Legislature(2001 - 2002)

04/24/2001 02:24 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 24, 2001                                                                                           
                         2:24 P.M.                                                                                              
                                                                                                                                
 TAPE HFC 01 - 93, Side A                                                                                                       
 TAPE HFC 01 - 93, Side B                                                                                                       
 TAPE HFC 01 - 94, Side A                                                                                                       
 TAPE HFC 01 - 94, Side B                                                                                                       
                                                                                                                                
 CALL TO ORDER                                                                                                                
                                                                                                                                
 Co-Chair Williams called the House Finance Committee  meeting                                                                  
 to order at 2:24 P.M.                                                                                                          
                                                                                                                                
 MEMBERS PRESENT                                                                                                              
                                                                                                                                
 Representative Bill Williams, Co-Chair                                                                                         
 Representative Eldon Mulder, Co-Chair                                                                                          
 Representative Con Bunde, Vice-Chair                                                                                           
 Representative Eric Croft                                                                                                      
 Representative John Davies                                                                                                     
 Representative Carl Moses                                                                                                      
 Representative Richard Foster                                                                                                  
 Representative John Harris                                                                                                     
 Representative Bill Hudson                                                                                                     
 Representative Ken Lancaster                                                                                                   
 Representative Jim Whitaker                                                                                                    
                                                                                                                                
 MEMBERS ABSENT                                                                                                               
                                                                                                                                
 None                                                                                                                           
                                                                                                                                
 ALSO PRESENT                                                                                                                 
                                                                                                                                
 Representative Gretchen Guess;  Representative Gary  Stevens;                                                                  
 Senator  Lyda  Green;  Senator  Robin  Taylor;  Senator  Alan                                                                  
 Austerman; Representative  Charles  Chenault;  Dean  Guaneli,                                                                  
 Chief Assistant  Attorney General,  Department  of Law;  Hans                                                                  
 Neidig,  Staff, Senator  Lyda  Green;  Eddy  Jeans,  Manager,                                                                  
 School  Finance   and  Facilities   Section,  Department   of                                                                  
 Education &  Early Development;  Matt Felix,  NCADD,  Juneau;                                                                  
 Carl Rose, Executive Director,  Association of Alaska  School                                                                  
 Boards,  Juneau;  Elmer   Lindstrom,  Special  Assistant   to                                                                  
 Commissioner  Perdue,   Department  of   Health  and   Social                                                                  
 Services; Denny Dewitt, Staff, Representative Eldon Mulder.                                                                    
                                                                                                                                
 PRESENT VIA TELECONFERENCE                                                                                                   
                                                                                                                                
 Mary Marshburn, Division  of Motor  Vehicles, Anchorage;  Dr.                                                                  
 Ed MacLean, Assistant  Superintendent for  the Kenai  Borough                                                                  
 School District,  Anchorage; Chuck  Hosack, Deputy Director,                                                                   
 Division of  Motor Vehicles,  Department  of Administration,                                                                   
 Anchorage;  Blaire McCune,  Public  Defender,  Department  of                                                                  
 Administration; Ernie Hall, Anchorage; Patrick Hickey,  Kenai                                                                  
 Peninsula  Borough  School  District,  Kenai;  Chuck  Hosack,                                                                  
 Deputy Director, Division of Motor Vehicles, Anchorage.                                                                        
                                                                                                                                
 SUMMARY                                                                                                                      
                                                                                                                                
 HB 105    An Act  relating  to the  base  student allocation                                                                   
           used in  the formula  for state  funding of  public                                                                  
           education; and providing for an effective date.                                                                      
                                                                                                                                
           CS HB 105 (EDU) was reported out of Committee  with                                                                  
           a  "do  pass"  recommendation  and  with   a  House                                                                  
           Finance Letter  of Intent and a  fiscal note #1  by                                                                  
           Department of Education  & Early Development  dated                                                                  
           4/23/01.                                                                                                             
                                                                                                                                
 HB 179    An  Act relating  to  underage  drinking  and  drug                                                                  
           offenses; and providing for an effective date.                                                                       
                                                                                                                                
           CS HB 179 (FIN) was reported out of Committee with                                                                   
           a "do pass"  recommendation and  with fiscal  notes                                                                  
           by #2 Department  of Corrections, #5 Department  of                                                                  
           Health & Social  Services, #6 Department of  Health                                                                  
           & Social  Services,  and new  fiscal notes  by  the                                                                  
           Department  of  Law,   the  Alaska  Court   System,                                                                  
           Department  of  Health   &  Social  Services,   and                                                                  
           Department of Administration.                                                                                        
                                                                                                                                
 HB 250    An Act  relating  to missions  and measures  to  be                                                                  
           applied to  certain expenditures  by the executive                                                                   
           branch of  state government and  the University  of                                                                  
           Alaska  from the  state operating  budget  for  the                                                                  
           fiscal year  ending June  30, 2002;  and  providing                                                                  
           for an effective date.                                                                                               
                                                                                                                                
           CS HB 250 (FIN) was reported out of Committee with                                                                   
           a "do pass" recommendation  and with a zero  fiscal                                                                  
           note by the House Finance Committee.                                                                                 
                                                                                                                                
 CS SB 133(HES) am                                                                                                              
           An  Act  relating  to  a two-year   transition  for                                                                  
           implementation   of   the   public   high    school                                                                  
           competency  examination   and  to  establishing   a                                                                  
           secondary student competency examination as  a high                                                                  
           school graduation  requirement;  and providing  for                                                                  
           an effective date.                                                                                                   
                                                                                                                                
           HCS CS SB 133  (FIN) was reported out of  Committee                                                                  
           with a "do pass"  recommendation and with a  fiscal                                                                  
           note  #1  by   Department  of  Education  &   Early                                                                  
           Development dated 3/20/01.                                                                                           
                                                                                                                                
 HCR 14    Suspending  Rules  24(c),  35,  41(b),  and  42(e),                                                                  
           Uniform  Rules of  the  Alaska  State Legislature,                                                                   
           concerning Senate Bill No. 133, relating to high                                                                     
           school competency testing.                                                                                           
                                                                                                                                
           HCR 14 was reported out of Committee with a "do                                                                      
           pass" recommendation and with a zero fiscal note                                                                     
           #1 by the House HESS Committee dated 4/12/01.                                                                        
                                                                                                                                
 HOUSE BILL NO. 105                                                                                                           
                                                                                                                                
      An Act relating to the base student allocation used in                                                                    
      the formula for state funding of public education; and                                                                    
      providing for an effective date.                                                                                          
                                                                                                                                
 REPRESENTATIVE  GARY  STEVENS  noted  that  Alaska's   Public                                                                  
 Education Funding  Formula  is  based on  a  specific  dollar                                                                  
 amount  per  student.    The  base  student  allocation   was                                                                  
 established in 1998  as $3,940 per student  and has not  been                                                                  
 increased since that time.   HB 105 increases the allocation                                                                   
 by $101 dollars.                                                                                                               
                                                                                                                                
 Representative  Stevens  advised  that  during  the  past  14                                                                  
 years, inflation has had  an impact on public school  funding                                                                  
 and that the purchasing  power of the general fund education                                                                   
 dollars have slowly eroded over time.  Although, the  State's                                                                  
 contribution to  the 53  school districts  has increased  54%                                                                  
 since FY88, the  effect of  annual inflation,  as well as  an                                                                  
 increase in student  enrollment, has  negated the growth  and                                                                  
 the  purchasing  power  of   the  student  dollar  has   been                                                                  
 diminished.                                                                                                                    
                                                                                                                                
 Representative Stevens  pointed out  that  the public  school                                                                  
 foundation program has lost  13.9% on a student dollar  basis                                                                  
 since FY88 due to the cumulative effect of annual inflation.                                                                   
 HB 105 proposes to recoup some of that loss.                                                                                   
                                                                                                                                
 Representative Stevens commented  that supporters of a  world                                                                  
 class educational system  for Alaska  must agree that,  while                                                                  
 at the same  time inflation is eroding  the purchasing  power                                                                  
 for the student  dollar, Alaskans are  asking public  schools                                                                  
 to take on more and more responsibility in three areas.                                                                        
                                                                                                                                
      ·         First, many parents today regularly drop off                                                                    
                their children at school early in the  morning                                                                  
                and  pick   them  up  after   work.     School                                                                  
                personnel  today provide  not  only classroom                                                                   
                instruction for these students but also  offer                                                                  
                the  emotional,  social,  and  moral   support                                                                  
                needed before and  after regular school  hours                                                                  
                at a level  unheard of  a generation ago.  The                                                                  
                increased time that  a child spends at  school                                                                  
                increases  the  responsibility  of  the  local                                                                  
                teachers and administrators.                                                                                    
      ·         Secondly, as performance standards and the                                                                      
                corresponding  assessments  become  a  reality                                                                  
                and   are  accepted   as   commonplace,   each                                                                  
                neighborhood  school  and  classroom  will  be                                                                  
                held more  accountable for  student learning.                                                                   
                Children    who    need    extra   innovative                                                                   
                instruction to master these standards  will be                                                                  
                identified    and    teachers    will    offer                                                                  
                appropriate remedial  learning opportunities.                                                                   
                The  added  tutoring  sessions  necessary  for                                                                  
                some  students  may  be  offered  within   the                                                                  
                regular school  day  or during  a Saturday  or                                                                  
                summer    school     program.    The     added                                                                  
                accountability  is   a  step   in  the   right                                                                  
                direction,  but   it  does  have  substantial                                                                   
                impact  on  the  financial  resources  of  our                                                                  
                local school districts.                                                                                         
      ·         Lastly, classroom teachers are on the                                                                           
                frontline with the  children and must be  held                                                                  
                accountable    for    their    learning    and                                                                  
                performance.   Alaska's young  people  deserve                                                                  
                to  be  taught  by  the  very  best   teachers                                                                  
                possible.    Alaska's  school  districts   are                                                                  
                faced with  the responsibility  of recruiting                                                                   
                and retaining  a highly  qualified work  force                                                                  
                at a time when  teachers are in short  supply,                                                                  
                which is not an  easy task.  The State has  an                                                                  
                obligation to provide adequate funding  to all                                                                  
                public  school districts  so that  all  school                                                                  
                districts   can  hire   and   retain   quality                                                                  
                teachers                                                                                                        
                                                                                                                                
 Representative Stevens  summarized that  public education  is                                                                  
 faced   with  the   unenviable   position-assuming    greater                                                                  
 responsibility with a  reduction in the  purchasing power  of                                                                  
 the student dollar.   Alaska  cannot continue  to ask the  53                                                                  
 school   districts    to    meet   all    these   additional                                                                   
 responsibilities   with  a   dwindling   budget,  therefore,                                                                   
 additional funding  is a necessity.   Representative  Stevens                                                                  
 stressed  that the  increase  of  $101  dollars  per  student                                                                  
 provided the legislation would assist local school districts                                                                   
 to meet, and hopefully exceed, the public's expectations  and                                                                  
 demands.                                                                                                                       
                                                                                                                                
 Representative Davies asked if the 30% inflation costs  would                                                                  
 be covered.  Representative Stevens stated that it would  not                                                                  
 and that it would be substantially less.                                                                                       
                                                                                                                                
 Vice-Chair Bunde  asked  if the  30% inflation  increase  had                                                                  
 been in the last ten  years.  Representative Stevens  replied                                                                  
 that the Anchorage  School district  had calculated  it.   He                                                                  
 added that  there is  no way  to determine  if  that was  the                                                                  
 correct amount, but  emphasized that it  was the amount  that                                                                  
 had been spent.                                                                                                                
                                                                                                                                
 Vice-Chair  Bunde  asked  how  many  schools  were receiving                                                                   
 classroom instruction  waivers so  that they  could put  that                                                                  
 money into  administrative  costs.    Representative  Stevens                                                                  
 recommended that the Department answer that question.                                                                          
                                                                                                                                
 Representative Whitaker  asked if  the 30%  inflation  factor                                                                  
 had  included  the  increase  in  contributions  from   local                                                                  
 property taxes.   Representative  Stevens did not  know.   He                                                                  
 reiterated  that the  figures  had  been  provided  from  the                                                                  
 Anchorage School district.                                                                                                     
                                                                                                                                
 Representative  Hudson  inquired  when  the  last  time   the                                                                  
 foundation  formula   increased.     Representative   Stevens                                                                  
 replied that since 1988, it has increased by 54%.                                                                              
                                                                                                                                
 Representative  Davies asked  the  funding  need  in  various                                                                  
 school districts.  Representative Stevens replied that  there                                                                  
 exists a  tremendous problem  in the  school  districts.   He                                                                  
 claimed  that  it  would  be  a  disservice  to  the   entire                                                                  
 profession.  Putting money  into the foundation formula  also                                                                  
 raises the  cap.    The cap  is  the amount  that  the  local                                                                  
 districts contribute  of their  own money  for  schools.   He                                                                  
 noted that districts are finding ways to circumvent  the cap.                                                                  
                                                                                                                                
 Vice-Chair  Bunde noted  that  not  all  schools  make  local                                                                  
 contributions.  Representative Stevens acknowledged  that was                                                                  
 true and  that  some  districts  receive  money  for  funding                                                                  
 outside State contributions.                                                                                                   
                                                                                                                                
 Representative Harris  pointed out that  the original  number                                                                  
 had been reduced and  referenced other legislation  regarding                                                                  
 the costs of running schools.  If that legislation becomes  a                                                                  
 reality, next  year education  would be  funded  at a  higher                                                                  
 level.  Representative  Harris noted  that he supported  that                                                                  
 legislation.   Representative  Stevens  stressed that  it  is                                                                  
 essential that a study be undertaken as additional costs  are                                                                  
 pending.                                                                                                                       
                                                                                                                                
 Representative Davies  believed that  it would  be easier  to                                                                  
 get  an   increase   if  the   base   had  been   built   up.                                                                  
 Representative Stevens responded that whatever help  could be                                                                  
 offered this year would be appreciated.                                                                                        
                                                                                                                                
 EDDY JEANS, MANAGER, SCHOOL  FINANCE AND FACILITIES  SECTION,                                                                  
 DEPARTMENT OF EDUCATION &  EARLY DEVELOPMENT, clarified  that                                                                  
 inflation has increased  30% over  the past ten  years.   The                                                                  
 Legislature has  increased the  base allocation  by only  5%.                                                                  
 The formula  self adjusts  for  the property  tax increases.                                                                   
 The minimum level  for the base student  allocation has  been                                                                  
 determined and the  minimum level of  revenue that districts                                                                   
 need to support  education.   That money  is divided  between                                                                  
 pots of  federal,  local  and state  dollars.    As  property                                                                  
 values increase,  if  the  base student  enrollment  is  held                                                                  
 constant,  then the  State  general  fund  requirement  would                                                                  
 decrease.   The base allocation  to school  districts over  a                                                                  
 ten-year period has only increased by 10%.                                                                                     
                                                                                                                                
 Representative Whitaker asked if there has been a one  to one                                                                  
 reduction in the ratio.  Mr. Jeans replied that was close.                                                                     
                                                                                                                                
 Vice-Chair  Bunde  asked  how  many  school  districts   were                                                                  
 currently requesting  money for waivers.   Mr. Jeans  replied                                                                  
 that was  the provision  which required  school districts  to                                                                  
 spend 70% of their  fund on instruction.   The districts  may                                                                  
 apply for  a waiver  from  the State  Board of  Education  if                                                                  
 there are  circumstances beyond  their control.   In  FY2001,                                                                  
 there were  24 school  districts applying  for  waivers.   In                                                                  
 many of  those school  districts, there  is  a dispersed  and                                                                  
 small population so many  sites are being operated with  high                                                                  
 operational  costs.   He  noted  that  all  24  waivers  were                                                                  
 granted.                                                                                                                       
                                                                                                                                
 Vice-Chair Bunde  questioned  how many  single  site  schools                                                                  
 with high overhead there were and how many schools districts                                                                   
 that makes  no local contribution.   Mr.  Jeans replied  that                                                                  
 there are  19  Regional Education  Attendance  Areas  (REAAs)                                                                  
 that do  not make  a local  tax appropriation  to education.                                                                   
 The Administration's  position has  always  been that  impact                                                                  
 aid is  in lieu of  property taxes.   Those  lands have  been                                                                  
 moved by federal action  from the tax  rules.  Even if  those                                                                  
 lands moved  into  boroughs,  most  of them  are  still  non-                                                                  
 taxable  and  would  be  used  to  offset  the  general  fund                                                                  
 requirements.  In response  to Vice-Chair Bunde comment,  Mr.                                                                  
 Jeans advised that those communities do not make a local  tax                                                                  
 contribution  for   their   schools  through   an  organized                                                                   
 government.  They make it through the federal government.                                                                      
                                                                                                                                
 Representative Davies asked  what the high operational  costs                                                                  
 are.    Mr.  Jeans  explained  that  those  costs  relate  to                                                                  
 economies  of scale.    Some  school  districts,  serve  many                                                                  
 communities.   There is one  community that  serves over  100                                                                  
 students.   They do  not have  the population  to spread  the                                                                  
 operational  costs over.    He noted  that  fuel  costs  have                                                                  
 increased over the past year.                                                                                                  
                                                                                                                                
 Representative Whitaker  referenced federal  impact  dollars.                                                                  
 Mr. Jeans explained that  they are called federal impact  aid                                                                  
 dollars and  they  are received  in  lieu of  local  property                                                                  
 taxes.  Those properties are non-taxable due to some  type of                                                                  
 federal intervention.  The  federal government has come  back                                                                  
 from their  own program  and  indicated that  they recognize                                                                   
 their  obligation   to   support  education   because   those                                                                  
 properties were moved  off the tax roles.   If those  regions                                                                  
 were  incorporated  into  boroughs,  those  properties  still                                                                  
 would not  be  taxable  and they  would  still  generate  the                                                                  
 federal dollars.                                                                                                               
                                                                                                                                
 Mr. Jeans pointed out that  the last student increase  amount                                                                  
 occurred in  1993 under the  instructional unit  method of  a                                                                  
 1.7% increase.  Over the  last ten years, that 1.7%  increase                                                                  
 plus the 3.3% amount under SB 36 provides the 5% increase.                                                                     
                                                                                                                                
 Representative  Davies  asked  if  any  urban  districts  had                                                                  
 received some of  the federal impact aid.   Mr. Jeans  stated                                                                  
 that there is only  six schools districts  in the State  that                                                                  
 do not receive the impact  aid.  Most of the urban districts                                                                   
 do.    In  the  military   installations  in  Anchorage   and                                                                  
 Fairbanks, the land is non-taxable and generates revenue.                                                                      
                                                                                                                                
 Mr. Jeans addressed  the cost differential  adjustments.   He                                                                  
 pointed  out  cost  differences   by  regions,  providing   a                                                                  
 comparable  program.   It  is not  about  adequate  level  of                                                                  
 funding.    Under  the  cost  differential,  there   will  be                                                                  
 shifting in money once the report comes out.  There  will not                                                                  
 be a large increase required as a result of that study.   The                                                                  
 number will adjust the way  that the money is distributed  in                                                                  
 the formula.                                                                                                                   
                                                                                                                                
 Representative Lancaster asked if it was expected that  there                                                                  
 would be an increase as a result of that.  Mr. Jeans  replied                                                                  
 that the increase  would be modest.   Through the foundation                                                                   
 program, a $665  million dollar program  in FY02 budget,  and                                                                  
 the portion  that makes  up the  cost differentials  is  less                                                                  
                                               th                                                                               
 than $70 million dollars.   That would be 1/10  of the  local                                                                  
 program.                                                                                                                       
                                                                                                                                
 SENATOR ROBIN TAYLOR  advocated that  the foundation  formula                                                                  
 should be increased.  He  recommended that there needs to  be                                                                  
 modifications and fine-tuning to that formula.  He commented                                                                   
 that this would  be the  best the Legislature  will see  this                                                                  
 year.  He noted that the  bill that he submitted would  raise                                                                  
 the formula  by $210  dollars per  student.   Senator  Taylor                                                                  
 stated that the bill provides  for less than half of what  is                                                                  
 necessary  to  adequately  fund  education.    He encouraged                                                                   
 members to move forward.                                                                                                       
                                                                                                                                
 In response  to  Representative  J.  Davies,  Senator  Taylor                                                                  
 advised that there are no nurses, no art and music programs,                                                                   
 and no physical education programs in the elementary  schools                                                                  
 in his district.   He stressed that  there is a disparity  in                                                                  
 the formula.   The  formula must  be adjusted  upward and  he                                                                  
 proposed that the bill would be a good compromise.                                                                             
                                                                                                                                
 SENATOR ALAN AUSTERMAN  voiced his  support for  HB 105.   He                                                                  
 stressed that the State  must put more money into education.                                                                   
 Funding has  not been  increased  for years  and it  is  long                                                                  
 overdue.  He  noted that he had  introduced legislation  that                                                                  
 provides for a  school head  tax to help  pay for education.                                                                   
 He offered to discuss that option.                                                                                             
                                                                                                                                
 CARL ROSE, EXECUTIVE DIRECTOR,  ASSOCIATION OF ALASKA  SCHOOL                                                                  
 BOARDS, JUNEAU,  voiced  support for  the legislation.    Mr.                                                                  
 Rose noted  that he had  served on  the Governor's Education                                                                   
 Task Force.  That Task  Force identified $34 million  dollars                                                                  
 that is needed to  "do the job".   He pointed out that  there                                                                  
 is one school district  in which 58  positions have not  been                                                                  
 filled. If  those  positions are  not  filled, they  will  be                                                                  
 filled with  substitutes who  are not  qualified.   He  asked                                                                  
 what the chances were that those kids would be able  to reach                                                                  
 the standards with substitute and unqualified teachers.                                                                        
                                                                                                                                
 Mr. Rose suggested that over a period of time, the State  has                                                                  
 been unable  to attract  and maintain  quality  teachers.   A                                                                  
 future cost model would not  reflect the ability to hire  and                                                                  
 maintain good teachers.  That  is where the grade is made  or                                                                  
 not.    Mr. Rose  voiced support  for increasing  the  number                                                                  
 back to the original $28  million dollars that was contained                                                                   
 in HB 105.   He  stressed that there  needs to  be a  broader                                                                  
 view, with a sound fiscal  long-range plan.  The State  needs                                                                  
 to broaden the  perspective for the future  for Alaska.   Mr.                                                                  
 Rose projected that with the current funding, education  will                                                                  
 "hit the wall"  in four to  five years.   He emphasized  that                                                                  
 $34 million dollars was a modest request.                                                                                      
                                                                                                                                
 Vice-Chair Bunde pointed out  there is a $600 million  dollar                                                                  
 fiscal gap.   He  stated  that whatever  is done  now,  those                                                                  
 children will have  to pay  taxes to fill  that gap.      Mr.                                                                  
 Rose responded that the future holds potential for increased                                                                   
 revenue.  The ability  for the State  to pay now and  dollars                                                                  
 to be leveraged out of  the earnings reserve, provide that  a                                                                  
 number of  options could  generate a  modest  rate to  offset                                                                  
 declining revenues  and  project  a better  picture  for  the                                                                  
 future.                                                                                                                        
                                                                                                                                
 PATRICK  HICKEY,   (TESTIFIED  VIA   TELECONFERENCE),   KENAI                                                                  
 PENNINSULA BOROUGH  SCHOOL  DISTRICT, KENAI,  voiced  support                                                                  
 for the legislation.                                                                                                           
                                                                                                                                
 Representative  Moses noted  that  he resented  the  fact  of                                                                  
 using the  "fiscal gap"  for not  supporting  the funding  of                                                                  
 education.  The State should be funding education properly.                                                                    
                                                                                                                                
 Representative Davies MOVED to ADOPT Amendment #1.   [Copy on                                                                  
 File].  Co-Chair Williams OBJECTED.                                                                                            
                                                                                                                                
 Representative  Davies explained  that  the  amendment  would                                                                  
 delete "$4,041" and insert "$4,091"  to Page 1, Line 6.   The                                                                  
 change would bring the State closer to the inflated number.                                                                    
                                                                                                                                
                                                                                                                                
 TAPE HFC 01 - 93, Side B                                                                                                     
                                                                                                                                
                                                                                                                                
 Co-Chair Williams agreed  with Representative Moses that  the                                                                  
 State should be  increasing the amount,  he however,  pointed                                                                  
 out the difficulty increasing  that amount would politically                                                                   
 cause at this time on the  Senate side.  He claimed that  the                                                                  
 "push" to increase the budget came from the public.                                                                            
                                                                                                                                
 Representative Croft questioned  with whom the House  Finance                                                                  
 Committee was  compromising  with.   He  stated that  if  the                                                                  
 House Finance  Committee agrees  that $150  dollars would  be                                                                  
 the proper amount,  then that  is the amount  that should  be                                                                  
 included  in the  bill  and  forwarded  to  the  other  body.                                                                  
 Compromise is an important  part of the legislative  process.                                                                  
 He pointed out that two Senators have already indicated  that                                                                  
 the number is too  low.  He  emphasized that the appropriate                                                                   
 number   should    be    placed   into    the   legislation.                                                                   
 Representative Croft added that the formula would generate  a                                                                  
 reduction to the State's contribution.                                                                                         
                                                                                                                                
 Representative Whitaker interjected that the Legislature  has                                                                  
 begun the negotiation  process.  He  acknowledged that  there                                                                  
 would be a compromise within any system.  He stated  that $20                                                                  
 million  dollars would  be  a  reasonable  number  given  the                                                                  
 circumstances.   Representative Lancaster  echoed sentiments                                                                   
 proposed by Representative Whitaker.                                                                                           
                                                                                                                                
 Vice-Chair  Bunde pointed  out  that  regardless  the  agreed                                                                  
 number, it would be impossible to satisfy all parties.                                                                         
                                                                                                                                
 Recess:        3:20 p.m.                                                                                                       
 Reconvene:     3:40 p.m.                                                                                                       
                                                                                                                                
 A roll call vote was taken  on the motion to adopt Amendment                                                                   
 #1.                                                                                                                            
                                                                                                                                
 IN FAVOR:      Davies, Moses, Croft                                                                                            
 OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                    
                Bunde, Williams, Mulder                                                                                         
                                                                                                                                
 The MOTION FAILED (3-8).                                                                                                       
                                                                                                                                
 Co-Chair Mulder  MOVED  to  ADOPT Amendment  #2,  the  Intent                                                                  
 Language. [Copy on File].                                                                                                      
                                                                                                                                
 Representative Davies  noted concern  that there  would be  a                                                                  
 separate accounting  attached.    Co-Chair  Mulder explained                                                                   
 that his intent  was to include  "outcome performance  based"                                                                  
 objectives.                                                                                                                    
                                                                                                                                
 Vice-Chair Bunde noted that there was other legislation  that                                                                  
 would call for a similar  report.  Co-Chair Mulder suggested                                                                   
 that both pieces of legislation could use the one report.                                                                      
                                                                                                                                
 Representative Davies  asked if  it was the  intent that  the                                                                  
 language be placed in statute.  Co-Chair Mulder replied  that                                                                  
 it was his  preference that  the language be  included in  an                                                                  
 intent section in the bill.   He added that either way  would                                                                  
 be okay  if  it was  attached.   There  being  NO OBJECTION,                                                                   
 Amendment #2 was adopted.                                                                                                      
                                                                                                                                
 Co-Chair Mulder MOVED  to report out of  Committee CS HB  105                                                                  
 (EDU) with individual recommendations,  the Letter of  Intent                                                                  
 and  with  the accompanying   fiscal  note.   Representative                                                                   
 Davies OBJECTED for a comment.   He stated that the  Minority                                                                  
 Caucus  believes  that  the  amount  proposed  was  too  low.                                                                  
 Representative  J. Davies  WITHDREW  his  OBJECTION.    There                                                                  
 being NO further OBJECTION, it was so ordered.                                                                                 
                                                                                                                                
 CS HB 105  (EDU) was  reported out  of Committee  with a  "do                                                                  
 pass" recommendation  and  with  a House  Finance  Letter  of                                                                  
 Intent and  a fiscal  note #1  by Department  of Education  &                                                                  
 Early Development dated 4/23/01.                                                                                               
                                                                                                                                
 CS FOR SENATE BILL NO. 133(HES) am                                                                                           
                                                                                                                                
      An  Act   relating   to  a   two-year   transition   for                                                                  
      implementation  of the  public  high  school competency                                                                   
      examination  and to  establishing  a  secondary  student                                                                  
      competency  examination  as  a  high  school graduation                                                                   
     requirement; and providing for an effective date.                                                                          
                                                                                                                                
Co-Chair  Williams  advised  that  there  had  been  a  MOTION                                                                  
PENDING  on Amendment  #2.   Vice-Chair Bunde  reiterated  his                                                                  
OBJECTION.                                                                                                                      
                                                                                                                                
Vice-Chair  Bunde maintained that  other states  have held  to                                                                  
high  standards even  for the  children education  without  an                                                                  
Individual  Education  Program  (IEP).   He  stated  that  the                                                                  
"alternative  assessment",  determined by  each  district  has                                                                  
two faults.   The local school districts  may find it  cheaper                                                                  
and easier to reduce  the standard to the student rather  than                                                                  
raising the  student to a higher standard.   He added that  it                                                                  
is a problem  because each school  board would determine  what                                                                  
an   assessment  is.     There   is  no   statewide  standard                                                                   
established.                                                                                                                    
                                                                                                                                
Representative  Lancaster commented  that  the intent  of  the                                                                  
amendment  was to  work with  the  Department and  the  Alaska                                                                  
State School Board Association.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:       Hudson, Lancaster, Moses, Whitaker, Croft,                                                                      
                Davies, Foster, Williams                                                                                        
OPPOSED:        Bunde, Harris                                                                                                   
                                                                                                                                
Co-Chair Mulder was not present for the vote.                                                                                   
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
Representative  Croft  MOVED  to  ADOPT  Amendment   #3.    He                                                                  
explained that  SB 105 had been  pending referral at the  time                                                                  
that the amendment  was drafted.  Representative Croft  stated                                                                  
that the  amendment was prepared  in that  context.  He  noted                                                                  
that  he would  WITHDRAW Amendment  #3 as  it was  not  needed                                                                  
with the passage of HB 105.                                                                                                     
                                                                                                                                
Representative Davies  stressed that it  would not be  harmful                                                                  
to have too much money  on the table.  He pointed out that  HB                                                                  
105 had further Committees to pass through before passage.                                                                      
                                                                                                                                
Representative  Hudson MOVED  to report  HCS CS  SB 133  (FIN)                                                                  
out of  Committee with  the accompanying fiscal  note.   There                                                                  
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
HCS CS SB 133 (FIN)  was reported out of Committee with a  "do                                                                  
pass" recommendation and  with a fiscal note #1 by Department                                                                   
of Education & Early Development dated 3/20/01.                                                                                 
                                                                                                                                
 HOUSE CONCURRENT RESOLUTION NO. 14                                                                                           
                                                                                                                                
      Suspending Rules  24(c), 35, 41(b),  and 42(e),  Uniform                                                                  
      Rules  of  the  Alaska  State  Legislature,  concerning                                                                   
      Senate Bill No. 133, relating to high school competency                                                                   
      testing.                                                                                                                  
                                                                                                                                
 Representative  Foster  MOVED   to  report  HCR  14  out   of                                                                  
 Committee  with  individual  recommendations  and  with   the                                                                  
 accompanying fiscal note.   There being NO OBJECTION, it  was                                                                  
 so ordered.                                                                                                                    
                                                                                                                                
 HCR 14  was  reported  out  of Committee  with  a  "do  pass"                                                                  
 recommendation and with  a zero fiscal note  #1 by the  House                                                                  
 HESS Committee dated 4/12/01.                                                                                                  
                                                                                                                                
 Recess:        3:55 P.M.                                                                                                       
 Reconvene:     4:15 P.M.                                                                                                       
                                                                                                                                
 HOUSE BILL NO. 179                                                                                                           
                                                                                                                                
      An Act relating to underage drinking and drug offenses;                                                                   
      and providing for an effective date.                                                                                      
                                                                                                                                
 REPRESENTATIVE NORMAN  ROKEBERG discussed that  in 1994,  the                                                                  
 Legislature enacted the "Use It, Lose It" law (AS 28.15.183)                                                                   
 for minors who are caught possessing or using alcohol.   If a                                                                  
 minor were  caught  using  alcohol,  their  driver's  license                                                                  
 would be administratively revoked  for a period of time.   In                                                                  
 December, in  a case  State  versus Niedermeyer,  the  Alaska                                                                  
 Supreme Court  found  that  taking away  a  minor's  driver's                                                                  
 license  for  possession  or  consumption  of  alcohol  or  a                                                                  
 controlled substance,  without giving  them a  trial, was  in                                                                  
 violation of a minor's constitutional right to due process.                                                                    
                                                                                                                                
 Representative Rokeberg commented  that if a minor is  caught                                                                  
 using alcohol  or drugs,  they  are sent  a letter  from  the                                                                  
 Division of Motor  Vehicles (DMV) stating  that the DMV  will                                                                  
 not  revoke their  license  until  there  has  been  a  court                                                                  
 conviction  for  the  offense.   At  present,  the   district                                                                  
 attorney's  office  is  not  prosecuting  minors  caught  for                                                                  
 consumption of  alcohol,  because  the court  system  is  not                                                                  
 prepared to handle jury trials for this type of case.                                                                          
                                                                                                                                
 The effect of the Niedermeyer decision is that minors  now go                                                                  
 virtually unpunished  for  possessing or  consuming  alcohol.                                                                  
 The maximum penalty that may currently be enforced on  minors                                                                  
 who are  caught consuming  or possessing  alcohol  is a  $100                                                                  
 fine.                                                                                                                          
                                                                                                                                
 Representative Rokeberg  advised that  the  law would  impose                                                                  
 appropriate punishments on  minors who use alcohol, and  will                                                                  
 be  a  deterrent  to  minors  when they  consider   drinking.                                                                  
 Statistics show that  the earlier a  person begins drinking,                                                                   
 the more likely they are to have problems with alcohol  later                                                                  
 in life.  By sending  a message  early to  minors that  their                                                                  
 actions will  not go  unpunished, we  hope to  deter  alcohol                                                                  
 problems in the future.                                                                                                        
                                                                                                                                
 Representative  Rokeberg  continued   that  the  bill   would                                                                  
 establish a  graduated system  of punishment  for minors  who                                                                  
 are caught consuming, possessing or controlling alcohol.   On                                                                  
 a minor's first  offense, he/she would be  subject to a  fine                                                                  
 of  between   $200-600,   would  have   to   attend   alcohol                                                                  
 information school, and would be placed on probation.   For a                                                                  
 minor's second offense, the  minor would be guilty of  repeat                                                                  
 minor consuming and would be  subject to a fine of $1000,  at                                                                  
 least 48  hours  of  community work  service,  a three-month                                                                   
 license revocation, and probation.   A minor's third  offense                                                                  
 would cause them  to be guilty of  habitual minor consuming,                                                                   
 which would be a  Class B misdemeanor,  resulting in up to  a                                                                  
 $1000 fine  and 90  days in  jail.   In addition,  the  minor                                                                  
 would lose his/her license for a period of six months,  would                                                                  
 be required to complete at  least 96 hours of community  work                                                                  
 service, and be placed on probation.                                                                                           
                                                                                                                                
 Vice-Chair Bunde questioned  the "three  time" aspect of  the                                                                  
 legislation and suggested that a second offense should  merit                                                                  
 serious  consequences.   Representative   Rokeberg explained                                                                   
 that the second  offense does  demand the option  for a  jury                                                                  
 trial and mandates a  three-month revocation of the  driver's                                                                  
 license.   He  noted  that the  testimony  before  the  House                                                                  
 Judiciary Committee pointed  out that  under the current  use                                                                  
 it or loose  it statute,  there were juveniles  in the  State                                                                  
 that had up to seven offenses, thus, creating a problem  with                                                                  
 revocation  of licenses.    He thought  that  statute  was  a                                                                  
 failure.                                                                                                                       
                                                                                                                                
 Vice-Chair Bunde  referenced the  chart distributed  and  the                                                                  
 second offense charges  associated with  the offense.   [Copy                                                                  
 on File].  Discussion  followed between Vice-Chair Bunde  and                                                                  
 Representative Rokeberg regarding current law default.                                                                         
                                                                                                                                
 Representative  Foster  referenced   the  sponsor  statement                                                                   
 recommendation  for  an  Alcohol  Information  School.     He                                                                  
 inquired how attendance  would be  mandated.  Representative                                                                   
 Rokeberg replied  that would be  mandatory if  such a  school                                                                  
 was available in that area.                                                                                                    
                                                                                                                                
 Co-Chair Williams  MOVED to  ADOPT Amendment  #1.   [Copy  on                                                                  
 File].  Co-Chair Mulder OBJECTED for discussion.                                                                               
                                                                                                                                
 Representative Rokeberg  explained that  the amendment  would                                                                  
 delete all material  on Page  2, Line 3,  following the  word                                                                  
 "group", and replacing that  language with: "Selected by  the                                                                  
 court to serve as a  sentencing option for persons convicted                                                                   
 of a  violation  under this  section".    He noted  that  the                                                                  
 Courts   had   recommended   the   amendment   for    greater                                                                  
 flexibility.                                                                                                                   
                                                                                                                                
 Co-Chair Mulder  WITHDREW  his  OBJECTION.   There  being  NO                                                                  
 further OBJECTION, Amendment #1 was adopted.                                                                                   
                                                                                                                                
 Representative Davies MOVED to ADOPT Amendment #2.   [Copy on                                                                  
 File].  Co-Chair Williams OBJECTED for discussion.                                                                             
                                                                                                                                
 Representative  Rokeberg  stated  that  the  amendment  would                                                                  
 delete all language on Page 6, Lines 5-6.                                                                                      
                                                                                                                                
 CHUCK   HOSACK,   [TESTIFIED   VIA  TELECONFERNCE],    DEPUTY                                                                  
 DIRECTOR, DIVISION OF MOTOR  VEHICLES, ANCHORAGE, noted  that                                                                  
 the Division supported Amendment #2.                                                                                           
                                                                                                                                
                                                                                                                                
 TAPE HFC 01 - 94, Side A                                                                                                     
                                                                                                                                
                                                                                                                                
 Co-Chair Williams WITHDREW his OBJECTION.                                                                                      
                                                                                                                                
 Representative Hudson MOVED to ADOPT Amendment #3.   [Copy on                                                                  
 File].     Co-Chair   Williams   OBJECTED   for  discussion.                                                                   
 Representative Hudson asked  to amend Amendment #3 by  adding                                                                  
 "Juneau" to the definition  of pilot juvenile alcohol  safety                                                                  
 action programs.  He added that following "Kotzebue",  adding                                                                  
 the language "for treatment  only".  He asked if the  Alcohol                                                                  
 Safety Action Programs (ASAP) had been included in the  bill.                                                                  
 Representative Rokeberg  replied they  were.   He added  that                                                                  
 the  amendment  would  limit  the  treatment  elements.    He                                                                  
 suggested that  the amendment could  reduce the  cost of  the                                                                  
 fiscal notes while continuing the concept.                                                                                     
                                                                                                                                
 Representative  Davies   agreed  with  the   intent  of   the                                                                  
 amendment,  however,  noted   that  the  way  in  which   the                                                                  
 amendment  had  been  written  would  cause  problems.     He                                                                  
 suggested deleting the amendment from the Page 12, Lines  13-                                                                  
 14.  He believed that could remove all ASAP's from the  bill.                                                                  
                                                                                                                                
 ELMER LINDSTROM,  SPECIAL ASSISTANT  TO COMMISSIONER  PERDUE,                                                                  
 DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  stated that  the                                                                  
 intent of  the  legislation was  to  allow for  the  juvenile                                                                  
 alcohol  safety action  program  to  continue  as originally                                                                   
 envisioned  and   limit   obligations  for   the  additional                                                                   
 treatment dollars.  Mr. Lindstrom claimed that it would  be a                                                                  
 mistake to  delete  that language.    He commented  that  the                                                                  
 cleanest way  would be  through intent  language which  would                                                                  
 allow the additional treatment  resources in those locations                                                                   
 and would allow the fiscal notes to conform to that.                                                                           
                                                                                                                                
 Representative  Davies advised  that  there  were additional                                                                   
 portions of the amendment that do not work together.                                                                           
                                                                                                                                
 Representative Rokeberg  voiced concern  with switching  from                                                                  
 unqualified law to  a letter of intent  for the program.   He                                                                  
 voiced concern with the  cost containment unless there was  a                                                                  
 strict review by the HESS budget subcommittee about  how that                                                                  
 program would be expanded.  He reiterated that the letter  of                                                                  
 intent would not be enough.  Co-Chair Williams agreed.                                                                         
                                                                                                                                
 Representative Davies suggested  modifying the amendment,  on                                                                  
 Page 12,  omitting  that section  and  inserting a  new  bill                                                                  
 Section #18.                                                                                                                   
                                                                                                                                
 Co-Chair Williams  asked that  Representative  J. Davies  and                                                                  
 Representative  Rokeberg  work  together  to  come   up  with                                                                  
 appropriate language.                                                                                                          
                                                                                                                                
 At-Ease:       4:45 P.M.                                                                                                       
 Reconvene:     4:50 P.M.                                                                                                       
                                                                                                                                
 Representative  Hudson   WITHDREW   the  amendment   to   the                                                                  
 amendment.   Representative  Hudson  WITHDREW  Amendment  #3.                                                                  
 There being NO OBJECTION, it was withdrawn.                                                                                    
                                                                                                                                
 Representative Davies MOVED to ADOPT a new Amendment  #3.  He                                                                  
 referenced the old  Amendment #3 and stated  that the new  #3                                                                  
 would retain the  changes recommended to  Page 3, Line 5  and                                                                  
 Page 9, Line  29.  On  Page 12, the delete  portion would  be                                                                  
 struck and then  retaining the inserted  language.  Page  12,                                                                  
 Lines 13-4 would read, "Insert a new bill section".   The new                                                                  
 section would read:  "Alcohol  Treatment Program".  He  added                                                                  
 that after  "Fairbanks",  "Juneau"  should be  inserted  with                                                                  
 "for treatment only".  All  the language on Page 12, Line  15                                                                  
 would be eliminated.                                                                                                           
                                                                                                                                
 Co-Chair Mulder clarified  the amendment  would decrease  the                                                                  
 fiscal note to $800 thousand dollars.                                                                                          
                                                                                                                                
 Mr.  Lindstrom  spoke   to  the  three   fiscal  notes   from                                                                  
 Department of Health  & Social Services.   He noted that  the                                                                  
 amendment would reduce note  #1 to $400 thousand dollars  and                                                                  
 that note #2 and #3 would remain the same.                                                                                     
                                                                                                                                
 There being NO OBJECTION, the new Amendment #3 was adopted.                                                                    
                                                                                                                                
 Representative Hudson MOVED to report CS HB 179 (FIN)  out of                                                                  
 Committee  with  individual  recommendations  and  with   the                                                                  
 accompanying fiscal notes with the indicated changes.   There                                                                  
 being NO OBJECTION, it was so ordered.                                                                                         
                                                                                                                                
 CS HB 179  (FIN) was  reported out  of Committee  with a  "do                                                                  
 pass" recommendation and with  fiscal notes by #2  Department                                                                  
 of Corrections, #5  Department of Health  & Social Services,                                                                   
 #6 Department  of Health &  Social Services,  and new  fiscal                                                                  
 notes by  the Department  of Law,  the Alaska  Court  System,                                                                  
 Department of  Health &  Social Services,  and Department  of                                                                  
 Administration.                                                                                                                
                                                                                                                                
 HOUSE BILL NO. 250                                                                                                           
                                                                                                                                
      An Act relating to  missions and measures to be  applied                                                                  
      to  certain expenditures  by  the  executive  branch  of                                                                  
      state government and the  University of Alaska from  the                                                                  
      state operating budget  for the fiscal year ending  June                                                                  
      30, 2002; and providing for an effective date.                                                                            
                                                                                                                                
 DENNY DEWITT,  STAFF, REPRESENTATIVE  ELDON MULDER,  provided                                                                  
 information on HB 250.   He observed that the legislation  is                                                                  
 the result of work  by the House  Finance subcommittees.   He                                                                  
 referred to Page 40, Line 13.  He noted that provisions  were                                                                  
 added to Page  2, Lines  15 and  16.  He  explained that  the                                                                  
 language had been added to determine how consumer complaints                                                                   
 are tracked and addressed.                                                                                                     
                                                                                                                                
 Mr. DeWitt  commented  that a  few technical  amendments  are                                                                  
 needed.  He explained that the budget was not organized  in a                                                                  
 manner that  allows comparison  with the  budget bill,  which                                                                  
 has been changed in HB 250  to allow for the comparisons  and                                                                  
 formatting of the  budget bill as passed  by the House.   The                                                                  
 change is  referred  to  on Page  37,  Line 10.    There  are                                                                  
 references  in a  number  of  sections  that  would  identify                                                                  
 performance measures within the Department of Law.   He added                                                                  
 that an  additional technical  amendment would  be needed  on                                                                  
 Page 39,  Section  105,  Line  17 and  18,  noting  that  the                                                                  
 National Guard  Youth  Corps  had  changed its  name  to  the                                                                  
 Alaska Military  Youth Academy which  was not  caught in  the                                                                  
 prepared draft.                                                                                                                
                                                                                                                                
 Mr. DeWitt  advised that there  had been  other requests  for                                                                  
 changes and explained that not all were included.                                                                              
                                                                                                                                
 Representative Davies voiced  his concern with the change  to                                                                  
 all of the commissioner's  offices.  Mr. DeWitt acknowledged                                                                   
 that had been included.                                                                                                        
                                                                                                                                
 Co-Chair Mulder  MOVED  to ADOPT  the  technical amendments.                                                                   
 There being NO OBJECTION, they were adopted.                                                                                   
                                                                                                                                
 Representative Lancaster MOVED to ADOPT Amendment #2.   [Copy                                                                  
 on File].  He pointed out that it was a technical amendment.                                                                   
 There being NO OBJECTION, it was adopted.                                                                                      
                                                                                                                                
 Representative   Davies   discussed    Amendment   #3,    the                                                                  
 commissioner's offices on Page 2, Lines 15 and 16.   [Copy on                                                                  
 File].  He noted his concern that subcommittees did  not have                                                                  
 the opportunity to discuss those provisions.  Representative                                                                   
 J. Davies stated  that there  are agencies that  do not  make                                                                  
 sense.                                                                                                                         
                                                                                                                                
 Co-Chair  Mulder  argued  in  support  of  the  change.    He                                                                  
 observed that some  agencies would have  more complaints  due                                                                  
 to the issues involved.                                                                                                        
                                                                                                                                
 Representative Davies  pointed out that  most complaints  are                                                                  
 dealt with  at the  division  level within  the departments;                                                                   
 however,  others  come  to  the  commissioner's  level.    He                                                                  
 emphasized that  the intent of  missions and  measures was  a                                                                  
 "meeting of the minds" which the amendment could represent.                                                                    
                                                                                                                                
 Representative Croft  noted that  appeals  would be  separate                                                                  
 from the Department  of Revenue.   Mr. Dewitt explained  that                                                                  
 the Department of Revenue had indicated that the process  was                                                                  
 fairly easy to keep track  and helpful as a management  tool.                                                                  
 He advised  that it  is the Legislature's  responsibility  to                                                                  
 track the commissioner's level.                                                                                                
                                                                                                                                
 Co-Chair  Mulder  stated   his  support  for  retaining   the                                                                  
 provision for one  year.  He noted  that modifications  could                                                                  
 be made.   Representative  Davies reiterated  that there  has                                                                  
 not been an  opportunity to have  discussions and asked  that                                                                  
 communication be initiated with the commissioner offices.                                                                      
                                                                                                                                
 Co-Chair Mulder stressed that  the provision is new and  that                                                                  
 it is the intent of the  Committee to work with the agencies                                                                   
 for the refinement of the provisions.  He reiterated  that it                                                                  
 would be an effective tool.                                                                                                    
                                                                                                                                
 Representative Davies WITHDREW Amendment #3.                                                                                   
                                                                                                                                
 Mr. Dewitt  reviewed  Amendment #4,  a  technical amendment.                                                                   
 [Copy on  File].    He explained  that  the  amendment  would                                                                  
 affect the Department  of Military and  Veterans Affairs  and                                                                  
 that the subcommittee chair had agreed them to.                                                                                
                                                                                                                                
 Co-Chair Mulder MOVED to  ADOPT Amendment #4. There being  NO                                                                  
 OBJECTION, it was adopted.                                                                                                     
                                                                                                                                
 Representative Croft MOVED to  ADOPT Amendment #5.  [Copy  on                                                                  
 File].  Co-Chair Mulder OBJECTED.                                                                                              
                                                                                                                                
 Representative Croft spoke in  support of the amendment.   He                                                                  
 noted that it would add a new section indicating that:                                                                         
                                                                                                                                
      "The mission  of  the  Alaska State  Legislature  is  to                                                                  
      create  a  balanced   state  budget,  encourage   public                                                                  
      participation in  government  and work  to preserve  and                                                                  
      further   the   general   health,   economic  vitality,                                                                   
      educational  needs and  growth  for the  people  of  the                                                                  
      state of Alaska".                                                                                                         
                                                                                                                                
 Co-Chair Mulder  stated that he  supports the  intent of  the                                                                  
 amendment, however, suggested  that it would be difficult  to                                                                  
 hold the legislature accountable  for items that they do  not                                                                  
 have direct control over.                                                                                                      
                                                                                                                                
 Representative  Davies argued  that  the  Legislature  should                                                                  
 manage and control revenues through other measures.                                                                            
                                                                                                                                
 Representative Croft  noted  that it  is difficult  to  craft                                                                  
 missions and measures which are significant and broad  enough                                                                  
 to be  important.   He commented  on the  need  to have  open                                                                  
 discussion on the amendment and the "art of the process".                                                                      
                                                                                                                                
                                                                                                                                
 TAPE HFC 01 - 94, SIDE B                                                                                                     
                                                                                                                                
                                                                                                                                
 A roll call vote was taken on the motion.                                                                                      
                                                                                                                                
 IN FAVOR:      Bunde, Croft, Davies                                                                                            
 OPPOSED:       Harris, Hudson, Lancaster, Foster, Mulder                                                                       
                                                                                                                                
 Representatives Moses, Whitaker, and Williams were absent.                                                                     
                                                                                                                                
 The MOTION FAILED (3-5).                                                                                                       
                                                                                                                                
 Representative Davies  MOVED to  ADOPT Amendment  #6 on  Page                                                                  
 31, Line 15, deleting that  language.  He noted that  measure                                                                  
 had not  been  discussed  in  subcommittee.   Representative                                                                   
 Harris agreed  that the  language could  be deleted.    There                                                                  
 being NO OBJECTION, Amendment #6 was adopted.                                                                                  
                                                                                                                                
 Representative J.  Davies requested  that  Mr. DeWitt  repeat                                                                  
 his  previous  statement  regarding  Department  of   Natural                                                                  
 Resources.     Mr.  Dewitt   explained  that   there  was   a                                                                  
 substantive change  to the measure  of inventory.   He  added                                                                  
 that there  were  additional minor  areas  of concern.    The                                                                  
 percentage change language was removed.                                                                                        
                                                                                                                                
 Representative Hudson  MOVED to  ADOPT a  language change  on                                                                  
 Page  42,   Line  28,   deleting  "claims",   and   inserting                                                                  
 "location".  There being NO OBJECTION, it was adopted.                                                                         
                                                                                                                                
 Co-Chair Mulder pointed out  that the bill has a zero  fiscal                                                                  
 note.                                                                                                                          
                                                                                                                                
 Vice-Chair  Bunde MOVED  to  report  CSHB 250  (FIN)  out  of                                                                  
 Committee  with  individual  recommendations  and  with   the                                                                  
 accompanying zero fiscal note.  There being NO OBJECTION,  it                                                                  
 was so ordered.                                                                                                                
                                                                                                                                
 CS HB 250  (FIN) was  reported out  of Committee  with a  "do                                                                  
 pass" recommendation  and  with a  zero  fiscal note  by  the                                                                  
 House Finance Committee.                                                                                                       
                                                                                                                                
 ADJOURNMENT                                                                                                                  
                                                                                                                                
 The meeting was adjourned at 5:30 P.M.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects