Legislature(2013 - 2014)HOUSE FINANCE 519

03/11/2014 01:30 PM FINANCE


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01:32:03 PM Start
01:32:12 PM HB266 || HB267
01:34:05 PM Amendments
03:38:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 266 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 267 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Amendments
-- No Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 11, 2014                                                                                            
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:03 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Austerman called the House Finance Committee                                                                           
meeting to order at 1:32 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 266    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 266 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 267    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 267 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HOUSE BILL NO. 266                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain  programs,   capitalizing  funds,   and  making                                                                    
     reappropriations; making appropriations  under art. IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional budget reserve fund."                                                                                   
                                                                                                                                
HOUSE BILL NO. 267                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health program."                                                                                      
                                                                                                                                
1:32:12 PM                                                                                                                    
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 1:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Representative Austerman                                                                                    
                                                                                                                                
     DEPARTMENT:         Department     of     Environmental                                                                    
     Conservation                                                                                                               
     APPROPRIATION:      Air Quality                                                                                            
     ALLOCATION:         Air Quality                                                                                            
                                                                                                                                
     ADD: $160,600,  In-State Natural  Gas Pipeline  Fund --                                                                    
     Interagency (1232)                                                                                                         
     DELETE:   $160,600, In-State Natural  Gas Pipeline Fund                                                                    
     (1229)                                                                                                                     
                                                                                                                                
     DEPARTMENT:         Department     of     Environmental                                                                    
     Conservation                                                                                                               
     APPROPRIATION:      Water                                                                                                  
     ALLOCATION:         Water Quality                                                                                          
                                                                                                                                
     ADD: $222,300,  In-State Natural  Gas Pipeline  Fund --                                                                    
     Interagency (1232)                                                                                                         
     DELETE:   $222,300, In-State Natural  Gas Pipeline Fund                                                                    
     (1229)                                                                                                                     
                                                                                                                                
     DEPARTMENT:         Department of Law                                                                                      
     APPROPRIATION:      Civil Division                                                                                         
     ALLOCATION:         Regulatory Affairs Public Advocacy                                                                     
                                                                                                                                
     ADD: $136,800,  In-State Natural  Gas Pipeline  Fund --                                                                    
     Interagency (1232)                                                                                                         
     DELETE:   $136,800, In-State Natural  Gas Pipeline Fund                                                                    
     (1229)                                                                                                                     
                                                                                                                                
    DEPARTMENT:         Department of Natural Resources                                                                         
     APPROPRIATION:      Administration & Support                                                                               
     ALLOCATION:         State     Pipeline    Coordinator's                                                                    
     Office                                                                                                                     
                                                                                                                                
     ADD: $670,300,  In-State Natural  Gas Pipeline  Fund --                                                                    
     Interagency (1232)                                                                                                         
     DELETE:   $670,300, In-State Natural  Gas Pipeline Fund                                                                    
     (1229)                                                                                                                     
                                                                                                                                
     DEPARTMENT:         Department of Transportation &                                                                         
     Public Facilities                                                                                                          
     APPROPRIATION:      Design,       Engineering       and                                                                    
     Construction                                                                                                               
     ALLOCATION:         Statewide Design and Engineering                                                                       
     Services                                                                                                                   
                                                                                                                                
     ADD: $692,900,  In-State Natural  Gas Pipeline  Fund --                                                                    
     Interagency (1232)                                                                                                         
     DELETE:   $692,900, In-State Natural  Gas Pipeline Fund                                                                    
     (1229)                                                                                                                     
                                                                                                                                
     EXPLANATION:                                                                                                               
     Code  1232 is  a newly  created code  designed to  meet                                                                    
     accounting  requirements for  separation of  the Alaska                                                                    
     Gasline  Development  Corporation  (AGDC)  budget  from                                                                    
     money spent by  other agencies at the  request of AGDC.                                                                    
     This is one of two  fund codes that access the in-state                                                                    
     pipeline  fund established  with  the  adoption of  HB4                                                                    
    during the 2013 session. (The other is code 1229.)                                                                          
                                                                                                                                
     Fund  code  1229 should  be  used  only to  record  the                                                                    
     operating budget of the AGDC.  Code 1232 should be used                                                                    
     only to record AGDC's  purchases of services from other                                                                    
     state agencies.  Agencies can spend  code 1232  only as                                                                    
     specified in  a reimbursable services  agreement signed                                                                    
     by  the corporation.  Funding for  RSAs  will be  drawn                                                                    
     from  the  fund  without  appearing  in  the  operating                                                                    
     budget of AGDC.                                                                                                            
                                                                                                                                
     The amendment has  no impact other than  to ensure that                                                                    
     AGDC  has control  over pipeline  funds spent  by other                                                                    
     agencies.                                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Austerman explained  that Amendment  1 provided  a                                                                    
technical change  clarifying the Alaska  Gasline Development                                                                    
Corporation (AGDC) budget by adding  a new code that allowed                                                                    
for better tracking of funds.                                                                                                   
                                                                                                                                
Representative   Gara   appreciated  the   explanation.   He                                                                    
understood  that  the  technical  code  did  not  alter  the                                                                    
spending requirements.                                                                                                          
                                                                                                                                
Co-Chair Austerman  concurred. He stated that  the technical                                                                    
amendment improved the AGDC accounting system.                                                                                  
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 1 was adopted.                                                                          
                                                                                                                                
1:34:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 2:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps.   Neuman,    Austerman,   Stoltze,                                                                    
     Munoz, Holmes, T. Wilson, Edgmon, Thompson                                                                                 
                                                                                                                                
     DEPARTMENT:         Administration                                                                                         
     APPROPRIATION:      Centralized          Administrative                                                                    
     Services                                                                                                                   
     ALLOCATION:         Office of the Commissioner                                                                             
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of   Administration  coordinate   with  the                                                                    
     state's Congressional Delegation;  Alaska Mental Health                                                                    
     Trust   Authority;   the    Department   of   Commerce,                                                                    
     Community, and Economic  Development; the Department of                                                                    
     Education and  Early Development and  school districts;                                                                    
     telecommunication  service  providers;  other  affected                                                                    
     entities  of  the  State  of   Alaska;  and  any  other                                                                    
     relevant stakeholder organization to:                                                                                      
     1.   Determine  the  existing broadband  resources  and                                                                    
     capacity in rural Alaska                                                                                                   
     2.   Identify    cost   sharing    and   cost    saving                                                                    
     opportunities                                                                                                              
     a.   Through sharing existing broadband resources                                                                          
     b.   Through  partnering  for  expansion  of  broadband                                                                    
     resources                                                                                                                  
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of Administration  provide recommendations,                                                                    
     including possible  legislation, and findings  based on                                                                    
     the results  of their  coordination and submit  them to                                                                    
     the House and Senate  Finance Committees by January 15,                                                                    
     2015.                                                                                                                      
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of  Administration,  Enterprise  Technology                                                                    
     Services,  prepare  a  five-year  statewide  plan  that                                                                    
     includes   an  implementation   policy  for   statewide                                                                    
     information   technology   systems,   including   their                                                                    
     procurement and support, which  results in cost savings                                                                    
     and  will serve  the  needs of  state executive  branch                                                                    
     departments, not  including state corporations.   It is                                                                    
     the intent  of the  legislature that the  Department of                                                                    
     Administration submit  a plan  to the House  and Senate                                                                    
     Finance Committees by January 15, 2015.                                                                                    
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Holmes explained  that the amendment followed                                                                    
efforts   of   the   House  Department   of   Administration                                                                    
subcommittee.   The  amendment   included  intent   language                                                                    
requesting  the  department  to   work  with  a  variety  of                                                                    
different   stakeholders  to   encourage  broadband   access                                                                    
throughout  the   state.  The  goal  was   cost-savings  and                                                                    
efficiency. The  second part of the  amendment addressed the                                                                    
Enterprise  Technology  Services  (ETS). She  observed  many                                                                    
efforts to provide better  services. The amendment's request                                                                    
included  a   five-year  plan   for  cost-savings   to  take                                                                    
advantage of  the services  across different  departments. A                                                                    
request was made  for the departments to report  back to the                                                                    
finance committees in January 2015.                                                                                             
                                                                                                                                
Co-Chair  Austerman  stated  that the  commissioner  of  the                                                                    
Department  of   Administration  understood  the   need  for                                                                    
efficiency.                                                                                                                     
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 2 was adopted.                                                                          
                                                                                                                                
1:35:35 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 3:                                                                                  
                                                                                                                                
      FY15 OPERATING BUDGET AMENDMENT                                                                                           
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps.   Costello,   Edgmon,  Munoz,   T.                                                                    
     Wilson, Thompson, Austerman                                                                                                
                                                                                                                                
     DEPARTMENT:         Commerce, Community, and Economic                                                                      
     Development                                                                                                                
    APPROPRIATION:      Community and Regional Affairs                                                                          
    ALLOCATION:         Community and Regional Affairs                                                                          
                                                                                                                                
    ADD: $49,200 Boat Registration Fees (1216), IncOTI                                                                          
                                                                                                                                
     EXPLANATION:   This   amendment    restores   the   25%                                                                    
     reduction  imposed by  the  House Finance  Subcommittee                                                                    
     for   the  Department   of  Commerce,   Community,  and                                                                    
     Economic   Development.   This  organization   provides                                                                    
     boating education  and training and is  the only source                                                                    
     for required marine safety training.                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Costello discussed the  effort to move grants                                                                    
to named  recipients out  of the  operating budget  and into                                                                    
the  capital budget.  The  committee inadvertently  included                                                                    
the Alaska  Marine Safety Education  in the reduction  of 25                                                                    
percent.  The amendment  reinstated  the  money because  the                                                                    
funding was derived from boat receipts.                                                                                         
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 3 was adopted.                                                                          
                                                                                                                                
1:36:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 4:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps.   Stoltze,    Austerman,   Holmes,                                                                    
     Thompson, Wilson, Neuman                                                                                                   
                                                                                                                                
     DEPARTMENT:         Fish and Game                                                                                          
     APPROPRIATION:                                                                                                             
     ALLOCATION:                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     It  is   the  intent   of  the  legislature   that  the                                                                    
     department  maintain fishery  management activities  in                                                                    
     state  waters  as  its top  priority  when  determining                                                                    
     where to  apply unallocated reductions included  in the                                                                    
     FY2015   operating  budget   and   provide  a   fishery                                                                    
     management  activity   prioritization  report   to  the                                                                    
     Finance Committees by October 31, 2014.                                                                                    
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Stoltze discussed the  amendment. He explained that                                                                    
the intent  language was offered  by the Department  of Fish                                                                    
and  Game at  the  request of  the  committee. The  language                                                                    
prioritized fisheries within state waters.                                                                                      
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 4 was adopted.                                                                          
                                                                                                                                
1:37:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 5:                                                                                  
                                                                                                                                
FY15 OPERATING BUDGET AMENDMENT                                                                                                 
                                                                                                                                
OFFERED IN:    The House Finance Committee                                                                                      
                                                                                                                                
TO:            HB 266                                                                                                           
                                                                                                                                
OFFERED BY:    Reps. Austerman, Stoltze,  T. Wilson, Holmes,                                                                    
Edgmon                                                                                                                          
                                                                                                                                
DEPARTMENT:         Department of Fish & Game                                                                                   
APPROPRIATION:      Commercial Fisheries                                                                                        
ALLOCATION:         Westward Region Fisheries Management                                                                        
                                                                                                                                
ADD: $200,000, Test Fisheries Receipts, (1109)                                                                                  
                                                                                                                                
EXPLANATION:   This   amendment   adds  $200,000   of   Test                                                                    
Fisheries Receipts  of Golden  King Crab  for Red  King Crab                                                                    
Research in the Adak and Petrel Banks areas.                                                                                    
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Austerman explained  that the  department utilized                                                                    
test  fisheries  on  many  different  fisheries  around  the                                                                    
state. The money was then  used for research. He mentioned a                                                                    
test  fisheries   program  in  the  Aleutian   Islands  that                                                                    
resulted in  increased research  on the  red king  crab. The                                                                    
department requested  an increase on authority  for the test                                                                    
fisheries.                                                                                                                      
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 5 was adopted.                                                                          
                                                                                                                                
1:38:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 6:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps.   Neuman,    Austerman,   Stoltze,                                                                    
     Munoz, Holmes, T. Wilson, Edgmon, Thompson                                                                                 
                                                                                                                                
     DEPARTMENT:    Health and Social Services                                                                                  
                                                                                                                                
     ADD:      Intent Language                                                                                                  
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of  Health  and Social  Services  submit  a                                                                    
     report   of  transfers   between  appropriations   that                                                                    
     occurred in  the first  half of  FY2015 by  January 30,                                                                    
     2015, and a  report of transfers in the  second half of                                                                    
     FY2015, by September  1, 2015, to the  House and Senate                                                                    
     Finance   Committees   and  the   Legislative   Finance                                                                    
     Division.                                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair Neuman  explained that the amendment  referred to                                                                    
intent language in the budget.  The language would allow the                                                                    
department up to  $50 million in transfers.  The $50 million                                                                    
was covered  in the budget.  A report was requested  for the                                                                    
House  and Senate  Finance  Committees  and the  Legislative                                                                    
Finance Division.                                                                                                               
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 6 was adopted.                                                                          
                                                                                                                                
1:39:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 7:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Representatives   Gara,    Neuman,   and                                                                    
     Austerman                                                                                                                  
                                                                                                                                
     DEPARTMENT:    Health and Social Services                                                                                  
                                                                                                                                
     ADD: Intent Language:                                                                                                      
     It  is   the  intent   of  the  legislature   that  the                                                                    
     department  find  efficiencies,  and use  savings  from                                                                    
     those  efficiencies,  to  implement priorities  of  the                                                                    
     department. These  priorities may  include implementing                                                                    
     the 2012  Office of Children's Services  Workload Study                                                                    
     recommendations.                                                                                                           
                                                                                                                                
     EXPLANATION:                                                                                                               
     The  intent of  this  section is  to find  efficiencies                                                                    
     (and  funding)  within  the   department  in  order  to                                                                    
     implement  the Workload  Study  without increasing  the                                                                    
     department's FY15 budget.                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair Neuman  discussed a report offered  by the Office                                                                    
of  Children's  Services  regarding a  workload  study.  She                                                                    
noted that  three employees  were relocated  to work  on the                                                                    
issue. The goal  was to place more employees  into the lower                                                                    
level  and entry  level positions  to allow  more work  time                                                                    
with children in need. The amendment had no fiscal impact.                                                                      
                                                                                                                                
Representative Gara concurred with the explanation.                                                                             
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 7 was adopted.                                                                          
                                                                                                                                
1:40:56 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 8:                                                                                  
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps.   Neuman,    Austerman,   Stoltze,                                                                    
     Munoz, Holmes, T. Wilson, Edgmon, Thompson                                                                                 
                                                                                                                                
     DEPARTMENT:         Department of Health and Social                                                                        
     Services                                                                                                                   
     APPROPRIATION:      Behavioral Health                                                                                      
     ALLOCATION:         Services to the Seriously Mentally                                                                     
     Ill                                                                                                                        
                                                                                                                                
     ADD:           $525,000 GF/MH - Fund Code 1037                                                                             
                                                                                                                                
     EXPLANATION:                                                                                                               
                                                                                                                                
     Complex Behavioral Collaborative Project                                                                                   
     Intensive   consultative   services  are   offered   to                                                                    
     families  and  programs   serving  individuals  at  the                                                                    
     highest  risk of  being moved  to  more costly  out-of-                                                                    
     state or institutional placements due to difficult-to-                                                                     
     manage   behaviors.  This   project  has   demonstrated                                                                    
     success  in reducing  long term  General Fund  costs by                                                                    
     keeping  these  Alaskans  in their  homes  and  current                                                                    
     placements.                                                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair  Neuman  noted  that  the  amendment  added  $525                                                                    
thousand of  general fund mental  health money to  help with                                                                    
the  Complex  Behavior  Collaborative project.  The  program                                                                    
brought a  group of specialists  together to  help recommend                                                                    
treatment plans for recipients.                                                                                                 
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 8 was adopted.                                                                          
                                                                                                                                
1:41:57 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 9:                                                                                  
                                                                                                                                
     FY 2015 OPERATING BUDGET AMENDMENT                                                                                         
                                                                                                                                
     OFFERED IN:         The House Finance Committee                                                                            
                                                                                                                                
     TO:       CSHB 266(FIN) / CSHB 267(FIN)                                                                                    
                                                                                                                                
     OFFERED BY:    Representative         Edgmon        and                                                                    
     Representative Austerman                                                                                                   
                                                                                                                                
     PART A                                                                                                                     
                                                                                                                                
     DEPARTMENT:         Public Safety                                                                                          
     APPROPRIATION:      Alaska State Troopers                                                                                  
                                                                                                                                
     ALLOCATION:         Rural Trooper Housing                                                                                  
     ADD:           $78,600   General Fund (1004)                                                                               
                                                                                                                                
     ALLOCATION:         Alaska Wildlife Troopers                                                                               
     ADD:                $112,500 General Fund (1004)                                                                           
                                                                                                                                
     ALLOCATION:         Alaska Wildlife Troopers Marine                                                                        
     Enforcement                                                                                                                
     ADD:           $208,900                                                                                                    
                                                                                                                                
     EXPLANATION:                                                                                                               
                                                                                                                                
     Part A of this amendment restores 80% of the                                                                               
     Governor's decrements associated with the transfer of                                                                      
     the Patrol Vessel Stimson from Dutch Harbor to Kodiak.                                                                     
                                                                                                                                
     The decrements included in the Governor's request were                                                                     
     split between three allocations:                                                                                           
     1)   Rural Trooper Housing: ($98,300) UGF                                                                                  
     2)   Alaska Wildlife Troopers: ($140,600) UGF                                                                              
     3)   Alaska   Wildlife  Troopers   Marine  Enforcement:                                                                    
     ($261,100) UGF                                                                                                             
                                                                                                                                
     The  total   of  Part  A   restores  $400,000   UGF  of                                                                    
     ($500,000) UGF deleted by the  Governor to relocate the                                                                    
     Stimson from Dutch Harbor to Kodiak.                                                                                       
                                                                                                                                
     PART B                                                                                                                     
                                                                                                                                
     DEPARTMENT:         Public Safety                                                                                          
     APPROPRIATION:      Alaska State Troopers                                                                                  
     ALLOCATION:         Alaska Wildlife Marine Enforcement                                                                     
                                                                                                                                
     ADD:                     $155,000 General Funds (1004)                                                                     
                                                                                                                                
     ADD:                     1 PFT position                                                                                    
                                                                                                                                
     EXPLANATION:                                                                                                               
                                                                                                                                
     Part  B  of  this   amendment  partially  restores  two                                                                    
     decrements  requested by  the Governor  associated with                                                                    
     decommissioning   the   Patrol  Vessel   Woldstad   and                                                                    
     replacing it with a smaller  58 foot vessel. A total of                                                                    
     $125,000  will   be  utilized  to  keep   the  Woldstad                                                                    
     available  for use  during the  latter portion  of FY15                                                                    
     (repairs estimated  to be completed  by April  1, 2015)                                                                    
     and $30,000  will fund a  deleted Boat Officer  for one                                                                    
     quarter of FY15.                                                                                                           
                                                                                                                                
     The decrements  included in the Governor's  request for                                                                    
     these related items were transmitted as follows:                                                                           
                                                                                                                                
     1)   ($500,000)    to  decommission the  Patrol  Vessel                                                                    
     Woldstad; and                                                                                                              
     2)   ($110,900)  to delete  a  vacant  Boat Officer  IV                                                                    
     assigned to the Woldstad.                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Edgmon  noted that the amendment  allowed the                                                                    
Stimson to remain home-ported in  Alaska. The amendment also                                                                    
allowed the patrol vessel Woldstad  to remain home-ported in                                                                    
Kodiak.  The amendment  also restored  $400 thousand  of the                                                                    
$500 thousand that the Department  of Public Safety proposed                                                                    
to cut. He stated that part  2 of the amendment pertained to                                                                    
the vessel Woldstad  in Kodiak and recognized  the fact that                                                                    
the vessel would be laid up for three-quarters of the                                                                           
upcoming fiscal year. He noted that $155 thousand would be                                                                      
added to pay for the operations for the remaining quarter.                                                                      
                                                                                                                                
1:43:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 9 was adopted.                                                                          
                                                                                                                                
1:43:19 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 10:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:     The House Finance Committee                                                                                
                                                                                                                                
     TO:             HB 266 / HB 267                                                                                            
                                                                                                                                
     OFFERED BY:     Reps.   Neuman,   Austerman,   Stoltze,                                                                    
     Munoz, Holmes, T. Wilson, Edgmon, Thompson                                                                                 
                                                                                                                                
     DEPARTMENT:      Department of Revenue                                                                                     
     APPROPRIATION:  Alaska Mental Health Trust Authority                                                                       
                                                                                                                                
     ADD:   Intent Language                                                                                                     
                                                                                                                                
     It is  the intent  of the  legislature that  the Alaska                                                                    
     Mental  Health Trust  assess  the  potential impact  of                                                                    
     expanded broadband on long  term general fund operating                                                                    
     costs by looking at the following:                                                                                         
                                                                                                                                
     1.   Existing     broadband     capacity     (including                                                                    
     educational and  tribal health networks) that  could be                                                                    
     accessed by the state;                                                                                                     
     2.   The  broadband capacity  needed to  improve access                                                                    
     to health care;                                                                                                            
     3.   Costs of and barriers to expanding broadband; and                                                                     
     4.   Potential    long-term   general    fund   savings                                                                    
     attributable to expanding broadband access.                                                                                
                                                                                                                                
     It  is also  the  intent of  the  legislature that  the                                                                    
     Alaska  Mental  Health Trust  submit  a  report to  the                                                                    
     legislature  outlining  the  results of  assessing  the                                                                    
     above items by January 15, 2015.                                                                                           
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair   Neuman  discussed   the  intent   language.  He                                                                    
credited  the  committee  with  their  hard  work  over  the                                                                    
interim to  review issues  in the  Department of  Health and                                                                    
Social Services  budget. Through  the discussions  he worked                                                                    
with   the  Alaska   Mental   Health   Trust  on   broadband                                                                    
opportunities. He wondered what might  be used to reduce the                                                                    
Department  of Health  and Social  Services budget  by using                                                                    
existing services.  He noted that  there were  no additional                                                                    
funds used  in the  amendment. He  preferred to  utilize the                                                                    
resources available  to help reduce  the cost  in Department                                                                    
of Health  and Social  Services. He  wished to  increase the                                                                    
department's efficiency.                                                                                                        
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 10 was adopted.                                                                         
                                                                                                                                
1:44:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 11:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Representatives Thompson and Austerman                                                                      
                                                                                                                                
     DEPARTMENT:         Revenue                                                                                                
     APPROPRIATION:      Alaska    Mental    Health    Trust                                                                    
     Authority                                                                                                                  
    ALLOCATION:         Mental Health Trust Operations                                                                          
                                                                                                                                
     ADD: $49,900 Mental Health Trust Admin Receipts (1094)                                                                     
     - Inc                                                                                                                      
                                                                                                                                
     EXPLANATION:                                                                                                               
                                                                                                                                
     The Alaska Mental Health Trust Authority (the Trust)                                                                       
     Board of Trustees seeks restoration                                                                                        
     of funds previously approved by the Board of Trustees                                                                      
     which were not included in the                                                                                             
     Governor's original or amended FY2015 budget requests.                                                                     
                                                                                                                                
     The Trust's administrative budget supports essential                                                                       
     work of the Board of Trustees as                                                                                           
     well  as the  administrative operations  of the  Trust.                                                                    
     The funding is necessary for the Trust                                                                                     
     to continue to meet  the Trust's statutory obligations,                                                                    
    fulfill its mission and maintain support functions.                                                                         
                                                                                                                                
     Reasonable  and  necessary  expenses to  be  funded  by                                                                    
     restored  funds  include   honorariums  and  associated                                                                    
     costs  of  holding  additional meetings  that  Trustees                                                                    
     have requested  to be scheduled, which  assists them in                                                                    
     their  important  planning  and  deliberative  decision                                                                    
     making  processes.    Other costs  include  anticipated                                                                    
     contractual  increases associated  with performance  of                                                                    
     the  Trust's  annual  audit (due  to  new  real  estate                                                                    
     investments acquired  and managed by the  Department of                                                                    
     Natural  Resources,  Trust  Land  Office)  as  well  as                                                                    
     increases  in  contracts  for  fiscal  analysis,  legal                                                                    
     consultations,  and program  analysis -  all reasonable                                                                    
     expenses  which   aid  Trustees  and  staff   in  their                                                                    
     essential  duties.   Finally, the  increase will  cover                                                                    
     cost of living adjustments  which the Trust is required                                                                    
     to pay.                                                                                                                    
                                                                                                                                
     This MHTAAR Administration funding  was approved by the                                                                    
     Board  of Trustees  at the  September  4-6, 2013  board                                                                    
     meeting.  This funding does not create a new position.                                                                     
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Thompson  discussed the amendment  that would                                                                    
restore  $49,900  of   mental  health  trust  administrative                                                                    
receipts to their  budget. The funding was  requested by the                                                                    
trustees   to    help   with   essential    work   including                                                                    
administrative operations.  He stated  that the  funding was                                                                    
necessary for the trust to  continue to meet their statutory                                                                    
obligation  by  covering  the cost  of  additional  meetings                                                                    
already requested  by the  trust in  deliberative decisions.                                                                    
The  funding would  cover anticipated  contractual increases                                                                    
associated  with  the  performance  of  the  trust's  annual                                                                    
audit.  The increase  would also  cover the  cost of  living                                                                    
adjustments that the trust was required to pay.                                                                                 
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 11 was adopted.                                                                         
                                                                                                                                
1:46:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 12:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266                                                                                                      
                                                                                                                                
     OFFERED BY:    Representative Austerman                                                                                    
                                                                                                                                
     DEPARTMENT:         Transportation & Public Facilities                                                                     
     APPROPRIATION:      Highways, Aviation and Facilities                                                                      
     ALLOCATION:         Central    Region   Highways    and                                                                    
     Aviation                                                                                                                   
                                                                                                                                
     ADD: $71,000, Vehicle Rental Tax Receipts, (1200)                                                                          
                                                                                                                                
     DELETE:  $71,000, General Funds, (1004)                                                                                    
                                                                                                                                
     EXPLANATION:   This    amendment    replaces    $71,000                                                                    
     unrestricted general funds with available Vehicle                                                                          
     Rental Tax Receipts.                                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Austerman  stated  that the  amendment  moved  $71                                                                    
thousand out of the vehicle  rental tax receipts, which were                                                                    
not  fully  expended.  The  funds  would  be  moved  to  the                                                                    
Department of Transportation and Public Facilities.                                                                             
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
1:46:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 13:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Representatives Stoltze and Austerman                                                                       
                                                                                                                                
     DEPARTMENT:         Alaska Court System                                                                                    
     APPROPRIATION:      Alaska Court System                                                                                    
     ALLOCATION:         Trial Courts                                                                                           
                                                                                                                                
     DELETE:  $21,900 General Funds (1004)                                                                                      
                                                                                                                                
     EXPLANATION:  The   Court  System  has   recently  been                                                                    
     advised that  lease cost increases associated  with the                                                                    
     Nome Court  House will not  be needed until  FY16. This                                                                    
     amendment  decreases the  $104,300 appropriated  by the                                                                    
     House Subcommittee for existing facility leases.                                                                           
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Stoltze stated that the amendment was the only                                                                         
decrement in the Courts budget. He pointed out that the                                                                         
reprieve from the lease costs was for one year only.                                                                            
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
1:47:56 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 14:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
     TO:            HB 266 / HB 267                                                                                             
     OFFERED BY:    Reps.  Austerman,   Neuman,  Edgmon,  T.                                                                    
     Wilson, Holmes, Munoz                                                                                                      
                                                                                                                                
     ADD LANGUAGE                                                                                                               
     Insert  the   following  language  in  a   new  section                                                                    
     following section 4  in HB 266 and  following section 8                                                                    
     in HB 267.                                                                                                                 
     LEGISLATIVE   INTENT.  It   is   the   intent  of   the                                                                    
     legislature  that   the  Departments   of  Corrections,                                                                    
     Health  and Social  Services, and  Labor and  Workforce                                                                    
     Development, along with the  Alaska Mental Health Trust                                                                    
     Authority, Alaska Housing  Finance Corporation, and the                                                                    
     Alaska Court  System, continue to  work collaboratively                                                                    
     to identify common clients who  are being released from                                                                    
     correctional institutions and do the following:                                                                            
     1.   Develop    and    implement    a    comprehensive,                                                                    
     complementary,   non-duplicative  plan   for  providing                                                                    
     substance abuse, mental  health, housing and employment                                                                    
     services to  those who  are released  from correctional                                                                    
     institutions.                                                                                                              
     2.   Use   the   plan   to  assist   the   Departments,                                                                    
     Authority,  agency,  and   Court  System  in  improving                                                                    
     treatment  and  other  outcomes for  recently  released                                                                    
     inmates with  the goal of reducing  correctional system                                                                    
     recidivism rates.                                                                                                          
     3.   Gather and  analyze data  on the  substance abuse,                                                                    
     mental health,  employment and housing  services needed                                                                    
    and the services provided to the released clients.                                                                          
     4.   Propose effectiveness and  efficiency measures for                                                                    
     the new plan.                                                                                                              
     5.   Jointly  report on  plan  implementation and  data                                                                    
     findings to the legislature by February 2, 2015.                                                                           
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Austerman  stated that Vice-Chair  Neuman addressed                                                                    
the  issue of  recidivism in  the Department  of Corrections                                                                    
budget.  The   intent  language  resulted  from   work  with                                                                    
Department  of Health  and  Social  Services, Department  of                                                                    
Transportation and  Public Facilities and the  Alaska Mental                                                                    
Health  Trust   Authority  (AMHTA).   He  stated   that  the                                                                    
amendment was an effort to control the recidivism problem.                                                                      
                                                                                                                                
Vice-Chair Neuman  added that  the goal  was to  reduce drug                                                                    
and alcohol abuse. He noted  that people in corrections were                                                                    
asking for help  to refrain from alcohol and  drug abuse. He                                                                    
spoke  about a  recent conversation  with a  person released                                                                    
from  corrections without  a convenient  place to  live. The                                                                    
plan  would   allow  for   greater  assistance   in  similar                                                                    
scenarios.                                                                                                                      
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 14 was adopted.                                                                         
                                                                                                                                
1:50:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Austerman   MOVED  to  ADOPT  Amendment   15,  28-                                                                    
GH2671\P.5, Wallace, 3/10/14, (copy on file):                                                                                   
                                                                                                                                
     Page 53, following line 3:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec. 5.  CRIME VICTIMS'  RIGHTS. (a)  It is  the                                                                    
     intent of  the legislature  to increase  crime victims'                                                                    
     access  to the  criminal  justice  process, to  improve                                                                    
     communication  between  criminal justice  agencies  and                                                                    
     crime victims, and to ensure  that crime victims' legal                                                                    
     rights  are not  denied.  Crime victims  in this  state                                                                    
     should be  treated with dignity, respect,  and fairness                                                                    
     as  guaranteed  by the  Constitution  of  the State  of                                                                    
     Alaska.   The   Department   of  Law,   Department   of                                                                    
     Corrections,  Department  of  Public  Safety,  and  the                                                                    
     division  in  the  Department   of  Health  and  Social                                                                    
     Services  responsible   for  juvenile   justice  should                                                                    
     continue to partner with the  office of victims' rights                                                                    
     to  improve  the  criminal justice  process  for  crime                                                                    
     victims.                                                                                                                   
     (b)   One of  the surest ways  to affect  each victim's                                                                    
     sense  of fairness  and justice  is  through clear  and                                                                    
     consistent  communication  by  agency  staff  to  crime                                                                    
     victims.  Timely communication  to crime  victims helps                                                                    
     to ensure  victims' notice and opportunity  to be heard                                                                    
     at   key   stages   of  criminal   investigations   and                                                                    
     prosecutions.  Police  officers and  prosecutors,  upon                                                                    
     first contact  with crime victims, are  required by law                                                                    
     to inform  crime victims about  the office  of victims'                                                                    
     rights.   Law    enforcement   agencies,   prosecutors,                                                                    
     corrections agencies, social  service agencies, and the                                                                    
     courts should  make every  reasonable effort  to ensure                                                                    
     that  victims'  legal  rights are  preserved.  Victims'                                                                    
     privacy and dignity should  be protected throughout the                                                                    
     process.  A timely  and  fair  disposition of  criminal                                                                    
     charges  promotes  public   trust,  including  victims'                                                                    
     trust, in  the criminal justice process.  Timely, full,                                                                    
     and prompt financial restitution  to crime victims also                                                                    
     provides crime  victims with a tangible  sense that the                                                                    
     criminal  justice  system  has  acted  to  restore  the                                                                    
     victim."                                                                                                                   
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 58, line 28:                                                                                                          
     Delete "sec. 25(j)"                                                                                                        
     Insert "sec. 26(j)"                                                                                                        
                                                                                                                                
     Page 70, line 22:                                                                                                          
     Delete "sec. 15(b)"                                                                                                        
     Insert "sec. 16(b)"                                                                                                        
                                                                                                                                
     Page 76, lines 13 - 14:                                                                                                    
     Delete "secs. 8(c), 9, 10(b), and 25 - 27"                                                                                 
     Insert "secs. 9(c), 10, 11(b), and 26 - 28"                                                                                
                                                                                                                                
     Page 76, line 15:                                                                                                          
     Delete "sec. 12(h)(1)"                                                                                                     
     Insert "sec. 13(h)(1)"                                                                                                     
                                                                                                                                
     Page 76, line 20:                                                                                                          
     Delete "Sections 30 and 34"                                                                                                
     Insert "Sections 31 and 35"                                                                                                
                                                                                                                                
     Page 76, line 21:                                                                                                          
     Delete "Section 26(c)"                                                                                                     
     Insert "Section 27(c)"                                                                                                     
                                                                                                                                
     Page 76, line 22:                                                                                                          
     Delete "secs. 35 and 36"                                                                                                   
     Insert "secs. 36 and 37"                                                                                                   
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Stoltze discussed  the  bill  related to  victims'                                                                    
rights. He  credited Representative Holmes with  her efforts                                                                    
on the  amendment. He  stated that  the acuity  of awareness                                                                    
was not  available for  the rights of  victims of  crime. He                                                                    
noted that  the measure  was very popular  in the  state. He                                                                    
stated that Alaska  was continuing to work  on victim rights                                                                    
for the  people of Alaska.  The intent language served  as a                                                                    
reminder   to   several    departments   involved   in   the                                                                    
administration of  justice. The  measure was  an expectation                                                                    
of behavior  for every branch  of government to have  a role                                                                    
in protecting and  ensuring the rights of  victims of crime.                                                                    
He stated his passion for the issue.                                                                                            
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered. Amendment 15 was adopted.                                                                         
                                                                                                                                
1:53:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 16:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:      The House Finance Committee                                                                               
                                                                                                                                
     TO:              CSHB 266 (FIN)                                                                                            
                                                                                                                                
     OFFERED BY:      Rep. Austerman                                                                                            
                                                                                                                                
     REVISE LANGUAGE:  Decrement $2,267,813 General Funds                                                                       
     (1004) by amending sec. 23(k) to read:                                                                                     
                                                                                                                                
      (k)   The   sum    of   $126,642,396[128,910,209]   is                                                                    
     appropriated to  the Department of Education  and Early                                                                    
     Development  for   state  aid   for  costs   of  school                                                                    
     construction  under AS  14.11.100 for  the fiscal  year                                                                    
     ending June 30, 2015, from the following sources:                                                                          
          General Fund                                                                                                          
          $107,342,396[$109,610,209]                                                                                            
          School Fund (AS 43.50.140)                                                                                            
     19,300,000                                                                                                                 
                                                                                                                                
     EXPLANATION:                                                                                                               
                                                                                                                                
     Based on  recent projections, the  amount of  state aid                                                                    
     required  for costs  of  school  construction under  AS                                                                    
     14.11.100 for the  fiscal year ending June  30, 2015 is                                                                    
     estimated  to   be  $2,267,813  less   than  originally                                                                    
     requested.  Reasons  for  a  lower  projection  include                                                                    
     anticipated  projects not  approved,  debt for  several                                                                    
     projects  sold later  than  anticipated,  and a  larger                                                                    
     premium received than anticipated.                                                                                         
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Austerman  noted that the amendment  was brought by                                                                    
the  administration for  $2,267,813 for  school construction                                                                    
reimbursement that was  not utilized and added  it back into                                                                    
the budget.                                                                                                                     
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered. Amendment 16 was adopted.                                                                         
                                                                                                                                
1:54:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 17:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266                                                                                                      
                                                                                                                                
     OFFERED BY:    Reps. Costello, T. Wilson, Neuman                                                                           
                                                                                                                                
     DEPARTMENT:         Department of Health and Social                                                                        
     Services                                                                                                                   
     APPROPRIATION:      Public Health                                                                                          
     ALLOCATION:         Chronic Disease Prevention and                                                                         
     Health Promotion                                                                                                           
                                                                                                                                
     DELETE:  $720,000 General Fund (1004)                                                                                      
                                                                                                                                
     EXPLANATION:   This decrement  removes funding  for the                                                                    
     advertising and  research portion  for the  "Play Every                                                                    
     Day  Campaign."       More  specifically  the  proposed                                                                    
     contract work listed below.                                                                                                
     Table  C. (Provided  by the  Department  of Health  and                                                                    
     Social Services)                                                                                                           
     Contract 1: Northwest Strategies - Main Deliverables                                                                       
          Amount                                                                                                                
     Provide social marketing  consultation and a three-year                                                                    
     strategic plan  to build a  campaign that  helps reduce                                                                    
     childhood obesity in Alaska. $160.0                                                                                        
     Develop public education materials  that include TV and                                                                    
     radio  PSAs, print  and  online  materials, a  website,                                                                    
     social  media,  and  a library  of  images  and  video.                                                                    
          $130.0                                                                                                                
     Provide  social  marketing   technical  assistance  and                                                                    
     training to  DHSS's nine  new school  district grantees                                                                    
     to improve  public education statewide.  Provide social                                                                    
     marketing  consultation  to  the  Alaska  Alliance  for                                                                    
     Healthy Kids. $10.0                                                                                                        
     Acquire and  place media  that effectively  reaches the                                                                    
     target audience  statewide, hitting the CDC  target for                                                                    
     Gross Rating Points (GRPs) to impact behavior change.                                                                      
          $350.0                                                                                                                
     SUBTOTAL $650.0                                                                                                            
     Contract 2: Hayes Research Group - Deliverable                                                                             
     Focus groups  to inform motivational messages,  and one                                                                    
     survey to evaluate the effectiveness of the messages.                                                                      
          $70.0                                                                                                                 
     CONTRACTS TOTAL     $720.0                                                                                                 
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative   Costello  explained   that  the   amendment                                                                    
reduced the operating budget by  $720 thousand as part of an                                                                    
overall obesity  prevention effort.  She clarified  that her                                                                    
intent was not  to comment on the quality  and importance of                                                                    
the  effort.  She  opined that  the  television  advertising                                                                    
portion of the  program could be postponed  during the times                                                                    
of tight  budgets. The classroom  portion of the  effort was                                                                    
valuable. She  offered the amendment because  of the current                                                                    
budget environment.                                                                                                             
                                                                                                                                
Representative  Holmes   respectfully  disagreed   with  the                                                                    
amendment  sponsor.  She  stated  that she  heard  from  the                                                                    
department that  obesity was its  largest challenge  and led                                                                    
to increases  in Medicaid costs.  She stressed  that obesity                                                                    
was the state's number one health challenge.                                                                                    
                                                                                                                                
Representative  Wilson wondered  if television  could change                                                                    
the children's  behavior. She  wondered if  placing Physical                                                                    
Education  classes back  into school  curriculum would  help                                                                    
solve the  problem. She opined  that television was  not the                                                                    
best  method for  directing the  important information.  She                                                                    
encouraged  Physical  Education  in the  public  schools  to                                                                    
address the issue of childhood  obesity. She would prefer to                                                                    
spend the funds helping children in the schools.                                                                                
                                                                                                                                
Representative  Gara  acknowledged that  obesity  prevention                                                                    
was  a large  issue. He  noted that  Representative Costello                                                                    
and Senator McGuire discussed the  possibility of a physical                                                                    
education  task   force.  He  agreed  that   the  state  was                                                                    
deficient  in  physical education  due  to  the increase  in                                                                    
mandates.  He mentioned  that poor  food choices  for school                                                                    
lunches  and child  activity levels  were  also culprits  in                                                                    
childhood   obesity.   Vice-Chair   Neuman   supported   the                                                                    
amendment  based  on the  restraints  in  the Department  of                                                                    
Health  and  Social  Services budget.  He  stated  that  the                                                                    
reduction  was  not  an  easy  one,  but  he  supported  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Edgmon appreciated  the comments, but opposed                                                                    
the amendment.  He discussed  the cost  and benefits  of the                                                                    
program.  He  pointed out  the  benefits  of prevention  and                                                                    
awareness in both rural and urban Alaska.                                                                                       
                                                                                                                                
Representative Munoz  expressed interest in the  campaign as                                                                    
a gentle reminder to stay  active. She found the campaign to                                                                    
be successful.                                                                                                                  
                                                                                                                                
Representative  Guttenberg  stated   that  the  Division  of                                                                    
Public  Health  addressed  the importance  of  diabetes  and                                                                    
obesity during  subcommittee hearings. He  acknowledged that                                                                    
affecting kids  was challenging.  He believed that  the Play                                                                    
Every Day  campaign was valuable  and effective.  He pointed                                                                    
out that  the state expense  curve might be affected  by the                                                                    
campaign.                                                                                                                       
                                                                                                                                
Representative   Costello  mentioned   that  the   amendment                                                                    
addressed only  part of the  program. The  classroom portion                                                                    
of  the  program would  remain  intact  to aid  in  reducing                                                                    
childhood  obesity.  She  noted  that  the  Healthy  Futures                                                                    
portion of  the program  would remain intact.  She mentioned                                                                    
her  son's activity  level  and how  he  benefited from  the                                                                    
messages provided in the classroom.                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Neuman,  Thompson,  Wilson,  Costello,  Austerman,                                                                    
Stoltze                                                                                                                         
OPPOSED: Edgmon, Gara, Guttenberg, Holmes, Munoz                                                                                
                                                                                                                                
The MOTION PASSED (6/5).                                                                                                        
                                                                                                                                
2:05:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 18:                                                                                 
                                                                                                                                
      FY15 OPERATING BUDGET AMENDMENT                                                                                           
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
     OFFERED BY:    Reps. Stoltze and Neuman                                                                                    
                                                                                                                                
     DEPARTMENT:         Transportation      and      Public                                                                    
     Facilities                                                                                                                 
     APPROPRIATION:      Marine Highway System                                                                                  
     ALLOCATION:                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
     It  is   the  intent   of  the  legislature   that  the                                                                    
     department eliminate any future  issuing of free annual                                                                    
     passes   for   vehicles   of  state   agencies,   state                                                                    
     employees,  or  retirees  and  their  families  on  the                                                                    
     Alaska Marine Highway System.                                                                                              
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair   Stoltze  stated   that  the   amendment's  intent                                                                    
language  appeared  in the  budget  last  year. He  recalled                                                                    
conversations  with  people   involved  in  the  negotiation                                                                    
process about  the issue of  free passes. The issue  was not                                                                    
about  free  passenger  service,   but  about  free  vehicle                                                                    
service.  He   noted  that  a  vehicle   passage  was  quite                                                                    
expensive and  space on the  ferries was limited.  He stated                                                                    
that  the change  would yield  approximately  $1 million  in                                                                    
benefit per year. He stated  that the benefit was offered to                                                                    
employees  and  their  families,  both  residents  and  non-                                                                    
residents. He stated that inaction  by the legislature was a                                                                    
statement  of support.  He acknowledged  that the  topic was                                                                    
not  easy  to introduce,  but  he  felt that  the  amendment                                                                    
allowed  for prudent  fiscal action.  He explained  that the                                                                    
benefit was  not universal for transportation  related items                                                                    
in  the state.  He offered  the amendment  in the  spirit of                                                                    
fiscal prudence.                                                                                                                
                                                                                                                                
2:09:12 PM                                                                                                                    
                                                                                                                                
Representative Gara  understood the value of  the amendment.                                                                    
He  wondered about  retaining the  benefit for  retirees and                                                                    
their families.                                                                                                                 
                                                                                                                                
Co-Chair  Stoltze opined  that Representative  Gara's notion                                                                    
could be  offered in a  separate amendment. He  defended the                                                                    
Alaska Marine Highway as  coastal Alaska's highway corridor,                                                                    
but the  state struggled  to provide  ferry service  to some                                                                    
areas. He mentioned  the rising cost of  fuel inhibiting the                                                                    
marine  highway.  He mentioned  the  salary  denial for  the                                                                    
executive branch  and noted that  the practice  would become                                                                    
more  common  with  the  fiscal climate  in  the  state.  He                                                                    
understood  that  the  issue  might  be  negotiated  in  the                                                                    
bargaining agreement. He wished  to view all potential costs                                                                    
that eroded the ability to  provide services. He stated that                                                                    
the Alaska  Marine Highway utilized  a large portion  of the                                                                    
state's   transportation   budget.   He   found   difficulty                                                                    
justifying the  spending to those constituents  in the state                                                                    
who did not benefit from the service.                                                                                           
                                                                                                                                
Vice-Chair    Neuman    discussed    the    Department    of                                                                    
Transportation  and  Public  Facilities  budget,  which  was                                                                    
reduced by  approximately $3 million.  He noted  that future                                                                    
budgets would  be in question  without some  reductions. The                                                                    
amendment asked the people who  use the ferry system to help                                                                    
fund the ferry system.                                                                                                          
                                                                                                                                
2:13:51 PM                                                                                                                    
                                                                                                                                
Co-Chair  Austerman  stated  that  he did  not  support  the                                                                    
amendment.  He   believed  that  the  legislature   had  the                                                                    
responsibility of  approving the  contracts and  the funding                                                                    
for them.  He stated that the  negotiated contract contained                                                                    
the  benefit   and  the   state  was   in  the   process  of                                                                    
negotiations.  He felt  it appropriate  for the  negotiation                                                                    
parties to determine the process  with the passenger vehicle                                                                    
benefit. He recalled that the  administration could be asked                                                                    
to  renegotiate  if the  legislature  was  unhappy with  the                                                                    
results.  He  thought that  the  appropriate  avenue was  to                                                                    
respect the negotiation process.                                                                                                
                                                                                                                                
Representative Gara stated that he  was unaware of the issue                                                                    
of  negotiated contracts.  He asked  if  the state  employee                                                                    
provision was part of the collective bargaining.                                                                                
                                                                                                                                
Co-Chair  Austerman replied  that  the  vehicle passes  were                                                                    
negotiated in the collective bargaining agreement.                                                                              
                                                                                                                                
Representative Gara understood.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson,   Wilson,   Costello,  Holmes,   Neuman,                                                                    
Stoltze                                                                                                                         
OPPOSED: Edgmon, Gara, Guttenberg, Munoz, Austerman                                                                             
                                                                                                                                
The MOTION PASSED (6/5).                                                                                                        
                                                                                                                                
2:16:35 PM                                                                                                                    
                                                                                                                                
Co-Chair  Austerman   MOVED  to  ADOPT  Amendment   19,  28-                                                                    
GH2671\P.2, Gardner/Wallace, 3/6/14 (copy on file):                                                                             
                                                                                                                                
     Page 56, line 30, following "associations":                                                                                
     Insert "for the following purposes:                                                                                        
     (1)  promotion of  seafood and seafood by-products that                                                                    
    are harvested in the region and processed for sale;                                                                         
     (2)    promotion  of  improvements  to  the  commercial                                                                    
     fishing  industry  and  infrastructure in  the  seafood                                                                    
     development region;                                                                                                        
     (3)       establishment    of   education,    research,                                                                    
     advertising,  or sales  promotion programs  for seafood                                                                    
     products harvested in the region;                                                                                          
     (4)    preparation  of   market  research  and  product                                                                    
     development  plans for  the  promotion  of seafood  and                                                                    
     their by-products that are harvested  in the region and                                                                    
     processed for sale;                                                                                                        
     (5)   cooperation  with  the  Alaska Seafood  Marketing                                                                    
     Institute   and  other   public   or  private   boards,                                                                    
     organizations,   or  agencies   engaged   in  work   or                                                                    
     activities  similar to  the work  of the  organization,                                                                    
     including  entering into  contracts for  joint programs                                                                    
     of   consumer  education,   sales  promotion,   quality                                                                    
     control, advertising,  and research in  the production,                                                                    
     processing,  or distribution  of  seafood harvested  in                                                                    
     the region;                                                                                                                
     (6)       cooperation   with    commercial   fishermen,                                                                    
     fishermen's  organizations,   seafood  processors,  the                                                                    
     Alaska Fisheries Development  Foundation, the Fisheries                                                                    
     Industrial   Technology  Center,   state  and   federal                                                                    
     agencies, and  other relevant  persons and  entities to                                                                    
     investigate  market reception  to  new seafood  product                                                                    
     forms  and to  develop commodity  standards and  future                                                                    
     markets for seafood products"                                                                                              
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Costello  explained  that  language  in  the                                                                    
budget must  be offered in  the full finance  committee. She                                                                    
informed the committee  that the issue was  discussed in the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
budget    subcommittee   who    favored   the    amendment's                                                                    
introduction in the House Finance  Committee. She noted that                                                                    
the amendment took a current  state statute and placed it in                                                                    
the language portion  of the budget. She  noted that statute                                                                    
AS  44.33.065  addressed  the Regional  Seafood  Development                                                                    
Associations (RSDA) that were  created to promote and market                                                                    
their  fishery and  seafood products.  She noted  two RSDA's                                                                    
funded  through a  2  percent development  tax  paid by  the                                                                    
members.  The amendment  stressed  that the  purpose of  the                                                                    
funds was to promote the fishery.                                                                                               
                                                                                                                                
Representative   Edgmon  understood   the   intent  of   the                                                                    
amendment,  but did  not support  the  amendment. He  stated                                                                    
that the amendment  was directed to the RSDA  in the Bristol                                                                    
Bay region. He  corrected that 1 percent  of RSDA operations                                                                    
were passed  back to the  Department of  Commerce, Community                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson,    Costello,   Holmes,    Munoz,   Neuman,                                                                    
Thompson, Stoltze                                                                                                               
OPPOSED: Edgmon, Gara, Guttenberg, Austerman                                                                                    
                                                                                                                                
The MOTION PASSED (7/4).                                                                                                        
                                                                                                                                
2:20:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 20:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266                                                                                                      
                                                                                                                                
    OFFERED BY:    Representatives Gara and Guttenberg                                                                          
                                                                                                                                
                                                                                                                                
    DEPARTMENT:         Labor and Workforce Development                                                                         
     APPROPRIATION:      Business Partnerships                                                                                  
     ALLOCATION:         Business Services                                                                                      
                                                                                                                                
                                                                                                                                
     ADD: $2,391,700 GF (1004)                                                                                                  
                                                                                                                                
     EXPLANATION:   This  amendment  will restore  the  base                                                                    
     funding  in the  governor's  requested  budget for  the                                                                    
     Alaska  Youth First  Program.    This program  provides                                                                    
     grants  to organizations  across  the  state to  assist                                                                    
     Alaskans -  both school  age students  and adults  - in                                                                    
     job readiness and career  counseling.  Restoration will                                                                    
     help offset losses of job  and career counselors school                                                                    
     districts  have  been  forced to  cut  the  past  three                                                                    
     years.                                                                                                                     
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Gara discussed the  amendment. He stated that                                                                    
the minority  felt that the  series of  education amendments                                                                    
were important.  He expressed  willingness to  compromise if                                                                    
another committee member offered  a different suggestion. He                                                                    
stated that  the Alaska Youth  First program  was relatively                                                                    
new  to most  Alaskans. The  program provided  job training,                                                                    
career counselling  in schools and with  non-profit entities                                                                    
where  the   youth  were  trained  for   the  workforce.  He                                                                    
explained that  guidance counsellors  across the  state were                                                                    
lost in the  schools due to budget cuts. He  pointed out the                                                                    
$2.3  million reduction  from the  governor's proposal.  The                                                                    
amendment would  restore the governor's proposal.  He stated                                                                    
that $2.3  million of career  counselling would be  lost for                                                                    
at-risk youth  without the amendment.  He explained  that he                                                                    
would prefer to  have an at-risk youth in a  job than in the                                                                    
corrections system.                                                                                                             
                                                                                                                                
Representative  Gara listed  the  services  provided by  the                                                                    
Alaska Youth First program. In  Anchorage, Ninestar used the                                                                    
funds to pay for the first  month of work for at-risk youth.                                                                    
He stated that 90 percent of  the youth remain in their jobs                                                                    
after the  first 30 days  were paid  for with the  funds. He                                                                    
noted that Ninestar  reached out to the  Mat-Su valley where                                                                    
job training  and job placement  were provided  for homeless                                                                    
and at-risk  youth. He quoted  a business that  employed the                                                                    
youth:  "this program  is extremely  important for  youth in                                                                    
our  community  wishing  to  get  a  fresh  start  into  the                                                                    
employment world."  He mentioned  other centers  that served                                                                    
youth statewide to  train and get them into  work. He stated                                                                    
that  the  Fairbanks  North  Star  Borough  School  District                                                                    
served  approximately 2500  youth  with career  counselling.                                                                    
Dillingham provided  job training and placement  services to                                                                    
130 students. A  portion of the funding was  used for career                                                                    
counselors and school districts  and another portion went to                                                                    
non-profit entities.  All of the  funds were used  to enable                                                                    
gainful employment  for youth, a substantial  portion of who                                                                    
were  at-risk  youth.  He  offered  to  accept  a  different                                                                    
funding amount if  there was evidence that a  portion of the                                                                    
program was not working.                                                                                                        
                                                                                                                                
2:25:42 PM                                                                                                                    
                                                                                                                                
Representative   Guttenberg   stated   that   the   students                                                                    
testifying   about  their   experience   with  the   program                                                                    
impressed him.  The students experienced benefits  that were                                                                    
otherwise  unavailable.  He  noted that  the  societal  kick                                                                    
offered through the  program made a difference  in the kids'                                                                    
lives. He suggested that keeping  youth off the street would                                                                    
prevent  further  social  problems.  He spoke  to  the  many                                                                    
benefits of the Alaska Youth First program.                                                                                     
                                                                                                                                
Representative  Wilson wished  for  statistics proving  that                                                                    
the  program  was working.  She  was  unable to  obtain  the                                                                    
statistics taken  by the Department  of Labor  and Workforce                                                                    
Development. She  stressed that entire programs  must be cut                                                                    
to reduce  the budget. Most  money was federally  matched by                                                                    
general funds. She took the  cut seriously. She stressed the                                                                    
need for statistics proving the program's effectiveness.                                                                        
                                                                                                                                
2:30:34 PM                                                                                                                    
                                                                                                                                
Representative Gara  appreciated that  Representative Wilson                                                                    
did  not take  the cuts  lightly. He  hoped that  unanswered                                                                    
questions were  tended to  prior to the  end of  session. He                                                                    
understood cutting  a wasteful program  or one that  was low                                                                    
on  the list  of  priorities, but  he  questioned cutting  a                                                                    
program  that made  such  a  large impact  on  the lives  of                                                                    
individuals.  He found  evidence  that  the program  enabled                                                                    
youth  to  obtain gainful  employment.  He  pointed out  the                                                                    
excuse that  the money was  not available. He noted  that $8                                                                    
billion  worth of  mega projects  were  questionable and  he                                                                    
hoped  that  the  same  standards   were  applied  to  those                                                                    
projects.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Costello, Gara, Guttenberg, Munoz                                                                                     
OPPOSED:   Edgmon,   Holmes,   Neuman,   Thompson,   Wilson,                                                                    
Austerman, Stoltze                                                                                                              
                                                                                                                                
The MOTION FAILED (4/7).                                                                                                        
                                                                                                                                
2:33:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 21:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266                                                                                                      
    OFFERED BY:    Representatives Gara and Guttenberg                                                                          
                                                                                                                                
    DEPARTMENT:         Education and Early Development                                                                         
     APPROPRIATION:      K-12 Support                                                                                           
     ALLOCATION:         Foundation Program                                                                                     
                                                                                                                                
     ADD: New Language Section: Sec. 14(b)                                                                                      
     The  sum  of  $101,000,000  is  appropriated  from  the                                                                    
     general fund  to the Department of  Education and Early                                                                    
     Development  to   be  distributed   as  state   aid  to                                                                    
     districts  according to  the  average daily  membership                                                                    
     for each district  adjusted under AS 14.17.410(b)(1)(A)                                                                    
     - (D) for the fiscal year ending June 30, 2015.                                                                            
                                                                                                                                
     Renumber sections accordingly.                                                                                             
                                                                                                                                
     EXPLANATION:   This   amendment   would   reflect   the                                                                    
     equivalent of  a $404 Base Student  Allocation increase                                                                    
     in the event a base  student allocation bill to reverse                                                                    
     the recent course of educator cuts does not pass.                                                                          
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Gara  explained  that  the  amendment  would                                                                    
distribute a  $404 increase in  the Base  Student Allocation                                                                    
(BSA) through  the foundation formula to  the various school                                                                    
districts.  The state  lost over  600  education staff  with                                                                    
further layoffs  expected under the governor's  proposal. He                                                                    
stated that  parents across the  state were  concerned about                                                                    
the education policy.  He requested a reversal  of the cuts.                                                                    
According  to  a  recent legislative  research  report,  the                                                                    
largest school districts  in the state would  require a $315                                                                    
Base Student Allocation (BSA) increase to retain staff.                                                                         
                                                                                                                                
Representative Gara  noted that Alaska ranked  48th in third                                                                    
grade reading  level. Employers reported that  students were                                                                    
graduated prior  to achievement of workplace  readiness. The                                                                    
governor's proposal would result  in approximately 1000 lost                                                                    
staff  by  next  year.  He  mentioned  the  major  education                                                                    
reforms of  2007 and 2008. The  reforms ended discrimination                                                                    
against rural  school districts  by increasing  the cost-of-                                                                    
living  factor.  He  noted  that the  state  paid  a  larger                                                                    
portion  of  the  unfunded   pension  liability  for  Public                                                                    
Employees' Retirement System  (PERS) and Teachers Retirement                                                                    
System  (TRS) for  school districts.  The funds  were placed                                                                    
into a trust  fund. He suggested that  classroom funding was                                                                    
a separate issue.                                                                                                               
                                                                                                                                
Representative Gara  continued that  teachers must  teach to                                                                    
the individual  student. As  class sizes  expanded, teachers                                                                    
were  at  a  disadvantage.  He revealed  that  many  parents                                                                    
contacted his  office with  statements about  leaving Alaska                                                                    
because  of  the  faulty  education  system.  When  families                                                                    
leave, Alaska's economy suffered.  He urged the committee to                                                                    
support the amendment.                                                                                                          
                                                                                                                                
2:39:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman pointed  out that HB 278  would arrive in                                                                    
committee with a  proposed increase to the BSA.  He asked if                                                                    
the increase of $101 million would go to the BSA.                                                                               
                                                                                                                                
Representative  Gara   replied  that  the  funds   would  be                                                                    
distributed through the BSA formula.                                                                                            
                                                                                                                                
Representative  Holmes  expressed  sympathy, but  would  not                                                                    
support  the amendment.  She stated  that  the omnibus  bill                                                                    
would  include  the  BSA  and a  hearing  in  committee  was                                                                    
imminent. She  anticipated the discussion about  the prudent                                                                    
increase in  the level  of BSA.  She supported  increases in                                                                    
the BSA, but wished to postpone  a decision until HB 278 was                                                                    
heard in committee.                                                                                                             
                                                                                                                                
Representative  Guttenberg  appreciated  the  focus  on  the                                                                    
issue. He  expressed frustration about  postponing difficult                                                                    
issues. He  stated that the  best time to address  the issue                                                                    
was the present.  He pointed out that  quality schools often                                                                    
determined  a family's  chosen  location.  He supported  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
2:43:26 PM                                                                                                                    
                                                                                                                                
Representative   Wilson   explained   that   the   education                                                                    
subcommittee  did not  discuss the  formula portion,  it was                                                                    
considered a policy  decision. She wished to  have facts and                                                                    
figures from the department before she made a decision.                                                                         
                                                                                                                                
Representative  Edgmon appreciated  the amendment's  intent.                                                                    
He  anticipated the  arrival  of HB  278,  which included  a                                                                    
provision  for the  K-12 formula.  He stated  that he  would                                                                    
support an  increase to the  BSA in the governor's  bill. He                                                                    
stated that  solving the  issue was  important to  bring the                                                                    
session to a  close. He thought that the  committee might be                                                                    
better served  by waiting for  the upcoming  legislation. He                                                                    
commented  that education  was a  large and  important topic                                                                    
each  and  every session  and  the  negotiation process  was                                                                    
crucial.                                                                                                                        
                                                                                                                                
2:46:21 PM                                                                                                                    
                                                                                                                                
Representative  Gara   offered  to   distribute  legislative                                                                    
research  reports   regarding  the  avoidance  of   cuts  to                                                                    
education. He stated that Anchorage  required an increase of                                                                    
$251, Fairbanks  required $275, Juneau required  $450, Kenai                                                                    
required $270,  Kodiak required $400 and  Mat-Su required an                                                                    
increase of $250.  He noted that the last version  of HB 278                                                                    
would result  in a fourth year  of cuts. The funding  in the                                                                    
amendment would be distributed as a BSA increase.                                                                               
                                                                                                                                
Co-Chair   Austerman   commented    that   the   state   and                                                                    
municipalities shared responsibility  for funding education.                                                                    
He believed that some of  the large districts had not funded                                                                    
to  the   cap.  He  welcomed  a   discussion  regarding  the                                                                    
responsibility for funding education.                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg                                                                                                      
OPPOSED: Edgmon, Holmes, Munoz, Neuman, Thompson, Wilson,                                                                       
Costello, Stoltze, Austerman                                                                                                    
                                                                                                                                
The MOTION FAILED (2/7).                                                                                                        
                                                                                                                                
2:49:41 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 22:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266                                                                                                      
                                                                                                                                
    OFFERED BY:    Representatives Gara and Guttenberg                                                                          
    DEPARTMENT:         Education and Early Development                                                                         
     APPROPRIATION:      Teaching and Learning Support                                                                          
     ALLOCATION:         Pre-Kindergarten Grants                                                                                
     ADD: $2,000,000 GF (1004)                                                                                                  
                                                                                                                                
     EXPLANATION:   This amendment will  allow more students                                                                    
     to participate  in Pre-K.  High-quality  Pre-K programs                                                                    
     have  been  proven  to improve  a  child's  chances  of                                                                    
     succeeding in  school and in life.  Children who attend                                                                    
     high-quality programs  are less likely to  be held back                                                                    
     a  grade, less  likely to  need special  education, and                                                                    
     more likely  to graduate from high  school and college.                                                                    
     They also have  higher earnings as adults  and are less                                                                    
     likely to become dependent on  welfare or involved with                                                                    
     law enforcement.                                                                                                           
                                                                                                                                
     The current $2 million  program only serves roughly 300                                                                    
     students.   This  "pilot" program  started in  FY10 and                                                                    
     was  intended to  become a  statewide  effort once  its                                                                    
     success was shown. It has proven successful.                                                                               
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Gara explained the  Pre-K amendment. He noted                                                                    
the previous  governor and education commissioner  started a                                                                    
pilot Pre-K program. Alaska  provided Pre-K to approximately                                                                    
half the percentage of that  provided by other states. Youth                                                                    
who  experience  Pre-K earn  more  money  and graduate  high                                                                    
school and college in higher  numbers. The pilot program had                                                                    
proven itself with an increase  in reading comprehension and                                                                    
intellectual  achievement.  The  goal   was  to  expand  the                                                                    
program across  the state to  a greater number  of students.                                                                    
He appreciated  the Parents as Teachers  program. He pointed                                                                    
out that Head Start funding  increased twice in 14 years. He                                                                    
wished to see Pre-K promoted.                                                                                                   
                                                                                                                                
2:52:51 PM                                                                                                                    
                                                                                                                                
Representative Thompson  believed in  Pre-K, but  most Pre-K                                                                    
options  educated young  children for  half of  one day.  He                                                                    
stated that  the projection of  $2 million for  300 students                                                                    
was  higher  than  the  BSA. He  hoped  to  see  legislature                                                                    
address the  important issue again  when the state  is flush                                                                    
with money.                                                                                                                     
                                                                                                                                
Representative  Holmes   stated  that  she   supported  Best                                                                    
Beginnings,  Imagination Library,  Parents  as Teachers  and                                                                    
Headstart.  She  wished  to  address  education  during  the                                                                    
upcoming conversation  about the BSA. She  wished to support                                                                    
Pre-K  with  the  proposed increase,  but  would  focus  her                                                                    
education efforts on the K-12 system.                                                                                           
                                                                                                                                
2:55:09 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  reminded   that  the  pilot  program                                                                    
should  apply funding  to different  types of  preschools to                                                                    
enable further information for  the department. She wondered                                                                    
about expenses related to other  increases.  She stated that                                                                    
the program  cost the state  approximately $16  thousand per                                                                    
student.  She  explained  that  the  funding  would  address                                                                    
voluntary  preschools.  She  noted that  the  Department  of                                                                    
Health  and Social  Services was  also responsible  for some                                                                    
childcare funding. She mentioned  that many bush communities                                                                    
raised  their own  funds  for Pre-K  efforts.  She shared  a                                                                    
story about educating her 4  year old granddaughter at home.                                                                    
She argued  that Pre-K  could be addressed  in a  variety of                                                                    
different  ways.  She  encouraged   the  committee  to  vote                                                                    
against the amendment.                                                                                                          
                                                                                                                                
2:58:33 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg supported  the amendment  because                                                                    
he  felt  that  all  children deserved  the  opportunity  to                                                                    
benefit  from the  grants. He  spoke to  the benefit  of the                                                                    
Imagination Library  and Best Beginnings. He  shared a story                                                                    
about a young  girl at the post office  with her Imagination                                                                    
Library book.                                                                                                                   
                                                                                                                                
3:00:15 PM                                                                                                                    
                                                                                                                                
Representative Gara  corrected that  the funds did  not have                                                                    
to go  to the  most expensive Pre-K  option. He  stated that                                                                    
Parents as  Teachers cost a  fraction of the  funds required                                                                    
for a  Pre-K classroom. The  grant funds could  be allocated                                                                    
for  Parents as  Teachers. The  Department of  Education and                                                                    
Early  Development  would  administer  the  grants.  If  the                                                                    
department  achieved a  more  expensive  program, the  money                                                                    
could be used for Pre-K programs that were more efficient.                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg, Edgmon                                                                                              
OPPOSED:  Holmes,    Munoz,   Neuman,    Thompson,   Wilson,                                                                    
Costello, Austerman, Stoltze                                                                                                    
                                                                                                                                
The MOTION FAILED (3/8).                                                                                                        
                                                                                                                                
3:01:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 23:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
    OFFERED BY:    Representatives Guttenberg and Gara                                                                          
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Budget    Reductions/Additions    -                                                                    
     Systemwide                                                                                                                 
                                                                                                                                
     ADD:      $424,500         ($357,100 UGF 1004 /                                                                            
     $67,400 UNIV RCPT 1048)                                                                                                    
                                                                                                                                
     EXPLANATION:   This   increment   will   complete   the                                                                    
     mandatory  comprehensive  advising program  across  the                                                                    
     University of Alaska.                                                                                                      
                                                                                                                                
     UAF College of Rural  and Community Development Student                                                                    
     Advisors                                                                                                                   
     UAF CRCD  campuses deliver courses that  allow students                                                                    
     to  receive education  and training  in  or near  their                                                                    
     home   community.   Rural   campuses   offer   students                                                                    
     certificate and associate degree  programs that lead to                                                                    
     jobs  and  the  preparation  needed to  transfer  to  a                                                                    
     baccalaureate   program   if  desired.   This   project                                                                    
     supports  two  student advisors  to  be  housed at  the                                                                    
     Bristol  Bay Campus  and Kuskokwim  campus. A  Research                                                                    
     Specialist  will also  be supported  to perform  degree                                                                    
     audits,  so  that  student advisors  can  contact  non-                                                                    
     completing, degree-seeking  students to  encourage them                                                                    
     to complete their degree.                                                                                                  
                                                                                                                                
     UAS First Year Advisor                                                                                                     
     The goal  of this position  is to continue  to increase                                                                    
     the retention of first-year students.                                                                                      
     The most critical transition  in every student's career                                                                    
     happens during the first six weeks.                                                                                        
                                                                                                                                
     This position will deliver  services directed solely to                                                                    
     first-year-students such as:                                                                                               
     •  Teach  first-year  courses that  are  currently  not                                                                    
     offered, building off new student                                                                                          
     orientation.                                                                                                               
     •  Take   a  leading  role  in   delivering  a  student                                                                    
     leadership program focused on first year                                                                                   
     students.                                                                                                                  
     •  Manage  and  integrate critical  student  transition                                                                    
     efforts that are currently offered on an ad hoc basis.                                                                     
                                                                                                                                
     UAS Disability Support Provider                                                                                            
     Students  seeking accommodations  for disabilities  are                                                                    
     one of  the fastest growing sub-populations  at UAS. On                                                                    
     the Juneau  campus, there  has been  a 73%  increase in                                                                    
     requests from 2009 to 2012.  This increment is critical                                                                    
     to fulfilling our  student learning mission, especially                                                                    
     when  the new  120-  bed residence  hall  fills with  a                                                                    
     diverse pool  of traditional-age full-time  students in                                                                    
     the  fall  of   2014.  Currently  UAS  has   a  .5  FTE                                                                    
     professional staff dedicated  to providing this service                                                                    
     and has been utilizing  temporary hires to meet current                                                                    
     needs. These positions will have  a direct and positive                                                                    
     impact   on   retention   rates,  credit   hours,   and                                                                    
     efficiency of student services.                                                                                            
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Guttenberg  explained   that  the  amendment                                                                    
would  increase  advisors   in  three  different  university                                                                    
campuses.  He   discussed  reports  from   college  students                                                                    
claiming  that  an advisor  offered  the  necessary help  to                                                                    
allow  them to  succeed.  He noted  that  the advisors  were                                                                    
placed  in  the different  locations  to  help students  and                                                                    
increase the  retention rate  allowing the  state investment                                                                    
to  flourish. He  opined that  the advisor  program operated                                                                    
efficiently  by   incentivizing  education   for  university                                                                    
students in Alaska.                                                                                                             
                                                                                                                                
Representative   Munoz  believed   that   the  program   was                                                                    
worthwhile. She  reminded the committee that  the university                                                                    
had the  authority to move  funds within the  system through                                                                    
the  authority of  the single  appropriation. She  supported                                                                    
efforts  to add  counselling funds.  She recalled  that $544                                                                    
thousand  was added  in FY  13  to a  program called  Making                                                                    
Achievement  Possible.  Four permanent  full-time  positions                                                                    
were added. She  continued that $873 thousand  was added for                                                                    
student  support services  for  comprehensive advising  that                                                                    
paid  for 8  permanent  full-time positions  in  FY 13.  She                                                                    
mentioned that an addition of  $125 thousand for an advisory                                                                    
position  for performance  success was  offered in  the same                                                                    
year.  In FY  14, the  effort was  expanded to  include $400                                                                    
thousand in mandatory comprehensive  student advising at UAS                                                                    
and  positions  at  Anchorage,  Kodiak,  Mat-Su,  Kenai  and                                                                    
Valdez. She  requested that the  committee vote  against the                                                                    
amendment.                                                                                                                      
                                                                                                                                
3:05:52 PM                                                                                                                    
                                                                                                                                
Representative Gara  stated that retaining  students through                                                                    
their first year of college allowed  them to attain a two or                                                                    
four year  degree. The  program worked  in other  places and                                                                    
the amendment  would allow funding  to complete  the program                                                                    
at University  of Alaska Southeast and  University of Alaska                                                                    
Fairbanks.  He  stated  that the  graduation  rate  for  the                                                                    
university  was  approximately   26  percent.  The  national                                                                    
public  college   graduation  rate   was  56   percent.  The                                                                    
amendment was  aimed at repairing  the problem at a  cost of                                                                    
$357  thousand. He  agreed  with  Representative Munoz  that                                                                    
other  campuses  had  the   advisor  positions  funded.  The                                                                    
amendment  would   allow  for  statewide  advisors   in  the                                                                    
university.  He  added that  the  request  was made  by  the                                                                    
Regents.                                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Guttenberg, Gara                                                                                                      
OPPOSED: Holmes, Munoz, Neuman, Thompson, Wilson, Costello,                                                                     
Edgmon, Stoltze, Austerman                                                                                                      
                                                                                                                                
The MOTION FAILED (2/9).                                                                                                        
                                                                                                                                
3:08:29 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 24:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
    OFFERED BY:    Representatives Guttenberg and Gara                                                                          
                                                                                                                                
     DEPARTMENT:         University of Alaska                                                                                   
     APPROPRIATION:      University of Alaska                                                                                   
     ALLOCATION:         Anchorage Campus                                                                                       
                                                                                                                                
     ADD:      $727,900      ($652,900 UGF 1004  / $75,000                                                                      
     UNIV RCPT 1048)                                                                                                            
                                                                                                                                
     EXPLANATION:   This increment will  provide funding for                                                                    
     the Alaska Area Health  Education Center (AHEC) program                                                                    
     that    provides    critical    healthcare    workforce                                                                    
     development  activities  in   each  region  across  the                                                                    
     state.                                                                                                                     
                                                                                                                                
     The AHEC  System is key  to growing,  strengthening and                                                                    
     diversifying the  healthcare workforce. AHEC  is housed                                                                    
     at the  University of Alaska Anchorage  and the Program                                                                    
     Office  sets the  direction  for  annual and  long-term                                                                    
     performance. AHEC centers are  located in five regions:                                                                    
     Southcentral,    Southeast,   Northwest,    the   Yukon                                                                    
     Kuskokwim Delta,  the Interior  and the  Program Office                                                                    
     in Anchorage.                                                                                                              
                                                                                                                                
     AHEC  activities   use  the  Alaska   Health  Workforce                                                                    
     Coalition's  strategies to  engage, train,  recruit and                                                                    
     retain healthcare workers.                                                                                                 
                                                                                                                                
     The  AHECs use  live and  distance-delivered continuing                                                                    
     education  and  training opportunities,  health  career                                                                    
     presentations and job  fairs, job shadows, internships,                                                                    
     clinical   rotations,   preceptor  /   clinical   coach                                                                    
     development and health career  camps, each according to                                                                    
     regional needs.                                                                                                            
                                                                                                                                
     Engaging Potential Healthcare Professionals:                                                                               
     AHECS  reached 816  students and  64% stated  they were                                                                    
     more  interested  in  health  careers  after  the  AHEC                                                                    
     activity.  AHECs  also   coordinated  245  job  shadows                                                                    
     across Alaska.                                                                                                             
                                                                                                                                
     Training Healthcare Professionals:                                                                                         
     AHECS  coordinated and  funded  225 clinical  rotations                                                                    
     and  developed   six  new  clinical   sites,  expanding                                                                    
     Alaska's  capacity for  training  students and  getting                                                                    
     them through school.                                                                                                       
                                                                                                                                
     Recruiting Healthcare  Professionals to Work  in Alaska                                                                    
     Communities:                                                                                                               
     The  Department  of  Labor  and  Workforce  Development                                                                    
     provided   data  to   assess  programmatic   impact  by                                                                    
     tracking how  many students since  2006 are  working in                                                                    
     Alaska.  1,089 students  have graduated  and 843  (77%)                                                                    
     are working in  Alaska. 18% work in a  rural borough or                                                                    
     census  area. This  percentage  is considerably  higher                                                                    
     than  average  rural  recruitment  rates,  which  range                                                                    
     nationally between 8-12%.                                                                                                  
                                                                                                                                
     Retaining Alaska's Healthcare Professionals:                                                                               
     AHEC's   workforce   retention  strategy   centers   on                                                                    
     providing and improving  access to continuing education                                                                    
     and professional  development. This strategy  is widely                                                                    
     recognized as  a key to health  workforce retention. In                                                                    
     2013, 1,171 unique  participants attended AHEC training                                                                    
     and professional  development and  45% were  from rural                                                                    
     communities.   The   Rural  Veterans'   Health   Access                                                                    
     trainings  touched  108  providers and  309  additional                                                                    
     participated  in the  Alzheimer's  training series,  of                                                                    
     which  56% reported  a plan  to implement  a change  in                                                                    
     their practice.                                                                                                            
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Guttenberg  discussed the growing  segment of                                                                    
healthcare.  The  amendment  for   the  Alaska  Area  Health                                                                    
Education  Center  (AHEC)  would help  guide  students  into                                                                    
healthcare  tracks. He  noted that  AHEC was  recognized for                                                                    
efficiency in  distant learning, training  opportunities and                                                                    
clinical placement. He  compared the program to  a job fair.                                                                    
He  noted  that  the  program  focused  students  on  career                                                                    
opportunities  in deficient  fields. He  discussed the  high                                                                    
cost of locum healthcare providers.                                                                                             
                                                                                                                                
Representative Guttenberg spoke to  the benefit of retaining                                                                    
local community  members. He  noted that  the health  of the                                                                    
state was stronger with the  local health care providers. He                                                                    
spoke  about  the  various communities  with  strategies  to                                                                    
train  and  retain  with   distance  learning.  The  program                                                                    
encouraged students to follow the career tracks.                                                                                
                                                                                                                                
3:11:11 PM                                                                                                                    
                                                                                                                                
Representative  Munoz  stated   that  the  university  could                                                                    
approve  the   funding  through  the   single  appropriation                                                                    
authority   granted.   She    highlighted   the   healthcare                                                                    
certificate  and  degree  programs.   She  spoke  to  FY  10                                                                    
approval  of  $1  million  for  health  occupation  training                                                                    
programs  and   $2.2  million   for  the   graduate  medical                                                                    
education  family practice  residency. In  FY 13,  the state                                                                    
approved  $429   thousand  for  the  University   of  Alaska                                                                    
Anchorage nurse  practitioner program and $390  thousand for                                                                    
the   physical  therapy   program.   She   added  that   the                                                                    
legislature approved funding for  the Bristol Bay campus for                                                                    
expansion of  the nursing  program in  FY 14.  She requested                                                                    
that the committee vote against the amendment.                                                                                  
                                                                                                                                
Representative  Gara stated  that  the single  appropriation                                                                    
methodology  might be  effective in  another year.  He noted                                                                    
that  the university  was receiving  $15  million less  this                                                                    
year  than  last.  He  stated   that  the  operating  budget                                                                    
included  $15  million  less than  the  governor's  proposed                                                                    
budget.  He was  unsure  about where  the  money would  come                                                                    
from.  He   suggested  cutting  the  physical   therapy  and                                                                    
engineering programs.  The single appropriation  concept was                                                                    
an unsure prospect with less funding in the budget.                                                                             
                                                                                                                                
3:13:51 PM                                                                                                                    
                                                                                                                                
Representative Munoz  stated that the  subcommittee approved                                                                    
the negotiated  labor contracts and operational  funding for                                                                    
the  Mat-Su  and  University   of  Alaska  Anchorage  sports                                                                    
facility. She  believed that the  reductions were  closer to                                                                    
$11 million.                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg                                                                                                      
OPPOSED:  Holmes,    Munoz,   Neuman,    Thompson,   Wilson,                                                                    
Costello, Edgmon, Austerman, Stoltze                                                                                            
                                                                                                                                
The MOTION FAILED (2/9).                                                                                                        
                                                                                                                                
3:15:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman MOVED to ADOPT Amendment 25:                                                                                 
                                                                                                                                
     FY15 OPERATING BUDGET AMENDMENT                                                                                            
                                                                                                                                
     OFFERED IN:    The House Finance Committee                                                                                 
                                                                                                                                
     TO:            HB 266 / HB 267                                                                                             
                                                                                                                                
    OFFERED BY:    Representatives Guttenberg and Gara                                                                          
                                                                                                                                
     DEPARTMENT:         Health and Social Services                                                                             
    APPROPRIATION:      Senior and Disability Services                                                                          
     ALLOCATION:         Senior Community Based Grants                                                                          
                                                                                                                                
     ADD: $325,000 GF (1004)                                                                                                    
                                                                                                                                
     EXPLANATION:   This  amendment   will  help   fund  the                                                                    
     Caregiver  Support Program.  This program  is available                                                                    
     to unpaid family caregivers of  persons age 60 and over                                                                    
     and  to  grandparents  or  older  individuals  who  are                                                                    
     relative caregivers of a child  who is not more than 18                                                                    
     years of age.   The program helps keep  Alaskans out of                                                                    
     institutional  care  by  providing  respite,  caregiver                                                                    
     training, equipment and home modifications.                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Guttenberg discussed  the amendment  and the                                                                    
grant  to  support unpaid  caregivers.  He  pointed out  the                                                                    
rising number of seniors in  the state. He discussed a chart                                                                    
he  viewed  earlier  in  committee  displaying  the  growing                                                                    
expense  of  programs.  He discussed  smart  funding,  which                                                                    
allowed people to  remain in a lower portion  of the expense                                                                    
scale. He  stressed the importance of  supporting people who                                                                    
were doing  the work  themselves. He spoke  about caregivers                                                                    
helping  with dementia  and those  caring for  children with                                                                    
disabilities.  The  funding  added in  the  amendment  would                                                                    
support  the  effort.  He  noted  that  each  Alaskan  would                                                                    
eventually  face similar  situation. He  noted that  similar                                                                    
programs simply  supported the efforts  of other  people. He                                                                    
opined that  the efforts  were cost  effective and  added to                                                                    
the  quality of  life for  all Alaskans.  He added  that the                                                                    
program  expansion would  allow more  seniors and  people in                                                                    
need to benefit  from the services. He urged  the support of                                                                    
the committee.                                                                                                                  
                                                                                                                                
3:19:32 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  agreed that the program  was important to                                                                    
Alaskan seniors and was funded  at $1,026,600. The amendment                                                                    
included  additional funds  that were  not requested  by the                                                                    
department.  He referred  to current  budget restraints.  He                                                                    
requested that members vote against the amendment.                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg                                                                                                      
OPPOSED: Munoz, Neuman,  Thompson, Edgmon, Wilson, Costello,                                                                    
Holmes, Stoltze, Austerman                                                                                                      
                                                                                                                                
The MOTION FAILED (2/9).                                                                                                        
                                                                                                                                
3:21:42 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:22:41 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Austerman thanked  the  committee  for their  hard                                                                    
work.  He stated  that the  CS with  incorporated amendments                                                                    
would be  available in the  morning with the final  bill. He                                                                    
spoke about prior  years' 7.2 percent average  growth of the                                                                    
state  operating  budget. The  goal  in  2013 was  for  zero                                                                    
growth as recommended by the  governor. In 2014 the governor                                                                    
proposed a $30 million cut  to the operational agencies. The                                                                    
CS reflected an approximately  $50 million reduction from FY                                                                    
14's  budget.  He stressed  the  need  to  get a  handle  on                                                                    
overall spending. The  budget in front of  the committee was                                                                    
a portion of the overall budget.  He pointed out that the FY                                                                    
13 budget was  $1.3 billion. Last year's  capital budget was                                                                    
reduced  to $798  million. He  anticipated a  budget in  the                                                                    
$500 million range.                                                                                                             
                                                                                                                                
Co-Chair  Austerman recalled  predictions that  a correction                                                                    
for $1 billion  shortfall would be indicated in  FY 15, when                                                                    
the shortfall was indeed $2.3  billion. He stressed the need                                                                    
to get  a hold of  the budgets  to move the  process forward                                                                    
and avoid accessing another funding source.                                                                                     
                                                                                                                                
3:26:34 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  thanked Co-Chair  Austerman  for                                                                    
forcing the  issue of slowing  the growth of  government. He                                                                    
believed  that government  should be  doing what  the people                                                                    
need  with the  greatest  efficiency.  He acknowledged  that                                                                    
Vice-Chair  Neuman   had  a   difficult  job   chairing  the                                                                    
Department of Health and Social  Services and the Department                                                                    
of Transportation and Public Facilities subcommittees.                                                                          
                                                                                                                                
3:27:42 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  discussed the progressivity  factor built                                                                    
into the budget. He advocated  for working together to brace                                                                    
for  the future.  He expressed  concern about  effects of  a                                                                    
reduced  budget to  communities. He  stated that  control of                                                                    
the  operating budget  would provide  necessary funding  for                                                                    
infrastructure  projects. He  reviewed the  message sent  to                                                                    
industry with an expanding operating  budget. He wondered if                                                                    
the  state  appeared  as  an  attractive  endeavor  for  the                                                                    
industry.   The  state's   bills  were   paid  by   resource                                                                    
development. He  hoped for larger  projects in the  state to                                                                    
increase   employment   opportunities   for   Alaskans.   He                                                                    
discussed  the  effects on  the  family  unit of  a  reduced                                                                    
Department of Health and Social  Services budget. He enjoyed                                                                    
the challenge  of working  on the  Department of  Health and                                                                    
Social Services budget.                                                                                                         
                                                                                                                                
3:32:16 PM                                                                                                                    
                                                                                                                                
Representative  Gara  thanked   the  committee  members  for                                                                    
working with  the minority. He  appreciated the  good nature                                                                    
of his fellow legislators.                                                                                                      
                                                                                                                                
Co-Chair Austerman expected  closing comments from committee                                                                    
members tomorrow.                                                                                                               
                                                                                                                                
Representative Wilson  stated that obtaining data  about the                                                                    
Youth  First   Program  was  not  her   responsibility.  She                                                                    
expressed  dismay about  the lack  of data  provided by  the                                                                    
departments. She  stated that decisions could  be made based                                                                    
on numbers or data  regarding the effectiveness of programs.                                                                    
She required  accurate data  regarding the  effectiveness of                                                                    
programs.  She   required  better  communication   with  the                                                                    
departments.  Without evidence  of  success,  a program  was                                                                    
eligible for elimination.                                                                                                       
                                                                                                                                
3:37:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze   MOVED  to  authorize  the   Division  of                                                                    
Legislative Finance  and Legislative Legal Services  to make                                                                    
technical and conforming  changes to both HB 266  and HB 267                                                                    
to incorporate the amendments  adopted today. There being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:38:29 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:38 p.m.                                                                                          

Document Name Date/Time Subjects
HB 266 Public Testimony.pdf HFIN 3/11/2014 1:30:00 PM
HB 266
HB 266 COMPILED TESTIMONY.pdf HFIN 3/11/2014 1:30:00 PM
HB 266
HFIN HB 266 and HB267 testimony 3-3-14 Ecklund and Brown scripts.docx HFIN 3/11/2014 1:30:00 PM
HB 266
HB 267
HB 266 Public Testimony cont..PDF HFIN 3/11/2014 1:30:00 PM
HB 266
HB 266 HB 267 Operating Budget Amendments.pdf HFIN 3/11/2014 1:30:00 PM
HB 266
HB 267
HB 266 HB 267 Budget Amendments with ACTIONS.pdf HFIN 3/11/2014 1:30:00 PM
HB 266
HB 267