Legislature(2011 - 2012)SENATE FINANCE 532

02/22/2011 10:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+= SB 1 BD OF ED./EARLY DEVELOPMENT ANNUAL REPORT TELECONFERENCED
Moved CSSB 1(EDC) Out of Committee
+= SB 3 FUNDING FOR SCHOOL MEALS TELECONFERENCED
Moved CSSB 3(FIN) Out of Committee
+= HB 16 EXTEND SENIOR BENEFITS PAYMENT PROGRAM TELECONFERENCED
<Bill Hearing Postponed>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                     February 22, 2011                                                                                          
                         10:04 a.m.                                                                                             
                                                                                                                                
                                                                                                                                
10:04:37 AM                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee                                                                            
meeting to order at 10:04 a.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Darwin Peterson, Staff, Co-Chair Stedman; Senator Bill                                                                          
Wielechowski.                                                                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Ester Cox, Chair Alaska State Department of Education and                                                                       
Early Development.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 1      BD OF ED./EARLY DEVELOPMENT ANNUAL REPORT                                                                             
                                                                                                                                
          SB 1 was REPORTED out of committee with a "do                                                                         
          pass" recommendation and with a previously                                                                            
          published zero fiscal note: FN1, (EED).                                                                               
                                                                                                                                
SB 3      FUNDING FOR SCHOOL MEALS                                                                                              
                                                                                                                                
                                                                                                                                
          SB 3 was REPORTED out of committee with a "do                                                                         
          pass" recommendation and with a new fiscal impact                                                                     
          note from the Senate Finance Committee.                                                                               
                                                                                                                                
Co-Chair Stedman  discussed the two  bills on the  agenda. He                                                                   
discussed HB  16, which was  postponed from today's  meeting.                                                                   
He expected the bill to return to committee in short order.                                                                     
                                                                                                                                
SENATE BILL NO. 1                                                                                                             
                                                                                                                                
     "An Act requiring the state Board of Education and                                                                         
     Early Development to provide an annual report to the                                                                       
     legislature."                                                                                                              
                                                                                                                                
10:07:06 AM                                                                                                                   
                                                                                                                                
Senator  Bettye  Davis  offered   to  answer  questions.  She                                                                   
pointed out the bill's zero fiscal note.                                                                                        
                                                                                                                                
Co-Chair Stedman  commented on the zero fiscal  note from the                                                                   
Department of  Education and Early Development.  He mentioned                                                                   
that public  testimony was delivered  in the previous  Senate                                                                   
Finance Committee meeting.                                                                                                      
                                                                                                                                
ESTER COX,  CHAIR ALASKA  STATE DEPARTMENT  OF EDUCATION  AND                                                                   
EARLY DEVELOPMENT  (via teleconference), spoke  in support of                                                                   
SB  1.   She  applauded  the   commitment  of   the  previous                                                                   
committees. She offered to prepare  an annual report with the                                                                   
help of the department for the benefit of the legislature.                                                                      
                                                                                                                                
Senator Davis  stated that  she wanted  the annual  report in                                                                   
statute to ensure ongoing reports.                                                                                              
                                                                                                                                
10:10:55 AM                                                                                                                   
                                                                                                                                
Senator  Thomas commented  that a  report from  the Board  of                                                                   
Education would prove helpful.  He explained that as a member                                                                   
of the education committee, he  required varied perspectives.                                                                   
He opined that the report requirement  will prove helpful for                                                                   
the education committee as they  move forward on initiatives.                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  report  CSSB  1  (EDC)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB  1  was  REPORTED  out  of  committee  with  a  "do  pass"                                                                   
recommendation  and with a  previously published  zero fiscal                                                                   
note: FN1, (EED).                                                                                                               
                                                                                                                                
SENATE BILL NO. 3                                                                                                             
                                                                                                                                
     "An Act providing for funding for school lunch and                                                                         
     breakfast."                                                                                                                
                                                                                                                                
10:12:47 AM                                                                                                                   
                                                                                                                                
Co-Chair   Hoffman   MOVED  to   ADOPT   proposed   committee                                                                   
substitute,   work  draft   #27-LS0020\D.  Co-Chair   Stedman                                                                   
OBJECTED.                                                                                                                       
                                                                                                                                
DARWIN PETERSON,  STAFF, CO-CHAIR STEDMAN,  discussed changes                                                                   
in  the Committee  Substitute  (CS).  He explained  the  four                                                                   
changes.  The  initial  change   listed  on  Page  2  removed                                                                   
previous  language stating  the  requirement  for the  annual                                                                   
adjustment  to  the base  amount  according to  the  Consumer                                                                   
Price  Index (CPI)  in Anchorage.  The  language was  removed                                                                   
because  of the  change  made on  Page 2,  Line  4 listing  a                                                                   
sunset date of  June 30, 2014. The act is temporary  and will                                                                   
last  three  years.  The  issue will  come  back  before  the                                                                   
legislature for review of the annual adjustment to the CPI.                                                                     
                                                                                                                                
Mr. Peterson  discussed the  third change on  Page 2,  Line 5                                                                   
where the  committee added an  immediate effective  date with                                                                   
the intent that the legislation  will go into effect prior to                                                                   
the next  school year.  He pointed  out the  final change  on                                                                   
Page 1, Line 4.  With the three year sunset date,  the law is                                                                   
in effect  for less  than five  years. The legislative  legal                                                                   
attorney drafted the legislation as uncodified law.                                                                             
                                                                                                                                
Mr. Peterson  introduced the new  fiscal note drafted  by the                                                                   
Senate Finance  Committee reflecting  the three fiscal  years                                                                   
that  the  program  will  be   in  effect.  Without  the  CPI                                                                   
adjustment,  the  fiscal  note   details  a  static  cost  of                                                                   
$2,143,000 for the following three fiscal years.                                                                                
                                                                                                                                
Co-Chair  Stedman  removed  his  OBJECTION.  There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Senator McGuire  removed both Amendments  1 and 2.  She noted                                                                   
that  amendments  attempted  to   highlight  agriculture  and                                                                   
seafood from the  Alaska marketplace. She realized  that some                                                                   
outlying  school   districts  are   unable  to  satisfy   the                                                                   
requirements  as stated  in the  amendment.  She intended  to                                                                   
work further with the bill sponsor.                                                                                             
                                                                                                                                
Co-Chair  Stedman  highlighted  the new  documents  including                                                                   
responses  to committee  member questions  from the  previous                                                                   
meeting. He noted an eight page  spreadsheet illustrating the                                                                   
percentage of  students who consumed  free and  reduced price                                                                   
lunches.                                                                                                                        
                                                                                                                                
10:16:09 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  mentioned the  new  fiscal  note from  the                                                                   
Senate Finance  Committee replacing the previous  fiscal note                                                                   
and reflecting a $2,143,000 general  fund appropriation in FY                                                                   
12 through  FY 14.  He explained  that the governor's  budget                                                                   
currently has no funding for the program.                                                                                       
                                                                                                                                
SENATOR BILL  WIELECHOWSKI thanked the committee  for hearing                                                                   
the bill. He supported the changes made in the CS.                                                                              
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CSSB 3  out of  Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  3  was  REPORTED  out  of  committee  with  a  "do  pass"                                                                   
recommendation  and with a  new fiscal  impact note  from the                                                                   
Senate Finance Committee.                                                                                                       
                                                                                                                                
10:18:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman encouraged a thorough review.                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:19 AM.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 3 Achorage School District Letter of Support.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Follow Up Response to Senate Finance Questions 2.7.11.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Action for Healthy Kids Support Letter.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Amendment #1 - McGuire.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 FY2009 Food Service Fund Actuals.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 National School Lunch Program Free and Reduced Percentage Report.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Senate Finance Repsonses 2.7.11.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Sponsor Response to Committee Questions.docx SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Statewide School District Lunch and Breakfast Data.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
HB 16 SFIN Fiscal Note 02 16 11 .xls SFIN 2/22/2011 10:00:00 AM
HB 16
SB 3 ASNA Support School Meals.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Amendment #2 - McGuire.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 District Cost Factors (2).pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 Backup for Amendment #2.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 CS version D.pdf SFIN 2/22/2011 10:00:00 AM
SB 3
SB 3 New Fiscal Note SFIN.xls SFIN 2/22/2011 10:00:00 AM
SB 3
HB 16 DHSS Response 2-22-11.pdf SFIN 2/22/2011 10:00:00 AM
HB 16