                                                                                                                                
Co-Chair Donley  countered that although funding for  this agency is                                                            
not increased  from FY 01, it has  received extra funding  at a rate                                                            
several times that of the Department of Law, Criminal Division.                                                                 
                                                                                                                                
Senator Olson  requested a representative of the department  confirm                                                            
or deny this.                                                                                                                   
                                                                                                                                
DAN  SPENCER,   Director,  Division   of  Administrative   Services,                                                            
Department  of Administration  testified  that  the Public  Defender                                                            
Agency deals not only with  criminal actions, but with Child in Need                                                            
of Aid cases and  a variety of other cases that are  handled by both                                                            
the Criminal and Civil sections of the Department of Law.                                                                       
                                                                                                                                
Senator  Olson  asked if  it  is indeed  the  case that  the  Public                                                            
Defender's Office  funding has been maintained at  the same level as                                                            
in years past.                                                                                                                  
                                                                                                                                
Mr. Spencer  answered that  the committee  substitute budget  before                                                            
the Committee  is lower than that of year's past due  to the loss of                                                            
$185,000 RSA'd  to the Public Defender's Agency from  the Department                                                            
of Health and Social Services.                                                                                                  
                                                                                                                                
Senator Olson asked how  this budget compares to the budget from two                                                            
or five years prior.                                                                                                            
                                                                                                                                
Mr. Spencer was unsure.                                                                                                         
                                                                                                                                
Co-Chair Donley asserted  it is "quite a bit higher" than five years                                                            
ago.                                                                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Halford and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM #9: This  amendment changes the  funding source of $185,000  I/A                                                            
Receipts to general  funds for the Legal and Advocacy  Services BRU,                                                            
Office of Public Advocacy component on page 5, lines 14 and 15.                                                                 
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     The  Office of  Public Advocacy  needs these  funds to  support                                                            
     three  non-attorney  guardians ad  litem.  They represent  more                                                            
     than 450 abused and  neglected children in Child in Need of Aid                                                            
     proceedings. The loss  of these interagency receipts means that                                                            
     these  children will  be assigned  to other  guardians who  are                                                            
     already  overwhelmed  by  caseload  far in  excess  of best  in                                                            
     practice standards.                                                                                                        
     The expeditious  handling of these cases, which  is mandated by                                                            
     SLA  98, Chapter  99, will  be destroyed  by the  loss of  this                                                            
     money.                                                                                                                     
     The  average caseload  for a  guardian ad litem  would jump  to                                                            
     well over 200 children.                                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator                                                              
Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly                                                                         
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
ADM #10: This amendment adds $600,000 general funds for the Legal                                                               
and Advocacy Services BRU, Office of Public Advocacy component on                                                               
page 5, lines 14 and 15.                                                                                                        
                                                                                                                                
Senator Hoffman moved for adoption and read an explanatory                                                                      
statement into the record as follows.                                                                                           
                                                                                                                                
     This reduction  would leave the Office of Public  Advocacy well                                                            
     below the level of  funding needed for the current fiscal year.                                                            
     The Office  of Public Advocacy cannot control  the number, type                                                            
     or timing of cases assigned by the courts.                                                                                 
     Nearly  60%  of  the Office  of  Public  Advocacy's  costs  are                                                            
     payments  to private attorneys  who contract with OPA  at rates                                                            
     far  below market  rates, in  part because  OPA pays its  bills                                                            
     timely.  OPA may  see its  pricing advantages  disappear  if it                                                            
     becomes  necessary to  defer payment of  bills. A shortfall  of                                                            
     this magnitude  would affect all OPA services,  including Child                                                            
     in  Need  of  Aid cases,  the  guardian  ad  litem  and  public                                                            
     guardian programs, and criminal defense cases.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM  #11:  This  amendment  creates   a new  Assisted   Living  Rate                                                            
component  in the Senior Services  BRU on page  4, line 28  and adds                                                            
$128,000 general funds to this component.                                                                                       
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     This is to cover costs  of an assisted living rate increase. As                                                            
     the  rate increase  is now in  place the  increased costs  will                                                            
     almost certainly be incurred.                                                                                              
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM #12: This  amendment adds $447,300 general funds  for the Senior                                                            
Services  BRU, Protection,  Community Services,  and Administration                                                             
component on page 4, lines 28 through 29.                                                                                       
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     This amendment  would fund the  Senior Services General  Relief                                                            
     program.   This  program  provides  assistance   to  vulnerable                                                            
     adults.  These  are persons  21  or  older who  are  vulnerable                                                            
     because  they are subject to  neglect, including self-neglect,                                                             
     because  of competency issues,  or because they are  subject to                                                            
     physical or emotional abuse.                                                                                               
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM  #13:  This  amendment  adds  $650,000  general  funds  for  the                                                            
Information Services Fund  BRU and component on page 4, lines 10 and                                                            
11.                                                                                                                             
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     Loss  of funding  means the  state's  emergency communications                                                             
     infrastructure   will  continue  to  deteriorate   as  deferred                                                            
     maintenance  needs go unmet. Ongoing maintenance  will continue                                                            
     to be  paid for the  state agencies  that routinely need  these                                                            
     services.  Some of these agencies will have to  take funds from                                                            
     their day-to-day operations  to support a communications system                                                            
     that  is needed  and  used by  all organizations,  stat,  local                                                            
     government,  non profits and federal agencies,  when responding                                                            
     to emergencies.                                                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM   #14:  This   amendment   adds   $1,600,000  for   the   Public                                                            
Communications  Services BRU, Satellite Infrastructure  component on                                                            
page 4, lines 12 and 16.                                                                                                        
                                                                                                                                
Senator Hoffman  read an  explanatory statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This   increment  would   fund  the   contract  for   satellite                                                            
     transponder  services to provide  statewide public television.                                                             
                                                                                                                                
Senator Hoffman  added that this amendment would benefit  viewers of                                                            
the Gavel-to-Gavel network, which was airing these proceedings.                                                                 
                                                                                                                                
[Note: No formal motion was made to adopt this amendment.]                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM  #15:   This  amendment  adds   $2,615,200  general   funds  and                                                            
$2,633,000   Receipt  Supported  Services   funds  for  the   Alaska                                                            
Longevity  Programs Management  BRU,  Pioneers'  Homes component  on                                                            
page 4, lines 23 through 25.                                                                                                    
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     The Governor had requested  $2,474,700 in general funds for the                                                            
     Veterans'  home proposal and $140,500 in general  funds for the                                                            
     salary adjustment  for related nursing positions.  The $140,500                                                            
     and  the  $2,474,200  add  up to  the  requested  increment  of                                                            
     $2,615,200 in general funds.                                                                                               
     The $2,633,000 in Receipts Supported Services in the                                                                       
     governor's request for Pioneer Home receipts.                                                                              
                                                                                                                                
Senator  Hoffman  noted this  increment  has received  support  from                                                            
veterans throughout the state.                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley                                                                         
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
ADM  #16: This  amendment  deletes $70,900  general  funds from  the                                                            
                                   th                                                                                           
Division of Motor  Vehicles-East 48  Street  Lease BRU and component                                                            
on  page 3,  lines 11  through  14. Explanatory  language  reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This will  zero-out this appropriation.  This lease  is for the                                                            
     Department  of  Public  Safety,  although  DMV does  have  some                                                            
     storage space in the  facility. DMV will vacate that space, mot                                                            
     likely within FY 02.                                                                                                       
                                                                                                                                
This  amendment  also  deletes  $167,600   general  funds  from  the                                                            
Division of Motor Vehicles-Fairbanks  Street Lease BRU and component                                                            
on  page 3,  lines  7 through  10.  Explanatory  language  reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This  lease  is  held  on  behalf  of  several   tenants.  This                                                            
     amendment  changes   the appropriation   to  64.4,  the  amount                                                            
     related to DMV-occupied space.                                                                                             
                                                                                                                                
This amendment  also adds $44,900 general funds for  the Division of                                                            
Motor Vehicles-Dowling  Rd/Benson Avenue Leases BRU and component on                                                            
page 3, lines  3 through 6. Explanatory  language reads as  follows.                                                            
                                                                                                                                
     This  increases  the appropriation  to  the correct  amount  of                                                            
     1.044.9.                                                                                                                   
                                                                                                                                
This  amendment also  adds  $193,600 general  funds  for the  Leases                                                            
Except Anchorage  Division of Motor Vehicles Facilities  BRU, Leases                                                            
component on page 2, lines 27 through 29.                                                                                       
                                                                                                                                
     This action  returns the net  amount from the amendments  above                                                            
     back to the Leasing budget.                                                                                                
                                                                                                                                
Senator Ward moved for adoption.                                                                                                
                                                                                                                                
Co-Chair Donley noted this amendment has a net zero impact.                                                                     
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Department of Military and Veterans Affairs                                                                                   
                                                                                                                                
M&VA #1: This amendment  deletes $50,000 Investment Loss Trust Funds                                                            
(ILTF) and $310,900 Inter-Agency  Oil and Hazardous Waste funds (I/A                                                            
Oil Haz) from  the Disaster Planning  and Control BRU and  component                                                            
on page 24, lines  32 and 33. This amendment also  adds $50,000 ILTF                                                            
and $423,400 I/A Oil Haz  funds for and new Local Emergency Planning                                                            
Committee  Grants component  in the  Disaster  Planning and  Control                                                            
BRU.                                                                                                                            
                                                                                                                                
Senator Leman moved for adoption.                                                                                               
                                                                                                                                
Senator Hoffman objected for an explanation.                                                                                    
                                                                                                                                
Senator  Leman stated  this amendment  incorporates  the  investment                                                            
loss  trust fund  increment  at the  request  of the  Department  of                                                            
Military  and  Veterans   Affairs  budget  subcommittee   for  local                                                            
emergency planning  committees for  non-oil and hazardous  substance                                                            
planning.  He  noted   funding  for  oil  and  hazardous   substance                                                            
emergencies  is   contained  in  the  Department  of  Environmental                                                             
Conservation budget.                                                                                                            
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
M&VA  #2: This  amendment inserts  a new  bill section  on page  46,                                                            
following line 11 to read as follows.                                                                                           
                                                                                                                                
          Sec. 5. ALASKA NATIONAL GUARD. The sum of $250,000 from                                                               
     the fiscal  year 2002 dividend  that is declared by  the Alaska                                                            
     Student Loan Corporation  is appropriated from the student loan                                                            
     fund (AS  14.42.210) to the Alaska Commission  on Postsecondary                                                            
     Education  for  payment  in  fiscal  year 2002  to  the  Alaska                                                            
     National  Guard  to pay  the University  of  Alaska for  course                                                            
     credits for  continuing educational benefits  to members of the                                                            
     Alaska National Guard.                                                                                                     
                                                                                                                                
The amendment was NOT OFFERED.                                                                                                  
                                                                                                                                
M&VA #3: This  amendment adds $107,000 general funds  for the Alaska                                                            
National Guard BRU, State  Active Duty component on page 25, lines 5                                                            
and 13.                                                                                                                         
                                                                                                                                
Senator  Olson  moved for  adoption  and  stressed that  the  Alaska                                                            
National  Guard plays  a "key  role" in  rural Alaska  in  providing                                                            
services during  times of disasters  and other calamities.  He added                                                            
that in a more passive  roll, the Guard is involved with schools and                                                            
other community activities.  He surmised this amendment would have a                                                            
positive impact on helping the Guard in its efforts.                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
M&VA  #4:  This  amendment  adds  $200,000  general  funds  for  the                                                            
Disaster Planning  and Control BRU  and component on page  24, lines                                                            
32 and 33.                                                                                                                      
                                                                                                                                
Senator Olson  moved for adoption and explained these  funds are for                                                            
the state  emergency coordination  center.  He stressed that  Alaska                                                            
does  not have  an  operations  center  dedicated  for coordinating                                                             
deployment   of  local,  state,  federal,   volunteer  and   private                                                            
resources  at the  scene  of any  major  disaster or  emergency.  He                                                            
continued,  saying  law  enforcement,  fire  and  emergency  medical                                                            
personnel  have "long  seen  the need  for reducing  their  response                                                            
time."                                                                                                                          
                                                                                                                                
Senator Olson pointed out  that recent events across the country and                                                            
Alaska are  warnings of the dangers  of delayed response.  He listed                                                            
school   shootings,  earthquakes,   emergency   landings  in   small                                                            
communities  of large aircraft, such  as the situation in  Cold Bay,                                                            
fuel spills, wildland/urban  interface fire and floods as typical of                                                            
events that require immediate response.                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
M&VA #5: This  amendment adds $111,800  general funds/Match  for the                                                            
Alaska National  Guard BRU,  Alaska Military  Youth Academy  on page                                                            
25, lines 5 and 14.                                                                                                             
                                                                                                                                
Co-Chair  Kelly noted  this increment  is already  contained in  the                                                            
committee substitute.                                                                                                           
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Department of Transportation and Public Facilities                                                                            
                                                                                                                                
DOT #1:  This amendment  increases the appropriation  in Section  15                                                            
from $27,909,700. The amended language reads as follows.                                                                        
                                                                                                                                
          Sec. 15. MARINE HIGHWAY SYSTEM FUND. The sum of                                                                       
     $29,019,500 is appropriated from the general fund to the                                                                   
     Alaska marine highway system fund (AS 19.65.060).                                                                          
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     Maintain Baseline Service - $819,800 GF                                                                                    
     The Marine Highway  Stabilization Component requires additional                                                            
     GF  in FY  02 in  order  to maintain  baseline  service to  the                                                            
     public.  Without  this  increase,  AMHS  would have  to  reduce                                                            
     service.  Current projections  indicate  the fund balance  will                                                            
     reach  zero during FY 02 unless  additional GF is appropriated                                                             
     or service  is reduced.  Funding of  this increment will  allow                                                            
     AMHS to  continue service uninterrupted  through the  end of FY                                                            
     02-a projected total of 293.1 weeks of service.                                                                            
     In  addition  to the  GF contribution  to  the  fund needed  to                                                            
     maintain services,  additional GF is requested to offset Marine                                                            
     Highway  Fund increments,  which have  been recommended  by the                                                            
     Senate  Finance   Subcommittee  for  the  following   purposes.                                                            
     Without  the additional  GF, the  deficit will  be higher  than                                                            
     estimated  and  further  vessel   service  reductions  will  be                                                            
     necessary.                                                                                                                 
     Kennicott Longshoring Expenses - $60,000 GF                                                                                
     Because   the  AMHS  operates  from  several  privately   owned                                                            
     facilities  and municipal piers in Southwest  Alaska and Prince                                                            
     William Sound,  state or contract employees are  not allowed to                                                            
     handle  lines due  to a  statewide longshoring  agreement.  The                                                            
     longshoring  costs for M/V Kennicott are quadruple  that of the                                                            
     M/V  Tustumena. In the  winter of 2002,  the Kennicott  will be                                                            
     providing  the  only service  to Cordova  and  Kodiak for  five                                                            
     months due to a scheduled overhaul of the M/V Tustumena.                                                                   
     Seasonal Whittier Terminal Position - $30,000 GF                                                                           
     With the  opening of the Whittier Tunnel in May  2000, AMHS has                                                            
     increased  staffing needs at  the terminal. Two positions  must                                                            
     be  available  to  meet  and tie  up  incoming  Marine  Highway                                                            
     vessels.  This request would  fund one seasonal position,  from                                                            
     May to September, to assist an existing position.                                                                          
     AMHS Marketing Effort - $200,000 GF                                                                                        
     A recently  completed  AMHS marketing  and pricing study  shows                                                            
     that  the lack  of marketing  is the  major  cause of  customer                                                            
     decline.  An active  marketing program  directed at the  80,000                                                            
     potential  customers  identified  in the study  would  increase                                                            
     revenue  and significantly  reduce  the AMHS  annual  operating                                                            
     deficit.                                                                                                                   
                                                                                                                                
Senator Austerman moved for adoption.                                                                                           
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator  Austerman  stated  his intent  for  the  baseline  services                                                            
portion of the amendment  is to prevent reduction in services of the                                                            
Marine  Highway System.  He stressed  the importance  of the  MHS to                                                            
communities in  his district. He pointed out there  has already been                                                            
a reduction in services.                                                                                                        
                                                                                                                                
Senator  Austerman   noted  the  reason  longshoring   expenses  are                                                            
considerable higher  for the MV Kennicott then other  vessels is due                                                            
to the larger size of the new vessel.                                                                                           
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson, Senator Austerman and Senator Hoffman                                                                  
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Green, Co-Chair Kelly and Co-Chair Donley                                                                                       
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DOT #2:   This amendment  changes  the funding  source from  general                                                            
funds to Highway Working  Capital Funds (HWCF) in the Transportation                                                            
Administration  and  Support BRU:  $56,400  Regional Administrative                                                             
Services  component,   $52,000  Central   Region  Support   Services                                                            
component, $57,000  Northern Region Support Services  component, and                                                            
$32,000  Southeast Region  Support Services  component, on  page 30,                                                            
line 30 and page 31, lines 14 through 21.                                                                                       
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     This  amendment  changes the  fund source  used  by the  Senate                                                            
     Finance   Subcommittee    to  maintain   a   basic   level   of                                                            
     administrative  support to the  department. The use  of Highway                                                            
     Working  Capital Funds  for the administrative  support  of the                                                            
     State Equipment  Fleet (SEF) will result in a  cashflow problem                                                            
     and an increase in  costs to the user agencies. The use of HWCF                                                            
     for  additional  support  will  add  about  2  percent  to  the                                                            
     replacement  fees in FY 03 for user agencies.  This will impact                                                            
     all state agencies'  budgets and reduce funding for much needed                                                            
     programs.                                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DOT  #3: This  amendment deletes  $385,400  general  funds from  the                                                            
North Kenai Maintenance  Station BRU and component on page 33, lines                                                            
4, 6 and  7, and adds $385,400  general funds  for the Highways  and                                                            
Aviation  BRU, Central  Region Highways  and  Aviation component  on                                                            
lines 12 through 14.                                                                                                            
                                                                                                                                
Senator  Hoffman moved  for adoption,  stressed  it has  a new  zero                                                            
impact  and  read  an  explanatory  statement  into  the  record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This  amendment takes  the amount separately  appropriated  for                                                            
     the  North Kenai  Maintenance  Station  and returns  it to  the                                                            
     Central  Region  Maintenance and  Operations  for Highways  and                                                            
     Aviation.  The department  will  be better able  to respond  to                                                            
     weather and changing  maintenance needs (e.g., pothole repair),                                                            
     as well  as basic level of service,  on a statewide  and region                                                            
     basis with this amendment.  North Kenai has not been identified                                                            
     as  the highest  priority maintenance  need  in the state.  All                                                            
     stations are struggling  to meet the maintenance needs of their                                                            
     assigned areas.                                                                                                            
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Ward, Senator Wilken,  Senator Austerman,  Senator                                                            
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
AT EASE 8:21 PM / 8:27 PM                                                                                                       
                                                                                                                                
Department of Environmental Conservation (cont.)                                                                              
                                                                                                                                
DEC  #1:  This  amendment   adds  $32,500  general   funds  for  the                                                            
Environmental  Health BRU, Solid Waste Management  component on page                                                            
13, lines 15 and 20.                                                                                                            
                                                                                                                                
[This amendment was adopted earlier in the meeting.]                                                                            
                                                                                                                                
Senator  Leman proposed  changing  the funding  source from  general                                                            
funds to ILTF funds.                                                                                                            
                                                                                                                                
Co-Chair Donley asked about the proposed funding source.                                                                        
                                                                                                                                
Senator  Leman responded,  "It's  an alphabet  soup  of acronyms,  I                                                            
don't know."                                                                                                                    
                                                                                                                                
DAVID  TEAL, Director,  Division  of Legislative  Finance,  informed                                                            
ILTF is an acronym for "I Love To Fish".                                                                                        
                                                                                                                                
Co-Chair Donley was uncertain.                                                                                                  
                                                                                                                                
JAMES  ARMSTRONG,  staff  to Co-Chair  Donley,  testified  the  fund                                                            
source  is related  to transportation  and  the acronym  stands  for                                                            
"Intertidal Longevity Transportation Funds".                                                                                    
                                                                                                                                
Co-Chair Donley  remained unconvinced  this was correct.  He decided                                                            
to "use a lifeline" and "phone a friend".                                                                                       
                                                                                                                                
SENATOR SEAN PARNELL testified  via teleconference from Anchorage to                                                            
clarify ILTF is an acronym for "Investment Loss Trust Fund".                                                                    
                                                                                                                                
No action was taken on the amendment.                                                                                           
                                                                                                                                
Department of Transportation and Public Facilities (cont.)                                                                    
                                                                                                                                
DOT  #4:  This  amendment  adds  $234,500   general  funds  for  the                                                            
Administration  and Support BRU, Commissioner's Office  component on                                                            
page 30, line 30 and page 31, line 3.                                                                                           
                                                                                                                                
Senator  Hoffman   moved  for  adoption  and  read  an  explanatory                                                             
statement into the record as follows.                                                                                           
                                                                                                                                
     This  amendment  restores  a  reduction  taken  by  the  Senate                                                            
     Finance subcommittee  that is to be spread amongst  the various                                                            
     administrative   components   within  the  Administration   and                                                            
     Support appropriation.  Maintenance level funding  in necessary                                                            
     to  deal with  increases to  the federal  highway and  aviation                                                            
     programs.  These programs  add to the  workload of all  support                                                            
     staff  whether it is dealing  with impacts of possible  federal                                                            
     legislation    or   processing    payments   to   construction                                                             
     contractors.   These  funds  are  also  needed  to  assure  the                                                            
     department's  proper monitoring  and management of performance                                                             
     measures.                                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley                                                                         
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
DOT  #5: This  amendment  increases  the appropriation  amount  from                                                            
$27,909,700  in Section  15 on  page 49,  lines 26  through 28.  The                                                            
amended language reads as follows.                                                                                              
                                                                                                                                
          Section 15. MARINE HIGHWAY SYSTEM FUND. The sum of                                                                    
     $29,182,000  is  appropriated  from  the  general fund  to  the                                                            
     Alaska marine highway system fund (AS 19.65.060).                                                                          
                                                                                                                                
Senator Hoffman noted this amendment is similar to DOT #1.                                                                      
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
AT EASE 8:33 PM / 8:35 PM                                                                                                       
                                                                                                                                
University of Alaska                                                                                                          
                                                                                                                                
UNIV  #1:  This  amendment  adds  $2,000,000  Alaska  Commission  on                                                            
Postsecondary Education  (ACPE) Dividend funds for the University of                                                            
Alaska  BRU, Budget  Reductions/Additions-Systemwide   component  on                                                            
page 34,  lines 13  through  15. Accompanying  explanatory  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
     This   amendment   continues  the   fund   source  and   amount                                                            
     appropriated  to  the  University  of  Alaska  in FY  01.  This                                                            
     amendment is identical  to action taken by the House for FY 02.                                                            
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
UNIV  #2: This  amendment  adds  $9,490,800  general funds  for  the                                                            
University  of Alaska  BRU, Budget  Reductions/Additions-Systemwide                                                             
component on page 34, lines 13 through 15.                                                                                      
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
UNIV #3: This  amendment adds intent  language to the University  of                                                            
Alaska BRU, Chukchi  Campus component on page 34,  following line 26                                                            
to read as follows.                                                                                                             
                                                                                                                                
     It  is the intent  of the  legislature that  the University  of                                                            
     Alaska  provide vocational  education  training at the  Chukchi                                                            
     Campus  through contract services  with the Kotzebue  Technical                                                            
     Center.                                                                                                                    
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Wilken objected.                                                                                                        
                                                                                                                                
Senator Olson  understood other legislation is pending  that relates                                                            
to the Kotzebue  Technical Center. However, he surmised  the funding                                                            
incorporated  with that bill is for  a one-time only appropriation.                                                             
                                                                                                                                
Senator Wilken  relayed information he received from  the University                                                            
regarding  the  Chukchi  campus.  He  explained  the  approximately                                                             
$500,000  budget is used  to offer associate  degrees and  education                                                            
preparation courses  and has not been used for vocational  technical                                                            
programs. He  warned that if this  amendment passed, there  would be                                                            
an elimination  of  associate degrees  and  educational preparation                                                             
courses. As  a result, he shared that  the university is  opposed to                                                            
the amendment.                                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
AT EASE 8:38 PM / 8:40 PM                                                                                                       
                                                                                                                                
Department of Corrections                                                                                                     
                                                                                                                                
COR  #1:  This  amendment  adds  $100,000   general  funds  for  the                                                            
Institutions  BRU, Institution Director's  Office component  on page                                                            
9, lines  26  and 27.  Accompanying  explanatory  language reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This  amendment  adds   $100,000  in  general  funds  into  the                                                            
     Department   of  Corrections   BRU  institutions,  Institution                                                             
     Director's   Office,   to   be   spread   among   the   various                                                            
     institutions.                                                                                                              
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR #2:  This amendment adds  $654,500 AHFC  Dividend funds  for the                                                            
Administration  and Operations BRU, Inmate Health  Care component on                                                            
page  8, line  28  and  page 9,  line  4. Accompanying  explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     The  department  with nursing  positions  and  the Division  of                                                            
     Personnel  have agreed  to implement  a two-range pay  increase                                                            
     for nurse  positions statewide in an effort to  assist agencies                                                            
     in recruiting  and retaining qualified nurses  to work in state                                                            
     facilities.                                                                                                                
     Appropriations   for  nurse's  salaries  are  included  in  the                                                            
     budgets  of the Departments  of Administration  and Health  and                                                            
     Social Services.  This amendment will treat all  three affected                                                            
     state agencies equally  by providing funds to cover the nursing                                                            
     positions in the Department of Corrections.                                                                                
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR  #3:  This  amendment  adds  $273,800   general  funds  for  the                                                            
Administration  and Operations  BRU,  Community  Jails component  on                                                            
page  8, line  28, and  page 9,  line 15.  Accompanying explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     The  Department  requested  $400.0  to address  Community  Jail                                                            
     needs,  but only $126.2  was funded  within the Senate  Finance                                                            
     Subcommittee recommendation.  The other $273.8 of general funds                                                            
     is  essential  in  the Community  Jails  component  to  support                                                            
     fifteen  (15)  Local  Community  Jails under  contract  to  the                                                            
     Agency.  These contract facilities  provide 56,940 man-days  of                                                            
     prisoner  incarceration  capability  for the  State of  Alaska.                                                            
     Current contract  amounts were set on January  1, 1995 and have                                                            
     not increased in over  6 years, yet the contractors have had to                                                            
     absorb approximately  15% of labor cost increases  and 10.5% of                                                            
     U.S.  Consumer Price  Increases  on their  Goods and  Services.                                                            
     From FY  96 to FY 00, the local  jails have had a 33%  increase                                                            
     in prisoner  services. These $273.8 of general  funds is needed                                                            
     to  enable  a  5%  contractual   increase  to  all  local  jail                                                            
     providers  and enable them to administer their  programs to the                                                            
     degree  necessary  to  secure  the safety  of  state  offenders                                                            
     incarcerated in these jails.                                                                                               
     Without  these funds,  several  local jails  may be in  serious                                                            
     financial difficulty  and could close their community facility.                                                            
     The  department does not  have the empty  beds to absorb  these                                                            
     prisoners  nor the funding to transport them  to state operated                                                            
     correctional  facilities  across the state.  Many of the  state                                                            
     prisoners  are pending local court actions and  needs to remain                                                            
     at   the  arrest  site.   Most  are   short-term  misdemeanant                                                             
     offenders.  Housing  is  not available  at  state correctional                                                             
     facilities to support these prisoners.                                                                                     
                                                                                                                                
Senator Austerman moved for adoption.                                                                                           
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator  Austerman spoke  to the  importance and  cost savings  that                                                            
community  jails provides for  the state and  stressed the  need for                                                            
adequate funding  to keep them functional. He also  told of the poor                                                            
condition of the facilities  and the increased maintenance costs. He                                                            
stated that future deferred  maintenance efforts would be necessary.                                                            
                                                                                                                                
Senator Austerman  referred to a handout [copy on  file] showing the                                                            
locations of the community  jails and the specific financial need of                                                            
each facility.                                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Austerman, Senator Hoffman and Senator Olson                                                                  
                                                                                                                                
OPPOSED:  Senator  Ward,  Senator  Wilken,  Senator  Green,  Senator                                                            
Leman, Co-Chair Kelly and Co-Chair Donley                                                                                       
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
This amendment FAILED to be adopted.                                                                                            
                                                                                                                                
COR  #4: This  amendment  deletes  $50,000  general funds  from  the                                                            
Institutions BRU,  White Bison Project component on  page 9, line 26                                                            
and page  10, line 22.  This amendment also  adds general funds  for                                                            
the  Community  Residential   Centers  BRU:  $25,000  for  the  Nome                                                            
Culturally  Relevant  CRC  component  and  $25,000  for  the  Bethel                                                            
Culturally Relevant CRC  component, on page 10, lines 25, 28 and 29.                                                            
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Olson  WITHDREW his motion  to adopt the amendment  to defer                                                            
to COR #16 and the amendment was HELD.                                                                                          
                                                                                                                                
                                                                                                                                
SFC 01 # 67, Side B 08:43 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair  Donley clarified  that Senator Ward  planned to offer  COR                                                            
#16.                                                                                                                            
                                                                                                                                
COR #5: This amendment  adds $230,000 STPR and $79,400 general funds                                                            
for the Institutions BRU,  Anchorage Jail component on page 9, lines                                                            
26 and 28.                                                                                                                      
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
An unidentified member objected.                                                                                                
                                                                                                                                
Senator Olson explained  this amendment relates to maintenance staff                                                            
working in  conjunction with contractors  and security staff  at the                                                            
new  facility.   He  noted  an  anticipation   of  funds   from  the                                                            
Municipality   of  Anchorage  to   pay  the  cost  of  housing   the                                                            
municipality's inmates.                                                                                                         
                                                                                                                                
Senator  Olson  cautioned  that  without  the  needed  funding,  the                                                            
facility would not open in February or March 2002 as scheduled.                                                                 
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Austerman, Senator  Green, Senator Leman,  Senator                                                            
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley                                                                        
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
COR #6: This amendment  adds general funds for the  Institutions BRU                                                            
in the  following components  on page  9, lines  26 through  33, and                                                            
page 10, lines 1 through 19.                                                                                                    
                                                                                                                                
     Institution Director's Office             $ 6,300                                                                          
     Anvil Mountain                             59,200                                                                          
     Combined Hiland Mountain                  110,600                                                                          
     Cook Inlet                                121,100                                                                          
     Fairbanks                                 103,000                                                                          
     Ketchikan                                  40,400                                                                          
     Lemon Creek                                90,300                                                                          
     Mat-Su                                     40,100                                                                          
     Palmer                                    125,300                                                                          
     Sixth Avenue                               42,700                                                                          
     Spring Creek                              207,600                                                                          
     Wildwood                                  122,400                                                                          
     Yukon-Kuskokwim                            59,900                                                                          
     Pt. MacKenzie Rehab. Farm                  32,400                                                                          
                                                                                                                                
Senator Olson moved for  adoption and explained this amendment funds                                                            
20 correctional  officer  positions. He cautioned  that not  funding                                                            
these positions  would jeopardize  the safety  and security  of both                                                            
inmates and staff.                                                                                                              
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator  Hoffman  read  the  amendment's  list  of  funds  for  each                                                            
facility  and  stressed these  amounts  would  be reduced  from  the                                                            
department's budget if this amendment does not pass.                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Green,  Senator  Leman,   Senator  Ward,  Senator                                                            
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley                                                                   
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
COR  #7:  This amendment  adds  $1,123,000  general  funds  for  the                                                            
Institutions BRU,  Out of State Contracts component  on page 9, line                                                            
26, and page 10, line 17.                                                                                                       
                                                                                                                                
Senator Olson  moved for adoption and read an explanatory  statement                                                            
into the record as follows.                                                                                                     
                                                                                                                                
     These general funds  are needed to continue to purchase housing                                                            
     for approximately  58 Alaska  prisoners at the Central  Arizona                                                            
     Detention  Center. Failure to  purchase these beds will  result                                                            
     in  overcrowding at  state institutions,  which could  threaten                                                            
     final  resolutions  of the Clearly  lawsuit  and result in  re-                                                            
     imposition  of court  monitoring and  fines. The Department  of                                                            
     Corrections  has  already  submitted  a $610,000  decrement  to                                                            
     account for  the transfer of 100 inmates in March  2002 and 100                                                            
     inmates in May 2002  back to the State of Alaska. These inmates                                                            
     will be  moved into state beds  made available by the  movement                                                            
     of  Municipality  of Anchorage  inmates  to the  new  Anchorage                                                            
     Jail. This  reduction would increase the amount  cut beyond the                                                            
     capability  of the agency to  adjust for. The agency  needs the                                                            
     latitude of these  58 beds to enable a smooth transition to the                                                            
     new Anchorage jail.                                                                                                        
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Hoffman  commented that each year the state  comes closer to                                                            
compliance with  the court's order in the Cleary vs.  Smith lawsuit.                                                          
However,  he stressed,  if this  amendment fails,  that progress  is                                                            
reversed.                                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
COR  #8:  This  amendment   adds  $17,800  general   funds  for  the                                                            
Administration   and  Operations   BRU,   Correctional  Industries-                                                             
Administration  component on page  8, line 28, and page 9,  lines 11                                                            
and 12.                                                                                                                         
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR  #9:  This  amendment   adds  $20,000  general   funds  for  the                                                            
Administration    and    Operations    BRU,    Transportation    and                                                            
Classification  component on page  8, line 28, and page 9.  lines 21                                                            
and 22.                                                                                                                         
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR  #10:  This  amendment  adds  $111,300  general  funds  for  the                                                            
Administration   and   Operations   BRU,  Administrative    Services                                                            
component on page 9, lines 28 and 31.                                                                                           
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR #11: This  amendment adds general  funds for the Administration                                                             
and Operations  BRU in the following components on  page 8, line 28,                                                            
and page 9, lines 16 through 20.                                                                                                
                                                                                                                                
     Community Corrections Director's Office              $10,400                                                               
     Northern Region                                       36,200                                                               
     Southcentral Region                                   71,100                                                               
     Southeast Region                                      14,800                                                               
                                                                                                                                
Senator Olson  moved for adoption and read an explanatory  statement                                                            
into the record as follows.                                                                                                     
                                                                                                                                
     Adult Probation Officers handle the casework, monitoring,                                                                  
     surveillance, and overall supervision of offenders on                                                                      
     probation and parole.                                                                                                      
     If the department were to reduce Probation Officers while the                                                              
     number of offenders on probation/parole continues to increase,                                                             
     there would be an impact on public safety.                                                                                 
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Green, Senator                                                            
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley                                                                         
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
COR  #12:  This  amendment  adds  $233,300  general  funds  for  the                                                            
Administration  and Operations  BRU,  Inmate Programs  component  on                                                            
page 8, line 28 and page 9, line 10.                                                                                            
                                                                                                                                
This amendment  was HELD  to await  action on COR  #16. COR  #12 was                                                            
subsequently NOT OFFERED.                                                                                                       
                                                                                                                                
COR  #13:  This  amendment  adds  $214,900  general  funds  for  the                                                            
Administration  and  Operations  BRU,  Office  of  the Commissioner                                                             
component on page 8, lines 28 and 29.                                                                                           
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR  #14:  This  amendment  adds  $871,300  general  funds  for  the                                                            
Administration  and Operations BRU, Inmate Health  Care component on                                                            
page 8, line 28 and page 9, line 4.                                                                                             
                                                                                                                                
This amendment  was HELD  to await  action on COR  #17. COR  #14 was                                                            
subsequently NOT OFFERED.                                                                                                       
                                                                                                                                
AT EASE 8:51 PM / 8:52 PM                                                                                                       
                                                                                                                                
COR  #15:  This  amendment  is  for  "Structural  Changes"  for  all                                                            
components  in the  Institutions  and Parole  Board BRU  on page  9,                                                            
lines 26 through 33 and page 10, lines 3 through 24.                                                                            
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
COR  #16:  This  amendment  adds  $100,000  general  funds  for  the                                                            
Administration  and Operations  BRU,  Inmate Programs  component  on                                                            
page  8, line  28 and  page  9, line  10. Accompanying  explanatory                                                             
language reads,  "Increase for Inmate Substance Abuse  Treatment due                                                            
to increased costs associated with providing this service."                                                                     
                                                                                                                                
Senator Ward  moved for  adoption and explained  this would  address                                                            
inmate substance abuse  treatment programs throughout the department                                                            
including two  culturally relevant  programs in the Nome  and Bethel                                                            
facilities.                                                                                                                     
                                                                                                                                
Co-Chair  Donley   noted  the  department   budget  was   below  the                                                            
limitation  stipulated  by  the  Senate  Majority  by approximately                                                             
$800,000.                                                                                                                       
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
COR #17: This  amendment adds $$327,300 AHFC Dividend  funds for the                                                            
Administration  and Operations BRU, Inmate Health  Care component on                                                            
page  8, line  28, and  page  9, line  4. Accompanying  explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     The  departments with  nursing  positions and  the Division  of                                                            
     Personnel  have agreed  to implement  a two-range pay  increase                                                            
     for nurse  positions statewide in an effort to  assist agencies                                                            
     in recruiting  and retaining qualified nurses  to work in state                                                            
     facilities.                                                                                                                
     Appropriations for nurse's salaries are included in the                                                                    
     budgets of the Department of Administration and the Department                                                             
     of Health and Social Services.                                                                                             
                                                                                                                                
Senator Ward moved for adoption and explained.                                                                                  
                                                                                                                                
Co-Chair Donley  understood this increment  was not included  in the                                                            
budget adopted by the House of Representatives.                                                                                 
                                                                                                                                
Senator Ward affirmed.                                                                                                          
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
COR  #4: This  amendment  deletes  $50,000  general funds  from  the                                                            
Institutions BRU,  White Bison Project component on  page 9, line 26                                                            
and page  10, line 22.  This amendment also  adds general funds  for                                                            
the  Community  Residential   Centers  BRU:  $25,000  for  the  Nome                                                            
Culturally  Relevant  CRC  component  and  $25,000  for  the  Bethel                                                            
Culturally Relevant CRC  component, on page 10, lines 25, 28 and 29.                                                            
                                                                                                                                
This amendment  was held from earlier  in the meeting. At  this time                                                            
it was determined the amendment would be NOT OFFERED.                                                                           
                                                                                                                                
COR  #14:  This  amendment  adds  $871,300  general  funds  for  the                                                            
Administration  and Operations BRU, Inmate Health  Care component on                                                            
page 8, line 28 and page 9, line 4.                                                                                             
                                                                                                                                
This amendment  was held from earlier  in the meeting. At  this time                                                            
it was determined the amendment would be NOT OFFERED.                                                                           
                                                                                                                                
COR  #15:  This  amendment  is  for  "Structural  Changes"  for  all                                                            
components  in the  Institutions  and Parole  Board BRU  on page  9,                                                            
lines 26 through 33 and page 10, lines 3 through 24.                                                                            
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Hoffman reiterated  the department's budget is over $700,000                                                            
below  the Senate  Majority limit.  He stated  this amendment  would                                                            
give the department flexibility  to save money knowing it could then                                                            
be spent in other areas.                                                                                                        
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley                                                                    
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Department of Community and Economic Development (cont.)                                                                      
                                                                                                                                
C&ED  #1:   This  amendment   adds  $9   million  Alaska   Aerospace                                                            
Development  Corporation (AADC)  receipts for  the Alaska  Aerospace                                                            
Development   BRU,   Alaska   Aerospace   Development   Corporation                                                             
Facilities  Maintenance component  on page 6,  lines 29 and  30, and                                                            
page 7, lines 5 through 8.                                                                                                      
                                                                                                                                
Co-Chair Kelly moved for adoption.                                                                                              
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Department of Natural Resources (cont.)                                                                                       
                                                                                                                                
DNR  #1: This  amendment removes  $300,000  general  funds from  the                                                            
Minerals, Land  and Water BRU, Water  Development component  on page                                                            
26, line 20. This amendment  also inserts a new bill section on page                                                            
54, following line 24 that reads as follows.                                                                                    
                                                                                                                                
          Sec. 28. WATER DEVELOPMENT. The sum of $300,000 in                                                                    
     interagency  receipts  from nonpoint  source pollution  control                                                            
     funds received by  the Department of Environmental Conservation                                                            
     is  appropriated  to  the  Department   of Natural   Resources,                                                            
     division  of water development,  for water quality monitoring,                                                             
     watershed or nonpoint  source assessment, groundwater research,                                                            
     assessment,  technical assistance,  and training, and  instream                                                            
     flow reservations for the fiscal year ending June 30, 2002.                                                                
                                                                                                                                
This amendment  was held from earlier  in the meeting. At  this time                                                            
it was determined it would be NOT OFFERED.                                                                                      
                                                                                                                                
Legislature                                                                                                                   
                                                                                                                                
LEG  #1: This  amendment  inserts a  new bill  section  on page  49,                                                            
following line 25 to read as follows.                                                                                           
                                                                                                                                
          Sec. 15. LEGISLATIVE BUDGET AND AUDIT COMMITTEE. The sum                                                              
     of  $350,000  is appropriated  from  the lapsing  general  fund                                                            
     balance  of the  appropriation  made in  sec. 1,  ch. 133,  SLA                                                            
     2000,  page  8, line  12  (Department  of Education  and  Early                                                            
     Development  - K-12 Support - $677,662,000) to  the Legislative                                                            
     Budget and Audit Committee  for the fiscal year ending June 30,                                                            
     2002, for a district cost factor study.                                                                                    
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Department of Education and Early Development (cont.)                                                                         
                                                                                                                                
E&ED #1:  This amendment  deletes $1,300,000  general funds  for the                                                            
Early  Development   BRU,  Child   Care  Assistance  and   Licensing                                                            
component on page 11, lines  29, 31 and 32. Accompanying explanatory                                                            
language reads as follows.                                                                                                      
                                                                                                                                
     This  amendment deletes  excess general  funds used as  a match                                                            
     for the Child Care Assistance Program.                                                                                     
                                                                                                                                
This  amendment   also  adds  $6  million  general   funds  for  the                                                            
University  of Alaska agency and BRU,  Budget Reductions/Additions-                                                             
Systemwide component  on page 34, lines 13, 14 and  15. Accompanying                                                            
explanatory language reads as follows.                                                                                          
                                                                                                                                
     This   amendment  provides  the   necessary  funding   for  the                                                            
     University  of Alaska to continue its educational  initiatives.                                                            
                                                                                                                                
This amendment was NOT OFFERED at this time.                                                                                    
                                                                                                                                
Department of Fish and Game (cont.)                                                                                           
                                                                                                                                
F&G #1: This amendment  adds $100,000 general funds  for the Habitat                                                            
BRU  and  component  on page  16,  lines  17  and  18. Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     Oil and gas  exploration, leasing and development  on the North                                                            
     Slope  have increased dramatically  in the last several  years.                                                            
     The  existing  budget  is not  adequate  to conduct  the  field                                                            
     reviews required before,  during, and after project activities.                                                            
     This   has   limited   the   department's   ability   to   work                                                            
     cooperatively  with industry  when project  designs are  in the                                                            
     early  stages of development,  a time  when the input  is often                                                            
     the most important.  The department's early involvement results                                                            
     in the least economic  impact to industry, and provides for the                                                            
     highest  level of protection  for fish and wildlife  resources,                                                            
     while still allowing development to occur.                                                                                 
                                                                                                                                
This amendment was NOT OFFERED to defer to F&G #2.                                                                              
                                                                                                                                
F&G #2: This amendment  adds $100,000 general funds  for the Habitat                                                            
BRU and component on page 16, lines 17 and 18.                                                                                  
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Co-Chair  Kelly  offered  a friendly  technical  correction  to  the                                                            
component name  from "Habitat and Restoration", to  "Habitat". There                                                            
was no objection and the amendment was AMENDED and ADOPTED.                                                                     
                                                                                                                                
Department of Public Safety (cont.)                                                                                           
                                                                                                                                
DPS  #1: This  amendment  deletes  $50,000  general funds  from  the                                                            
Council on  Domestic Violence and  Sexual Assault BRU and  component                                                            
on page 28, line 33, and  page 29, lines 3 through 5. This amendment                                                            
also adds  $50,000  general funds  for the  Batterer's Intervention                                                             
Program BRU  and component on page  29, lines 6 and 7. Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     The CDVSA  has received a 15  percent increase in funding  over                                                            
     the last  two years while the  Batterer's Intervention  Program                                                            
     funding has  remained level. This transfer of  $50,000 provides                                                            
     much  needed funding  for the additional  grant requests  being                                                            
     made by batterers  intervention program. Without  intervention,                                                            
     we cannot hope to do away with domestic violence.                                                                          
     Additionally,  a  recent  audit  of  CDVSA  identifies  serious                                                            
     issues regarding  monitoring and evaluation and  indicates that                                                            
     Batterer's Intervention Programs are underfunded.                                                                          
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DPS #15: This  amendment adds $100,000 general funds  for the Alaska                                                            
State Troopers BRU, Search  and Rescue component on page 28, lines 4                                                            
and 12. Accompanying explanatory language reads as follows.                                                                     
                                                                                                                                
     Over  the past several  years a large  number of Alaskans  have                                                            
     been  killed  in  avalanches  in Alaska.  This  funding  is  to                                                            
     provide for necessary  public education. The governor requested                                                            
     $350,000. This would provide partial funding.                                                                              
                                                                                                                                
Senator Green AMENDED the  amendment to change the funding source to                                                            
Alaska  Commission  on Postsecondary  Education  (ACPE)  funds.  She                                                            
moved for adoption.                                                                                                             
                                                                                                                                
Without objection the amended amendment was ADOPTED.                                                                            
                                                                                                                                
DPS #16: This amendment  deletes $250,000 I/A receipts from the Fish                                                            
and  Wildlife Protection  BRU,  Enforcement/Investigative   Services                                                            
component, and adds $250,000  I/A receipts for the Fish and Wildlife                                                            
Protection  BRU, Aircraft  Section  component.  This amendment  also                                                            
deletes  $250,000 general  funds  from the  Fish  and Wildlife  BRU,                                                            
Aircraft Section component,  and adds $250,000 general funds for the                                                            
Fish  and   Wildlife   Protection  BRU,   Enforcement/Investigative                                                             
Services component on page 27, lines 24 through 26 and 28.                                                                      
                                                                                                                                
Senator  Austerman  moved  for  adoption  and explained  this  is  a                                                            
technical amendment relating to the funding source.                                                                             
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
AT EASE 9:04 PM / 9:11 PM                                                                                                       
                                                                                                                                
Department of Natural Resources (cont.)                                                                                       
                                                                                                                                
DNR #3:  This amendment adds  $160,000 general  funds for the  Parks                                                            
and Recreation  Management BRU, Parks  Management component  on page                                                            
26, lines 27 and 30.                                                                                                            
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
DNR  #5:  This  amendment  adds  $160,000   general  funds  for  the                                                            
Minerals,  Land  and Water  Development  BRU,  Claims,  Permits  and                                                            
Leases component on page 26, lines 17, 18 and 21.                                                                               
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Department of Labor and Workforce Development (cont.)                                                                         
                                                                                                                                
LAB #1: This amendment  changes the funding source from general fund                                                            
match  to State Training  and Employment  Program  (STEP) funds  for                                                            
$90,000  in  the Employment  Security  BRU,  Job  Training  Programs                                                            
component on page 22, lines 14 and 17.                                                                                          
                                                                                                                                
Senator Hoffman  shared he received information that  he would share                                                            
with the  co-chair at a  later time and  if the co-chair  concurred,                                                            
Senator Hoffman  would offer the amendment  before the full  Senate.                                                            
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Department of Environmental Conservation (cont.)                                                                              
                                                                                                                                
DEC  #9: This  amendment  adds $120,000  Commercial  Fisheries  Loan                                                            
funds  for  the  Environmental  Health  BRU  on page  13,  line  15.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The department will use Nonpoint Source Pollution funds for                                                                
     the Arctic Contaminants project and the Commercial Fisheries                                                               
     Loan Fund $120,000 will be used to match for this project.                                                                 
                                                                                                                                
Senator Leman  moved for adoption  and this amendment is  similar to                                                            
DEC #5, which  was determined to have an unworkable  fund source. He                                                            
reported  that the department  would use  Nonpoint Source  Pollution                                                            
funds for the  Arctic Contaminants Project and Commercial  Fisheries                                                            
Loan Funds for the required state match.                                                                                        
                                                                                                                                
AT EASE 9:14 PM                                                                                                                 
                                                                                                                                
Senator Leman  AMENDED the amendment to stipulate  the funds are for                                                            
the Food Safety and Sanitation component on page 13, line 17.                                                                   
                                                                                                                                
There was no objection and the amended amendment was ADOPTED.                                                                   
                                                                                                                                
DEC  #10: This  amendment  deletes  Storage  Tank  Assistance  Fund:                                                            
$707,300  from the  Contaminated Sites  Program  BRU and  component,                                                            
$134,800  from  the  Administration  BRU,  Administrative   Services                                                            
component,  and $500  from  the Statewide  Public  Services BRU  and                                                            
component  on page 13, lines  11, 13, 21,  22, and page 14,  lines 8                                                            
and 9. This  amendment also adds Oil/Haz  Response Fund (Prevention                                                             
Account):  $707,300  for  the Contaminated  Sites  Program  BRU  and                                                            
component, and  $134,800 for the Administration BRU,  Administrative                                                            
Services  component.  Accompanying  explanatory  language  reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This   request  provides  funding   for  continued   regulatory                                                            
     oversight   for  cleanup  of   contamination  associated   with                                                            
     underground   storage  tanks  and  support  services   for  the                                                            
     regulatory  program provided by the Division  of Administrative                                                            
     Services.  This  includes  state match  for federal  monies  to                                                            
     inspect  and  cleanup  underground  storage  tanks  to  prevent                                                            
     future  spills  and insulate  Alaska  businesses  from  federal                                                            
     compliance  actions. Inspections  are  conducted to ensure  new                                                            
     tank installations  are meeting the requirements of federal law                                                            
     for  leak detection  and proper operation.  Oversight  includes                                                            
     investigation, risk  assessment, and cleanup of sites that pose                                                            
     a  threat  to human  health  and the  environment.  Cleanup  of                                                            
     contamination  from underground storage tanks  that have leaked                                                            
     and caused  contamination in  the past is ongoing and  required                                                            
     by  state and federal  law. Support  services include  accounts                                                            
     payable,  accounts receivable,  federal  grant administration,                                                             
     payroll, budget, and data processing.                                                                                      
                                                                                                                                
Co-Chair Kelly moved for adoption.                                                                                              
                                                                                                                                
Co-Chair Donley explained the amendment.                                                                                        
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
AT EASE 9:15 PM / 9:18 PM                                                                                                       
                                                                                                                                

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