Legislature(2017 - 2018)HOUSE FINANCE 519

03/09/2017 01:30 PM FINANCE

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Audio Topic
01:35:44 PM Start
01:36:45 PM HB57 || HB59
01:36:55 PM Amendments: All Remaining
04:35:36 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 3/10/17 at 8:30 AM --
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
May recess to Sunday 3/12/17 at 12:00 PM, if
necessary
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 9, 2017                                                                                            
                         1:35 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:35:44 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Seaton called the House Finance Committee meeting                                                                      
to order at 1:36 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Les Gara, Vice-Chair                                                                                             
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 57     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 57 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 59     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 59 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
Co-Chair Seaton addressed the agenda for the meeting.                                                                           
                                                                                                                                
HOUSE BILL NO. 57                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 57                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:36:45 PM                                                                                                                    
                                                                                                                                
^AMENDMENTS: ALL REMAINING                                                                                                    
                                                                                                                                
1:36:55 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DPS 3                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Fire and Life Safety                                                                                                       
     H DPS 3 - Personal Services Reduction                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Two  positions were  deleted by  the  Department and  a                                                                    
     general fund reduction of $120,000  was taken. The full                                                                    
     FY 17 budgeted cost of  the positions is $237,733. This                                                                    
     amendment  deletes  $117,733  from  the  FY  18  budget                                                                    
     request  in the  Personal Services  line for  the funds                                                                    
     retained  by the  Department associated  with positions                                                                    
     deleted.                                                                                                                   
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson  MOVED  to  AMEND  the  amendment  to                                                                    
change  the  General  Fund  (GF) code  to  1005  GF  program                                                                    
receipts instead of GF.                                                                                                         
                                                                                                                                
Vice-Chair  Gara  OBJECTED.  He  asked  for  detail  on  the                                                                    
program receipts.                                                                                                               
                                                                                                                                
Representative Wilson  explained that what had  not been cut                                                                    
from   the  agencies   was  GF   program  receipts.   During                                                                    
discussion on  Amendment H DPS  3 she wanted to  ensure they                                                                    
were  addressing the  correct  fund source  and amount.  She                                                                    
would discuss  Vice-Chair Gara's question  during discussion                                                                    
on the full amendment.                                                                                                          
                                                                                                                                
Vice-Chair Gara  WITHDREW his OBJECTION to  the Amendment to                                                                    
Amendment H DPS 3. There  being NO further OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
1:38:12 PM                                                                                                                    
                                                                                                                                
Representative  Wilson stated  that two  positions had  been                                                                    
deleted  by  the  department, but  GF  program  receipts  of                                                                    
$117,733 had  not been removed.  The amendment  would delete                                                                    
the funding.                                                                                                                    
                                                                                                                                
Representative   Kawasaki  spoke   in   opposition  to   the                                                                    
amendment.  He  agreed  that the  funding  pertained  to  50                                                                    
percent  program   receipts  and  50   percent  undesignated                                                                    
general  funds (UGF).  The agency  had received  millions of                                                                    
dollars in cuts since 2014.  He detailed that the department                                                                    
had deleted  the full UGF  portion of the two  positions and                                                                    
the amendment  would further remove UGF  not associated with                                                                    
the positions.                                                                                                                  
                                                                                                                                
Representative Wilson clarified  that the department removed                                                                    
$120,000 GF for  the two positions, but  GF program receipts                                                                    
of $117,700  had remained. She reasoned  that the department                                                                    
could  have   utilized  the  remaining  funds   for  another                                                                    
position and  had taken it  as UGF; however,  the department                                                                    
had not elected to do so.  She believed an increase had been                                                                    
maintained even after the deletion of the two positions.                                                                        
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn,  Guttenberg, Kawasaki, Ortiz,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt H DPS 3 as amended FAILED (4/7).                                                                            
                                                                                                                                
1:40:34 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DPS  6                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska Bureau of Highway Patrol                                                                                            
     H DPS 6 - Personal Services Reduction                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     PCN  12-1979 was  deleted by  the Department,  however,                                                                    
     the funding  for this position was  not. This amendment                                                                    
     reduces the FY 18 budget  request in this allocation by                                                                    
     the amount budgeted for the position in FY 17.                                                                             
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative   Kawasaki  spoke   to   his  objection.   He                                                                    
underscored that  the department  had suffered  severe cuts,                                                                    
albeit not  as severe as  some other agencies.  He specified                                                                    
that  in 2013  the  total  agency budget  GF  had been  $179                                                                    
million; the  current request was  down to $156  million. He                                                                    
stated  that Colonel  Jim  Cockrell  [Director, Division  of                                                                    
Alaska  State Troopers,  Department  of  Public Safety]  had                                                                    
testified  about  worrying  the  department  would  lose  an                                                                    
officer  due to  budget cuts.  The department  did not  have                                                                    
backup  officers  within  rural and  urban  communities.  As                                                                    
municipalities were  shrinking their budgets  to accommodate                                                                    
for  less economic  activity, it  meant local  police forces                                                                    
were  also   starting  to  make  cuts   (Anchorage  was  the                                                                    
exception).  All the  cuts were  hurting the  performance of                                                                    
public  safety  across  the  state.  He  reminded  committee                                                                    
members that a few years  back there were over 328 officers;                                                                    
under the proposed  budget there were 296, which  was a huge                                                                    
decrease.  He added  that there  were also  vacancies within                                                                    
the agency.                                                                                                                     
                                                                                                                                
Representative Kawasaki  continued that it was  difficult to                                                                    
hire law  enforcement nationwide for many  reasons. He noted                                                                    
they were  trying to  address the issues  in the  budget and                                                                    
legislatively. The  amendment would  remove $57  million UGF                                                                    
in FY 19 in CIP  [capital improvement project] receipts from                                                                    
the Alaska  Bureau of Highway  Patrol. He expounded  that in                                                                    
the  FY  17  unallocated  reductions  there  had  been  over                                                                    
$605,000 reduced from the state  trooper detachment that had                                                                    
deleted one captain  and four support positions.  One of the                                                                    
positions   had   been   the  Anchorage   criminal   justice                                                                    
technician  and   another  had   been  a   Fairbanks  office                                                                    
assistant  who had  been  responsible  for ensuring  reports                                                                    
were  completed.  He  stressed  that the  funding  had  been                                                                    
deleted in the  FY 17 management plan and  the amendment was                                                                    
a  further deletion  of support  for the  Bureau of  Highway                                                                    
Patrol.                                                                                                                         
                                                                                                                                
Vice-Chair  Gara  asked the  amendment  sponsor  if she  had                                                                    
spoken  to  the department  about  the  issue. He  stated  a                                                                    
position had been deleted in  highway patrol and the funding                                                                    
had been deleted.  He had spoken to  the Legislative Finance                                                                    
Division  (LFD)  and  believed  the  PCN  [position  control                                                                    
number]  may  have  been incorrect.  He  stressed  that  the                                                                    
amendment  would meant  the loss  of another  highway patrol                                                                    
officer.                                                                                                                        
                                                                                                                                
Representative  Wilson provided  wrap up.  She answered  she                                                                    
had spoken  to the department.  She stated that  the funding                                                                    
had not  been taken out.  The amendment had been  changed to                                                                    
GF  because  the  $57,000 had  been  underneath  the  Alaska                                                                    
transportation management  fund code  (1249), which  did not                                                                    
currently  exist because  legislation had  not been  passed.                                                                    
She clarified that  her amendment would not  remove the PCN,                                                                    
the  PCN  that  had  been  removed  by  the  department  was                                                                    
correct. She reiterated that the  money had been left in and                                                                    
had merely been coded differently.                                                                                              
                                                                                                                                
1:45:35 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg,  Kawasaki, Ortiz, Gara,  Grenn, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DPS 6 FAILED (4/7).                                                                             
                                                                                                                                
1:46:12 PM                                                                                                                    
                                                                                                                                
Representative  Ortiz WITHDREW  Amendment H  DPS 9  (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  11                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Prisoner Transportation                                                                                                    
     H DPS 11 - Prisoner Transportation Savings                                                                                 
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces  the Services line in  the FY 18                                                                    
     budget request  by $258,000 to align  expenditures with                                                                    
     the  FY  17  Management   Plan  level.  This  amendment                                                                    
     reduces  the   amount  paid  to  the   Alaska  Wildlife                                                                    
     Troopers  Aircraft Section  for the  use of  the Public                                                                    
     Safety  aircraft  to  transport prisoners.  The  FY  17                                                                    
     Management  Plan has  a budget  of  $345,000 for  these                                                                    
     services and the FY 18  budget request is $603,000. The                                                                    
     Department's FY 18 budget  request includes a reduction                                                                    
     in travel  in anticipation  of fewer  transports. These                                                                    
     reductions are anticipated to occur  as a result of the                                                                    
     implementation  of  criminal   justice  reform  efforts                                                                    
     under  SB 91  and increased  use of  video conferencing                                                                    
     between   correctional   facilities  and   courts   for                                                                    
     arraignments and routine  hearings. Therefore, if fewer                                                                    
     transports   are  anticipated,   there   should  be   a                                                                    
     reduction in charges to  the Wildlife Troopers Aircraft                                                                    
     Section for prisoner transports.                                                                                           
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson explained  the  amendment related  to                                                                    
prisoner  transportation  savings.  She read  the  amendment                                                                    
description [see above].                                                                                                        
                                                                                                                                
Representative  Kawasaki was  opposed to  the amendment.  He                                                                    
shared  that  DPS  had indicated  during  testimony  it  had                                                                    
already cut $500,000 from the  travel line allocation in the                                                                    
FY  18  budget  in  anticipation of  fewer  transports.  The                                                                    
additional $258,000  reduction would  hamper the  efforts of                                                                    
the  prisoner  transport  line. He  agreed  there  would  be                                                                    
increased  use  of  videoconferencing  between  correctional                                                                    
facilities,  but the  amendment would  not leave  sufficient                                                                    
funds to properly administer justice.  He continued that the                                                                    
amendment would  result in individuals in  remote areas that                                                                    
would  have  to wait  in  a  costly community  jail  setting                                                                    
before arraignment.  He spoke to the  importance of ensuring                                                                    
that SB  91 [justice reform legislation  passed the previous                                                                    
year]  worked  properly  and   that  the  administration  of                                                                    
justice was done equally throughout the state.                                                                                  
                                                                                                                                
Representative Wilson  provided wrap up. She  stated that SB                                                                    
91 had  not existed  in FY  17 and  the management  plan had                                                                    
only required  $345,000 to  do the  work. She  reasoned that                                                                    
the  department had  given no  indication during  the budget                                                                    
subcommittee process  that it  would not be  able to  do the                                                                    
work with the  funding. She noted that many  of the budgeted                                                                    
amounts were  much higher for  FY 18. She continued  that FY                                                                    
17 was high  compared to FY 15. She  believed the department                                                                    
was giving  itself significant padding. She  remarked on the                                                                    
removal of $500,000  from a budgeted amount  and believed it                                                                    
was  money the  department never  anticipated using.  It was                                                                    
hard to understand why the numbers  were made so high in the                                                                    
budgeted portion and the actuals were much lower.                                                                               
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                               
OPPOSED: Ortiz, Gara, Guttenberg, Kawasaki, Foster, Seaton                                                                      
                                                                                                                                
The MOTION to adopt Amendment H DPS 11 FAILED (5/6).                                                                            
                                                                                                                                
1:50:37 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  16                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Drug and Alcohol Enforcement Unit                                                                                
                                                                                                                                
     H DPS 16 - Eliminate General Match for Federal                                                                             
     Forfeiture of Seized Assets                                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment eliminates state funds used as general                                                                      
     match for federal forfeitures of seized assets.                                                                            
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative   Kawasaki   spoke   in  objection   to   the                                                                    
amendment. The  amendment pertained to  a GF match  used for                                                                    
the personal  services line, specifically for  the Statewide                                                                    
Drug and  Alcohol Enforcement  Unit, which  was administered                                                                    
through a  federal justice assistance  grant awarded  by the                                                                    
Department  of  Justice several  years  back.  There was  no                                                                    
specific  formula  required for  the  match,  but the  match                                                                    
represented  necessary   GF  funding   to  fully   fund  all                                                                    
positions that were not currently funded through the grant.                                                                     
                                                                                                                                
Representative Wilson  explained that  in the past  when the                                                                    
state  could not  make its  case pertaining  to forfeitures,                                                                    
the  federal government  took over.  She  believed that  was                                                                    
wrong. She did not  support utilizing the federal government                                                                    
to go  after Alaskans  because the  state was  lacking state                                                                    
law to back  up what they were trying to  do or the evidence                                                                    
they  need.  She  did  not support  state  funding  for  the                                                                    
federal government  to seize assets  of individuals  who may                                                                    
be guilty, but of individuals who may also be innocent.                                                                         
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn,  Guttenberg, Kawasaki, Ortiz,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DPS 16 FAILED (4/7).                                                                            
                                                                                                                                
1:53:04 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  19                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska State Trooper Detachments                                                                                           
     H DPS  19 -  Reduce Funding  for Relocation  Offered by                                                                    
     Representative Wilson                                                                                                      
                                                                                                                                
     This  amendment deletes  the FY  18  Budget request  of                                                                    
     $725,000  in  the Travel  line  item  for Alaska  State                                                                    
     Trooper  moving  costs.  These costs  include  shipping                                                                    
     household  goods,  per   diem,  airfare  and  temporary                                                                    
     lodging costs  for transfers of  commissioned officers,                                                                    
     new  recruits   and  their  families.   With  declining                                                                    
     revenues, the  state should eliminate expenses  of this                                                                    
     nature that do not pose a threat to public safety and                                                                      
     the protection of its citizens.                                                                                            
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative Kawasaki  spoke to his objection.  He relayed                                                                    
the  amendment would  completely remove  relocation expenses                                                                    
for  troopers  and  wildlife troopers.  The  department  had                                                                    
stopped paying  for employees  they hired  who lived  out of                                                                    
state,  which  cost approximately  $200,000  in  FY 16;  the                                                                    
benefit was no longer  offered. The department was obligated                                                                    
under  existing  collective  bargaining  agreements  to  pay                                                                    
moving costs,  especially when troopers located  in one area                                                                    
of the  state were forced  to relocate themselves  and their                                                                    
families to  other areas. He believed  passing the amendment                                                                    
would be  unwise and  was outside the  scope of  the current                                                                    
collective bargaining  agreement between the state  and PSEA                                                                    
[Public Safety Employees Association].                                                                                          
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She spoke to  what she had heard in  committee. She stressed                                                                    
that the state  trained many individuals to  be troopers and                                                                    
they did not stay. The committee  had been told that many of                                                                    
the troopers  left for employment  with the  Municipality of                                                                    
Anchorage. She did  not support that there  was no agreement                                                                    
a trooper would remain in  state employment for a designated                                                                    
timeframe when the costs were  paid. She discussed investing                                                                    
the money and  then losing the employees; she  would be more                                                                    
supportive if  the employees were  required to stay  for one                                                                    
or two years.  She wanted to ensure the  state was recouping                                                                    
something for the cost it  was putting in. She stressed that                                                                    
when money  was tight it  was necessary to consider  why the                                                                    
money was  still being  spent in a  particular area,  why it                                                                    
had been  spent there in the  first place, and if  there was                                                                    
another  option. She  was concerned  the state  was spending                                                                    
substantial  money on  training  and was  not receiving  the                                                                    
benefit because  individuals were  leaving the job  they had                                                                    
been trained for.                                                                                                               
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg,  Kawasaki, Ortiz, Gara,  Grenn, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DPS 19 FAILED (4/7).                                                                            
                                                                                                                                
1:56:41 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  21                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Bureau of Investigation                                                                                             
     H DPS 21 - Personal Services Reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The Department deleted a State  Trooper position in the                                                                    
     FY  17  amended  budget  in the  Alaska  State  Trooper                                                                    
     Detachment allocation  and added it  back in the  FY 18                                                                    
     Governor's  budget  request  in this  allocation.  This                                                                    
     amendment  deletes the  position  and associated  funds                                                                    
     from the FY 18 Budget request.                                                                                             
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative   Kawasaki  spoke   to   his  objection.   He                                                                    
explained  that  the  increment   pertained  to  a  straight                                                                    
transfer  from the  Alaska State  Trooper detachment  to the                                                                    
Alaska  Bureau of  Investigation. The  position and  funding                                                                    
had never  been deleted and  added back in. He  relayed that                                                                    
the amendment would cut an  existing trooper. The department                                                                    
had been cut from a high  of $179 million several years back                                                                    
to  $163   million.  He  stressed  the   importance  of  the                                                                    
department, especially  during the current  opioid epidemic,                                                                    
SB  91, and  public  safety threats  statewide.  He did  not                                                                    
support additional cuts to the department.                                                                                      
                                                                                                                                
Representative  Wilson thought  SB 91  was supposed  to make                                                                    
things  better,  not  worse. She  stated  that  whether  the                                                                    
position was transferred  or deleted, it was  a new position                                                                    
that she believed should be deleted.                                                                                            
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz,  Gara, Grenn, Guttenberg,  Kawasaki, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DPS 21 FAILED (4/7).                                                                            
                                                                                                                                
1:59:04 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  22                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Wildlife Troopers                                                                                                   
     H DPS 22 - Personal Services Reduction                                                                                     
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The Department  deleted PCN's  12-3166 and  12-3041 and                                                                    
     general  funds totaling  $245,800  associated with  the                                                                    
     positions.  The  FY  17  budgeted   costs  of  the  two                                                                    
     positions  total  $335,922,  therefore  this  amendment                                                                    
     deletes   an  additional   $90,122  from   the  FY   18                                                                    
     Governor's   budget   request  which   represents   the                                                                    
     remaining  funds retained  by  the  Department for  the                                                                    
     positions deleted.                                                                                                         
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative   Kawasaki  spoke   to  his   objection.  The                                                                    
department had  eliminated over  68 permanent  positions and                                                                    
14  temporary  positions.  The   department  had  moved  the                                                                    
Stimson base of operations from  Dutch Harbor to Kodiak at a                                                                    
savings of about $500,000. Trooper  posts had been closed in                                                                    
Talkeetna  and  Yakutat.  Additionally, the  department  had                                                                    
eliminated helicopter services that  were frequently used by                                                                    
wildlife  troopers  and  that should  be  doing  search  and                                                                    
rescue  in  Interior  Alaska. He  continued  that  overtime,                                                                    
patrol sea days, and patrol  flights had all been reduced by                                                                    
$200,000. He spoke about making  tactical cuts during a time                                                                    
when  crime rates  were up.  He believed  the amendment  was                                                                    
unwise.                                                                                                                         
                                                                                                                                
Representative  Wilson provided  wrap up  on the  amendment.                                                                    
She stated she  had not cut the positions.  She relayed that                                                                    
the  positions had  been deleted  and  had associated  costs                                                                    
that  should  be  trued  up.   The  department  had  removed                                                                    
$245,800, but it  had not removed other  funds. She believed                                                                    
it should  have been a  new request. The  amendment proposed                                                                    
to remove $90,122.                                                                                                              
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt                                                                                                
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt H DPS 22 FAILED (3/7).                                                                                      
                                                                                                                                
2:01:41 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H DPS 23:                                                                        
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska Wildlife Troopers                                                                                                   
     H DPS 23 - Reduce Relocation Funding                                                                                       
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  eliminates the FY 18  Budget request of                                                                    
     $255,000 for Alaska State Trooper  moving costs in this                                                                    
     allocation. These costs  include relocation assignments                                                                    
     for  State  Troopers,  shipping  household  goods,  per                                                                    
     diem,   airfare  and   temporary   lodging  costs   for                                                                    
     transfers  of commissioned  officers, new  recruits and                                                                    
     their  families.  With  declining revenues,  the  state                                                                    
     should eliminate  expenses of  this nature that  do not                                                                    
     pose a  threat to public  safety and the  protection of                                                                    
     its citizens.                                                                                                              
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative Kawasaki  spoke to  his objection.  He stated                                                                    
the amendment was similar to  a previous amendment regarding                                                                    
the Alaska State Troopers. He  detailed that Alaska Wildlife                                                                    
Troopers   were  often   required  to   move  to   different                                                                    
locations;  it  was  not  like being  a  police  officer  in                                                                    
Fairbanks where  they were not  required to  move locations.                                                                    
The  amendment would  cut the  entire  amount available  for                                                                    
relocation costs that were obligated  under state policy and                                                                    
the collective  bargaining agreements  between PSEA  and the                                                                    
state.                                                                                                                          
                                                                                                                                
Representative   Wilson   reasoned    that   Department   of                                                                    
Transportation  and Public  Facilities (DOT)  and Department                                                                    
of  Corrections  (DOC)  workers  moved  from  one  place  to                                                                    
another.  She  elaborated  that   in  many  different  state                                                                    
departments where a  person may have to relocate  for a job.                                                                    
She remarked that the state did  not pay any of those moving                                                                    
fees.  She believed  those individuals  probably needed  the                                                                    
funds even more than individuals  with a job. She questioned                                                                    
why one  group would have  moving expenses paid  and another                                                                    
group  would  not. She  speculated  that  if the  issue  was                                                                    
contractual, perhaps  one group had better  negotiators than                                                                    
others. She continued that the  state moved individuals from                                                                    
out-of-state with  no guarantee  the individuals  would stay                                                                    
despite training and  other expenses paid by  the state. She                                                                    
highlighted  that  for  many  jobs  a  time  commitment  was                                                                    
required. The state wanted to  ensure people stayed in their                                                                    
jobs for a certain timeframe.  She believed the issue needed                                                                    
to be  addressed. She elaborated  that the  state's training                                                                    
was so  good than individuals  were able to leave  for other                                                                    
jobs  in   and  out-of-state   that  they  would   not  have                                                                    
previously been eligible  for. She did not  want to continue                                                                    
training for individuals who were leaving.                                                                                      
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Pruitt, Tilton                                                                                                
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H DPS 23 FAILED (3/7).                                                                            
                                                                                                                                
2:05:21 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  28                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
     H DPS 28 - Grant Funding Reduction                                                                                         
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment reduces the  amount provided to grantees                                                                    
     of  the Village  Public Safety  Officer (VPSO)  program                                                                    
     based  on the  inability  of the  grantees  to hire  an                                                                    
     average of  ten VPSO's. The Department  stated that the                                                                    
     average  cost of  an existing  VPSO  is $183,596.  VPSO                                                                    
     turnover  substantially  exceeds  the number  of  VPSOs                                                                    
     hired and using ten as  an average number of VSPOs that                                                                    
     cannot be  hired is a  conservative number.   There are                                                                    
     currently 53  filled positions of the  78 budgeted VPSO                                                                    
     positions that  grant awards are  based on. A  chart is                                                                    
     attached  depicting  the  turnover of  VPSO's  and  the                                                                    
     number of VPSO's hired by fiscal year.                                                                                     
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson explained  the  amendment that  would                                                                    
remove funding for ten Village  Public Safety Officer (VPSO)                                                                    
positions   that   were   vacant.  The   amendment   totaled                                                                    
$1,836,000.                                                                                                                     
                                                                                                                                
Representative Kawasaki  spoke to his objection.  He relayed                                                                    
that several  years back the  state had been  providing over                                                                    
$14.4 million for  the VPSO program. He  detailed that VPSOs                                                                    
were  an  integral  part  of   the  public  safety  network,                                                                    
especially in places off the  road system. He continued that                                                                    
VPSOs  were  located in  high-crime  areas.  He stated  that                                                                    
crime rates  per 500 people in  Anchorage were approximately                                                                    
23; the crime  rate per 500 people was 125  in Ambler, 95 in                                                                    
Emmonak,  and  190  in Northway.  The  officers  provide  an                                                                    
important public service in lieu  of the fact that the state                                                                    
did not  have enough troopers  and could not afford  them in                                                                    
every   village.  The   current  and   subsequent  amendment                                                                    
pertained to the same thing  - the VPSO program went through                                                                    
13  granting agencies  across the  state that  delivered the                                                                    
services to  public safety when  troopers were unable  to do                                                                    
so. He stressed that the cut  would result in a reduction of                                                                    
VPSO services.  The positions  were vacant,  but it  was the                                                                    
intent to fill the positions.                                                                                                   
                                                                                                                                
2:07:29 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  shared that the information  had been                                                                    
brought  to him  by a  member  of the  DPS subcommittee.  He                                                                    
noted  he had  a  similar amendment.  He  detailed that  the                                                                    
vacant  positions  tended  to be  a  challenge  in  multiple                                                                    
years. The state  had been consistently giving  funding to a                                                                    
program  that  was  not  able to  fill  its  positions.  The                                                                    
concern was  that money was  not being utilized for  what it                                                                    
was intended.  He believed it was  an appropriate discussion                                                                    
to have. He  explained the goal was not to  destroy the VPSO                                                                    
program,  but  to  ensure money  to  continue  the  existing                                                                    
program  remained.   The  amendment  aimed  to   ensure  the                                                                    
legislature was  not over appropriating funds  for something                                                                    
that was not being utilized.                                                                                                    
                                                                                                                                
Co-Chair  Seaton  voiced  opposition to  the  amendment.  He                                                                    
referenced  a  memo from  the  Department  of Public  Safety                                                                    
dated  March 3,  2017 addressed  to Representative  Kawasaki                                                                    
(copy   on  file)   and  read   from  the   last  paragraph:                                                                    
"appropriating  the  funding  does not  guarantee  that  the                                                                    
positions will be filled, but  not appropriating the funding                                                                    
guarantees the positions do not exist to be filled."                                                                            
                                                                                                                                
Representative Wilson  provided wrap up. She  truly believed                                                                    
DPS  was doing  all  it  could to  fill  the positions.  She                                                                    
believed  in  the  greatness  and   necessity  of  the  VPSO                                                                    
program.  However, the  state was  losing more  than it  was                                                                    
able  to   hire.  She  stressed   there  were   26  unfilled                                                                    
positions. The  amendment would delete  10 of the  26 vacant                                                                    
positions.  She underscored  that  the  program would  still                                                                    
have available positions to fill.  She agreed there had been                                                                    
$14.4  million  in  the  program   to  start;  however,  she                                                                    
emphasized that  the state had  been unable to fill  all the                                                                    
positions  since the  program's inception.  She stated  that                                                                    
the program funding reflected that  the state could not fill                                                                    
the positions  and it  did not receive  any money  back. She                                                                    
underscored that the  money went to nonprofits  and had been                                                                    
spent on  things other than  officers. She believed  that if                                                                    
the positions  were not filled  the money should go  back to                                                                    
the state. She  underscored that funding should  not be kept                                                                    
[by  nonprofits]  or  utilized   on  something  it  was  not                                                                    
intended   for.  The   committee   had   heard  there   were                                                                    
administration charges  of up to 41  percent. She questioned                                                                    
who  charged administrative  fees  that  high. She  remarked                                                                    
that municipalities were not allowed to do so.                                                                                  
                                                                                                                                
Representative  Wilson continued  that  the amendment  would                                                                    
merely  get  rid  of  something  that  did  not  exist.  She                                                                    
observed that based  on the department's graphs  it would be                                                                    
lucky to keep  the currently filled 52 positions  and add 15                                                                    
more, which  the amendment would allow.  She speculated that                                                                    
based  on testimony,  it would  not  happen. She  reiterated                                                                    
that  the amendment  was  not against  the  program; it  was                                                                    
based  on information  provided in  committee. She  probably                                                                    
would  not have  offered the  amendment if  the appropriated                                                                    
funds were  returned to the  state when they were  not used.                                                                    
She  recalled  the  committee  had   been  told  that  about                                                                    
$183,596 went  towards each  VPSO position.  She underscored                                                                    
that the amendment was  conservative. She reminded committee                                                                    
members that the discussion had  taken place more than once.                                                                    
She did  not know any other  way to force the  nonprofits to                                                                    
give the money  back if they were unable to  hire the vacant                                                                    
positions.                                                                                                                      
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn,  Guttenberg, Kawasaki, Ortiz,  Gara, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt H DPS 28 FAILED (4/7).                                                                                      
                                                                                                                                
2:13:08 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  WITHDREW Amendment H DPS  29 (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
Representative  Pruitt MOVED  to  ADOPT Amendment  H DPS  30                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
     H DPS 30 - VPSO grants.                                                                                                    
     Offered by Representative Pruitt                                                                                           
                                                                                                                                
     It is  the intent  of the  legislature that  the monies                                                                    
     appropriated  are  for  the  sole  purpose  of  hiring,                                                                    
     training and supporting  Village Public Safety Officers                                                                    
     (VPSO).  Unexpended monies  should be  returned to  the                                                                    
     general fund.                                                                                                              
                                                                                                                                
Representative Kawasaki OBJECTED for discussion.                                                                                
                                                                                                                                
Representative  Pruitt  explained  that the  intent  was  to                                                                    
ensure  the money  appropriated by  the legislature  went to                                                                    
the sole purpose of hiring,  training, and supporting VPSOs.                                                                    
Any extra  money would be returned  to the GF. He  wanted to                                                                    
ensure the money was being used as intended.                                                                                    
Representative Kawasaki  discussed his objection.  He stated                                                                    
that funding  for the  program had  decreased over  the past                                                                    
four years.  The grant portion  had remained stable  and the                                                                    
support  component, which  included the  troopers overseeing                                                                    
the particular  positions had dropped  from $3.3  million to                                                                    
about  $1.5 million.  He agreed  that there  should be  some                                                                    
structure around the VPSO program  language. He believed the                                                                    
language   was  probably   appropriate.   He  WITHDREW   his                                                                    
OBJECTION.                                                                                                                      
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.  He was amenable to                                                                    
the amendment  with the  addition of a  couple of  words. He                                                                    
stated that sometimes  it was necessary to  build housing in                                                                    
a  community  that  would  house a  VPSO.  At  present,  the                                                                    
amendment  would not  allow funds  to be  used to  build the                                                                    
basic infrastructure needed  to get a VPSO in  a village. He                                                                    
MOVED to  AMEND Amendment  H DPS 30  by inserting  the words                                                                    
"current or  future" after the  word "supporting" on  line 2                                                                    
of the amendment.                                                                                                               
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair   Seaton  restated   the   proposed  amendment   to                                                                    
Amendment H DPS 30 for clarity.                                                                                                 
                                                                                                                                
Representative Wilson requested further explanation.                                                                            
                                                                                                                                
Vice-Chair  Gara  explained  that  to  attract  VPSOs  there                                                                    
needed  to  be  a  place  for them  to  live.  The  proposed                                                                    
language  would make  it clear  that  supporting could  mean                                                                    
housing support  for a current  or future VPSO.  He surmised                                                                    
the state  would never get  past the problem if  housing was                                                                    
not available.                                                                                                                  
                                                                                                                                
Representative   Wilson  stated   that  in   committee  [the                                                                    
committee had  been told] the  money was not supposed  to be                                                                    
used for  housing. She furthered when  committee members had                                                                    
been  shocked to  learn the  money had  been used  on things                                                                    
besides salaries,  the department had brought  up that going                                                                    
forward the  money would  be used to  pay VPSOs.  She stated                                                                    
that adding the proposed  language would make it financially                                                                    
difficult  to  hire  someone  if  the  money  was  spent  on                                                                    
building housing first. She surmised  that it would mean the                                                                    
department would  be unable  to fill  the position  at least                                                                    
during   that   specific   year.    She   thought   it   was                                                                    
counterproductive.   She  understood   the  goal,   but  she                                                                    
believed  it  took  away from  the  program's  purpose.  She                                                                    
believed  the  budget  already  contained  a  separate  VPSO                                                                    
housing allocation. She wanted to ask the department.                                                                           
                                                                                                                                
2:19:33 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:25:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Pruitt discussed  that one  of the  concerns                                                                    
brought up  in the budget subcommittee  was facilitating the                                                                    
actual service  and ensuring  the funding  would be  used on                                                                    
the people [VPSO officers]. The  conversation related to the                                                                    
amendment  to the  amendment pertained  to other  components                                                                    
including the  support through housing in  some capacity. In                                                                    
the past Alaska Housing  Finance Corporation (AHFC) and some                                                                    
Native  corporations had  participated.  The department  had                                                                    
highlighted  that  if there  was  surplus  funding it  could                                                                    
request to use the funds  on repair of housing. The question                                                                    
was   whether   "current   or  future"   returned   to   the                                                                    
conversation  about ensuring  the  funds  were utilized  for                                                                    
employing  the individuals  (including  hire and  training).                                                                    
His proposed amendment was not to  try to reform or get into                                                                    
an overall  discussion about the  program; it was  to ensure                                                                    
the money was  used for hiring people and  getting VPSOs out                                                                    
there. If the intent was to  add beyond the hiring of people                                                                    
he would  oppose it; however, the  language seemed innocuous                                                                    
if  it was  merely to  show that  the legislature  supported                                                                    
VPSOs  hired currently  or in  the future.  He believed  the                                                                    
intent was  to expand beyond the  hire of the VPSO  and into                                                                    
broader  services, which  had been  a  concern discussed  in                                                                    
subcommittee, if so he would oppose it.                                                                                         
                                                                                                                                
Representative Guttenberg generally liked  the use of intent                                                                    
language when it  was something he agreed  with. However, he                                                                    
believed  the  legislature  was starting  to  micromanage  a                                                                    
program  that was  inherently  difficult  to administer.  He                                                                    
believed  the   legislature  was  moving   towards  breaking                                                                    
something that was teetering on the edge.                                                                                       
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken  on the motion to amend Amendment                                                                    
H DPS 30.                                                                                                                       
                                                                                                                                
IN FAVOR: Guttenberg, Kawasaki,  Ortiz, Gara, Grenn, Foster,                                                                    
Seaton                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson                                                                                       
                                                                                                                                
The MOTION to amend Amendment H DPS 30 PASSED (7/4).                                                                            
                                                                                                                                
2:30:13 PM                                                                                                                    
                                                                                                                                
Representative   Wilson   did   not  support   the   amended                                                                    
amendment. She thought  it was insane to have  to put intent                                                                    
language in to get money back  that the entity had not spent                                                                    
on the  intended purpose. She  stated it was fairly  easy to                                                                    
know that each  of the entities had money to  hire a certain                                                                    
number  of VPSOs.  She  stated that  the  department had  at                                                                    
least  made  it  possible  to   potentially  move  a  vacant                                                                    
position  from  one community  to  another  if it  could  be                                                                    
filled. She  stressed that it  was about hiring  the people.                                                                    
She continued that it had been  opened up to more than that,                                                                    
which had been  a big concern of the subcommittee  on how to                                                                    
distinguish between  hiring people  and using the  money for                                                                    
things besides hiring them. She  stated that intent language                                                                    
did not  even mean anything.  She furthered that it  was not                                                                    
about micromanaging. She surmised  that perhaps an amendment                                                                    
to the  overall budget  was necessary  that if  a department                                                                    
did  not use  the money  for  its intended  purpose, it  was                                                                    
required to give it back.  She believed that the legislature                                                                    
already  expected that  to  happen.  However, the  amendment                                                                    
showed otherwise.                                                                                                               
                                                                                                                                
Representative  Wilson elaborated  that in  the past  it had                                                                    
been okay for  the program to keep excess money,  but it had                                                                    
not been  putting it into  housing. She found  it disturbing                                                                    
that  it was  not  known how  much money  had  been kept  by                                                                    
organizations that  the state had  allocated to try  to take                                                                    
care  of  a  public  safety   issue  in  remote  areas.  She                                                                    
contended  that it  was not  about micromanaging,  but about                                                                    
whether the money allocated went  where it had been intended                                                                    
to go.  She noted they had  not been able to  figure out the                                                                    
liability issue.                                                                                                                
                                                                                                                                
Co-Chair Seaton asked Representative  Wilson to stick to the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Wilson  stated her comments were  relevant to                                                                    
the  amendment. She  continued that  the committee  had just                                                                    
opened up  liability by allowing  buildings to  be remodeled                                                                    
or refurbished before a VPSO  had been hired in a community.                                                                    
She noted  it was not  state money  and she did  not believe                                                                    
the state  would be  under any  liability because  the money                                                                    
came  from  grant  funds.  However,   she  was  unsure.  She                                                                    
continued  it was  still  the state's  money  and the  state                                                                    
would still have  to give permission to  grantees to utilize                                                                    
the  funds on  [housing] upgrades.  She wondered  what would                                                                    
happen  if the  money  was  spent on  housing  and the  VPSO                                                                    
position remained vacant  due to any number  of reasons. She                                                                    
wondered  if the  state would  have to  continue to  use the                                                                    
funding to  put the  housing in  storage until  the position                                                                    
could be  filled. She underscored that  the committee should                                                                    
be  concerned  about  the  issue because  it  had  not  been                                                                    
vetted. She  did not want  to create something they  did not                                                                    
understand, when the  goal of the original  amendment was to                                                                    
return the money to the state if VPSOs were not hired.                                                                          
                                                                                                                                
Vice-Chair Gara stated  he tried to work  across party lines                                                                    
when  he  could,  and  he  supported  former  Governor  Sean                                                                    
Parnell's effort to get VPSOs  into the 100 communities with                                                                    
no law enforcement.  The program had not been  working for a                                                                    
number of  reasons -  one of  the reasons  was the  need for                                                                    
adequate  housing  to  attract  someone to  a  village.  The                                                                    
amendment would enable  the state to deal  with that portion                                                                    
of the issue.  He stated that if the money  was not spent it                                                                    
would  lapse back  into  the  GF. He  wanted  people in  the                                                                    
communities  to   have  protection.  He  reasoned   that  if                                                                    
adequate housing was  not provided, VPSOs would  not move to                                                                    
the  communities. He  questioned whether  legislators wanted                                                                    
public safety in communities with  no public safety presence                                                                    
or if  it wanted to leave  a current program to  continue to                                                                    
fail. He supported improving the program.                                                                                       
                                                                                                                                
2:35:24 PM                                                                                                                    
                                                                                                                                
Representative   Pruitt  asked   members   to  support   the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kawasaki,  Ortiz, Pruitt,  Thompson, Gara,  Grenn,                                                                    
Seaton                                                                                                                          
OPPOSED: Tilton, Wilson, Guttenberg, Foster                                                                                     
                                                                                                                                
The MOTION  to adopt  Amendment H DPS  30 as  amended PASSED                                                                    
(7/4). There being NO further  OBJECTION, Amendment H DPS as                                                                    
amended was ADOPTED.                                                                                                            
                                                                                                                                
2:36:42 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  33                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Support                                                                                                          
     Commissioner's Office                                                                                                      
     H DPS 33 - Delete Special Assistant                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     Delete   Special   Assistant   to   the   Commissioner.                                                                    
     Legislators might  have to wait  longer for  a response                                                                    
     but this position  is not needed for  the Department to                                                                    
     meet their mission.                                                                                                        
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson explained  that  the amendment  would                                                                    
delete  a   special  assistant  position,   consistent  with                                                                    
previous departments addressed.                                                                                                 
                                                                                                                                
Representative  Kawasaki responded  that the  department had                                                                    
already seen a  decrease in special assistants  since the FY                                                                    
16 budget.  Further reductions would impact  the legislative                                                                    
liaison  position, labor  relations employees,  and all  the                                                                    
answers   to  questions   the   committee   had  asked   the                                                                    
department.                                                                                                                     
                                                                                                                                
Representative  Guttenberg asked  members to  imagine having                                                                    
no one to ask a question [in the department].                                                                                   
                                                                                                                                
Representative Wilson provided wrap  up. She agreed it would                                                                    
be nice  to have committee  questions answered. She  had not                                                                    
received answers  to her  earlier question.  She underscored                                                                    
the $4.2 billion budget and  believed at some point it would                                                                    
be significantly  reduced. She did not  believe the position                                                                    
pertained to public safety issues impacting residents.                                                                          
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Ortiz,  Gara, Grenn, Guttenberg,  Kawasaki, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to ADOPT Amendment H DPS 33 FAILED (4/7).                                                                            
                                                                                                                                
2:39:07 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki MOVED to ADOPT Amendment H DPS 34                                                                       
(copy on file):                                                                                                                 
                                                                                                                                
     H  DPS   34  -  Reverse  Criminal   Investigation  Unit                                                                    
     Transfer to Public Safety                                                                                                  
                                                                                                                                
     Linked  to H  DOR  5 -  Reverse Criminal  Investigation                                                                    
     Unit Transfer to Public Safety ATrln 338324                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  Legislative  Finance  Division (LFD)  reports  the                                                                    
     Department  of Revenue  (DOR) requested  a transfer  of                                                                    
     its Criminal  Investigation Unit (CIU),  which includes                                                                    
     9 Permanent Full Time positions  across 4 divisions, to                                                                    
     the  Department of  Public Safety  (DPS) Commissioner's                                                                    
     Office.  The Office  of Management  and Budget  reports                                                                    
     the DPS  Commissioner's Office would oversee  the CIU's                                                                    
     enforcement of DOR's criminal  laws and regulations and                                                                    
     provide law enforcement support.                                                                                           
                                                                                                                                
     LFD  and  DOR state  this  request  was made  with  the                                                                    
     intention of  commissioning CIU investigators  in order                                                                    
     to  carry  firearms.  The CIU  handles  Permanent  Fund                                                                    
     Dividend Fraud,  Child Support Fraud and  Tax Fraud and                                                                    
     employees  carry   limited  special   commissions  that                                                                    
     enable  them to  assist DPS  with enforcement  of these                                                                    
     types  of   cases.  Upon  transfer  to   DPS,  the  CIU                                                                    
     employees would  continue to carry out  these duties as                                                                    
     semi-commissioned peace officers  with the authority to                                                                    
     carry firearms.                                                                                                            
                                                                                                                                
     This request for position  transfer, and the associated                                                                    
     inter-agency  receipt   authority,  reflects   a  major                                                                    
     change  in   policy  implemented  through   the  budget                                                                    
     process.                                                                                                                   
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Kawasaki MOVED  to  AMEND  the amendment  to                                                                    
include Amendments HDPS 34, 35, 36,  37, 38, and H DOR 5, 8,                                                                    
9, and 10  (copy on file). He explained  the amendments were                                                                    
all correlated to the same  interagency receipt. There being                                                                    
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
Representative Kawasaki  explained the  amendments pertained                                                                    
to a  discussion in DPS  that had  occurred on the  side. He                                                                    
detailed there  were nine people  who would be  armed within                                                                    
the Department of  Revenue (DOR); it had been  a DOR request                                                                    
that  the individuals  be semi-commissioned  officers within                                                                    
DPS. He  elaborated that it  was appropriate to  house those                                                                    
members.  He  furthered that  while  he  disagreed with  the                                                                    
policy to  arm the individuals  within DOR, it had  not been                                                                    
his intent to not have the  discussion in some other form or                                                                    
fashion.  He believed  the budget  was  not the  appropriate                                                                    
venue under which  to have the discussion  about whether DOR                                                                    
officers should be armed.  Therefore, he WITHDREW Amendments                                                                    
H DPS 34, 35, 36, 37, 38, and H DOR 5, 8, 9, and 10.                                                                            
                                                                                                                                
2:40:56 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DPS  40                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Information Technology Services                                                                                  
     H DPS 40 - Personal Services Reduction Offered by                                                                          
     Representative Wilson                                                                                                      
                                                                                                                                
     The   Department  deleted   two  positions   from  this                                                                    
     allocation  in  the  FY   18  budget  request,  however                                                                    
     deleted no funding. This  amendment reduces the funding                                                                    
     for  this allocation  by $207,302,  the FY  17 budgeted                                                                    
     cost of the positions.                                                                                                     
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative Kawasaki  opposed the amendment.  He detailed                                                                    
that because  of many  functions changing  through SB  21 in                                                                    
DPS and  the Department of  Corrections, the money  was used                                                                    
for  personal  services.  The reduction  of  $207,302  would                                                                    
reduce the overall ability  within the Statewide Information                                                                    
Technology  Services   and  would  most  likely   result  in                                                                    
deletions of employees.                                                                                                         
                                                                                                                                
Representative Wilson stressed that  money associated with a                                                                    
deleted  position should  also be  deleted. She  believed it                                                                    
should be a separate discussion  if the department needed to                                                                    
request additional funding for a different reason.                                                                              
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Tilton, Wilson                                                                                              
OPPOSED: Gara, Grenn, Kawasaki, Ortiz, Seaton, Foster                                                                           
                                                                                                                                
Representative  Pruitt  and Representative  Guttenberg  were                                                                    
absent from the vote.                                                                                                           
                                                                                                                                
The MOTION to adopt Amendment H DPS 40 FAILED (3/6).                                                                            
                                                                                                                                
2:43:05 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  referenced amendments  withdrawn  by                                                                    
Representative Kawasaki.  She wondered if the  intent was to                                                                    
speak about  the transfer of  armed employees from  DOR into                                                                    
DPS. She  wondered if it was  a topic for the  House Finance                                                                    
Committee or  another standing  committee. She  remarked the                                                                    
issue  had been  discussed during  the budget  subcommittee.                                                                    
She believed  it was  a substantial  policy change  that she                                                                    
believed warranted discussion.  She stated it was  up to the                                                                    
co-chairs  to   determine  the  best   place  to   have  the                                                                    
discussion.                                                                                                                     
                                                                                                                                
Co-Chair Seaton answered that one  of the primary objectives                                                                    
of the subcommittee process in  the current year was to have                                                                    
policy   committees   address   the  full   value   of   the                                                                    
discussions. He  relayed that  the policy  committees should                                                                    
be  looking  at the  aspects  from  a budgetary  and  policy                                                                    
standpoint.   Policy  committees   could  be   informed  the                                                                    
discussion  had taken  place in  subcommittee. He  concluded                                                                    
that  hopefully the  policy committee  was the  proper venue                                                                    
for  deciding  the policy  instead  of  deciding the  policy                                                                    
through the budget.                                                                                                             
                                                                                                                                
Representative  Wilson  thought  "they probably  thought  we                                                                    
were going  to take care of  it in this aspect"  and she did                                                                    
not believe  it was in the  report. She wanted to  make sure                                                                    
the issue was taken care of.                                                                                                    
                                                                                                                                
Co-Chair Seaton answered that he  would ask the subcommittee                                                                    
chair to address the issue.                                                                                                     
                                                                                                                                
2:45:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton relayed the  committee would hear amendments                                                                    
pertaining  to the  Department of  Revenue  (DOR). He  noted                                                                    
that Amendment H DOR 5 had been withdrawn.                                                                                      
                                                                                                                                
Representative  Thompson MOVED  to ADOPT  Amendment H  DOR 6                                                                    
and H DOR 7.                                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Thompson   explained  the   amendments  with                                                                    
prepared remarks:                                                                                                               
                                                                                                                                
     Treasury believes there is room  for greater savings by                                                                    
     hiring additional  investment officers in-house  in the                                                                    
     future.   The   administration   also   suggests   that                                                                    
     expanding   in-house  investment   officers  in   their                                                                    
     October   2015   report   "A   Sound   Fiscal   Future:                                                                    
     Recommendations  for  a   Sustainable  Utilization  and                                                                    
     Management of Alaska's  Financial Assets." At 12/31/16,                                                                    
     $13.8  billion  of  asset were  managed  internally  by                                                                    
     Treasury investment staff.  Had external firms invested                                                                    
     this  money, the  external management  fees would  have                                                                    
     cost  $32.7  million.  In 2016  the  Alaska  Retirement                                                                    
     Management  Board   state  investment   officers  began                                                                    
     investing  more  equity   investments  directly,  which                                                                    
     reduced fees  paid to external investment  firms in the                                                                    
     Lower  48 by  $4.5 million.  Treasury believes  that by                                                                    
     adding two  more investment staff, in  the future there                                                                    
     will  be  the  capacity  to  save  up  to  $15  million                                                                    
     annually  in management  fees.  This  amendment is  the                                                                    
     funding source (H DOR 7)  for the amendment to treasury                                                                    
     (H  DOR  6)  creating  the  two  new  state  investment                                                                    
     officer  positions. The  total  cost  is $438,900  from                                                                    
     retirement fund  earnings. These positions do  not cost                                                                    
     the state  more money. Without the  positions the state                                                                    
     will spend  more money on external  management fees. If                                                                    
     the positions are not filled,  the money will remain in                                                                    
     the retirement funds.                                                                                                      
                                                                                                                                
Representative Thompson  furthered that  H DOR 7  funded the                                                                    
two positions  from the retirement  fund and H DOR  6 showed                                                                    
that  the   Treasury  Division  would   receive  interagency                                                                    
receipts in the same amount to pay for the positions.                                                                           
                                                                                                                                
2:48:53 PM                                                                                                                    
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
Co-Chair Seaton  OBJECTED for  discussion. He  explained the                                                                    
same  rationale had  been used  when two  auditors had  been                                                                    
added because  it would  make DOR  more money.  He supported                                                                    
the amendment and WITHDREW his OBJECTION.                                                                                       
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Thompson provided  wrap up.  He stated  that                                                                    
should  Alaska  adopt  investment  practices  that  increase                                                                    
asset earnings  due to compound  interest, a higher  rate of                                                                    
earnings  would  result  with more  rapid  growth  and  more                                                                    
available  funds on  an annual  basis. Regarding  the Alaska                                                                    
Retirement Management  Board (ARMB), savings  and management                                                                    
fees  would  keep  more  money   in  the  retirement  funds;                                                                    
therefore, growing the fund at  a higher rate and ultimately                                                                    
reducing  the  state's  unfunded  liability.  He  encouraged                                                                    
members to vote in support of the amendments.                                                                                   
                                                                                                                                
Representative Kawasaki MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Gara,  Grenn, Guttenberg, Ortiz, Pruitt,                                                                    
Foster, Seaton                                                                                                                  
OPPOSED: Wilson, Kawasaki, Tilton                                                                                               
                                                                                                                                
The MOTION  to adopt Amendments H  DOR 6 and H  DOR 7 PASSED                                                                    
(8/3). There being NO further  OBJECTION, Amendments H DOR 6                                                                    
and H DOR 7 were ADOPTED.                                                                                                       
                                                                                                                                
2:51:19 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  relayed that Amendments  H DOR 8, H  DOR 9,                                                                    
and HDOR 10 had previously  been withdrawn. He announced the                                                                    
committee  would move  on to  amendments  pertaining to  the                                                                    
Department of Transportation and Public Facilities (DOT).                                                                       
                                                                                                                                
Representative Wilson  WITHDREW Amendment  H DOT 4  (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
2:51:51 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DOT  5                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Equal Employment and Civil Rights                                                                                          
     H DOT 5 - Deletes two of eight Civil Rights and                                                                            
     Compliance Positions and PS costs.                                                                                         
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This amendment  deletes two of  eight Civil  Rights and                                                                    
     Compliance  Specialists  and  the  associated  personal                                                                    
     service costs.   This reduction will  require the Civil                                                                    
     Rights  office  to  redistribute the  workload  to  the                                                                    
     remaining  positions. Other  funding  remaining in  the                                                                    
     allocation can fund the remaining positions.                                                                               
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair Foster  spoke to his  objection. He shared  that he                                                                    
had  been  the chair  of  the  DOT budget  subcommittee.  He                                                                    
reported that  the total  UGF funding  for the  Civil Rights                                                                    
Office  was   $253,000.  The  amendment  sought   to  remove                                                                    
$217,000 or 90  percent of the total UGF  funds. He detailed                                                                    
that the $253,000 went towards  funding all eight positions;                                                                    
only 18 percent of each  position was funded with UGF funds.                                                                    
Removing the funds would mean  eliminating more than the two                                                                    
positions  listed   in  the  amendment.   More  importantly,                                                                    
federal law required DOT to  maintain a civil rights office;                                                                    
failure   to  comply   could  result   in  DOT   losing  its                                                                    
eligibility to receive federal funds.                                                                                           
                                                                                                                                
Representative  Wilson  provided   wrap  up.  She  supported                                                                    
letting  the federal  government  pay the  costs  if it  was                                                                    
going to require the state  to have the office. She surmised                                                                    
it may be an unfunded mandate.  She hoped DOT did not do the                                                                    
same thing  Department of Health and  Social Services (DHSS)                                                                    
had done the previous day -  she stated if the fund code was                                                                    
supposed to  be 1003  UGF match, it  should be  specified in                                                                    
the  budget.  She  remarked  that  the  code  read  1004  GF                                                                    
instead, which meant it was  not being utilized for a match.                                                                    
She stated that  the amendment did not remove  the office or                                                                    
matching funds. She  did not believe it would  impact any of                                                                    
the other funding for the office.                                                                                               
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt, Thompson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Seaton,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to adopt Amendment H DOT 5 FAILED (4/7).                                                                             
                                                                                                                                
2:54:53 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DOT  8                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Central Region Support Services                                                                                            
     H  DOT 8  -  Delete three  new  positions and  personal                                                                    
     service costs.                                                                                                             
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     As a  result of  declining state  revenues and  as cost                                                                    
     containment  measure, this  amendment  deletes a  newly                                                                    
     created Administrative  Operations Manager  position in                                                                    
     the  FY  18  budget   request,  a  Program  Coordinator                                                                    
     position created  in FY 17 and  Information Officer III                                                                    
     position. Other  funds can be  reallocated to  fund the                                                                    
     unrestricted  general funds  deleted from  the Personal                                                                    
     Services line in this allocation.                                                                                          
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson detailed  that the amendment pertained                                                                    
to three  new positions, but based  on further investigation                                                                    
the  positions  were  not  funded  with  GF,  but  with  the                                                                    
International  Airport Revenue  Fund  and  UA indirect  cost                                                                    
recovery. Although the positions  were new, they were funded                                                                    
by the agency utilizing them. She WITHDREW the amendment.                                                                       
                                                                                                                                
2:55:29 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H DOT  9                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Northern Region Support Services                                                                                           
     H  DOT  9  -  Associated  personal  services  cost  and                                                                    
     services line reduction.                                                                                                   
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The   Department  deleted   a  Procurement   Specialist                                                                    
     position in the  FY 18 budget request  without taking a                                                                    
     reduction in funding for the  position deleted. This FY                                                                    
     17  budgeted cost  of the  position  was $89,599.  This                                                                    
     amendment makes a reduction  from the Personal Services                                                                    
     line  for  this amount.  This  amendment  also makes  a                                                                    
     $50,000  reduction  from  the Services  line  item  for                                                                    
     advertising  and promotions  where actual  expenditures                                                                    
     in FY  16 were  zero and  the FY  18 budget  is $87,900                                                                    
     leaving $37,900 in this allocation.                                                                                        
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Foster spoke  to his  objection. He  spoke to  the                                                                    
procurement  officer  position  that   had  been  funded  by                                                                    
multiple  sources, not  only UGF.  The  amendment sought  to                                                                    
remove  $89,000 by  eliminating a  position; however,  there                                                                    
was only  $25,000 UGF  for the  position. He  confirmed that                                                                    
the  funding  had  not  been  deleted.  The  department  had                                                                    
specified  the funds  had been  used to  reduce the  vacancy                                                                    
factor  to a  more  realistic level  after compensating  for                                                                    
premium pay. He  addressed the second part  of the amendment                                                                    
and  relayed   the  actuals  for   FY  16   advertising  and                                                                    
promotions were  in the Northern Region  planning component.                                                                    
The information office and  publications specialist had been                                                                    
transferred  into  the   Northern  Region  support  services                                                                    
component  when   the  components  were   consolidated  into                                                                    
program developments.  They brought with them  the authority                                                                    
for the  navigator contract, which  was the  advertising and                                                                    
promotions  budget amount.  The reduction  would impact  the                                                                    
region's ability to perform  the necessary support functions                                                                    
that assist  the region  in delivering  its core  and direct                                                                    
services, which would result in delayed service.                                                                                
                                                                                                                                
Representative  Wilson  MOVED  to AMEND  the  amendment  for                                                                    
accuracy. The amendment would  change personal services from                                                                    
$89.6 to  $64.6 and  would change the  funding of  code 1004                                                                    
General Funds to -$114,600.                                                                                                     
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative Wilson  clarified the amendment  to Amendment                                                                    
H DOT 9 was to correct the numbers.                                                                                             
                                                                                                                                
Co-Chair  Foster  MAINTAINED  his  OBJECTION  to  amend  the                                                                    
amendment.  He believed  using the  small amount  of UGF  to                                                                    
help  bring  down the  vacancy  factor  was reasonable.  The                                                                    
region had already  taken numerous cuts. He  stated that the                                                                    
Central region  was assuming  more responsibilities.  He did                                                                    
not want to reduce the  budget increment any further than it                                                                    
had been.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Gara, Grenn,  Guttenberg, Kawasaki, Ortiz,                                                                    
Pruitt, Thompson, Tilton                                                                                                        
OPPOSED: Foster, Seaton                                                                                                         
                                                                                                                                
The MOTION to amend Amendment H DOT 9 PASSED (9/2).                                                                             
                                                                                                                                
Representative  Wilson  provided  wrap  up  on  the  amended                                                                    
amendment.  She explained  that  the  amendment would  still                                                                    
leave  $37,900 in  advertising and  promotions, which  would                                                                    
allow  website and  email notification  and  notices in  the                                                                    
paper.                                                                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Foster,                                                                    
Seaton                                                                                                                          
                                                                                                                                
The MOTION to adopt H DOT 9 as amended FAILED (4/7).                                                                            
                                                                                                                                
3:01:48 PM                                                                                                                    
                                                                                                                                
Representative  Tilton MOVED  to  ADOPT Amendment  H DOT  20                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Design, Engineering and Construction                                                                                       
     Central Region Construction and CIP Support                                                                                
     H DOT 20 - Add Intent Language                                                                                             
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     It is  the intent  of the  legislature that  the paused                                                                    
     project "Knik  Goose Bay  Road Reconstruction:  Vine to                                                                    
     Settler's Bay"  be resumed  utilizing federal  funds as                                                                    
     available.                                                                                                                 
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Tilton explained  that  the amendment  would                                                                    
add  intent  language  specifying the  legislature's  intent                                                                    
that the paused Knik Goose  Bay Road Reconstruction, Vine to                                                                    
Settler's Bay  project be resumed utilizing  federal funding                                                                    
as available. She  stressed that the Mat-Su  was the fastest                                                                    
growing  community in  the state  and the  area had  already                                                                    
been considered  a safety corridor.  The project was  in the                                                                    
middle  of two  other  projects that  had  funding and  were                                                                    
moving  forward. She  had been  told by  DOT that  the funds                                                                    
were available and were merely  sitting there. She continued                                                                    
that the committee  had been told there had  been some bonds                                                                    
issued and the state was  paying money on bonds for projects                                                                    
that were  not moving  forward. She stated  it was  a safety                                                                    
challenge; there  had been 253  accidents with  56 injuries.                                                                    
She stressed that  since the pause of the  project there had                                                                    
been  a  fatality in  July  2016,  and three  fatalities  in                                                                    
January 2017. She  emphasized that people in  the Mat-Su had                                                                    
lost their lives because a project had been paused.                                                                             
                                                                                                                                
Representative Kawasaki  discussed that there  were projects                                                                    
across the  state that  had been paused  in addition  to the                                                                    
project  under discussion,  including  [paused] projects  in                                                                    
his district where  people had died. He  recognized that DOT                                                                    
had been  cut and  there was not  sufficient money  to cover                                                                    
all  the public  safety  needs across  the  state. He  asked                                                                    
whether unpausing the project  would negatively impact other                                                                    
projects currently in the queue.                                                                                                
                                                                                                                                
Co-Chair  Foster WITHDREW  his OBJECTION.  He supported  the                                                                    
amendment.  He  noted  it was  intent  language  asking  the                                                                    
department to  look for federal  funding and to  report back                                                                    
to  the legislature  the following  year. He  stated it  was                                                                    
possible  funds  could be  required  in  the future  if  the                                                                    
project moved forward,  but it was a decision  that could be                                                                    
made in the future. He  concluded that if federal funds were                                                                    
located it would need to  be taken into consideration in the                                                                    
future.                                                                                                                         
                                                                                                                                
Representative Guttenberg OBJECTED.                                                                                             
                                                                                                                                
Representative  Pruitt appreciated  the amendment  and noted                                                                    
he had  heard about  the project  from his  constituents. He                                                                    
noted it  was far  from his  district, but  his constituents                                                                    
traveled on  the road for  various reasons. He spoke  to his                                                                    
support.  He believed  the reason  the road  had paused  had                                                                    
been wrong. He supported  the amendment sponsor's efforts to                                                                    
fight for her constituents'  safety. He stressed his support                                                                    
for the safety  of the people in Mat-Su.  He underscored the                                                                    
project should never have been paused in the first place.                                                                       
                                                                                                                                
Representative Guttenberg  stated that most  intent language                                                                    
was generic  and broad, which  he found appropriate.  He was                                                                    
concerned the  language was related  to a specific  road. He                                                                    
did not  know enough about  the issue and what  would happen                                                                    
to other projects on the list.                                                                                                  
                                                                                                                                
3:07:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  recognized Representative Louise  Stutes in                                                                    
the audience.                                                                                                                   
                                                                                                                                
Representative Wilson  discussed that  a few years  back the                                                                    
legislature  had been  considering major  projects including                                                                    
the Juneau Access Road, a  hydro project, and the Knik Goose                                                                    
Bay Road  project. She recalled being  asked by constituents                                                                    
if  the legislature  supported the  project  and whether  it                                                                    
could leap over  other DOT projects on the  list. She stated                                                                    
that DOT  had a  matrix that included  many factors  such as                                                                    
safety. She supported  putting the project back in  - it had                                                                    
involved  significant   hard  work  including   looking  for                                                                    
federal funds.  She did not  know whether the  federal funds                                                                    
were still available,  but they had been in the  past and no                                                                    
matching  funds  were  required.  She knew  voting  for  the                                                                    
project would  not put  other projects  on the  back burner.                                                                    
The  amendment   merely  specified  if  there   was  funding                                                                    
available,  the  project should  no  longer  be paused;  the                                                                    
funding should be utilized before  it was lost. She surmised                                                                    
that  if DOT  had been  able to  use the  funds for  another                                                                    
project, it  would have done  so. Many [federal]  funds were                                                                    
very specific in  terms of what could or could  not be done.                                                                    
She  did  not know  why  the  state  would  pass up  on  the                                                                    
opportunity  for jobs  and to  increase  safety [that  would                                                                    
come from restarting the project].  She did not know why the                                                                    
project had been paused.                                                                                                        
                                                                                                                                
Co-Chair  Seaton   clarified  his  understanding   based  on                                                                    
committee  comments  that the  language  did  not intend  to                                                                    
prioritize  the project  over other  road projects;  it also                                                                    
used federal funds and no state funds.                                                                                          
                                                                                                                                
Representative  Guttenberg  WITHDREW  his  OBJECTION.  There                                                                    
being NO further OBJECTION, H DOT 20 was ADOPTED.                                                                               
                                                                                                                                
3:10:08 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOT  23                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Highways, Aviation and Facilities                                                                                          
     Central Region Facilities                                                                                                  
     H DOT 23 - Delete one  full time position and align the                                                                    
     FY 18 budget request with FY 17 plan.                                                                                      
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  FY  17  Management  Plan budget  in  the  Personal                                                                    
     Services line item was $2,939,500  and the FY 18 budget                                                                    
     request for  this line item is  $3,218,400 resulting in                                                                    
     an  increase  of $310,700  over  the  FY 17  Management                                                                    
     Plan. Additionally, a  permanent full-time position was                                                                    
     added  and  one part  position  was  reclassified to  a                                                                    
     permanent  full time  position. This  amendment deletes                                                                    
     the added  position and makes  a reduction  of $310,700                                                                    
     to this  line item  to align the  FY 18  budget request                                                                    
     with the FY 17 Management Plan.                                                                                            
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Foster spoke  to his  objection. He  detailed that                                                                    
Central  region facilities  assumed  the responsibility  for                                                                    
Court  System facilities  and work  for the  maintenance and                                                                    
operation  for  the  Southcoast  region  (Aleutian  district                                                                    
facilities).   Reducing  the   funds  would   eliminate  the                                                                    
department's  ability to  provide  facility and  maintenance                                                                    
for the Court  System; the system did not  have the capacity                                                                    
to  absorb  the  function.  The changing  of  the  part-time                                                                    
position  to  full-time  status   in  FY  18  increased  the                                                                    
agency's efficient delivery of maintenance services.                                                                            
                                                                                                                                
Representative  Wilson  responded  that she  would  have  no                                                                    
problem  maintaining the  $310,700 if  the Court  System was                                                                    
paying  the bill;  however, the  money  was not  interagency                                                                    
receipts,  which  she  believed   it  should  be  given  the                                                                    
entities benefiting off the increase.                                                                                           
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Grenn, Guttenberg, Kawasaki, Ortiz, Seaton, Foster                                                                     
                                                                                                                                
Vice-Chair Gara was absent from the vote.                                                                                       
                                                                                                                                
The MOTION to adopt Amendment H DOT 23 FAILED (4/6).                                                                            
                                                                                                                                
3:13:27 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOT  26                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Northern Region Highways and Aviation                                                                                      
     H  DOT 26  - Align  FY 18  budget request  for Personal                                                                    
     Services with FY 17 Management Plan                                                                                        
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  FY  17  Management  Plan budget  in  the  Personal                                                                    
     Services  line  item  was $30,802,100  and  the  FY  18                                                                    
     budget  request  for  this  line  item  is  $31,034,400                                                                    
     resulting in  an increase  of $232,300  over the  FY 17                                                                    
     Management Plan.  This amendment  makes a  reduction of                                                                    
     $232,300 from this line item  to align the FY 18 budget                                                                    
     request with the FY 17 Management Plan.                                                                                    
                                                                                                                                
Representative Kawasaki OBJECTED.                                                                                               
                                                                                                                                
Representative  Wilson remarked  that  she  was certain  DOT                                                                    
needed  the  money  as  much  as  other  agencies  utilizing                                                                    
services with  DOT. She read from  the amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Co-Chair  Foster spoke  in opposition  to the  amendment. He                                                                    
shared that  the increase  resulted from  salary adjustments                                                                    
due  to  collective   bargaining  agreement  positions.  The                                                                    
reduction  would  result  in   an  unallocated  cut  to  the                                                                    
component  as the  increase was  for contractually  required                                                                    
costs.                                                                                                                          
                                                                                                                                
Representative  Wilson found  it interesting  that only  the                                                                    
specific  division  of  the  Northern  Region  Highways  and                                                                    
Aviation had a  salary adjustment. She believed  most of the                                                                    
employees were in the same  union. She thought the increases                                                                    
would have been  seen in more than just  one allocation. She                                                                    
opined  that the  contracts  needed to  be  reopened if  the                                                                    
state was paying  that much. She wanted to  hold costs level                                                                    
for at least a year.                                                                                                            
                                                                                                                                
Co-Chair Foster MAINTAINED the OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Thompson, Tilton, Wilson                                                                                      
OPPOSED: Guttenberg, Ortiz, Gara, Grenn, Foster, Seaton                                                                         
                                                                                                                                
Representative Kawasaki was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H DOT 26 FAILED (4/6).                                                                            
                                                                                                                                
3:15:40 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT Amendment H DOT 29                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Marine Highway System                                                                                                      
     Marine Vessel Operations                                                                                                   
     H DOT 29 Increase Service Level                                                                                            
     Offered by Representative Ortiz                                                                                            
                                                                                                                                
     The  Alaska   Marine  Highway  System   provides  vital                                                                    
     transportation for  Alaskans and their  businesses. The                                                                    
     Marine   Highway's   operation   capability   must   be                                                                    
     preserved  for the  good of  Alaska's  economy and  the                                                                    
     benefit of  Alaskan people and communities.  The Alaska                                                                    
     Marine Highway  is currently working  with stakeholders                                                                    
     and  an   appointed  steering  committee  to   build  a                                                                    
     realistic   long-term   operations   plan   that   will                                                                    
     stabilize the  marine highway into the  future. For the                                                                    
     good  of  our economy  and  communities,  the State  of                                                                    
     Alaska must  provide necessary  funding for  the marine                                                                    
     highway until  implementation of  the new  structure is                                                                    
     completed in FY 2019.                                                                                                      
                                                                                                                                
     The  Alaska   Marine  Highway   has  been   reduced  by                                                                    
     approximately 13  percent over the last  2 years, while                                                                    
     other  highways  and   aviation  facilities  have  been                                                                    
     reduced by only 5.5  percent. Coastal Alaskans are also                                                                    
     the only  Alaskans who directly contribute  to the cost                                                                    
     of their highway maintenance and operations.                                                                               
                                                                                                                                
     Coastal Alaskans understand the  need for reductions in                                                                    
     state spending,  but fundamentally deserve  parity with                                                                    
     other Alaskans and their transportation options.                                                                           
                                                                                                                                
     The    Alaska    Marine   Highway    provides    goods,                                                                    
     transportation  for people  and vehicles,  and jobs  to                                                                    
     Alaskan  communities. For  every  dollar  spent on  the                                                                    
     Alaska  Marine  Highway,  at   least  two  dollars  are                                                                    
     generated  in the  communities  it  serves. The  marine                                                                    
     highway   also    provides   important   transportation                                                                    
     infrastructure   to   Alaskans,   whether   along   the                                                                    
     immediate   coast   or   into   the   interior,   where                                                                    
     communities  are linked  to  coastal communities  along                                                                    
     the  marine highway  service route.  The Alaska  Marine                                                                    
     Highway System carried 100,547 vehicles  in 2015. It is                                                                    
     also relied  upon to  bring groceries,  medications and                                                                    
     other necessary goods to locations  where barges do not                                                                    
     often  travel or  do  not  travel at  any  time due  to                                                                    
     practicality.                                                                                                              
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative Ortiz explained that  the amendment would add                                                                    
slightly  over  $2  million to  the  Alaska  Marine  Highway                                                                    
System  (AMHS).  He  read  the  amendment  description  [see                                                                    
above].  He   added  that  former   co-chair  Representative                                                                    
Thompson recalled the discussions  around reductions to AMHS                                                                    
in  the  previous budgeting  process  and  would backup  the                                                                    
amounts he was discussing related to the inequity of cuts.                                                                      
                                                                                                                                
Representative Wilson  asked what  type of rate  increase it                                                                    
would take to  cover the $1.7 million. She did  not have the                                                                    
number of people,  only the number of  vehicles, which would                                                                    
be  an  addition  of  $18.  She  surmised  the  $18  may  be                                                                    
roundtrip, if  so it would  be $9  each way. She  knew there                                                                    
had been  some increases, but  she surmised that  many other                                                                    
areas [of the budget] had been  cut more than 13 percent (up                                                                    
to 30  to 40 percent).  She asked  where the AMHS  DGF funds                                                                    
came from. She did not believe it was program receipts.                                                                         
                                                                                                                                
Representative  Pruitt did  not  support  the amendment.  He                                                                    
shared that people in his  community who had never used AMHS                                                                    
wondered why they  were paying for $100 million  to fund the                                                                    
system. He  relayed that he  had never offered  an amendment                                                                    
to cut  the system. However,  he stressed that  approving an                                                                    
increase  was a  big challenge.  He stated  there were  many                                                                    
increases  he  should  personally   be  requesting  for  his                                                                    
district, but  he could not  due to the current  deficit. He                                                                    
believed  AMHS would  have to  figure out  how to  do things                                                                    
differently. He elaborated that  legislators needed to think                                                                    
about smart  investments in capital  in terms of  roads that                                                                    
were  built  to  reduce  inefficiencies. He  spoke  about  a                                                                    
public private  partnership or  privatization of  the system                                                                    
that would  reduce cost and  would enable the service  to be                                                                    
provided  without  being  a heavy  burden.  He  referred  to                                                                    
committee  discussions  about  income  tax  and  taking  the                                                                    
Permanent  Fund.   He  reasoned  when  spread   across  each                                                                    
Alaskan,  the $100  million cost  was substantial.  He would                                                                    
defend the system, but he needed  to see there was an effort                                                                    
to change things.  He stressed that merely  adding money was                                                                    
not  an effort  to make  change. He  did not  support merely                                                                    
increasing funding.  He noted his  comments also  applied to                                                                    
another similar amendment. He was  certain there were myriad                                                                    
other places that would ask for more money as well.                                                                             
                                                                                                                                
3:22:07 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  appreciated the previous  speaker's remarks                                                                    
about   taking   a   statewide  perspective.   He   believed                                                                    
individuals in Southeast Alaska  needed to "swallow a pretty                                                                    
big pill"  to put substantial transportation  money into the                                                                    
Knik  Arm Bridge  over the  years;  over $50  million for  a                                                                    
bridge  that never  got built.  He  was happy  he had  voted                                                                    
against the  project because he  had seen  it as a  waste of                                                                    
money.  He reasoned  that the  amendment was  not really  an                                                                    
"add" when  AMHS had been  hit as hard  as it had  been over                                                                    
many years. He believed it was  a Band-Aide to deal with the                                                                    
damage.                                                                                                                         
                                                                                                                                
3:23:17 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:32:15 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster  voiced support for the  amendment. He noted                                                                    
that he  had chaired  the DOT  subcommittee. He  pointed out                                                                    
Representative Stutes  in the audience  and relayed  she had                                                                    
previously led  a discussion on forward  funding AMHS, which                                                                    
he believed  there had been  general bipartisan  support for                                                                    
within the  subcommittee. He detailed  that in FY 15  and FY                                                                    
16 port  calls had been  reduced by  27 percent in  Kake, 15                                                                    
percent in  Hoonah, and 11  percent in Sitka and  Angoon. He                                                                    
stated  that hits  had  been  taken over  the  years and  he                                                                    
believed  the  amendment was  aligned  with  efforts at  the                                                                    
subcommittee level.                                                                                                             
                                                                                                                                
Representative Ortiz  provided wrap up on  the amendment and                                                                    
answered member  questions. He reported  that in  2015 there                                                                    
had been a tariff increase  of 4.5 percent across the board;                                                                    
in November 2015  there had also been a  20 percent increase                                                                    
in commercial traffic tariffs. On  January 1, 2016 there had                                                                    
been a  5 percent leveling  tariff to fill service  gaps. In                                                                    
2016  there  had  been the  first  of  five-annual  variable                                                                    
leveling  tariff  increases  had  occurred -  a  10  percent                                                                    
Bellingham [Washington] traffic  premium tariff increase. In                                                                    
2017 the  Lityua tariff policy  change had doubled  the one-                                                                    
way fare to Metlakatla. Finally,  on May 1, 2017, the second                                                                    
of  five-annual  variable  leveling tariff  increases  would                                                                    
occur. He  underscored that  AMHS had  tried to  augment and                                                                    
increase their revenue through tariff increases.                                                                                
                                                                                                                                
Representative    Ortiz    responded    to    comments    by                                                                    
Representative Pruitt  and relayed that  Anchorage residents                                                                    
were  the second  largest user  group of  AMHS. He  detailed                                                                    
that  7,638 [Anchorage]  individuals had  used the  ferry in                                                                    
2014   compared  to   2,479   individuals  from   Ketchikan.                                                                    
According to the  McDowell Group survey on  AMHS, 52 percent                                                                    
of  the summer  passengers who  visit Anchorage  traveled by                                                                    
way of  the AMHS. He  stated that the  travelers contributed                                                                    
to the Anchorage economy.                                                                                                       
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kawasaki, Ortiz,  Gara, Grenn, Guttenberg, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H DOT 29 PASSED (7/3).                                                                            
                                                                                                                                
3:36:18 PM                                                                                                                    
                                                                                                                                
Representative  Tilton MOVED  to  ADOPT Amendment  H DOT  30                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Marine Highway System                                                                                                      
     Marine Vessel Operations                                                                                                   
     H DOT 30 - Add Intent Language regarding adjustments                                                                       
     to children's fares on the Marine Highway system                                                                           
     Offered by Representative Tilton                                                                                           
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of  Transportation and  Public  Facilities,                                                                    
     Alaska  Marine Highway  System  revise the  "Children's                                                                    
     Discount  Tariffs"  from  age  6-11 to  age  0-11,  and                                                                    
     delete  the  "Underage  Discount  Tariffs"  and  "Youth                                                                    
     Group Discount Tariffs" as soon as practical.                                                                              
                                                                                                                                
     Explanation:                                                                                                               
     Review  all  14  Indirect Expenditures  listed  in  the                                                                    
     Legislative  Finance Division  January  2017 Report  to                                                                    
     evaluate whether  they meet the  purpose and  intent of                                                                    
     the   Legislature   as   defined   throughout   Section                                                                    
     19.65.050.   Where   not   prohibited   by   Collective                                                                    
     Bargaining  agreements, or  providing cost  benefits to                                                                    
     agencies  of  the  State,  restructure  or  delete  the                                                                    
     Indirect Expenditure as listed  in the report on Alaska                                                                    
     Marine Highway System.                                                                                                     
                                                                                                                                
     Change the "Children's Discount  Tariffs" from age 6-11                                                                    
    to age 0-11 Delete the "Underage Discount Tariffs"                                                                          
     Delete the "Youth Group Discount Tariffs"                                                                                  
                                                                                                                                
     Sec  19.65.050(a)(4) states  the Legislature's  purpose                                                                    
     and intent  for the  Alaska Marine Highway  System Fund                                                                    
     and  Budget  is  to  exercise  "efficient  and  prudent                                                                    
     management  of  the  system"  that  "will  benefit  the                                                                    
     state's economy and foster economic development"                                                                           
                                                                                                                                
     Sec   19.65.050(b)(1)-(4)   states  "the   purpose   of                                                                    
     19.65.050  thru  19.65.100  is to:  enable  the  Alaska                                                                    
     marine  highway  system  to manage  and  operate  in  a                                                                    
     manner    that    will    enhance    performance    and                                                                    
     accountability by  allowing the  system to  account for                                                                    
     and   spend   its   generated  revenue;   provide   the                                                                    
     management tools  necessary to efficiently  operate the                                                                    
     Alaska Marine Highway System;                                                                                              
                                                                                                                                
     By  taking   the  recommended  action  to   review  the                                                                    
     Indirect  Expenditures and  make the  suggested changes                                                                    
     to  Tariffs,  the  Alaska Marine  Highway  System  will                                                                    
     continue  to provide  quality service  under "efficient                                                                    
     and prudent  management (sec  19.65.050)" and  meet the                                                                    
     Legislatures Intent for the  Alaska Highway System Fund                                                                    
     and   Budget    by   being   accountable    under   Sec                                                                    
     19.65.050(b)(1)-(4)                                                                                                        
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Tilton read  from the  amendment description                                                                    
[see above].                                                                                                                    
                                                                                                                                
Co-Chair Foster  explained that the subcommittee  agreed the                                                                    
legislature needed  to look at indirect  expenditures as new                                                                    
sources  of revenue.  Indirect  expenditures were  discounts                                                                    
and  fee waivers  that had  gotten out  of control  over the                                                                    
years in  some situations,  but that was  not known  until a                                                                    
review  was done.  He supported  revisiting the  information                                                                    
and having  something come back  to the legislature  that it                                                                    
could  address  in  the  following  year.  He  WITHDREW  his                                                                    
OBJECTION.                                                                                                                      
                                                                                                                                
Representative  Ortiz OBJECTED.  He  stated  there were  two                                                                    
purposes  to the  AMHS  -  to augment  the  economy to  help                                                                    
business  and  encourage  tourism  traffic  and  to  provide                                                                    
essential services to outlying  communities that would never                                                                    
have the volume  to pay for the actual  service. He stressed                                                                    
that the  system provided  an essential  transportation link                                                                    
to  communities like  Juneau from  places  like Hoonah.  For                                                                    
example,  pregnant women  needed  AMHS to  come into  larger                                                                    
communities  for  checkups.  Due to  recent  reductions  the                                                                    
system had  seen significantly reduced service;  the ability                                                                    
to have  needed service was  going away. He stated  that the                                                                    
specific intent  language did not  say study,  but specified                                                                    
that "Underage  Discount Tariffs" and "Youth  Group Discount                                                                    
Tariffs" should be deleted as soon as practical.                                                                                
                                                                                                                                
Representative Ortiz  spoke about  how AMHS  worked directly                                                                    
with school systems. He emphasized  that in the current week                                                                    
over  300 students  had ridden  on AMHS  to visit  Juneau to                                                                    
participate in the  Region 5 tournament. He  was certain the                                                                    
schools  had taken  advantage of  the  youth group  discount                                                                    
tariff  option,  which  saved  school  districts  money.  He                                                                    
stated that  while it may  appear to by tailoring  towards a                                                                    
particular  group of  travelers visiting  in the  summer, in                                                                    
reality, the youth  group discount tariffs had  much more of                                                                    
an  impact  on  school  districts   and  on  AMHS  users  in                                                                    
Southeast. He was opposed to the language.                                                                                      
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  stressed  that  the  amendment  only                                                                    
included intent language;  it was only asking  for review of                                                                    
the  14  indirect  expenditures listed  by  the  Legislative                                                                    
Finance Division.  She reasoned  the review could  come back                                                                    
stating "there's a  better good by keeping them  in line" or                                                                    
they  may come  back and  say there  was not.  She explained                                                                    
that  the legislature  would not  know the  answer unless  a                                                                    
review was done.  She reiterated that the  amendment did not                                                                    
change  anything,  but asked  for  review.  She supported  a                                                                    
review to  gain a  better understanding. She  continued that                                                                    
depending on  where some  of the fees  were coming  from, if                                                                    
the discounts  were changed  and the money  came out  of the                                                                    
school  district budget  from  the  Base Student  Allocation                                                                    
(BSA)  it could  have  a negative  effect.  However, if  the                                                                    
money  came from  fundraising and  was a  small amount,  the                                                                    
impact may  not be significant.  She opined as  money became                                                                    
tighter it was  necessary to have all options  on the table.                                                                    
She believed  everyone agreed that everything  was currently                                                                    
on the table.                                                                                                                   
                                                                                                                                
Representative    Guttenberg    believed   there    was    a                                                                    
contradiction in  the intent  language and  the explanation.                                                                    
He observed  the intent language  was "as soon  as possible"                                                                    
and  the  explanation  was  [for a]  "review."  He  did  not                                                                    
believe they were completely aligned.                                                                                           
                                                                                                                                
Representative  Kawasaki agreed.  He  spoke  to the  guiding                                                                    
statute  for AMHS  and the  tariffs provided  for passengers                                                                    
was   AS  19.65.050(c)(2),   which  specified   AMHS  should                                                                    
increase   revenue  from   the  operation   of  the   system                                                                    
consistent  with public  interest.  He  stated the  language                                                                    
directed the department to take  action as soon as possible,                                                                    
leaving  no real  discussion about  whether  the action  was                                                                    
consistent with  the guiding principle of  acting consistent                                                                    
with public  interest. He noted  that Wrangell  students had                                                                    
recently been in  Juneau to play basketball  and he believed                                                                    
they had  probably taken the  ferry. He explained  that many                                                                    
students took  the ferry to travel.  He did not know  if the                                                                    
amendment  was in  order  at present.  He  stated there  was                                                                    
consistent review. The guiding  statutes specified that AMHS                                                                    
would always  try to increase  revenue based  on consistency                                                                    
with  public interest;  however, the  amendment appeared  to                                                                    
direct  AMHS to  do something  that may  not fall  under the                                                                    
statute. He opposed the amendment.                                                                                              
                                                                                                                                
3:44:48 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  a  conceptual  Amendment  1  to                                                                    
Amendment H DOT 30 to  include the words "consider revising"                                                                    
after Alaska  Marine Highway  System on  the second  line of                                                                    
the amendment. He stated it was intent language.                                                                                
                                                                                                                                
Representative Kawasaki  OBJECTED. He addressed  the guiding                                                                    
statutes related to  how AMHS created its  fee structure. It                                                                    
specified  the  system  should  increase  revenue  from  the                                                                    
operation  of   the  system   consistent  with   the  public                                                                    
interest.  He stated  there were  12 other  tariff discounts                                                                    
currently  within the  system.  He  explained the  amendment                                                                    
isolated  3 of  the  tariffs  (Children's Discount  Tariffs,                                                                    
Underage   Discount  Tariffs,   and  Youth   Group  Discount                                                                    
Tariffs).  There were  tariffs for  alcohol board  passes, a                                                                    
disabilities    user   pass,    employee   annual    passes,                                                                    
interpretive  passes   for  employees   of  U.S.   Fish  and                                                                    
Wildlife, senior  citizen discounts, and other.  He stressed                                                                    
the  amendment  clearly  directed  policy that  he  did  not                                                                    
believe was  consistent with  AMHS's public  interest tariff                                                                    
policy. He opposed the amendment to the amendment.                                                                              
                                                                                                                                
Representative  Ortiz addressed  the  proposed amendment  to                                                                    
the amendment. He stated that  even with the addition of the                                                                    
words  the  amendment  still expressed  the  listed  tariffs                                                                    
should be deleted  as soon as practical. He  would feel more                                                                    
comfortable with an amendment that  asked for a study of the                                                                    
overall   tariff  policies   and   removed  language   about                                                                    
deletion.                                                                                                                       
                                                                                                                                
Representative  Wilson thought  adding  the word  "consider"                                                                    
added a  lot. She reasoned  that whether the  tariffs should                                                                    
be deleted would be part  of the consideration. She believed                                                                    
AMHS would  come back with  a report  on whether to  keep or                                                                    
delete  the tariffs.  She opined  that  the word  "consider"                                                                    
merely  asked the  department to  consider its  policies and                                                                    
did not  constitute direction from the  legislature. She was                                                                    
not  worried  about  the "as  soon  as  practical"  language                                                                    
because it  would not  be practical  to rush;  therefore, it                                                                    
would  still enable  the department  to  conduct the  review                                                                    
with sufficient  time. She believed  all the  tariffs should                                                                    
be reviewed.  She surmised that  perhaps the  ones addressed                                                                    
in the  amendment would take  priority and the  others would                                                                    
be reviewed afterwards.                                                                                                         
                                                                                                                                
3:48:41 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster WITHDREW his Amendment  1 to Amendment H DOT                                                                    
30. He  MOVED conceptual  Amendment 2  to H  DOT 30  that he                                                                    
believed spoke to Representative Ortiz's concern.                                                                               
                                                                                                                                
Co-Chair   Seaton   made   clarifying  remarks   about   the                                                                    
amendments.                                                                                                                     
                                                                                                                                
Co-Chair  Foster  agreed.   He  elaborated  that  conceptual                                                                    
Amendment 2 amendment would read  "the Alaska Marine Highway                                                                    
System  consider revising  the Children's  Discount Tariffs"                                                                    
and  "consider deleting  the Underage  Discount Tariffs  and                                                                    
Youth Group  Discount Tariffs..." The word  "consider" would                                                                    
be inserted  in two  locations prior  to the  words "revise"                                                                    
and "delete."                                                                                                                   
                                                                                                                                
Representative Kawasaki OBJECTED.  He remarked the amendment                                                                    
would  still only  focus on  three of  the discount  tariffs                                                                    
offered.  He believed  it was  fair to  say the  legislature                                                                    
wanted  the department  to review  all existing  tariffs. He                                                                    
reiterated his prior testimony  regarding other tariffs such                                                                    
as senior citizen discounts, AMHS  employees, and others. He                                                                    
believed  all  the tariffs  should  be  looked at  on  equal                                                                    
footing  rather than  focusing on  the  three pertaining  to                                                                    
children.                                                                                                                       
                                                                                                                                
Representative Ortiz  spoke to the proposed  Amendment 2. He                                                                    
would  be  more  comfortable  with  "consider  revising  the                                                                    
Alaska Marine Highway System's discount programs."                                                                              
                                                                                                                                
Co-Chair  Foster WITHDREW  conceptual Amendment  2 to  H DOT                                                                    
30.                                                                                                                             
                                                                                                                                
Representative Ortiz MOVED to  adopt conceptual Amendment 3:                                                                    
It is the  intent of the legislature that  the Department of                                                                    
Transportation  and  Public Facilities,  "consider  revising                                                                    
the   Alaska  Marine   Highway   System's  discount   tariff                                                                    
program."                                                                                                                       
                                                                                                                                
There  being   NO  OBJECTION,  conceptual  Amendment   3  to                                                                    
Amendment H DOT 30 was ADOPTED.                                                                                                 
                                                                                                                                
3:52:02 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  noted that some of  the Amendment                                                                    
H DOT  30 explanation  was no  longer relevant.  He remarked                                                                    
the language could be deleted.                                                                                                  
                                                                                                                                
Representative   Pruitt  believed   it   was  a   conceptual                                                                    
amendment, which would take care of the challenges.                                                                             
                                                                                                                                
There being  NO further OBJECTION,  H DOT 30 was  ADOPTED as                                                                    
amended.                                                                                                                        
                                                                                                                                
3:53:29 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H DOT  31                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Marine Vessel Fuel                                                                                                         
     H DOT  31 - Reduce  FY 18 budget request  for estimated                                                                    
     fuel usage.                                                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     In  the  FY 18  budget  request  the Department  states                                                                    
     there will be a decreased need  for fuel in FY 18 given                                                                    
     the following planned service level reductions:                                                                            
                                                                                                                                
     Reduction in  annual vessel operating weeks  from 335.1                                                                    
     to  333.9 the  Taku and  Chenega are  not scheduled  to                                                                    
     operate in FY 2018                                                                                                         
                                                                                                                                
     Bellingham and  Prince Rupert  will receive  service on                                                                    
     alternating  weeks  for  7.5  weeks  from  January  2nd                                                                    
     through  February 21st  while the  Kennicott is  in her                                                                    
     annual overhaul project                                                                                                    
                                                                                                                                
     Based on the reduced  level of services describe above,                                                                    
     this  amendment reduces  the FY  18  budget request  of                                                                    
     $20,223,600 by $3,000,000 in  the Commodities line item                                                                    
     for estimated vessel fuel usage.                                                                                           
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair  Foster spoke  to his  objection. He  confirmed the                                                                    
department had  stated there would  be a decreased  need for                                                                    
fuel in  FY 18, which had  been reflected in the  budget. He                                                                    
elaborated it  had been built  into the  department's budget                                                                    
due  to decreased  service level  reductions. The  amendment                                                                    
reduction  would further  decrease  the  marine vessel  fuel                                                                    
component,  impacting   the  agency's  ability   to  operate                                                                    
vessels on  the published schedule.  The AMHS operated  as a                                                                    
whole  and  its  various components  were  interrelated  and                                                                    
dependent on  each other to  ensure the  effective operation                                                                    
of the  AMHS. The  reduction would  result in  an adjustment                                                                    
across  the system  and could  force  canceled sailings  and                                                                    
reduced service levels.                                                                                                         
                                                                                                                                
Representative Grenn  asked how  the $3  million commodities                                                                    
line figure had been chosen.                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up.  She answered  she                                                                    
had done  the math by using  the calendar and how  much fuel                                                                    
the  vessels used.  The estimate  was based  on the  current                                                                    
price of fuel, which could  increase or decline. She had not                                                                    
selected the way "they're decreasing things."                                                                                   
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson                                                                                                
OPPOSED: Ortiz, Grenn, Guttenberg, Kawasaki, Foster, Seaton                                                                     
                                                                                                                                
Vice-Chair  Gara  and  Representative Thompson  were  absent                                                                    
from the vote.                                                                                                                  
                                                                                                                                
The MOTION to adopt H DOT 31 FAILED (3/6).                                                                                      
                                                                                                                                
Representative Ortiz  WITHDREW Amendment  H DOT 32  (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
3:57:41 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  WITHDREW Amendment H UOA  6 (copy                                                                    
on file).                                                                                                                       
                                                                                                                                
Representative  Wilson  MOVED to  ADOPT  Amendment  H UOA  7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H UOA 7 - University Reduction of 5 percent                                                                                
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The amendment reduces the FY  18 Budget request for the                                                                    
     University  by  5   percent,  leaving  $308,781,825  of                                                                    
     Unrestricted General Funds in  the FY 18 budget request                                                                    
     and a total FY 18 budget request of $870,866,300.                                                                          
                                                                                                                                
Representative Guttenberg OBJECTED.                                                                                             
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Representative  Guttenberg   spoke  to  his   objection.  He                                                                    
explained that the  University had taken a hit  of about $53                                                                    
million  in the  past  three years.  He  believed that  when                                                                    
looking to  the future and considering  where the investment                                                                    
should be  made, the  University was  a significant  part of                                                                    
the picture. The  Board of Regent's request  was $16 million                                                                    
over the governor's proposed number.  In anticipation of the                                                                    
economic   situation  facing   the  state,   the  University                                                                    
president  had proposed  and  begun  developing a  strategic                                                                    
realignment plan. The  plan was still in  place, but despite                                                                    
that, the  higher education institutions around  the country                                                                    
had set a  standard for what the University  was expected to                                                                    
produce   in  terms   of  trained   workforce  and   college                                                                    
graduates. Even  with the governor's numbers  the University                                                                    
would probably not be able to  reach the standard and find a                                                                    
sustaining  level.  He  relayed  that  the  issue  had  been                                                                    
discussed constantly regarding  stopping the hemorrhaging in                                                                    
the  budget.  There  was also  discussion  about  jobs.  The                                                                    
University   turned  out   people  for   jobs  -   sometimes                                                                    
individuals needed training that did not require a degree.                                                                      
                                                                                                                                
Representative   Guttenberg  continued   to  speak   to  his                                                                    
opposition. He observed that  the legislature was constantly                                                                    
putting  the  University  in  a   place  where  it  made  it                                                                    
increasingly difficult  to do its  constitutionally required                                                                    
job; it  became more difficult  to track and  retain people,                                                                    
especially considering  there were 900 fewer  people working                                                                    
for the University  than in FY 15. He  continued that places                                                                    
had shut down and programs had  been curtailed - some of the                                                                    
things were vital for the economy.                                                                                              
                                                                                                                                
Representative   Kawasaki  agreed   with  the   comments  by                                                                    
Representative  Guttenberg  (the  chair  of  the  University                                                                    
budget   subcommittee).   The   University   had   sustained                                                                    
substantial reductions  - state  support had gone  from $377                                                                    
million in FY  14 to under $325 million in  the current year                                                                    
(a 14  percent reduction).  The University  was part  of the                                                                    
state's constitution  along with  public safety  and health.                                                                    
There were  over 900  individuals no  longer working  in the                                                                    
University,  which he  believed  had  severely impacted  the                                                                    
mission of the University. At  the same time, there had been                                                                    
tuition increases  and there  was a plan  in place  to raise                                                                    
tuition  to the  WICHE  [Western  Interstate Commission  for                                                                    
Higher  Education]  standard.   The  tuition  increases  had                                                                    
further   harmed  the   number   of   students  that   could                                                                    
participate at  the University, but the  University had made                                                                    
the increase because  it understood it needed to  be part of                                                                    
the solution.  At the same  time the administration  and the                                                                    
Board of  Regents supported tuition increases,  students had                                                                    
support for  the increases as  well, knowing they had  to be                                                                    
part of the solution as  well. He stated that the University                                                                    
was  primary for  Fairbanks  and was  a  pillar of  economic                                                                    
development. He stressed  that a further drastic  cut of $16                                                                    
million  would further  hamper  the  institution and  public                                                                    
education in Alaska.                                                                                                            
                                                                                                                                
Representative Grenn  spoke in opposition to  the amendment.                                                                    
He  believed   the  governor's   proposed  budget   for  the                                                                    
University  was  fair  given   the  current  budget  crisis.                                                                    
Despite the reduction  in funds, the University  had a great                                                                    
momentum  of operations  and things  it was  doing well.  He                                                                    
believed  in   the  University's  plan  moving   forward  to                                                                    
continue to be  a bright spot in Alaska.  He elaborated that                                                                    
further reductions  would be too dramatic  and hurtful given                                                                    
the University's importance for Alaska.                                                                                         
                                                                                                                                
4:04:13 PM                                                                                                                    
                                                                                                                                
Representative  Wilson provided  wrap up.  She stressed  the                                                                    
amendment   provided    opportunity.   She    believed   the                                                                    
University's  President Johnson  was  amazing  and would  do                                                                    
amazing things, but she did not  believe he would be able to                                                                    
do  so as  long as  the University  continued to  receive as                                                                    
much state funding  as it received at  present. She reasoned                                                                    
it became easy to sit back  and to continue doing things the                                                                    
same way.  She had learned  that more Alaskan  students were                                                                    
being  sent out  of state  to the  WICHE programs  than were                                                                    
coming  into Alaska  from other  states.  She stressed  that                                                                    
Alaska was losing students to  the program. She communicated                                                                    
that  the  University's  on-time   graduation  rate  was  15                                                                    
percent at the Fairbanks campus,  8 percent at the Anchorage                                                                    
campus, and 4 percent at  the Southeast campus. Whereas, the                                                                    
Alaska Pacific University had an  on-time graduation rate of                                                                    
53 percent.  The average was  56 percent. She  asked members                                                                    
to consider  the potential. She believed  the University had                                                                    
the potential  to get move  more money than  the amendment's                                                                    
proposed cut.                                                                                                                   
                                                                                                                                
Representative  Wilson stressed  that  if student  retention                                                                    
was  increased  by only  15  percent,  the University  could                                                                    
generate a  minimum of $11,834,928 per  year. She elaborated                                                                    
that  increasing  retention  by 30  percent  would  generate                                                                    
approximately $24 million per year,  which was more than the                                                                    
cut in  the proposed amendment. She  continued that numerous                                                                    
reports had been done -  one report the previous year showed                                                                    
$6 million  in reconsolidation of University  central staff.                                                                    
She stressed  that many people  were still  paid substantial                                                                    
salaries (more  than the governor was  paid). She emphasized                                                                    
over  $7 million  went to  athletics. She  communicated that                                                                    
statewide  personal services  for the  statewide section  of                                                                    
the  University had  grown by  $2,373,400. She  stressed the                                                                    
increment was not to pay  for teachers or professors, but to                                                                    
pay for "the people watching the people do the work."                                                                           
                                                                                                                                
Representative   Wilson  continued   that  in   2014,  1,958                                                                    
graduates   had  been   eligible  to   receive  the   Alaska                                                                    
Performance Scholarship (APS) and  941 (48 percent) attended                                                                    
somewhere  in Alaska,  35 percent  attended outside  Alaska,                                                                    
and 325  (17 percent)  were unknown.  There were  two places                                                                    
she  had  listed where  the  University  could increase  its                                                                    
revenue.  She  stressed  that  the   state  was  paying  the                                                                    
[tuition] money.  She found it concerning  that the eligible                                                                    
students were choosing  to pass the money up  and go out-of-                                                                    
state. The percentage of high  school graduates eligible for                                                                    
the APS in 2015 had been  32 percent and 29 percent in 2016.                                                                    
There was  an entire  group of  people the  University could                                                                    
target to  discuss its  programs that  cost less  than other                                                                    
locations. She  mentioned that free  classes to  seniors and                                                                    
free classes  to the  children of employees  may need  to be                                                                    
looked at.                                                                                                                      
                                                                                                                                
Representative  Wilson stressed  that the  University needed                                                                    
to learn to  compete online. She stated that  every time she                                                                    
turned  the  television  on  there  was  another  university                                                                    
trying to  take Alaskan students away  with online programs.                                                                    
She reasoned  that most  people or  programs did  not change                                                                    
until forced. She believed the  state was doing a disservice                                                                    
to  the  [University] president  because  he  was trying  to                                                                    
change things.  As long as  the money came from  state funds                                                                    
versus competing  in the  marketplace, the  University would                                                                    
have  a tendency  to  operate under  status  quo instead  of                                                                    
harnessing its  potential. Although the amendment  was a cut                                                                    
to  state funding,  it  did not  need  to be  a  cut to  the                                                                    
University.   She  had   confidence  the   University  could                                                                    
compete. She  recalled putting intent language  in the prior                                                                    
year's budget  in hopes  the University  would go  after the                                                                    
same list "that I did before."  She stated that more DGF had                                                                    
been raised. Although  the amendment would cut  UGF, she saw                                                                    
potential   for  the   University  if   it  was   given  the                                                                    
opportunity.                                                                                                                    
                                                                                                                                
                                                                                                                                
Representative Guttenberg MAINTAINED his OBJECTION.                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wilson, Pruitt, Tilton                                                                                                
OPPOSED: Grenn, Guttenberg, Kawasaki, Ortiz, Thompson,                                                                          
Foster, Seaton                                                                                                                  
                                                                                                                                
Vice-Chair Gara was absent from the vote.                                                                                       
                                                                                                                                
The MOTION to adopt Amendment H UOA 7 FAILED (3/7).                                                                             
                                                                                                                                
4:10:10 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:14:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton relayed the committee would address                                                                             
amendments pertaining to the legislature.                                                                                       
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment H LEG 13                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Legislative Council                                                                                                        
     Salaries and Allowances                                                                                                    
     H LEG 13  - Eliminate regular session per  diem for the                                                                    
     3  Juneau  legislators  and  reduce  all  other  by  75                                                                    
     percent of fed rate.                                                                                                       
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment  would  eliminate regular  session  per                                                                    
     diem expenses  for the 3 Juneau  legislator who receive                                                                    
     75 percent of  the federal per diem rate  for living in                                                                    
     Juneau during the session. This  results in a reduction                                                                    
     of $43,100 from the Travel line.                                                                                           
                                                                                                                                
     In addition,  the federal per  diem rate for  all other                                                                    
     legislators is reduced by 75  percent (from $213/day to                                                                    
     $53.25/day).  This results  in an  additional reduction                                                                    
     of $819,500 from the Travel line.                                                                                          
                                                                                                                                
Co-Chair Seaton OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].                                                                                                                         
                                                                                                                                
Co-Chair Seaton spoke to his  objection. He noted that under                                                                    
AS  24.10.130(c), the  Legislative Council  was tasked  with                                                                    
setting  the legislative  per diem  policy. The  Legislative                                                                    
Council  was  currently  reviewing   the  issue  and  had  a                                                                    
subcommittee working  on the topic.  He believed  that prior                                                                    
to making a budgetary change,  the council should be allowed                                                                    
to do the work it was tasked with by statute.                                                                                   
                                                                                                                                
Representative  Wilson provided  wrap up.  She did  not have                                                                    
high  hopes  something  would  change  because  [Legislative                                                                    
Council]  had the  opportunity  to make  a  change for  many                                                                    
years. She believed that prior  to asking for other people's                                                                    
money, the legislature should put its own house in order.                                                                       
                                                                                                                                
Co-Chair Seaton MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Pruitt                                                                                                
OPPOSED:  Thompson,   Gara,  Grenn,   Guttenberg,  Kawasaki,                                                                    
Ortiz, Foster, Seaton                                                                                                           
                                                                                                                                
The MOTION to adopt H LEG 13 FAILED (3/8).                                                                                      
                                                                                                                                
4:17:23 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H LEG  14                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H LEG 14 - Eliminate regular session per diem expenses                                                                     
     for three Juneau legislators.                                                                                              
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     The  amendment  eliminates  regular  session  per  diem                                                                    
     expenses for  three Juneau  legislators who  receive 75                                                                    
     percent  of the  federal per  diem rate  for living  in                                                                    
     Juneau during the session. Regular  session per diem is                                                                    
     budgeted in this allocation for a 90-day session.                                                                          
                                                                                                                                
Co-Chair Seaton OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above]. She  added that she would  not take per diem  if she                                                                    
had the  ability to sleep in  her own bed and  drive to work                                                                    
every day. She  did not believe others [with  the ability to                                                                    
live at home during session] should take per diem either.                                                                       
                                                                                                                                
Co-Chair  Seaton spoke  to his  objection.  He relayed  that                                                                    
statutory authority was given  to the Legislative Council to                                                                    
work on per diem policy, which it was currently doing.                                                                          
                                                                                                                                
Representative  Pruitt MOVED  to conceptual  Amendment 1  to                                                                    
the amendment. He  wanted the amendment to  apply to regular                                                                    
session per  diem or  any session  per diem  for legislators                                                                    
living within  50 miles  of the  location where  session was                                                                    
being held.                                                                                                                     
                                                                                                                                
Co-Chair Seaton  noted it was  too complicated to take  as a                                                                    
verbal amendment.                                                                                                               
                                                                                                                                
Representative Pruitt  addressed his  point. There  had been                                                                    
people with legitimate concerns  with people taking per diem                                                                    
in Anchorage  during a past  session. He shared that  he had                                                                    
not taken per  diem and that most  legislators living nearby                                                                    
also chose not  to take per diem. However, there  were a few                                                                    
legislators  who  had. He  believed  it  was the  issue  the                                                                    
amendment sponsor  was trying to address.  He understood the                                                                    
amendment,  but  if  a  session was  ever  held  in  another                                                                    
location he  believed it should apply  to legislators within                                                                    
that  area.  He  thought  it   may  be  a  conversation  for                                                                    
Legislative Council.  He believed the Salary  Commission and                                                                    
Legislative Council needed to  consider a discussion about a                                                                    
flat salary  that excluded per  diem to get away  from "this                                                                    
garbage"  that took  place annually.  He stated  that people                                                                    
tried  to  use  it  against  each  other.  He  WITHDREW  the                                                                    
amendment to the amendment.                                                                                                     
                                                                                                                                
Vice-Chair Gara agreed with  Representative Pruitt, he hoped                                                                    
Legislative Council took the issue  on. He had not spoken to                                                                    
many people who wanted a recent  raise that they did not ask                                                                    
for.  He   discussed  that  the  problem   with  the  Salary                                                                    
Commission  was   that  it  wanted  to   raise  legislators'                                                                    
salaries. The  legislature had asked  the commission  not to                                                                    
raise its  salaries. He thought  the commission  had decided                                                                    
not  to meet  one year  because it  had received  the strong                                                                    
indication  from  the  legislature  that  it  did  not  want                                                                    
salaries raised.                                                                                                                
                                                                                                                                
4:21:41 PM                                                                                                                    
                                                                                                                                
Representative Grenn echoed the  prior comments. He received                                                                    
calls  from  constituents asking  about  per  diem, what  it                                                                    
meant,  and how  it was  spent.  He believed  the issue  was                                                                    
worth  a larger  discussion. He  had rejected  the increased                                                                    
rate that legislators had received  earlier in the month. He                                                                    
had also  rejected other per  diems. He welcomed  the debate                                                                    
and discussion  currently occurring in  Legislative Council.                                                                    
He  hoped   there  could  be   further  discussion   in  the                                                                    
legislature to add transparency and public trust.                                                                               
                                                                                                                                
Representative Wilson provided wrap  up. Stated she probably                                                                    
should  have  included 50  miles  versus  limiting it  to  a                                                                    
specific location.  The federal government included  the 50-                                                                    
mile limit, but Legislative  Council had determined sometime                                                                    
in the  past that it did  not use the same  method. She knew                                                                    
the  per  diem  for  legislators within  the  50  miles  was                                                                    
addressed  in a  different way;  however, she  stressed that                                                                    
"we're in  different times." The  amendment was  not against                                                                    
the  legislators in  Juneau -  it went  back to  the federal                                                                    
government's current 50-mile limit.                                                                                             
                                                                                                                                
Co-Chair Seaton MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Wilson, Thompson                                                                                              
OPPOSED: Gara,  Grenn, Guttenberg, Kawasaki,  Ortiz, Pruitt,                                                                    
Seaton, Foster                                                                                                                  
                                                                                                                                
The MOTION to adopt H LEG 14 FAILED (3/8).                                                                                      
                                                                                                                                
4:24:03 PM                                                                                                                    
                                                                                                                                
Representative  Wilson MOVED  to  ADOPT Amendment  H LEG  15                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Legislative Operating Budget                                                                                               
     Session Expenses                                                                                                           
     H LEG 15 - Eliminate all funding and positions                                                                             
     associated with the Legislative Lounge.                                                                                    
     Offered by Representative Wilson                                                                                           
                                                                                                                                
     This  amendment eliminates  all  funding and  positions                                                                    
     associated with  the Legislative Lounge.  The positions                                                                    
     being  eliminated  are  the  Senate  Legislative  Chef,                                                                    
     Senate  Lounge Attendant,  House Lounge  Assistant, and                                                                    
     House Lounge Attendant.                                                                                                    
                                                                                                                                
Co-Chair Seaton OBJECTED.                                                                                                       
                                                                                                                                
Representative  Wilson read  the amendment  description [see                                                                    
above].  She  elaborated that  the  amount  charged did  not                                                                    
cover  the costs.  She  purchased her  food  at the  grocery                                                                    
store. Additionally, there were  restaurants nearby that she                                                                    
did  not  understand why  the  legislature  was choosing  to                                                                    
compete against. The only argument  she had heard was "where                                                                    
will  legislators meet  to talk?"  She reasoned  legislators                                                                    
could  meet anywhere  to  talk. She  added  that the  lounge                                                                    
would still  be a space  to utilize with a  refrigerator and                                                                    
tables.  She  believed  a privately  maintained  lounge  was                                                                    
unnecessary. She concluded  that the cut would  not hurt any                                                                    
constituents. She opined that  action should have been taken                                                                    
much sooner.                                                                                                                    
                                                                                                                                
Vice-Chair Gara stated  the issue had never come  up in past                                                                    
years  where there  had  been a  different  majority in  the                                                                    
House.  He stated  the new  [House]  Majority had  increased                                                                    
fees at  the lounge. He  did not mind  if fees went  up even                                                                    
higher.                                                                                                                         
                                                                                                                                
Co-Chair Seaton spoke to his  objection. He stated that many                                                                    
staff remained  in their offices  during lunch  and received                                                                    
food from  the lounge.  He spoke  to the  loss of  time that                                                                    
would occur  in legislative offices if  individuals left the                                                                    
building. Additionally,  the lounge was a  neutral gathering                                                                    
place for  both bodies of  the legislature. He  stressed the                                                                    
value of  the conversations  that took  place in  the lounge                                                                    
that aided in moving the legislative process forward.                                                                           
                                                                                                                                
Vice-Chair Gara  wondered why the  amendment had  never been                                                                    
brought forward in prior years.                                                                                                 
                                                                                                                                
Co-Chair  Seaton   replied  that   the  question   could  be                                                                    
addressed in wrap up.                                                                                                           
                                                                                                                                
4:27:40 PM                                                                                                                    
                                                                                                                                
Representative Tilton believed there  were other places that                                                                    
delivered  food   from  businesses  in  Juneau.   Her  staff                                                                    
received  had food  delivered  from  other restaurants.  She                                                                    
agreed the lounge was a nice  place, but she had not visited                                                                    
it in the  current year. She spoke to  other locations where                                                                    
legislators  could  have  conversations.  She  referenced  a                                                                    
group of legislators who bowled  together as an example. She                                                                    
did not believe the lounge  was necessary during the current                                                                    
fiscal crisis.                                                                                                                  
                                                                                                                                
Representative Guttenberg  pointed out  that the  lounge was                                                                    
not  open in  the  evening;  it shut  down  after lunch.  He                                                                    
believed it served an amazing function in the building.                                                                         
                                                                                                                                
Representative Wilson  provided wrap  up. She  stressed that                                                                    
the  amendment did  not proposed  to  lock the  door to  the                                                                    
lounge.  She  found  new  freedom in  the  minority  in  the                                                                    
current year. She had more  time the current session because                                                                    
she was  not heading  a budget  subcommittee. She  had spent                                                                    
substantial time with the budget  book and had located items                                                                    
she had not  found in previous years.  Additionally, she had                                                                    
been soliciting  amendments from other legislators,  who she                                                                    
thanked. She agreed that the  lounge was not open during the                                                                    
evening, but the  door was still unlocked, and  the room was                                                                    
available for  legislators. Her staff also  brought in their                                                                    
own meals.  She shared that  she was typically at  work from                                                                    
7:00 am to midnight and did  not utilize the lounge; it cost                                                                    
$137,000  for session.  She stressed  it  was a  significant                                                                    
amount of money.  She added that the  legislature was taking                                                                    
away from  private business. She  had no interest  in asking                                                                    
Alaskans to pay for something  like the lounge. She believed                                                                    
it was a small sacrifice for legislators to make.                                                                               
                                                                                                                                
Co-Chair Seaton MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt, Tilton, Wilson                                                                                                
OPPOSED:   Gara,   Grenn,   Guttenberg,   Kawasaki,   Ortiz,                                                                    
Thompson, Foster, Seaton                                                                                                        
                                                                                                                                
The MOTION to adopt H LEG 15 FAILED (3/8).                                                                                      
                                                                                                                                
4:32:08 PM                                                                                                                    
                                                                                                                                
Representative  Seaton MOVED  to  ADOPT Amendment  H SAP  17                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Language Amendments                                                                                                        
     H SAP 17 - Remove capital project for Deferred                                                                             
     Maintenance and Accessibility Improvements                                                                                 
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     This  deletes a  mental health  capital project  in the                                                                    
     Department of  Health and Social Services.  The project                                                                    
     is   "MH   Deferred   Maintenance   and   Accessibility                                                                    
     Improvements" and it is funded with $250.0 of MHTAAR.                                                                      
                                                                                                                                
     The amendment shows zero  (rather than -$250.0) because                                                                    
     the project  appears in the  capital budget  system and                                                                    
     reports track only operating budget amendments.                                                                            
                                                                                                                                
     The  House always  deletes  one  mental health  capital                                                                    
     project  and the  other body  deletes all  other mental                                                                    
     health capital projects, thus making  all of the mental                                                                    
     health   capital   projects   subject   to   conference                                                                    
     committee action.                                                                                                          
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Seaton explained  the  amendment that  would                                                                    
delete a capital  project from the mental  health budget for                                                                    
the  deferred  maintenance  and  accessibility  improvements                                                                    
project within  DHSS; the project  was funded  with $250,000                                                                    
Mental Health Trust  Authority Authorized Receipts (MHTAAR).                                                                    
He  detailed that  each year  the House  deleted one  mental                                                                    
health capital  project and the  other body deleted  all the                                                                    
other mental health capital projects.  The actions made sure                                                                    
all  the  mental health  capital  projects  were subject  to                                                                    
conference committee.                                                                                                           
                                                                                                                                
Representative  Wilson asked  if  the  legislature had  ever                                                                    
changed the mental health budget.                                                                                               
                                                                                                                                
Vice-Chair Gara  stated that he  had. He shared that  in the                                                                    
previous   year  another   legislator  had   tried  to   cut                                                                    
disability benefits  in the  mental health  budget -  he and                                                                    
his caucus had restored the funds.                                                                                              
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, H SAP 17 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair  Foster MOVED  to give  Legislative Legal  Services                                                                    
and the Division of Legislative  Finance the ability to make                                                                    
conforming and  technical corrections to HB  57. There being                                                                    
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
Co-Chair  Foster MOVED  to give  Legislative Legal  Services                                                                    
and the Division of Legislative  Finance the ability to make                                                                    
conforming and technical corrections to HB 59. There being                                                                      
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
Co-Chair Seaton relayed the meeting would be recessed until                                                                     
the following morning at 8:30 a.m. [Note: see 3/10/17 8:30                                                                      
a.m. minutes for detail.]                                                                                                       
                                                                                                                                
^RECESSED                                                                                                                       
4:35:36 PM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
HB 57 Adopted Amendments as of 3.8.17.pdf HFIN 3/9/2017 1:30:00 PM
HB 57
HB 57 ALL Adopted Amendments.pdf HFIN 3/9/2017 1:30:00 PM
HB 57