Legislature(1995 - 1996)

03/30/1995 08:50 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         MARCH 30, 1995                                        
                            8:50 A.M.                                          
                                                                               
  TAPE HFC 95 - 72, Side 2, #000 - end.                                        
  TAPE HFC 95 - 73, Side 1, #000 - end.                                        
  TAPE HFC 95 - 73, Side 2, #000 - end.                                        
  TAPE HFC 95 - 74, Side 1, #000 - #544.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House  Finance Committee                 
  meeting to order at 8:50 A.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Kelly                                                         
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Mike   Greany,   Director,  Legislative   Finance  Division;                 
  Representative  Caren  Robinson;   Larry  Jones,   Director,                 
  Division   of   Administrative   Services,   Department   of                 
  Environmental    Conservation;    Michele    Brown,   Deputy                 
  Commissioner,  Department  of   Environmental  Conservation;                 
  Wendy   Redman,   Vice   President,  University   Relations,                 
  University  of  Alaska;  Arthur  Snowden II,  Administrative                 
  Director, Alaska Court System.                                               
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 100    An Act making appropriations for the operating and                 
            loan program  expenses of state government  and to                 
            capitalize funds; making appropriations under art.                 
            IX,  sec.  17(c),  Constitution  of the  State  of                 
            Alaska,  from  the  constitutional budget  reserve                 
            fund; and providing for an effective date.                         
                                                                               
  HB 101    An   Act   making  appropriations   for  operating                 
            expenses for certain programs  for which the costs                 
            are  derived from  mandated formulas  or criteria,                 
            and for expenses for certain  leases and contracts                 
            for state  services and operations;  and providing                 
            for an effective date.                                             
                                                                               
                                                                               
                                1                                              
                                                                               
                                                                               
            HB  100  and HB  101  were HELD  in  Committee for                 
            further consideration.                                             
  HOUSE BILL 100                                                               
                                                                               
       "An Act  making appropriations  for  the operating  and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; making appropriations under art.  IX,                 
       sec. 17(c), Constitution  of the State of  Alaska, from                 
       the constitutional budget  reserve fund; and  providing                 
       for an effective date."                                                 
                                                                               
  HOUSE BILL 101                                                               
                                                                               
       "An  Act making  appropriations for  operating expenses                 
       for certain programs  for which  the costs are  derived                 
       from mandated  formulas or  criteria, and  for expenses                 
       for certain leases and contracts for state services and                 
       operations; and providing for an effective date."                       
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC)                               
                                                                               
  Co-Chair Foster MOVED to amend Amendment #1 by deleting $500                 
  thousand dollars and inserting $450 thousand dollars.  There                 
  being NO OBJECTION, it  was amended.  Co-Chair  Foster MOVED                 
  to adopt Amendment  #1.   There being NO  OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Representative Grussendorf MOVED to adopt Amendment #2.                      
                                                                               
  REPRESENTATIVE CAREN ROBINSON spoke  in support of Amendment                 
  Alaska and the  entire State.   She stated that the  primary                 
  function of the  lab was to  certify all  other labs in  the                 
  State, as well as performing  all the State's forensic work.                 
                                                                               
  MICHELE   BROWN,   DEPUTY   COMMISSIONER,    DEPARTMENT   OF                 
  ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2                 
  explaining that lab did much of the  State's chemistry work.                 
  She  echoed  that  the  strength  of  the  lab  is  forensic                 
  inorganic spill source matching.                                             
                                                                               
  Representative Therriault OBJECTED to adopting Amendment #2.                 
  He thought  that it was  not important that  this capability                 
  remain in  State.   He added that  an audit  of the  lab has                 
  indicated  that  it  is  very   expensive  to  maintain  and                 
  recommended that a  contractual arrangement  be made with  a                 
  lab in  Washington.   Ms.  Brown advised  that the  proposed                 
  reduction would not  close the lab, although  would severely                 
  limit it's functions.                                                        
                                                                               
  A roll call vote was taken on the MOTION to  adopt Amendment                 
                                                                               
                                2                                              
                                                                               
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Therriault,   Kelly,   Kohring,  Martin,                 
                      Mulder, Parnell, Hanley                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Brown   MOVED   to   adopt   Amendment   #3.                 
  Representative  Therriault  OBJECTED.   Representative Brown                 
  explained  that amendment would restore $34 thousand dollars                 
  to the DEC Commissioner's  Office which would then be  RSA'd                 
  over  to  the  Department of  Law  to  pay  for a  paralegal                 
  position for environmental crimes.                                           
                                                                               
  Ms. Brown  added  that the  position  could nearly  pay  for                 
  itself within a  year with fines recovered.   Representative                 
  Therriault pointed out that the position had been vacant for                 
  a while and he felt that the current funding was adequate.                   
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley, Foster.                              
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)                          
                                                                               
  Co-Chair Foster MOVED to amend Amendment  #1 by not deleting                 
  the Agency  BRU  component  of  Environmental  Conservation,                 
  Administration,  Office of  the  Commissioner, reduction  of                 
  personal services by $50 thousand  dollars and thus changing                 
  the addition for Child Assistance, Head Start Grants to $300                 
  thousand dollars to grants.                                                  
                                                                               
  Co-Chair Hanley  asked the total  amount being cut  from the                 
  Head Start budget.  Representative Brown stated that a total                 
  of $5.543 million  dollars would  be cut  through the  House                 
  proposed  budget.   She  requested  that the  additional $50                 
  thousand  dollars be found from another source in order that                 
  a  reduction  from that  component  be avoided.   Discussion                 
  followed among  Committee members  regarding the  reduction.                 
  Representative Brown noted  for the record her  objection to                 
  reducing the level  of effort within  that Division.   There                 
  being NO OBJECTION, it was amended.                                          
                                                                               
  Co-Chair Foster MOVED to adopt amended  Amendment #1.  There                 
                                                                               
                                3                                              
                                                                               
                                                                               
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative Brown MOVED to amend Amendment #2 by deleting                 
  $350  thousand dollars  and  inserting $50  thousand dollars                 
  which would  provide the balance  of the funding  needed for                 
  Head Start grants. Representative Therriault OBJECTED.                       
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Brown, Foster                      
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley                                       
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #3 which would                 
  result in a 5%  instead of 10% reduction in  revenue sharing                 
  and municipal assistance.  Representative Mulder OBJECTED.                   
                                                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Kohring,   Martin,    Mulder,   Navarre,                 
                      Parnell, Therriault, Kelly, Hanley                       
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF CORRECTIONS                                                    
                                                                               
  Representative  Grussendorf  MOVED  to  adopt Amendment  #1.                 
  Representative Mulder OBJECTED.   Representative Grussendorf                 
  commented that the amendment would provide funding for State                 
  contracts  to  local  municipalities  in  order  to  provide                 
  relieve  resulting  from State  obligations.   He emphasized                 
  that  the  amendment  would restore  funding  to contractual                 
  arrangements with communities.                                               
                                                                               
  Representative  Mulder interjected  that  there had  been  a                 
  $4.64   million  dollar   increase   as   proposed  by   the                 
  Subcommittee,   which  would  amount  to  a  twenty  percent                 
  increase  (20%)  partially  to  be  used for  contracts  and                 
  equipment upgrades.                                                          
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Kelly,    Kohring,    Martin,    Mulder,                 
                      Therriault, Parnell, Hanley, Foster                      
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
                                4                                              
                                                                               
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
  Co-Chair Hanley MOVED  to amend Amendment #1  deleting $20.5                 
  thousand dollars and  inserting $20.8 thousand dollars.   He                 
  noted that incorrect  numbers add been originally  typed in.                 
  There being NO OBJECTION, it was amended.                                    
                                                                               
  Co-Chair Hanley MOVED to adopt Amendment #1.  Representative                 
  Navarre  OBJECTED  for  purposes of  discussion.    Co-Chair                 
  Hanley explained that the amendment  would add $1 million to                 
  the  University, leaving  a  $3  million dollar  unallocated                 
  reduction.                                                                   
                                                                               
  WENDY   REDMAN,   VICE   PRESIDENT,  UNIVERSITY   RELATIONS,                 
  UNIVERSITY  OF   ALASKA,   discussed  the   effect  on   the                 
  University.  She explained that the funds needed  to address                 
  fixed  University  costs  next  year  would  be  $7  million                 
  dollars.  An additional $3 million dollar reduction would be                 
  experienced  in  loss  of  part  time  faculty  and  student                 
  employment.                                                                  
                                                                               
  Representative  Brown  commented on  the  loss of  part time                 
  faculty  to  the  Anchorage campus,  noting  that  campus is                 
  overly reliant on part time faculty.                                         
                                                                               
  (Tape Change, HFC 95-73, Side 1).                                            
                                                                               
  Ms. Redman  pointed out  that Alaska  is above  the national                 
  average  tuition rate for  Western states.   Until  now, the                 
  University  budget  has  kept  up  with the  student  growth                 
  through  tuition.    The  Anchorage  campus  has  considered                 
  additional higher fees for special programs.  Representative                 
  Brown asked how many part time faculty  would be lost on the                 
  Anchorage campus.   Ms. Redman  responded that the  greatest                 
  impact would be to that faculty hired when over registration                 
  occurs in  the fall.  She  emphasized that there  will be no                 
  flexible money available to the University.                                  
                                                                               
  Representative Parnell questioned where  the University will                 
  turn over the long range as the budget continues to  be cut.                 
  Ms.  Redman  stated  that  the  program  assessment  process                 
  established criteria  for a  three year  assessment and  has                 
  initiated the process of determining which programs would be                 
  phased out.   Administrative  structures are  being combined                 
  and there is an agreement that faculty vacancies will not be                 
  filled nor new standards established.  Ms. Redman added that                 
  quick reductions have a undermining effect on the University                 
  process.                                                                     
                                                                               
  Representative Navarre recommended  that teachers spend more                 
  time in the  classrooms.  Ms.  Redman concurred noting  that                 
                                                                               
                                5                                              
                                                                               
                                                                               
  from  the results  of the  assessment, all  faculty  will be                 
  moving to nine  month contracts.   The University  President                 
  has mandated that beginning September, 1995, there will be a                 
  20% increase in  faculty productivity.   Any faculty  member                 
  who receives general fund money  must teach.  Representative                 
  Navarre compared the  amount of time that  the K-12 teachers                 
  spend in the classroom.  Ms. Redman countered Representative                 
  Navarre's  argument noting  that  the  situation  was  quite                 
  different.                                                                   
                                                                               
  Representative Mulder  asked the  University's intention  in                 
  closing facilities  around the  State.   Ms. Redman  replied                 
  that the University does not have plans to close  any of the                 
  extended sites.  She  noted that most of the  extended sites                 
  are  not  expensive to  run  in  comparison to  the  student                 
  tuition generated at those spots, emphasizing that the rural                 
  campuses provide educational delivery to rural Alaska.                       
                                                                               
  Representative Mulder countered that the cost of delivery is                 
  expensive, suggesting  that  sites  be  consolidated.    Ms.                 
  Redman  stressed  that  the  curriculum  is limited  at  the                 
  extended  sites.    No  opportunities  are  being  expanded,                 
  although core requirements  are being offered in  order that                 
  students who want to get into a university will qualify.                     
                                                                               
  There being NO OBJECTION to Amendment #1, it was adopted.                    
                                                                               
  Co-Chair Hanley  MOVED to  adopt the  Intent Language.   The                 
  language  would  establish  the  it be  the  intent  of  the                 
  Legislature that the Board of Regents close the WAMI program                 
  to all new entrants, which will  result in a $160.3 thousand                 
  dollar savings.                                                              
                                                                               
  Ms. Redman noted that new students had already been admitted                 
  in January for Fall, 1995.  The University is thus committed                 
  for  the next cycle.  Representative Mulder asked the number                 
  of students  who return  to the  state having completed  the                 
  program.  He noted that the debt load of the average student                 
  having completed the program with  WAMI assistance is $50  -                 
  $70 thousand dollars.                                                        
                                                                               
  Co-Chair Hanley asked the number  of students in Alaska that                 
  go  to  medical school.   Ms.  Redman  advised there  are 40                 
  students total  in the program,  although did  not know  the                 
  total number  of Alaskan  students in medical  school.   She                 
  added   that   other   states   are  currently   eliminating                 
  opportunities  for  out-of-state  students  and  that  these                 
  programs  buy  opportunities  for  Alaskan  students.    The                 
  University  of  Alaska  can  not  offer these  programs  and                 
  opportunities in Alaska.                                                     
                                                                               
  Representative Kohring asked how  many students who complete                 
                                                                               
                                6                                              
                                                                               
                                                                               
  the program come  back to  Alaska.  Ms.  Redman stated  that                 
  half of  the students  return to  the State,  although since                 
  Alaska  does not have  a residency  program in  State, these                 
  students are at a disadvantage.  Many doctors continue their                 
  practice  where they  do  their  residency.   Representative                 
  Mulder OBJECTED to the Intent Language.                                      
                                                                               
  A roll call vote was taken on the MOTION to adopt the Intent                 
  Language.                                                                    
                                                                               
       IN FAVOR:      Kohring,  Navarre, Parnell,  Therriault,                 
                      Grussendorf, Hanley                                      
       OPPOSED:       Mulder, Brown, Foster                                    
                                                                               
  Representatives Martin and  Kelly were  not present for  the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  LEGISLATURE                                                                  
                                                                               
  Representative  Navarre MOVED  to adopt  Amendment  #1 which                 
  would   reduce   legislative   salaries    and   allowances.                 
  Representative Mulder OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Martin,  Mulder,   Parnell,  Therriault,                 
                      Kelly, Kohring, Hanley                                   
                                                                               
  Co-Chair Foster was not present for the vote.                                
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative   Navarre  MOVED   to  adopt   Amendment  #2.                 
  Representative Mulder OBJECTED.   Representative Brown noted                 
  that the amendment would restore the Legal Services grant to                 
  the Governor's amended  request.   The addition would  allow                 
  the Kotzebue and Nome offices to remain open.                                
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Martin, Hanley                                  
                                                                               
  Co-Chair Foster was not present for the vote.                                
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #3.                 
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative  Mulder  OBJECTED.    Representative  Navarre                 
  explained that  Amendment #3  would restore  funding to  the                 
  FY96 Governor's amended level.  He added  that $500 thousand                 
  dollars  would  replace  lost federal  funds  and  assist in                 
  welfare  reform efforts  by increasing  the opportunity  for                 
  Alaska  Families with  Dependent Children (AFDC)  clients to                 
  receive the training and skills needed to get jobs.                          
                                                                               
  (Tape Change, HFC 95-73, Side 2).                                            
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Parnell,  Therriault,   Kelly,  Kohring,                 
                      Martin, Mulder, Hanley, Foster                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #4.                 
  Representative  Therriault  OBJECTED.   Representative Brown                 
  explained that $445  thousand dollars  would allow the  Arts                 
  Council the means to collect the federal dollars.                            
                                                                               
  Representative   Kohring  voiced   his   concern  with   the                 
  philosophy  and  the types  of arts  funded by  the National                 
  Endowment for the Arts (NEA).                                                
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
       OPPOSED:       Parnell,  Therriault,  Kelly,   Kohring,                 
                      Martin, Mulder, Foster, Hanley                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Kelly  advised that the Arts Council informed                 
  him  that   with  the   current  level   of  funding,   that                 
  organization   could  potentially   be  zeroed   out.     He                 
  recommended taking the allocated money from the Arts Council                 
  and   placing   it   into   the   Head   Start   allocation.                 
  Representative  Kelly offered that language as an conceptual                 
  amendment.                                                                   
                                                                               
  The House Finance Committee convened for one hour.                           
                                                                               
  DEPARTMENT OF EDUCATION (DOE)                                                
                                                                               
  Representative Kelly MOVED to adopt Amendment #8 which would                 
  move $50  thousand dollars from the Alaska  State Council on                 
  the  Arts to  the Head  Start grants.   Representative Brown                 
  OBJECTED.   She stressed the  importance of an  art's effort                 
  being  maintained in  Alaska.   Representative Martin  noted                 
                                                                               
                                8                                              
                                                                               
                                                                               
  that the arts should be funded through private dollars.                      
                                                                               
  Representative   Brown  MOVED   to   divide  the   question.                 
  Representative Mulder OBJECTED.                                              
                                                                               
  A  roll call  vote was  taken on  the MOTION  to divide  the                 
  question.                                                                    
                                                                               
       IN FAVOR:      Therriault, Brown, Grussendorf, Navarre                  
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Hanley, Foster                                           
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Kohring noted  that he does support  the arts                 
  although thought that the private  sector should provide the                 
  funding.  He  noted that the  issue was one of  establishing                 
  priority State economics.                                                    
                                                                               
  Representative Brown MOVED to strike  the funding source for                 
  the arts  and insert  the Alaska  Tourism Marketing  Council                 
  (ATMC).  Representative Mulder OBJECTED.                                     
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley, Foster                               
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative Navarre  MOVED to strike  the funding  source                 
  for  the  arts  changing  it  to the  legislative  operating                 
  budget,  salaries  and  allowances.   Representative  Mulder                 
  OBJECTED.                                                                    
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Therriault, Brown                  
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Foster, Hanley                                           
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Kelly, Kohring, Martin,  Mulder, Hanley,                 
                      Foster                                                   
       OPPOSED:       Navarre,  Parnell,   Therriault,  Brown,                 
                      Grussendorf                                              
                                                                               
                                                                               
                                9                                              
                                                                               
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)                          
                                                                               
  Representative Brown MOVED to adopt  Amendment #3.  Co-Chair                 
  Hanley  OBJECTED.    Representative  Brown  noted  that  the                 
  amendment would result in  a 5% rather than a  10% reduction                 
  in revenue sharing and municipal assistance.                                 
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Kohring,   Martin,   Mulder,    Navarre,                 
                      Parnell, Therriault, Kelly, Hanley                       
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)                              
                                                                               
  Representative  Brown   noted  that   the  Intent   Language                 
  specifically  addressed  the  Fairbanks  Native  Association                 
  specifying  that the  grant money not  be spent  on lobbying                 
  activities.                                                                  
                                                                               
  Representative Parnell MOVED an amendment to the  amendment,                 
  deleting "Fairbanks  Native Association" and  inserting "all                 
  departments".  He stated that would clarify that no lobbying                 
  activity  for  any  group  could  occur  with  State  funds.                 
  Representative Brown disagreed.  She  stated that her intent                 
  was to address a specific problem.                                           
                                                                               
  Following Committee discussion,  Representative Brown  MOVED                 
  to amend  the proposal  by adding  the language  proposed by                 
  Representative Parnell  as  an  addition  to  the  amendment                 
  rather than a deletion.                                                      
                                                                               
  A roll  call vote  was  taken on  the  MOTION to  amend  the                 
  amendment.                                                                   
                                                                               
       IN FAVOR:      Martin, Navarre, Brown, Grussendorf                      
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Hanley, Foster                                  
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Discussion followed between Committee  members regarding the                 
  effect on other organizations and  public dollars.  Co-Chair                 
  Hanley noted that statute already prohibits the use of grant                 
  monies to be  used for lobbying activities.   Representative                 
  Brown  MOVED to  WITHDRAW  the amendment.    There being  NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  (Tape Change, HFC 95-74, Side 1).                                            
                                                                               
  DEPARTMENT OF NATURAL RESOURCES (DNR)                                        
                                                                               
  Representative Therriault MOVED to adopt Amendment #12 which                 
  would  provide  contract   funds  for  specific  contractual                 
  projects.    Co-Chair  Hanley  understood  that  unless  the                 
  allocation  is  granted,  the  State  will not  continue  to                 
  receive   revenue   generated   from   specified   projects.                 
  Representative Brown supported the amendment indicating that                 
  such  language would  provide a  typical scope  of what  the                 
  Department does.   There being  NO OBJECTION, Amendment  #12                 
  was adopted.                                                                 
                                                                               
  Representative   Brown  MOVED   to  adopt   Intent  Language                 
  specifying  Legislature's  intent that  no  new agricultural                 
  land  disposal be initiated in FY  96.  Representative Brown                 
  pointed out that  the current  default rate on  agricultural                 
  land disposal averages  65.4%.  She  stressed that this  was                 
  not a viable program.                                                        
                                                                               
  Representative  Navarre  voiced  his  frustration  with  the                 
  disposal plan.  He  commented that establishing a home  site                 
  or homestead program would make  better sense and would have                 
  less default possibilities.                                                  
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Navarre, Hanley                                   
       OPPOSED:       Parnell, Therriault, Grussendorf, Kelly,                 
                      Kohring, Martin, Mulder, Foster                          
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF REVENUE (DOR)                                                  
                                                                               
  Co-Chair Hanley  MOVED to  adopt Amendment  #7.  He  advised                 
  that  the  amendment  would  restore  the Office  of  Public                 
  Advocacy and the Public Defender Agency to  the FY95 funding                 
  level.  There being NO OBJECTION, it was adopted.                            
                                                                               
  ALASKA COURT SYSTEM                                                          
                                                                               
  Representative  Navarre  MOVED to  adopt  Amendment #1.   He                 
  explained that the amendment would  consist of two portions.                 
  The first section would add funds for the trial costs of the                 
  Arctic North Slope  (ANS) Royalty Case.   The second portion                 
  of  the  amendment would  add  additional funding  for anger                 
  management.                                                                  
                                                                               
  ARTHUR  SNOWDEN II,  ADMINISTRATIVE  DIRECTOR, ALASKA  COURT                 
  SYSTEM, testified in support  of Amendment #1.   He admitted                 
                                                                               
                               11                                              
                                                                               
                                                                               
  that he did not know how long  the ANS trial would continue.                 
  He remarked that  the second portion of  the amendment would                 
  address  anger management,  noting  that  both portions  are                 
  court mandated.  Mr. Snowden asked if the Court System could                 
  return to  the Legislature and request  supplemental funding                 
  if the case went over the anticipated time frame.                            
                                                                               
  Representative  Parnell  MOVED  to divide  the  question and                 
  requested that the  Court System be responsible for  the $52                 
  thousand dollars request  for the ANS  case; he agreed  that                 
  they  should  return  for  supplemental  funding  next year.                 
  Representative Mulder OBJECTED to dividing the question.                     
                                                                               
  Following discussion among Committee members, Representative                 
  Navarre  MOVED TO  WITHDRAW Amendment  #1.   There being  NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  HB  100  and  HB 101  were  HELD  in  Committee for  further                 
  consideration.  #                                                            
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 12:05 P.M.                                          
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         MARCH 30, 1995                                        
                            8:50 A.M.                                          
                                                                               
  TAPE HFC 95 - 72, Side 2, #000 - end.                                        
  TAPE HFC 95 - 73, Side 1, #000 - end.                                        
  TAPE HFC 95 - 73, Side 2, #000 - end.                                        
  TAPE HFC 95 - 74, Side 1, #000 - #544.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley  called the  House  Finance Committee                 
  meeting to order at 8:50 A.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Kelly                                                         
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Mike   Greany,   Director,  Legislative   Finance  Division;                 
  Representative  Caren  Robinson;   Larry  Jones,   Director,                 
  Division   of   Administrative   Services,   Department   of                 
                                                                               
                               12                                              
                                                                               
                                                                               
  Environmental    Conservation;    Michele    Brown,   Deputy                 
  Commissioner,  Department  of   Environmental  Conservation;                 
  Wendy   Redman,   Vice   President,  University   Relations,                 
  University  of  Alaska;  Arthur  Snowden II,  Administrative                 
  Director, Alaska Court System.                                               
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 100    An Act making appropriations for the operating and                 
            loan program  expenses of state government  and to                 
            capitalize funds; making appropriations under art.                 
            IX,  sec.  17(c),  Constitution of  the  State  of                 
            Alaska,  from  the  constitutional budget  reserve                 
            fund; and providing for an effective date.                         
                                                                               
  HB 101    An   Act   making  appropriations   for  operating                 
            expenses for certain programs  for which the costs                 
            are  derived from  mandated formulas  or criteria,                 
            and for expenses for  certain leases and contracts                 
            for state  services and operations;  and providing                 
            for an effective date.                                             
                                                                               
            HB  100 and  HB  101 were  HELD  in Committee  for                 
            further consideration.                                             
                                                                               
  HOUSE BILL 100                                                               
                                                                               
       "An  Act  making appropriations  for the  operating and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; making  appropriations under art. IX,                 
       sec. 17(c), Constitution  of the State of  Alaska, from                 
       the constitutional  budget reserve fund;  and providing                 
       for an effective date."                                                 
                                                                               
  HOUSE BILL 101                                                               
                                                                               
       "An Act  making appropriations  for operating  expenses                 
       for certain programs  for which  the costs are  derived                 
       from mandated  formulas or criteria,  and for  expenses                 
       for certain leases and contracts for state services and                 
       operations; and providing for an effective date."                       
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC)                               
                                                                               
  Co-Chair Foster MOVED to amend Amendment #1 by deleting $500                 
  thousand dollars and inserting $450 thousand dollars.  There                 
  being NO OBJECTION,  it was amended.   Co-Chair Foster MOVED                 
  to adopt Amendment  #1.   There being NO  OBJECTION, it  was                 
  adopted.                                                                     
                                                                               
  Representative Grussendorf MOVED to adopt Amendment #2.                      
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
  REPRESENTATIVE CAREN  ROBINSON spoke in support of Amendment                 
  Alaska and the  entire State.   She stated that the  primary                 
  function  of the  lab was to  certify all other  labs in the                 
  State, as well as performing  all the State's forensic work.                 
                                                                               
  MICHELE   BROWN,   DEPUTY   COMMISSIONER,    DEPARTMENT   OF                 
  ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2                 
  explaining  that lab did much of the State's chemistry work.                 
  She  echoed  that  the  strength  of  the  lab  is  forensic                 
  inorganic spill source matching.                                             
                                                                               
  Representative Therriault OBJECTED to adopting Amendment #2.                 
  He thought  that it was  not important that  this capability                 
  remain in  State.   He added that  an audit  of the  lab has                 
  indicated  that  it  is  very   expensive  to  maintain  and                 
  recommended that a  contractual arrangement  be made with  a                 
  lab  in Washington.   Ms.  Brown  advised that  the proposed                 
  reduction would not  close the lab, although  would severely                 
  limit it's functions.                                                        
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Therriault,   Kelly,  Kohring,   Martin,                 
                      Mulder, Parnell, Hanley                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative   Brown   MOVED   to  adopt   Amendment   #3.                 
  Representative  Therriault  OBJECTED.   Representative Brown                 
  explained that amendment would restore  $34 thousand dollars                 
  to the DEC  Commissioner's Office which would then  be RSA'd                 
  over  to  the  Department of  Law  to  pay  for a  paralegal                 
  position for environmental crimes.                                           
                                                                               
  Ms.  Brown  added that  the  position could  nearly  pay for                 
  itself within a  year with fines recovered.   Representative                 
  Therriault pointed out that the position had been vacant for                 
  a while and he felt that the current funding was adequate.                   
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley, Foster.                              
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
                               14                                              
                                                                               
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)                          
                                                                               
  Co-Chair Foster MOVED to amend Amendment #1 by not  deleting                 
  the Agency  BRU  component  of  Environmental  Conservation,                 
  Administration,  Office of  the  Commissioner, reduction  of                 
  personal services by $50 thousand  dollars and thus changing                 
  the addition for Child Assistance, Head Start Grants to $300                 
  thousand dollars to grants.                                                  
                                                                               
  Co-Chair Hanley  asked the total  amount being cut  from the                 
  Head Start budget.  Representative Brown stated that a total                 
  of  $5.543 million  dollars would be  cut through  the House                 
  proposed  budget.   She  requested  that the  additional $50                 
  thousand dollars be found from  another source in order that                 
  a  reduction  from that  component  be avoided.   Discussion                 
  followed among  Committee members  regarding the  reduction.                 
  Representative Brown noted  for the record her  objection to                 
  reducing the level  of effort within  that Division.   There                 
  being NO OBJECTION, it was amended.                                          
                                                                               
  Co-Chair Foster MOVED to adopt amended Amendment #1.   There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative Brown MOVED to amend Amendment #2 by deleting                 
  $350  thousand dollars  and inserting  $50 thousand  dollars                 
  which  would provide the  balance of the  funding needed for                 
  Head Start grants. Representative Therriault OBJECTED.                       
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Brown, Foster                      
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley                                       
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #3 which would                 
  result in a 5%  instead of 10% reduction in  revenue sharing                 
  and municipal assistance.   Representative Mulder OBJECTED.                  
                                                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Kohring,   Martin,   Mulder,    Navarre,                 
                      Parnell, Therriault, Kelly, Hanley                       
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF CORRECTIONS                                                    
                                                                               
                                                                               
                               15                                              
                                                                               
                                                                               
  Representative  Grussendorf  MOVED  to  adopt Amendment  #1.                 
  Representative Mulder OBJECTED.   Representative Grussendorf                 
  commented that the amendment would provide funding for State                 
  contracts  to  local  municipalities  in  order  to  provide                 
  relieve  resulting from  State obligations.   He  emphasized                 
  that  the  amendment would  restore  funding to  contractual                 
  arrangements with communities.                                               
                                                                               
  Representative Mulder  interjected  that there  had  been  a                 
  $4.64   million  dollar   increase   as   proposed  by   the                 
  Subcommittee,  which  would  amount  to  a  twenty   percent                 
  increase  (20%)  partially  to  be  used for  contracts  and                 
  equipment upgrades.                                                          
                                                                               
  A roll  call vote was taken on the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Kelly,    Kohring,    Martin,    Mulder,                 
                      Therriault, Parnell, Hanley, Foster                      
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
  Co-Chair Hanley MOVED  to amend Amendment #1  deleting $20.5                 
  thousand dollars and  inserting $20.8 thousand dollars.   He                 
  noted that incorrect  numbers add been originally  typed in.                 
  There being NO OBJECTION, it was amended.                                    
                                                                               
  Co-Chair Hanley MOVED to adopt Amendment #1.  Representative                 
  Navarre  OBJECTED  for  purposes  of  discussion.   Co-Chair                 
  Hanley explained that the amendment  would add $1 million to                 
  the  University,  leaving a  $3  million dollar  unallocated                 
  reduction.                                                                   
                                                                               
  WENDY   REDMAN,   VICE   PRESIDENT,  UNIVERSITY   RELATIONS,                 
  UNIVERSITY   OF  ALASKA,   discussed  the   effect  on   the                 
  University.  She explained that the funds  needed to address                 
  fixed  University  costs  next  year  would  be  $7  million                 
  dollars.  An additional $3 million dollar reduction would be                 
  experienced  in  loss  of  part  time  faculty  and  student                 
  employment.                                                                  
                                                                               
  Representative  Brown  commented on  the  loss of  part time                 
  faculty  to  the  Anchorage campus,  noting  that  campus is                 
  overly reliant on part time faculty.                                         
                                                                               
  (Tape Change, HFC 95-73, Side 1).                                            
                                                                               
  Ms. Redman  pointed out  that Alaska  is above  the national                 
  average tuition rate  for Western  states.   Until now,  the                 
                                                                               
                               16                                              
                                                                               
                                                                               
  University  budget  has  kept  up  with the  student  growth                 
  through  tuition.    The  Anchorage  campus  has  considered                 
  additional higher fees for special programs.  Representative                 
  Brown asked  how many part time faculty would be lost on the                 
  Anchorage campus.   Ms. Redman  responded that the  greatest                 
  impact would be to that faculty hired when over registration                 
  occurs  in the fall.   She emphasized that  there will be no                 
  flexible money available to the University.                                  
                                                                               
  Representative Parnell questioned where  the University will                 
  turn over the long range as  the budget continues to be cut.                 
  Ms.  Redman  stated  that  the  program  assessment  process                 
  established criteria  for a  three year  assessment and  has                 
  initiated the process of determining which programs would be                 
  phased out.   Administrative  structures are being  combined                 
  and there is an agreement that faculty vacancies will not be                 
  filled nor new standards established.  Ms. Redman added that                 
  quick reductions have a undermining effect on the University                 
  process.                                                                     
                                                                               
  Representative Navarre recommended  that teachers spend more                 
  time in the  classrooms.  Ms.  Redman concurred noting  that                 
  from the  results of  the assessment,  all  faculty will  be                 
  moving to nine  month contracts.   The University  President                 
  has mandated that beginning September, 1995, there will be a                 
  20% increase in  faculty productivity.   Any faculty  member                 
  who receives general fund money  must teach.  Representative                 
  Navarre  compared the amount of  time that the K-12 teachers                 
  spend in the classroom.  Ms. Redman countered Representative                 
  Navarre's  argument  noting  that  the  situation was  quite                 
  different.                                                                   
                                                                               
  Representative  Mulder asked  the University's  intention in                 
  closing facilities  around the  State.   Ms. Redman  replied                 
  that the University does not have plans to close  any of the                 
  extended sites.  She  noted that most of the  extended sites                 
  are not  expensive  to  run in  comparison  to  the  student                 
  tuition generated at those spots, emphasizing that the rural                 
  campuses provide educational delivery to rural Alaska.                       
                                                                               
  Representative Mulder countered that the cost of delivery is                 
  expensive,  suggesting  that  sites  be consolidated.    Ms.                 
  Redman  stressed  that  the  curriculum  is limited  at  the                 
  extended  sites.    No  opportunities  are  being  expanded,                 
  although core requirements  are being offered in  order that                 
  students who want to get into a university will qualify.                     
                                                                               
  There being NO OBJECTION to Amendment #1, it was adopted.                    
                                                                               
  Co-Chair  Hanley MOVED  to adopt  the Intent Language.   The                 
  language  would  establish  the  it be  the  intent  of  the                 
  Legislature that the Board of Regents close the WAMI program                 
                                                                               
                               17                                              
                                                                               
                                                                               
  to all new entrants, which will  result in a $160.3 thousand                 
  dollar savings.                                                              
                                                                               
  Ms. Redman noted that new students had already been admitted                 
  in January for Fall, 1995.  The University is thus committed                 
  for the next cycle.   Representative Mulder asked the number                 
  of students who  return to  the state  having completed  the                 
  program.  He noted that the debt load of the average student                 
  having completed the  program with WAMI assistance is  $50 -                 
  $70 thousand dollars.                                                        
                                                                               
  Co-Chair Hanley asked the number of students  in Alaska that                 
  go  to  medical school.   Ms.  Redman  advised there  are 40                 
  students  total in  the program,  although did not  know the                 
  total number  of Alaskan  students in  medical school.   She                 
  added   that   other   states   are  currently   eliminating                 
  opportunities  for  out-of-state  students  and  that  these                 
  programs  buy  opportunities  for  Alaskan  students.    The                 
  University  of  Alaska  can  not  offer these  programs  and                 
  opportunities in Alaska.                                                     
                                                                               
  Representative Kohring  asked how many students who complete                 
  the program come  back to  Alaska.  Ms.  Redman stated  that                 
  half of  the students  return to  the State,  although since                 
  Alaska does not  have a  residency program  in State,  these                 
  students are at a disadvantage.  Many doctors continue their                 
  practice  where  they do  their  residency.   Representative                 
  Mulder OBJECTED to the Intent Language.                                      
                                                                               
  A roll call vote was taken on the MOTION to adopt the Intent                 
  Language.                                                                    
                                                                               
       IN FAVOR:      Kohring,  Navarre, Parnell,  Therriault,                 
                      Grussendorf, Hanley                                      
       OPPOSED:       Mulder, Brown, Foster                                    
                                                                               
  Representatives Martin and  Kelly were  not present for  the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  LEGISLATURE                                                                  
                                                                               
  Representative Navarre  MOVED  to adopt  Amendment #1  which                 
  would   reduce   legislative   salaries    and   allowances.                 
  Representative Mulder OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Martin,  Mulder,   Parnell,  Therriault,                 
                      Kelly, Kohring, Hanley                                   
                                                                               
                               18                                              
                                                                               
                                                                               
  Co-Chair Foster was not present for the vote.                                
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative   Navarre  MOVED   to  adopt   Amendment  #2.                 
  Representative Mulder OBJECTED.   Representative Brown noted                 
  that the amendment would restore the Legal Services grant to                 
  the Governor's amended  request.   The addition would  allow                 
  the Kotzebue and Nome offices to remain open.                                
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Martin, Hanley                                  
                                                                               
  Co-Chair Foster was not present for the vote.                                
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #3.                 
  Representative  Mulder  OBJECTED.    Representative  Navarre                 
  explained that  Amendment #3  would restore  funding to  the                 
  FY96 Governor's amended level.  He  added that $500 thousand                 
  dollars  would  replace  lost federal  funds  and  assist in                 
  welfare reform  efforts by  increasing  the opportunity  for                 
  Alaska Families with  Dependent Children  (AFDC) clients  to                 
  receive the training and skills needed to get jobs.                          
                                                                               
  (Tape Change, HFC 95-73, Side 2).                                            
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Parnell,  Therriault,   Kelly,  Kohring,                 
                      Martin, Mulder, Hanley, Foster                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #4.                 
  Representative  Therriault  OBJECTED.   Representative Brown                 
  explained that $445  thousand dollars  would allow the  Arts                 
  Council the means to collect the federal dollars.                            
                                                                               
  Representative   Kohring   voiced  his   concern   with  the                 
  philosophy  and the  types of  arts funded  by the  National                 
  Endowment for the Arts (NEA).                                                
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
                                                                               
                               19                                              
                                                                               
                                                                               
       OPPOSED:       Parnell,  Therriault,  Kelly,   Kohring,                 
                      Martin, Mulder, Foster, Hanley                           
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  Representative  Kelly advised that the Arts Council informed                 
  him  that   with  the   current  level   of  funding,   that                 
  organization   could  potentially   be  zeroed   out.     He                 
  recommended taking the allocated money from the Arts Council                 
  and   placing   it   into   the   Head   Start   allocation.                 
  Representative Kelly offered that language as an  conceptual                 
  amendment.                                                                   
                                                                               
  The House Finance Committee convened for one hour.                           
                                                                               
  DEPARTMENT OF EDUCATION (DOE)                                                
                                                                               
  Representative Kelly MOVED to adopt Amendment #8 which would                 
  move  $50 thousand dollars from  the Alaska State Council on                 
  the Arts  to the  Head Start  grants.   Representative Brown                 
  OBJECTED.   She stressed  the importance of  an art's effort                 
  being  maintained in  Alaska.   Representative  Martin noted                 
  that the arts should be funded through private dollars.                      
                                                                               
  Representative   Brown   MOVED  to   divide   the  question.                 
  Representative Mulder OBJECTED.                                              
                                                                               
  A  roll call  vote was  taken on  the MOTION  to divide  the                 
  question.                                                                    
                                                                               
       IN FAVOR:      Therriault, Brown, Grussendorf, Navarre                  
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Hanley, Foster                                           
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Kohring noted  that he does support  the arts                 
  although thought that the private  sector should provide the                 
  funding.  He  noted that the  issue was one of  establishing                 
  priority State economics.                                                    
                                                                               
  Representative Brown MOVED to strike  the funding source for                 
  the arts  and insert  the Alaska  Tourism Marketing  Council                 
  (ATMC).  Representative Mulder OBJECTED.                                     
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Navarre                              
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Therriault, Hanley, Foster                               
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
                               20                                              
                                                                               
                                                                               
  Representative  Navarre MOVED to  strike the  funding source                 
  for  the  arts  changing  it  to the  legislative  operating                 
  budget,  salaries  and  allowances.   Representative  Mulder                 
  OBJECTED.                                                                    
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Grussendorf, Navarre, Therriault, Brown                  
       OPPOSED:       Kelly, Kohring, Martin, Mulder, Parnell,                 
                      Foster, Hanley                                           
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  A roll  call vote was taken on the MOTION to adopt Amendment                 
                                                                               
       IN FAVOR:      Kelly, Kohring, Martin,  Mulder, Hanley,                 
                      Foster                                                   
       OPPOSED:       Navarre,  Parnell,   Therriault,  Brown,                 
                      Grussendorf                                              
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA)                          
                                                                               
  Representative Brown MOVED to adopt  Amendment #3.  Co-Chair                 
  Hanley  OBJECTED.    Representative  Brown  noted  that  the                 
  amendment would result in  a 5% rather than a  10% reduction                 
  in revenue sharing and municipal assistance.                                 
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Grussendorf, Foster                               
       OPPOSED:       Kohring,   Martin,    Mulder,   Navarre,                 
                      Parnell, Therriault, Kelly, Hanley                       
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)                              
                                                                               
  Representative   Brown  noted   that  the   Intent  Language                 
  specifically  addressed  the  Fairbanks  Native  Association                 
  specifying that  the grant money  not be  spent on  lobbying                 
  activities.                                                                  
                                                                               
  Representative Parnell MOVED an  amendment to the amendment,                 
  deleting "Fairbanks  Native Association" and  inserting "all                 
  departments".  He stated that would clarify that no lobbying                 
  activity  for  any  group  could  occur  with  State  funds.                 
  Representative Brown disagreed.  She  stated that her intent                 
  was to address a specific problem.                                           
                                                                               
                               21                                              
                                                                               
                                                                               
  Following Committee discussion,  Representative Brown  MOVED                 
  to  amend the proposal  by adding  the language  proposed by                 
  Representative  Parnell  as  an  addition  to  the amendment                 
  rather than a deletion.                                                      
                                                                               
  A roll  call  vote was  taken  on the  MOTION to  amend  the                 
  amendment.                                                                   
                                                                               
       IN FAVOR:      Martin, Navarre, Brown, Grussendorf                      
       OPPOSED:       Mulder,   Parnell,  Therriault,   Kelly,                 
                      Kohring, Hanley, Foster                                  
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Discussion followed between Committee  members regarding the                 
  effect on other organizations and  public dollars.  Co-Chair                 
  Hanley noted that statute already prohibits the use of grant                 
  monies to be  used for lobbying activities.   Representative                 
  Brown  MOVED to  WITHDRAW  the amendment.    There being  NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  (Tape Change, HFC 95-74, Side 1).                                            
                                                                               
  DEPARTMENT OF NATURAL RESOURCES (DNR)                                        
                                                                               
  Representative Therriault MOVED to adopt Amendment #12 which                 
  would  provide  contract  funds   for  specific  contractual                 
  projects.    Co-Chair  Hanley  understood  that  unless  the                 
  allocation  is  granted,  the  State  will not  continue  to                 
  receive   revenue   generated   from   specified   projects.                 
  Representative Brown supported the amendment indicating that                 
  such  language would  provide a  typical scope  of what  the                 
  Department does.   There being  NO OBJECTION, Amendment  #12                 
  was adopted.                                                                 
                                                                               
  Representative  Brown   MOVED  to   adopt  Intent   Language                 
  specifying  Legislature's intent  that  no new  agricultural                 
  land disposal be initiated in  FY 96.  Representative  Brown                 
  pointed out that  the current  default rate on  agricultural                 
  land disposal  averages 65.4%.   She stressed that  this was                 
  not a viable program.                                                        
                                                                               
  Representative  Navarre  voiced  his  frustration  with  the                 
  disposal plan.   He commented that establishing a  home site                 
  or homestead program  would make better sense and would have                 
  less default possibilities.                                                  
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Brown, Navarre, Hanley                                   
       OPPOSED:       Parnell, Therriault, Grussendorf, Kelly,                 
                                                                               
                               22                                              
                                                                               
                                                                               
                      Kohring, Martin, Mulder, Foster                          
                                                                               
  The MOTION FAILED (3-8).                                                     
                                                                               
  DEPARTMENT OF REVENUE (DOR)                                                  
                                                                               
  Co-Chair Hanley MOVED  to adopt  Amendment #7.   He  advised                 
  that  the  amendment  would  restore  the Office  of  Public                 
  Advocacy  and the Public Defender Agency to the FY95 funding                 
  level.  There being NO OBJECTION, it was adopted.                            
                                                                               
  ALASKA COURT SYSTEM                                                          
                                                                               
  Representative  Navarre  MOVED to  adopt  Amendment #1.   He                 
  explained that the amendment would  consist of two portions.                 
  The first section would add funds for the trial costs of the                 
  Arctic  North Slope (ANS) Royalty Case.   The second portion                 
  of  the  amendment would  add  additional funding  for anger                 
  management.                                                                  
                                                                               
  ARTHUR  SNOWDEN II,  ADMINISTRATIVE  DIRECTOR, ALASKA  COURT                 
  SYSTEM, testified  in support of Amendment #1.   He admitted                 
  that he did not know how long  the ANS trial would continue.                 
  He remarked that  the second portion of  the amendment would                 
  address  anger management,  noting  that both  portions  are                 
  court mandated.  Mr. Snowden asked if the Court System could                 
  return to the  Legislature and request  supplemental funding                 
  if the case went over the anticipated time frame.                            
                                                                               
  Representative Parnell  MOVED  to divide  the  question  and                 
  requested that  the Court System be responsible  for the $52                 
  thousand dollars  request for the  ANS case; he  agreed that                 
  they  should  return  for supplemental  funding  next  year.                 
  Representative Mulder OBJECTED to dividing the question.                     
                                                                               
  Following discussion among Committee members, Representative                 
  Navarre  MOVED TO  WITHDRAW Amendment  #1.   There  being NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  HB  100  and  HB 101  were  HELD  in  Committee for  further                 
  consideration.                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 12:05 P.M.                                          
                                                                               
                                                                               
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