Legislature(1997 - 1998)
02/25/1997 07:00 PM 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 25, 1997
7:00 P.M.
TAPE HFC 97 - 78, Side 1, #000 - end.
TAPE HFC 97 - 78, Side 2, #000 - end.
TAPE HFC 97 - 79, Side 1, #000 - end.
TAPE HFC 97 - 79, Side 2, #000 - end.
TAPE HFC 97 - 80, Side 1, #000 - #080.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 7:00 P.M.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative Davies Representative Martin
Representative Davis Representative Moses
Representative Foster Representative Grussendorf
Representative Mulder was not present for the meeting.
ALSO PRESENT
Representative Kim Elton; Representative Ethan Berkowitz;
Annalee McConnell, Director, Office of Management & Budget,
Office of the Governor; Susan Taylor, Fiscal Analyst,
Legislative Finance Division; Peter Ecklund, Staff,
Representative Bill Williams; Larry LaBolle, Staff,
Representative Richard Foster; Nancy Slagle, Director,
Division of Administrative Services, Department of
Transportation and Public Facilities; Mike Greany, Director,
Division of Legislative Finance; Fred Fisher, Director,
Division of Administrative Services, Department of Law;
Barbara Ritchie, Deputy Attorney General, Civil Division,
Department of Law; Dean Guaneli, Chief Assistant Attorney
General, Legal Services Section, Criminal Section,
Department of Law; Sharon Barton, Director, Division of
Administrative Services, Department of Administration; Jay
Delany, Director, Division of Motor Vehicles, Department of
Administration; Karen Rehfeld, Director, Division of
Administrative Services, Department of Education; Virginia
Stonkus, Fiscal Analyst, Legislative Finance Division.
SUMMARY
HB 75 An Act making appropriations for the operating and
loan program expenses of state government, for
certain programs, and to capitalize funds; and
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providing for an effective date.
HB 75 was HELD in Committee for further
consideration.
HB 76 An Act making appropriations for the operating
expenses of the state's integrated comprehensive
mental health program; and providing for an
effective date.
HB 76 was HELD in Committee for further
consideration.
AMENDMENTS:
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
DEPARTMENT OF LAW
DEPARTMENT OF ADMINISTRATION
DEPARTMENT OF EDUCATION
HOUSE BILL 75
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; and providing for an
effective date."
HOUSE BILL 76
"An Act making appropriations for the operating
expenses of the state's integrated comprehensive mental
health program; and providing for an effective date."
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Representative Foster MOVED to adopt TRANS-#1. [Copy on
file]. Representative Foster noted that he offered the
amendment on behalf of Representative Williams.
PETER ECKLUND, STAFF, REPRESENTATIVE BILL WILLIAMS,
explained that the amendment would restore $200 thousand
dollars of the funding removed by the unallocated reduction
to the Alaska Marine Highway System and $200 thousand
dollars to restore expenditure authority in the Marine
Management BRU from the personal service funding for
management level positions.
Co-Chair Therriault spoke to the $200 thousand dollar
reduction. Mr. Ecklund pointed out that the two
appropriations would have the same money, although, the
front section would need to be amended. The additional
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amount would be $200 thousand dollars. Representative
Foster noted that an unallocated cut had been evenly
distributed throughout the Marine Highway component.
LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER, spoke
to the percent cut in each allocation. The subcommittee's
intent was to "hold harmless" maintenance and scheduling
operations. The cut percentage was rationed out of general
funds after the other funds were backed out, leaving $28.6
million general fund dollars and $12 million dollars to
statewide services. He reiterated that the cut had been
proportioned within the components.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, agreed
with the intent of the subcommittee's action. She noted
that the Department's Commissioner's office is moderately
sized for a statewide budget distribution of a $340 million
dollar operating and a $220 million dollar capital.
Mr. Ecklund advised that it was Representative Williams
intent that the Commissioner's office reduce some staff in
upper-management, although, the regional director positions
would not be affected.
Representative J. Davies questioned the need for two
appropriations. Ms. Slagle advised that the Marine Highway
Stabilization Fund was comprised of two different areas,
with $40 million dollars in receipts from the Marine Highway
System and a $28 million dollar appropriation to the front
section of the bill.
Mr. Ecklund commented that the funding would restore $200
thousand dollars back to the operations of the Marine
Highway System so that service to the public would not be
reduced.
In response to Representative G. Davis' comment, Ms. Slagle
explained that the DOT&PF Administration office consists of
funding by two appropriations. One from the Marine Highway
System and one is from the remainder of the Department's
funding allocation. The Commissioner's office resides in
that appropriation giving the Department some flexibility in
transferring money. She reiterated that it was the intent
of the subcommittee to keep operations and maintenance
"harmless" from reduction. Ms. Slagle pointed out that the
Department is currently in the process of reviewing
management concerns.
Representative Kohring OBJECTED to passage of the amendment.
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A roll call vote was taken on the MOTION.
IN FAVOR: Kelly, G. Davis, Grussendorf, Foster,
Hanley, Therriault
OPPOSED: Kohring, Martin, Moses, J. Davies
Representative Mulder was not present for the vote.
The MOTION PASSED (6-4).
Representative Foster MOVED to adopt TRANS-#2. [Copy on
file]. Mr. Ecklund explained that the amendment would
restore a portion of the funding removed from the component
by an unallocated reduction of $140 thousand dollars to the
Marine Highway System.
Ms. Slagle explained that this reference had been to a
single appropriation made from several BRU's. The total
amount of the unallocated reduction had been taken from the
first available component, support services. Even though it
is indicated in support services, is not necessarily the
component from which it will be absorbed from.
Representative Martin OBJECTED to adopting TRANS-#2.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, G. Davis, Grussendorf,
Foster, Kelly, Hanley
OPPOSED: Kohring, Martin, Therriault
Representative Mulder was not present for the vote.
The MOTION PASSED (7-3).
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,
advised that there were three components which had an
extended lapse date. Ordinarily, appropriations lapse on
June 30th. For the three highway/aviation components
contained in the bill, there is an August 30th lapse date.
He recommended that language be included in the bill. Co-
Chair Hanley requested a written copy of the information and
noted that the Committee would address it at that time.
DEPARTMENT OF LAW
Representative Grussendorf MOVED to adopt LAW-#1. [Copy on
file]. Representative Martin OBJECTED.
Representative Grussendorf explained that the three
positions in the Department for the Criminal Division had
not been previously funded and would further reduce the
ability of that division to handle the number of cases which
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come before them. The current vacancy factor is 6.9%, while
at the same time, since January, there have been forty-eight
bills introduced which will increase activities and
penalties directly affected by the reduction.
Representative Martin responded that the positions chosen to
be deleted had been vacant for the longest time and would be
the mostly costly to refill.
FRED FISHER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF LAW, explained that the original proposal was
to delete the referenced positions and add a new position in
Kenai. Since that time, the position in Kenai was deleted.
DEAN GUANELI, CHIEF ASSISTANT ATTORNEY GENERAL, LEGAL
SERVICES SECTION, CRIMINAL SECTION, DEPARTMENT OF LAW,
commented that an attorney and paralegal had been
transferred from Anchorage to the Kenai office. He stressed
that the deletion to the two positions in the Criminal
Division was a "serious" cut to the Department and that lay-
offs would result.
Representative Martin disagreed that it would be necessary
to switch an attorney from Anchorage to Kenai. He stressed
that the position had been vacant since 1994 and therefore,
was not needed. Representative J. Davies stressed that
there was a "big" difference between eliminating PCN's and
not funding the requested positions.
Co-Chair Hanley pointed out that the proposed budget was an
increment over the FY97 budget. Mr. Fisher noted that the
increase would cover salary increases. Also included was an
increment to the Department of Fish and Game prosecuting
attorney from Fish and Game funds. Co-Chair Hanley inquired
if it had been the subcommittee's intent to reduce the
number of attorneys. Representative Martin responded that
if the positions were vacant, that was the subcommittee's
intent.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Martin, G. Davis, Foster, Kelly,
Kohring, Hanley, Therriault
Representative Mulder was not present for the vote.
The MOTION FAILED (3-7).
Representative Grussendorf revised LAW-#2 by deleting $164.6
GF and inserting $139.6 GF and $25.0 inter-agency receipts.
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[Copy on file]. Representative Grussendorf MOVED to adopt
LAW-#2. He added that the Department of Law's budget was
reduced by $2,381.9 thousand general funds dollars and that
the Department's cap was $1,500.0 thousand general fund
dollars; he stressed that no decrement should be taken.
(Tape Change HFC 97-78, Side 2).
Representative Martin acknowledged that he would support
some funding. Mr. Fisher noted that funding would be
appropriately indicated as interagency receipts since it was
coming to the Department of Law from the Department of
Natural Resources (DNR) rather than from the Mental Health
Trust authority. Co-Chair Hanley questioned how the money
would move to DNR. Mr. Fisher explained that the Trust
Authority had budgeted $25 thousand dollars for professional
services.
There being NO OBJECTIONS to the revised LAW-#2, it was
adopted.
Representative Grussendorf MOVED to adopt LAW-#3. [Copy on
file]. Co-Chair Hanley OBJECTED for the purpose of
discussion.
Representative Grussendorf explained that the amendment
would provide $500 thousand general fund dollars to the
Department for covering expenses of oil and gas litigation.
He pointed out that component had been cut by 20% percent,
while at the same time, the State is owed $1.4 billion
dollars.
Representative Martin argued that the money was encumbered
and that the Department would have the opportunity to
present cases to the Legislature as they arise. Co-Chair
Therriault stressed that the Department should not be left
with the understanding that they can come back and request
supplemental funding.
Representative Grussendorf WITHDREW LAW-#3. There being NO
OBJECTION, it was withdrawn. He reiterated his primary
concern was stipulated in LAW-#1.
DEPARTMENT OF ADMINISTRATION
Representative G. Davis WITHDREW ADMIN-#1. [Copy on file].
There being NO OBJECTION, it was WITHDRAWN.
Representative Grussendorf MOVED to adopt ADMIN-#2. [Copy
on file]. Co-Chair Hanley OBJECTED for the purpose of
discussion.
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Representative Grussendorf spoke to the need for the $50
thousand dollar allocation to cover costs incurred by a
pilot program established by the previous Legislature.
Representative G. Davis reported that the project's
completion date would be June 30, 1997, and that the request
would not provide a reduction in savings.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, corrected
Representative Davis pointing out that the proposed
reduction with the additional reduction to Labor Relations
would be "harmful" to the re-engineering process. Because
of reductions throughout the years, the Division of
Personnel has delegated everything possible to the
individual departments. She stressed that there is not $50
thousand dollars in the budget which can be reduced without
affecting the re-engineering projects.
Representative G. Davis agreed that re-engineering would
benefit everyone in the long run and noted that he would
support it if the Department believed it was a "top
priority". He admitted that he had initially misunderstood
that there would be savings projected from the cut. Co-
Chair Therriault questioned where the cut could be shifted
too. Representative G. Davis pointed out that it could be a
$100 thousand dollar Finance Division cut.
Ms. Barton spoke to effects of the projected budget cuts and
the affect they will have on labor negotiations during the
following year. The Department needs at least six months
for negotiation preparation time. The team is now focusing
on "cleaning up" the "grievance backlog". The negotiators
organize through the Labor Relations unit which has been
merged into the Division of Personnel.
Co-Chair Therriault asked if the reduction to leasing would
be realized this year or would the Legislature be faced with
an additional supplemental request. Ms. Barton acknowledged
that the leasing budget would probably be in the
supplemental request next year. The Governor has allocated
money for leasing in his spending plan. Co-Chair Hanley was
critical that the Governor had not requested enough to fully
fund leasing. Ms. Barton agreed that the Governor's leasing
budget was less than the projected costs by approximately $1
million dollars.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, G. Davis, Grussendorf,
Kelly
OPPOSED: Foster, Kohring, Martin, Therriault,
Hanley
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Representative Mulder was not present for the vote.
The MOTION FAILED (5-5).
Representative Grussendorf MOVED to adopt ADMIN-#3. [Copy
on file]. Representative G. Davis OBJECTED.
Representative Grussendorf explained that the amendment
would place $100 thousand dollars back into the Division of
Motor Vehicles (DMV) field service offices. Representative
G. Davis agreed that the funds had been transferred to
achieve savings and to streamline the Division, specifying
that the component had been given a $100 thousand dollar
unallocated reduction.
Co-Chair Hanley asked if the allocated amount was the same
as the amount in last year's budget. Ms. Barton understood
that there were no increments in the budget except for the
salary and health insurance increase.
SUSAN TAYLOR, FISCAL ANALYSTS, LEGISLATIVE FINANCE DIVISION,
pointed out that the Division of Motor Vehicles BRU had some
administration costs which had been transferred over from
the Department of Public Safety (DPS) to the Department of
Administration (DOA).
JAY DELANY, DIRECTOR, DIVISION OF MOTOR VEHICLES (DMV),
DEPARTMENT OF ADMINISTRATION, responded to Co-Chair Hanley's
question regarding the efficiencies in motor vehicle
registrations and noted that any savings to the Division
would not be realized until the middle of FY98.
Representative J. Davies emphasized that the proposal
initially promised more efficiency in "reducing" the lines
at the DMV.
(Tape Change HFC 97-79, Side 1).
A roll call vote was taken on the MOTION.
IN FAVOR: J. Davies, Grussendorf, Moses
OPPOSED: G. Davis, Foster, Kelly, Kohring,
Martin, Moses, Hanley, Therriault
Representative Mulder was not present for the vote.
The MOTION FAILED (3-7).
Representative Grussendorf MOVED to adopt ADMIN-#4. [Copy
on file]. Representative G. Davis OBJECTED.
Representative Grussendorf explained that the amendment
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would add $50 thousand dollars to the labor relations
component. Representative G. Davis pointed out that there
are no major labor negotiations occurring this year. The
effort of the employees within this component would be to
reduce grievances and claims. There is an additional
component geared toward the required management supervisory
training. He suggested that the amount to be absorbed was
modest and could be incorporated.
Representative J. Davies asked if it was the subcommittee's
intent to further fund the component at a later date when
more labor contracts need to be addressed. Ms. Barton
clarified that the requested $50 thousand dollars had been
earmarked for the supervisory bargaining unit agreement for
management training and was not funding which could flow
into the labor relations component.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Moses, J. Davies
OPPOSED: G. Davis, Foster, Kelly, Kohring,
Martin, Therriault, Hanley
Representative Mulder was not present for the vote.
The MOTION FAILED (3-7).
Representative Grussendorf MOVED to adopt ADMIN-#5. [Copy
on file]. Representative G. Davis OBJECTED.
Representative Grussendorf explained that the amendment
would add $50 thousand dollars to protection, community
services and the administration component for senior
services. The allocation would provide funding for license
review of elderly home conditions.
Representative G. Davis directed attention to the fact that
this component had been moved over from the Department of
Health and Social Services (DHSS). He suggested that the
amount could be absorbed through greater efficiencies.
Representative Kohring spoke in favor of the amendment which
supports senior citizens.
Ms. Barton stressed that the cut would have a $50 thousand
dollar effect on services to seniors particularly to the
assisted living licensing review and the general relief
supplements for adult foster care. That component has never
been fully funded, and that currently, there is tremendous
amount of growth in those areas.
A roll call vote was taken on the MOTION.
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IN FAVOR: Grussendorf, Kohring, Moses, J. Davies
OPPOSED: Foster, Kelly, Martin, G. Davis, Hanley,
Therriault
Representative Mulder was not present for the vote.
The MOTION FAILED (4-6).
Representative J. Davies MOVED to adopt ADMIN-#6. [Copy on
file]. Representative G. Davis OBJECTED.
Representative J. Davies explained that the amendment would
bring the Office of Public Advocacy (OPA) up to the FY98
level (FY98 authorized including House level of funding in
supplemental). At the subcommittee level, OPA was funded
below FY97 authorized plus the supplemental requested.
He clarified OPA's primary areas of responsibility:
* Provides guardian ad litem representation to
abused and neglected children;
* Assigned whenever the Public Defender has a
conflict of interest in a case; and
* Public guardian section (acts as guardian
and/or conservator for citizens who suffer
from one of more disabilities and whom the
court has decided are unable to manage their
own affairs).
Co-Chair Hanley questioned why the Governor's proposed
budget did not fully fund OPA. Ms. Barton responded that
the Governor's recommendation did not fund OPA to the
projected costs for FY98 because their Office did not
realize the anticipated growth in that area. Co-Chair
Hanley cited that it was not the Legislature's intent to
fund any more than that requested by the Governor. He
summarized that additional money would not be provided
through next year's supplemental.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, acknowledged that the
Administration has been trying to avoid the "supplemental"
practice, particularly in the areas of OPA, leasing and
Public Defender (PD). She agreed that the funding should
have been addressed through the operating budget and not
through the supplemental. Discussion followed regarding a
memo distributed by the Legislature to the Governor's Office
regarding budgetary requests and supplemental funding.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Moses, J. Davies
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OPPOSED: Kelly, Kohring, Martin, G. Davis,
Foster, Therriault, Hanley
Representative Mulder was not present for the vote.
The MOTION FAILED (3-7).
DEPARTMENT OF EDUCATION
Representative Kelly MOVED to adopt ED-#1 which would grant
authority to accept federal funds for "foodstuffs" available
to children. [Copy on file]. There being NO OBJECTION, ED-
Representative Kelly MOVED to adopt ED-#2 which would
provide carryover due to the federal holdup of funds. [Copy
on file]. There being NO OBJECTION, ED-#2 was adopted.
Representative Kelly MOVED to adopt ED-#3. [Copy on file].
There being NO OBJECTION, ED-#3 was adopted.
Representative Kelly WITHDREW ED-#4. [Copy on file]. There
being NO OBJECTION, ED-#4 was WITHDRAWN.
Representative Kelly MOVED to adopt ED-#5 which would
correct an oversight error in the original budget document.
[Copy on file]. He noted that no new funds would be
involved. There being NO OBJECTION, it was adopted.
Representative Kelly MOVED to adopt ED-#6 which would adopt
program receipt authority for the Alaska State museums,
deleting general funds and replacing it with that authority.
[Copy on file]. There being NO OBJECTION, it was adopted.
Representative Kelly WITHDREW ED-#7. [Copy on file]. There
being NO OBJECTION, the amendment was WITHDRAWN.
Representative Kelly WITHDREW ED-#8. [Copy on file]. There
being NO OBJECTION, ED-#8 was WITHDRAWN.
Co-Chair Hanley revised ED-#9, changing $270 thousand
general fund dollars to $135 general fund dollars each to
Vocational Rehabilitation and AVTEC. [Copy on file]. That
action would reduce the Alaska State Archives component to
$80 thousand dollars, the Governor's requested amount.
Representative J. Davies questioned if that funding would
allow the second archives position to be maintained.
KAREN REHFELD, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF EDUCATION, explained that the cut
would provide for only a part-time position. The Department
will be loosing Capital Improvement Project (CIP) receipts
at the end of this fiscal year. The archives component is
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budgeted at maximum vacancy and would not be able to fully
fund a full time position.
Co-Chair Hanley offered an additional revision to the
amendment, reducing by $10 thousand dollars each the
VocRehab and AVTEC add-backs and reducing the Alaska State
Archives by $80 thousand dollars. Co-Chair Hanley MOVED to
adopt the amended ED-#9. There being NO OBJECTION, it was
adopted.
Representative J. Davies WITHDREW ED-#10. [Copy on file].
There being NO OBJECTION, it was WITHDRAWN.
Representative J. Davies MOVED to adopt ED-#11. [Copy on
file]. Representative Kelly OBJECTED.
REPRESENTATIVE KIM ELTON explained that the amendment would
restore the 67% funding which had been cut from the State
Board of Education, including the one support position
assigned to the board. Representative Kelly proposed that
the board needed to be more independent. Ms. Rehfeld
explained that the position cut was an existing position
which had been reassigned in the FY98 budget; that person
had been transferred in to the State Board budget position.
It is funded entirely to charge-back funds in the Department
of Education. The reduction will eliminate all the inter-
agency receipts, the position and the general fund support
for the State Board.
Representative Kelly noted that he would support a $49.1
thousand dollar personal services line item. He did not
support the travel component. Representative Kelly MOVED to
amend ED-#11, deleting the general fund $40.2 thousand
dollars and leaving the interagency receipts. Ms. Rehfeld
understood that the intent of the amendment was to restore
the $49.1 thousand dollars in personal services from
interagency receipts.
There being NO OBJECTION, the amended ED-#11 was adopted.
Representative Kelly provided a conceptual amendment to ED-
designated program receipts line to $312.7 thousand dollars
for projects funded by corporate receipts.
(Tape Change HFC 97-79, Side 2).
There being NO OBJECTION, ED-#9(a) was adopted.
Representative J. Davies MOVED to adopt ED-#13. [Copy on
file]. Representative Kelly OBJECTED.
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Representative Elton noted that ED=#13 would restore general
funding which would:
* Protect the receipt of over $4 million
dollars in federal funds for vocational
education;
* Maintain the statewide testing program; and
* Maintain the Youth and Justice program to
increase parental involvement as a means of
addressing at- risk youth.
Representative Kelly noted that these funds are not in
danger as alluded by Representative Elton. Ms. Rehfeld
noted that the component contained $713 thousand general
fund dollars; the $184 thousand dollars was a match amount.
The cut would be significant to the general fund support for
the testing program. A reduction of the proposed size will
limit the Department's ability to have a quality testing
program and will substantially jeopardize the federal match.
There are few personnel associated in the State general fund
dollars that support the activities of the teaching and
learning support for the quality schools component.
Representative J. Davies voiced a conflict in that his wife
is a public school teacher.
Representative Kelly argued that this is a large BRU and
that the Commissioner has the authority to move money
around. He did not agree that the funds were in jeopardy,
stressing that cuts must be made to achieve the cap.
A roll call vote was taken on the MOTION.
IN FAVOR: J. Davies, Grussendorf
OPPOSED: Kelly, Kohring, Martin, G. Davis,
Foster, Hanley, Therriault
Representative Mulder and Representative Moses were not
present for the vote.
The MOTION FAILED (2-7).
Representative J. Davies MOVED to adopt ED-#14. [Copy on
file]. Representative Kelly OBJECTED.
Representative Elton explained that the amendment would
restore general funds in order to:
* Prevent a guaranteed loss of $668.0 federal
funds for Adult Basic Education (ABE); and
* Prevent a potential loss of $8 million
federal funds for Special Education as a
result of not meeting federal maintenance of
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effort requirements.
Representative Kelly noted that there had been an effort to
combine the BRU's in the Department. The rational was to
address those items which were not directly student related.
Representative J. Davies pointed out that $600 thousand
dollars would be impacted the Adult Basic Ed component and
would be a substantial impact to students as that service
provides 30% of all high school diplomas given in the State.
Ms. Rehfeld noted that with a reduction to the general fund
support, the Department will loose the federal ABE funds in
FY99. In the component there is only $200 thousand dollars
in general funds. Representative Grussendorf voiced support
of the General Education Diploma (GED) and the small
investment required of the State for the continued receipt
of federal funding.
Ms. Rehfeld explained that there has been no change in the
general fund support for either the Adult Basic Education
program or the amount of general fund for the Special
Education staff. The Department transferred components into
the Special and Supplemental Services component in total.
Representative J. Davies added that the Adult Basic
Education program was one of the most cost effective program
the State has, compared to K-12 support. The Adult Basic
Education program targets students in the age group 18-24
years old. Ms. Rehfeld spoke to the federal requirement of
a maintenance of effort. At risk would be $668 thousand
federal fund dollars in FY99 if the State should fail to
meet the maintenance of effort. She continued, $8 million
dollars federal special education funding could be
jeopardized because of supplanting issues. Special
Education funds are made available to the State of Alaska
based upon the number of children being served. The
Department through the State's Foundation Formula
distributes close to $100 million dollars for Special
Education. There are general funds which help support those
staff persons.
Representative Foster stressed the need for continued
support for GED funding in Bush Alaska. He voiced support
for the amendment.
Representative Kelly MOVED to AMEND ED-#14, restoring $100
thousand dollars. Ms. Rehfeld explained that the Committee
had not reduced the grant amount. The reductions occurred
to line items where there are no general fund dollars. The
remaining reduction of $260.8 thousand dollars would be
removed from the personal service components. The
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Department can not accommodate the cuts.
Representative Kelly MOVED to revise ED-#14, restoring the
contractual line to $150.0 thousand dollars. There being NO
OBJECTION, it was amended. There being NO OBJECTIONS to the
amended ED-#14, it was adopted.
Representative J. Davies MOVED to adopt ED-#15. [Copy on
file]. Representative Kelly OBJECTED.
Representative Elton commented that the amendment would
restore funding for the one position currently responsible
for teacher certification.
A roll call vote was taken on the MOTION.
IN FAVOR: Kohring, J. Davies, Grussendorf, Foster
OPPOSED: Martin, G. Davis, Kelly, Therriault,
Hanley
Representatives Mulder and Moses were not present for the
vote.
The MOTION FAILED (4-5).
Representative J. Davies revised ED-#16, changing the total
amount to $254 thousand dollars. [Copy on file].
Representative J. Davies MOVED the revised ED-#16.
Representative Kelly OBJECTED.
Representative Elton explained that the amendment would
restore general funds in order to:
* Prevent a guaranteed loss of $379.4 thousand
dollars in federal funds for a net loss of
$758.8 thousand dollars, eliminating services
to 1000 disabled Alaskans.
Representative Kelly stated that the amendment would provide
an increase over FY97 proposed budget. He pointed out that
there are many programs which need funding. He did not
support funding the proposed program.
Ms. Rehfeld advised that the Department had included an
increase in federal authorization based on carry-forward
authorization, which had been requested in this years
supplemental bill. There is an increase on the federal
level budget for the Rehab Program.
(Tape Change HFC 97-80, Side 1).
A roll call vote was taken on the MOTION.
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IN FAVOR: J. Davies, Grussendorf
OPPOSED: Martin, G. Davis, Foster, Kelly,
Kohring, Hanley, Therriault
Representatives Moses and Mulder were not present for the
vote.
The MOTION FAILED (2-7).
HB 75 and HB 76 were HELD in Committee for further
consideration. #
ADJOURNMENT
The meeting adjourned at 10:30 P.M.
16
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