Legislature(1995 - 1996)
03/30/1995 08:50 AM House FIN
| Audio | Topic |
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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 30, 1995
8:50 A.M.
TAPE HFC 95 - 72, Side 2, #000 - end.
TAPE HFC 95 - 73, Side 1, #000 - end.
TAPE HFC 95 - 73, Side 2, #000 - end.
TAPE HFC 95 - 74, Side 1, #000 - #544.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 8:50 A.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division;
Representative Caren Robinson; Larry Jones, Director,
Division of Administrative Services, Department of
Environmental Conservation; Michele Brown, Deputy
Commissioner, Department of Environmental Conservation;
Wendy Redman, Vice President, University Relations,
University of Alaska; Arthur Snowden II, Administrative
Director, Alaska Court System.
SUMMARY
HB 100 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art.
IX, sec. 17(c), Constitution of the State of
Alaska, from the constitutional budget reserve
fund; and providing for an effective date.
HB 101 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
1
HB 100 and HB 101 were HELD in Committee for
further consideration.
HOUSE BILL 100
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
HOUSE BILL 101
"An Act making appropriations for operating expenses
for certain programs for which the costs are derived
from mandated formulas or criteria, and for expenses
for certain leases and contracts for state services and
operations; and providing for an effective date."
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC)
Co-Chair Foster MOVED to amend Amendment #1 by deleting $500
thousand dollars and inserting $450 thousand dollars. There
being NO OBJECTION, it was amended. Co-Chair Foster MOVED
to adopt Amendment #1. There being NO OBJECTION, it was
adopted.
Representative Grussendorf MOVED to adopt Amendment #2.
REPRESENTATIVE CAREN ROBINSON spoke in support of Amendment
Alaska and the entire State. She stated that the primary
function of the lab was to certify all other labs in the
State, as well as performing all the State's forensic work.
MICHELE BROWN, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2
explaining that lab did much of the State's chemistry work.
She echoed that the strength of the lab is forensic
inorganic spill source matching.
Representative Therriault OBJECTED to adopting Amendment #2.
He thought that it was not important that this capability
remain in State. He added that an audit of the lab has
indicated that it is very expensive to maintain and
recommended that a contractual arrangement be made with a
lab in Washington. Ms. Brown advised that the proposed
reduction would not close the lab, although would severely
limit it's functions.
A roll call vote was taken on the MOTION to adopt Amendment
2
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Therriault, Kelly, Kohring, Martin,
Mulder, Parnell, Hanley
Representative Navarre was not present for the vote.
The MOTION FAILED (3-7).
Representative Brown MOVED to adopt Amendment #3.
Representative Therriault OBJECTED. Representative Brown
explained that amendment would restore $34 thousand dollars
to the DEC Commissioner's Office which would then be RSA'd
over to the Department of Law to pay for a paralegal
position for environmental crimes.
Ms. Brown added that the position could nearly pay for
itself within a year with fines recovered. Representative
Therriault pointed out that the position had been vacant for
a while and he felt that the current funding was adequate.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley, Foster.
The MOTION FAILED (3-8).
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)
Co-Chair Foster MOVED to amend Amendment #1 by not deleting
the Agency BRU component of Environmental Conservation,
Administration, Office of the Commissioner, reduction of
personal services by $50 thousand dollars and thus changing
the addition for Child Assistance, Head Start Grants to $300
thousand dollars to grants.
Co-Chair Hanley asked the total amount being cut from the
Head Start budget. Representative Brown stated that a total
of $5.543 million dollars would be cut through the House
proposed budget. She requested that the additional $50
thousand dollars be found from another source in order that
a reduction from that component be avoided. Discussion
followed among Committee members regarding the reduction.
Representative Brown noted for the record her objection to
reducing the level of effort within that Division. There
being NO OBJECTION, it was amended.
Co-Chair Foster MOVED to adopt amended Amendment #1. There
3
being NO OBJECTION, it was adopted.
Representative Brown MOVED to amend Amendment #2 by deleting
$350 thousand dollars and inserting $50 thousand dollars
which would provide the balance of the funding needed for
Head Start grants. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #3 which would
result in a 5% instead of 10% reduction in revenue sharing
and municipal assistance. Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kohring, Martin, Mulder, Navarre,
Parnell, Therriault, Kelly, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF CORRECTIONS
Representative Grussendorf MOVED to adopt Amendment #1.
Representative Mulder OBJECTED. Representative Grussendorf
commented that the amendment would provide funding for State
contracts to local municipalities in order to provide
relieve resulting from State obligations. He emphasized
that the amendment would restore funding to contractual
arrangements with communities.
Representative Mulder interjected that there had been a
$4.64 million dollar increase as proposed by the
Subcommittee, which would amount to a twenty percent
increase (20%) partially to be used for contracts and
equipment upgrades.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Kelly, Kohring, Martin, Mulder,
Therriault, Parnell, Hanley, Foster
The MOTION FAILED (3-8).
4
UNIVERSITY OF ALASKA
Co-Chair Hanley MOVED to amend Amendment #1 deleting $20.5
thousand dollars and inserting $20.8 thousand dollars. He
noted that incorrect numbers add been originally typed in.
There being NO OBJECTION, it was amended.
Co-Chair Hanley MOVED to adopt Amendment #1. Representative
Navarre OBJECTED for purposes of discussion. Co-Chair
Hanley explained that the amendment would add $1 million to
the University, leaving a $3 million dollar unallocated
reduction.
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, discussed the effect on the
University. She explained that the funds needed to address
fixed University costs next year would be $7 million
dollars. An additional $3 million dollar reduction would be
experienced in loss of part time faculty and student
employment.
Representative Brown commented on the loss of part time
faculty to the Anchorage campus, noting that campus is
overly reliant on part time faculty.
(Tape Change, HFC 95-73, Side 1).
Ms. Redman pointed out that Alaska is above the national
average tuition rate for Western states. Until now, the
University budget has kept up with the student growth
through tuition. The Anchorage campus has considered
additional higher fees for special programs. Representative
Brown asked how many part time faculty would be lost on the
Anchorage campus. Ms. Redman responded that the greatest
impact would be to that faculty hired when over registration
occurs in the fall. She emphasized that there will be no
flexible money available to the University.
Representative Parnell questioned where the University will
turn over the long range as the budget continues to be cut.
Ms. Redman stated that the program assessment process
established criteria for a three year assessment and has
initiated the process of determining which programs would be
phased out. Administrative structures are being combined
and there is an agreement that faculty vacancies will not be
filled nor new standards established. Ms. Redman added that
quick reductions have a undermining effect on the University
process.
Representative Navarre recommended that teachers spend more
time in the classrooms. Ms. Redman concurred noting that
5
from the results of the assessment, all faculty will be
moving to nine month contracts. The University President
has mandated that beginning September, 1995, there will be a
20% increase in faculty productivity. Any faculty member
who receives general fund money must teach. Representative
Navarre compared the amount of time that the K-12 teachers
spend in the classroom. Ms. Redman countered Representative
Navarre's argument noting that the situation was quite
different.
Representative Mulder asked the University's intention in
closing facilities around the State. Ms. Redman replied
that the University does not have plans to close any of the
extended sites. She noted that most of the extended sites
are not expensive to run in comparison to the student
tuition generated at those spots, emphasizing that the rural
campuses provide educational delivery to rural Alaska.
Representative Mulder countered that the cost of delivery is
expensive, suggesting that sites be consolidated. Ms.
Redman stressed that the curriculum is limited at the
extended sites. No opportunities are being expanded,
although core requirements are being offered in order that
students who want to get into a university will qualify.
There being NO OBJECTION to Amendment #1, it was adopted.
Co-Chair Hanley MOVED to adopt the Intent Language. The
language would establish the it be the intent of the
Legislature that the Board of Regents close the WAMI program
to all new entrants, which will result in a $160.3 thousand
dollar savings.
Ms. Redman noted that new students had already been admitted
in January for Fall, 1995. The University is thus committed
for the next cycle. Representative Mulder asked the number
of students who return to the state having completed the
program. He noted that the debt load of the average student
having completed the program with WAMI assistance is $50 -
$70 thousand dollars.
Co-Chair Hanley asked the number of students in Alaska that
go to medical school. Ms. Redman advised there are 40
students total in the program, although did not know the
total number of Alaskan students in medical school. She
added that other states are currently eliminating
opportunities for out-of-state students and that these
programs buy opportunities for Alaskan students. The
University of Alaska can not offer these programs and
opportunities in Alaska.
Representative Kohring asked how many students who complete
6
the program come back to Alaska. Ms. Redman stated that
half of the students return to the State, although since
Alaska does not have a residency program in State, these
students are at a disadvantage. Many doctors continue their
practice where they do their residency. Representative
Mulder OBJECTED to the Intent Language.
A roll call vote was taken on the MOTION to adopt the Intent
Language.
IN FAVOR: Kohring, Navarre, Parnell, Therriault,
Grussendorf, Hanley
OPPOSED: Mulder, Brown, Foster
Representatives Martin and Kelly were not present for the
vote.
The MOTION PASSED (6-3).
LEGISLATURE
Representative Navarre MOVED to adopt Amendment #1 which
would reduce legislative salaries and allowances.
Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Martin, Mulder, Parnell, Therriault,
Kelly, Kohring, Hanley
Co-Chair Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Navarre MOVED to adopt Amendment #2.
Representative Mulder OBJECTED. Representative Brown noted
that the amendment would restore the Legal Services grant to
the Governor's amended request. The addition would allow
the Kotzebue and Nome offices to remain open.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Mulder, Parnell, Therriault, Kelly,
Kohring, Martin, Hanley
Co-Chair Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Navarre MOVED to adopt Amendment #3.
7
Representative Mulder OBJECTED. Representative Navarre
explained that Amendment #3 would restore funding to the
FY96 Governor's amended level. He added that $500 thousand
dollars would replace lost federal funds and assist in
welfare reform efforts by increasing the opportunity for
Alaska Families with Dependent Children (AFDC) clients to
receive the training and skills needed to get jobs.
(Tape Change, HFC 95-73, Side 2).
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Parnell, Therriault, Kelly, Kohring,
Martin, Mulder, Hanley, Foster
The MOTION FAILED (3-8).
Representative Navarre MOVED to adopt Amendment #4.
Representative Therriault OBJECTED. Representative Brown
explained that $445 thousand dollars would allow the Arts
Council the means to collect the federal dollars.
Representative Kohring voiced his concern with the
philosophy and the types of arts funded by the National
Endowment for the Arts (NEA).
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Parnell, Therriault, Kelly, Kohring,
Martin, Mulder, Foster, Hanley
The MOTION FAILED (3-8).
Representative Kelly advised that the Arts Council informed
him that with the current level of funding, that
organization could potentially be zeroed out. He
recommended taking the allocated money from the Arts Council
and placing it into the Head Start allocation.
Representative Kelly offered that language as an conceptual
amendment.
The House Finance Committee convened for one hour.
DEPARTMENT OF EDUCATION (DOE)
Representative Kelly MOVED to adopt Amendment #8 which would
move $50 thousand dollars from the Alaska State Council on
the Arts to the Head Start grants. Representative Brown
OBJECTED. She stressed the importance of an art's effort
being maintained in Alaska. Representative Martin noted
8
that the arts should be funded through private dollars.
Representative Brown MOVED to divide the question.
Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION to divide the
question.
IN FAVOR: Therriault, Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Hanley, Foster
The MOTION FAILED (4-7).
Representative Kohring noted that he does support the arts
although thought that the private sector should provide the
funding. He noted that the issue was one of establishing
priority State economics.
Representative Brown MOVED to strike the funding source for
the arts and insert the Alaska Tourism Marketing Council
(ATMC). Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley, Foster
The MOTION FAILED (3-8).
Representative Navarre MOVED to strike the funding source
for the arts changing it to the legislative operating
budget, salaries and allowances. Representative Mulder
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Therriault, Brown
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Foster, Hanley
The MOTION FAILED (4-7).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Kelly, Kohring, Martin, Mulder, Hanley,
Foster
OPPOSED: Navarre, Parnell, Therriault, Brown,
Grussendorf
9
The MOTION PASSED (6-5).
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)
Representative Brown MOVED to adopt Amendment #3. Co-Chair
Hanley OBJECTED. Representative Brown noted that the
amendment would result in a 5% rather than a 10% reduction
in revenue sharing and municipal assistance.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kohring, Martin, Mulder, Navarre,
Parnell, Therriault, Kelly, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)
Representative Brown noted that the Intent Language
specifically addressed the Fairbanks Native Association
specifying that the grant money not be spent on lobbying
activities.
Representative Parnell MOVED an amendment to the amendment,
deleting "Fairbanks Native Association" and inserting "all
departments". He stated that would clarify that no lobbying
activity for any group could occur with State funds.
Representative Brown disagreed. She stated that her intent
was to address a specific problem.
Following Committee discussion, Representative Brown MOVED
to amend the proposal by adding the language proposed by
Representative Parnell as an addition to the amendment
rather than a deletion.
A roll call vote was taken on the MOTION to amend the
amendment.
IN FAVOR: Martin, Navarre, Brown, Grussendorf
OPPOSED: Mulder, Parnell, Therriault, Kelly,
Kohring, Hanley, Foster
The MOTION FAILED (4-7).
Discussion followed between Committee members regarding the
effect on other organizations and public dollars. Co-Chair
Hanley noted that statute already prohibits the use of grant
monies to be used for lobbying activities. Representative
Brown MOVED to WITHDRAW the amendment. There being NO
OBJECTION, it was withdrawn.
10
(Tape Change, HFC 95-74, Side 1).
DEPARTMENT OF NATURAL RESOURCES (DNR)
Representative Therriault MOVED to adopt Amendment #12 which
would provide contract funds for specific contractual
projects. Co-Chair Hanley understood that unless the
allocation is granted, the State will not continue to
receive revenue generated from specified projects.
Representative Brown supported the amendment indicating that
such language would provide a typical scope of what the
Department does. There being NO OBJECTION, Amendment #12
was adopted.
Representative Brown MOVED to adopt Intent Language
specifying Legislature's intent that no new agricultural
land disposal be initiated in FY 96. Representative Brown
pointed out that the current default rate on agricultural
land disposal averages 65.4%. She stressed that this was
not a viable program.
Representative Navarre voiced his frustration with the
disposal plan. He commented that establishing a home site
or homestead program would make better sense and would have
less default possibilities.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Navarre, Hanley
OPPOSED: Parnell, Therriault, Grussendorf, Kelly,
Kohring, Martin, Mulder, Foster
The MOTION FAILED (3-8).
DEPARTMENT OF REVENUE (DOR)
Co-Chair Hanley MOVED to adopt Amendment #7. He advised
that the amendment would restore the Office of Public
Advocacy and the Public Defender Agency to the FY95 funding
level. There being NO OBJECTION, it was adopted.
ALASKA COURT SYSTEM
Representative Navarre MOVED to adopt Amendment #1. He
explained that the amendment would consist of two portions.
The first section would add funds for the trial costs of the
Arctic North Slope (ANS) Royalty Case. The second portion
of the amendment would add additional funding for anger
management.
ARTHUR SNOWDEN II, ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM, testified in support of Amendment #1. He admitted
11
that he did not know how long the ANS trial would continue.
He remarked that the second portion of the amendment would
address anger management, noting that both portions are
court mandated. Mr. Snowden asked if the Court System could
return to the Legislature and request supplemental funding
if the case went over the anticipated time frame.
Representative Parnell MOVED to divide the question and
requested that the Court System be responsible for the $52
thousand dollars request for the ANS case; he agreed that
they should return for supplemental funding next year.
Representative Mulder OBJECTED to dividing the question.
Following discussion among Committee members, Representative
Navarre MOVED TO WITHDRAW Amendment #1. There being NO
OBJECTION, it was withdrawn.
HB 100 and HB 101 were HELD in Committee for further
consideration. #
ADJOURNMENT
The meeting adjourned at 12:05 P.M.
HOUSE FINANCE COMMITTEE
MARCH 30, 1995
8:50 A.M.
TAPE HFC 95 - 72, Side 2, #000 - end.
TAPE HFC 95 - 73, Side 1, #000 - end.
TAPE HFC 95 - 73, Side 2, #000 - end.
TAPE HFC 95 - 74, Side 1, #000 - #544.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 8:50 A.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division;
Representative Caren Robinson; Larry Jones, Director,
Division of Administrative Services, Department of
12
Environmental Conservation; Michele Brown, Deputy
Commissioner, Department of Environmental Conservation;
Wendy Redman, Vice President, University Relations,
University of Alaska; Arthur Snowden II, Administrative
Director, Alaska Court System.
SUMMARY
HB 100 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art.
IX, sec. 17(c), Constitution of the State of
Alaska, from the constitutional budget reserve
fund; and providing for an effective date.
HB 101 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
HB 100 and HB 101 were HELD in Committee for
further consideration.
HOUSE BILL 100
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
HOUSE BILL 101
"An Act making appropriations for operating expenses
for certain programs for which the costs are derived
from mandated formulas or criteria, and for expenses
for certain leases and contracts for state services and
operations; and providing for an effective date."
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC)
Co-Chair Foster MOVED to amend Amendment #1 by deleting $500
thousand dollars and inserting $450 thousand dollars. There
being NO OBJECTION, it was amended. Co-Chair Foster MOVED
to adopt Amendment #1. There being NO OBJECTION, it was
adopted.
Representative Grussendorf MOVED to adopt Amendment #2.
13
REPRESENTATIVE CAREN ROBINSON spoke in support of Amendment
Alaska and the entire State. She stated that the primary
function of the lab was to certify all other labs in the
State, as well as performing all the State's forensic work.
MICHELE BROWN, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2
explaining that lab did much of the State's chemistry work.
She echoed that the strength of the lab is forensic
inorganic spill source matching.
Representative Therriault OBJECTED to adopting Amendment #2.
He thought that it was not important that this capability
remain in State. He added that an audit of the lab has
indicated that it is very expensive to maintain and
recommended that a contractual arrangement be made with a
lab in Washington. Ms. Brown advised that the proposed
reduction would not close the lab, although would severely
limit it's functions.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Therriault, Kelly, Kohring, Martin,
Mulder, Parnell, Hanley
Representative Navarre was not present for the vote.
The MOTION FAILED (3-7).
Representative Brown MOVED to adopt Amendment #3.
Representative Therriault OBJECTED. Representative Brown
explained that amendment would restore $34 thousand dollars
to the DEC Commissioner's Office which would then be RSA'd
over to the Department of Law to pay for a paralegal
position for environmental crimes.
Ms. Brown added that the position could nearly pay for
itself within a year with fines recovered. Representative
Therriault pointed out that the position had been vacant for
a while and he felt that the current funding was adequate.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley, Foster.
The MOTION FAILED (3-8).
14
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)
Co-Chair Foster MOVED to amend Amendment #1 by not deleting
the Agency BRU component of Environmental Conservation,
Administration, Office of the Commissioner, reduction of
personal services by $50 thousand dollars and thus changing
the addition for Child Assistance, Head Start Grants to $300
thousand dollars to grants.
Co-Chair Hanley asked the total amount being cut from the
Head Start budget. Representative Brown stated that a total
of $5.543 million dollars would be cut through the House
proposed budget. She requested that the additional $50
thousand dollars be found from another source in order that
a reduction from that component be avoided. Discussion
followed among Committee members regarding the reduction.
Representative Brown noted for the record her objection to
reducing the level of effort within that Division. There
being NO OBJECTION, it was amended.
Co-Chair Foster MOVED to adopt amended Amendment #1. There
being NO OBJECTION, it was adopted.
Representative Brown MOVED to amend Amendment #2 by deleting
$350 thousand dollars and inserting $50 thousand dollars
which would provide the balance of the funding needed for
Head Start grants. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Brown, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment #3 which would
result in a 5% instead of 10% reduction in revenue sharing
and municipal assistance. Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kohring, Martin, Mulder, Navarre,
Parnell, Therriault, Kelly, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF CORRECTIONS
15
Representative Grussendorf MOVED to adopt Amendment #1.
Representative Mulder OBJECTED. Representative Grussendorf
commented that the amendment would provide funding for State
contracts to local municipalities in order to provide
relieve resulting from State obligations. He emphasized
that the amendment would restore funding to contractual
arrangements with communities.
Representative Mulder interjected that there had been a
$4.64 million dollar increase as proposed by the
Subcommittee, which would amount to a twenty percent
increase (20%) partially to be used for contracts and
equipment upgrades.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Kelly, Kohring, Martin, Mulder,
Therriault, Parnell, Hanley, Foster
The MOTION FAILED (3-8).
UNIVERSITY OF ALASKA
Co-Chair Hanley MOVED to amend Amendment #1 deleting $20.5
thousand dollars and inserting $20.8 thousand dollars. He
noted that incorrect numbers add been originally typed in.
There being NO OBJECTION, it was amended.
Co-Chair Hanley MOVED to adopt Amendment #1. Representative
Navarre OBJECTED for purposes of discussion. Co-Chair
Hanley explained that the amendment would add $1 million to
the University, leaving a $3 million dollar unallocated
reduction.
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, discussed the effect on the
University. She explained that the funds needed to address
fixed University costs next year would be $7 million
dollars. An additional $3 million dollar reduction would be
experienced in loss of part time faculty and student
employment.
Representative Brown commented on the loss of part time
faculty to the Anchorage campus, noting that campus is
overly reliant on part time faculty.
(Tape Change, HFC 95-73, Side 1).
Ms. Redman pointed out that Alaska is above the national
average tuition rate for Western states. Until now, the
16
University budget has kept up with the student growth
through tuition. The Anchorage campus has considered
additional higher fees for special programs. Representative
Brown asked how many part time faculty would be lost on the
Anchorage campus. Ms. Redman responded that the greatest
impact would be to that faculty hired when over registration
occurs in the fall. She emphasized that there will be no
flexible money available to the University.
Representative Parnell questioned where the University will
turn over the long range as the budget continues to be cut.
Ms. Redman stated that the program assessment process
established criteria for a three year assessment and has
initiated the process of determining which programs would be
phased out. Administrative structures are being combined
and there is an agreement that faculty vacancies will not be
filled nor new standards established. Ms. Redman added that
quick reductions have a undermining effect on the University
process.
Representative Navarre recommended that teachers spend more
time in the classrooms. Ms. Redman concurred noting that
from the results of the assessment, all faculty will be
moving to nine month contracts. The University President
has mandated that beginning September, 1995, there will be a
20% increase in faculty productivity. Any faculty member
who receives general fund money must teach. Representative
Navarre compared the amount of time that the K-12 teachers
spend in the classroom. Ms. Redman countered Representative
Navarre's argument noting that the situation was quite
different.
Representative Mulder asked the University's intention in
closing facilities around the State. Ms. Redman replied
that the University does not have plans to close any of the
extended sites. She noted that most of the extended sites
are not expensive to run in comparison to the student
tuition generated at those spots, emphasizing that the rural
campuses provide educational delivery to rural Alaska.
Representative Mulder countered that the cost of delivery is
expensive, suggesting that sites be consolidated. Ms.
Redman stressed that the curriculum is limited at the
extended sites. No opportunities are being expanded,
although core requirements are being offered in order that
students who want to get into a university will qualify.
There being NO OBJECTION to Amendment #1, it was adopted.
Co-Chair Hanley MOVED to adopt the Intent Language. The
language would establish the it be the intent of the
Legislature that the Board of Regents close the WAMI program
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to all new entrants, which will result in a $160.3 thousand
dollar savings.
Ms. Redman noted that new students had already been admitted
in January for Fall, 1995. The University is thus committed
for the next cycle. Representative Mulder asked the number
of students who return to the state having completed the
program. He noted that the debt load of the average student
having completed the program with WAMI assistance is $50 -
$70 thousand dollars.
Co-Chair Hanley asked the number of students in Alaska that
go to medical school. Ms. Redman advised there are 40
students total in the program, although did not know the
total number of Alaskan students in medical school. She
added that other states are currently eliminating
opportunities for out-of-state students and that these
programs buy opportunities for Alaskan students. The
University of Alaska can not offer these programs and
opportunities in Alaska.
Representative Kohring asked how many students who complete
the program come back to Alaska. Ms. Redman stated that
half of the students return to the State, although since
Alaska does not have a residency program in State, these
students are at a disadvantage. Many doctors continue their
practice where they do their residency. Representative
Mulder OBJECTED to the Intent Language.
A roll call vote was taken on the MOTION to adopt the Intent
Language.
IN FAVOR: Kohring, Navarre, Parnell, Therriault,
Grussendorf, Hanley
OPPOSED: Mulder, Brown, Foster
Representatives Martin and Kelly were not present for the
vote.
The MOTION PASSED (6-3).
LEGISLATURE
Representative Navarre MOVED to adopt Amendment #1 which
would reduce legislative salaries and allowances.
Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Martin, Mulder, Parnell, Therriault,
Kelly, Kohring, Hanley
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Co-Chair Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Navarre MOVED to adopt Amendment #2.
Representative Mulder OBJECTED. Representative Brown noted
that the amendment would restore the Legal Services grant to
the Governor's amended request. The addition would allow
the Kotzebue and Nome offices to remain open.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Mulder, Parnell, Therriault, Kelly,
Kohring, Martin, Hanley
Co-Chair Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Navarre MOVED to adopt Amendment #3.
Representative Mulder OBJECTED. Representative Navarre
explained that Amendment #3 would restore funding to the
FY96 Governor's amended level. He added that $500 thousand
dollars would replace lost federal funds and assist in
welfare reform efforts by increasing the opportunity for
Alaska Families with Dependent Children (AFDC) clients to
receive the training and skills needed to get jobs.
(Tape Change, HFC 95-73, Side 2).
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf
OPPOSED: Parnell, Therriault, Kelly, Kohring,
Martin, Mulder, Hanley, Foster
The MOTION FAILED (3-8).
Representative Navarre MOVED to adopt Amendment #4.
Representative Therriault OBJECTED. Representative Brown
explained that $445 thousand dollars would allow the Arts
Council the means to collect the federal dollars.
Representative Kohring voiced his concern with the
philosophy and the types of arts funded by the National
Endowment for the Arts (NEA).
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Navarre
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OPPOSED: Parnell, Therriault, Kelly, Kohring,
Martin, Mulder, Foster, Hanley
The MOTION FAILED (3-8).
Representative Kelly advised that the Arts Council informed
him that with the current level of funding, that
organization could potentially be zeroed out. He
recommended taking the allocated money from the Arts Council
and placing it into the Head Start allocation.
Representative Kelly offered that language as an conceptual
amendment.
The House Finance Committee convened for one hour.
DEPARTMENT OF EDUCATION (DOE)
Representative Kelly MOVED to adopt Amendment #8 which would
move $50 thousand dollars from the Alaska State Council on
the Arts to the Head Start grants. Representative Brown
OBJECTED. She stressed the importance of an art's effort
being maintained in Alaska. Representative Martin noted
that the arts should be funded through private dollars.
Representative Brown MOVED to divide the question.
Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION to divide the
question.
IN FAVOR: Therriault, Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Hanley, Foster
The MOTION FAILED (4-7).
Representative Kohring noted that he does support the arts
although thought that the private sector should provide the
funding. He noted that the issue was one of establishing
priority State economics.
Representative Brown MOVED to strike the funding source for
the arts and insert the Alaska Tourism Marketing Council
(ATMC). Representative Mulder OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley, Foster
The MOTION FAILED (3-8).
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Representative Navarre MOVED to strike the funding source
for the arts changing it to the legislative operating
budget, salaries and allowances. Representative Mulder
OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre, Therriault, Brown
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Foster, Hanley
The MOTION FAILED (4-7).
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Kelly, Kohring, Martin, Mulder, Hanley,
Foster
OPPOSED: Navarre, Parnell, Therriault, Brown,
Grussendorf
The MOTION PASSED (6-5).
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)
Representative Brown MOVED to adopt Amendment #3. Co-Chair
Hanley OBJECTED. Representative Brown noted that the
amendment would result in a 5% rather than a 10% reduction
in revenue sharing and municipal assistance.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kohring, Martin, Mulder, Navarre,
Parnell, Therriault, Kelly, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)
Representative Brown noted that the Intent Language
specifically addressed the Fairbanks Native Association
specifying that the grant money not be spent on lobbying
activities.
Representative Parnell MOVED an amendment to the amendment,
deleting "Fairbanks Native Association" and inserting "all
departments". He stated that would clarify that no lobbying
activity for any group could occur with State funds.
Representative Brown disagreed. She stated that her intent
was to address a specific problem.
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Following Committee discussion, Representative Brown MOVED
to amend the proposal by adding the language proposed by
Representative Parnell as an addition to the amendment
rather than a deletion.
A roll call vote was taken on the MOTION to amend the
amendment.
IN FAVOR: Martin, Navarre, Brown, Grussendorf
OPPOSED: Mulder, Parnell, Therriault, Kelly,
Kohring, Hanley, Foster
The MOTION FAILED (4-7).
Discussion followed between Committee members regarding the
effect on other organizations and public dollars. Co-Chair
Hanley noted that statute already prohibits the use of grant
monies to be used for lobbying activities. Representative
Brown MOVED to WITHDRAW the amendment. There being NO
OBJECTION, it was withdrawn.
(Tape Change, HFC 95-74, Side 1).
DEPARTMENT OF NATURAL RESOURCES (DNR)
Representative Therriault MOVED to adopt Amendment #12 which
would provide contract funds for specific contractual
projects. Co-Chair Hanley understood that unless the
allocation is granted, the State will not continue to
receive revenue generated from specified projects.
Representative Brown supported the amendment indicating that
such language would provide a typical scope of what the
Department does. There being NO OBJECTION, Amendment #12
was adopted.
Representative Brown MOVED to adopt Intent Language
specifying Legislature's intent that no new agricultural
land disposal be initiated in FY 96. Representative Brown
pointed out that the current default rate on agricultural
land disposal averages 65.4%. She stressed that this was
not a viable program.
Representative Navarre voiced his frustration with the
disposal plan. He commented that establishing a home site
or homestead program would make better sense and would have
less default possibilities.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Navarre, Hanley
OPPOSED: Parnell, Therriault, Grussendorf, Kelly,
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Kohring, Martin, Mulder, Foster
The MOTION FAILED (3-8).
DEPARTMENT OF REVENUE (DOR)
Co-Chair Hanley MOVED to adopt Amendment #7. He advised
that the amendment would restore the Office of Public
Advocacy and the Public Defender Agency to the FY95 funding
level. There being NO OBJECTION, it was adopted.
ALASKA COURT SYSTEM
Representative Navarre MOVED to adopt Amendment #1. He
explained that the amendment would consist of two portions.
The first section would add funds for the trial costs of the
Arctic North Slope (ANS) Royalty Case. The second portion
of the amendment would add additional funding for anger
management.
ARTHUR SNOWDEN II, ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM, testified in support of Amendment #1. He admitted
that he did not know how long the ANS trial would continue.
He remarked that the second portion of the amendment would
address anger management, noting that both portions are
court mandated. Mr. Snowden asked if the Court System could
return to the Legislature and request supplemental funding
if the case went over the anticipated time frame.
Representative Parnell MOVED to divide the question and
requested that the Court System be responsible for the $52
thousand dollars request for the ANS case; he agreed that
they should return for supplemental funding next year.
Representative Mulder OBJECTED to dividing the question.
Following discussion among Committee members, Representative
Navarre MOVED TO WITHDRAW Amendment #1. There being NO
OBJECTION, it was withdrawn.
HB 100 and HB 101 were HELD in Committee for further
consideration.
ADJOURNMENT
The meeting adjourned at 12:05 P.M.
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