Legislature(2007 - 2008)HOUSE FINANCE 519

03/22/2007 01:30 PM FINANCE


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11:51:02 AM Adjourn
01:38:38 PM Start
01:39:20 PM HB95 || HB96
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
+= HB 95 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CSHB 95(FIN) Out of Committee
+= HB 96 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CSHB 96(FIN) Out of Committee
Amendments
+ Bills Previously Heard/Scheduled TELECONFERENCED
Break at 3:00pm, Resume at 5:00pm
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 22, 2007                                                                                           
                         1:38 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Chenault called the House Finance Committee meeting                                                                    
to order at 1:38:38 PM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Karen Rehfeld, Director, Office of Management and Budget;                                                                       
David Teal, Director, Legislative Finance Division; Sharon                                                                      
Kelly, Staff, Co-Chair Chenault                                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 95     "An Act making appropriations for the operating                                                                       
          and loan program expenses  of state government, for                                                                   
          certain programs,  and to capitalize  funds; making                                                                   
          appropriations   under   art.   IX,   sec.   17(c),                                                                   
          Constitution of the  State of Alaska; and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          CSHB 95 (FIN) was REPORTED  out of Committee with a                                                                   
          "do pass" recommendation.                                                                                             
                                                                                                                                
HB 96     "An Act making appropriations for the operating                                                                       
          and  capital  expenses  of the  state's  integrated                                                                   
          comprehensive mental  health program; and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          CSHB 96 (FIN) was REPORTED out of Committee with a                                                                    
          "do pass" recommendation.                                                                                             
                                                                                                                                
          AMENDMENTS:                                                                                                           
          Department of Health and Social Services                                                                              
          Department of Labor and Workforce Development                                                                         
          Department of Law                                                                                                     
          Department of Natural Resources                                                                                       
          Department of Public Safety                                                                                           
          Department of Revenue                                                                                                 
          University of Alaska                                                                                                  
                                                                                                                                
HOUSE BILL NO. 95                                                                                                             
                                                                                                                                
     An Act making appropriations  for the operating and loan                                                                   
     program  expenses  of  state   government,  for  certain                                                                   
     programs,    and    to    capitalize    funds;    making                                                                   
     appropriations  under art. IX, sec.  17(c), Constitution                                                                   
     of the State  of Alaska; and providing  for an effective                                                                   
     date.                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 96                                                                                                             
                                                                                                                                
     An  Act  making  appropriations for  the  operating  and                                                                   
     capital    expenses    of   the    state's    integrated                                                                   
     comprehensive mental  health program; and  providing for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
 1:39:20 PM                                                                                                                   
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment HSS #10:                                                                           
                                                                                                                                
     DEPARTMENT:         Department of Health and Social                                                                        
                         Services                                                                                               
     APPROPRIATION:      Human Services Community Matching                                                                      
                         Grants                                                                                                 
     ALLOCATION:         Human Services Community Matching                                                                      
                         Grants                                                                                                 
                                                                                                                                
     ADD:                $300,000 GF                                                                                            
                                                                                                                                
     EXPLANATION:   Human Services Community  Matching Grants                                                                   
     provide  essential health and  human services  to people                                                                   
     in  need.  Since  the 1980's,  the  program  has  helped                                                                   
     distribute state,  municipal, and private  funds to non-                                                                   
     profit agencies  who deliver  meals to the  hungry, help                                                                   
     place  unemployed  residents  in jobs,  offer  emergency                                                                   
     shelters  and  crisis counseling  to  disaster  victims,                                                                   
     provide  social service contacts,  and meet  other basic                                                                   
     needs.                                                                                                                     
                                                                                                                                
     Funding for  these grants has declined in  recent years.                                                                   
     Anchorage, for example, has  lost more than 40% in state                                                                   
     human  services  grants  since 2001.  These  grants  are                                                                   
     investments  in our  state, as these  services  are much                                                                   
     cheaper   to  fund   upfront   than   deal  with   later                                                                   
     consequences  when individuals'  situations have  become                                                                   
     more serious.                                                                                                              
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative Gara explained  that the amendment updates the                                                                   
amount of money put into Human  Services Matching Grants.  He                                                                   
listed the groups that have lost funding over the years.                                                                        
                                                                                                                                
1:41:48 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  commented about  the  reduction.   He                                                                   
pointed out that the subcommittee  restored the funding level                                                                   
eliminated  by  the  administration's  proposal.    He  spoke                                                                   
against supporting the amendment.                                                                                               
                                                                                                                                
Representative  Gara proposed that  the amendment  would save                                                                   
money.   He agreed with  Representative Hawker's  analysis of                                                                   
how  the money  was  restored, preventing  it  from going  to                                                                   
faith-based initiatives.                                                                                                        
                                                                                                                                
1:42:54 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
1:43:49 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment HSS #11:                                                                           
                                                                                                                                
     DEPARTMENT:         Department of Health and Human                                                                         
                         Services                                                                                               
     APPROPRIATION:      Behavioral Health                                                                                      
     ALLOCATION:         Behavior Health Grants                                                                                 
                                                                                                                                
     ADD:                $220.0 General Fund/Mental Health                                                                      
                                                                                                                                
     EXPLANATION:  To support  the Trust's recommendation for                                                                   
     project  start-up.    Soteria-Alaska's   mission  is  to                                                                   
     assist those  with mental illness  to get back  on track                                                                   
     without relying on pharmaceutical drugs.                                                                                   
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Crawford  stated  that  the  amendment  would                                                                   
provide a way to help children  who are overmedicated.  It is                                                                   
a mental health  approach that works for some  and returns to                                                                   
the use of therapy.                                                                                                             
                                                                                                                                
Representative  Hawker  stated  that  the  concept  of  peer-                                                                   
supported services as an alternative  to a medical regime was                                                                   
explored  in subcommittee.   He  recommended adding  $100,000                                                                   
for  the service.   He  suggested a  coordinated effort  with                                                                   
API.  He assured that the Mental  Health Trust would bring it                                                                   
forward next year.                                                                                                              
                                                                                                                                
Representative Nelson added that  in every instance of school                                                                   
violence, the perpetrator had  been using psychotropic drugs.                                                                   
Class  rooms are  becoming  so large  and  many teachers  are                                                                   
relieved when children  are placed on these drugs.   She said                                                                   
she  was  nervous  about  the trend.    She  supported  other                                                                   
avenues than using drugs.                                                                                                       
                                                                                                                                
Representative Gara noted that  the Mental Health Trust Board                                                                   
recommended   funding  for  Soteria.     He  requested   that                                                                   
supporters of the program testify.                                                                                              
                                                                                                                                
Representative  Crawford   suggested  that  this   is  a  new                                                                   
approach being proposed and he encouraged support for it.                                                                       
                                                                                                                                
1:52:37 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
1:53:17 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT Amendment HSS #12:                                                                         
                                                                                                                                
     DEPARTMENT:         Health and Social Services                                                                             
     APPROPRIATION:      Public Assistance                                                                                      
     ALLOCATION:         Energy Assistance Program                                                                              
                                                                                                                                
     ADD:                $8,800.0 GF                                                                                            
                                                                                                                                
     EXPLANATION:   Funding to expand the state's  ability to                                                                   
     provide  energy  assistance  to low  income  individuals                                                                   
     throughout   the  state.     The  state's   efforts  are                                                                   
     currently capped by available  funding, leaving many low                                                                   
     income  individuals without  assistance  in meeting  the                                                                   
     high costs of home heating and electricity.                                                                                
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Nelson  explained  that the  amendment  would                                                                   
provide a  match to a federal  low income heating  assistance                                                                   
program.     She  spoke  of   an  increased  need   for  this                                                                   
assistance.    She described  how  the federal  dollars  were                                                                   
distributed in  the past.  She  referred to the gift  of fuel                                                                   
to Alaska from Venezuela.                                                                                                       
                                                                                                                                
1:57:02 PM                                                                                                                    
                                                                                                                                
Representative  Crawford commented on  the "good  times" from                                                                   
the past  two-year price  of oil.   He stressed that  passing                                                                   
Amendment HSS 12 is the "right thing to do".                                                                                    
                                                                                                                                
Representative Kelly  reiterated support for the  heroes that                                                                   
turned down the offer from Venezuela.                                                                                           
                                                                                                                                
Co-Chair  Chenault pointed  out that  it had  been a  federal                                                                   
program.   The majority  of the  increase in  cost is  due to                                                                   
ferry system  fuel, not just heating  fuel.  The  program was                                                                   
brought  forward last  year to  keep  the high  price of  oil                                                                   
costs out of the budget.  He spoke  to keeping money in state                                                                   
coffers,  noting programs  such  as Power  Cost  Equalization                                                                   
(PCE)  to bring  costs  down in  rural Alaska.    He did  not                                                                   
support the amendment.                                                                                                          
                                                                                                                                
Representative Joule  commented on a survey  in Kotzebue last                                                                   
year regarding  the effects  that huge  increases in  heating                                                                   
fuel  costs had  on  the  elders.   The  elders  had to  make                                                                   
choices between  fuel and  food.  He  maintained that  if the                                                                   
government  could  help, from  its  wealth of  resources,  it                                                                   
should.                                                                                                                         
                                                                                                                                
Representative  Kelly  added  comments  recommending  cutting                                                                   
more wood.  He thought there were other options.                                                                                
                                                                                                                                
Representative Nelson voiced gratitude  for those people that                                                                   
accepted the gift of fuel from  South America.  She noted the                                                                   
different  costs for stove  oil and  propane.  She  expressed                                                                   
gratitude for PCE  in her district.  The  average household's                                                                   
energy  consumption  in  Alaska   is  25%  electric  and  75%                                                                   
transportation  and stove  oil.   She  pointed  out that  her                                                                   
community does not  have electric heat, and  fuel prices have                                                                   
increased  three-fold.   She  related  that  people are  just                                                                   
trying to stay even.                                                                                                            
                                                                                                                                
2:07:35 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:08:16 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT Amendment HSS #13:                                                                         
                                                                                                                                
     DEPARTMENT:         Department of Health and Social                                                                        
                         Services                                                                                               
     APPROPRIATION:      Longevity Bonus Program                                                                                
     ALLOCATION:         Longevity Bonus Grants                                                                                 
                                                                                                                                
     ADD:                $29,430.0 GF                                                                                           
                                                                                                                                
     EXPLANATION:  This amendment funds the Governor's                                                                          
     request to reinstate the Longevity Bonus Program.                                                                          
     Representative Nelson explained.                                                                                           
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
2:09:28 PM                                                                                                                    
                                                                                                                                
Representative Hawker  pointed out testimony  in subcommittee                                                                   
by the Department  of Law to the effect that  reinstating the                                                                   
Longevity  Bonus  Program  will   require  further  statutory                                                                   
language.  He  maintained that not including  this program in                                                                   
the  budget is  not  a statement  against  seniors.   Further                                                                   
legislation  is pending.    He noted  that  discussion of  an                                                                   
alternative  plan  would take  place  in the  HESS  committee                                                                   
shortly.                                                                                                                        
                                                                                                                                
Representative  Gara  stated   that  the  Attorney  General's                                                                   
opinion  was that  the  statute may  or may  not  need to  be                                                                   
changed.  Currently, the way it  reads is that anyone who got                                                                   
the  longevity  bonus  last  year  gets it  this  year.    He                                                                   
maintained  that the longevity  bonus was  a promise,  as was                                                                   
Senior  Care.   The  prudent  thing  to  do  is to  pass  the                                                                   
appropriation.                                                                                                                  
                                                                                                                                
2:12:30 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:13:12 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT Amendment HSS #14:                                                                         
                                                                                                                                
DEPARTMENT:         Health and Social Services                                                                                  
APPROPIRATIONS:     Children's Services                                                                                         
ALLOCATIONS:        Infant Learning Program Grants                                                                              
                                                                                                                                
ADD:                $700.0 GF                                                                                                   
                                                                                                                                
EXPLANATION:  This will bring  the total grant increase to $1                                                                   
million above FY 07.                                                                                                            
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Nelson  explained  that the  Infant  Learning                                                                   
Program  provides  education,   therapy,  and  other  support                                                                   
services for infants  and toddlers with special  needs.  Many                                                                   
Alaskan children are not receiving  these services during the                                                                   
brief window when they are most effective.                                                                                      
                                                                                                                                
Representative Hawker stated that  the Department did receive                                                                   
an increment  in this  category and he  does not  support the                                                                   
amendment.                                                                                                                      
                                                                                                                                
2:15:05 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:15:39 PM                                                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment HSS #15:                                                                          
                                                                                                                                
     DEPARTMENT:         Health and Social Services                                                                             
     APPROPRIATION:      Departmental Support Services                                                                          
     ALLOCATION:         Office of Faith-Based and Community                                                                    
                        Initiatives                                                                                             
                                                                                                                                
     ADD:                $500.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:   Funding  for  Human  Services grants  for                                                                   
     areas  that are  ineligible  to receive  Human  Services                                                                   
     Matching grants.   Provides  match funding for  the FBCI                                                                   
     to oversee  the development  of grant programs  that are                                                                   
     consistent  with the  federal  compassion capital  grant                                                                   
     fund program.                                                                                                              
                                                                                                                                
     Add Intent language as follows:                                                                                            
                                                                                                                                
     "It  is the  intent of  the legislature  that the  grant                                                                   
     funding provided  through the Office of  Faith Based and                                                                   
     Community  Initiatives be utilized  to fund  programs in                                                                   
     regions  other  than  the three  urban  areas  receiving                                                                   
     Human Services Matching grants."                                                                                           
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Joule  explained  that  the  amendment  would                                                                   
provide funds  for grants  for areas  that are ineligible  to                                                                   
receive  Human  Services Matching  grants  -  outside of  the                                                                   
three urban areas.                                                                                                              
                                                                                                                                
2:19:33 PM                                                                                                                    
                                                                                                                                
Representative Hawker responded  that he supports the control                                                                   
determination  regarding  investing  public money  for  human                                                                   
services.  That was the idea behind  the human services block                                                                   
grants.   The grants were  designed statutorily  and targeted                                                                   
to  the larger  urban populations.   The  model is  excellent                                                                   
regarding providing services in  the communities.  He thought                                                                   
that  to add  this allocation  without the  sidebars was  not                                                                   
appropriate.                                                                                                                    
                                                                                                                                
2:22:21 PM                                                                                                                    
                                                                                                                                
Representative Gara  stated that the authority  to administer                                                                   
grant funding  rests with the  Office of the Governor  or the                                                                   
Department  of Health  and Social  Services.   He  encouraged                                                                   
further  thought on  the human  service  matching grants  for                                                                   
rural areas.                                                                                                                    
                                                                                                                                
Representative Joule expected  that it will be successful and                                                                   
accountable whenever  it happens.  Rural Alaska  is trying to                                                                   
"add value to the individual".                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:26:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment LABOR #1.                                                                               
                                                                                                                                
     DEPARTMENT:         Department of Labor and Workforce                                                                      
                         Development                                                                                            
     APPROPRIATION:      Vocational Rehabilitation                                                                              
     ALLOCATION:         Independent Living Rehabilitation                                                                      
                                                                                                                                
     ADD:                $100,000 GF                                                                                            
                                                                                                                                
     EXPLANATION:   A one-time funding increment  of $100,000                                                                   
     was  granted in FY07.   This  amendment would  establish                                                                   
     the   increment   as   part    of   Independent   Living                                                                   
     Rehabilitation's  base  budget.   These  funds would  be                                                                   
     used  to   operate  Alaska's  Centers   for  Independent                                                                   
     Living.   Centers  for  Independent  Living (CILs)  have                                                                   
     increased  the number  of disabled  and senior  Alaskans                                                                   
     served by 112% (to 3200)  in the past three years, while                                                                   
     receiving  relatively  flat   State  funding.  Costs  to                                                                   
     provide these  preventive services that keep  people out                                                                   
     of   expensive  institutions   are  rising,   stretching                                                                   
     Alaska's CILs  to the limit  of effectiveness.  In FY05,                                                                   
     State  funding comprised  only 9%  of the total  funding                                                                   
     used to  operate Alaska's successful  Independent Living                                                                   
     program. CILs  leverage State general fund  dollars, and                                                                   
     are  extremely   resourceful,  cost-effective   agencies                                                                   
     providing necessary  services on behalf of  the State of                                                                   
     Alaska.                                                                                                                    
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Co-Chair Meyer explained noted that the allocation was a                                                                        
one-time fund last year.  He pointed out that it is only 9                                                                      
percent of the Independent Living program's budget.                                                                             
                                                                                                                                
Representative Crawford noted his support for the amendment.                                                                    
                                                                                                                                
Vice Chair Stoltze WITHDREW his OBJECTION.  There being NO                                                                      
further OBJECTION, Amendment LABOR 1 was adopted.                                                                               
                                                                                                                                
2:28:26 PM                                                                                                                    
                                                                                                                                
Representative Crawford WITHDREW Amendment LABOR #2.  There                                                                     
being NO OBJECTION, it was withdrawn.                                                                                           
                                                                                                                                
2:28:52 PM                                                                                                                    
                                                                                                                                
Representative Kelly MOVED to ADOPT Amendment LABOR #3:                                                                         
                                                                                                                                
     DEPARTMENT:         Labor                                                                                                  
     APPROPRIATION:      Workforce Development                                                                                  
     ALLOCATION:         Unemployment Insurance                                                                                 
                                                                                                                                
     ADD:                $940.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:    Fund  source   adjustment  from  Federal                                                                   
     Receipts to  General Fund.   This is due to  a reduction                                                                   
     in  federal funding.   With  the closure  of the  Delta,                                                                   
     Tok,  Barrow  and  Glennallen   offices,  the  Fairbanks                                                                   
     office  can accurately  anticipate an  increase in  U.I.                                                                   
     calls  and services.   Fairbanks is  a hub for  Interior                                                                   
     Alaska and is thereby justified to fund this office.                                                                       
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Kelly spoke to  the amendment, which  relates                                                                   
to unemployment insurance call  centers.  He explained that a                                                                   
mistake was  made in the  explanation part of  the amendment:                                                                   
Barrow  should be deleted,  and Petersburg  should be  added.                                                                   
At this time  the commissioner has requested  additional time                                                                   
to work on this issue.                                                                                                          
                                                                                                                                
Representative  Kelly  WITHDREW Amendment  LABOR  #3.   There                                                                   
being NO OBJECTION, it was withdrawn.                                                                                           
                                                                                                                                
2:30:56 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment LABOR #4:                                                                      
                                                                                                                                
    DEPARTMENT:         Department of Labor & Workforce                                                                         
                         Development                                                                                            
     APPROPRIATION:      Commissioner & Administrative                                                                          
                         Services                                                                                               
     ALLOCATION:         Office of Citizenship Assistance                                                                       
                                                                                                                                
     ADD:                $117.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:   This  amendment will  ensure funding  for                                                                   
     one  full-time position  at  the Office  of  Citizenship                                                                   
     Assistance  in  Juneau  and one  full-time  position  in                                                                   
     Kodiak.   Both communities  have  a large population  of                                                                   
     immigrants  who are struggling  with citizenship  issues                                                                   
     and require the State's aide.   The office in Juneau has                                                                   
     historically aided  all immigrants throughout  the state                                                                   
     while  the Kodiak  office  has aided  Kodiak  residents.                                                                   
     Removing  the   position  from  Juneau  to   Kodiak  and                                                                   
     eliminating  the position  in Juneau  would cause  great                                                                   
     hardship  for not only  the citizens  of Juneau  but all                                                                   
     legal immigrants throughout the state.                                                                                     
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Crawford related the  history of  this budget                                                                   
item.                                                                                                                           
                                                                                                                                
2:32:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  agreed that  there was  a vacant position  in                                                                   
the Office  of Citizenship Assistance  in Juneau and  a part-                                                                   
time  position  vacant  in  Kodiak.    Representative  LeDoux                                                                   
requested  that  the position  in  Kodiak be  made  permanent                                                                   
because of a high demand for services  there.  The assumption                                                                   
was to save dollars  for the state by making  the position in                                                                   
Kodiak serve  the entire  state.  He  thought that  there was                                                                   
currently a statewide duplication of effort.                                                                                    
                                                                                                                                
Vice Chair  Stoltze said he  does not support  the amendment.                                                                   
He acknowledged the difficulties  associated with the mission                                                                   
of the Department of Labor.                                                                                                     
                                                                                                                                
Representative  Crawford pointed  out  that immigration  will                                                                   
continue.   He maintained  that the  federal government  does                                                                   
not always work to benefit the workforce.                                                                                       
                                                                                                                                
Co-Chair Meyer MAINTAINED his OBJECTION.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:37:43 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment Labor #5:                                                                      
                                                                                                                                
     DEPARTMENT:         Department of Labor and Workforce                                                                      
                         Development                                                                                            
     APPROPRIATION:      Vocational Rehabilitation                                                                              
     ALLOCATION:         Independent Living Rehabilitation                                                                      
                                                                                                                                
     ADD:                $94,000 GF                                                                                             
                                                                                                                                
     EXPLANATION:   This increment  will support  interpreter                                                                   
     referral services  for Alaskans  who are deaf  and hard-                                                                   
     of-hearing.    This  program  allows deaf  and  hard  of                                                                   
     hearing  Alaskans, whose  primary  language is  American                                                                   
     Sign  Language, to  secure and  maintain employment  and                                                                   
     receive  other  necessary  medical and  legal  services.                                                                   
     The  program has  been flat-funded  for  over 17  years,                                                                   
     while the  deaf population  is burgeoning in  areas like                                                                   
     the  Kenai  Peninsula,  where   no  interpreter  program                                                                   
     currently  exists.   In areas  where services  currently                                                                   
     exist,  the demand  has skyrocketed.    For example,  in                                                                   
     Southeast   Alaska   the   number   of   sign   language                                                                   
     interpreter  requests filled  grew from  182 in  FY04 to                                                                   
     464 in FY06, an increase  of 155%.  This increment would                                                                   
     allow   more  Alaskans   to  access   this  service   by                                                                   
     increasing  funding to  current  grantees and  providing                                                                   
     for a new program in Homer.                                                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Crawford  maintained that the  amendment would                                                                   
result  in savings  "down the  road".  The  program has  been                                                                   
flat funded for  the past 17 years.  He noted  the absence of                                                                   
deaf interpreters  in the state.  He maintained  that a grant                                                                   
would be more efficient than a state operation.                                                                                 
                                                                                                                                
Co-Chair  Meyer  acknowledged  that interpreters  are  served                                                                   
through grants  and that the area  served would be  the Kenai                                                                   
Peninsula  area.    The  subcommittee   questioned  if  local                                                                   
community groups  were being maximized.  He  wondered why the                                                                   
federal  government  is  not   involved  since  there  is  an                                                                   
Americans with Disabilities Act  requirement.  The intent was                                                                   
to   look  into   federal   funding  and   local   non-profit                                                                   
opportunities.                                                                                                                  
                                                                                                                                
Representative  Gara  noted  that  the  requirements  of  the                                                                   
Americans with  Disability Act  are incumbent upon  the state                                                                   
regardless of federal funding.                                                                                                  
                                                                                                                                
Representative  Crawford stressed  that  federal dollars  are                                                                   
leveraged heavily  by Independent Living Rehabilitation.   He                                                                   
continued to advocate for the amendment.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:44:36 PM                                                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment Labor #6:                                                                         
                                                                                                                                
    DEPARTMENT:         Labor and Workforce Development                                                                         
     APPROPRIATION:      Workforce Development                                                                                  
     ALLOCATION:         Kotzebue Technical Center                                                                              
                         Operations Grant                                                                                       
                                                                                                                                
     ADD:                $300.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:   The Governor  requested general  funds to                                                                   
     maintain the operating grant  for the Kotzebue Technical                                                                   
     Center at the same level  as FY07.  This is necessary to                                                                   
     replace   one-time   fund   sources  utilized   in   the                                                                   
     development   of  the  FY07   operating  budget.     The                                                                   
     subcommittee reduced the  Governor's request.  This will                                                                   
     restore the  Kotzebue Technical Center  Operations Grant                                                                   
     to the Governor's requested level.                                                                                         
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Joule  noted that the $300,000  addition would                                                                   
help   individuals  to   receive  training   and  to   become                                                                   
independent.   He stressed  the success  rate and noted  that                                                                   
they  serve   200  full-time   students  and  500   part-time                                                                   
students.   He observed the  support of village  and regional                                                                   
organizations.                                                                                                                  
                                                                                                                                
Co-Chair  Meyer  observed  that the  governor's  request  was                                                                   
originally for  $600,000.  He  noted that federal  funds have                                                                   
been  reduced.     The  Kotzebue Technical  Center  primarily                                                                   
trains workers for  the Red Dog mine.  He predicted  that the                                                                   
pipeline would expand the need  for training.  The intent was                                                                   
to   match   private  contributions.   He   emphasized   that                                                                   
additional  funds are received  through vocational  education                                                                   
program receipts.                                                                                                               
                                                                                                                                
2:51:16 PM                                                                                                                    
                                                                                                                                
Representative Joule stressed  that there are other important                                                                   
programs.   There is currently  a health program  that trains                                                                   
personal   care  attendants   and  a   nursing  program.   He                                                                   
emphasized  that  the Center  provides  a workforce  for  the                                                                   
area.                                                                                                                           
                                                                                                                                
Representative   Gara   noted  previous   arguments   against                                                                   
providing funding  for those  that do not  want to  work, and                                                                   
emphasized  that  this  program  provides  opportunities  for                                                                   
people  that  want to  work  and  saves  the state  funds  by                                                                   
allowing them to become working members.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault                                                                        
                                                                                                                                
Representative Foster was not present for the vote.                                                                             
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:56:10 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze MOVED to ADOPT Amendment LAW #1:                                                                             
                                                                                                                                
     DEPARTMENT:         Law                                                                                                    
     APPROPRIATION:      Civil Division                                                                                         
     ALLOCATION:         Labor & State Affairs                                                                                  
                                                                                                                                
     ADD:                $80,000 GF                                                                                             
                                                                                                                                
     EXPLANATION:        Employment Law Attorney                                                                                
                                                                                                                                
                            st                                                                                                  
     The Governor's  March 1  amendments reduced  funding for                                                                   
     ½ Employment  Law attorney  position within the  Labor &                                                                   
     State Affairs  component.  Due to  scheduling conflicts,                                                                   
     the  subcommittee did  not  discuss the  impact of  this                                                                   
     reduction to the component.                                                                                                
     After  consultation  with   the  Court  System  and  the                                                                   
     Legislative  Legal Service  division, it was  determined                                                                   
     that  this  position  is  used to  defend  the  Judicial                                                                   
     System  and  its  employees  in non-tort  cases.    This                                                                   
     position  also defends  the Legislative  Branch and  its                                                                   
     employees  in non-tort cases.   Removal of  this funding                                                                   
     would eliminate  this service  and this amendment  would                                                                   
     restore funding for these functions.                                                                                       
                                                                                                                                
     In  addition,  this  amendment  provides  the  following                                                                   
     intent language:                                                                                                           
                                                                                                                                
          It  is  the  intent  of the  legislature  that  the                                                                   
          Department  of Law continue to provide  the current                                                                   
          level of representation  for non-tort claims to the                                                                   
          Alaska Court  System, the Alaska  Judicial Council,                                                                   
          and the Alaska Commission  on Judicial Conduct, the                                                                   
          Alaska   Legislature  and   to  the  officers   and                                                                   
          employees of those entities.                                                                                          
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Vice Chair Stoltze spoke in support of the amendment.  He                                                                       
noted that the administration supports the amendment.  A                                                                        
half-time Employment Law attorney would be added.                                                                               
                                                                                                                                
Representative Gara suggested the funds would be better                                                                         
spent to support the Office of Children Services.                                                                               
                                                                                                                                
Co-Chair Meyer WITHDREW his OBJECTION.                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
RECESSED:  2:59:52 PM                                                                                                         
                                                                                                                                
RECONVENED:  5:08:42 PM                                                                                                       
                                                                                                                                
Vice Chair Stoltze MOVED to ADOPT Amendment LAW #2.                                                                             
                                                                                                                                
     DEPARTMENT:         Law                                                                                                    
     APPROPRIATION:      Administration and Support                                                                             
     ALLOCATION:         Administrative Services                                                                                
                                                                                                                                
     ADD:                $3,000                                                                                                 
                                                                                                                                
     DEPARTMENT:         Law                                                                                                    
     APPROPRIATION:      Criminal Division                                                                                      
     ALLOCATION:         Criminal Justice Litigation                                                                            
                                                                                                                                
     ADD:                $36,200                                                                                                
                                                                                                                                
     DEPARTMENT:         Law                                                                                                    
     APPROPRIATION:      Civil Division                                                                                         
     ALLOCATION:         Timekeeping and Litigation Support                                                                     
                                                                                                                                
     ADD:                $60,500                                                                                                
                                                                                                                                
     FUNDING SOURCE:     General Funds                                                                                          
                                                                                                                                
     EXPLANATION:        Parking Compensation for Anchorage                                                                     
     employees                                                                                                                  
                                                                                                                                
     The House Finance subcommittee  recommended that funding                                                                   
     for  at least ½  of the  originally requested  increment                                                                   
     for parking spaces for Anchorage employees.                                                                                
                                                                                                                                
     The Department  of Law is the only department  that does                                                                   
     not  provide  parking for  its  Anchorage  staff.   This                                                                   
     amendment,  if adopted,  should  relieve some  financial                                                                   
     burden,  especially  to   the  department's  lower  paid                                                                   
     staff.                                                                                                                     
                                                                                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Vice  Chair  Stoltze  explained   that  the  amendment  would                                                                   
provide for  parking for employees  of the Department  of Law                                                                   
in Anchorage.                                                                                                                   
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
5:12:33 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  announced that  Amendment DNR #1  had been                                                                   
withdrawn.                                                                                                                      
                                                                                                                                
Representative  Crawford  asked  why  Amendment  DNR  #1  was                                                                   
withdrawn and what that would  do to the seed potato program.                                                                   
Representative Kelly  responded that it  would be the  end of                                                                   
the program.                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze noted that  there still is a  seed potato                                                                   
program  located   in  the  Department  of   Revenue's  plant                                                                   
materials center.                                                                                                               
                                                                                                                                
Representative  Kelly  reported  that  without  this  funding                                                                   
there  will  be  no  exporting   of  seed  potato  to  China.                                                                   
Representative  Crawford thought  there  would be  a loss  of                                                                   
dollars  down the road.   He  expressed dissatisfaction  with                                                                   
the decision.   Representative Kelly spoke to  the difficulty                                                                   
in  maintaining the  level  of support.    He also  expressed                                                                   
regret.                                                                                                                         
                                                                                                                                
Co-Chair   Chenault   related   his  understanding   of   the                                                                   
amendment.   The actual  funding  is not money  for the  seed                                                                   
potato  program  and  was  not   intended  for  the  program.                                                                   
Representative Kelly reiterated  that it is not in the budget                                                                   
- it was a department mistake.   Co-Chair Chenault summarized                                                                   
that the amendment has no effect  on the seed potato program.                                                                   
                                                                                                                                
5:17:10 PM                                                                                                                    
                                                                                                                                
Representative Kelly MOVED to ADOPT Amendment DNR #2:                                                                           
                                                                                                                                
     DEPARTMENT:         Natural Resources                                                                                      
     APPROPRIATION:      Resource Development                                                                                   
    ALLOCATION:         Forest Management & Development                                                                         
                                                                                                                                
     ADD:                $120.0 (One Time Increment)                                                                            
                                                                                                                                
     FUNDING SOURCE:     $60.0      General Funding                                                                             
                         $60.0      Timber Receipts                                                                             
                                                                                                                                
     EXPLANATION:   This  amendment  restores the  Governor's                                                                   
     request  for  funding  to  ensure  continuation  of  the                                                                   
     statewide  forest inventory  program.  The  subcommittee                                                                   
     considered  this  request  carefully and  suggested  the                                                                   
     position  be funded  through the  CIP process.  However,                                                                   
     DNR has made  compelling arguments to the  need for this                                                                   
     position.    Therefore,  I  would  offer  the  following                                                                   
     intent   language  be  adopted   by  the  full   Finance                                                                   
     committee:                                                                                                                 
                                                                                                                                
     It is  the intent that  as the timber industry  develops                                                                   
     in Interior  Alaska, and  forest management  requires an                                                                   
     ongoing timber  inventory program, and as  the amount of                                                                   
     timber harvest increases,  funding of this position will                                                                   
     be  funded with  Timber  Receipts or  Receipt  Supported                                                                   
     Services.                                                                                                                  
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative Kelly  explained that in the  timber inventory                                                                   
program  there  is  a  CIP  process.    The  amendment  would                                                                   
continue the funding  of the Forest Management  & Development                                                                   
position.  He spoke in support of the amendment.                                                                                
                                                                                                                                
Representative Gara said he has no problem with this                                                                            
amendment.                                                                                                                      
                                                                                                                                
Vice Chair Stoltze WITHDREW his OBJECTION.  There being NO                                                                      
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
5:19:39 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT Amendment DPS #1:                                                                          
                                                                                                                                
     DEPARTMENT:         Public Safety                                                                                          
     APPROPRIATION:      Council on Domestic Violence and                                                                       
                         Sexual Assault                                                                                         
     ALLOCATION:         Council on Domestic Violence and                                                                       
                         Sexual Assault                                                                                         
                                                                                                                                
     ADD:                $100.0 GF                                                                                              
                                                                                                                                
     EXPLANATION:  Restores a funding increase for Shelter                                                                      
     Grants in the Governor's original budget that was                                                                          
     removed in subcommittee.                                                                                                   
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative  Nelson  addressed  the reasoning  behind  the                                                                   
amendment,  which restores  money  for Shelter  Grants.   She                                                                   
spoke of increased costs to the shelters.                                                                                       
                                                                                                                                
Vice Chair  Stoltze said he would  be happy to work  with the                                                                   
subcommittee  on this  topic.   He  spoke in  support of  the                                                                   
recommendations of the administration.                                                                                          
                                                                                                                                
Vice Chair Stoltze MAINTAINED his OBJECTION.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED:  Stoltze,  Thomas,  Foster,  Hawker,  Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
5:23:33 PM                                                                                                                    
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment DPS #2:                                                                        
                                                                                                                                
     DEPARTMENT:         Public Safety                                                                                          
     APPROPRIATION:      Statewide Support                                                                                      
     ALLOCATION:         Alcohol Related Transport and                                                                          
                         Mitigation                                                                                             
                                                                                                                                
     ADD:                $300.0 GF                                                                                              
                                                                                                                                
     DELETE:             n/a                                                                                                    
                                                                                                                                
     FUNDING SOURCE:     n/a                                                                                                    
                                                                                                                                
     EXPLANATION:   Replaces lost federal grant  funding with                                                                   
     general  funds.    These  funds  will be  used  for  the                                                                   
     Fairbanks  Native  Association (FNA)  Community  Service                                                                   
     Patrol (CSP).                                                                                                              
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative  Crawford explained  that the amendment  would                                                                   
restore  money  that  was  cut   from  the  Fairbanks  Native                                                                   
Association Community  Service Patrol.   He argued  that this                                                                   
allocation would save money in the long run.                                                                                    
                                                                                                                                
Vice Chair  Stoltze disagreed that  this item was a  cut, but                                                                   
rather new money.   He was surprised by the  amendment, which                                                                   
did not  come up in subcommittee.   He explained  the funding                                                                   
for such programs statewide.                                                                                                    
                                                                                                                                
Representative  Crawford  clarified  that  it  is a  loss  in                                                                   
federal  funds.    He  spoke   strongly  in  support  of  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Vice Chair Stoltze MAINTAINED his OBJECTION.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Joule, Nelson                                                                                         
OPPOSED:  Stoltze,  Thomas,  Foster,  Hawker,  Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
5:30:19 PM                                                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment DPS #3:                                                                           
                                                                                                                                
     DEPARTMENT:         Public Safety                                                                                          
     APPROPRIATION:      Statewide Support                                                                                      
     ALLOCATION:         Alaska Wing Civil Air Patrol                                                                           
                                                                                                                                
     ADD:                N/A                                                                                                    
                                                                                                                                
     FUNDING SOURCE:     N/A                                                                                                    
                                                                                                                                
     INTENT:    It is  the  intent  of the  Legislature  that                                                                   
     should  the Civil  Air Patrol not  utilize the  Kotzebue                                                                   
     Civil Air Patrol hanger by  August 1, 2007 for Civil Air                                                                   
     Patrol  activities  on  a  full  time  basis,  that  the                                                                   
     Department  of Public  Safety  work with  the Civil  Air                                                                   
     Patrol to  surplus the hanger and transfer  the facility                                                                   
     to the  Northwest Arctic  Borough for search  and rescue                                                                   
     operations.                                                                                                                
                                                                                                                                
     EXPLANATION:   The hanger was  built with a  state grant                                                                   
     for  the   purpose  of   supporting  Civil   Air  Patrol                                                                   
     activities  in the Northwest  Arctic Borough.   However,                                                                   
     the Civil Air Patrol has  moth-balled the facility.  The                                                                   
     Northwest  Arctic Borough would  like to take  advantage                                                                   
     of   the  facility   for  staging   search  and   rescue                                                                   
     operations.                                                                                                                
                                                                                                                                
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
Representative Joule  explained that the amendment  would not                                                                   
cost anything.  He related the  history of the Kotzebue Civil                                                                   
Air Patrol hanger.   The request is to transfer  the facility                                                                   
to the Northwest Arctic Borough.                                                                                                
                                                                                                                                
Co-Chair Chenault opined that the operating budget is not                                                                       
the place to bring up this issue.  He suggested another                                                                         
mechanism.                                                                                                                      
                                                                                                                                
Representative Joule stated that the action needs to begin                                                                      
now.  Representative Joule WITHDREW Amendment DPS #3.                                                                           
                                                                                                                                
5:34:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment Revenue #1:                                                                          
                                                                                                                                
     DEPARTMENT:         Revenue                                                                                                
     APPROPRIATION:      Child Support Services                                                                                 
     ALLOCATION:         Child Support Services                                                                                 
                                                                                                                                
     ADD:                $1,025,600                                                                                             
    FUNDING SOURCE:     1156 Receipt Supported Services                                                                         
                                                                                                                                
     ADD:                $132,900                                                                                               
    FUNDING SOURCE:     1016 Federal Incentive Receipts                                                                         
                                                                                                                                
     DELETE:             ($1,158,500)                                                                                           
     FUNDING SOURCE:     1002 Federal Receipts                                                                                  
                                                                                                                                
     ADD CARRY FORWARD LANGUGAGE:                                                                                               
     This   appropriation   includes   the   unexpended   and                                                                   
     unobligated  balance on June  30, 2007, of  the receipts                                                                   
     collected  under  the  state's share  of  child  support                                                                   
     collections for reimbursement  of the cost of the Alaska                                                                   
     temporary  assistance  program   as  provided  under  AS                                                                   
     25.27.120.                                                                                                                 
                                                                                                                                
     EXPLANATION:                                                                                                               
     In  the  Governor's  FY 08  budget  submission,  a  fund                                                                   
     source  switch  was  made  to hold  harmless  the  Child                                                                   
     Support  Services  Division   from  the  effect  of  the                                                                   
     federal  Deficit Reduction  Act of  2005.  Beginning  in                                                                   
     FY2008, Child  Support Services  will no longer  be able                                                                   
     to use federal  incentive receipts funding  as match for                                                                   
     other  federal  funds.  The   House  Finance  substitute                                                                   
     reversed this  fund source  switch when it  reversed the                                                                   
     PERS fund source adjustments on a statewide basis.                                                                         
                                                                                                                                
     In order to meet the 34%  state match requirement of the                                                                   
     Child Support  Enforcement program  and cover  the costs                                                                   
     that  are  ineligible  for  federal  reimbursement,  the                                                                   
     division  is  asking  for  a  fund  source  change  from                                                                   
     federal  receipts to state  receipt supported  services,                                                                   
     and  an  adjustment  to federal  incentive  receipts  to                                                                   
     match estimated  collections of  that fund source.   The                                                                   
     carry-forward  language in  this amendment will  provide                                                                   
     the  division with  sufficient state  revenues to  match                                                                   
     the federal funding for this program.                                                                                      
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Co-Chair Chenault  explained that  this amendment  relates to                                                                   
the  first three  PERS  amendments, but  it  also includes  a                                                                   
carry forward section.   The fund source switch  was reversed                                                                   
when the  PERS adjustments  were made  on a statewide  basis.                                                                   
The  request is  to  replace  federal receipts  with  federal                                                                   
supported  services  and  federal incentive  receipts.    The                                                                   
change is necessary due to the  Federal Deficit Reduction Act                                                                   
of 2005.  Carry  forward language will allow  the division to                                                                   
have sufficient state revenues  to match the federal funding.                                                                   
There is no GF in this request  and the department needs this                                                                   
fund source reinstated to run their program.                                                                                    
                                                                                                                                
Representative  Gara asked  if  the $1,025,600  from  Receipt                                                                   
Supported Services is federal money.                                                                                            
                                                                                                                                
5:36:13 PM                                                                                                                    
                                                                                                                                
Ms.  Kelly  explained  that Receipt  Supported  Services  are                                                                   
state funds,  but they are  collected when the  Child Support                                                                   
Services  program is  run.   Representative  Gara asked  what                                                                   
would happen  if this increment  was not granted.   Ms. Kelly                                                                   
related that the Department of  Revenue has advised that this                                                                   
money  is necessary  in order  to meet the  34 percent  state                                                                   
required match for the Child Support Enforcement program.                                                                       
                                                                                                                                
Vice Chair  Stoltze WITHDREW his  OBJECTION.  There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
5:37:26 PM                                                                                                                    
                                                                                                                                
Representative Kelly MOVED to ADOPT Amendment U of A #1:                                                                        
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         SW Budget Reductions and Additions                                                                     
                                                                                                                                
     ADD:                $3,629.4                                                                                               
                                                                                                                                
     FUNDING SOURCE:     General Funds - ORP savings                                                                            
                                                                                                                                
     EXPLANATION:  This amendment  corrects the unintended UA                                                                   
     budget shortfall created  when the retirement fixes were                                                                   
     implemented  in  CSHB95.    The revenue  to  cover  this                                                                   
     amendment  could  be  found   by  applying  the  general                                                                   
     funding saving from UA's  ORP program resulting from the                                                                   
     TRS retirement  fix. There  are three components  to the                                                                   
     $3,629.4 shortfall. They  are PERS, TRS and ORP.  In all                                                                   
     cases, UA's  budget was reduced  by an amount  more than                                                                   
     the savings UA will realize.                                                                                               
                                                                                                                                
     PERS - GF Budget   reduced  $18,767.2  from   Governor's                                                                   
     level                                                                                                                      
               UA savings realized $16,765.7                                                                                    
               Shortfall $2,001.5                                                                                               
                                                                                                                                
     TRS - GF  Budget  reduced  by  $13,267.3  plus  $5,845.1                                                                   
     total $19,112.4 from Governor's level                                                                                      
               UA savings realized $13,267.3 plus $4,699.5                                                                      
     total $17,966.8                                                                                                            
               Shortfall $1,145.6                                                                                               
                                                                                                                                
     ORP - GF  Budget  reduced   by  $4,988.8  plus  $2,411.4                                                                   
     total $7,400.2 from Governor's level                                                                                       
               UA savings realized $4,988.8 plus $1,929.1                                                                       
     total $6,917.9                                                                                                             
               Shortfall $482.3                                                                                                 
                                                                                                                                
     Unlike  PERS and  TRS, the  ORP  reduction represents  a                                                                   
     true  GF   savings  ($6.917.9   million).     The  House                                                                   
     subcommittee intended  to use ORP savings  to cover UA's                                                                   
     fixed  costs, and  the  CS reflects  the  subcommittee's                                                                   
     intent  by  applying 2.5  million  from  ORP savings  to                                                                   
     those  costs.     However,  the  Subcommittee   did  not                                                                   
     anticipate that the PERS/TRS  fix in the CS would remove                                                                   
     more money  than the university would save.   The result                                                                   
     is the CS  will not allow the university  to cover fixed                                                                   
     costs.   The net  shortfall will  be $3.6 million  below                                                                   
     those costs.  Moreover, if  the university is allowed to                                                                   
     keep  the  corresponding  savings the  legislature  will                                                                   
     still be $1.27 million to the good from ORP money.                                                                         
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Kelly explained  how it  related to  the PERS                                                                   
fix,  which had  an  effect on  the  source  of the  savings.                                                                   
Using  the  current  figures,  the University  would  end  up                                                                   
short.   He informed the committee  that he would  wait until                                                                   
the rate was determined and then offer the amendment again.                                                                     
                                                                                                                                
Representative Kelly WITHDREW Amendment U of A #1.                                                                              
                                                                                                                                
5:39:20 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment U of A #2:                                                                         
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Budget reduction/additions-system-                                                                     
                         wide                                                                                                   
                                                                                                                                
     ADD:                $35,662.7 Total funds                                                                                  
                                                                                                                                
     FUNDING SOURCE:     $14,708.8 General Funds                                                                                
                         $20,953.9 Non-General Funds                                                                            
                                                                                                                                
     EXPLANATION:    This  amendment  would  fully  fund  the                                                                   
     Priority  Program  Enhancement  and  Growth  program  as                                                                   
     requested by the Board of  Regents.  The entities within                                                                   
     this  program are  important to  continue the growth  of                                                                   
     workforce  development and  research  that will  benefit                                                                   
     the  state.   The  three  priority  program  enhancement                                                                   
     areas  are   Preparing  Alaskans  for   Jobs  (providing                                                                   
     additional funding  for high demand programs  in health,                                                                   
     engineering  and construction);  Research Investment  in                                                                   
     biomedical    and    health    research,    engineering,                                                                   
     transportation   and  energy   and  climate  impact   on                                                                   
     Alaska's Natural Resources;  and improved accountability                                                                   
     in student success and college readiness.                                                                                  
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative  Gara explained that  the amendment is  at the                                                                   
request of the regents.  He gave  several reasons for needing                                                                   
the amendment:  to expand  teaching in  areas of high  demand                                                                   
for jobs  that are not being  filled; to help  the university                                                                   
continue the growth of research  that will benefit the state.                                                                   
                                                                                                                                
Co-Chair Chenault  recalled the  discussions in  subcommittee                                                                   
regarding lack  of support by  the governor for the  Board of                                                                   
Regent's requests.   He wished  there was a board  of regents                                                                   
for K-12 education.  He spoke against the amendment.                                                                            
                                                                                                                                
Vice Chair Stoltze MAINTAINED his OBJECTION.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara, Nelson                                                                                                
OPPOSED:  Stoltze,  Thomas,  Foster,  Hawker,  Kelly,  Meyer,                                                                   
          Chenault, Joule                                                                                                       
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
5:44:47 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault related  that  the budget  process is  not                                                                   
over, and  he listed the other  pending pieces of  the budget                                                                   
process.   He  thanked   the   finance   committee  and   the                                                                   
subcommittee members for their work.                                                                                            
                                                                                                                                
5:46:07 PM                                                                                                                    
                                                                                                                                
Representative  Gara   commented  on  the   committee  budget                                                                   
process.  He suggested that many  important points were made.                                                                   
He hoped for  more success on  the House Floor.  He  spoke to                                                                   
the lack of  vision on such a  large budget.  He  opined that                                                                   
there is a great deal of waste  in the budget.  As an example                                                                   
he cited the $100 million Knik Arm Crossing.                                                                                    
                                                                                                                                
5:49:02 PM                                                                                                                    
                                                                                                                                
Representative  Gara  emphasized  that  he would  have  spent                                                                   
money  on  several  items  that were  not  included  in  this                                                                   
budget.   He  would  not have  spent over  $1  million on  an                                                                   
advisory  vote.  He  said he  would have  returned the  Healy                                                                   
Road money  back to  the budget.   He  opined that those  who                                                                   
were  not born  to  privilege  were left  out  of the  budget                                                                   
process, listing early childhood  education, foster care, low                                                                   
income college funding as examples.   He noted, however, that                                                                   
he is only one out of forty votes.                                                                                              
                                                                                                                                
5:51:27 PM                                                                                                                    
                                                                                                                                
Representative  Joule  voiced  appreciation for  the  comment                                                                   
made about  future expectations  about  tough decisions.   He                                                                   
suggested  "not putting  all of  our eggs in  a gas  pipeline                                                                   
basket."   He spoke  in support of  a long-term fiscal  plan.                                                                   
He agreed that  this is the first step in the  budget process                                                                   
this session.  He agreed that there was good debate.                                                                            
                                                                                                                                
5:54:39 PM                                                                                                                    
                                                                                                                                
Representative  Foster MOVED  to  REPORT CSHB  95 (FIN)  from                                                                   
committee   with  individual   recommendations,  and   giving                                                                   
Legislative Legal  and Legislative  Finance the authority  to                                                                   
make any necessary technical and conforming amendments.                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT CSHB 96 from committee                                                                   
with  individual  recommendations,   and  giving  Legislative                                                                   
Legal  and Legislative  Finance  the  authority  to make  any                                                                   
necessary technical and conforming amendments.                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Chenault  noted  that the  Committee  would  recess                                                                   
until the Committee Substitute was received and checked.                                                                        
                                                                                                                                
RECESSED: 5:57:26 PM                                                                                                          
                                                                                                                                
RECONVENED: 11:51:02 AM                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further action, the meeting  was adjourned at                                                                   
11:52 AM.                                                                                                                       

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