Legislature(2017 - 2018)ADAMS ROOM 519

02/23/2018 01:30 PM FINANCE

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01:32:36 PM Start
01:34:25 PM HB285 || HB286
01:34:28 PM Department of Administration Subcommittee Amendments
01:47:14 PM Department of Commerce, Community and Economic Development Subcommittee Amendments
02:21:59 PM Department of Education and Early Development Subcommittee Amendments
02:55:00 PM Department of Fish and Game Subcommittee Amendments
03:16:09 PM Office of the Governor Subcommittee
03:18:32 PM Judiciary Subcommittee Amendments
03:23:44 PM Department of Labor and Workforce Development Subcommittee
03:26:27 PM Department of Revenue Subcommittee Amendments
03:35:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+ Subcommittee Reports & Amendments: TELECONFERENCED
- Judiciary
- Dept. of Administration
- Dept. of Commerce, Community & Economic
Development
- Dept. of Education & Early Development
- Dept. of Fish & Game
- Office of the Governor
- Dept. of Labor & Workforce Development
- Dept. of Revenue
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 23, 2018                                                                                          
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:36 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Seaton  called the House Finance  Committee meeting                                                                    
to order at 1:32 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 Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Cathy Tilton                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Cheryl  Lowenstein,  Director,  Division  of  Administrative                                                                    
Services, Department  of Administration; Sana  Efird, Deputy                                                                    
Commissioner,    Department   of    Education   and    Early                                                                    
Development;  Amanda  Ryder,  Analyst,  Legislative  Finance                                                                    
Division;   Carol   Petraborg,   Director,   Department   of                                                                    
Administrative Services, Department of  Fish and Game; Scott                                                                    
Kelly,   Director,   Division   of   Commercial   Fisheries,                                                                    
Department of Fish and Game.                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 285    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 285 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 286    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 286 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
BUDGET SUBCOMMITTEE REPORTS and AMENDMENTS:                                                                                     
                                                                                                                                
     DEPARTMENT OF ADMINISTRATION                                                                                               
     DEPARTMENT   OF   COMMERCE,  COMMUNITY   AND   ECONOMIC                                                                    
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                              
     DEPARTMENT OF FISH AND GAME                                                                                                
     OFFICE OF THE GOVERNOR                                                                                                     
     JUDICIARY                                                                                                                  
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     DEPARTMENT OF REVENUE                                                                                                      
                                                                                                                                
Co-Chair Seaton reviewed the meeting  agenda. He shared that                                                                    
the  subcommittee reports  were  posted  on the  Legislative                                                                    
Finance Division  website. He  noted the  reports may  be an                                                                    
incomplete  picture  of  the   department's  budget.  A  new                                                                    
committee   substitute  would   be   compiled  for   further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 285                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     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."                                                                                                        
                                                                                                                                
1:34:25 PM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF ADMINISTRATION SUBCOMMITTEE AMENDMENTS                                                                         
                                                                                                                                
1:34:28 PM                                                                                                                    
                                                                                                                                
Representative Grenn provided a subcommittee report for the                                                                     
Department of Administration (DOA) with a prepared                                                                              
statement (copy on file):                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Administration  held four  meetings with                                                                    
     the Department  during the review  of the FY  19 budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Administration   recommends  the  House                                                                    
     Finance  Committee  accept  the amended  Department  of                                                                    
     Administration FY 19 operating budget as follows:                                                                          
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $70,347.9                                                                          
     Designated General Funds (DGF)          $32,069.0                                                                          
     Other Funds                             $234,128.9                                                                         
     Federal Funds                           $3,900.0                                                                           
     Total                                   $340,445.8                                                                         
                                                                                                                                
     The Unrestricted  General Fund  difference from  the FY                                                                    
     15  Management Plan  to the  FY  19 House  Subcommittee                                                                    
     budget recommendation  is a reduction of  $15,500.1, an                                                                    
     18.1 percent decrease.                                                                                                     
                                                                                                                                
     From the FY 18 Management  Plan, the House Subcommittee                                                                    
     recommendation   reflects    a   total    increase   in                                                                    
     Unrestricted General  Funds of $1,497.9, a  2.2 percent                                                                    
     increase.                                                                                                                  
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      1,189                                                                                             
     Permanent Part-time      10                                                                                                
     Temporary                25                                                                                                
     Total                    1,224                                                                                             
                                                                                                                                
     The subcommittee  for the Department  of Administration                                                                    
     accepted one governor's  amendment and two subcommittee                                                                    
     amendments, which  I will describe in  more detail when                                                                    
     the  committee  takes  up these  amendments  in  a  few                                                                    
     moments.                                                                                                                   
                                                                                                                                
     The  subcommittee  made no  statutory  recommendations.                                                                    
     Members  discussed  a  variety  of  issues  during  the                                                                    
     subcommittee process.  A few  topics of note  raised by                                                                    
     the department and further research included:                                                                              
                                                                                                                                
     Alaska Public Defender Agency v. Superior Court                                                                            
     It was brought to  the Subcommittee's attention that on                                                                    
     January  12,   2018,  the  Superior  Court   of  Alaska                                                                    
     released  a  decision  holding that  "when  the  Public                                                                    
     Defender  Agency or  the Office  of Public  Advocacy is                                                                    
     representing an  indigent defendant  who is (1)  not in                                                                    
     custody and  who is (2)  unable to afford to  travel to                                                                    
     the  site of  their  trial, the  agency  shall pay  the                                                                    
     necessary   expense.  And   when  a   delinquency  case                                                                    
     involves a minor  who is not reasonably  able to travel                                                                    
     alone, the  agency shall pay  for a parent  or guardian                                                                    
     to  accompany the  minor."  While  the Public  Defender                                                                    
     Agency is  in the  process of appealing  this decision,                                                                    
     the   outcome   could    have   significant   financial                                                                    
     consequences  for  the Department  of  Administration's                                                                    
     operating budget in future years.                                                                                          
                                                                                                                                
     Public Defender Agency Caseloads                                                                                           
     During  an  overview  by the  Public  Defender  Agency,                                                                    
     concern was  raised by both  the agency and  members in                                                                    
     relation  to Public  Defender caseloads.  In 1998,  the                                                                    
     Alaska  Division  of   Legislative  Audit  conducted  a                                                                    
     workload study  of the  Alaska Public  Defender Agency;                                                                    
     the recommended  maximum ethical  caseload at  60 hours                                                                    
     per week is a weighted  average of 59 cases. The Agency                                                                    
     is currently projecting a weighted  average of 92 cases                                                                    
     under  the  Legislative  Audit Standard,  which  is  56                                                                    
     percent above  the recommended  maximum caseload  for a                                                                    
     60-hour  work   week.  Given  the   constitutional  and                                                                    
     statutory obligations of the  Public Defender Agency to                                                                    
     provide   a   standard   of   ethical   representation,                                                                    
     increasing caseloads  create some cause for  concern as                                                                    
     refusal  or   dismissal  of  cases  due   to  excessive                                                                    
     caseloads by other jurisdictions  has led to litigation                                                                    
     based on right to counsel.                                                                                                 
                                                                                                                                
1:38:07 PM                                                                                                                    
                                                                                                                                
Representative Grenn continued with prepared remarks:                                                                           
                                                                                                                                
     Office of Public Advocacy Caseloads                                                                                        
     Subcommittee  members also  heard  from  the Office  of                                                                    
     Public   Advocacy  regarding   caseload  concerns.   In                                                                    
     particular,  court-appointed  Guardian Ad  Litems  have                                                                    
     seen  a substantial  increase  in  workload, with  OCS-                                                                    
     filed cases rising significantly  since FY 15. Guardian                                                                    
     Ad  Litems are  statutorily-required advocates  for the                                                                    
     best  interests of  children in  Child In  Need of  Aid                                                                    
     (CINA),  civil custody,  and  domestic violence  cases.                                                                    
     With an average caseload  of 110 children per attorney,                                                                    
     Guardian Ad Litems are currently  unable to fulfill all                                                                    
     statutory    and   ethical    obligations,   such    as                                                                    
     visitations,  due  to  case  overload.  The  Governor's                                                                    
     proposed  FY  19  budget adds  one  Guardian  Ad  Litem                                                                    
     position.   However,   additional  resources   may   be                                                                    
    required to bring caseloads to a manageable level.                                                                          
                                                                                                                                
Representative Grenn  relayed that  all items raised  in the                                                                    
subcommittee report were being  researched by his office. He                                                                    
thanked  the Department  of Administration,  the Legislative                                                                    
Finance Division, and subcommittee members.                                                                                     
                                                                                                                                
1:39:15 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:39:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Grenn MOVED to ADOPT Amendment H DOA 1 (copy                                                                     
on file):                                                                                                                       
                                                                                                                                
     Shared Services of Alaska                                                                                                  
     Facilities                                                                                                                 
     H  DOA 1  Reduce I/A  Receipt Authority  to Align  with                                                                    
     Actual Expenditures                                                                                                        
     Since  FY  2009,  the  Department  of  Administration's                                                                    
     interagency   receipt   actuals  in   Facilities   have                                                                    
     averaged  466.5. Since  FY2014, Facilities  interagency                                                                    
     receipt actuals have not exceeded 477.2.                                                                                   
                                                                                                                                
     To  better  align  the Department's  receipt  authority                                                                    
     with   actual   need,   the   amendment   deletes   all                                                                    
     interagency receipt authority in excess of 600.0                                                                           
                                                                                                                                
Representative Pruitt OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Grenn   explained   that   the   facilities                                                                    
allocation in Shared Services of  Alaska held funding to pay                                                                    
for costs  associated with state owned  buildings managed by                                                                    
DOA.  This receipt  authority supports  the  rate charge  to                                                                    
each state agency to occupy  public building space. Since FY                                                                    
09,   DOA's  interagency   receipt  actuals   in  facilities                                                                    
averaged  $466,500.  Since   FY  14  facilities  interagency                                                                    
receipt actuals have not exceeded  $477,200. To better align                                                                    
the department's  receipt authority  with actual  need, this                                                                    
amendment   deletes   $567,600    in   interagency   receipt                                                                    
authority, bringing the  department's authority to $600,000.                                                                    
the  department helped  determine $600,000  as a  reasonable                                                                    
level of receipt authority  that acknowledged the historical                                                                    
utilization  of receipts  while accounting  for some  of the                                                                    
variation from year to year.                                                                                                    
                                                                                                                                
1:40:53 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  and Representative  Pruitt  WITHDREW                                                                    
their   OBJECTIONS.  There   being  NO   further  OBJECTION,                                                                    
Amendment H DOA 1 was ADOPTED.                                                                                                  
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment GA 1 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Office of Information Technology                                                                                           
     Alaska Division of Information Technology                                                                                  
     GA 1 2/14  Change to Use Interagency  Receipt Fund Code                                                                    
     Specific to Information Technology                                                                                         
                                                                                                                                
     Replace interagency  receipts with  Information Service                                                                    
     Fund.  This  is a  technical  adjustment  to align  the                                                                    
     Office  of Information  Technology's (OIT)  budget with                                                                    
     the most appropriate fund source.                                                                                          
                                                                                                                                
     Authorized  by AS  44.21.045, the  Information Services                                                                    
     Fund  is an  internal service  fund designed  to enable                                                                    
     OIT  to   charge  and  collect  fees   for  information                                                                    
     technology  services provided  by OIT  to agencies  and                                                                    
     political  subdivisions of  the  state. An  Information                                                                    
     Services Fund  allows for the collection  and reporting                                                                    
     of  the  full  cost  of  goods  or  services  including                                                                    
     capital assets  and depreciation. This is  important to                                                                    
     rate development  and allows  for the smoothing  out of                                                                    
     rate fluctuations over time.                                                                                               
                                                                                                                                
     The interagency  receipts were placed in  the budget to                                                                    
     provide  chargeback flexibility  during the  transition                                                                    
     to the centralized model. As  the transition is nearing                                                                    
     completion, returning to  the Information Services Fund                                                                    
     model is required.                                                                                                         
     FY2019 Governor: $46,066.5                                                                                                 
     FY2019 Total Amendments: $0.0                                                                                              
     FY2019 Total: $46,066.5                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
1:41:25 PM                                                                                                                    
                                                                                                                                
Representative   Grenn  explained   the  amendment   with  a                                                                    
prepared statement:                                                                                                             
                                                                                                                                
     This  amendment accepts  the governor's  request for  a                                                                    
     fund source change  replacing $9,701,000 of interagency                                                                    
     receipts  with information  service  funds.  This is  a                                                                    
     technical   adjustment   to   align   the   Office   of                                                                    
     Information   Technology's   budget   with   the   most                                                                    
     appropriate  fund source  authorized  by AS  44.21.045,                                                                    
     the Information  Services Fund  is an  internal service                                                                    
     fund  designed  to  enable the  Office  of  Information                                                                    
     Technology to  charge and collect fees  for information                                                                    
     technology services provided  to agencies and political                                                                    
     subdivisions  of  the  state. An  information  services                                                                    
     fund allows  for the collection and  reporting the full                                                                    
     cost of goods or  services including capital assets and                                                                    
     depreciation.  This is  important  to rate  development                                                                    
     and allows  for the smoothing out  of rate fluctuations                                                                    
     over  time. The  interagency  receipts were  originally                                                                    
     placed in the budget  to provide chargeback flexibility                                                                    
     during the  transition of a  centralized model.  As the                                                                    
     transition is now nearing  completion, returning to the                                                                    
     information services fund model is required.                                                                               
                                                                                                                                
Representative  Pruitt   asked  how  the  fund   was  funded                                                                    
(internally or externally).                                                                                                     
                                                                                                                                
Representative Grenn deferred to DOA.                                                                                           
                                                                                                                                
CHERYL  LOWENSTEIN,  DIRECTOR,  DIVISION  OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  ADMINISTRATION, answered  that the                                                                    
bulk of  receipts were received from  internal agencies. She                                                                    
detailed  there  was  a  chargeback  rate  for  IT  services                                                                    
provided;  a   small  portion  of  funding   came  from  the                                                                    
Municipality  of  Anchorage for  use  of  a portion  of  the                                                                    
department's mainframe.                                                                                                         
                                                                                                                                
Representative Pruitt  assumed the funding request  had come                                                                    
from  the   department.  He  asked  why   DOA  supported  or                                                                    
requested a change from  interagency receipts to information                                                                    
service funds.                                                                                                                  
                                                                                                                                
1:44:26 PM                                                                                                                    
                                                                                                                                
Ms.  Lowenstein  replied  that  the  Office  of  Information                                                                    
Technology functioned on rates.  The internal agency funding                                                                    
source was  not as  flexible as  the internal  service fund;                                                                    
therefore, the  department preferred the fund  source change                                                                    
to  allow  for smoothing  of  the  rates. She  detailed  the                                                                    
division  had  32  cost  centers and  when  there  was  over                                                                    
collection in one, the division  could potentially be liable                                                                    
to pay back  the federal government. The  change would allow                                                                    
using  the  internal  service  fund  to  smooth  out  rates.                                                                    
Additionally,   internal  agency   receipts  were   also  an                                                                    
administrative burden.  The process  had worked well  in the                                                                    
current because  it had been  a one-for-one  agreement (e.g.                                                                    
ten people were brought in  and the division charged for ten                                                                    
people). She  explained that the  coming year they  would be                                                                    
developed into the rates -  the internal services fund would                                                                    
be used for that purpose.                                                                                                       
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendment GA 1 was ADOPTED.                                                                               
                                                                                                                                
1:45:45 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment H DOA 2 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Information Services Fund                                                                                                  
     H DOA 2                                                                                                                    
     Delete All Receipt Authority for                                                                                           
     Information Services Fund Component                                                                                        
                                                                                                                                
     Since  FY2009,  the  Department of  Administration  has                                                                    
     historically spent 0.0  in statutory designated program                                                                    
     receipts  in  the  Services line  item  of  Information                                                                    
     Services   Fund.  In   addition,  the   Department  has                                                                    
     identified this component as  unnecessary to their core                                                                    
     services                                                                                                                   
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Grenn explained the amendment with a                                                                             
prepared statement:                                                                                                             
                                                                                                                                
     This amendment deletes  $55,000 in statutory designated                                                                    
     program  receipts  in  the service  line  item  of  the                                                                    
     Information  Services Fund.  Effectively deleting  this                                                                    
     allocation  from the  budget. The  Information Services                                                                    
     Fund  component  of  the department's  budget  contains                                                                    
     receipt  authority  to   collect  fees  from  non-state                                                                    
     agencies  for services  provided, which  would then  be                                                                    
     appropriated  into   the  Information   Services  Fund.                                                                    
     However, since  FY 09 the Department  of Administration                                                                    
     has   collected  zero   statutory  designated   program                                                                    
     receipts  in   this  allocation.  The   department  has                                                                    
     identified this component as  unnecessary to their core                                                                    
     services  and  testified that  they  do  not foresee  a                                                                    
     situation where these funds would be needed.                                                                               
                                                                                                                                
1:46:40 PM                                                                                                                    
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION. There being                                                                       
NO further OBJECTION, Amendment H DOA 2 was ADOPTED.                                                                            
                                                                                                                                
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                   
SUBCOMMITTEE AMENDMENTS                                                                                                       
                                                                                                                                
1:47:14 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  provided a  subcommittee  report                                                                    
for  the  Department  of Commerce,  Community  and  Economic                                                                    
Development  (DCCED).  He  read from  a  prepared  statement                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Commerce,  Community   and   Economic                                                                    
     Development held 8 meetings  with the department during                                                                    
     the review of the FY 19 budget request.                                                                                    
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Commerce,  Community   and   Economic                                                                    
     Development   recommends   that   the   House   Finance                                                                    
     Committee accept  the Governor's  FY 19  Amended Budget                                                                    
     with further amendments:                                                                                                   
                                                                                                                                
     The numbers only budget without amendment totals:                                                                          
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $10,034.3                                                                          
     Designated General Funds (DGF)          46,236.0                                                                           
     Other Funds                             57,044.5                                                                           
     Federal Funds                           21,111.5                                                                           
    Total                                   $134,426.3                                                                          
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  15                                                                    
     Management   Plan   to   the  FY   19   House   Finance                                                                    
     Recommendation budget is a  reduction of $20.8 million,                                                                    
     a decrease of 67.4 percent.                                                                                                
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      500                                                                                               
     Permanent Part-time      0                                                                                                 
     Temporary                5                                                                                                 
     Total                    505                                                                                               
                                                                                                                                
     The Governor did not submit any amendments.                                                                                
                                                                                                                                
     The subcommittee  discussed a variety of  issues during                                                                    
     the meetings.  Those that  I have  not put  forward for                                                                    
     consideration by  the House Finance  Committee include,                                                                    
     but are not limited to:                                                                                                    
                                                                                                                                
     l. The subcommittee  reviewed the Regulatory Commission                                                                    
     of Alaska's  Docket 1-17-004,  a legislative  report on                                                                    
     Alaska's current and future broadband coverage.                                                                            
     2. The  subcommittee received an  update on  the Ambler                                                                    
     Mining District Access Project.                                                                                            
     3.  An amendment  proposal  was  considered that  would                                                                    
     have  provided additional  regulato1  positions to  the                                                                    
     Regulatory Commission of Alaska.                                                                                           
                                                                                                                                
Representative  Guttenberg  elaborated that  the  Regulatory                                                                    
Commission  of Alaska  (RCA) was  in the  middle of  an open                                                                    
docket  and  it was  too  soon  to  broach the  subject  and                                                                    
receive  input. The  subcommittee  had  reviewed the  Ambler                                                                    
Mining  District  Access Project  -  an  amendment had  been                                                                    
considered  that would  have provided  additional regulatory                                                                    
positions for the RCA. The  amendment was in response to the                                                                    
industry's  need   for  help  to  facilitate   some  of  its                                                                    
requests.  However, the  subcommittee had  not been  able to                                                                    
determine exactly what  the industry wanted or  where to put                                                                    
it. He  explained the request  would be  put off to  a later                                                                    
time.                                                                                                                           
                                                                                                                                
Representative   Guttenberg   concluded   his   subcommittee                                                                    
report. The subcommittee  made no statutory recommendations.                                                                    
He listed attached reports  including an allocation summary,                                                                    
multi-year allocation summary, and a transaction detail.                                                                        
                                                                                                                                
1:50:22 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Regulatory Commission of Alaska                                                                                            
     H CED 1                                                                                                                    
     Broadband Mapping Requirements                                                                                             
     Wordage:                                                                                                                   
     It is the intent of  the legislature that every company                                                                    
     providing  advanced  telecommunications  capability  in                                                                    
     the State of  Alaska file a report  with the Regulatory                                                                    
     Commission  of   Alaska.  The  report   should  include                                                                    
     geographic  information  system   "shapefiles"  of  the                                                                    
     territory  in   which  it   offers  service,   and  the                                                                    
     connection  speed  and  type  of  technology  for  each                                                                    
     serviceable street  address or land parcel  to which it                                                                    
     offers  service. The  Regulatory  Commission of  Alaska                                                                    
     shall deliver  a report summarizing  broadband internet                                                                    
     access  in Alaska  to  the Speaker  of  the House,  the                                                                    
     President  of the  Senate, the  Co-Chairs of  the House                                                                    
     Finance Committee, the Co-Chairs  of the Senate Finance                                                                    
     Committee,  and the  Legislative  Finance Division,  by                                                                    
     December 1, 2018.                                                                                                          
                                                                                                                                
     Explanation:                                                                                                               
     Current  mapping  requirements provide  information  on                                                                    
     broadband  access  at  the census  block  level.  These                                                                    
     requirements   do   not   result   in   accurate   maps                                                                    
     identifying where  Alaskans have access and  where they                                                                    
     do not.  This amendment  seeks to obtain  more detailed                                                                    
     information that will result in more accurate mapping.                                                                     
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Guttenberg relayed  that the  two amendments                                                                    
had  been based  on  recommendations for  action  in an  RCA                                                                    
report. The  legislature had included language  in the prior                                                                    
year's budget requiring  RCA to do a report on  the state of                                                                    
broadband  and   its  future  in  Alaska.   There  had  been                                                                    
deficiencies  in what  the RCA  could  report or  understand                                                                    
about    broadband.    The    amendments    contained    two                                                                    
recommendations  from the  report. He  referenced a  comment                                                                    
made in committee asking why  the legislature was requesting                                                                    
a report from  RCA. He explained the  report included intent                                                                    
language recommendations to better  understand the nature of                                                                    
broadband  in  Alaska.  He explained  there  was  no  fiscal                                                                    
impact  or  general  funds;  the RCA  would  deal  with  the                                                                    
request as it could.                                                                                                            
                                                                                                                                
Representative   Guttenberg   read    from   the   amendment                                                                    
description [see above for detail].                                                                                             
                                                                                                                                
1:52:43 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  thought  it  seemed  to  be  private                                                                    
information  from  private  companies.  She  asked  for  the                                                                    
current  process  and  wondered  whether  companies  had  to                                                                    
report anything to the RCA at present.                                                                                          
                                                                                                                                
Representative  Guttenberg  answered  that the  RCA  had  no                                                                    
authority  over  any  regulatory  role  for  broadband.  The                                                                    
Federal  Communications Commission  (FCC) claimed  exclusive                                                                    
regulatory authority.  He noted that some  jurisdictions had                                                                    
countered the decision was Congressional.  The RCA still had                                                                    
the ability  to do  the state's work  to figure  out mapping                                                                    
the  landscape. He  explained that  when another  fiber line                                                                    
was installed, or wireless was  fixed, there was no required                                                                    
regulatory or submittal to the RCA.                                                                                             
                                                                                                                                
Representative  Wilson thought  they  were  regulating in  a                                                                    
weird  way.   She  was   concerned  about   forcing  private                                                                    
companies to  provide the information.  She wondered  if the                                                                    
information would become public.                                                                                                
                                                                                                                                
Representative  Guttenberg answered  that as  in the  report                                                                    
developed by  the RCA the  previous year, the  companies all                                                                    
participated voluntarily  or specified they did  not want to                                                                    
submit information.  The report  detailed whether  a company                                                                    
had  elected  to  participate  or  not.  He  clarified  that                                                                    
companies  were not  required to  participate.  The RCA  did                                                                    
numerous  significant  things   for  the  companies  without                                                                    
specific authority.  The overall  interest of the  state was                                                                    
to understand where  internet access was or was  not and for                                                                    
other  entities  to be  competitive  or  not. There  was  an                                                                    
inherent interest  in the state  knowing what it  had. There                                                                    
was  nothing  in  the amendment  specifying  the  state  was                                                                    
regulating  the  industry.  He furthered  that  the  state's                                                                    
understanding of  the issue  was lessening.  The information                                                                    
published  by the  RCA  would be  public  like its  December                                                                    
report posted online.                                                                                                           
Representative  Wilson  spoke  against  the  amendment.  She                                                                    
thought  the  amendment  was a  policy  change  rather  than                                                                    
intent language,  which was concerning  to her  when private                                                                    
companies  were involved.  She  was  concerned about  asking                                                                    
private  companies to  provide  information  about who  they                                                                    
provided  service  to and  other.  She  understood that  the                                                                    
state may want  to know the information;  however, the state                                                                    
did not  require things  of other  private companies  it did                                                                    
not  regulate. She  thought the  issue was  not the  state's                                                                    
business.                                                                                                                       
                                                                                                                                
1:56:49 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki  thought  it was  information  that                                                                    
legislators would want. He asked  about the intent language.                                                                    
He  noted  that the  language  directed  the intent  that  a                                                                    
company do something  for the state. He wondered  if the RCA                                                                    
could  already request  the information  from companies.  He                                                                    
considered   whether   the   amendment   required   separate                                                                    
legislation   and  should   be  attached   as  a   statutory                                                                    
recommendation.                                                                                                                 
                                                                                                                                
Representative   Guttenberg   answered   that   the   second                                                                    
amendment [Amendment  H CED 2]  got further into  the issue.                                                                    
He explained  that the program was  voluntary. The amendment                                                                    
asked the  RCA to get  a picture of the  current [broadband]                                                                    
system. He  elaborated that a  substantial portion  of rural                                                                    
Fairbanks had  almost no internet.  He shared that he  had 4                                                                    
megabits  and two  of  his closest  neighbors  had none.  He                                                                    
expounded there  was no mapping  of the  services available.                                                                    
The  FCC  used  census  district   mapping  -  many  of  the                                                                    
districts  were  the  size of  a  legislative  district.  He                                                                    
explained that  if one person  in the census district  had a                                                                    
high [broadband  speed] number, the map  showed everyone had                                                                    
that high  number. He continued  that if a  fiberoptic cable                                                                    
between  Fairbanks   and  Anchorage  crossed   one  person's                                                                    
boundary (whether  they had access  to it or  not), everyone                                                                    
in the census district were  considered to have the service,                                                                    
but that was  not the case. Mapping was  a significant issue                                                                    
- the  previous day there had  been a copy of  a speech from                                                                    
an  FCC  commissioner  trying  to ask  people  to  do  crowd                                                                    
sourcing for  coverage. He  shared he  had tried  the method                                                                    
the previous year and equated  the method to asking a person                                                                    
to raise their hand if they were not present.                                                                                   
                                                                                                                                
1:59:28 PM                                                                                                                    
                                                                                                                                
Representative   Kawasaki   clarified   his   question.   He                                                                    
identified  the RCA  as a  quasi-judicial organization  that                                                                    
was semi-autonomous  from legislative  statute. He  asked if                                                                    
the  RCA  could  already  require  every  company  providing                                                                    
advanced telecom capability in Alaska to file a report.                                                                         
                                                                                                                                
Representative  Guttenberg  answered  in  the  negative.  He                                                                    
explained that the amendment would  not require companies to                                                                    
file a report either - the reporting would be voluntary.                                                                        
                                                                                                                                
Representative  Kawasaki pointed  to the  first line  of the                                                                    
amendment, which  specified it was the  legislature's intent                                                                    
for  companies  to file  a  report.  He noted  that  usually                                                                    
legislative intent pertained to  asking state agencies to do                                                                    
something, but not other companies.  He referred to a second                                                                    
part  as  a  statutory   recommendation.  He  asked  if  the                                                                    
amendment   was  a   statutory   recommendation  or   intent                                                                    
language.                                                                                                                       
                                                                                                                                
Representative Guttenberg  clarified that the  amendment was                                                                    
intent  language only.  He stated  it reflected  one of  the                                                                    
RCA's recommendations  to determine  if the state  needed to                                                                    
do  something and  what it  would be.  He explained  the map                                                                    
would  not  be  complete.   Part  of  the  state's  inherent                                                                    
interest was understanding what was and was not out there.                                                                      
                                                                                                                                
Vice-Chair Gara  supported the goal.  He did not  believe it                                                                    
was realistic  to get  a statute  passed during  the current                                                                    
session. He  spoke about the  importance of mapping  to know                                                                    
the needs across the state.                                                                                                     
                                                                                                                                
2:01:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton read the second sentence of the amendment:                                                                      
                                                                                                                                
     The  report   should  include   geographic  information                                                                    
     system  "shapefiles"  of  the  territory  in  which  it                                                                    
     offers service,  and the connection  speed and  type of                                                                    
     technology for each serviceable  street address or land                                                                    
     parcel to which it offers service.                                                                                         
                                                                                                                                
Co-Chair  Seaton  provided  an  example  using  a  satellite                                                                    
communications  company. He  asked if  the company  would be                                                                    
asked to file  a map of every serviceable  street address in                                                                    
a  community even  though the  [internet speed]  service one                                                                    
person  was getting  may be  very different  than a  service                                                                    
another  person may  buy. He  thought the  amendment request                                                                    
seemed  very  detailed  in one  way  (pertaining  to  street                                                                    
addresses) and very broad in the service provided.                                                                              
                                                                                                                                
Representative  Guttenberg answered  that he  could not  say                                                                    
what  a   company  would  do,  but   he  imagined  companies                                                                    
providing satellite service would  specify the entire region                                                                    
they covered  (e.g. the entire  state would be  the coverage                                                                    
region for  a company covering Alaska).  He underscored that                                                                    
the  intent language  was  not a  requirement.  Part of  the                                                                    
problem was  that out-of-state entities  would tell  the RCA                                                                    
it  had no  authority.  He discussed  the  possibility of  a                                                                    
company  running  a  satellite  program  in  Alaska  letting                                                                    
everyone know it  planned to offer 25  megabits statewide in                                                                    
several years' time.                                                                                                            
                                                                                                                                
2:04:38 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg continued  that  the  FCC had  an                                                                    
open docket  to do the work  as well. The amendment  did not                                                                    
ask companies to reinvent something they would be doing.                                                                        
                                                                                                                                
Co-Chair  Seaton shared  that  he would  prefer  to see  the                                                                    
amendment with a much more  specific definition later on. He                                                                    
was  confused about  what  was being  asked  and was  having                                                                    
trouble understanding the details.                                                                                              
                                                                                                                                
Representative  Guttenberg WITHDREW  Amendment H  CED 1  and                                                                    
expressed intent  to bring further  detail to  the committee                                                                    
at a later date.                                                                                                                
                                                                                                                                
2:06:06 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H CED 2                                                                                                                    
     Telecommunications                                                                                                         
     Modernization Standards                                                                                                    
     Wordage:                                                                                                                   
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Regulatory Commission  of Alaska recommend  adoption of                                                                    
     updated   telecommunication  modernization   regulatory                                                                    
     standards  in  AS42.05,  the  Alaska  Public  Utilities                                                                    
     Regulatory  Act,  and  deliver recommendations  on  how                                                                    
     best to  modernize outdated statutes  to the  House and                                                                    
     Senate Finance Committees and to the Legislative                                                                           
     Finance Division by February 19, 2019.                                                                                     
                                                                                                                                
     Explanation:                                                                                                               
     Alaska's  Public Utilities  Regulatory Act  is outdated                                                                    
     and needs  to be  updated in order  to address  how the                                                                    
     regulation  of  utilities providing  telecommunications                                                                    
     services  should  happen  in  the  modern  world.  This                                                                    
     amendment directs  the RCA  to provide  the legislature                                                                    
     with input on updating these statutes.                                                                                     
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Guttenberg   explained  the   amendment.  He                                                                    
shared that  the language  had been  recommended by  the RCA                                                                    
and  was supported  by the  industry. He  detailed that  the                                                                    
statutory language for  the RCA was antiquated.  The RCA had                                                                    
difficulty fitting  in its  regulatory processes  at present                                                                    
within  the  statutory  language.   The  amendment  did  not                                                                    
pertain to specific  items like broadband or  sewers, but to                                                                    
everything   done  by   the  agency.   He  elaborated   that                                                                    
everything  that   the  entity   was  doing  needed   to  be                                                                    
modernized. He  had tried looking  at other states,  but the                                                                    
information was all different.  Without the regulatory staff                                                                    
to rewrite statute, it was  not possible. He summarized that                                                                    
the language  needed to be rewritten  because everything was                                                                    
more than 20 years old.                                                                                                         
                                                                                                                                
2:08:16 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  wondered  who would  update  the  AS                                                                    
42.05 language. She thought RCA did  not have time to do the                                                                    
work due to its caseload.  She wondered if the amendment was                                                                    
the intent for someone outside the RCA to do the work.                                                                          
                                                                                                                                
Representative Guttenberg clarified that  he did not believe                                                                    
any office in  the [capitol] building had  the capability of                                                                    
doing  the  work  -  regulatory  expertise  was  needed.  He                                                                    
expected  the  RCA  would  do  the  work  to  modernize  the                                                                    
language because it would be able  to do the work within its                                                                    
purview. He expected the change  would be a modernization of                                                                    
the language  conforming to the RCA's  regulatory authority,                                                                    
which  would   then  be  brought  to   the  legislature.  He                                                                    
anticipated    someone   would    submit    a   bill    with                                                                    
recommendations  and it  would  go  through the  legislative                                                                    
process.  The  language  proposed  by the  RCA  would  be  a                                                                    
starting point  for the legislature to  pass legislation. He                                                                    
continued  that the  RCA could  propose language  with input                                                                    
from the industry  that would fit Alaska. He  noted that all                                                                    
states  were   very  different.   It  was  a   continuum  of                                                                    
understanding   telecommunications   and  modernization   of                                                                    
standards. Currently  all of the telephone  regulations were                                                                    
phone and internet,  but they should be  internet and phone.                                                                    
Changes were  being made from  an antiquated wire  system to                                                                    
high resolution, but  there was no reference for  the RCA in                                                                    
its statutes. Ultimately, the  legislature would decide what                                                                    
to implement.                                                                                                                   
                                                                                                                                
2:11:17 PM                                                                                                                    
                                                                                                                                
Representative Wilson  stated the statute  was approximately                                                                    
44  pages and  the work  would be  required by  February 19,                                                                    
2019. She  thought it  was the  legislature's responsibility                                                                    
to do the  work because it had implemented  the statute. She                                                                    
was  concerned  the  RCA  was   overloaded  with  work.  She                                                                    
understood  the RCA  wanted the  changes made  but requiring                                                                    
the RCA to do the work  would put more strain on the agency.                                                                    
She reasoned  that the  agency would have  done the  work on                                                                    
its own already if it had the time to do so.                                                                                    
                                                                                                                                
Representative   Guttenberg   replied  that   the   deadline                                                                    
included in the amendment had been provided by the RCA.                                                                         
                                                                                                                                
Representative  Wilson   wondered  why   legislative  intent                                                                    
language was necessary if the  RCA had specified it would do                                                                    
the work.                                                                                                                       
                                                                                                                                
Representative  Guttenberg answered  that without  direction                                                                    
from the legislature  there was no reason for the  RCA to do                                                                    
the work.  The agency  was waiting  for direction  [from the                                                                    
legislature] to modernize its standards.                                                                                        
                                                                                                                                
2:13:26 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki referenced  the amendment  language                                                                    
that it  was the intent  of the  legislature for the  RCA to                                                                    
recommend    adoption    [of    updated    telecommunication                                                                    
modernization    regulatory     standards].    He    thought                                                                    
Representative  Guttenberg had  said the  RCA could  already                                                                    
recommend  that  the  legislature  adopt  updated  standards                                                                    
through statute. He asked if that was the case.                                                                                 
                                                                                                                                
Representative Guttenberg  asked Representative  Kawasaki to                                                                    
repeat the question.                                                                                                            
                                                                                                                                
Representative   Kawasaki  complied.   He   was  trying   to                                                                    
determine who the legislature was telling what to do.                                                                           
                                                                                                                                
Representative Guttenberg  answered that  the RCA  could not                                                                    
change  anything  statutorily   by  itself.  The  regulatory                                                                    
framework  existed   inside  statute;   therefore,  statutes                                                                    
needed  to be  modernized. The  amendment asked  the RCA  to                                                                    
bring modernized  language for  the legislature  to consider                                                                    
and act  on via legislation or  other. He stated it  was not                                                                    
an  easy subject  - there  had been  disagreements over  the                                                                    
subject in  the past. He  continued that the RCA  wanted the                                                                    
statutes   modernized  because   the   private  sector   had                                                                    
challenges functioning  inside statutory framework  that was                                                                    
no longer  relevant. The RCA was  at the end of  the road in                                                                    
terms of the ability to make more regulatory changes.                                                                           
                                                                                                                                
Co-Chair  Seaton   asked  if  the  intent   was  similar  to                                                                    
recommendations  the  legislature received  periodically  to                                                                    
adopt  new electrical  standards  in statute  or a  building                                                                    
code update.                                                                                                                    
                                                                                                                                
Representative  Guttenberg   replied  it  was   similar.  He                                                                    
mentioned  that the  state had  adopted someone  else's fire                                                                    
code. The  amendment asked  the RCA  to bring  model statute                                                                    
legislation that  the legislature  could conform  as needed.                                                                    
The RCA  was maxed out  on regulatory changes.  He continued                                                                    
that  industry found  the regulatory  changes became  harder                                                                    
and harder to fit inside an antiquated framework.                                                                               
                                                                                                                                
2:16:50 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  was trying to understand  why the RCA                                                                    
was  not already  working  on  the issue  if  it wanted  the                                                                    
updates. Normally  agencies came to the  legislature if they                                                                    
had concerns or found someone to  sponsor a bill. He did not                                                                    
understand the need for the amendment.                                                                                          
                                                                                                                                
Representative Guttenberg  replied that if it  was something                                                                    
in the executive department they  would have the guidance of                                                                    
the  governor's  office.  He elaborated  that  the  RCA  was                                                                    
independent  of the  governor. The  legislature had  created                                                                    
the RCA.  The RCA did  not have the  ability to do  the work                                                                    
without guidance from the legislature.                                                                                          
                                                                                                                                
Representative  Pruitt asked  if  the  process was  standard                                                                    
with  other   commissions  or  corporations.  He   used  the                                                                    
Railroad  Corporation as  an example  and  noted the  entity                                                                    
requested the  legislature to pass needed  changes. He asked                                                                    
if it  was standard for  commissions to ask  the legislature                                                                    
to tell them to make changes.                                                                                                   
                                                                                                                                
2:19:25 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg answered  they were all different;                                                                    
their authority was all different.  The railroad had come to                                                                    
the legislature  in the current year  requesting a statutory                                                                    
change to have the ability  to sell land. He elaborated that                                                                    
the legislature's permission was  not required. He clarified                                                                    
that the amendment  did not address updating  one portion of                                                                    
statute but  addressed modernizing  the RCA's  standards. He                                                                    
believed  it  would be  unique  for  an  entity to  ask  the                                                                    
legislature  to rewrite  all of  its standards.  He believed                                                                    
the entity needed direction.                                                                                                    
                                                                                                                                
Co-Chair Foster observed that the  amendment did not seem to                                                                    
do any  harm and was moving  in the right direction.  He was                                                                    
comfortable supporting the amendment.                                                                                           
                                                                                                                                
Representative Wilson  MAINTAINED her OBJECTION.  She stated                                                                    
44 pages was a substantial review for one area.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Gara, Grenn,  Guttenberg, Ortiz, Foster,                                                                    
Seaton                                                                                                                          
OPPOSED: Wilson, Pruitt                                                                                                         
                                                                                                                                
Representatives  Tilton and  Kawasaki were  absent from  the                                                                    
vote.                                                                                                                           
                                                                                                                                
The MOTION  PASSED (7/2). There being  NO further OBJECTION,                                                                    
Amendment H CED 2 was ADOPTED.                                                                                                  
                                                                                                                                
^DEPARTMENT OF EDUCATION  AND EARLY DEVELOPMENT SUBCOMMITTEE                                                                  
AMENDMENTS                                                                                                                    
                                                                                                                                
2:21:59 PM                                                                                                                    
                                                                                                                                
Representative Ortiz provided a  subcommittee report for the                                                                    
Department  of Education  and Early  Development (DEED).  He                                                                    
read from a prepared statement (copy on file):                                                                                  
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Education  and Early  Development (DEED)                                                                    
     held  eight meetings  with  the  department during  the                                                                    
     review of the FY 19 budget request.                                                                                        
                                                                                                                                
     The   House  Finance   Budget  Subcommittee   for  DEED                                                                    
     recommends that the House  Finance Committee accept the                                                                    
     DEED  FY   19  budget  with  the   following  amendment                                                                    
     recommendations:                                                                                                           
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $44,351.5                                                                          
     Designated General Funds (DGF)          $26,077.1                                                                          
     Other Funds                             $46,462.0                                                                          
     Federal Funds                           $251,090.2                                                                         
     Total                                   $367,980.8                                                                         
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  15                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget  is  a reduction  of  $24,821.7,  a                                                                    
     decrease of 35.9 percent.                                                                                                  
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY18                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget   is  a  reduction  of   $229.1,  a                                                                    
     decrease of 0.5 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      267                                                                                               
     Permanent Part-time      13                                                                                                
     Temporary                4                                                                                                 
     Total                    284                                                                                               
                                                                                                                                
     Since   the   committee   will   be   taking   up   the                                                                    
     subcommittee's  budget   amendment  recommendations  in                                                                    
     just  a  few  minutes  I will  not  discuss  them  now;                                                                    
     however,  the  subcommittee   discussed  a  variety  of                                                                    
     issues  during the  meetings  including some  amendment                                                                    
     proposals that the subcommittee denied.                                                                                    
                                                                                                                                
        1. An amendment proposal was discussed that would                                                                     
          have eliminated funding for Live Homework Help.                                                                       
          Following a thoughtful discussion the maker of                                                                        
          the amendment withdrew the amendment.                                                                                 
                                                                                                                                
        2. An amendment proposal was discussed that would                                                                     
          have reduced early learning Pre-K grants by                                                                           
          $600.0 UGF. The subcommittee voted down this                                                                          
          proposal three YEAs to five NAYs.                                                                                     
                                                                                                                                
     The  subcommittee  made no  statutory  recommendations.                                                                    
     The  governor's amendments  for which  the subcommittee                                                                    
     recommended approval will be  taken up by the committee                                                                    
     in just  a few  minutes, so I'll  discuss them  at that                                                                    
     point.                                                                                                                     
                                                                                                                                
Representative    Ortiz   thanked    subcommittee   members,                                                                    
department staff, and Legislative Finance Division staff.                                                                       
                                                                                                                                
2:25:31 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT Amendment H DOE 1 (copy                                                                     
on file):                                                                                                                       
                                                                                                                                
     K-12 Aid to School Districts                                                                                               
     Foundation Program                                                                                                         
     H DOE 1                                                                                                                    
     Public School Fund revenue adjustment                                                                                      
                                                                                                                                
     This  is  a technical  fund  source  adjustment in  the                                                                    
     number section of the Foundation Program budget.                                                                           
                                                                                                                                
     The  amendment reduces  the  Public  School Trust  Fund                                                                    
     appropriation   to   match  Department   of   Revenue's                                                                    
     projected  revenue  available for  appropriation  under                                                                    
     existing state law (a total of $10 million).                                                                               
                                                                                                                                
     The Governor's proposed FY19  budget assumes passage of                                                                    
     legislation restructuring the  Public School Trust Fund                                                                    
     and  budgets for  an increase  in funds  that could  be                                                                    
     drawn from the fund. However,  until a bill passes, the                                                                    
     additional $18 million budgeted  by the Governor is not                                                                    
     available to spend. This amount  will instead come from                                                                    
     the general fund.                                                                                                          
                                                                                                                                
     This  amendment  adjusts   revenues  to  match  revenue                                                                    
     projections under existing law.                                                                                            
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Ortiz explained the amendment with a                                                                             
prepared statement:                                                                                                             
                                                                                                                                
     Amendment  H DOE  1  is a  Public  School Fund  revenue                                                                    
     adjustment. It  is a  decrement of  $18 million  in the                                                                    
     Public School Trust  Fund in the grant line.  This is a                                                                    
     technical  fund  source  adjustment to  the  foundation                                                                    
     program  budget.  This  amendment  reduces  the  Public                                                                    
     School   Trust   Fund   appropriation  to   match   the                                                                    
     Department  of  Revenue's projected  revenue  available                                                                    
     for appropriation under existing state law.                                                                                
                                                                                                                                
     The governor's  proposed FY  19 budget  assumes passage                                                                    
     of  legislation restructuring  the Public  School Trust                                                                    
     Fund and  budgets for an  increase in funds  that could                                                                    
     be drawn from  the fund. However, until  a bill passes,                                                                    
     the additional $18 million budgeted  by the governor is                                                                    
     not available to spend.                                                                                                    
                                                                                                                                
Representative   Ortiz   characterized  the   amendment   as                                                                    
technical.                                                                                                                      
                                                                                                                                
2:26:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton noted  that the amount would be  in a fiscal                                                                    
note accompanying the bill if it passed.                                                                                        
                                                                                                                                
Representative Wilson  was trying to follow  where the money                                                                    
was  going. She  asked  if the  proposed adjustment  assumed                                                                    
legislation would pass.                                                                                                         
                                                                                                                                
Co-Chair  Seaton clarified  that the  governor had  included                                                                    
the  money in  the budget  assuming legislation  would pass.                                                                    
The  amendment  removed  the  funds  until  the  legislation                                                                    
passed;  at that  time the  money would  be attached  to the                                                                    
legislation in  a fiscal  note. There had  been a  number of                                                                    
cases  where  the legislature  had  removed  money from  the                                                                    
budget  that had  been  incorporated  by the  administration                                                                    
requiring  passage  of  certain legislation.  For  budgetary                                                                    
reasons,    double   funding    could   occur    under   the                                                                    
circumstances.  The legislature  had stuck  with the  normal                                                                    
budgeting procedures  that when bills passed  they contained                                                                    
a fiscal note  instead of incorporating money  in the budget                                                                    
for statutes that had not yet passed.                                                                                           
                                                                                                                                
Representative Wilson  asked if there would  be an amendment                                                                    
to  reinsert the  $18  million if  the  legislation did  not                                                                    
pass.                                                                                                                           
                                                                                                                                
Co-Chair Seaton replied there could be an amendment to add                                                                      
funds but it would not necessarily be the amount indicated                                                                      
in the amendment.                                                                                                               
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION. There being                                                                       
NO further OBJECTION, Amendment H DOE 1 was ADOPTED.                                                                            
                                                                                                                                
2:28:55 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT Amendment GA 2 (copy on                                                                     
file):                                                                                                                          
                                                                                                                                
     Education Support and Admin Services                                                                                       
     Student and School Achievement                                                                                             
     GA 2 2/14 Additional Support for Data                                                                                      
     Collection, Analysis, and Reporting                                                                                        
                                                                                                                                
     Alaska's   Education   Challenge  and   Every   Student                                                                    
     Succeeds Act (ESSA) are two  efforts that together will                                                                    
     ensure an  excellent education for every  student every                                                                    
     day  by improving  outcomes  for  Alaska's schools  and                                                                    
     students. Under both  initiatives, additional data will                                                                    
     be  collected   to  better   inform  Alaskans   on  how                                                                    
     students,  schools,   districts,  and  the   state  are                                                                    
    progressing, as well as to meet ESSA requirements.                                                                          
                                                                                                                                
     The  one  new  Research Analyst  I/II/III  flex  (Range                                                                    
     13/16/18) position  will serve  as a liaison  to school                                                                    
     districts   by  providing   technical  assistance   and                                                                    
     support   for  the   additional  data   that  will   be                                                                    
     collected.  In  addition,  this position  will  provide                                                                    
     more  longitudinal  and   comparability  data  analysis                                                                    
     using  existing and  new datasets.  This position  will                                                                    
     work  across   divisions  within  the   department  and                                                                    
     increase the reporting capacity  of the data management                                                                    
     team.  Data  is  one  of the  most  powerful  tools  to                                                                    
     inform, engage,  and create opportunities  for students                                                                    
     along  their  education   journey.  Having  accessible,                                                                    
     accurate, and  consistent data  at our  fingertips will                                                                    
     help  students,  parents, educators,  and  policymakers                                                                    
     make more informed  decisions around Alaska's education                                                                    
     system and help drive improvement for student success.                                                                     
                                                                                                                                
     This is a  new request for FY2019. It  was not included                                                                    
     in  the  FY2019  Governor  request  because  the  final                                                                    
     Alaska's  Education   Challenge  report  was   not  yet                                                                    
     available for  review for  the department  to determine                                                                    
     additional  needs  for  the success  of  this  on-going                                                                    
     project.                                                                                                                   
                                                                                                                                
     This new position is budgeted  as a Research Analyst II                                                                    
     (R16), but will ideally be  a flex I/II/III position to                                                                    
     allow for a greater pool of qualified candidates.                                                                          
     FY2019 Governor: $157,814.1                                                                                                
     FY2019 Total Amendments: $97.8                                                                                             
     FY2019 Total: $157,911.9                                                                                                   
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Ortiz  explained   the  amendment   with  a                                                                    
prepared statement:                                                                                                             
                                                                                                                                
     This  amendment provides  additional  support for  data                                                                    
     collection, analysis, and  reporting. It's an increment                                                                    
     of  $97,800  UGF  for one  full-time  research  analyst                                                                    
     position. This  position will support  the department's                                                                    
     data  collection  analysis  needs associated  with  the                                                                    
     Alaska  Education Challenge  and implementation  of the                                                                    
     Every Student  Succeeds Act (ESSA). This  amendment was                                                                    
     unanimously adopted by the subcommittee.                                                                                   
                                                                                                                                
Representative Ortiz reported  the subcommittee believed the                                                                    
position was needed to support  the governor's initiative on                                                                    
improving education.                                                                                                            
                                                                                                                                
2:30:14 PM                                                                                                                    
                                                                                                                                
Representative   Wilson  asked   how  many   positions  were                                                                    
currently housed  in the allocation.  She stated  there were                                                                    
already similar reports.                                                                                                        
                                                                                                                                
Representative Ortiz  replied there  were four  filled full-                                                                    
time positions. The amendment would add one more.                                                                               
                                                                                                                                
Representative Wilson  asked what  in the  ESSA requirements                                                                    
had caused  the generation of  more paperwork and  more data                                                                    
to be collected in comparison to the current process.                                                                           
                                                                                                                                
Representative Ortiz deferred to the department.                                                                                
                                                                                                                                
SANA  EFIRD, DEPUTY  COMMISSIONER,  DEPARTMENT OF  EDUCATION                                                                    
AND  EARLY DEVELOPMENT,  answered that  the new  ESSA had  a                                                                    
number of new possible  data collections in the department's                                                                    
accountability  system.  The  department had  submitted  its                                                                    
ESSA plan  to the  federal Department  of Education  and was                                                                    
waiting  for approval.  She noted  DEED was  clarifying some                                                                    
things and  would resubmit the  plan at the end  of February                                                                    
for approval. There were a  number of indicators in the plan                                                                    
such as on  track for grade three reading,  looking at ninth                                                                    
graders  to  ensure they  were  on  track to  graduate,  and                                                                    
other.  There were  a number  of indicators  DEED wanted  to                                                                    
have  in order  to make  the decisions.  She referenced  the                                                                    
Alaska  Education  Challenge  initiative  -  there  were  13                                                                    
recommendations  and DEED  was  currently  working with  the                                                                    
national  organization the  Council  of  Chief State  School                                                                    
Officers to determine how to  align DEED's current work with                                                                    
the  recommendations. Much  of  the  information would  mean                                                                    
acquiring  additional   data  -  longitudinal   studies  and                                                                    
comparative data  across districts  - to report  and analyze                                                                    
to help make better decisions to help students' outcomes.                                                                       
                                                                                                                                
2:33:18 PM                                                                                                                    
                                                                                                                                
Representative Wilson  surmised that most of  the data would                                                                    
be  reported by  school districts.  She knew  the state  had                                                                    
done  longitudinal studies  for  a long  time.  She did  not                                                                    
believe DEED was certain what  additional information it may                                                                    
need to  work on  because it was  still working  through the                                                                    
process.  She  did  not  understand  the  need  for  another                                                                    
position until  DEED completed the  process to know  what it                                                                    
would be mandated to do.                                                                                                        
                                                                                                                                
Ms. Efird  replied that some  of the work was  not mandated.                                                                    
She  elaborated  that  ESSA   had  mandated  data  DEED  was                                                                    
required to  report on. The  department currently had  to do                                                                    
much of  its federal reporting  - staff was  responsible for                                                                    
mandated  state  and  federal  reporting.  The  department's                                                                    
commissioner felt  that having  data was the  way to  make a                                                                    
difference for  students; it would provide  families and the                                                                    
public  with  more  information  about  where  schools  were                                                                    
succeeding  for  students  and where  there  were  areas  of                                                                    
deficiency. The position would not  be tied to current state                                                                    
or  federal reporting  and would  give  flexibility to  work                                                                    
with  districts, especially  small  districts  that may  not                                                                    
have the  ability to  provide the data  at present,  to help                                                                    
districts  define   data  and  for  the   department  to  be                                                                    
consistent  across  districts.  For  example,  the  position                                                                    
would help  determine whether everyone was  defining chronic                                                                    
absenteeism  in  the  same  way   to  ensure  the  data  was                                                                    
meaningful when collected by the department.                                                                                    
                                                                                                                                
Representative Wilson  believed data was important,  but she                                                                    
believed  most states  had the  districts collect  the data.                                                                    
She stated it was currently  the process in Alaska; the data                                                                    
was  then forwarded  to DEED.  She did  not believe  another                                                                    
position was  needed. She  believed districts  should decide                                                                    
how to collect and utilize the data.                                                                                            
                                                                                                                                
Representative Ortiz summarized that  the amendment had come                                                                    
from the  governor. Part  of the position  would be  to help                                                                    
augment  the Alaska's  Education Challenge.  He shared  that                                                                    
several members of the subcommittee  that had helped compile                                                                    
the  recommendations were  Minority members  and one  sat on                                                                    
the House  Finance Committee. He explained  that the finance                                                                    
committee member recognized that  the position was needed to                                                                    
fulfill the goal  of the educational challenge  put forth by                                                                    
the House Finance  Committee. He stressed that  if the state                                                                    
wanted to  talk about  accountability and how  its districts                                                                    
were doing, the data was needed.                                                                                                
                                                                                                                                
2:37:09 PM                                                                                                                    
                                                                                                                                
Representative Wilson stated that  the data was collected by                                                                    
the school  districts. She elaborated that  districts had to                                                                    
have  the  data to  be  able  to  provide  it to  DEED.  She                                                                    
believed the question was who  should be taking the data and                                                                    
utilizing it  - the school  district or the  department. She                                                                    
reasoned  that  because  districts had  local  control,  the                                                                    
responsibility  to  utilize  the  data  was  at  the  school                                                                    
district level. She stated that  currently the state did not                                                                    
mandate  anything for  education  like  graduation rates  or                                                                    
requiring students  to read by  the third grade.  She stated                                                                    
that  the  department  was basically  an  assistant  to  the                                                                    
school districts. She  believed the data was  great, but she                                                                    
believed the utilization belonged in the districts.                                                                             
                                                                                                                                
Co-Chair Seaton supported the amendment.  He added that data                                                                    
could be  a report  sitting on  a shelf, but  if it  was not                                                                    
analyzed it was not meaningful.                                                                                                 
                                                                                                                                
Vice-Chair Gara understood  why the work would be  done at a                                                                    
district level. Unlike most states,  the State of Alaska had                                                                    
a larger role  in education as opposed to  cities and towns.                                                                    
He wondered  if the amendment  applied to the  collection of                                                                    
existing data by DEED or additional performance data.                                                                           
                                                                                                                                
Ms. Efird answered  that the hope was  to collect additional                                                                    
statewide data  from districts.  The data  would be  used to                                                                    
highlight districts  that were  making the  most improvement                                                                    
for their students  and share the data  with less successful                                                                    
districts to help students' outcomes.                                                                                           
                                                                                                                                
Representative  Guttenberg   supported  the   amendment.  He                                                                    
shared that he  had visited three or  four classrooms during                                                                    
the past  fall. He had been  amazed with the ability  of the                                                                    
teachers  to focus  on what  a student  was excelling  at or                                                                    
where they were lagging behind  and matching up the workload                                                                    
to bring  the student  up to  the level of  the rest  of the                                                                    
class.  He expounded  that teachers  had been  proficient on                                                                    
the  computers  and programs.  He  believed  the ability  to                                                                    
aggregate  the  data  to  pinpoint   what  was  working  was                                                                    
necessary. He  reasoned that  someone had  to take  the data                                                                    
and turn it into something.                                                                                                     
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Guttenberg, Kawasaki,  Ortiz, Gara, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Wilson, Pruitt, Thompson                                                                                               
                                                                                                                                
Representative Tilton was absent from the vote.                                                                                 
                                                                                                                                
The MOTION  PASSED (7/3). There being  NO further OBJECTION,                                                                    
Amendment H GA 2 was ADOPTED.                                                                                                   
                                                                                                                                
2:42:56 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT  Amendment GA 3 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Mt. Edgecumbe Boarding School                                                                                              
     Mount Edgecumbe Boarding School Facilities Maintenance                                                                     
     GA 3 2/14                                                                                                                  
     General Fund Program                                                                                                       
     Receipt  Authorization for  the  Mt. Edgecumbe  Aquatic                                                                    
     Center                                                                                                                     
                                                                                                                                
     In order  for the  state to  accept entrance  fees, and                                                                    
     other event fees, at the  new Mt. Edgecumbe High School                                                                    
     (MEHS)  Aquatic Center,  general  fund program  receipt                                                                    
     (GF/PR)  authorization  must  be   added  to  the  MEHS                                                                    
     Facility  Maintenance  budget structure.  Current  cost                                                                    
     estimates  for the  operations and  maintenance of  the                                                                    
     pool are  $583.1 annually. GF/PR will  offset the total                                                                    
     amount of unrestricted general  funds necessary for the                                                                    
     operations  and maintenance  of  the  pool. The  $250.0                                                                    
     requested in  GF/PR is approximately 43  percent of the                                                                    
     total  operations and  maintenance  costs,  and is  the                                                                    
     department's best  estimate at  this time of  the total                                                                    
     amount  that  may  potentially  be  collected  in  fee-                                                                    
     supported  revenue.  The  department will  be  able  to                                                                    
     provide an updated estimate after  the pool is open for                                                                    
     business  and  being   used  by  various  stakeholders,                                                                    
     including  the   community  of  Sitka.   Without  GF/PR                                                                    
     authorization,  the   department  will  be   unable  to                                                                    
     collect fees received by the  users of the MEHS Aquatic                                                                    
     Center to help offset operating expenses.                                                                                  
                                                                                                                                
     FY2019 Governor: $1,192.7                                                                                                  
     FY2019 Total Amendments: $250.0                                                                                            
     FY2019 Total: $1,442.7                                                                                                     
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Ortiz explained the amendment with a                                                                             
prepared statement:                                                                                                             
                                                                                                                                
     Amendment  GA  3  adds  general  fund  program  receipt                                                                    
     authorizations for the  Mount Edgecumbe Aquatic Center.                                                                    
     It's  an   increment  of   $250,000,  which   would  be                                                                    
     potentially the  amount of program receipts  that could                                                                    
     be collected.  In order  for the  state to  accept user                                                                    
     fees for  pool rental and  public use at the  new Mount                                                                    
     Edgecumbe  High  School  Aquatic Center,  general  fund                                                                    
     program  receipt authorization  must  be  added to  the                                                                    
     budget.  The  $250,000   request  is  approximately  43                                                                    
     percent of  the total  operations and  maintenance cost                                                                    
     and is the department's best  estimate as to the amount                                                                    
     that may be potentially collected.                                                                                         
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION. There being                                                                       
NO further OBJECTION, Amendment GA 3 was ADOPTED.                                                                               
                                                                                                                                
2:43:56 PM                                                                                                                    
                                                                                                                                
Representative Ortiz MOVED to ADOPT Amendment H DOE 2 (copy                                                                     
on file):                                                                                                                       
                                                                                                                                
     Alaska State Libraries, Archives and Museums                                                                               
     Museum Operations                                                                                                          
     H  DOE  2  Restore   Funding  for  Museum  Grant-in-Aid                                                                    
     Program                                                                                                                    
                                                                                                                                
     This amendment  restores funding for the  Museum Grant-                                                                    
     in-Aid  competitive  grant  program. These  are  grants                                                                    
     ranging from  $2,000 to $10,000  that are vital  to the                                                                    
     ability of  small museums to  build and  maintain their                                                                    
     collections.                                                                                                               
                                                                                                                                
     The  goal of  the  program is  to  sustain and  support                                                                    
     museums across the state  that preserve Alaska history,                                                                    
     promote economic  activity in  the tourism  sector, and                                                                    
     supply information to Alaskans.                                                                                            
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative   Ortiz  explained   the  amendment   with  a                                                                    
prepared statement:                                                                                                             
                                                                                                                                
     This amendment  restores funding for the  Museum Grant-                                                                    
     in-Aid program.  It's an  increment of  $105,000. These                                                                    
     small  grants sustain  and support  museums across  the                                                                    
     state  that  preserve   Alaska  history  from  economic                                                                    
     activity in  the tourism sector and  supply information                                                                    
     to  Alaskans. Grant  awards are  made  for the  primary                                                                    
     collection  care  and  exhibits from  grants  typically                                                                    
     ranging  from  $2,000  to $10,000  with  a  maximum  of                                                                    
     $10,000. These grants are vital  to small local museums                                                                    
     to build and maintain their collections.                                                                                   
                                                                                                                                
Representative Ortiz  added that when the  governor's budget                                                                    
had come out with the  decrement, the subcommittee had heard                                                                    
from a variety of museums  statewide about the importance of                                                                    
the  funds  for  their  ability  to  maintain  exhibits  and                                                                    
collections  that had  significant historical  value to  the                                                                    
state.                                                                                                                          
                                                                                                                                
2:45:35 PM                                                                                                                    
                                                                                                                                
Representative Wilson appreciated the  amendment but did not                                                                    
agree  the timing  was right  given the  deficit facing  the                                                                    
state and the consideration of  a payroll or income tax. The                                                                    
program had been  implemented when the state  had money. She                                                                    
did not believe it was the time to add money to the budget.                                                                     
                                                                                                                                
Representative Pruitt echoed  the statements. He appreciated                                                                    
museums. However,  he referenced the idea  of making changes                                                                    
to   the  Permanent   Fund   Dividend   (PFD)  structure   -                                                                    
potentially around $1,200 less  than the statute. He applied                                                                    
the concept  to anytime the legislature  increased funds. He                                                                    
calculated that  the proposed  amendment increment  added up                                                                    
to  88 PFDs.  He  wanted to  use the  money  for things  the                                                                    
public expected the  funds to be used for.  He reasoned that                                                                    
88  people could  donate money  through the  Pick.Click.Give                                                                    
program  to museums.  The expectation  for museum  operators                                                                    
was to seek out donors  to keep museums viable. He continued                                                                    
that some  of the  best museums  in the  world were  able to                                                                    
operate due to donations from  the public. He supported that                                                                    
existing model  and thought people interested  in preserving                                                                    
history  could participate  via  donations.  He thought  the                                                                    
amendment was a tough ask.  He thought it was an appropriate                                                                    
conversation to  have when considering  any increase  to the                                                                    
budget.  He  was  uncertain  the   public  would  agree  the                                                                    
amendment was an appropriate use of funds.                                                                                      
                                                                                                                                
2:49:04 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara referenced  the need for a  fiscal plan, but                                                                    
reasoned  society could  not stand  still  while the  public                                                                    
waited. He supported the amendment.                                                                                             
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Gara,  Grenn, Guttenberg, Kawasaki, Foster,                                                                    
Seaton                                                                                                                          
OPPOSED: Pruitt, Thompson, Wilson                                                                                               
                                                                                                                                
Representative Tilton was absent from the vote.                                                                                 
                                                                                                                                
The MOTION  PASSED (7/3). There being  NO further OBJECTION,                                                                    
Amendment H DOE 2 was ADOPTED.                                                                                                  
                                                                                                                                
Representative Guttenberg returned  to his earlier testimony                                                                    
on  DCCED. He  thanked  several people  from  DCCED and  the                                                                    
Legislative  Finance   Division  for   their  work   on  the                                                                    
subcommittee.                                                                                                                   
                                                                                                                                
2:50:39 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:54:54 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT OF FISH AND GAME SUBCOMMITTEE AMENDMENTS                                                                          
                                                                                                                                
2:55:00 PM                                                                                                                    
                                                                                                                                
Representative Ortiz provided a subcommittee report for the                                                                     
Department of Fish and Game (DFG). He read from a prepared                                                                      
statement (copy on file):                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Fish and Game  held six meetings with the                                                                    
     department  during  the  review  of the  FY  19  budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Fish and Game recommends  that the House                                                                    
     Finance  Committee accept  the Department  of Fish  and                                                                    
     Game's  FY  19  budget  with  the  following  amendment                                                                    
     recommendations:                                                                                                           
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $51,506.1                                                                          
     Designated General Funds (DGF)          13,562.5                                                                           
     Other Funds                             65,919.3                                                                           
     Federal Funds                           66,922.0                                                                           
    Total                                   $197,909.9                                                                          
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget  is  a reduction  of  $27,881.7,  a                                                                    
     decrease of 35.1 percent.                                                                                                  
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  18                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget  is  an   increase  of  $989.7,  an                                                                    
     increase of 2 percent.                                                                                                     
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      827                                                                                               
     Permanent Part-time      622                                                                                               
     Temporary                7                                                                                                 
     Total                    1,456                                                                                             
                                                                                                                                
     There    is   one    subcommittee   budget    amendment                                                                    
     recommendation and  since the committee will  be taking                                                                    
     up  the subcommittee  budget amendment  recommendations                                                                    
     in just  a few  minutes I will  not describe  them now.                                                                    
     The  subcommittee  made no  statutory  recommendations.                                                                    
     The  governor did  not submit  any amendments  for this                                                                    
     agency. Securing  and managing  Pittman-Robertson Funds                                                                    
     was discussed as an area worth further exploration.                                                                        
                                                                                                                                
Representative Ortiz  thanked the DFG  subcommittee members,                                                                    
Legislative Finance,  and department staff. He  relayed that                                                                    
representatives   from   the   industry   including   United                                                                    
Fisherman   of  Alaska   (UFA)  and   the  Pacific   Seafood                                                                    
Processors Association (PSPA) participated as well.                                                                             
                                                                                                                                
2:57:49 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  referenced  subcommittee  discussion                                                                    
about  [federal] Pittman-Robertson  funds.  He believed  the                                                                    
state had  to return  some funds because  the money  had not                                                                    
been used as intended -  the funds had potentially been used                                                                    
in  the commissioner's  office as  opposed to  management as                                                                    
intended.  He recalled  the passage  of a  bill a  couple of                                                                    
years earlier that increased user  fees with the full intent                                                                    
to match  the funds  for habitat stabilization.  He believed                                                                    
it was an important question that needed to be answered.                                                                        
                                                                                                                                
Representative  Guttenberg  noted   an  amendment  would  be                                                                    
included  in  the  Department  of  Natural  Resources  (DNR)                                                                    
budget to maximize the  ability to utilize Pittman-Robertson                                                                    
funds to a greater extent than had been done.                                                                                   
                                                                                                                                
Representative  Ortiz deferred  to  the Legislative  Finance                                                                    
Division and DFG.                                                                                                               
                                                                                                                                
AMANDA   RYDER,  ANALYST,   LEGISLATIVE  FINANCE   DIVISION,                                                                    
replied  there was  a capital  project with  $4 million  DFG                                                                    
funds in  the governor's request.  She and DFG  were looking                                                                    
at the request because  she was concerned about overspending                                                                    
DFG funds and  not having sustainable DFG  fund revenue. She                                                                    
had a  number of  questions about the  DFG fund  and whether                                                                    
spending  the $4  million  would mean  the  need to  request                                                                    
general funds to  replace DFG funds in  the operating budget                                                                    
in the future. She  understood there was significant concern                                                                    
about  turning away  Pittman-Robertson  funds.  She did  not                                                                    
have the  answers at present,  but she was working  with DFG                                                                    
to  get  the  answers  to  the  committee.  The  Legislative                                                                    
Finance  Division  was  concerned  about  ensuring  Pittman-                                                                    
Robertson  funds were  not turned  back  if the  legislature                                                                    
wanted to fund  the projects and ensuring the  state did not                                                                    
overspend a finite fund source.                                                                                                 
                                                                                                                                
3:01:23 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  replied  he looked  forward  to  the                                                                    
continued  conversation. He  referenced fees  that had  been                                                                    
increased  a  couple  of  years earlier  and  asked  if  the                                                                    
legislature or DFG  utilized the fees in areas  that did not                                                                    
enable the state to receive [federal] reimbursement.                                                                            
                                                                                                                                
CAROL  PETRABORG,  DIRECTOR,  DEPARTMENT  OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  FISH AND  GAME, answered  that DFG                                                                    
funds on the wildlife side  were used for hunter and trapper                                                                    
purposes   when   matching  Pittman-Robertson   funds.   She                                                                    
elaborated  that  if projects  did  not  support hunter  and                                                                    
trapper  license purchasers,  the department  could not  use                                                                    
DFG  funds  for  matching  funds. Projects  with  a  broader                                                                    
wildlife  related scope  would be  funded by  general funds,                                                                    
third-party match, or in-kind match.                                                                                            
                                                                                                                                
Representative Pruitt  asked if any of  the additional funds                                                                    
generated by the [fee] increase  had gone towards operations                                                                    
or items that did not qualify for [federal] reimbursement.                                                                      
                                                                                                                                
Ms. Petraborg responded that SB  250 had been passed several                                                                    
years  back requiring  funds for  wildlife related  licenses                                                                    
sold, had to  be in the DFG wildlife fund.  The only way the                                                                    
funds  could  be  used  outside  the  Division  of  Wildlife                                                                    
Conservation   was  with   an  RSA   [reimbursable  services                                                                    
agreement],  which had  to be  detailed in  the department's                                                                    
budget request.                                                                                                                 
                                                                                                                                
3:04:24 PM                                                                                                                    
                                                                                                                                
Representative Ortiz  MOVED to ADOPT  Amendments H DFG  1, H                                                                    
DFG 2,  H DFG  3, and  H DFG 4  (copy on  file) [due  to the                                                                    
length of the  amendments they have not  been included here.                                                                    
See copy  on file for  detail]. He noted the  amendments had                                                                    
been moved out of the subcommittee as a single amendment.                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Ortiz  explained  that  the  basis  for  the                                                                    
amendments was  the fact that  the department's  UGF funding                                                                    
had been  reduced by  more than 35  percent. He  pointed out                                                                    
that while reductions had been  necessary due to the state's                                                                    
fiscal  situation,  at  a   certain  point  reductions  were                                                                    
counterproductive. Cuts had  resulted the discontinuation of                                                                    
projects that had been worked on  by DFG in the past because                                                                    
the  funding  level no  longer  supported  the projects.  He                                                                    
elaborated that  data information  collection was  not being                                                                    
done at previous  levels; therefore, DFG had  been forced to                                                                    
become more  conservative in its  fish catch  allotments and                                                                    
opportunity for  commercial fishermen had gone  away in many                                                                    
instances. Lost  opportunities and reduced  catch allotments                                                                    
meant fishermen  could no longer provide  for their families                                                                    
and crew.  Additionally, the money was  not being circulated                                                                    
in the  economy, which meant  less landing  taxes collected.                                                                    
He submitted the  case was clear the point  had been reached                                                                    
where  reductions  were  counterproductive  to  the  state's                                                                    
economy.                                                                                                                        
                                                                                                                                
Representative  Ortiz   reminded  the  committee   that  the                                                                    
seafood  industry  was  the   largest  private  employer  in                                                                    
Alaska. He continued to explain with a prepared statement:                                                                      
                                                                                                                                
     It amounts  to $146  million in total  annual municipal                                                                    
     and  federal taxes  fees and  self-assessments paid  by                                                                    
     commercial fishermen and  seafood processors to operate                                                                    
     in Alaska.  It amounts  to a total  of $5.2  billion in                                                                    
     total annual  economic activity created by  the seafood                                                                    
     industry and it  amounts to $2 billion  of annual labor                                                                    
     income generated by the seafood  industry in Alaska and                                                                    
     56,800  people  are  employed directly  in  the  Alaska                                                                    
     seafood industry.                                                                                                          
                                                                                                                                
Representative  Ortiz elaborated  that  the amendments  were                                                                    
about  recreating lost  opportunity in  particular areas  of                                                                    
commercial  fishing that  would  allow  fishermen to  better                                                                    
provide for their family's needs.                                                                                               
                                                                                                                                
3:08:12 PM                                                                                                                    
                                                                                                                                
Representative Wilson recalled a  bill several years earlier                                                                    
related to the adjustment  of fees for commercial fishermen.                                                                    
She asked when the fees had last been updated.                                                                                  
                                                                                                                                
Representative Ortiz asked for clarification.                                                                                   
                                                                                                                                
Representative  Wilson clarified  that Representative  Ortiz                                                                    
had  spoken  about  the missed  opportunity  for  commercial                                                                    
fishermen. She  reasoned that updated fees  would bring more                                                                    
money in and would enable  the department to conduct many of                                                                    
the studies and help provide opportunities to fishermen.                                                                        
                                                                                                                                
Representative Ortiz deferred to the department.                                                                                
                                                                                                                                
Ms.   Petraborg    believed   Representative    Wilson   was                                                                    
referencing  commercial  entry   fisheries  commission  fees                                                                    
utilized  at  DFG.  She  explained   that  fish  taxes  were                                                                    
deposited  into the  General Fund;  the  department did  not                                                                    
collect  fees  outside  of commercial  crew  member  license                                                                    
fees.                                                                                                                           
                                                                                                                                
Representative  Wilson asked  if  DFG had  the authority  to                                                                    
look at  the studies  or whatever was  required in  order to                                                                    
have [fishery] openings longer. She  asked if DFG could take                                                                    
fees  it spent  and determine  what  the fees  would be  for                                                                    
participants in order to be revenue/expenditure neutral.                                                                        
                                                                                                                                
Ms. Petraborg replied in the negative.                                                                                          
                                                                                                                                
Representative Wilson  surmised a statutory change  would be                                                                    
necessary in order to give DFG the authority.                                                                                   
                                                                                                                                
Ms. Petraborg replied in the affirmative.                                                                                       
                                                                                                                                
3:10:49 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  asked how much the  state received in                                                                    
fees  and taxes  from the  industry and  how much  the state                                                                    
spent. He asked what the  subsidization rate was and how the                                                                    
additional  $1 million-plus  in the  amendment would  impact                                                                    
the rate. He wondered if Ms. Petraborg had the information.                                                                     
                                                                                                                                
Ms.  Petraborg answered  in the  negative. She  believed the                                                                    
last time the  calculation had been done was in  2009 by the                                                                    
Department of Commerce,  Community and Economic Development.                                                                    
She noted the number was very difficult to measure.                                                                             
                                                                                                                                
Co-Chair   Seaton   clarified   that   the   committee   was                                                                    
considering  the  amendment,  not   base  economics  of  the                                                                    
fishing industry.                                                                                                               
                                                                                                                                
Representative  Pruitt believed  a  conversation about  what                                                                    
the state received was relevant  to whether the state should                                                                    
expand  the amount  it was  paying/investing. He  considered                                                                    
that  perhaps  the  amendment  funds  were  needed,  but  he                                                                    
wondered  whether the  conversation  should go  hand-in-hand                                                                    
with  discussion   about  additional  assistance   from  the                                                                    
industry.                                                                                                                       
                                                                                                                                
Representative Wilson  asked for  verification that  most of                                                                    
the  studies would  give  more  opportunities to  commercial                                                                    
fishermen.                                                                                                                      
                                                                                                                                
SCOTT  KELLY, DIRECTOR,  DIVISION  OF COMMERCIAL  FISHERIES,                                                                    
DEPARTMENT  OF FISH  AND GAME,  replied in  the affirmative.                                                                    
The  intent of  the  increments and  the  requests from  the                                                                    
committee  was to  provide a  list  of projects  to do  that                                                                    
[give more opportunities to commercial fishermen].                                                                              
                                                                                                                                
Representative  Wilson   surmised  DFG  had  not   done  any                                                                    
analysis on industry fees and  what may need to be increased                                                                    
prior   to  putting   in  the   funding   request  [in   the                                                                    
amendments].  She did  not understand  when someone  came in                                                                    
and did  not have  information on how  much money  was going                                                                    
out  or  coming  in  or  how  much  an  industry  was  being                                                                    
subsidized by the state.                                                                                                        
                                                                                                                                
3:13:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  stated that  either 3 or  5 percent  of the                                                                    
gross  value of  the fish  was collected  by the  state. The                                                                    
state had  elected to  distribute 50  percent of  the amount                                                                    
where fish landed or were  processed. There was an increment                                                                    
that  came in  the value  of  foregone harvest  lost by  the                                                                    
state (3  to 5 percent).  The calculation of what  the catch                                                                    
would  be   by  having  over  conservative   management  was                                                                    
difficult to project.                                                                                                           
                                                                                                                                
Representative   Wilson  understood   the   point,  but   as                                                                    
appropriators deciding whether funds  should come out of UGF                                                                    
(meaning everyone in the state  would contribute if any kind                                                                    
of taxes  were put in)  or from  industry, she did  not know                                                                    
how to  make the  decision without  proper numbers.  She was                                                                    
fine  with how  the money  was given  out, but  she recalled                                                                    
when legislation had been considered  a couple of years back                                                                    
that numerous fees had not been adjusted in some time.                                                                          
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn,  Guttenberg,   Kawasaki,  Ortiz,  Thompson,                                                                    
Gara, Foster, Seaton                                                                                                            
OPPOSED: Pruitt, Wilson                                                                                                         
                                                                                                                                
Representative Tilton was absent from the vote.                                                                                 
                                                                                                                                
The MOTION PASSED (8/2). There being NO further OBJECTION,                                                                      
Amendments H DFG 1, H DFG 2, H DFG 3, and H DFG 4 were                                                                          
ADOPTED.                                                                                                                        
                                                                                                                                
^OFFICE OF THE GOVERNOR SUBCOMMITTEE                                                                                          
                                                                                                                                
3:16:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton provided a subcommittee report for the                                                                          
Office of the Governor. He read from a prepared statement                                                                       
(copy on file):                                                                                                                 
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of the                                                                                                                     
     Governor held  two meetings with the  agency during the                                                                    
     review of the FY 19 budget request.                                                                                        
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of the                                                                                                                     
     Governor  recommends that  the House  Finance Committee                                                                    
     accept  the  agency's  FY  19  budget  without  further                                                                    
     amendment.                                                                                                                 
                                                                                                                                
     The  numbers-only  budget   without  further  amendment                                                                    
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $23,135.8                                                                          
     Designated General Funds (DGF)          -0-                                                                                
     Other Funds                             838.3                                                                              
     Federal Funds                           230.0                                                                              
     Total                                   $24,204.1                                                                          
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  15                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget  is  a  reduction  of  $8,884.5,  a                                                                    
     decrease of 27.7 percent.                                                                                                  
                                                                                                                                
     There is  no Unrestricted General Fund  difference from                                                                    
     FY 18 Management  Plan to the FY  19 House Subcommittee                                                                    
     Recommended budget.                                                                                                        
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      137                                                                                               
     Permanent Part-time      -0-                                                                                               
     Temporary                20                                                                                                
     Total                    157                                                                                               
                                                                                                                                
     The Governor did not submit any amendments.                                                                                
                                                                                                                                
     No   budget   amendments   are   recommended   by   the                                                                    
     subcommittee  for consideration  by  the House  Finance                                                                    
     Committee.   The   subcommittee   made   no   statutory                                                                    
     recommendations.                                                                                                           
                                                                                                                                
     A  subcommittee  member  asked  whether  the  costs  of                                                                    
     special  sessions  called  by the  Governor  should  be                                                                    
     budgeted   in  the   Office   of   the  Governor.   The                                                                    
     subcommittee  received a  response from  the Office  of                                                                    
     the   Governor   on    February   12th   stating   that                                                                    
     historically  all costs  of  legislative sessions  have                                                                    
     been   budgeted  in   the  Legislature's   budget.  The                                                                    
     legislature, however,  with its power  of appropriation                                                                    
     could  add an  appropriation  for that  purpose to  the                                                                    
     Office  of  the Governor's  budget.  No  member of  the                                                                    
     subcommittee submitted any budget amendments.                                                                              
                                                                                                                                
^JUDICIARY SUBCOMMITTEE AMENDMENTS                                                                                            
                                                                                                                                
3:18:32 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Gara  provided   a   subcommittee  report   for                                                                    
Judiciary.  He  thanked   the  department,  the  Legislative                                                                    
Finance Division,  and subcommittee  members for  their work                                                                    
on the  budget. He read  from a prepared statement  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Judiciary held 4 meetings with  the Alaska Court System                                                                    
     in attendance,  during the review  of the FY  19 budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Judiciary recommends  that the House  Finance Committee                                                                    
     accept the Judiciary's FY 19  budget with the following                                                                    
     numbers-only amendment recommendations:                                                                                    
                                                                                                                                
     Fund Source: {dollars are in thousands)                                                                                    
    Unrestricted General Funds (UGF)        $105,444.9                                                                          
     Designated General Funds (DGF)          $518.0                                                                             
     Other Funds                             $2,206.1                                                                           
     Federal Funds                           $975.6                                                                             
    Total                                   $109,144.6                                                                          
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  15                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget  is  a  reduction  of  $6,421.4,  a                                                                    
     decrease of 5.7 percent.  The Unrestricted General Fund                                                                    
     difference  from FY  18 Management  Plan to  the FY  19                                                                    
     House  Subcommittee Recommended  budget is  an increase                                                                    
     of $606.3, an increase of 0.6 percent.                                                                                     
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      740                                                                                               
     Permanent Part-time      37                                                                                                
     Temporary                5                                                                                                 
     Total                    782                                                                                               
                                                                                                                                
Vice-Chair Gara  expounded that  the department  had deleted                                                                    
45 funded  positions since 2015.  The committee had  made no                                                                    
statutory recommendations.  He added that the  Judiciary had                                                                    
followed through  on the committee's recommendation  to look                                                                    
at  court fees  and had  amended the  fees to  generate over                                                                    
$500,000 in  the coming  year. The  governor did  not submit                                                                    
any amendments  for this  agency. He  thanked his  staff for                                                                    
her work.                                                                                                                       
                                                                                                                                
3:21:31 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H JUD 1  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Alaska Court System                                                                                                        
     Appellate Courts                                                                                                           
     H JUD 1                                                                                                                    
     Delete Conditional Wordage                                                                                                 
     Offered by Representative Gara                                                                                             
     Delete  conditional  wordage that  appears  immediately                                                                    
     after  the Alaska  Court System  appropriation name  in                                                                    
     sec. 1 of both HB 286 and HB 285:                                                                                          
     "Budget requests  from agencies of the  Judicial Branch                                                                    
     are transmitted as requested."                                                                                             
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair  Gara  explained   the  amendment.  The  original                                                                    
budget specified that the legislature  adopted the budget as                                                                    
is,  which   was  not   exactly  accurate;   therefore,  the                                                                    
amendment would remove the language from the budget.                                                                            
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendment H JUD 1 was ADOPTED.                                                                            
                                                                                                                                
3:22:26 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H JUD 2  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Trial Courts                                                                                                               
     H JUD 2                                                                                                                    
     Delete Excess Federal Receipt Authority                                                                                    
                                                                                                                                
     Deletes $175.0 of excess receipt authority from the                                                                        
     Trial Courts' budget.                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair Gara explained the  amendment would delete excess                                                                    
federal receipt  authority from the  trial courts  budget of                                                                    
$175,000  per year.  The court  system did  not receive  the                                                                    
money and did not anticipate receiving it in the future.                                                                        
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendment H JUD 2 was ADOPTED.                                                                            
                                                                                                                                
3:22:58 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H JUD 3  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Administration and Support                                                                                                 
     H JUD 3 Delete Excess Federal Receipt Authority                                                                            
                                                                                                                                
     Deletes $75.0 of excess receipt authority from the                                                                         
     Administration and Support budget.                                                                                         
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair  Gara   explained  the  amendment   would  remove                                                                    
$75,000    of   federal    receipt   authority    from   the                                                                    
administration and support section  of the court system. The                                                                    
court system had not received the  money in the past and did                                                                    
not  anticipate  receiving  it in  the  future.  The  excess                                                                    
federal receipt authority to be  deleted by Amendments H JUD                                                                    
2 and H JUD 3 was $250,000.                                                                                                     
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION. There being                                                                       
NO further OBJECTION, Amendment H JUD 3 was ADOPTED.                                                                            
                                                                                                                                
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT SUBCOMMITTEE                                                                   
                                                                                                                                
3:23:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster provided a subcommittee report for the                                                                          
Department of Labor and Workforce Development. He read from                                                                     
a prepared statement (copy on file):                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Labor and  Workforce Development  held 3                                                                    
     meetings with  the Department during the  review of the                                                                    
     FY   19  budget   request.   The  budget   subcommittee                                                                    
     recommends that the House  Finance Committee accept the                                                                    
     Department  of Labor  and Workforce  Development FY  19                                                                    
     budget without any amendments.                                                                                             
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the   Department  of   Labor   submits  a   recommended                                                                    
     operating  budget  for FY  2019  to  the House  Finance                                                                    
     Committee as follows:                                                                                                      
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $20,624.2                                                                          
     Designated General Funds (DGF)          $35,586.3                                                                          
     Other Funds                             $17,002.1                                                                          
     Federal Funds                           $73,897.1                                                                          
     Total                                   $147,109.7                                                                         
                                                                                                                                
     The  Unrestricted General  Fund  (UGF) difference  from                                                                    
     the  FY  2015 Management  Plan  to  the FY  2019  House                                                                    
     Subcommittee  budget recommendation  is a  reduction of                                                                    
     $12,792.4,  a 38.3  percent decrease.  The Subcommittee                                                                    
     recommendation   reflects    a   total    decrease   in                                                                    
     Unrestricted  General Funds  of $367.8,  a 1.8  percent                                                                    
     reduction from the FY 2018 Management Plan.                                                                                
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      691                                                                                               
     Permanent Part-time      51                                                                                                
     Temporary                12                                                                                                
     Total                    754                                                                                               
                                                                                                                                
     There were  no Governor  amendments for  the Department                                                                    
     of Labor and Workforce Development.                                                                                        
     The  Department  of  Labor  and  Workforce  Development                                                                    
     Budget  House Finance  Subcommittee  did  not have  any                                                                    
     amendments for  the Department  of Labor  and Workforce                                                                    
     Development Budget.                                                                                                        
                                                                                                                                
Co-Chair Foster thanked his staff, the department,                                                                              
Legislative Finance Division staff, and subcommittee                                                                            
members.                                                                                                                        
                                                                                                                                
3:26:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:26:21 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT OF REVENUE SUBCOMMITTEE AMENDMENTS                                                                                
                                                                                                                                
3:26:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton provided a subcommittee report for the                                                                          
Department of Revenue (DOR). He read from a prepared                                                                            
statement (copy on file):                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of   Revenue  held  6  meetings   with  the                                                                    
     Department of  Revenue during the  review of the  FY 19                                                                    
     budget request.                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of   Revenue  recommends  that   the  House                                                                    
     Finance Committee accept the  Department of Revenues FY                                                                    
     I9    budget     with    the     following    amendment                                                                    
     recommendations:                                                                                                           
                                                                                                                                
     The numbers-only budget with amendment recommendations                                                                     
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)        $25,009.2                                                                          
     Designated General Funds (DGF)          $2,570.4                                                                           
    Other Funds                             $287,928.8                                                                          
     Federal Funds                           $78 438.3                                                                          
    Total                                   $393,946.7                                                                          
                                                                                                                                
     There  are  no changes  to  the  UGF, DGF,  or  federal                                                                    
     funds.  The only  change  to the  funding  level is  an                                                                    
     increase of  $140,000 in other funds.  The Unrestricted                                                                    
     General Fund  difference from FY 15  Management Plan to                                                                    
     the FY  19 House  Subcommittee Recommended budget  is a                                                                    
    reduction of $8,822.2, a decrease of 26.1 percent.                                                                          
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  18                                                                    
     Management  Plan  to  the   FY  19  House  Subcommittee                                                                    
     Recommended  budget   is  a  reduction  of   $575.7,  a                                                                    
     decrease of 2.3 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time      833                                                                                               
     Permanent Part-time      33                                                                                                
     Temporary                16                                                                                                
     Total                    822                                                                                               
                                                                                                                                
     The  subcommittee  made no  statutory  recommendations.                                                                    
     The  governor did  not submit  any amendments  for this                                                                    
     agency.                                                                                                                    
                                                                                                                                
3:28:51 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H DOR 1 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Alaska Mental Health Trust Authority                                                                                       
     Mental Health Trust Operations                                                                                             
     H DOR 1 Program Manager                                                                                                    
                                                                                                                                
     This  amendment  adds  $140.0 of  Mental  Health  Trust                                                                    
     Authority  Admin  funds  to  work  with  providers  and                                                                    
     administer  and target  grants aimed  at improving  the                                                                    
     lives of Trust beneficiaries  and reducing the need for                                                                    
     institutionalization.   The  Trust   will  add   needed                                                                    
     capacity  to  work  on programs  and  issues  with  its                                                                    
     local,  tribal,  non-profit   and  state  partners  for                                                                    
     Alaska's  trust  beneficiaries. The  position  (Program                                                                    
     Officer) will  allow the Trust  to expand  its capacity                                                                    
     as  the  need  for  mental  health  services  increases                                                                    
     across the state.                                                                                                          
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair  Seaton  explained  the  amendment.  The  amendment                                                                    
would  add a  program manager  to the  Alaska Mental  Health                                                                    
Trust Authority  (AMHTA) operations allocation. The  cost of                                                                    
the  position was  $140,000  and would  be  paid with  AMHTA                                                                    
administration  funds. He  explained  that  even though  the                                                                    
trust was  using its own funding,  legislative authorization                                                                    
was needed.  The position  would allow  the trust  to expand                                                                    
its  capacity  as  the  need   for  mental  health  services                                                                    
increases  across the  state. The  position would  work with                                                                    
providers and would administer and  target trust fund grants                                                                    
aimed  at improving  the lives  of trust  fund beneficiaries                                                                    
and reducing the need for institutionalization.                                                                                 
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendment H DOR 1 was ADOPTED.                                                                            
                                                                                                                                
3:30:03 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendments  H DOR 2, H DOR 3,                                                                    
H DOR 4, and H DOR 5 (copy on file):                                                                                            
                                                                                                                                
     Alaska Permanent Fund Corporation                                                                                          
     APFC Operations                                                                                                            
                                                                                                                                
     H DOR 2                                                                                                                    
     Relocate a portion of the                                                                                                  
     corporation's budget  increment to sec. 1  from section                                                                    
     8(g).                                                                                                                      
                                                                                                                                
     This  amendment,  along  with three  other  amendments,                                                                    
     relocates  the Permanent  Fund Corporation  budget from                                                                    
     language  section  8(g)  to   section  1,  the  numbers                                                                    
     section. This  amendment allocates  the portion  of the                                                                    
     corporation's increment attributable  to the Operations                                                                    
     allocation.                                                                                                                
                                                                                                                                
     H DOR 3                                                                                                                    
     Alaska Permanent Fund Corporation                                                                                          
     APFC Operations                                                                                                            
     H DOR 3                                                                                                                    
     Relocate the  corporation's base budget to  sec. 1 from                                                                    
     section 8(g).                                                                                                              
                                                                                                                                
     This  amendment,  along  with  three  other  amendments                                                                    
     relocates  the Permanent  Fund Corporation  budget from                                                                    
     language  section  8(g)  to   section  1,  the  numbers                                                                    
     section.  This  is  the  portion  of  the  base  budget                                                                    
     attributable to the Operations allocation.                                                                                 
                                                                                                                                
     H DOR 4                                                                                                                    
     APFC Investment Management Fees                                                                                            
     H DOR 4                                                                                                                    
     Relocate the  corporation's base budget to  sec. 1 from                                                                    
     section 8(g).                                                                                                              
                                                                                                                                
     This  amendment,  along  with  three  other  amendments                                                                    
     relocates  the Permanent  Fund Corporation  budget from                                                                    
     language  section  8(g)  to   section  1,  the  numbers                                                                    
     section.  This  is  the  portion  of  the  base  budget                                                                    
     attributable   to   the  Investment   Management   Fees                                                                    
     allocation.                                                                                                                
                                                                                                                                
     H DOR 5                                                                                                                    
     APFC Investment Management Fees                                                                                            
     H DOR 5                                                                                                                    
     Relocate   a  portion   of  the   corporation's  budget                                                                    
     increment to sec. 1 from section 8(g).                                                                                     
                                                                                                                                
     This  amendment,  along  with three  other  amendments,                                                                    
     relocates  the Permanent  Fund Corporation  budget from                                                                    
     language  section  8(g)  to   section  1,  the  numbers                                                                    
     section. This  amendment allocates  the portion  of the                                                                    
     corporation's increment attributable  to the Investment                                                                    
     Management Fees allocation.                                                                                                
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair  Seaton explained  the  related  amendments with  a                                                                    
prepared statement:                                                                                                             
                                                                                                                                
     These Alaska Permanent  Fund Corporation amendments are                                                                    
     all  related to  each  other. The  corporation's FY  19                                                                    
     budget request  is a single allocation  in the language                                                                    
     section of the operating  budget. These four amendments                                                                    
     add  the  corporation's  budget to  Section  1  of  the                                                                    
     budget and move the funding  into two allocations - the                                                                    
     operations  allocation  and the  investment  management                                                                    
     fees allocation.                                                                                                           
                                                                                                                                
Co-Chair Seaton explained the amendment  would return to the                                                                    
way the  budget had  been initially, without  the governor's                                                                    
proposed change.  He elaborated that  Amendment H DOR  3 was                                                                    
for the operations allocation and  Amendment H DOR 4 was for                                                                    
the  investment  management  fee allocation.  The  amendment                                                                    
would divide  the corporation's base budget  between the two                                                                    
allocations  as had  been  done  previously. The  governor's                                                                    
budget   request  included   a   $17.5  million   increment.                                                                    
Amendments H DOR 2, H DOR 3,  and H DOR 5 for the investment                                                                    
management  fees  divide  the   increment  between  the  two                                                                    
allocations  and  place  the   funding  in  Section  1.  The                                                                    
amendments were necessary for two  reasons. He detailed that                                                                    
if the  budget remained in  the bill's language  section the                                                                    
subcommittee  would have  no purview  over the  budget -  it                                                                    
would  only  be  reviewed  by   the  finance  co-chair.  The                                                                    
subcommittee believed  APFC should  continue to  present its                                                                    
budget   before    the   revenue    subcommittee   annually.                                                                    
Additionally, with  one allocation  it would not  be readily                                                                    
apparent to  legislators how much  funding was  budgeted for                                                                    
operations    versus   external    management   fees.    The                                                                    
subcommittee agreed  that tracking external  management fees                                                                    
with  a specific  allocation  improved  transparency of  the                                                                    
corporation's   budget.  The   four  amendments   added  the                                                                    
department's  budget  to  the numbers  section.  A  separate                                                                    
amendment  would  be  needed  to  remove  the  corporation's                                                                    
budget  from  the language  section,  which  he would  offer                                                                    
separately.                                                                                                                     
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendments H DOR  2, H DOR 3, H DOR 4,                                                                    
and H DOR 5 were ADOPTED.                                                                                                       
                                                                                                                                
3:32:48 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  pointed out an  error in position  count on                                                                    
page 2  of the  DOR subcommittee  report. He  believed total                                                                    
positions should read 882, not 822.                                                                                             
                                                                                                                                
Co-Chair Foster noted the correction.                                                                                           
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment  L H DOR 6 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Alaska Permanent Fund Corporation                                                                                          
     APFC Operations                                                                                                            
     L H DOR 6                                                                                                                  
     Remove  corporation's  FY19  budget from  the  language                                                                    
    sec. 8(g) and move to sec. 1, the numbers section.                                                                          
     See 30-GH2564D13                                                                                                           
                                                                                                                                
     The Permanent  Fund Corporation's budget  was submitted                                                                    
     as section  8(g) and the two  allocations of Operations                                                                    
     and  Investment  Management   Fees  were  combined.  In                                                                    
     conjunction  with Revenue  Subcommittee, the  budget is                                                                    
     removed  from  language and  added  to  section 1,  the                                                                    
     numbers section where the  budget has historically been                                                                    
    requested and split back into the two allocations.                                                                          
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton explained the amendment with a prepared                                                                         
statement:                                                                                                                      
                                                                                                                                
     The language sections are really  not under the purview                                                                    
     of the subcommittees. That's why  I as finance co-chair                                                                    
     move this language amendment  separately. I am offering                                                                    
     this amendment  now because it  is directly  related to                                                                    
     four  previous Permanent  Fund Corporation  amendments.                                                                    
     This  amendment deletes  the corporation's  full budget                                                                    
     from the language section.  This amendment is necessary                                                                    
     since   the  previous   four   amendments  adding   the                                                                    
     corporation's  budget  back  into the  numbers  section                                                                    
     were adopted.                                                                                                              
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION. There being                                                                       
NO further OBJECTION, Amendment L H DOR 6 was ADOPTED.                                                                          
                                                                                                                                
HB 285 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 286 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following week.                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:35:16 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:35 p.m.                                                                                          

Document Name Date/Time Subjects
HB 286 - HB 285 Subcommittee Reports and Amendments DOA DCCED DEED.pdf HFIN 2/23/2018 1:30:00 PM
HB 285
HB 286
HB 286 - HB 285 Subcommittee Reports and Amendments DFG GOV JUD DOR.pdf HFIN 2/23/2018 1:30:00 PM
HB 285
HB 286
HB 286 - HB 285 Subcommittee Reports and Amendments DOL.pdf HFIN 2/23/2018 1:30:00 PM
HB 285
HB 286