Legislature(1997 - 1998)
03/25/1997 07:00 PM 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 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 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 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.
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 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. [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.
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
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 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.
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
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-#1 was
adopted.
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 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-#9(a),
clarifying that the intent was to restore the 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.
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 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 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.
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.
H.F.C. 3/25/97 E
**FIN085AM
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