Legislature(1993 - 1994)
03/26/1994 10:10 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 26, 1994
10:10 A.M.
TAPE HFC 94 - 90, Side 2, #000 - end.
TAPE HFC 94 - 91, Side 1, #000 - end.
TAPE HFC 94 - 91, Side 2, #000 - end.
TAPE HFC 94 - 92, Side 1, #000 - end.
TAPE HFC 94 - 92, Side 2, #000 - end.
TAPE HFC 94 - 93, Side 1, #000 - end.
TAPE HFC 94 - 93, Side 2, #000 - end.
TAPE HFC 94 - 94, Side 1, #000 - end.
TAPE HFC 94 - 94, Side 2, #000 - #530.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 10:10 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Representative Martin Representative Foster
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative MacLean was not present for the meeting.
ALSO PRESENT
Representative Jerry Mackie; Representative John Davies;
Representative Cliff Davidson; Representative David
Finkelstein; Representative Irene Nicholia; Representative
Joe Green; Darrell Rexwinkel, Commissioner, Department of
Revenue; Richard Burton, Commissioner, Department of Public
Safety; Kenneth Bischoff, Director, Division of
Administrative Services, Department of Public Safety; Nico
Bus, Chief, Financial Services, Department of Natural
Resources; Dean Guaneli, Chief, Assistant Attorney General,
Criminal Division, Department of Law; Bruce Botelho,
Attorney General, Department of Law; Jay Hogan, Staff,
Representative Ron Larson; John Sandor, Commissioner,
Department of Environmental Conservation; Mead Treadwell,
Deputy Commissioner, Department of Environmental
Conservation; Bob Poe, Director, Administrative Services,
Department of Environmental Conservation; John Burnett,
Program Manager, Underground Storage Tank Program, Division
of Spill Prevention and Response, Department of
Environmental Conservation; McKie Campbell, Deputy
Commissioner, Department of Fish and Game; Kevin Brooks,
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Director, Division of Administration, Department of Fish and
Game; Alison Elgee, Budget Director, University of Alaska;
Wendy Redman, Vice President for University Relations,
Administrative Offices, University of Alaska.
SUMMARY
HB 370 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
HB 370 was HELD in Committee for further
consideration.
HOUSE BILL 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
DEPARTMENT OF REVENUE
Representative Brown MOVED to adopt Amendment #1 which would
provide full year funding of the 16 positions currently with
funding capabilities for only six months. Additionally, the
amendment would add a child support enforcement officer and
a contractual position to the Department of Law for three
paralegal, two attorneys and one secretary. Representative
Brown stressed that the amendment would result from federal
funding. Representative Martin OBJECTED.
DARRELL REXWINKEL, COMMISSIONER, DEPARTMENT OF REVENUE,
advised that the case load in the Child Support Division
continues to accelerate with the addition of more stringent
federal controls. Commissioner Rexwinkel echoed support for
funding of Amendment #1.
He explained that the federal government will pay for two
thirds of the program's cost and the remaining portion would
be distributed through incentives based on the State's
ability to collect child support. Representative
Grussendorf asked how much child support is owed to the
State. Commissioner Rexwinkel advised the current amount
exceeds $300 million dollars.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Foster, Grussendorf, Hanley, Hoffman,
Navarre, Parnell, Brown, Larson.
OPPOSED: Martin, Therriault.
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Representative MacLean was not present for the vote.
The MOTION PASSED (8-2).
Representative Grussendorf MOVED to adopt Amendment #2 which
would reduce the unallocated reduction to Income and Excise
Tax Division within the Department of Revenue from $349.9
thousand dollars to $189.9 thousand dollars. The amendment
provides additional funding for the previous reduction which
resulted in the loss of three revenue auditors. He added
that action would create a total reduction of $9-$12 million
dollars in State revenues. Commissioner Rexwinkel spoke in
support of Amendment #2. Representative Martin OBJECTED.
Representative Brown expressed her concern with the
reduction. She recommended that a reduction be taken from
the Division of Gaming and/or Alcohol Beverage Control
Division instead of auditors. Representative Brown pointed
out that the departments function to collect revenue should
be supported.
Commissioner Rexwinkel emphasized the need for additional
funding within the Division of Income and Excise Tax. The
responsibilities of tax functions continues to increase,
whereas, funding continues to decrease. The situation is
becoming quite disproportionate.
Co-Chair Larson stated that Amendment #2 would be HELD for
further consideration.
Representative Grussendorf MOVED to adopt Amendment #3 which
would reduce the Oil and Gas audit vacancy factor from 7.6%
to 4%. He noted even at that level it would be a severe
vacancy factor reduction. The Department has indicated that
funding resulting from the amendment would provide an extra
1.5 audit positions. Each position has historically
generated up to $10 million dollars including additional
assessments.
Discussion followed among Committee members regarding
Amendment #3.
(Tape Change, HFC 94-91, Side 1).
Commissioner Rexwinkel responded that the goal of the
Division of Oil and Gas Audit is to become current on the
back log of tax cases. He emphasized that the initially
submitted budget would have adequately appropriated funds
for the Division to continue the program.
Representative Martin OBJECTED to Amendment #3.
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A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown,
Foster.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
DEPARTMENT OF PUBLIC SAFETY
Representative Parnell MOVED to adopt Amendment #1 providing
for funds dedicated for emergency transport and crisis
advocacy grants within the Department of Public Safety. The
amendment would provide an increase of $70 thousand dollars
in personal services directed toward an additional
prosecutor in the Anchorage sex crime unit. There being NO
OBJECTION, it was adopted.
Co-Chair Larson noted that Amendment #2 would be HELD.
Representative Grussendorf MOVED to adopt Amendment #3 which
would add $100 thousand dollars to fire service training.
The increase would restore the component to the funding
recommended by the Governor. Representative Parnell
explained that the reduction resulted as part of the excess
program receipt authority.
RICHARD BURTON, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,
emphasized that if the program receipts were cut, the money
would not be available.
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, acknowledged that
specific programs had been prioritized by the Department.
He added that within fire prevention priorities, the
Department recommends maintaining the general fund to allow
grant flexibility for rural communities in which training is
a high priority. The cut falls below what could be
generated to continue that program receipt authority.
Representative Parnell OBJECTED to Amendment #3.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Foster,
Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
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The MOTION FAILED (5-5).
Representative Parnell MOVED to adopt Amendment #2, intent
language which would describe accountability of the
program's safeguard through audit access and administrative
records while at the same time protecting the
confidentiality of those persons providing fish and wildlife
violation information.
Commissioner Burton remarked that the Department has no
control over that group. They are a private non-profit
entity. He said that the Department could support the
concept of the amendment but there would be no way to force
participation by the group. There being NO OBJECTION,
Amendment #2 was adopted.
Commissioner Burton commented that the net effect of the
budget caps to the Department will make it difficult to
implement proper services throughout the State.
DEPARTMENT OF NATURAL RESOURCES
Representative Hanley MOVED to adopt Amendment #1 which
would delete funding to the recorder's office component of
land development, resource development and then place funds
into the Nome recorder's office for management and
administration. Co-Chair Larson indicated that the
recorder's office is sustained 100% program by receipts.
NICO BUS, CHIEF, FINANCIAL SERVICES, DEPARTMENT OF NATURAL
RESOURCES, advised that a reduction in program receipts
within the Division of Lands would be a reduction to the
guide permit receipt increment.
Representative Brown noted her support in funding the Nome
recorder's office although she questioned deleting funding
to the land development component. She recommended
restoring all the program receipts to the recorder's office.
Representative Brown MOVED to divide the question and to add
an additional $120 thousand dollars in order to eliminate
the cut to program receipts within the recorder's offices.
Representative Hanley OBJECTED to dividing the question.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown.
OPPOSED: Martin, Parnell, Therriault, Foster,
Grussendorf, Hanley, Larson.
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Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Mr. Bus explained that a $155 thousand dollar reduction
would result in the elimination of one regional manager, and
would close the Nome office which would then transfer its
work to Fairbanks. Representative Hanley asked if the $35
thousand dollar allocation would allow the Nome office to
remain open. Mr. Bus emphasized that the cost of running
the Nome office staff was $35 thousand dollars. Funds from
other offices are currently received in order to run the
office, and that the allocation would not be a full
restoration of funds necessary in order to run the Nome
office.
Representative Brown MOVED to amend Amendment #1 in order to
restore the amount deleted in Subcommittee of $155 thousand
dollars in program receipts. Representative Therriault
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman.
OPPOSED: Martin, Parnell, Therriault, Hanley,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Parnell, Therriault, Brown,
Foster, Grussendorf, Hanley, Hoffman,
Martin, Larson.
OPPOSED: 0
The MOTION PASSED (10-0).
Representative Hanley MOVED to adopt Amendment #2 which
would combine the components of Forest Management
Development and Agricultural Development which would remove
some overhead by saving administrative costs. There was
OBJECTION to Amendment #2.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Hanley,
Martin, Navarre.
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OPPOSED: Foster, Grussendorf, Hoffman, Larson.
Representative MacLean was not present for the vote.
The MOTION PASSED (6-4).
Co-Chair Larson MOVED to adopt Amendment #3 which would
restore the program receipt authority funding for the
Agricultural Land Disposal Project. That funding was
reduced by action taken by the Subcommittee.
Mr. Bus explained that without the funding, the Division of
Agriculture would discontinue offering land parcel
contracts. Representative Navarre spoke against selling
state assets as program receipts. He thought that
restoration costs should be reflected as general fund
dollars rather than program receipts.
Co-Chair Larson MOVED to HOLD Amendment #3.
Representative Brown asked how Amendment #3 would affect
Project Hope. Mr. Bus did not know if the parcel in
question would include the Point Hope project. Amendment #3
was HELD.
Representative Brown MOVED to adopt Amendment #4 which would
restore funding to oil and gas development in the amount of
$60 thousand general fund dollars. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
OPPOSED: Therriault, Foster, Hanley, Martin,
Parnell, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
(Tape Change, HFC 94-91, Side 2).
Representative Navarre MOVED to adopt Amendment #5 which
would restore $72.5 thousand dollars to the water
development component within resources development which
would fund the division's director position.
Discussion followed between Committee members regarding the
productivity of the current division director in that
Department.
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Representative Parnell MOVED TO AMEND Amendment #5 to
restore the division director position, $75.2 thousand
dollars, and implementing an unallocated reduction of $75.2.
Representative Navarre spoke in support of the motion to
amend. There being NO OBJECTION, it was adopted.
Representative Therriault OBJECTED to adopting Amendment #5
as amended.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Hanley, Navarre, Parnell,
Larson.
OPPOSED: Brown, Grussendorf, Hoffman, Martin,
Therriault.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED to adopt Amendment #6 which would
provide a partial restoration of $250 thousand dollars to
the parks division in order to prevent the closure of parks.
Representative Therriault OBJECTED.
REPRESENTATIVE JOHN DAVIES pointed out that failure to adopt
the amendment would close seventeen parks in the State.
Representative Therriault stated that park lands should not
be added to the State when the current parks need attention.
He suggested a "no net gain" policy for parks.
Mr. Bus provided the Committee with a list of the seventeen
park units which would be closed without additional funding.
[Copy on file]. Representative Brown spoke in favor of
Amendment #6 and maintaining the parks which currently exist
and are extensively used by both tourists and local
residents. The parks along the highway system are heavily
used and they are not adequately accommodating the amount of
traffic. These parks are a resource development for the
state's tourism industry.
Representative Davies echoed the comments of Representative
Brown. Many park facilities are currently in bad disrepair
and continue to deteriorate. He emphasized that to attract
tourists, the facilities need to be kept at least clean.
Representative Therriault MOVED TO AMEND Amendment #6
deleting program receipts, changing the general fund to $150
thousand dollars. There being NO OBJECTION, it was adopted.
Representative Martin OBJECTED to adopting Amendment #6 as
amended.
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A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, Navarre,
Therriault, Brown, Larson.
OPPOSED: Hanley, Martin, Parnell.
Representative MacLean was not present for the vote.
The MOTION PASSED (7-3).
(Tape Change, HFC 94-92, Side 1).
Representative Brown MOVED to adopt Amendment #7 which would
restore the $100 thousand dollar transfer from DGGS for the
Information Resources Management component. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown.
OPPOSED: Hanley, Parnell, Therriault, Foster,
Larson.
Representatives Martin and MacLean were not present for the
vote.
The MOTION FAILED (4-5).
THE DEPARTMENT OF LAW
Representative Navarre MOVED to adopt Amendment #1 which
would add a prosecutor in the Kenai office in order to work
on Domestic Violence and Sexual Assault cases. He pointed
out that currently Kenai has a backlog of seventy-five
felony cases.
DEAN GUANELI, CHIEF, ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, explained that the situation in
Kenai within the Department's criminal division is in a
crisis mode.
He reiterated that the Governor, the Attorney General and
the Domestic Council on Sexual Assault support the proposed
position.
Representative Parnell MOVED TO AMEND Amendment #1 which
would provide an unallocated reduction of $90 thousand
dollars in the University of Alaska's budget to fund the
increment. Mr. Guaneli understood that the intent of the
language proposed by Representative Parnell would provide
funding for an Anchorage position to combat sexual assault
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and domestic violence and would not fund a position in
Kenai. Representative Navarre asked the impact of removing
the requested funding from Legal Services.
BRUCE BOTELHO, ATTORNEY GENERAL, DEPARTMENT OF LAW, replied
that it would be difficult to remove money from the civil
division and place it into the criminal division. The civil
division is limited to three areas, natural resource's
lawyers, human services' lawyers and governmental affairs
lawyers. The three functions performed by civil division
attorneys deal with core functions and have been "cut to the
bone". He said that the shift would not be an effective way
to manage the funds.
Representative Navarre noted that he would support a
reduction in the legislative budget in order to cover the
costs proposed in Amendment #1, while noting his objection
to removing the money from the University's budget.
Representative Martin OBJECTED to adopting Amendment #1.
Amendment #1 was HELD in Committee for further
consideration.
Representative Hoffman requested to HOLD Amendment #2. The
amendment would fund one additional prosecutor in Anchorage
dealing with domestic violence and sexual assault and would
result in a decrement to Legal Services operations #0093.
Representative Brown asked for a summary of the Department
of Law subcommittee allocations resulting from the
Constitutional Budget Reserve and other sources.
JOY HOGAN, STAFF, REPRESENTATIVE RON LARSON, explained that
the Department of Law would be allocated, as recommended by
the House subcommittee, $458 thousand dollars in federal
funds, $22 million dollars in general funds and $32 million
dollars resulting from other funds.
Discussion followed between Representative Brown, Attorney
General Botelho and Representative Larson regarding the
funding sources for the Department. Representative Brown
asked if 100% of tax litigation would be charged to the
Budget Reserve. Co-Chair Larson countered that the proposed
policy would guarantee that beneficiaries pay for the cost
of the benefit. Attorney General Botelho added that all oil
and gas taxation money would go directly into the budget
reserve.
(Tape Change, HFC 94-92, Side 2).
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Representative Brown MOVED and explained that Amendment #1
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and Amendment #8 were the same. The proposed increment
would restore the general fund to the environmental crimes
unit, a joint effort between the Department of Environmental
Conservation, the Department of Public Safety and the
Department of Law. Amendment #8 would provide funding to
establish the effort as outlined in the letter from the U.S.
Environmental Protection Agency Region X, Steve Torok, Chief
State Operations Section Alaska Operations. [Copy on file].
JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, strongly endorsed the comments of the
Environmental Protection Agency. Representative Therriault
OBJECTED stating that the information would not be
statutorily required. Commissioner Sandor stressed that the
environmental crime unit was established two years ago and
that it was very important to the business of the State.
REPRESENTATIVE DAVID FINKELSTEIN noted that the State has
the potential to generate money on cases which the
Department of Law litigates and that further funding would
encourage that action.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Parnell, Brown, Grussendorf,
Larson.
OPPOSED: Hanley, Martin, Therriault, Foster.
Representatives Navarre and MacLean were not present for the
vote.
The MOTION PASSED (5-4).
Representative Brown MOVED to adopt Amendment #7 which would
restore funding for the Pollution Prevention Program. The
program reduces current costs to state and local governments
by providing technical assistance to prevent waste and
pollution. Commissioner Sandor spoke in support of
Amendment #7 explaining that the effort in pollution
prevention has been an important and successful program to
the current Administration.
Representative Therriault questioned the funding source of
the account and OBJECTED to adopting Amendment #7.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson.
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Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #3 which would
reduce the general fund receipt authority by $100 thousand
dollars for air quality management. She added that because
the program experienced delays in adopting the regulations,
it was unlikely that the program would be able to collect
the legally required fees to operate.
Commissioner Sandor spoke in support of Amendment #3 which
would allow the Department to meet the objectives
recommended by the Department. Representative Therriault
OBJECTED.
BOB POE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, elaborated that the amendment
would provide funds to provide for the required federal
regulations.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #4 which would
restore funds to the response fund appropriation for the
Spill Technology Review Council which would be administered
by the University of Alaska. She added that the council's
role would be to assess new and developing technologies; to
respond. contain and clean up hazardous spills; and act as
the research review board recommending to the State projects
that should be investigated in order to qualify for grant
funding. The investment in spill clean up research is one
of the permitted uses of the response fund.
REPRESENTATIVE JOE GREEN spoke in support of Amendment #4
stating that the industries watch support the 470 Fund also
support Amendment #4. He added that the amendment would
provide funding for essential research.
(Tape Change, HFC 94-93, Side 1).
MEAD TREADWELL, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, added that the amendment would
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provide the council the authority to establish research. He
stated that last year the legislature funded a restricted
grant for research although at this time there is no
remaining money in that fund.
Representative Brown clarified that Amendment #4, #5 and #6
are related. Amendment #4 would provide the necessary funds
from the Response Fund, whereas, Amendment #5 would provide
funds from the Mitigation Account.
Commissioner Sandor itemized the functions of the Council:
1. Targeting research needs.
2. Allow the State to leverage additional resources
for grants and contracts.
3. Allow the State to leverage existing federal
investments toward the state's benefit.
Discussion followed among Committee members, Representative
Green and Commissioner Sandor regarding concerns with the
funding for Amendment #4. Representative Green pointed out
that without funding, the discovery of new hydrocarbons
would be inhibited. He emphasized the future importance of
the issue. Representative Therriault OBJECTED to adopting
Amendment #4.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Therriault, Brown, Grussendorf,
Hoffman.
OPPOSED: Parnell, Foster, Hanley, Martin, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED TO WITHDRAW Amendment #5. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #6 which would
restore the Department staff support for the Spill
Technology Review Council. The position had been funded
from the Oil and Hazardous Substance Spill Response Fund and
would serve the council to review spill technology research
proposals. Representative Brown suggested a technical
change to Amendment #5, deleting $51.9 and inserting $51.5.
There was NO OBJECTION to the technical change.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Navarre, Larson.
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OPPOSED: Parnell, Therriault, Foster, Hanley,
Hoffman, Martin.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #9 which would
allow the Storage Tank Assistance Program to continue
responsibilities for administrative and technical
assistance. She added that $4.5 million dollars would be
eliminated for the current fiscal year request for grants to
private businesses. The program would have and expense of
$1.5 million dollars to maintain operations.
Representative Navarre voiced continued support for the
program, however, recommended changing the funding sources
to an one cent increase to the motor fuel tax.
Representative Brown MOVED a technical change to Amendment
Amendment #8, deleting the $1,574.5 million dollars and
inserting $6537.7 million dollars.
JOHN BURNETT, PROGRAM MANAGER, UNDERGROUND STORAGE TANK
PROGRAM, DIVISION OF SPILL PREVENTION AND RESPONSE,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, informed the
Committee that the program has been in existence for three
years and handles the contaminated sites problem. The
program directly affects the state's drinking water
resources.
Mr. Treadwell interjected that the Department and the
Governor have proposed a one cent per gallon motor fuel tax
dedicated to the program which would raise between $4.5 and
$5 million dollars. He added that the Department would not
support the amendment.
Representative Hoffman advised that many of the storage
tanks in rural Alaska are above ground and he stated that
the current program was discriminatory. Amendment #9 was
HELD for further consideration.
DEPARTMENT OF FISH AND GAME
Representative Hoffman explained Amendment #1 which would
restore funding to the Bering Sea Fisherman's Association in
the amount of $1,646.0 million dollars through the
Department of Community and Regional Affairs and would allow
the Alaska State Troopers, Department of Public Safety, to
serve as the pass through administrator for a $56.0 thousand
dollar grant to Special Olympics. At the same time the
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amendment would provide for an insertion of $500 thousand
dollars for the Yukon River Drainage Fisheries Association
in the Department of Fish and Game.
Representative Hoffman MOVED to adopt Amendment #1A which
would provide an increment to the Department of Fish and
Game of $500 thousand dollars for fisheries management while
deleting that amount in the tourism component within the
Department of Commerce and Economic Development.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, indicated that there was a system wide crash in
western Alaska to the chum salmon harvest which left a
tremendous effect on both the subsistence and commercial
fisheries in those areas. He recommended that the funding
would be of tremendous use to the people of Alaska.
Representative Hanley OBJECTED to Amendment #1A because it
would replace one of the designated grants previously vetoed
to the Yukon River Drainage Fisheries Association.
Representative Hoffman MOVED to amend Amendment #1A removing
the Yukon River Drainage Fisheries Association and replacing
it with the other designated grants. There being NO
OBJECTION, it was amended to remove that segment.
Representative Therriault MOVED to divide the amendment.
Representative Hoffman OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Therriault, Larson.
OPPOSED: Brown, Foster, Grussendorf, Hoffman,
Martin, Navarre, Parnell.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Representative Parnell MOVED to amend Amendment 1A by
deleting the decrement to the Tourism Development Office and
then inserting a decrement of $238 thousand dollar
unallocated reduction to the University of Alaska.
Representative Hoffman OBJECTED.
(Tape Change, HFC 94-93, Side 2).
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hanley, Hoffman,
Martin, Navarre, Therriault, Brown,
Larson.
OPPOSED: Parnell.
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Representative MacLean was not present for the vote.
The MOTION FAILED (1-9).
Representative Brown MOVED to take the deletion from the
Office of International Trade. Representative Martin
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hanley, Hoffman, Navarre,
Parnell, Therriault, Brown, Foster.
OPPOSED: Martin, Larson.
Representative MacLean was not present for the vote.
The MOTION PASSED (8-2).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Navarre, Brown, Foster,
Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Therriault MOVED to adopt Amendment #2 which
would eliminate the last designated grant in the Department
of Fish and Game to the Walrus Commission. Mr. Campbell
commented that the Eskimo Walrus Commission works to manage
marine mammals particularly in northwest Alaska and at the
same time interacts with the federal government.
Representative Foster OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Martin, Navarre, Parnell, Therriault,
Hanley.
OPPOSED: Hoffman, Brown, Foster, Grussendorf,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Grussendorf MOVED to adopt Amendment #3 which
would restore $460 thousand dollars back to the Snettisham
16
Hatchery. He informed the Committee that the Northern
Southeast Regional Aquaculture Association would like to
assume responsibilities of the hatchery by 1998.
Representative Hanley noted that the Department recommended
that the hatcheries be phased out. Mr. Campbell replied
that the Department reluctantly offered to relinquish
Snettisham and understands that "going out business" is not
a good idea. He agreed that the Department is facing
serious cuts and that they have no choice but to offer up
the hatcheries. He summarized that when the hatchery is
shut down, the State would be responsible for dismantling
the facility.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Larson.
OPPOSED: Martin, Navarre, Parnell, Therriault,
Brown, Foster, Hanley.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Representative Therriault MOVED to adopt Amendment #4, a
reduction which would eliminate support for eighty advisory
committees and six regional councils, as well as travel
funds for two committee meetings.
Mr. Campbell explained the impact of the amendment. Last
year, the Department eliminated the specific support
personnel for all of the urban advisory committees. The
effect of the amendment would make the advisory system
completely dysfunctional.
Representative Therriault MOVED TO AMEND Amendment #4
deleting $269 thousand dollars from the commission rather
than the original figure of $569 thousand dollars.
REPRESENTATIVE IRENE NICHOLIA stressed how essential the
advisory council is to rural Alaskan people. Representative
Hoffman added that the elimination of the advisory committee
and regional council could cause violence in rural areas by
withdrawing them from the process. Representative Hoffman
OBJECTED on the motion to amend.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Foster,
Grussendorf, Hanley, Martin.
OPPOSED: Brown, Hoffman, Larson.
Representative MacLean was not present for the vote.
17
The MOTION PASSED (7-3).
(Tape Change, HFC 94-94, Side 1).
Mr. Campbell advised that the federal government has formed
ten regional subsistence advisory committees around the
State. The federal government is advertising that they have
the "better" system. He asked Committee members to question
what would happen if the local advisory committees disappear
in rural areas. Representative Grussendorf emphasized that
eliminating the council would be a mistake for the future of
the State.
REPRESENTATIVE CLIFF DAVIDSON disclosed that the regional
advisory council is important to the process of recruiting
data for management information.
Representative Therriault MOVED TO WITHDRAW Amendment #4.
There being NO OBJECTION, it was withdrawn.
Representative Parnell MOVED TO WITHDRAW Amendment #5. Mr.
Campbell explained the impact of the amendment could greatly
hamper development in the State. There being NO OBJECTION
to withdrawing Amendment #5, it was so ordered.
UNIVERSITY OF ALASKA
Representative Hanley MOVED to adopt Amendment #1 which
would discontinue new admits to the WAMI program.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
ADMINISTRATIVE OFFICES, UNIVERSITY OF ALASKA, replied that
students had already been admitted for next fall. To
eliminate the program, the funds would have to be withdrawn
a year and half before the fact. She added that there are
five full time faculty involved with the program which also
teach other classes.
Committee members discussed with Ms. Redman the elimination
of the WAMI program.
REPRESENTATIVE JOHN DAVIES stated that it was the intent of
the review committee to investigate the WAMI program during
the interim and then provide a policy recommendation to the
Legislature. He added the importance of the program to
medical and health care provided in rural Alaska.
Co-Chair Larson MOVED to amend Amendment #1 to direct that:
"New admits to WAMI cease until such time as the Committee
reports back to the Legislature in response to the
legislative review of the WICHE and WAMI program".
18
Representative Navarre OBJECTED. Representative Davies
voiced his support of the change.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Foster, Hoffman, Martin,
Larson.
OPPOSED: Parnell, Brown, Grussendorf, Hanley,
Navarre.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Martin OBJECTED to adopting Amendment #1.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Foster, Hanley,
Navarre, Parnell, Larson.
OPPOSED: Grussendorf, Hoffman, Martin.
Representative MacLean was not present for the vote.
The MOTION PASSED (7-3).
Representative Brown MOVED to adopt Amendment #2, a letter
of intent to establish an interim committee to review the
State's continued participation in the WAMI medical school
and the WICHE interstate compact. Representative Martin
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Hoffman, Navarre, Parnell, Therriault,
Larson.
OPPOSED: Martin.
Representative MacLean was not present for the vote.
The MOTION PASSED (9-1).
Representative Parnell MOVED to adopt Amendment #3 which
would provide an increase in the contractual services to
fund security upgrades requested by the Court System and
would delete $300 thousand dollars from the University's
statewide services component. Ms. Redman replied that the
statewide services component provides support functions to
the campuses. If the funds are reduced, the costs would
then be assumed by the campuses for these functions that
19
must continue to be provided and would then be made
available through the user fees which are currently
designated for other costs.
Representative Grussendorf voiced concern of an earlier $700
thousand dollar reduction to the University's budget. Ms.
Redman reiterated that the reduction would create fewer
services provided to each campus this coming year.
Representative Parnell MOVED TO WITHDRAW Amendment #3.
There being NO OBJECTIONS, it was withdrawn.
(Tape Change, HFC 94-94, Side 2).
Representative Hanley MOVED to adopt Amendment #4 explaining
that the Mental Health Board would not support total funding
of the Master of Social Work (MSW) program being drawn from
MHTIA. He thought that University receipts which are
anticipated to increase by $3 million dollars in FY95 should
supplant half of the MSW budget. Representative Grussendorf
OBJECTED.
Ms. Redman confirmed that the Mental Health board last year
supported funding of the MSW program. She stressed that the
amendment would gut the current program in the base budget.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Parnell, Therriault, Larson.
OPPOSED: Foster, Grussendorf, Hoffman, Martin,
Navarre, Brown.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Hanley MOVED to adopt Amendment #5 which
would eliminate the increment proposed by the Governor for
the Alaska Natural Heritage Program at ISER. He added that
$219 thousand dollars would remain in the Natural Heritage
Program.
ALISON ELGEE, BUDGET DIRECTOR, UNIVERSITY OF ALASKA,
reported that the increment had not been funded, and that it
was a section of the Board of Regent's request. A portion
of the funding currently does exist within the base of the
University budget. She added that the remainder has been
funded each year through a capital appropriation.
Representative Hanley MOVED TO WITHDRAW Amendment #5. There
being NO OBJECTION, it was withdrawn.
20
Representative Hanley MOVED to adopt Amendment #6. He
pointed out that the University system proposes to realize a
$3 million dollar increase in student receipts for FY95.
The new receipts should replace the reduced general fund.
Ms. Elgee summarized that the student receipts are used to
pay the teacher's salaries. Representative Therriault
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Navarre, Parnell, Larson.
OPPOSED: Grussendorf, Hoffman, Martin,
Therriault, Brown, Foster.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Grussendorf introduced Amendment #7 for
discussion purposes. He emphasized that there are many
maintenance problems in the University system at this time.
The amendment would provide $2 million dollars for annual
building, maintenance, renewal and replacement of
facilities. Representative Grussendorf MOVED TO WITHDRAW
Amendment #7. There being NO OBJECTIONS, it was withdrawn.
Representative Grussendorf MOVED to adopt Amendment #8 which
addresses the current University delivery systems,
technology and the effect on the outlying campuses. Ms.
Elgee identified the primary problem to result from the
reduction to the University's budget as proposed by the
Subcommittee would be the jeopardy of the University's
ability to continue to implement new initiatives.
Ms. Redman added that rural community campuses currently
offer a limited curriculum, primarily developmental and
lower division courses to enable students to go on to the
Anchorage or Fairbanks campuses. Distance delivery will
allow expansion for a marginal cost and offer a greater
diversity of courses at the rural communities.
Representative Davidson reminded the Committee members of
the type of students who benefit from such funds and said
they should be supported in their studies.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Brown, Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster, Larson, Navarre.
21
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
HB 370 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 5:50 P.M.
HOUSE FINANCE COMMITTEE
March 26, 1994
10:10 A.M.
TAPE HFC 94 - 90, Side 2, #000 - end.
TAPE HFC 94 - 91, Side 1, #000 - end.
TAPE HFC 94 - 91, Side 2, #000 - end.
TAPE HFC 94 - 92, Side 1, #000 - end.
TAPE HFC 94 - 92, Side 2, #000 - end.
TAPE HFC 94 - 93, Side 1, #000 - end.
TAPE HFC 94 - 93, Side 2, #000 - end.
TAPE HFC 94 - 94, Side 1, #000 - end.
TAPE HFC 94 - 94, Side 2, #000 - #530.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 10:10 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Representative Martin Representative Foster
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative MacLean was not present for the meeting.
ALSO PRESENT
Representative Jerry Mackie; Representative John Davies;
Representative Cliff Davidson; Representative David
Finkelstein; Representative Irene Nicholia; Representative
Joe Green; Darrell Rexwinkel, Commissioner, Department of
Revenue; Richard Burton, Commissioner, Department of Public
Safety; Kenneth Bischoff, Director, Division of
Administrative Services, Department of Public Safety; Nico
Bus, Chief, Financial Services, Department of Natural
Resources; Dean Guaneli, Chief, Assistant Attorney General,
Criminal Division, Department of Law; Bruce Botelho,
Attorney General, Department of Law; Jay Hogan, Staff,
22
Representative Ron Larson; John Sandor, Commissioner,
Department of Environmental Conservation; Mead Treadwell,
Deputy Commissioner, Department of Environmental
Conservation; Bob Poe, Director, Administrative Services,
Department of Environmental Conservation; John Burnett,
Program Manager, Underground Storage Tank Program, Division
of Spill Prevention and Response, Department of
Environmental Conservation; McKie Campbell, Deputy
Commissioner, Department of Fish and Game; Kevin Brooks,
Director, Division of Administration, Department of Fish and
Game; Alison Elgee, Budget Director, University of Alaska;
Wendy Redman, Vice President for University Relations,
Administrative Offices, University of Alaska.
SUMMARY
HB 370 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
HB 370 was HELD in Committee for further
consideration.
HOUSE BILL 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
DEPARTMENT OF REVENUE
Representative Brown MOVED to adopt Amendment #1 which would
provide full year funding of the 16 positions currently with
funding capabilities for only six months. Additionally, the
amendment would add a child support enforcement officer and
a contractual position to the Department of Law for three
paralegal, two attorneys and one secretary. Representative
Brown stressed that the amendment would result from federal
funding. Representative Martin OBJECTED.
DARRELL REXWINKEL, COMMISSIONER, DEPARTMENT OF REVENUE,
advised that the case load in the Child Support Division
continues to accelerate with the addition of more stringent
federal controls. Commissioner Rexwinkel echoed support for
funding of Amendment #1.
He explained that the federal government will pay for two
thirds of the program's cost and the remaining portion would
be distributed through incentives based on the State's
ability to collect child support. Representative
Grussendorf asked how much child support is owed to the
23
State. Commissioner Rexwinkel advised the current amount
exceeds $300 million dollars.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Foster, Grussendorf, Hanley, Hoffman,
Navarre, Parnell, Brown, Larson.
OPPOSED: Martin, Therriault.
Representative MacLean was not present for the vote.
The MOTION PASSED (8-2).
Representative Grussendorf MOVED to adopt Amendment #2 which
would reduce the unallocated reduction to Income and Excise
Tax Division within the Department of Revenue from $349.9
thousand dollars to $189.9 thousand dollars. The amendment
provides additional funding for the previous reduction which
resulted in the loss of three revenue auditors. He added
that action would create a total reduction of $9-$12 million
dollars in State revenues. Commissioner Rexwinkel spoke in
support of Amendment #2. Representative Martin OBJECTED.
Representative Brown expressed her concern with the
reduction. She recommended that a reduction be taken from
the Division of Gaming and/or Alcohol Beverage Control
Division instead of auditors. Representative Brown pointed
out that the departments function to collect revenue should
be supported.
Commissioner Rexwinkel emphasized the need for additional
funding within the Division of Income and Excise Tax. The
responsibilities of tax functions continues to increase,
whereas, funding continues to decrease. The situation is
becoming quite disproportionate.
Co-Chair Larson stated that Amendment #2 would be HELD for
further consideration.
Representative Grussendorf MOVED to adopt Amendment #3 which
would reduce the Oil and Gas audit vacancy factor from 7.6%
to 4%. He noted even at that level it would be a severe
vacancy factor reduction. The Department has indicated that
funding resulting from the amendment would provide an extra
1.5 audit positions. Each position has historically
generated up to $10 million dollars including additional
assessments.
Discussion followed among Committee members regarding
Amendment #3.
(Tape Change, HFC 94-91, Side 1).
24
Commissioner Rexwinkel responded that the goal of the
Division of Oil and Gas Audit is to become current on the
back log of tax cases. He emphasized that the initially
submitted budget would have adequately appropriated funds
for the Division to continue the program.
Representative Martin OBJECTED to Amendment #3.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown,
Foster.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
DEPARTMENT OF PUBLIC SAFETY
Representative Parnell MOVED to adopt Amendment #1 providing
for funds dedicated for emergency transport and crisis
advocacy grants within the Department of Public Safety. The
amendment would provide an increase of $70 thousand dollars
in personal services directed toward an additional
prosecutor in the Anchorage sex crime unit. There being NO
OBJECTION, it was adopted.
Co-Chair Larson noted that Amendment #2 would be HELD.
Representative Grussendorf MOVED to adopt Amendment #3 which
would add $100 thousand dollars to fire service training.
The increase would restore the component to the funding
recommended by the Governor. Representative Parnell
explained that the reduction resulted as part of the excess
program receipt authority.
RICHARD BURTON, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,
emphasized that if the program receipts were cut, the money
would not be available.
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, acknowledged that
specific programs had been prioritized by the Department.
He added that within fire prevention priorities, the
Department recommends maintaining the general fund to allow
grant flexibility for rural communities in which training is
a high priority. The cut falls below what could be
generated to continue that program receipt authority.
Representative Parnell OBJECTED to Amendment #3.
25
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Foster,
Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Parnell MOVED to adopt Amendment #2, intent
language which would describe accountability of the
program's safeguard through audit access and administrative
records while at the same time protecting the
confidentiality of those persons providing fish and wildlife
violation information.
Commissioner Burton remarked that the Department has no
control over that group. They are a private non-profit
entity. He said that the Department could support the
concept of the amendment but there would be no way to force
participation by the group. There being NO OBJECTION,
Amendment #2 was adopted.
Commissioner Burton commented that the net effect of the
budget caps to the Department will make it difficult to
implement proper services throughout the State.
DEPARTMENT OF NATURAL RESOURCES
Representative Hanley MOVED to adopt Amendment #1 which
would delete funding to the recorder's office component of
land development, resource development and then place funds
into the Nome recorder's office for management and
administration. Co-Chair Larson indicated that the
recorder's office is sustained 100% program by receipts.
NICO BUS, CHIEF, FINANCIAL SERVICES, DEPARTMENT OF NATURAL
RESOURCES, advised that a reduction in program receipts
within the Division of Lands would be a reduction to the
guide permit receipt increment.
Representative Brown noted her support in funding the Nome
recorder's office although she questioned deleting funding
to the land development component. She recommended
restoring all the program receipts to the recorder's office.
Representative Brown MOVED to divide the question and to add
an additional $120 thousand dollars in order to eliminate
26
the cut to program receipts within the recorder's offices.
Representative Hanley OBJECTED to dividing the question.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown.
OPPOSED: Martin, Parnell, Therriault, Foster,
Grussendorf, Hanley, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Mr. Bus explained that a $155 thousand dollar reduction
would result in the elimination of one regional manager, and
would close the Nome office which would then transfer its
work to Fairbanks. Representative Hanley asked if the $35
thousand dollar allocation would allow the Nome office to
remain open. Mr. Bus emphasized that the cost of running
the Nome office staff was $35 thousand dollars. Funds from
other offices are currently received in order to run the
office, and that the allocation would not be a full
restoration of funds necessary in order to run the Nome
office.
Representative Brown MOVED to amend Amendment #1 in order to
restore the amount deleted in Subcommittee of $155 thousand
dollars in program receipts. Representative Therriault
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman.
OPPOSED: Martin, Parnell, Therriault, Hanley,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Parnell, Therriault, Brown,
Foster, Grussendorf, Hanley, Hoffman,
Martin, Larson.
OPPOSED: 0
The MOTION PASSED (10-0).
Representative Hanley MOVED to adopt Amendment #2 which
27
would combine the components of Forest Management
Development and Agricultural Development which would remove
some overhead by saving administrative costs. There was
OBJECTION to Amendment #2.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Hanley,
Martin, Navarre.
OPPOSED: Foster, Grussendorf, Hoffman, Larson.
Representative MacLean was not present for the vote.
The MOTION PASSED (6-4).
Co-Chair Larson MOVED to adopt Amendment #3 which would
restore the program receipt authority funding for the
Agricultural Land Disposal Project. That funding was
reduced by action taken by the Subcommittee.
Mr. Bus explained that without the funding, the Division of
Agriculture would discontinue offering land parcel
contracts. Representative Navarre spoke against selling
state assets as program receipts. He thought that
restoration costs should be reflected as general fund
dollars rather than program receipts.
Co-Chair Larson MOVED to HOLD Amendment #3.
Representative Brown asked how Amendment #3 would affect
Project Hope. Mr. Bus did not know if the parcel in
question would include the Point Hope project. Amendment #3
was HELD.
Representative Brown MOVED to adopt Amendment #4 which would
restore funding to oil and gas development in the amount of
$60 thousand general fund dollars. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre.
OPPOSED: Therriault, Foster, Hanley, Martin,
Parnell, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
(Tape Change, HFC 94-91, Side 2).
28
Representative Navarre MOVED to adopt Amendment #5 which
would restore $72.5 thousand dollars to the water
development component within resources development which
would fund the division's director position.
Discussion followed between Committee members regarding the
productivity of the current division director in that
Department.
Representative Parnell MOVED TO AMEND Amendment #5 to
restore the division director position, $75.2 thousand
dollars, and implementing an unallocated reduction of $75.2.
Representative Navarre spoke in support of the motion to
amend. There being NO OBJECTION, it was adopted.
Representative Therriault OBJECTED to adopting Amendment #5
as amended.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Hanley, Navarre, Parnell,
Larson.
OPPOSED: Brown, Grussendorf, Hoffman, Martin,
Therriault.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED to adopt Amendment #6 which would
provide a partial restoration of $250 thousand dollars to
the parks division in order to prevent the closure of parks.
Representative Therriault OBJECTED.
REPRESENTATIVE JOHN DAVIES pointed out that failure to adopt
the amendment would close seventeen parks in the State.
Representative Therriault stated that park lands should not
be added to the State when the current parks need attention.
He suggested a "no net gain" policy for parks.
Mr. Bus provided the Committee with a list of the seventeen
park units which would be closed without additional funding.
[Copy on file]. Representative Brown spoke in favor of
Amendment #6 and maintaining the parks which currently exist
and are extensively used by both tourists and local
residents. The parks along the highway system are heavily
used and they are not adequately accommodating the amount of
traffic. These parks are a resource development for the
state's tourism industry.
Representative Davies echoed the comments of Representative
Brown. Many park facilities are currently in bad disrepair
29
and continue to deteriorate. He emphasized that to attract
tourists, the facilities need to be kept at least clean.
Representative Therriault MOVED TO AMEND Amendment #6
deleting program receipts, changing the general fund to $150
thousand dollars. There being NO OBJECTION, it was adopted.
Representative Martin OBJECTED to adopting Amendment #6 as
amended.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, Navarre,
Therriault, Brown, Larson.
OPPOSED: Hanley, Martin, Parnell.
Representative MacLean was not present for the vote.
The MOTION PASSED (7-3).
(Tape Change, HFC 94-92, Side 1).
Representative Brown MOVED to adopt Amendment #7 which would
restore the $100 thousand dollar transfer from DGGS for the
Information Resources Management component. Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Navarre, Brown.
OPPOSED: Hanley, Parnell, Therriault, Foster,
Larson.
Representatives Martin and MacLean were not present for the
vote.
The MOTION FAILED (4-5).
THE DEPARTMENT OF LAW
Representative Navarre MOVED to adopt Amendment #1 which
would add a prosecutor in the Kenai office in order to work
on Domestic Violence and Sexual Assault cases. He pointed
out that currently Kenai has a backlog of seventy-five
felony cases.
DEAN GUANELI, CHIEF, ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, explained that the situation in
Kenai within the Department's criminal division is in a
crisis mode.
He reiterated that the Governor, the Attorney General and
30
the Domestic Council on Sexual Assault support the proposed
position.
Representative Parnell MOVED TO AMEND Amendment #1 which
would provide an unallocated reduction of $90 thousand
dollars in the University of Alaska's budget to fund the
increment. Mr. Guaneli understood that the intent of the
language proposed by Representative Parnell would provide
funding for an Anchorage position to combat sexual assault
and domestic violence and would not fund a position in
Kenai. Representative Navarre asked the impact of removing
the requested funding from Legal Services.
BRUCE BOTELHO, ATTORNEY GENERAL, DEPARTMENT OF LAW, replied
that it would be difficult to remove money from the civil
division and place it into the criminal division. The civil
division is limited to three areas, natural resource's
lawyers, human services' lawyers and governmental affairs
lawyers. The three functions performed by civil division
attorneys deal with core functions and have been "cut to the
bone". He said that the shift would not be an effective way
to manage the funds.
Representative Navarre noted that he would support a
reduction in the legislative budget in order to cover the
costs proposed in Amendment #1, while noting his objection
to removing the money from the University's budget.
Representative Martin OBJECTED to adopting Amendment #1.
Amendment #1 was HELD in Committee for further
consideration.
Representative Hoffman requested to HOLD Amendment #2. The
amendment would fund one additional prosecutor in Anchorage
dealing with domestic violence and sexual assault and would
result in a decrement to Legal Services operations #0093.
Representative Brown asked for a summary of the Department
of Law subcommittee allocations resulting from the
Constitutional Budget Reserve and other sources.
JOY HOGAN, STAFF, REPRESENTATIVE RON LARSON, explained that
the Department of Law would be allocated, as recommended by
the House subcommittee, $458 thousand dollars in federal
funds, $22 million dollars in general funds and $32 million
dollars resulting from other funds.
Discussion followed between Representative Brown, Attorney
General Botelho and Representative Larson regarding the
funding sources for the Department. Representative Brown
asked if 100% of tax litigation would be charged to the
Budget Reserve. Co-Chair Larson countered that the proposed
policy would guarantee that beneficiaries pay for the cost
31
of the benefit. Attorney General Botelho added that all oil
and gas taxation money would go directly into the budget
reserve.
(Tape Change, HFC 94-92, Side 2).
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Representative Brown MOVED and explained that Amendment #1
and Amendment #8 were the same. The proposed increment
would restore the general fund to the environmental crimes
unit, a joint effort between the Department of Environmental
Conservation, the Department of Public Safety and the
Department of Law. Amendment #8 would provide funding to
establish the effort as outlined in the letter from the U.S.
Environmental Protection Agency Region X, Steve Torok, Chief
State Operations Section Alaska Operations. [Copy on file].
JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, strongly endorsed the comments of the
Environmental Protection Agency. Representative Therriault
OBJECTED stating that the information would not be
statutorily required. Commissioner Sandor stressed that the
environmental crime unit was established two years ago and
that it was very important to the business of the State.
REPRESENTATIVE DAVID FINKELSTEIN noted that the State has
the potential to generate money on cases which the
Department of Law litigates and that further funding would
encourage that action.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Parnell, Brown, Grussendorf,
Larson.
OPPOSED: Hanley, Martin, Therriault, Foster.
Representatives Navarre and MacLean were not present for the
vote.
The MOTION PASSED (5-4).
Representative Brown MOVED to adopt Amendment #7 which would
restore funding for the Pollution Prevention Program. The
program reduces current costs to state and local governments
by providing technical assistance to prevent waste and
pollution. Commissioner Sandor spoke in support of
Amendment #7 explaining that the effort in pollution
prevention has been an important and successful program to
the current Administration.
32
Representative Therriault questioned the funding source of
the account and OBJECTED to adopting Amendment #7.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Navarre, Brown, Grussendorf.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #3 which would
reduce the general fund receipt authority by $100 thousand
dollars for air quality management. She added that because
the program experienced delays in adopting the regulations,
it was unlikely that the program would be able to collect
the legally required fees to operate.
Commissioner Sandor spoke in support of Amendment #3 which
would allow the Department to meet the objectives
recommended by the Department. Representative Therriault
OBJECTED.
BOB POE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, elaborated that the amendment
would provide funds to provide for the required federal
regulations.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Martin, Parnell, Therriault, Foster,
Hanley, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #4 which would
restore funds to the response fund appropriation for the
Spill Technology Review Council which would be administered
by the University of Alaska. She added that the council's
role would be to assess new and developing technologies; to
respond. contain and clean up hazardous spills; and act as
the research review board recommending to the State projects
that should be investigated in order to qualify for grant
funding. The investment in spill clean up research is one
of the permitted uses of the response fund.
33
REPRESENTATIVE JOE GREEN spoke in support of Amendment #4
stating that the industries watch support the 470 Fund also
support Amendment #4. He added that the amendment would
provide funding for essential research.
(Tape Change, HFC 94-93, Side 1).
MEAD TREADWELL, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, added that the amendment would
provide the council the authority to establish research. He
stated that last year the legislature funded a restricted
grant for research although at this time there is no
remaining money in that fund.
Representative Brown clarified that Amendment #4, #5 and #6
are related. Amendment #4 would provide the necessary funds
from the Response Fund, whereas, Amendment #5 would provide
funds from the Mitigation Account.
Commissioner Sandor itemized the functions of the Council:
1. Targeting research needs.
2. Allow the State to leverage additional resources
for grants and contracts.
3. Allow the State to leverage existing federal
investments toward the state's benefit.
Discussion followed among Committee members, Representative
Green and Commissioner Sandor regarding concerns with the
funding for Amendment #4. Representative Green pointed out
that without funding, the discovery of new hydrocarbons
would be inhibited. He emphasized the future importance of
the issue. Representative Therriault OBJECTED to adopting
Amendment #4.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Therriault, Brown, Grussendorf,
Hoffman.
OPPOSED: Parnell, Foster, Hanley, Martin, Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED TO WITHDRAW Amendment #5. There
being NO OBJECTION, it was withdrawn.
Representative Brown MOVED to adopt Amendment #6 which would
restore the Department staff support for the Spill
Technology Review Council. The position had been funded
from the Oil and Hazardous Substance Spill Response Fund and
34
would serve the council to review spill technology research
proposals. Representative Brown suggested a technical
change to Amendment #5, deleting $51.9 and inserting $51.5.
There was NO OBJECTION to the technical change.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Navarre, Larson.
OPPOSED: Parnell, Therriault, Foster, Hanley,
Hoffman, Martin.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #9 which would
allow the Storage Tank Assistance Program to continue
responsibilities for administrative and technical
assistance. She added that $4.5 million dollars would be
eliminated for the current fiscal year request for grants to
private businesses. The program would have and expense of
$1.5 million dollars to maintain operations.
Representative Navarre voiced continued support for the
program, however, recommended changing the funding sources
to an one cent increase to the motor fuel tax.
Representative Brown MOVED a technical change to Amendment
Amendment #8, deleting the $1,574.5 million dollars and
inserting $6537.7 million dollars.
JOHN BURNETT, PROGRAM MANAGER, UNDERGROUND STORAGE TANK
PROGRAM, DIVISION OF SPILL PREVENTION AND RESPONSE,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, informed the
Committee that the program has been in existence for three
years and handles the contaminated sites problem. The
program directly affects the state's drinking water
resources.
Mr. Treadwell interjected that the Department and the
Governor have proposed a one cent per gallon motor fuel tax
dedicated to the program which would raise between $4.5 and
$5 million dollars. He added that the Department would not
support the amendment.
Representative Hoffman advised that many of the storage
tanks in rural Alaska are above ground and he stated that
the current program was discriminatory. Amendment #9 was
HELD for further consideration.
35
DEPARTMENT OF FISH AND GAME
Representative Hoffman explained Amendment #1 which would
restore funding to the Bering Sea Fisherman's Association in
the amount of $1,646.0 million dollars through the
Department of Community and Regional Affairs and would allow
the Alaska State Troopers, Department of Public Safety, to
serve as the pass through administrator for a $56.0 thousand
dollar grant to Special Olympics. At the same time the
amendment would provide for an insertion of $500 thousand
dollars for the Yukon River Drainage Fisheries Association
in the Department of Fish and Game.
Representative Hoffman MOVED to adopt Amendment #1A which
would provide an increment to the Department of Fish and
Game of $500 thousand dollars for fisheries management while
deleting that amount in the tourism component within the
Department of Commerce and Economic Development.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME, indicated that there was a system wide crash in
western Alaska to the chum salmon harvest which left a
tremendous effect on both the subsistence and commercial
fisheries in those areas. He recommended that the funding
would be of tremendous use to the people of Alaska.
Representative Hanley OBJECTED to Amendment #1A because it
would replace one of the designated grants previously vetoed
to the Yukon River Drainage Fisheries Association.
Representative Hoffman MOVED to amend Amendment #1A removing
the Yukon River Drainage Fisheries Association and replacing
it with the other designated grants. There being NO
OBJECTION, it was amended to remove that segment.
Representative Therriault MOVED to divide the amendment.
Representative Hoffman OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Therriault, Larson.
OPPOSED: Brown, Foster, Grussendorf, Hoffman,
Martin, Navarre, Parnell.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Representative Parnell MOVED to amend Amendment 1A by
deleting the decrement to the Tourism Development Office and
then inserting a decrement of $238 thousand dollar
unallocated reduction to the University of Alaska.
Representative Hoffman OBJECTED.
36
(Tape Change, HFC 94-93, Side 2).
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hanley, Hoffman,
Martin, Navarre, Therriault, Brown,
Larson.
OPPOSED: Parnell.
Representative MacLean was not present for the vote.
The MOTION FAILED (1-9).
Representative Brown MOVED to take the deletion from the
Office of International Trade. Representative Martin
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hanley, Hoffman, Navarre,
Parnell, Therriault, Brown, Foster.
OPPOSED: Martin, Larson.
Representative MacLean was not present for the vote.
The MOTION PASSED (8-2).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Hoffman, Navarre, Brown, Foster,
Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Therriault MOVED to adopt Amendment #2 which
would eliminate the last designated grant in the Department
of Fish and Game to the Walrus Commission. Mr. Campbell
commented that the Eskimo Walrus Commission works to manage
marine mammals particularly in northwest Alaska and at the
same time interacts with the federal government.
Representative Foster OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Martin, Navarre, Parnell, Therriault,
Hanley.
37
OPPOSED: Hoffman, Brown, Foster, Grussendorf,
Larson.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Grussendorf MOVED to adopt Amendment #3 which
would restore $460 thousand dollars back to the Snettisham
Hatchery. He informed the Committee that the Northern
Southeast Regional Aquaculture Association would like to
assume responsibilities of the hatchery by 1998.
Representative Hanley noted that the Department recommended
that the hatcheries be phased out. Mr. Campbell replied
that the Department reluctantly offered to relinquish
Snettisham and understands that "going out business" is not
a good idea. He agreed that the Department is facing
serious cuts and that they have no choice but to offer up
the hatcheries. He summarized that when the hatchery is
shut down, the State would be responsible for dismantling
the facility.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hoffman, Larson.
OPPOSED: Martin, Navarre, Parnell, Therriault,
Brown, Foster, Hanley.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
Representative Therriault MOVED to adopt Amendment #4, a
reduction which would eliminate support for eighty advisory
committees and six regional councils, as well as travel
funds for two committee meetings.
Mr. Campbell explained the impact of the amendment. Last
year, the Department eliminated the specific support
personnel for all of the urban advisory committees. The
effect of the amendment would make the advisory system
completely dysfunctional.
Representative Therriault MOVED TO AMEND Amendment #4
deleting $269 thousand dollars from the commission rather
than the original figure of $569 thousand dollars.
REPRESENTATIVE IRENE NICHOLIA stressed how essential the
advisory council is to rural Alaskan people. Representative
Hoffman added that the elimination of the advisory committee
and regional council could cause violence in rural areas by
withdrawing them from the process. Representative Hoffman
38
OBJECTED on the motion to amend.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Foster,
Grussendorf, Hanley, Martin.
OPPOSED: Brown, Hoffman, Larson.
Representative MacLean was not present for the vote.
The MOTION PASSED (7-3).
(Tape Change, HFC 94-94, Side 1).
Mr. Campbell advised that the federal government has formed
ten regional subsistence advisory committees around the
State. The federal government is advertising that they have
the "better" system. He asked Committee members to question
what would happen if the local advisory committees disappear
in rural areas. Representative Grussendorf emphasized that
eliminating the council would be a mistake for the future of
the State.
REPRESENTATIVE CLIFF DAVIDSON disclosed that the regional
advisory council is important to the process of recruiting
data for management information.
Representative Therriault MOVED TO WITHDRAW Amendment #4.
There being NO OBJECTION, it was withdrawn.
Representative Parnell MOVED TO WITHDRAW Amendment #5. Mr.
Campbell explained the impact of the amendment could greatly
hamper development in the State. There being NO OBJECTION
to withdrawing Amendment #5, it was so ordered.
UNIVERSITY OF ALASKA
Representative Hanley MOVED to adopt Amendment #1 which
would discontinue new admits to the WAMI program.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
ADMINISTRATIVE OFFICES, UNIVERSITY OF ALASKA, replied that
students had already been admitted for next fall. To
eliminate the program, the funds would have to be withdrawn
a year and half before the fact. She added that there are
five full time faculty involved with the program which also
teach other classes.
Committee members discussed with Ms. Redman the elimination
of the WAMI program.
REPRESENTATIVE JOHN DAVIES stated that it was the intent of
39
the review committee to investigate the WAMI program during
the interim and then provide a policy recommendation to the
Legislature. He added the importance of the program to
medical and health care provided in rural Alaska.
Co-Chair Larson MOVED to amend Amendment #1 to direct that:
"New admits to WAMI cease until such time as the Committee
reports back to the Legislature in response to the
legislative review of the WICHE and WAMI program".
Representative Navarre OBJECTED. Representative Davies
voiced his support of the change.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Foster, Hoffman, Martin,
Larson.
OPPOSED: Parnell, Brown, Grussendorf, Hanley,
Navarre.
Representative MacLean was not present for the vote.
The MOTION FAILED (5-5).
Representative Martin OBJECTED to adopting Amendment #1.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Foster, Hanley,
Navarre, Parnell, Larson.
OPPOSED: Grussendorf, Hoffman, Martin.
Representative MacLean was not present for the vote.
The MOTION PASSED (7-3).
Representative Brown MOVED to adopt Amendment #2, a letter
of intent to establish an interim committee to review the
State's continued participation in the WAMI medical school
and the WICHE interstate compact. Representative Martin
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Hoffman, Navarre, Parnell, Therriault,
Larson.
OPPOSED: Martin.
Representative MacLean was not present for the vote.
The MOTION PASSED (9-1).
40
Representative Parnell MOVED to adopt Amendment #3 which
would provide an increase in the contractual services to
fund security upgrades requested by the Court System and
would delete $300 thousand dollars from the University's
statewide services component. Ms. Redman replied that the
statewide services component provides support functions to
the campuses. If the funds are reduced, the costs would
then be assumed by the campuses for these functions that
must continue to be provided and would then be made
available through the user fees which are currently
designated for other costs.
Representative Grussendorf voiced concern of an earlier $700
thousand dollar reduction to the University's budget. Ms.
Redman reiterated that the reduction would create fewer
services provided to each campus this coming year.
Representative Parnell MOVED TO WITHDRAW Amendment #3.
There being NO OBJECTIONS, it was withdrawn.
(Tape Change, HFC 94-94, Side 2).
Representative Hanley MOVED to adopt Amendment #4 explaining
that the Mental Health Board would not support total funding
of the Master of Social Work (MSW) program being drawn from
MHTIA. He thought that University receipts which are
anticipated to increase by $3 million dollars in FY95 should
supplant half of the MSW budget. Representative Grussendorf
OBJECTED.
Ms. Redman confirmed that the Mental Health board last year
supported funding of the MSW program. She stressed that the
amendment would gut the current program in the base budget.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Parnell, Therriault, Larson.
OPPOSED: Foster, Grussendorf, Hoffman, Martin,
Navarre, Brown.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Hanley MOVED to adopt Amendment #5 which
would eliminate the increment proposed by the Governor for
the Alaska Natural Heritage Program at ISER. He added that
$219 thousand dollars would remain in the Natural Heritage
Program.
41
ALISON ELGEE, BUDGET DIRECTOR, UNIVERSITY OF ALASKA,
reported that the increment had not been funded, and that it
was a section of the Board of Regent's request. A portion
of the funding currently does exist within the base of the
University budget. She added that the remainder has been
funded each year through a capital appropriation.
Representative Hanley MOVED TO WITHDRAW Amendment #5. There
being NO OBJECTION, it was withdrawn.
Representative Hanley MOVED to adopt Amendment #6. He
pointed out that the University system proposes to realize a
$3 million dollar increase in student receipts for FY95.
The new receipts should replace the reduced general fund.
Ms. Elgee summarized that the student receipts are used to
pay the teacher's salaries. Representative Therriault
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Navarre, Parnell, Larson.
OPPOSED: Grussendorf, Hoffman, Martin,
Therriault, Brown, Foster.
Representative MacLean was not present for the vote.
The MOTION FAILED (4-6).
Representative Grussendorf introduced Amendment #7 for
discussion purposes. He emphasized that there are many
maintenance problems in the University system at this time.
The amendment would provide $2 million dollars for annual
building, maintenance, renewal and replacement of
facilities. Representative Grussendorf MOVED TO WITHDRAW
Amendment #7. There being NO OBJECTIONS, it was withdrawn.
Representative Grussendorf MOVED to adopt Amendment #8 which
addresses the current University delivery systems,
technology and the effect on the outlying campuses. Ms.
Elgee identified the primary problem to result from the
reduction to the University's budget as proposed by the
Subcommittee would be the jeopardy of the University's
ability to continue to implement new initiatives.
Ms. Redman added that rural community campuses currently
offer a limited curriculum, primarily developmental and
lower division courses to enable students to go on to the
Anchorage or Fairbanks campuses. Distance delivery will
allow expansion for a marginal cost and offer a greater
diversity of courses at the rural communities.
42
Representative Davidson reminded the Committee members of
the type of students who benefit from such funds and said
they should be supported in their studies.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Brown, Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Foster, Larson, Navarre.
Representative MacLean was not present for the vote.
The MOTION FAILED (3-7).
HB 370 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 5:50 P.M.
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