Legislature(2009 - 2010)
03/08/2010 03:14 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB302 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 8, 2010
3:14 p.m.
3:14:36 PM
CALL TO ORDER
Co-Chair Hawker called the House Finance Committee meeting
to order at 3:14 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Mike Doogan
Representative Anna Fairclough
Representative Neal Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
Representative Allan Austerman
SUMMARY
HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 300 was HEARD and HELD in Committee for
further consideration.
HB 302 APPROP: MENTAL HEALTH BUDGET
HB 300 was HEARD and HELD in Committee for
further consideration.
HOUSE BILL NO. 300
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making supplemental
appropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska; and
providing for an effective date."
HOUSE BILL NO. 302
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
3:15:07 PM
Co-Chair Hawker noted that the purpose of the meeting was
to process amendments to the operating budget (HB 300 and
HB 302) and provided a broad overview of the amendments. He
added that the committee would address the gasline funding
amendment at a future meeting. He explained that a majority
of members present (six votes) would be required to move an
amendment from committee.
3:19:29 PM
Amendment 1
Co-Chair Hawker MOVED to ADOPT Amendment 1:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Part 1:
DEPARTMENT: Commerce, Community & Economic
Development
APPROPRIATION: Alaska Seafood Marketing Institute
ALLOCATION: Alaska Seafood Marketing Institute
ADD: $500.0 GF/PR (1005)
DELETE: $500.0 RSS (1156)
EXPLANATION: $500.0 of the Governor's amended
request for approximately $10 million of RSS was not
switched from RSS to GF/PR in the House CS as part of
the Budget Clarification Project. This amendment
corrects this oversight and will not impact ASMI's
budget.
Part 2:
DEPARTMENT: Environmental Conservation
APPROPRIATION: Environmental Health
ALLOCATION: Laboratory Services
DELETE: $100.4 GF (1004)
Plus 1 PFT position
APPROPRIATION: Environmental Health
ALLOCATION: Food Safety & Sanitation
ADD: $100.4 GF (1004)
Plus 1 PFT position
EXPLANATION: This amendment is a technical correction
to the allocation selected for amendment #1 that was
offered and accepted at the DEC House Subcommittee
closeout. The original increment adds an
Environmental Health Technician and related costs in
support of the permitting and inspection of new
shellfish farms. This increment was placed in the
Laboratory Services allocation but DEC wants the
increment placed in the Food Safety and Sanitation
allocation. Both allocations are within the
Environmental Health appropriation in DEC.
Part 3:
DEPARTMENT: Fish and Game
APPROPRIATION: Sport Fisheries
ALLOCATION: Sport Fisheries
ADD: $450.1 Fish and Game Fund (1024)
DELETE: $450.1 GF Program Receipts (1005)
ADD: The following new LANGUAGE subsection to Sec. 25:
Fees collected at boating and angling access sites
managed by the Department of Natural Resources,
division of parks and outdoor recreation, under a
cooperative agreement authorized under AS
16.05.050(a)(6), during the fiscal year ending June
30, 2011, estimated to be $450,100, are appropriated
to the fish and game fund (AS 16.05.100).
EXPLANATION: The U.S. Fish and Wildlife Service
expressed concern that a portion of the fund changes
associated with the budget clarification project
provide insufficient tracking of boating access fees.
The federal government prefers that boating receipts
be deposited into the F&G fund. This amendment aligns
revenue and expenditures with federal requirements
(see explanation below).
The U.S. Fish and Wildlife Service requires that all
user fees collected on federally acquired or developed
facilities must be used for maintenance and operation
of those facilities. ADF&G Sport Fisheries division
has current and ongoing grants with USFWS which
creates a federal nexus to these user fees collected
by Department of Natural Resources (DNR).
Under U.S. Fish and Wildlife Service (USFWS) federal
grants, all user fees collected on federally acquired
or developed facilities must be used for maintenance
and operation of those facilities. ADF&G Sport
Fisheries division has current and ongoing grants with
USFWS which creates a federal nexus to these user fees
collected by Department of Natural Resources (DNR).
A cooperative agreement provides the mechanism for
transfer of user fees from DNR to ADF&G Fish and Game
fund. Federal Office of Inspector General (OIG)
auditors have approved this process and the deposit of
the fees in the Fish and Game fund as it ensures ADF&G
maintains control over the funds and the maintenance
and operation of the facilities.
Part 4:
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Recorder's Office/Uniform
Commercial Code
ADD: $4,470.4 GF/PR (1005)
DELETE: $4,470.4 RSS (1156)
EXPLANATION: $4,470.4 of the Governor's request of
RSS was not switched from RSS to GF/PR in the House CS
as part of the Budget Clarification Project. This
amendment corrects this oversight and will not impact
the Recorder's Office/Uniform Commercial Code's
budget.
Part 5:
DEPARTMENT: Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: Narcotics Task Force
DELETE: $25.2 Stimulus09 (1212)
EXPLANATION: The Governor requested a $25.2 fund
source change from one-time ARRA funding to general
funds to cover salary adjustments for existing PSEA
bargaining agreements. The basis of the request was
that the ARRA fund source was "unrealizable" in this
allocation in FY11.
While it may be true that no new ARRA receipts will be
available in FY11, carryforward of $5.4 million ARRA
receipts is anticipated. In this situation, the fund
change is not necessary because the ARRA fund source
will be available in FY11. However, by denying the
agency's request, the subcommittee not only denied an
increase in GF, but also appropriated new FY11 ARRA
funding.
This amendment eliminates new ARRA authorization
(which is not expected to be available) in
anticipation of using a portion of the allocation's
$5.4 million ARRA carryforward to pay the salary
adjustments.
Part 6:
DEPARTMENT: Revenue
APPROPRIATION: Child Support Services Division
ALLOCATION: Child Support Services Division
DELETE: Page, 37, lines 6-9, all material, which
reads: The amount appropriated by this appropriation
includes the unexpended and unobligated balance on
June 30, 2010, of the receipts collected under the
state's share of child support collections for
reimbursement of the cost of the Alaska temporary
assistance program as provided under AS 25.27.120.
EXPLANATION: The deleted language permits CSSD to
carry-forward receipts from the prior year. Because
the CS replaced receipts with General Fund Match, the
language is unnecessary.
Part 7:
DEPARTMENT: Revenue
APPROPRIATION: Child Support Services Division
ALLOCATION: Child Support Services Division
ADD: $297.0 Stimulus09 (1212)
Transaction Type: Inc OTI
EXPLANATION: This amendment authorizes expenditure of
$297,000 of federal FY10 ARRA Stimulus Funds. This
st
funding will be available to the Division in the 1
quarter of state FY11.
Part 8:
DEPARTMENT: Transportation & Public Facilities
APPROPRIATION: Design, Engineering & Construction
ALLOCATION: SE Design and Engineering Services
ADD: $50.0 General Fund Program
Receipts (1005)
DELETE: $50.0 Receipt Supported Services
(1156)
EXPLANATION: This was an omission in the fund source
changes that are a part of the Budget Clarification
Project.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 1 was a Legislative
Finance Services technical amendment with a net zero
financial effect. The amendment that would properly
classify fund sources.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
3:20:19 PM
Amendment 2
Co-Chair Hawker MOVED to ADOPT Amendment 2 (26-GH2823\M.10,
Bailey, 3/8/10):
Page 65, line 30:
Delete "$35"
Insert "$50"
Page 66, line 1, following "section":
Insert ", estimated to be $13,500,000,"
Page 66, line 5:
Delete "$35"
Insert "$50"
Page 66, line 7, following "section":
Insert ", estimated to be $13,500,000,"
Page 66, line 17, through page 68, line 10:
Delete all material and insert:
"$90 or more $20,000,000
89 19,500,000
88 19,000,000
87 18,500,000
86 18,000,000
85 17,500,000
84 17,000,000
83 16,500,000
82 16,000,000
81 15,500,000
80 15,000,000
79 14,500,000
78 14,000,000
77 13,500,000
76 13,000,000
75 12,500,000
74 12,000,000
73 11,500,000
72 11,000,000
71 10,500,000
70 10,000,000
69 9,500,000
68 9,000,000
67 8,500,000
66 8,000,000
65 7,500,000
64 7,000,000
63 6,500,000
62 6,000,000
61 5,500,000
60 5,000,000
59 4,500,000
58 4,000,000
57 3,500,000
56 3,000,000
55 2,500,000
54 2,000,000
53 1,500,000
52 1,000,000
51 500,000
50 0"
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Numbers Section
DEPARTMENT: Various-as shown in the table below
ADD: $17,055.3 UGF (1004) Unrestricted
general funds
DELETE: $15,000.0 UGF (1004) Unrestricted
general funds (estimate)
Amount
Added to
AgencyBase
Department of Administration 22.8
Department of Corrections 2,655.3
Department of Education and Early Development 57.2
Department of Environmental Conservation 37.8
Department of Fish and Game 77.7
Department of Health and Social Services 600.0
Department of Labor and Workforce Development 35.3
Department of Military and Veterans Affairs 327.3
Department of Natural Resources 68.0
Department of Public Safety 273.9
Department of Transportation & Public Facilities 11,250.0
University of Alaska 1,650.0
Total Unrestricted General (UGF) 17,055.3
EXPLANATION: This amendment revises the amounts
appropriated under the "fuel trigger" provisions of
section 21 by increasing the trigger start point from
$36 to $51 dollars. This change reduces the projected
annual appropriations for high fuel costs by $15
million annually at any oil price above $51. The
reduction appears in budget reports as a revised
estimate of the impact of section 21. The actual
impact will depend upon fuel prices during FY11.
The amendment also distributes $15 million to various
agencies to offset the reduction in funding through
the trigger mechanism. That $15 million is distributed
to agencies in the same manner and amount as occurred
in FY10 under the August 1 trigger mechanism. In
addition, $2,053,300 is appropriated to the Department
of Corrections in order to align available funding for
utilities with documented expenditures. The $17.05
million will be added to agency base budgets.
The intent of the amendment is to shift funding from
contingency (trigger) to base in recognition of
sustained high oil prices. The amendment reduces the
projected trigger appropriations from $42 million to
$27 million.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 2 would change the
fuel trigger. The amendment would take the first $15
million formally allocated under the fuel trigger when oil
was $30 per barrel and put the amount into the base budget
of agencies. The amendment also would lower the amount of
the contingent appropriation by the same $15 million. There
would be a net zero impact; however, analysis of the
effectiveness of the trigger has identified that the
Department of Corrections needed an additional $2 million
to make the fuel trigger work. He noted disagreement about
the issue.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 2 was ADOPTED.
3:22:15 PM
Amendment 3
Co-Chair Hawker MOVED to ADOPT Amendment 3:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Transfer In $2,230.8 to Alaska Court System
Therapeutic Courts
DEPARTMENT: Alaska Court System
APPROPRIATION: Therapeutic Courts (new appropriation)
ALLOCATION: Therapeutic Courts
TRANSFER IN: General Funds 1004 $1,356.3
GF/MH 1037 $ 357.2
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 517.3
ADD: Intent: It is the intent of the legislature that
contracts to purchase services associated with
therapeutic courts be based loosely on the amounts
transferred from other agencies into this
appropriation. Contractual agreements should be for
amounts determined by the Court System to be in the
best interest of operating therapeutic courts in an
efficient and effective manner.
EXPLANATION: This amendment will consolidate all
funding for Therapeutic Courts into a new
appropriation in the Alaska Court System. Funds will
be transferred from the Departments of Law ($364.7),
Health and Social Services ($1,663.7), Corrections
($252.2), and Administration ($355.0) and the Alaska
Court System/Therapeutic Court's component ($2,018.3)
in an effort to enhance coordination and
accountability for the Therapeutic Courts programs.
Transfer Out $364.7
DEPARTMENT: Department of Law
APPROPRIATION: Criminal Division
rd
ALLOCATION: 3 Judicial District/Anchorage
TRANSFER OUT: $300.3 General Funds 1004
ADD: $300.3 I/A Receipts (1007)
th
ALLOCATION: 4 Judicial District
TRANSFER OUT: $64.4 GF 1004
ADD: $64.4 I/A Receipts (1007)
Transfer Out $1,258.9
DEPARTMENT: Department of Health & Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
TRANSFER OUT: General Funds 1004 $ 272.0
GF/MH 1037 $ 150.0
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 450.0
ADD: $872.0 I/A Receipts (1007)
ALLOCATION: Alcohol & Substance Abuse Programs
TRANSFER OUT: General Funds 1004 $ 319.6
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 67.3
ADD: $254.7 I/A Receipts (1007)
Transfer Out $252.2
DEPARTMENT: Department of Corrections
APPROPRIATION: Inmate Health Care
ALLOCATION: Behavioral Health Care
TRANSFER OUT: $207.2 GF/MH 1037
ADD: $207.2 I/A Receipts (1007)
APPROPRIATION: Population Management
ALLOCATION: Statewide Probation and Parole
TRANSFER OUT: $45.0 General Funds 1004
ADD: $45.0. I/A Receipts (1007)
Transfer Out $355.0
DEPARTMENT: Department of Administration
APPROPRIATION: Legal & Advocacy Services
ALLOCATION: Public Defender Agency
TRANSFER OUT: $290.0 General Funds 1004
ADD: $290.0 I/A Receipts (1007)
ALLOCATION: Therapeutic Courts Support Services
TRANSFER OUT: $65.0 General Funds (1004)
ADD: $65.0 I/A Receipts (1007)
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 3 would implement
the establishment of therapeutic courts as an Alaska Court
System appropriation. Money that has been used for or
appropriated for intended use by the therapeutic courts
would be taken out of the Departments of Law, Health and
Social Services, Corrections, and Administration; money in
the agencies would be replaced with receipt authority so
that the court system could buy services through
reimbursable services agreements (RSAs). The court system
would be directed as much as possible to procure the
services from the agencies from which the money was
secured. He underlined the legislature's commitment to a
more centralized management of the therapeutic courts.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 3 was ADOPTED.
3:24:20 PM
Amendment 4
Co-Chair Hawker MOVED to ADOPT Amendment 4:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Revenue
APPROPRIATION: Alaska Permanent Fund Corporation
ALLOCATION: APFC Custody and Management Fees
Section 1, Page 38, Line 3:
Convert the APFC Custody and Management Fees
allocation into a separate appropriation.
EXPLANATION: This amendment will restrict use of
APFC Custody and Management Fees to their sole
intended purpose by placing them in a stand-alone
appropriation.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 4 would create a
separate appropriation within the Department of Revenue
budget for the Alaska Permanent Fund that would separate
management and custodial fees from the internal operations
of the fund corporation. He emphasized that the item had
nothing to do with the dividend, but would restrict the
management funds.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 4 was ADOPTED.
3:25:38 PM
Amendment 5
Co-Chair Hawker MOVED to ADOPT Amendment 5:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
DELETE: INTENT
It is the intent of the legislature that future
requests by the University of Alaska for Unrestricted
General Funds move toward a long-term goal of 125% of
Actual University Receipts for the most recently
closed fiscal year.
ADD: INTENT
It is the intent of the legislature that the
University of Alaska's FY12 budget request for
unrestricted general funds not exceed 129 percent of
actual University Receipts for FY10. It is the intent
of the legislature that future requests by the
University of Alaska for unrestricted general funds
move toward a long-term goal of 125 percent of actual
University Receipts for the most recently closed
fiscal year.
EXPLANATION: The addition of a specific target for
FY12 is intended to clarify and limit the expectations
of both the University and the legislature.
The unrestricted general fund (UGF) increment in the
CS was based on the ratio of UGF to designated general
funds (DGF). DGF includes TVEP funding (state funding
for technical and vocational education) in addition to
University Receipts. Inclusion of TVEP in future
funding ratios would result in the state matching
state funds appropriated to the University. If the
match ratio used to determine the FY11 appropriation
had used a ratio of UGF to University Receipts of 129
percent, the University would have received $1.5
million less in unrestricted general funds. Applying a
129 percent ratio in FY12 assures movement toward the
long-term goal that UGF not exceed 125 percent of
University Receipts.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker reported that the university's budget had
been considered by the committee as a whole, resulting in a
formula for matching university-generated receipts.
Amendment 5 would expand intent language related to the
ratio not exceeding the current ratio and general fund
receipts moving towards 125 percent of actual receipts for
the previously closed fiscal year. He noted that the
current ratio was 127 percent; the amendment shows 129
percent and incorporates a revision of the calculations of
the university receipts. The calculation had previously
inappropriately included Technical and Vocational Education
Program (TVEP) funding, which is state money that does not
belong in the matching formula.
Representative Gara disagreed with the approach. He
believed the 129 percent ratio was substantially lower than
the 135 percent ratio that has existed over the past five
years for the university. He understood the legislature's
caution regarding agency growth, but he viewed the
university as a major creator of jobs in the state. He
would have preferred the historical ratio formula.
Co-Chair Stoltze MAINTAINED his OBJECTION.
3:28:56 PM
A roll call vote was taken on the motion to adopt Amendment
5.
IN FAVOR: Fairclough, Joule, Kelly, Salmon, Thomas,
Stoltze, Hawker
OPPOSED: Doogan, Foster, Gara
Representative Austerman was absent from the vote.
The MOTION PASSED (7/3). Amendment 5 was ADOPTED.
Co-Chair Hawker noted that any committee member who wished
to could add their name as a sponsor to any amendment.
3:31:30 PM
Amendment 6
Co-Chair Hawker MOVED to ADOPT Amendment 6 (26-GH2823\M.9,
Bailey, 3/8/10):
Page 79, line 22, through Page 80, line 2:
Delete all material and insert:
"* Sec. 33. CONSTITUTIONAL BUDGET RESERVE FUND. (a) An
amount equal to the investment earnings that would
otherwise have been earned by the budget reserve fund
(art. IX, sec. 17, Constitution of the State of
Alaska) on money borrowed from the budget reserve fund
to meet general fund expenditures during the fiscal
year ending June 30, 2011, is appropriated from the
general fund to the budget reserve fund for the fiscal
year ending June 30, 2011, for the purpose of
compensating the budget reserve fund for lost
earnings."
Page 80, line 5, following "fund":
Insert "(art. IX, sec. 17, Constitution of the
State of Alaska)"
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 6 would clarify
language in statute so that when money from the
Constitutional Budget Reserve (CBR) is used to meet short-
term cash-flow requirements of the general fund, the loan
would be paid back with interest in the amount that the CBR
would have made.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 6 was ADOPTED.
3:32:44 PM
Amendment 7
Co-Chair Hawker MOVED to ADOPT Amendment 7:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: AK Fetal Alcohol Syndrome Program
ADD: Intent language at the allocation level
It is the intent of the legislature that AK Fetal
Alcohol Syndrome Programs located in Juneau, Kenai,
Sitka, and Bethel be expanded.
EXPLANATION: This amendment specifies that an
increment approved by the HSS subcommittee is intended
to expand services in the four named communities. The
transaction title will be modified to reflect the
subcommittee's intent.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 7 reflected the
intent of the subcommittee and the Department of Health and
Social Services in adopting an increment for fetal alcohol
syndrome programs specifically in Juneau, Kenai, Sitka, and
Bethel. The language had not been included in the
subcommittee budget.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 7 was ADOPTED.
3:33:45 PM
Amendment 8
Co-Chair Hawker MOVED to ADOPT Amendment 8:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
STATEWIDE 10% GENERAL FUND TRAVEL REDUCTION
10% Amendment
DEPARTMENTReductionReduction
Administration ( 112.0) (112.0)
Commerce, Community & Econ Dev ( 135.2) (135.2)
Corrections ( 197.4) (197.4)
Education & Early Dev ( 68.4) (68.4)
Environmental Conservation ( 115.9) (115.9)
Fish and Game ( 191.5) (191.5)
Governor ( 107.9) (107.9)
Health & Social Services ( 311.0) (311.0)
Labor & Workforce Dev ( 66.4) (66.4)
Law ( 118.4) (118.4)
Military & Veterans Affairs ( 17.2) (17.2)
Natural Resources ( 192.2) (192.2)
Public Safety ( 509.5) -
Revenue ( 48.1) (48.1)
Transportation ( 422.9) (422.9)
University of Alaska ( 1,496.8) -
Alaska Court System ( 171.9) (171.9)
Legislature ( 387.7) (387.7)
TOTAL ( 4,670.4) (2,664.1)
Explanation: This amendment reduces travel
authorization in allocations with budgeted travel and
with general funds. Departments should prioritize
travel and use existing technology as appropriate to
facilitate meetings. The University and Public Safety
are excluded from the reductions. In addition, three
fund codes (PFD Criminal Funds, Vehicle Rental Taxes,
and VoTech Ed) were excluded because the legislature
fully appropriates these funds. Because the budget
does not identify line items by fund source, the
following method was used to determine the amount of
travel that is reduced in each allocation.
Ratio of each general fund code
10% of the FY09
(UGF and DGF) in the House CS Amount of the
actual travel
X=
to the total FY11 allocation's travel reduction
expenditures
funding
Please see the Transaction Detail report for the
amounts eliminated from each allocation.
Note: Combining this amendment with other House
Finance Committee Actions may cause negative line
items or fund sources. Should this occur, Legislative
Finance will make technical adjustments to the amounts
in the travel amendment to correct these errors.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 8 was the result of
debate about cutting costs. The 2009 travel budget for
state agencies was considered and Legislative Finance
calculated the number required to reduce the travel budget
by ten percent. Travel is currently a line-item adjustment
that does not require permission from the legislature to
move around. He viewed the amendment as a general statement
of intent for agencies to prioritize and operate more
efficiently. He noted that the university and the
Department of Public Safety were exempted from the
reduction.
Co-Chair Hawker emphasized that the reduction would be
calculated only on the general fund component of agency
budgets, not on travel funded by federal or other sourced
funds. The proposed total reduction would be $2.6 million.
3:37:31 PM
Co-Chair Stoltze noted that the legislature's travel budget
was cut as well. Co-Chair Hawker detailed that the
legislature's travel budget would be reduced by $387,000.
Representative Gara thought the approach was fair, but
believed that employees from the Alaska Court System and
the Department of Law often traveled because they had to.
Co-Chair Hawker agreed that the process would spark debate.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 8 was ADOPTED.
3:39:07 PM
Amendment 9
Co-Chair Hawker pointed out that Amendment 9 was related to
Medicaid appropriations. He MOVED to ADOPT Amendment 9:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Medicaid Services (new appropriation)
ADD: Transfer the following allocations from their
existing locations to the newly created Medicaid
Services appropriation:
Behavioral Health Medicaid Services
Children's Medicaid Services
Adult Preventative Dental Medicaid Services
Health Care Medicaid Services
Senior and Disabilities Medicaid Services
ADD: Intent language at the appropriation level
It is the intent of the legislature that the
Department of Health and Social Services identify and
investigate alternatives that could improve internal
administrative management and accounting controls over
the Medicaid program, including determining the
viability of outsourcing those activities. The
Department should be prepared to present its findings
to the legislature during the 2011 session.
EXPLANATION: Consolidate all Medicaid allocations
within the Department of Health and Social Services to
the newly created Medicaid Services appropriation.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that the amendment would put all
Medicaid services into a single appropriation in the
Department of Health and Social Services budget. He
provided historical background. The department had
requested the change. The 2003 legislature had made the
decision to separate the Medicaid components into their
functional categories (including Behavioral Health Medicaid
Services, Children's Medicaid Services, Adult Preventative
Dental Medicaid Services, Health Care Medicaid Services,
and Senior and Disabilities Medicaid Services). He spoke to
the evolving process of centralization and de-
centralization. He noted problems with revenue collections
at the department; he believed the single appropriation
would aid the agency in establishing needed controls.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 9 was ADOPTED.
3:41:49 PM
Amendment 10
Co-Chair Hawker MOVED to ADOPT Amendment 10:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Medicaid Services (new appropriation)
ALLOCATION: Behavioral Health Medicaid Services
DELETE: $1,116.2 GF/MH (1037)
DELETE: $1,628.1 Federal Receipts (1002)
DELETE: $297.1 Stimulus09 (1212)
ALLOCATION: Health Care Medicaid Services
ADD: $75.4 GF/Match (1003)
ADD: $146.5 Federal Receipts (1002)
ADD: $17.5 Stimulus09 (1212)
ALLOCATION: Senior and Disabilities Medicaid Serv.
DELETE: $1,616.7 GF/Match (1003)
DELETE: $2,201.5 Federal Receipts (1002)
DELETE: $447.5 Stimulus09 (1212)
EXPLANATION: Funding adjustments to Medicaid
allocations split the differences between the
Governor's Amended Medicaid request and projections of
a legislative consultant. The result is a reduction of
2,657.5 in general funds.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 10 was also
related to Medicaid and would split the difference between
the agency's originally requested budget for the Medicaid
components and the analysis that the consultant Janet Clark
had presented. He referred to debate in committee. The
department would like more money but acknowledged the
problem of excess authority related to federal funds, which
had contributed to an environment of less control. Since
Medicaid is a formula program, the department will have to
ask for more money if it falls short. The intent is to
reduce the amount of general funds for the Medicaid program
in its totality while allowing the agency to move money to
functional areas; $2.6 million in general funds would be
removed.
Representative Gara spoke in support of the amendment. He
clarified that the amendment would not cut services to
qualified people. The amendment represented the
legislature's best estimate of how many people would
request services before the end of the next fiscal year. He
thought the approach was fair.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 10 was ADOPTED.
3:45:47 PM
Amendment 11
Co-Chair Hawker MOVED to ADOPT Amendment 11:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Health and Social Services
APPROPRIATION: Health Care Services
ALLOCATION: Medicaid Services
DELETE: $4,900.0 General Fund (1004)
EXPLANATION: Prior to the Medicare Part D program
implementation, the State paid prescriptions for
Medicaid dual-eligibles (enrollees in both Medicaid
and Medicare) through Medicaid. With the
implementation of Medicare Part D, the state no longer
pays for dual eligibles' prescriptions but does help
finance them through payments to the federal
government. This is commonly referred to as the
"Clawback." Payments are based on a per capita cost
calculated by the federal government and made on a
monthly basis. The state's portion is determined by
the Title XIX FMAP rate.
In October 2008, ARRA provided an increase in the
State's FMAP rate; it was initially determined that
this higher FMAP rate would not apply to the Medicare
Part D Clawback payments. On Feb 18, 2010, HHS
announced a change to this decision and will now apply
the ARRA FMAPs to the Clawback payments. This change
will be retroactive to Oct 1, 2008. The State's
overpayments of past monthly Clawback will be refunded
in the form of a credit to offset future payments.
Alaska's credit from Oct 1, 2008 through Dec 31, 2009
is approximately $5.1 million. In addition, future
payments will be calculated using the ARRA FMAP and
there will be savings from what was originally
budgeted for Clawback payments. The savings will be
approximately $390,000 per month for the remaining 6
months of SFY 2010 (Jan 1 - June 30, 2010). This is a
total of $7.5 million in savings for SFY 2010 from
original calculations.
These savings will continue through Dec 31, 2010 and
are anticipated to be further extended through June
30, 2011 at approx. $414,000 per month for a total
SFY2011 savings for $4.9 million over 12 months.
Savings for SFY2010 are higher than those for SFY2011
due to the credit from past payments; in effect 21
months of savings are being realized in SFY2010.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 11 (also related
to Medicaid) reflected a change to federal regulation that
occurred after the governor's budget was prepared. An
adjustment was made to amounts reimbursed to the state
under the "Part D" Medicaid prescription drug "Clawback."
The state would be receiving an additional federal
reimbursement, saving the state from spending $4.9 million
in general funds. He reported that the Office of Management
and Budget (OMB) had prepared the amendment.
Co-Chair Stoltze WITHDREW his OBJECTION.
3:47:27 PM AT EASE
3:48:21 PM RECONVENED
There being NO further OBJECTION, Amendment 11 was ADOPTED.
Amendment 12
Co-Chair Hawker MOVED to ADOPT Amendment 12.
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Children's Services Management
ADD: $165.0 General Funds (1004)
ALLOCATION: Front Line Social Workers
ADD: $955.3 General Funds (1004)
APPROPRIATION: Public Health
ALLOCATION: Women, Children and Family Health
ADD: $347.8 General Funds (1004)
APPROPRIATION: Departmental Support Services
ALLOCATION: Administrative Support Services
ADD: $700.0 General Funds (1004)
ALLOCATION: Information Technology Services
ADD: $487.5 General Funds (1004)
EXPLANATION: Replace unrealizable interagency and
federal receipts due to the loss of Medicaid School
Based Claims funding. Reductions totaling $1.5 million
in interagency receipts were accepted in the House
Finance Subcommittee for the Children's Services
Management, Front Line Social Workers, and Women,
Children and Health allocations. An increase of $737.5
of general funds was accepted in the House Finance
Subcommittee action for the Information Technology
Services allocation. These changes total 2,655.6 of
general funds.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 12 represented an
item referred by the subcommittee for full committee
consideration related to school-based Medicaid program
problems. Some of the funds were not available and the
Department of Education and Early Development asked for
general funds. He listed services affected, including
children's services, front-line social workers, public
health, and departmental administrative and support
services. He stated that he did not think individual agency
components should be punished and that the funds were
needed.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 12 was ADOPTED.
3:51:26 PM
Amendment 13
Co-Chair Hawker MOVED to ADOPT Amendment 13:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Health and Social Services
APPROPRIATION:Behavioral Health and Children' Services
ALLOCATION: (various, see table below)
ADD: $412.5 General Fund/Mental Health (1037)
Amount Fund Fund Title Appropriation Allocation
$100.0 GF/MH 1037 BTKH Behavioral Behavioral
Tribal/rural Health Health
system Administration
development
$25.0 GF/MH 1037 BTKH Behavioral Services for
Transitional Health Severely
Aged Youth Emotionally
Disturbed
Youth
$250.0 GF/MH 1037 BTKH Behavioral Services for
Community BH Health Severely
Centers Emotionally
Outpatient & Disturbed
Emergency Youth
Residential
Svc &
Training
$37.5 GF/MH 1037 BTKH Foster Children's Family
Parent & Services Preservation
Parent
Recruitment
training &
support
EXPLANATION: The Bring the Kids Home (BTKH) general
fund/mental health requests above provide a match to
funding provided by the Mental Health Trust Authority.
Without this match the BTKH strategies and goals
outlined in the five-year plan will be difficult to
achieve and the MHTAAR funding may not be provided.
The tribal/rural system development funding will
assist in establishing serious emotional disturbance
(SED) children's services in rural areas, improve
strategies specific to tribal systems, and improve
funding mechanisms (such as Medicaid at 100% FMAP).
The funding will support tribes to expand health
service delivery as recommended by Senate Bill 61 (Ch
10, SLA 2007) (Medicaid Reform report).
The Transitional Aged Youth project will start up and
sustain community-based capacity for transitional aged
youth to move into adulthood with age appropriate
services ensuring productive work or educational
activities. The goal of this increment is to target
youth who are vulnerable to moving into adult systems
such as adult justice, emergency mental health or
substance abuse, early pregnancy or hospital based
services.
The Community Behavioral Health Centers Outpatient &
Emergency Residential Services and Training program
provides innovative programs/training to reduce the
need for costly residential level services for youth
experiencing serious emotional disturbance. A separate
evaluation component is funded by the Trust to
demonstrate the cost effectiveness of these outpatient
services.
The Foster Parent and Parent Recruitment Training and
Support project provides resources to recruit and
screen potential foster parents, and provide training
and technical assistance for parents and foster
parents. Therapeutic Foster Homes are recognized in
BTKH planning as an economical and effective
alternative to costlier types of residential care for
youth experiencing serious emotional disturbance.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 13 would restore
half the money not funded in the budget subcommittee for
the Bring the Kids Home program. There had been caution
about agency growth, but after listening and consideration,
the consensus of the committee was to add back half the
funding.
Representative Gara thought there had been a good-faith
effort to properly fund the program, but supported the
governor's proposed increment. He hoped the Senate would
decide to accept the original proposal.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 13 was ADOPTED.
3:54:38 PM
Amendment 14
Co-Chair Hawker explained that Amendment 14 related to the
controversial question of which abortions the state should
fund. He emphasized that he would not ask any member to
support or not support the amendment and that each person
had to search their conscience.
3:55:54 PM
Representative Kelly MOVED to ADOPT Amendment 14:
OFFERED BY: Representatives Kelly and Stoltze
DEPARTMENT: Health and Social Services
APPROPRIATION: Health Care Services
ALLOCATION: Medicaid Services
DELETE: $615.9 General Funds (1004)
ADD CONDITIONAL LANGUAGE:
No money appropriated in this appropriation may be
expended for an abortion that is not a mandatory
service required under AS 47.07.030(a). The money
appropriated for Health and Social Services may be
expended only for mandatory services required under
Title XIX of the Social Security Act and for optional
services offered by the state under the state plan for
medical assistance that has been approved by the
United States Department of Health and Human Services.
EXPLANATION: In the calendar year 2009, 1,875
abortions were performed in Alaska (6.6% increase over
2008). Of these, 1,033 individuals received either
abortions or abortion-related services totaling the
estimated expenditure of $615,900 in general fund
dollars. None of these services qualified under the
Hyde Amendment for Medicaid reimbursements.
For over a decade, the Department of Health and Social
Services has been using general fund dollars to
replace Medicaid funds when paying for abortions
because the abortions were elective and did not
qualify under the Hyde Amendment for Medicaid
reimbursement.
The conditional language places on the record the
Legislature's objection to the administration using
general fund dollars to pay for elective abortions
that do not qualify under federal law for
reimbursement.
Co-Chair Hawker OBJECTED.
Representative Kelly explained that Amendment 14 would
remove general funds amounting to $615,900, the amount
estimated to perform elective abortions or abortion-related
services under AS 47.07.030.
Co-Chair Hawker clarified that the funds would be removed
from the state's Medicaid program.
Representative Kelly continued that the amendment would
record the legislature's objection to the use of general
fund Medicaid dollars to pay for elective abortions that
are not required by federal law and do not qualify for
federal reimbursement.
Co-Chair Hawker pointed to backup materials (copies on
file: February 22, 2010 letter from the Department of
Health and Social Services, and August 10, 2001 "Important
Notice: Payments for Abortion Procedures") validating the
numbers in the amendment and explaining why the Department
of Health and Social Services provides the abortions under
determinations made by the Alaska Court System.
Representative Gara stated that he did not support the
amendment, which would legislate which abortions are
allowed. He believed the choice was not up to government.
Representative Gara clarified that the amendment would not
deny Medicaid funding because of a court ruling that such
provisions are unenforceable.
Co-Chair Hawker detailed that the amendment has two
components: one would delete funds from the current year
Medicaid program and the other consists of conditional
intent language protesting the court's stand.
Co-Chair Hawker MAINTAINED his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
14.
IN FAVOR: Fairclough, Kelly, Thomas, Stoltze
OPPOSED: Doogan, Foster, Gara, Joule, Salmon, Hawker
Representative Austerman was absent from the vote.
The MOTION FAILED (6/4). Amendment 14 was not adopted.
4:00:23 PM AT EASE
4:10:10 PM RECONVENED
Amendment 14a
Co-Chair Hawker MOVED to ADOPT Amendment 14a:
OFFERED BY: Representative Hawker
DEPARTMENT: Health and Social Services
APPROPRIATION: Health Care Services
ALLOCATION: Medicaid Services
ADD CONDITIONAL LANGUAGE: No money appropriated in
this appropriation may be expended for an abortion
that is not a mandatory service required under AS
47.07.030(a). The money appropriated for Health and
Social Services may be expended only for mandatory
services required under Title XIX of the Social
Security Act and for optional services offered by the
state under the state plan for medical assistance that
has been approved by the United States Department of
Health and Human Services.
Representative Gara OBJECTED.
Co-Chair Hawker explained that Amendment 14a would add the
exact intent language offered by Amendment 14 without
removing the general funding.
Co-Chair Stoltze appreciated the compromise.
Representative Gara MAINTAINED his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
14a.
IN FAVOR: Fairclough, Joule, Kelly, Thomas, Stoltze, Hawker
OPPOSED: Foster, Gara, Salmon, Doogan
Representative Austerman was absent from the vote.
The MOTION PASSED (6/4). Amendment 14a was ADOPTED.
4:12:58 PM
Amendment 15
Co-Chair Hawker MOVED to ADOPT Amendment 15:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: BP Corrosion
APPROPRIATION: BP Corrosion
ADD: $4,000.0 General Fund (1004) Inc OTI
EXPLANATION: The State filed a complaint in Superior
Court on March 31, 2009, seeking recovery of lost
revenues for 2006-08 due to curtailments of oil
production stemming from British Petroleum Alaska
(BPXA)'s negligent corrosion practices. The 2006
pipeline spills and shutdowns, and the 2006-08
emergency pipeline replacements caused by the
negligent corrosion practices reduced oil production
during those years by at least 35 million barrels of
oil. The state's lost revenue for the period 2006-08
(based on the royalties and tax revenue lost to the
State) is preliminarily estimated at $900 million to
$1.2 billion. Civil penalties and assessments under
the environmental statues range from $1.6 million to
more than $7 million depending on whether BPXA's
corrosion practices are found to be grossly negligent.
When this complaint was originally evaluated, the
State estimated the cost of the case at $24 million.
FY2011 is a critical year for the litigation. The jury
trial is scheduled for September 2011 (FY2012). The
bulk of the discovery and post discovery pre-trial
work will occur in FY2011 under the Pretrial Order
entered by Judge Michalski last August. For the
discovery phase, this means offensive and defensive
discovery; discovery and dispositive motion practice;
third party discovery; numerous depositions; and
expert work, expert reports and expert
depositions. The post discovery pre-trial phase will
include dispositive motion practice, pre-trial
evidentiary motions, trial preparation, witness
testimony preparation, exhibits, demonstrative
exhibits, and designation of deposition testimony.
This is an electronic document intensive case.
Pursuant to the original investigative subpoenas, we
have received over 2 million pages of electronic
documents from BPXA. We are now engaged in document
discovery with BPXA and its working interest owners.
We have received over 120 discovery requests from BPXA
for state documents and we are collecting and
reviewing responsive documents. In anticipation of
contentious discovery disputes over claims of business
confidential information, the parties have agreed to
the appointment of a discovery master and a protective
order has been put in place. The case also requires a
number of experts to address pipeline corrosion, oil
field management, oil production mechanisms, reservoir
issues, and economic loss calculations.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 15 would restore
an item referred to full committee by the subcommittee for
$4 million, the full administrative request for the BP
Corrosion lawsuit. He noted that the change from the
administration's request would place funding in an
appropriation restricted to the BP Corrosion case; the
money could not be used elsewhere in the agency. The
department would be free to use other money from its budget
if needed for the case; it could also request additional
funds from the legislature.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 15 was ADOPTED.
4:14:52 PM
Amendment 16
Co-Chair Hawker MOVED to ADOPT Amendment 16:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: Oil, Gas and Mining
ADD: $3,000.0 General Funds (1004) Inc OTI
EXPLANATION: In FY2009, the Oil, Gas and Mining
section continued to receive funding with one-time
increments. In FY2009, the increments were $5,109.2
for Oil and Gas matters including Pt. Thomson
litigation and TAPS tariffs, and for TAPS Strategic
Reconfiguration. Although we believe our FY2011
efforts will require a similar amount, our reduced
request recognizes we are anticipating an estimated
$1,500.0 available from the appropriation made in
Section 1, Chapter 6 SLA 2007. The following pages
discuss the larger cases covered by this request.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 16 represented an
agency request for block funding requested in prior years
for general non-pipeline oil and gas work, specifically
related to Pt. Thompson litigation and Trans-Alaska
Pipeline System (TAPS) tariffs and reconfiguration. The
amount is always an estimate; the agency is asking that the
funding be restored at the $3 million level.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 16 was ADOPTED.
4:16:28 PM
Amendment 17
Co-Chair Hawker MOVED to ADOPT Amendment 17:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Foster,
Gara, Salmon
DEPARTMENT: Education and Early Development
APPROPRIATION: K-12 Support
ALLOCATION: Special Schools
ADD: $180.0 General Fund (1004)
EXPLANATION: This request is needed to provide for
additional transportation services for students from
Mat-Su to the Alaska School for the Deaf.
According to 4 AAC 33.070, the department is required
to operate a centralized school for the deaf. A school
district may operate the school for the deaf under an
agreement that includes an annual plan of service with
the department.
The Anchorage School District has been the school
district that operates the Alaska school for the deaf
under an agreement for many years. This agreement
constitutes a contractual relationship between the
State of Alaska, Department of Education and Early
Development and the Anchorage School District to
provide these services.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker pointed out that $180,000 had not been
approved for transportation for the Alaska School of the
Deaf. He stated that Amendment 17 would fund a contractual
commitment to the Anchorage School District to provide the
services. The school is a state school and the court had
determined that the state has an obligation to transport
its students.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 17 was ADOPTED.
4:18:40 PM
Amendment 18
Co-Chair Hawker described Amendment 18 as a comprehensive
legislative increment to the governor's proposed initiative
to combat domestic violence and sexual assault. He noted
that some committee members wanted resources committed more
rapidly and others were concerned about building the
initiative too quickly. He hoped for consensus.
Co-Chair Hawker highlighted several components of the
amendment, including one that would move the coordinator
for sexual assault from the Department of Law to the
Governor's Office as a special assistant, a $3 million
increment for legislative initiative, and increments
replacing reductions that were taken out by the committee.
He noted that the Alaska Mental Health Trust has offered to
fund half of the executive coordinator position.
4:21:30 PM
Co-Chair Hawker MOVED to ADOPT Amendment 18:
OFFERED BY: Representatives Hawker, Stoltze,
Fairclough, Thomas, Austerman, Joule, Kelly, Doogan,
Foster, Gara, Salmon
Domestic Violence and Sexual Assault Prevention
Initiative Amendments Summary
Department Component Project Amount
Governor Executive DVSA $200.0
Office Coordinator
Law Various Replacement of $1,807.0
Components Federal earmark
Public Safety CDVSA Victims' $125.0
Services
Public Safety AST DVSA $725.0
Detachments investigations,
training and
victim exams (3
PCNS)
Office of the Executive Planning, $3,000.0
Governor Office development and
execution
TOTAL $5,857.0
DEPARTMENT: Governor
APPROPRIATION: Executive Operations
ALLOCATION: Executive Office
ADD: $100.0 GF (1004) and 1 PFT
$100.0 MHTAAR (1092)
EXPLANATION: The State of Alaska struggles to combat
appalling levels of sexual assault. According to
Crimes in the United States, 2006, the annual FBI
compilation of crime statistics, Alaska has a rate of
sexual assault of 76 per 100,000. This is over twice
the national average. 48% of these sexual assaults
are handled by C Detachment, Division of the Alaska
State Troopers located in Bethel. In 2005, the number
of reported rapes in Bethel (population 6,468) was the
same as Anchorage (population 279,243).
The Governor introduced budget proposals for a
Domestic Violence/Sexual Assault initiative. Under a
10-year plan, he envisions the State ramping up
prevention, victims' services, investigations and
prosecutions to significantly reduce the incidence of
these crimes.
A central element in the Governor's initiative is a
request for a permanent, full-time, policy-level
position to coordinate the related activities of
multiple state agencies and nonprofits. To this end,
the Department of Law requests one PFT and $200.0 GF
funding for this Coordinator position.
DEPARTMENT: Law
APPROPRIATION: Criminal Division
ALLOCATION: Various - See allocations below
ADD: $1,807.0 GF (1004)
EXPLANATION: Three federal grants that employ
approximately 17 FTEs are terminating this calendar
year, one on June 30th, another on September 30th and
the last December 31st. Twelve of these positions are
exclusively devoted to sexual assault or domestic
violence and the remainder prosecute primarily sexual
assault and domestic violence. The Department is
hoping to replace these funds with other yet-to-be-
identified federal funds. Pending the identification
of another funding source, the Department is
requesting a $1,807.0 fund source switch from Federal
funds to General funds. These were originally proposed
as fund sources changes; House Finance accepted the
federal decrements, leaving an unmet GF need of equal
size. These replacement general funds will allow the
department to continue employing attorneys and
paralegals in Bethel, Barrow and Anchorage to aid in
the prosecution of domestic violence as well as adult
and child sexual assault cases.
The $1,807.0 GF amendment request is comprised of:
· 2nd Judicial: Earmark $90.0 and Rural Prosecution
& Sexual Assault $90.1.
· 3rd Judicial-Anchorage: Rural Prosecution &
Sexual Assault $335.6.
· 3rd Judicial-Outside Anchorage: Rural Prosecution
& Sexual Assault $454.6.
· 4th Judicial: Earmark $285.0 and Rural Prosecution
& Sexual Assault $11.1.
· OSPA: Earmark $271.6 and Rural Prosecution &
Sexual Assault $269.0.
Allocations GF (1004)
2nd Judicial 180.1
3rd Judicial - Anchorage 335.6
3rd Judicial - Outside
Anchorage 454.6
4th Judicial 296.1
Criminal Appeals/Special
Prosecution 540.6
1,807.0
DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and Sexual
Assault
ALLOCATION: Council on Domestic Violence and Sexual
Assault
ADD: $125.0 General Fund (1004)
EXPLANATION: This increase will help to ensure ongoing
funding of direct victims' services grants, and
research and prevention activities in FY2011.
The amount of funding from federal competitive and/or
one-time grants projected to be available over the
course of state FY2011 is unknown. The Governor's
goal is to ensure ongoing funding for this statewide
priority of stopping the cycle of domestic violence
and funding prevention and adequate victim services.
Although the department and the Council will continue
to aggressively seek additional grant funds, this
increase in general funds will provide a reliable
funding stream for victims' services providers and
prevention activities.
DEPARTMENT: Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: Alaska State Trooper Detachments
ADD: $725.0 General Fund (1004) + 3 PFTs
EXPLANATION: This amendment restores the Governor's
request to provide general funds to the Alaska State
Troopers for increased domestic violence and sexual
assault (DV/SA) related investigations, training, and
victim exam costs. This increment is an important part
of the Governor's comprehensive initiative to fight
the cycle of sexual assault and domestic violence.
Three new State Trooper/Investigator positions in
Anchorage ($500.0) will primarily focus on providing
vital follow-up investigative activities specific to
sexual assault and sexual abuse of minor cases. The
trooper/investigators will coordinate their
investigative activities with the responding
trooper/officer as well as the prosecutor assigned to
the case. Follow-up investigative activities will
include locating and interviewing witnesses,
investigating "prior bad acts" committed by the
offender, determining if there are any additional
victims, and conducting numerous other investigative
actions recommended by the prosecution. The department
anticipates that these follow-up activities will
provide a more thorough report, and thus support the
overall goal to enhance prosecution and hold offenders
accountable.
The department will contract with a trainer ($75.0) to
increase and enhance training to rural Alaska.
Training will be provided on DV/SA related issues to
Village Public Safety Officers, Village and Tribal
Police Officers, and other first responders such as
behavioral health aides and village health aides. The
goal is to increase understanding and recognition of
these crimes and increase skills specific to the
discipline in an effort to better enhance services to
victims in rural Alaska as well as increase reporting.
Research has shown that there is a 40 percent
reduction in the rate of serious injury from assault
in communities with VPSO or VPO.
Increased contractual services ($150.0) will assist
local governments with paying the cost of forensic
medical sexual assault exams. Funds will be used for
emergency circumstances in cases in which, without the
financial assistance, the necessary exam would not
take place and vital evidence would be lost. Funds
may be used to assist with transportation to and from
a facility that conducts the initial exam as well as
the follow-up exam. Collection of forensic evidence
and documentation of injuries are two key components
of a forensic exam and both of these increase
successful prosecutorial outcomes (convictions). The
funds will also allow certain victims access to
services that may not be available in their
communities.
Page 68, following line 22:
Insert a new subsection to read:
"(e) The sum of $3,000,000 is appropriated from
the general fund to the Office of the Governor for
planning, development, and execution of prevention and
intervention strategies to reduce the occurrence of
domestic violence and sexual assault in the state for
the fiscal year ending June 30, 2011. It is the intent
of the legislature that this appropriation be used to
support planning, victimization studies, initiative
evaluation activities, targeted wellness programs,
multi-disciplinary rural community pilot projects,
batterer intervention programs, evaluation of
evidence-based best practices, children's advocacy
activities, health and personal safety coordination,
public education and marketing, pro bono legal
referrals, trauma training for behavioral health
providers, and similar activities."
Co-Chair Stoltze OBJECTED.
Representative Fairclough briefed the committee regarding
Amendment 18. She reported that there had been meetings
with the governor, the attorney general, the commissioners
of the Departments of Education and Early Development,
Corrections, Public Safety, the Alaska Mental Health Trust
Authority, and other agency representatives, including
advocacy groups from Fairbanks, Bethel, Anchorage, Anvik,
Juneau, and others. She commended work already done and
pointed out the amount of work still needed in order to
reduce child abuse, sexual assault, and domestic violence
in all Alaskan communities.
Representative Fairclough stated that the $3 million would
place the initiative on the governor and would provide a
foundation to come back to the legislature for support to
implement the plan. She acknowledged work done by Jeff
Jessee [Chief Executive Officer of the Alaska Mental Health
Trust Authority]. She referred to backup material. She
believed the underlying issue for Alaskans was alcohol and
substance abuse. She referenced the Family Wellness
Warriors Initiative and emphasized the importance of
partnering with tribal organizations, the federal
government, and communities.
Representative Fairclough suggested that a pilot program be
established to build a strong foundation for the work.
4:26:14 PM
Co-Chair Hawker acknowledged compromises that had already
been made and emphasized that the responsibility would be
placed on the executive office.
Representative Kelly spoke in support of the amendment. He
pointed out that the list had generated good discussion and
noted the importance of employing people as part of solving
the problem of violence.
Representative Fairclough spoke to the willingness of the
communities of Bethel and Dillingham to host a creative
pilot program. She hoped that the governor would recognize
the necessity of a jobs initiative in the same communities.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 18 was ADOPTED.
Co-Chair Hawker pointed out that the amendment had the
support of all members of the committee.
4:30:29 PM
Amendment 19
Co-Chair Hawker MOVED to ADOPT Amendment 19:
OFFERED BY: Representatives Hawker, Stoltze,
Fairclough, Thomas, Austerman, Joule, Kelly, Doogan,
Foster, Gara, Salmon
Part A - Job Training and University of Alaska tuition
waivers; foster parent recruitment and notification
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Children's Services Management
ADD: $175.0 GF (1004)
ADD: It is the intent of the Legislature that the
Office of Children's Services shall effectively use
these funds to address the stated foster youth
stability and success goals stated below:
EXPLANATION:
$85,000: Supplement Employment Training Vouchers for
youth covered by the Independent Living Program.
$55,000: Fund an additional 10 University of Alaska
Presidential Tuition Waivers beyond the annual 10
waivers funded by the University.
$35,000: Television ads to recruit foster parents in
shortage areas, including ads on highly watched
television programs ($30,000); annual mailing to
foster parents on the OCS FosterWear discount clothing
plan ($5,000).
Part B - Mentorship Program
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Family Preservation
ADD: $200.0 GF (1004)
ADD: It is the intent of the Legislature that the
Office of Children's Services shall effectively use
these funds to address the stated foster youth
stability and success goals stated below:
EXPLANATION: $200,000: Competitive grant to non-profit
agencies to match volunteer mentors statewide with
foster youth and youth coming out of care for ages of
16 ½ through 21. OCS shall identify the youth to be
served, and coordinate with the grantee that recruits,
screens and trains the volunteer mentors.
Part C - Homeless Prevention
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Foster Care Augmented Rate
ADD: $100.0 GF (1004)
ADD: It is the intent of the Legislature that the
Office of Children's Services shall effectively use
these funds to address the stated foster youth
stability and success goals stated below:
EXPLANATION: $100,000: Housing assistance for youth
facing the prospect of homelessness after receiving
the existing short-term rental help currently offered
by the Independent Living Program.
Part D - Maintain Current School Enrollment
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Foster Care Special Need
ADD: $30.0 GF (1004)
ADD: It is the intent of the Legislature that the
Office of Children's Services shall effectively use
these funds to address the stated foster youth
stability and success goals stated below:
EXPLANATION: $30,000: These funds shall be used to
permit foster youth who move between placements to
stay, when in the youth's best interest, in their
original school for the remainder of the school term.
These funds shall not be used for those "homeless"
youth already being provided school stability services
under the Federal McKinney-Vento Act.
Part E - Maintain Current School Enrollment
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Foster Care Special Need (Maintain
Current School Enrollment)
DELETE: $50.0 GF (1004)
IncOTI
ADD: $50.0 GF (1004)
ADD: It is the intent of the Legislature that the
Office of Children's Services shall effectively use
these funds to address the stated foster youth
stability and success goals stated below:
EXPLANATION: The Health and Social Services House
subcommittee approved One-Time funding in the amount
of $50,000 for transportation of foster youth. This
amendment would place $50,000 of general funds in the
base budget.
Co-Chair Stoltze OBJECTED.
Representative Gara explained that Amendment 19 would
support strong foster care programs. He informed the
committee that currently there is $150,000 in federal
funding for job training and related services for youth
coming out of foster care, which must be matched by the
state at $85,000. He claimed that each dollar spent
prevents later expenditure.
Representative Gara stated that currently the University of
Alaska extends ten scholarships each year for youth coming
out of the foster care system; $55,000 could increase the
number of college scholarships by ten. Studies show that
attending multiple schools creates instability and
increases the possibility of failure; there is a nation-
wide movement to keep foster kids in the same school.
Co-Chair Hawker said that he did not want to leave any
group out.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 19 was ADOPTED.
4:34:30 PM
Amendment 20
Co-Chair Hawker MOVED to ADOPT Amendment 20:
OFFERED BY: Representatives Hawker, Stoltze,
Fairclough, Thomas, Austerman, Joule, Kelly, Doogan,
Foster, Gara, Salmon
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Family Preservation
ADD: $160.5 GF (1004)
ADD: Two Permanent Full-Time Positions
EXPLANATION: The Independent Living Program (ILP) is
OCS' effort to assist youth, after they leave care,
with work, school, job training, and life skills.
After-care outcomes, from homelessness to criminal
involvement, and lack of success, are troubling. The
ILP, which covers over 350 youth from ages 17-21,
cannot possibly work with only four statewide staff.
OCS concedes current staff are overwhelmed, and unable
to help adequately in individual cases.
Two additional staff would help effectively extend
educational, work and life skill guidance to youth
coming out of care.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker provided a brief summary of Amendment 20.
Representative Gara detailed that the state has an
independent living program for youth coming out of foster
care. The purpose of the program is to aid foster youth in
the transition towards jobs, school, vocational education,
and housing. He underlined that the program is
understaffed; there are only four staff positions statewide
to serve the 350 youth between ages 17 and 21 who qualify
for the program. He pointed out that the Office of
Children's Services has acknowledged that it cannot do the
job with four staff members. The amendment would add two
additional staff. He stressed that the amendment would make
the state a better guardian of the youth.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 20 was ADOPTED.
4:37:03 PM
Amendment 21
Co-Chair Hawker MOVED to ADOPT Amendment 21 (26-
GH2823\M.12, Bailey, 3/8/10):
OFFERED BY: Representatives Hawker, Stoltze, Joule,
Fairclough, Thomas, Austerman, Kelly, Doogan, Foster,
Gara, Salmon
Page 63, following line 7:
Insert a new bill section to read:
"*Sec. 15. DEPARTMENT OF EDUCATION and EARLY
DEVELOPMENT. (a) The sum of $960,000 is appropriated
from the general fund to the Department of Education
and Early Development, teaching and learning support,
student and school achievement allocation, for support
of the Alaska Native Science and Engineering Program
for the fiscal year ending June 30, 2011.
(b) If the University of Alaska receives federal
receipts for the Alaska Native Science and Engineering
Program, the appropriation made in (a) of this section
is reduced by the amount of federal receipts received
by the University of Alaska, but the reduction may not
exceed $225,000."
Renumber the following bill sections accordingly.
Page 80, line 28:
Delete "25, 26, and 28"
Insert "26, 27, and 29"
Renumber the following bill sections accordingly.
Page 81, line 3:
Delete "Sections 34 and 36"
Insert "Sections 35 and 37"
Page 81, line 4:
Delete "sec. 37"
Insert "sec. 38"
EXPLANATION: This amendment provides funding that will
allow the department to cooperate with the University
of Alaska in funding the Alaska Native Science and
Engineering Program (ANSEP) through grants and/or
contracts with school districts and the University of
Alaska.
Beginning with high school freshmen, structured
programs lead students each step of the way through
high school, into the undergraduate years, on to
graduate school, and into professional life. The
funding in this amendment will provide a pre-college
opportunity for students to build a strong foundation
preparing them for success in science and engineering.
The pre-college component targets high school students
to enroll and successfully complete trigonometry,
chemistry, and physics, ensuring they are academically
ready for the university level engineering and science
coursework.
This funding will match federal and private funding
and will provide programmatic support for this
nationally recognized model for excellence in science
and engineering education. Because the amount of
federal funding is unknown, the amendment includes
language that reduces general funds by up to $225,000
if the University receives federal grants for ANSEP.
Co-Chair Stoltze OBJECTED.
Representative Joule spoke in strong support of Amendment
21. He reviewed the history of the Alaska Native Science
and Engineering Program (ANSEP). The program began in 1995
with one student at the University of Alaska; 149 Alaska
Natives have graduated through the program with a
Bachelor's degree in science; and currently, 250 students
are enrolled in the program. He believed the program has
been successful because it is non-traditional. The effort
reaches into middle and high schools and works with
students and districts to build confidence and master the
disciplines of math and science. The Department of
Education and Early Development has cooperated with the
university to create a model program that has been adopted
by several other states. Native people are prepared for
good jobs. The program has been supported financially by
private industry and Native corporations; the amendment
would allow the state to participate in the effort.
Co-Chair Hawker asked whether the program served only
Alaska Natives. Representative Joule replied that there are
non-Natives in the program.
Co-Chair Stoltze stated his enthusiastic support for the
amendment and listed groups that also supported it.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 21 was ADOPTED.
4:41:44 PM
Amendment 22
Co-Chair Hawker MOVED to ADOPT Amendment 22:
OFFERED BY: Representatives Hawker, Stoltze,
Thomas, Austerman, Fairclough, Joule, Kelly, Doogan,
Foster, Gara, Salmon
DEPARTMENT: Department of Commerce, Community
and Economic Development
APPROPRIATION: Community Assistance and Economic
Development
ALLOCATION: Community and Regional Affairs
ADD: $700.0 GF
EXPLANATION: This funding would support an operating
grant to Ilisagvik College for work force development
programs. These programs include a satellite
vocational technical instructor, driver's education
and CDL instructor, marine licensing, regulatory
mandated trainings for vocational occupations, and a
workforce development training manager. Ilisagvik
College is the only two year college in Northern
region and it has a proven track record of providing
training and college prep for students across the
state.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained Amendment 22 as part two of an
education commitment to Ilisagvik College.
Representative Joule detailed that Ilisagvik College is an
accredited institution (academic as well as vocational and
technological) in Barrow. The institution is a public non-
profit primarily funded by the North Slope Borough. The
amendment would involve the state as well, beginning with a
$700,000 match for federal funds that are coming in.
Co-Chair Hawker emphasized that the amendment was about
jobs for kids.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 22 was ADOPTED.
4:43:55 PM
Amendment 23
Co-Chair Hawker MOVED to ADOPT Amendment 23:
OFFERED BY: Representatives Hawker, Stoltze,
Thomas, Austerman, Fairclough, Joule, Kelly, Doogan,
Foster, Gara, Salmon
DEPARTMENT: Education and Early Development
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Early Learning Coordination
ADD: $600.0 GF 1004
INTENT: It is the intent of the Legislature that this
funding be granted by the Department in the manner the
Department determines will most effectively enhance
pre-kindergarten educational development to: Best
Beginnings for its early education, partnership grant
and Imagination Library efforts; and/or to existing
providers of Parents as Teachers pre-kindergarten
efforts.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 23 would provide
additional support to the Department of Education and Early
Development for pre-kindergarten programs such as Best
Beginnings, the Imagination Library, and Parents as
Teachers. He referred to earlier testimony regarding the
programs.
Representative Gara pointed to a state pilot program on
early education; for the present he thought current early
education programs should be supported. He believed the
Parents and Teachers and Best Beginnings programs were
working well. He believed the department would determine
how to use the funds most effectively.
Representative Kelly noted past criticisms of early
education and government involvement. He spoke in support
of Best Beginnings because it involves members of the
private sector cooperating with one another. He commended
Sue Hull [Best Beginnings Early Learning Council member].
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 23 was ADOPTED.
4:47:29 PM AT EASE
5:00:39 PM RECONVENED
Amendment 24
Representative Joule MOVED to ADOPT Amendment 24:
OFFERED BY: Representatives Joule, Hawker, Doogan,
Gara
DEPARTMENT: Department of Commerce, Community and
Economic Development
APPROPRIATION: Corporation, Businesses, and
Professional License
ALLOCATION: Corporation, Businesses, and
Professional License
ADD: $63.0 RSS (1156) Inc OTI
EXPLANATION: The funding would be used to hire an
additional investigator for the Big Game Commercial
Services Board to ensure compliance with transporter
license requirements. Over the last several years
there has been increasing user conflict in game units
and the Big Game Commercial Services Board needs an
additional investigator to begin to work on the
growing problem. The investigator would focus
primarily on transporter issues in areas of the state
having the greatest concerns and would compile a
report to the Legislature to be presented in 2011.
Enforcement measures will include inspecting
transporter licenses and conducting inspections at
places of business and in the field.
Representative Kelly OBJECTED.
Representative Joule explained that Amendment 24 would add
$63,000 to fund an investigator position (and investigator
travel) for the Big Game Commercial Services Board. The
investigator would collect data to ensure compliance with
transporter license requirements. He noted that there
currently was no data. A report would be generated and
delivered to the legislature. He added that the funding was
one-time only.
Representative Joule detailed that the investigator would
travel to "hot spots" to inspect licenses, websites,
advertisements, and places of business to check compliance
related particularly to the proper use of the incidental
clause. The incidental clause (found in the transporter
definition) excludes some air taxis and air carriers from
the license requirements.
Representative Joule pointed out that in 2008, there were
118 trips made by four transporters. The board estimates
that each transporter took two to seven clients per trip,
amounting to a total of between 236 and 826 clients. He
emphasized that the intent is not to stop transporters but
to get an idea of the numbers and to ascertain whether game
is being used and reported accurately.
5:05:22 PM
Representative Kelly spoke in opposition to the amendment.
He stated that the subcommittee for the Department of
Natural Resources held a hearing and received much input
from both sides of the issue. He noted that the guide areas
are in the process of being divided into areas with
assigned guides; currently the areas are open. The
department has slowed the process down and agreed to wait
for implementation. He voiced concerns regarding policy
that could result in increased oversight and control. He
was unsure what the position would do when people are
already operating under rules in place. He did not think
the amendment was the right approach.
Co-Chair Hawker asked whether the position funded was
temporary and part-time (not benefited) and whether the
funding was one-time only. He noted that Karen Rehfeld
[Director of the Office of Management and Budget] nodded in
the affirmative.
Representative Kelly reiterated concerns about temporary
positions that seem to become permanent.
Representative Joule argued that policy could not be made
until the full extent of the issue was known. He described
personal experience and pointed out that one of the biggest
problems was litter. He believed the funded position would
help set policy.
Co-Chair Hawker acknowledged the controversial nature of
the issue.
5:10:54 PM
A roll call vote was taken on the motion to adopt Amendment
24.
IN FAVOR: Foster, Gara, Joule, Salmon, Thomas, Doogan,
Fairclough, Hawker
OPPOSED: Kelly, Stoltze
Representative Austerman was absent from the vote.
The MOTION PASSED (8/2). Amendment 24 was ADOPTED.
Co-Chair Stoltze stated that his opposition to the
amendment was in line with past opposition to similar
issues.
5:12:32 PM
Amendment 25
Representative Gara MOVED to ADOPT Amendment 25:
OFFERED BY: Representatives Gara and Doogan
DEPARTMENT: Office of the Governor
APPROPRIATION: Executive Operations
ALLOCATION: Executive Office
ADD: Intent Language
It is the intent of the Legislature that the Governor
require Executive Agencies, and that the University
President require senior staff to enhance their
efforts where possible to find efficiencies in the way
departments can achieve their program goals. In
certain circumstances, the state will be best served
by seeking high level agency management staff who may
not have a background in an agency's core subject
area, but have a background that will help the agency
operate more effectively and efficiently in achieving
its statutory and constitutional goals.
To this end, the Legislature intends that, where
effective, agencies be directed to consider hiring
senior management staff that have management or
workforce efficiency skills that can help them
identify areas of waste or inefficient operations, and
help recommend internal corrective actions that will
save the public resources.
This statement is not intended to express displeasure
with any particular state management staff. It is
intended to help the state and University to achieve
their mandates in the most efficient manner in the
future as the state faces the potential of increasing
fixed costs and declining revenues.
Co-Chair Hawker OBJECTED.
Representative Gara stated that Amendment 25 would
encourage hiring of personnel with management experience in
order to increase efficiency. He referenced committee
agreement regarding saving money. He believed management
personnel would better serve the state if they had
management experience and could run offices more
efficiently.
Representative Gara WITHDREW Amendment 25.
Co-Chair Hawker agreed that competent and experienced
people should be hired but concluded that the language of
the amendment was more philosophical than appropriate for a
budget bill.
Representative Kelly complimented other people on the Best
Beginnings program.
5:17:07 PM
Amendment 26
Representative Gara MOVED to ADOPT Amendment 26:
OFFERED BY: Representatives Gara, Doogan
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Budget Reductions/Additions-Systemwide
ADD: Priority Program Enhancement and Growth-$5,462.3
GF (1004), $1,988.4 Univ Rcpts (1048), $446.3 Federal
Rcpts (1002), $380.0 I/A Rcpts (1007)
ƒEnergy-$475.0 GF (1004)
ƒScience, Technology, Engineering & Math
(STEM)-Total $983.7; $707.6 GF (1004),
$243.7 Univ Rcpts (1048), $32.5 Federal
Rcpts (1002),
ƒClimate-Total $1,508.0; $594.5 GF (1004),
$476.0 Univ Rcpts (1048), $275.0 Federal
Rcpts (1002), $162.5 I/A Rcpts (1007)
ƒHigh Demand Jobs-Total $4,032.8; $2,616.5 GF
(1004), $1,065.1 Univ Rcpts (1048), $138.8
Federal Rcpts (1002), $217.5 I/A Rcpts
(1007)
ƒStudent Success Initiatives-Total $1,272.3;
$1,068.7 GF (1004), $203.6 Univ Rcpts (1048)
EXPLANATION: The intent of this amendment is to
provide additional funding for the University of
Alaska's Priority Programs. University of Alaska's
goal is to graduate an additional 640 students in high
demand jobs by FY '15. This increment would provide
resources to continue toward that goal by allowing UA
to graduate an additional 170 students annually and
increase retention of 100 students annually.
Co-Chair Hawker OBJECTED.
Representative Gara argued that Amendment 26 would fund
something not otherwise funded in the budget. He explained
that the university had an increment for $11 million to
move ahead with priority programs that it wants to grow,
including coursework in the fields of healthcare,
engineering, math, science, teaching, and climate change
(where federal funds can be leveraged). He emphasized that
Alaska is "ground zero" on climate change and should be the
first place receiving funding to study the issue. The
amendment would give roughly half of the original increment
to the university. He believed the university effectively
created jobs. He was concerned that healthcare and teaching
jobs would be filled by people from outside Alaska if
people were not trained.
Co-Chair Hawker pointed to the committee-as-a-whole meeting
regarding the university and concurrence about "cherry-
picking" funding. He believed the committee supported the
university to prioritize needs and to live within its
means. He expressed concerns about future funding ability.
He noted funding to school districts as a model.
5:22:35 PM
Representative Fairclough stated that she did not support
the amendment. She agreed that the committee-as-a-whole had
discussed a formulaic approach for the university. She
stated for the record that the university's budget had been
increased by $17 million. The university had been asked to
prioritize spending.
Co-Chair Hawker MAINTAINED his OBJECTION.
Representative Gara maintained that the budget would be a
status quo budget and that the university would not be able
to enhance its high-demand programs without an additional
increment.
A roll call vote was taken on the motion to adopt Amendment
26.
IN FAVOR: Gara, Salmon, Foster
OPPOSED: Joule, Kelly, Thomas, Doogan, Fairclough, Stoltze,
Hawker
Representative Austerman was absent from the vote.
The MOTION FAILED (7/3). Amendment 26 was not adopted.
5:25:53 PM
Amendment 27
Representative Gara MOVED to ADOPT Amendment 27:
OFFERED BY: Representatives Gara, Doogan
DEPARTMENT: Health and Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: MH Trust:
ABADA-Grants for community based
substance abuse services, 1037
GF/MH, $2,000.0
EXPLANATION: The amendment is intended to increase
funding for Behavioral Health Grants. The increment
is to be distributed to existing grantees to in a
manner to most efficiently decrease waitlists for
alcohol and substance abuse treatment.
Co-Chair Hawker OBJECTED.
Representative Gara informed the committee that Amendment
27 would address the shortage of alcohol and substance
abuse treatment services in Alaska. He pointed to the
length of waiting lists. He provided the example of a
mother whose children were taken from her. She was on a
waiting list for a year, during which time the state paid
for foster care for her children ($30 per day per child).
She was successful at recovery and able to get her children
back, but the year she spent on the waiting list cost the
state significantly. He believed it would be more efficient
to put money into treatment. He pointed to positive steps
that had already been taken and urged more action,
especially for people who were willing to get treatment.
5:29:06 PM
Co-Chair Hawker spoke in opposition to the amendment and
stated concern about spending money without a long-term
strategy. He agreed that substance abuse was a core issue
and a root cause of domestic violence and sexual assault.
He believed the initiative for domestic violence and sexual
assault would include funds for enhancement of a better-
managed process.
Representative Gara acknowledged work done by
Representative Fairclough.
Co-Chair Hawker MAINTAINED his OBJECTION.
5:31:29 PM
A roll call vote was taken on the motion to adopt Amendment
27.
IN FAVOR: Salmon, Foster, Gara
OPPOSED: Joule, Kelly, Thomas, Doogan, Fairclough, Stoltze,
Hawker
Representative Austerman was absent from the vote.
The MOTION FAILED (7/3). Amendment 27 was not adopted.
5:32:24 PM
Amendment 28
Co-Chair Hawker MOVED to ADOPT Amendment 28:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Foster,
Gara, Salmon
DEPARTMENT: Commerce Community & Economic Development
APPROPRIATION: Serve Alaska
ALLOCATION: Serve Alaska
ADD: $125.0 General Fund Match, 1003
ADD: $125.0 Federal Fund, 1002
EXPLANATION: This amount will increase Serve
Alaska's operating budget enough to hire one new
staffer. Increased staff capacity will allow the
agency to access 1:1 federal funding available for
administrative services. Increased capacity also gives
Serve Alaska the opportunity to access up to $1.4
million in new funds.
In 2005, the Corporation for National Community
Service conducted a performance review of all its
agencies, of which Serve Alaska is one. At that time,
Serve Alaska provided services and funding for 3
grantees and 5 programs and the review found the
agency was at maximum administrative capacity. Now,
Serve Alaska provides services and funding for 5
grantees and 12 programs. New federal funds are
available for Serve Alaska, should the agency create
administrative capacity to manage the funds.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker noted that Amendment 28 would provide
additional funding for the Serve Alaska program.
Representative Foster detailed that since 2005, Serve
Alaska had leveraged over $13 million to the state in
federal grants. He pointed out that the state has provided
less than $500,000 in funding, or less than 10 percent of
the total. Since 2001, Serve Alaska staff has not
increased. The state's matching obligation has never been
fully met. Since 2007, existing staff has more than doubled
the number of programs administered; staff capacity is
currently at a maximum. The amendment would be for
administrative services and monitoring sub-grantees for
fiscal and program compliance, and expenses for commission
meetings and training. The administrative services federal
grant requires a one-to-one state match; with the grant the
state could potentially access another $1.4 million in
federal funds due to the increase in administrative
capacity. He stressed that without an additional staff
person, the state would not be able to access additional
federal funds.
Co-Chair Hawker clarified that the amendment is for
administrative capacity to bring additional volunteers to
the state. Representative Foster agreed.
Vice-Chair Thomas commented in support of the amendment.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 28 was ADOPTED.
5:35:14 PM
Amendment 29
Representative Foster MOVED to ADOPT Amendment 29:
OFFERED BY: Representatives Foster, Thomas, Doogan,
Gara
DEPARTMENT: Commerce, Community & Economic Development
APPROPRIATION: Community Assistance & Economic
Development
ALLOCATION: Community & Regional Affairs
ADD: $343.9 General Funds (1004) and 1 PFT
EXPLANATION: The Division of Community and Regional
Affairs (DCRA) is requesting an increase to add $343.9
in general funds and one full-time position in the
FY11 operating budget. The increase will pay for three
Local Government Specialist (LGS) positions to provide
local government advice and assistance as required in
Article X of Alaska's state constitution. Two of the
three positions were transferred in from within the
Department.
The general funded LGS positions serve boroughs,
cities, tribal governments, and community nonprofits
that provide public services in rural communities.
The LGS's provide public administration assistance on
elections, Title 29 compliance, power cost
equalization, accessing revenue sources, Title 4 Local
Option, gaming, personnel and financial management.
There are 466 entities in Alaska eligible for general
funded LGS services. Of these, 386 are located where
there is a population of 25 to 2,500. Forty percent
(40%) of the 386 entities are not meeting basic
management indicators. Currently, three existing
general funded LGS's provide these entities assistance
when a situation reaches a crisis level or when
services are likely to be cut off.
Within the last year, LGS assistance has resolved
about $300.0 in tax issues for five communities,
garnered PCE reimbursements for four communities,
claimed $300.0 in revenue sharing/PILT, negotiated
repayment schedules for $480.0 vendor debt in two
communities (keeping the lights on), and saved
.40/gallon on heating fuel and increased use of
purchasing power agreements for five communities.
The addition of three fully funded LGS positions will
allow DCRA to move the program from crisis response
mode to working with the communities' requests for
training and assistance that prevents crisis.
Co-Chair Hawker OBJECTED.
Representative Foster provided an overview of Amendment 29.
He explained that there were 386 entities in Alaska
[boroughs, cities, tribal governments, and community
nonprofits] with populations between 25 and 2,500. Forty
percent of those entities are not meeting basic management
indicators, including unmet audit requirements, unresolved
audit findings, no worker's compensation insurance policy
in effect, federal tax liens, no adopted budget, and no
election held. Currently, there are three local government
specialists (LGSs) providing entities with assistance when
there is a crisis. The amendment would allow $343,900 for
the hiring of three more LGSs who could help to train and
assist entities before they reach a crisis point.
Co-Chair Hawker believed the amendment brought forward a
budget proposal in the governor's original budget that was
not accepted by the subcommittee. Representative Foster
concurred.
Co-Chair Hawker thought a technical correction to the
amendment was needed. The amendment proposes adding one
permanent position; the other two already exist in the
department. The amendment would provide funding for the
other two positions and for adding one position.
Representative Foster agreed.
Co-Chair Hawker noted concerns in the committee about the
issue.
5:37:58 PM
Vice-Chair Thomas reported that the Southeast mayors had
expressed concerns. He MOVED a conceptual amendment to
Amendment 29:
Delete $343.9 and add $250.0
Delete "and 1 PFT" (full-time position)
Co-Chair Hawker offered support of the conceptual
amendment.
There being NO OBJECTION, the amendment to Amendment 29 was
ADOPTED.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 29 as amended was ADOPTED.
Co-Chair Hawker commented that the communities needed the
assistance offered by the amendment.
5:41:37 PM
Amendment 30
Representative Foster MOVED to ADOPT Amendment 30:
OFFERED BY: Representatives Foster, Doogan
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Community Assistance & Economic
Development
ALLOCATION: Community and Regional Affairs
ADD: $150.0 General Fund, 1004
EXPLANATION: Increment for Alaska Legal Services
Corporation (ALSC) will replace reductions placed on
Community Initiative Grant in FY10 and bring funding
in line with FY09 levels. The Board has set the
priority to maintain an office in all communities with
a superior court judges. With current funding ALSC
will be unable to staff attorneys for the offices in
Kenai, Kotzebue, and Nome. This funding would provide
an attorney for two of these offices.
Co-Chair Hawker OBJECTED.
Representative Foster provided details regarding Amendment
30. The current funding for the Alaska Legal Services
Corporation (ALSC) will not provide for attorneys in Nome,
Kotzebue, or Kenai, and the offices are at risk. The
funding for ALSC in FY 09 was $200,000 from the Department
of Commerce, Community, and Economic Development, with
$317,000 in grants, or $517,000; in FY 10, the amount was
$200,000 plus $154,000 in grants. The grants were reduced
due to caps. The amendment would add another $150,000 so
that the amount would be closer to the FY 09 amount.
Representative Foster continued that in past years, state
aid for legal support has been substantially greater. For
example, in FY 84 the governor's funding was for $1.2
million. Nine offices have been closed since then due to
reduced funding. He wanted to avoid more closures.
Co-Chair Hawker MAINTAINED his OBJECTION. He detailed his
opposition to the amendment. He had been present during the
FY 09 general funding; the legislature had funded money
into the faith-based initiatives sections of the Department
of Health and Human Services, and ALSC received most of the
money. He stated that that was not the intent. He believed
the money should be more judiciously allocated. He pointed
to reservations about the efficiency of ALSC operations and
concerns about litigation that some feel the state should
not be involved in. He spoke to concerns about how ALSC was
coordinating the pro bono activities of the Alaska Bar
Association.
5:46:47 PM
Co-Chair Hawker urged better coordination of pro bono
activities through a different source. He noted money in
the Department of Law's budget for services that ALSC has
attempted to provide in communities. He added that the
request had come forward late in the process.
Representative Fairclough pointed out that a recommendation
supporting Amendment 18 had suggested that the governor use
the Alaska Network on Domestic Violence and Sexual Assault;
while the Council on Domestic Violence and Sexual Assault
(CDVSA) might be a conduit, legal services are coordinated
through the network.
Representative Gara spoke in support of Amendment 30. He
stressed that the state used to support legal services,
which are for the lowest income people who cannot afford an
attorney. The services are used to get a restraining order
in domestic violence situations. He gave the example of a
client who needed protection. He spoke to the work done by
ALSC, which is underpaid. The program used to be supported
by VISTA. He believed the steady decrease in funding has
been to the public's detriment.
Representative Gara maintained that the people doing free
work, including lawyers, were already overloaded. He argued
that the state funds free attorneys for a person who
commits a crime, and that people who have not committed a
crime also have a right to representation.
Co-Chair Hawker noted that the state support for ALSC in
the FY 11 budget was the same as it was in the FY 10
budget.
5:51:19 PM
Co-Chair Stoltze commented on constituent complaints
related to ALSC and custody cases. He questioned the state
picking a side on such subjective issues.
A roll call vote was taken on the motion to adopt Amendment
30.
IN FAVOR: Salmon, Doogan, Foster, Gara
OPPOSED: Kelly, Thomas, Fairclough, Joule, Stoltze, Hawker
Representative Austerman was absent from the vote.
The MOTION FAILED (6/4). Amendment 30 was not adopted.
5:53:29 PM
Amendment 31
Representative Foster MOVED to ADOPT Amendment 31:
OFFERED BY: Representatives Foster, Doogan
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Fairbanks Campus
ADD: $614.0 General Fund, 1004
ADD: $27.0 University Receipts (DGF), 1048
EXPLANATION: The Marine Advisory Program, a unit in
the School of Fisheries and Ocean Sciences, has been
providing extension and educational services in rural,
coastal Alaska for 45 years. The program
serves as an extension arm of the Alaska Sea Grant
College Program and has university faculty
located in 10 coastal communities. The faculty
provides information, technical assistance and
workforce development opportunities in a variety of
subjects, including the impact of climate
change on local marine resources.
Currently, 30% of MAP's positions (located in
Unalaska, Petersburg, Cordova and Nome) are
funded either by short term grants due to sunset in
2009, are vacant while waiting for funding
(Bristol Bay), or there is no MAP agent at all
(Kodiak). This request is to solidify funding for MAP
faculty in these sites by moving them to regular UAF
funded faculty positions.
Co-Chair Hawker OBJECTED.
Representative Foster explained that Amendment 31 was
related to the Marine Advisory Program (MAP); an addition
of $614,000 in general funds to the University of Alaska
would support six coastal MAP offices in Dillingham,
Unalaska, Kodiak, Nome, Cordova, and Petersburg. The funds
would allow the program to continue to use the statewide
network of agents to work with coastal communities on
issues of critical importance, including the economic
development of fisheries, seafood processing, tourism,
shellfish farming, and other businesses. The intent was to
keep Alaskan communities economically strong. The Marine
Advisory Program would be be enabled to work with youth and
adults of coastal communities to expand educational
opportunities, build workforce capacity, and enhance
participation by local residents in the public process. In
addition, residents would be linked to university, state,
and federal resources, as well as to relevant research that
could help communities address natural resource issues and
local concerns.
Representative Foster referenced previous concerns about
whether the university would use the $614,000 allocation
for MAPs or use it for other priorities. He pointed out
that the university has said it will allocate the funds to
the Marine Advisory Program.
Co-Chair Hawker acknowledged that there had been much
testimony advocating for the program. He maintained that
the legislature was not denying the program because it
lacked value. He stressed that the issue was the university
budget. He provided history about the conversation related
to funding methodology and emphasized that the university
would have to prioritize using the formulaic approach.
Co-Chair Hawker pointed out that the money being discussed
was for only a portion of the program, not the entire
program; MAP itself was not at stake. He stated that there
were 120 vacant positions that were fully funded at the
university; the decision was in their hands.
Co-Chair Stoltze queried the university's commitment to the
program. Representative Foster replied that there had been
some communication.
Co-Chair Hawker took that as a commitment by the university
and believed the program would be taken care of through
other means.
6:00:29 PM
Co-Chair Hawker MAINTAINED his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
31.
IN FAVOR: Salmon, Foster, Gara
OPPOSED: Thomas, Doogan, Fairclough, Joule, Kelly, Stoltze,
Hawker
Representative Austerman was absent from the vote.
The MOTION FAILED (7/3). Amendment 31 was not adopted.
Amendment 32
Co-Chair Hawker informed the committee that Amendment 32,
related to oil and gas issues, would be addressed at a
subsequent meeting.
Amendment 33a
Representative Gara MOVED to ADOPT Amendment 33a:
OFFERED BY: Representatives Gara, Doogan
DEPARTMENT: Commerce, Community & Ec. Development
APPROPRIATION: Community Assistance and Ec. Dev.
ALLOCATION: Office of Economic Development
DELETE: $125,000 General Fund (1004)
EXPLANATION: The governor requested $250,000 increment
to develop policy on business and economic
development. It is not clear why policy development
cannot occur with executive agency staff, and the
policy experts who exist in the department, Governor's
office, and Lt. Governor's office. This amendment
reduces the increment to $125,000.
Co-Chair Hawker OBJECTED.
6:02:05 PM AT EASE
6:08:23 PM RECONVENED
Representative Gara explained that Amendment 33a would fund
one of the two new positions for the Department of
Commerce, Community, and Economic Development to develop
policy.
Co-Chair Stoltze voiced support for the amendment.
Co-Chair Hawker spoke in support of the amendment. He
explained that it offered half the money requested by the
governor in the amendments. He referred to questions
whether the original request had been properly documented.
He supported responsible reductions.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 33a was ADOPTED.
ADJOURNMENT
The meeting was adjourned at 6:13 PM.
| Document Name | Date/Time | Subjects |
|---|