Legislature(2017 - 2018)ADAMS ROOM 519

02/26/2018 01:30 PM FINANCE

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Audio Topic
01:31:46 PM Start
01:33:52 PM HB285 || HB286
01:33:57 PM Department of Corrections Amendments
01:48:46 PM Department of Environmental Conservation Amendments
01:51:16 PM Department of Health and Social Services
02:57:23 PM Department of Law
03:16:00 PM Department of Military and Veterans Affairs
03:28:51 PM Department of Natural Resources
04:02:22 PM Department of Public Safety
04:32:01 PM Department of Transportation and Public Facilities
04:41:02 PM University of Alaska
05:00:52 PM Legislature
05:14:58 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
+= HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Reports & Amendments TELECONFERENCED
- Dept. of Corrections
- Dept. of Environmental Conservation
- Dept. of Health & Social Services
- Dept. of Law
- Dept. of Military & Veterans' Affairs
- Dept. of Natural Resources
- Dept. of Public Safety
- Dept. of Transportation & Public Facilities
- University of AK
- Legislature
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 26, 2018                                                                                          
                         1:31 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:31:46 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Seaton  called the House Finance  Committee meeting                                                                    
to order at 1:31 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Les Gara, Vice-Chair                                                                                             
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Shawnda   O'Brien,  Assistant   Commissioner,  Finance   and                                                                    
Management  Services,   Department  of  Health   and  Social                                                                    
Services;   David   Teal,  Director,   Legislative   Finance                                                                    
Division;  Dan Spencer,  Director, Administrative  Services,                                                                    
Department  of  Law;  Fabienne Peter-Contesse,  Director  of                                                                    
Administrative  Support  Services,   Department  of  Natural                                                                    
Resources; Fabian  //; Alexei Painter,  Analyst, Legislative                                                                    
Finance  Division;  Kelly   Howell,  Director,  Division  of                                                                    
Administrative Services,  Department of Public  Safety; Walt                                                                    
Monegan, Commissioner,  Department of Public  Safety; Amanda                                                                    
Holland,   Acting   Deputy   Commissioner,   Department   of                                                                    
Transportation   and   Public   Facilities;   Miles   Baker,                                                                    
Director, Government Relations, University of Alaska.                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Commissioner  Dean  Williams,   Department  of  Corrections;                                                                    
Steve  Masterman,   Director,  Geological   and  Geophysical                                                                    
Surveys;  Brent Goodrum,  Department  of Natural  Resources,                                                                    
Division of Mining, Land, and Water, Anchorage.                                                                                 
                                                                                                                                
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 CORRECTIONS                                                                                                  
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                   
     DEPARTMENT OF LAW                                                                                                          
     DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
    DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                          
     UNIVERSITY OF ALASKA                                                                                                       
     LEGISLATURE                                                                                                                
                                                                                                                                
Co-Chair Seaton reviewed the meeting  agenda. He shared that                                                                    
the  subcommittee reports  were distributed  to members  the                                                                    
previous  Saturday and  posted  on  the Legislative  Finance                                                                    
Division  website and  the legislature's  website. He  noted                                                                    
that  on  the  previous  Friday the  committee  took  up  22                                                                    
amendments, and  there were 56  amendments proposed  for the                                                                    
remaining 10  agencies on the current  day's schedule. Also,                                                                    
there were 22 language amendments  that would be taken up by                                                                    
the committee  on the following  Tuesday. The  reports might                                                                    
be an incomplete  picture of the department's  budget. A new                                                                    
committee   substitute  would   be   compiled  for   further                                                                    
consideration.  He intended  to extend  House Finance  until                                                                    
5:00 pm in  the present day, and depending  on progress, the                                                                    
committee would  return in  the evening  or in  the morning.                                                                    
The scheduled hearing would likely  be bumped. The committee                                                                    
would  finish  on Tuesday  to  allow  time for  a  committee                                                                    
substitute  to  be  drafted  and   out  for  review.  Public                                                                    
testimony would  be heard on  Thursday. He asked  members to                                                                    
limit their  questions and remarks  in the interest  of time                                                                    
wherever possible.                                                                                                              
                                                                                                                                
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."                                                                                                        
                                                                                                                                
1:33:52 PM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF CORRECTIONS AMENDMENTS                                                                                         
                                                                                                                                
1:33:57 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki provided a subcommittee report for                                                                      
the Department of Corrections (DOC) with a prepared                                                                             
statement:                                                                                                                      
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of                                                                                                              
     Corrections held  six meetings and a  closeout with the                                                                    
     Department  during the  review of  the FY19  Governor's                                                                    
     Amended Budget.                                                                                                            
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the  Department  of  Corrections  recommends  that  the                                                                    
     House  Finance  Committee  accept the  Governor's  FY19                                                                    
     Budget and subcommittee amendment proposals.                                                                               
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) 288,939.1                                                                                 
     Designated General Funds (DGF) 8,507.2                                                                                     
     Other Funds 25,735.9                                                                                                       
     Federal Funds 7,695.9                                                                                                      
     Total 330,878.1                                                                                                            
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget  is  a  reduction  of  $8,715.3,  a                                                                    
     decrease 2.9 percent.                                                                                                      
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY18                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget is  an  increase  of $21,931.1,  an                                                                    
     increase of 8.2 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 1,893                                                                                                  
     Permanent Part-time 0                                                                                                      
     Temporary 0                                                                                                                
     Total 1,893                                                                                                                
                                                                                                                                
     The  Governor did  not submit  any amendments  for this                                                                    
     agency.                                                                                                                    
                                                                                                                                
     The Subcommittee  discussed a variety of  issues during                                                                    
     the meetings,  including some amendment  proposals that                                                                    
     were   not  forwarded   to  the   full  House   Finance                                                                    
     Committee.                                                                                                                 
                                                                                                                                
     1. Transfer  Funding to Create a  New Appropriation and                                                                    
     Allocation   for   Substance   Abuse   Monitoring   and                                                                    
     Diversion Services, Transfer $750.0 UGF                                                                                    
                                                                                                                                
     An amendment was discussed  that would have transferred                                                                    
     $750.0  UGF from  the Electronic  Monitoring allocation                                                                    
     to a  new appropriation  and allocation to  establish a                                                                    
     substance  abuse  program.   Individuals  with  charges                                                                    
     involving a  nexus to alcohol or  substance abuse would                                                                    
     be  required to  participate in  a program  established                                                                    
     under  AS 47.38.020,  an  alcohol  and substance  abuse                                                                    
     monitoring program within the  Department of Health and                                                                    
     Social  Services in  collaboration with  the Department                                                                    
     of Corrections.                                                                                                            
                                                                                                                                
     Subcommittee  Discussion:  AS   47.38.020  creates  the                                                                    
     Alaska  24-7 Sobriety  Program.  This program  monitors                                                                    
     incarcerated                                                                                                               
     and  pretrial  non-violent  individuals with  drug  and                                                                    
     alcohol related charges or crimes.                                                                                         
                                                                                                                                
     The  Department spoke  in  opposition  to the  proposed                                                                    
     amendment.  The  number  of   people  serving  time  on                                                                    
     electronic  monitoring  for  parole and  probation  has                                                                    
     decreased, but  the number  of people  using electronic                                                                    
     monitoring   during   pretrial   is   increasing.   The                                                                    
     Department relies on the  same contract, equipment, and                                                                    
     staff  for electronic  monitoring in  both allocations.                                                                    
     The  Department testified  that the  cut of  $750.0 UGF                                                                    
     would result  in fewer people on  electronic monitoring                                                                    
     and the loss of positions.                                                                                                 
                                                                                                                                
     The  Subcommittee discussed  how  to  best provide  the                                                                    
     Department with  a tool to better  monitor inmates with                                                                    
     alcohol   and   drug   related   charges.   There   was                                                                    
     disagreement  if this  would  be best  done within  the                                                                    
     Department, as is currently provided,  or by creating a                                                                    
     new program,  as proposed  in this  amendment. However,                                                                    
     there was  general agreement that  the topic  was worth                                                                    
     discussing in the House Finance Committee.                                                                                 
                                                                                                                                
     The amendment failed by a vote of 4 yeas and 5 nays.                                                                       
                                                                                                                                
     2.   Delete  Two   Professional  Conduct   Investigator                                                                    
     Positions  and Funding  for  Personal  Services in  the                                                                    
     Office  of the  Commissioner, (268.8)  UGF and  (2) PFT                                                                    
     Positions                                                                                                                  
     Subcommittee  Discussion: In  FY2018, the  Subcommittee                                                                    
     transferred    the    entire    Professional    Conduct                                                                    
     Investigation  Unit and  three corresponding  positions                                                                    
     from the  Correctional Academy allocation and  into the                                                                    
     Office  of  the  Commission  allocation.  In  the  FY18                                                                    
     Management   Plan   two    new   Professional   Conduct                                                                    
     Investigator positions were added  to the Office of the                                                                    
     Commissioner   (PCNs   20-T030  and   20-T039).   These                                                                    
     positions are  currently filled. The  committee debated                                                                    
     the need  for the  two new positions  and corresponding                                                                    
     funding.                                                                                                                   
                                                                                                                                
     The amendment failed by a vote of 4 yeas and 5 nays.                                                                       
                                                                                                                                
     3.  Delete  Two  Positions  and  Funding  for  Personal                                                                    
     Services  in Information  Technology  MIS, (198.0)  UGF                                                                    
     and 2 PFT Positions                                                                                                        
                                                                                                                                
     Subcommittee  Discussion:  PCNs 20-6130,  20-6162,  20-                                                                    
     6914  and  20-6920  were transferred  from  the  Palmer                                                                    
     allocation to Information  Technology MIS allocation in                                                                    
     FY 17  when the Palmer Correctional  Center closed. Two                                                                    
     of  those positions  were transferred  to the  Research                                                                    
     and Records allocation in                                                                                                  
     FY18. As  of January 1,  2018, neither PCN  20-6914 nor                                                                    
     20-6920 had been filled or posted on Workplace Alaska.                                                                     
                                                                                                                                
     The Department  announced they have  filled one  of the                                                                    
     positions  since January  11,  2018.  In response,  the                                                                    
     amendment sponsor proposed  a conceptual amendment that                                                                    
     would instead  delete $99.0 UGF and  one position, this                                                                    
     passed without objection.                                                                                                  
                                                                                                                                
     The amendment failed by a vote of 4 yeas and 5 nays.                                                                       
                                                                                                                                
     4.  Reducing  Funding  in Information  Technology  MIS,                                                                    
     (500.0) UGF                                                                                                                
                                                                                                                                
     Subcommittee  Discussion:  An amendment  was  discussed                                                                    
     that  would have  reduced  funding  in the  Information                                                                    
     Technology MIS allocation by $500 UGF.                                                                                     
                                                                                                                                
     The  Department testified  that a  misplaced line  item                                                                    
     for reimbursable  service agreements to the  new Office                                                                    
     of  Information technology  had caused  the budget  for                                                                    
     Information Technology MIS to appear overly inflated.                                                                      
                                                                                                                                
     The sponsor withdrew their amendment.                                                                                      
     5.  Seven amendments  were introduced  that would  have                                                                    
     deleted   funds   from    the   Population   Management                                                                    
     allocation. The  amendment sponsor  spoke to  the first                                                                    
     amendment and withdrew                                                                                                     
     it along with the other six amendments.                                                                                    
                                                                                                                                
     The     subcommittee     reviewed     the     following                                                                    
    recommendation, that was withdrawn by the sponsor:                                                                          
                                                                                                                                
     House  Judiciary  Committee    Support  the  Governor's                                                                    
     HB 295 to amend AS 12.30.006  AS 12.30.011                                                                                 
                                                                                                                                
     The  committee  discussed  a  statutory  proposal  that                                                                    
     would  have  urged  the   House  finance  Committee  to                                                                    
     support the provisions in HB  295 creating an exception                                                                    
     to  the  requirement   of  mandatory  own  recognizance                                                                    
     release  for  persons  charged with  a  misdemeanor  or                                                                    
     class C felony who are  assessed by a pretrial services                                                                    
     officer as  low to  moderate risk  and have  an out-of-                                                                    
     state  criminal  history  that has  not  been  used  in                                                                    
     determining the person's risk level.                                                                                       
                                                                                                                                
     Subcommittee Discussion:  The Subcommittee  agreed with                                                                    
     the  intention of  the amendment  but questioned  if it                                                                    
     was appropriate  to urge the full  committee to endorse                                                                    
     a specific piece of  legislation. The sponsored offered                                                                    
     a  conceptual amendment  to eliminate  the bill  number                                                                    
     from the wordage, but it was objected to.                                                                                  
                                                                                                                                
     The sponsor withdrew the amendment.                                                                                        
                                                                                                                                
Representative  Kawasaki relayed  that the  subcommittee had                                                                    
no statutory  recommendations. The  governor did  not submit                                                                    
any  amendments  for  DOC.   He  thanked  Commissioner  Dean                                                                    
Williams, who had  been present for all  of the subcommittee                                                                    
meetings, April Wilkerson, Juliana Melin, and Amanda Ryder.                                                                     
                                                                                                                                
Representative  Pruitt  noted  that  the  report  showed  an                                                                    
unrestricted general  fund (UGF)  difference between  the FY                                                                    
18 management  plan and the  recommendation. He  asked about                                                                    
the percentage if the supplemental  request was added to the                                                                    
management plan. He thought it  would be closer to an actual                                                                    
plan.                                                                                                                           
                                                                                                                                
Representative  Kawasaki did  not  have  his paperwork  with                                                                    
him. However, he thought it  would be even. He estimated the                                                                    
fast-track supplemental request to  be about $20 million. He                                                                    
detailed that  about $10 million  dealt with  population and                                                                    
the other $10  million had to do with  inmate healthcare. He                                                                    
commented that it was roughly flat.                                                                                             
                                                                                                                                
1:38:38 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  indicated that  he had a  series of                                                                    
amendments that he would be  forwarding a report that showed                                                                    
all  amendments passing  unanimously with  the exception  of                                                                    
one that passed 7 to 2.                                                                                                         
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DOC 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Administration and Support                                                                                                 
     Office of the Commissioner                                                                                                 
     H  DOC  1  -  Add  Intent to  Take  Full  Advantage  of                                                                    
     Community   Residential   Centers  While   Prioritizing                                                                    
     Public Safety Offered by Representative Kawasaki                                                                           
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Commissioner of Corrections take  full advantage of the                                                                    
     cost  savings  available  through  the  tiered  pricing                                                                    
     structure   as  stated   in  the   CRC  contracts,   by                                                                    
     maximizing  prisoner  placement into  these  facilities                                                                    
     while prioritizing public safety.                                                                                          
                                                                                                                                
     Explanation: Currently the State  pays $162.49 per bed,                                                                    
     per day  in a correctional  facility. If  utilized, the                                                                    
     CRCs do significantly reduce the  daily cost of housing                                                                    
     prisoners.  However,   to  realize   these  significant                                                                    
     savings each CRC must be more fully occupied.                                                                              
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Kawasaki   reviewed   the   amendment   and                                                                    
indicated it was passed unanimously in the subcommittee.                                                                        
                                                                                                                                
Representative  Wilson commented  that when  the legislature                                                                    
passed  SB 91,  $1 million  had been  allocated for  halfway                                                                    
houses to have treatment. The  allocation was to be paid for                                                                    
over two years,  $500,000 each year. She had  heard from DOC                                                                    
that  treatment  had not  been  implemented  in the  halfway                                                                    
house. She reported, after  further investigation, that much                                                                    
of  the money  had been  returned to  the general  fund. She                                                                    
thought it was  a step down from prison to  a halfway house.                                                                    
She wanted to ensure that  treatment was provided. She urged                                                                    
additional investigation because of high recidivism rates.                                                                      
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DOC 1 was ADOPTED.                                                                        
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DOC 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Administration and Support                                                                                                 
     Research and Records                                                                                                       
     H DOC 2 - Delete Two Vacant Positions                                                                                      
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     PCN's  20-6130,   20-6162,  20-6914  and   20-6920  and                                                                    
     funding were transferred from  the Palmer allocation to                                                                    
     Information  Technology MIS  allocation in  FY 17  when                                                                    
     the  Palmer Correctional  Center closed.  All positions                                                                    
     were vacant  in FY  18 and  no recruitment  had started                                                                    
     during  the  last  legislative session,  therefore  the                                                                    
     Finance Subcommittee  deleted the positions.  They were                                                                    
     reinstated by the House Finance Committee.                                                                                 
                                                                                                                                
     All  four positions  were vacant  as of  1/11/18. PCN's                                                                    
     20-6130   and   20-6162   were  transferred   to   this                                                                    
     allocation in  the Governor's FY 19  budget request and                                                                    
     reclassified. This amendment  deletes the positions and                                                                    
     the associated post-vacancy  personal services costs of                                                                    
     $229,483 ($235,706 positions  costs less vacancy factor                                                                    
     of 2.64 percent in this allocation).                                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki  detailed the amendment.  He relayed                                                                    
that in  offered testimony  that the  two IT  positions were                                                                    
still   vacant  with   no  recruitment   going  on   and  no                                                                    
recruitment had ensued in the  previous year. The allocation                                                                    
had been pulled  in the prior year's budget  and restored by                                                                    
the Senate.  The remaining two positions  were currently not                                                                    
filled  or  advertised.  The   vote  passed  unanimously  in                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative Wilson  noted she  had deleted  the positions                                                                    
in  the prior  year  because  they had  not  been filled  or                                                                    
recruited. She WITHDREW her OBJECTION.                                                                                          
                                                                                                                                
There being NO OBJECTION, Amendment H DOC 2 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair  Seaton  acknowledged   that  Representative  Cathy                                                                    
Tilton  and Representative  Steve  Thompson  had joined  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DOC 4                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Population Management Institution                                                                                          
     Director's Office                                                                                                          
     H  DOC   4  -  Add  Intent   Prioritizing  Funding  and                                                                    
     Solutions  to Reduce  the  Disparity  of Alaska  Native                                                                    
     Incarceration                                                                                                              
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Commissioner  of  the  Department of  Corrections  will                                                                    
     prioritize funding and  implement solutions that reduce                                                                    
     the   disparity   in    Alaska   Native   incarceration                                                                    
     throughout the state.                                                                                                      
                                                                                                                                
     Explanation:    Alaska     Native    individuals    are                                                                    
     incarcerated  at a  drastically  higher  rate than  any                                                                    
     other demographic  group in  the state.  The underlying                                                                    
     causes  of  this   (e.g.  systematic  racism,  economic                                                                    
     disparity, etc.)  must be  accounted for  in developing                                                                    
     and implementing appropriate  solutions to resolve this                                                                    
     disparity   of   incarceration    within   the   Alaska                                                                    
     corrections system.                                                                                                        
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki reviewed  the amendment. He reported                                                                    
that  incarceration  rates  in  jails were  twice  what  the                                                                    
normal  population  of  Alaska   Natives  were.  The  intent                                                                    
language had also  been offered in the  prior year's budget.                                                                    
The  subcommittee  felt  it  was  very  important  that  the                                                                    
language remained  in the budget  and that  the commissioner                                                                    
provided updates  to the  legislature. The  amendment passed                                                                    
by a vote of 7 to 2.                                                                                                            
                                                                                                                                
Representative Wilson  asked how  many of the  Alaska Native                                                                    
population  was in  pre-trial  status, awaiting  sentencing,                                                                    
and have  been sentenced. She  was unsure the  amendment had                                                                    
been followed in the previous  year. She thought the numbers                                                                    
would be  helpful in evaluating  the issue in  the following                                                                    
year. She hoped the department could answer the question.                                                                       
                                                                                                                                
Co-Chair Seaton did not believe  the department could answer                                                                    
the  question. Representative  Wilson argued  the importance                                                                    
of the  department being  able to  answer the  question. She                                                                    
did not  want to continue  putting intent language  into the                                                                    
budget  without knowing  whether it  was utilized.  Co-Chair                                                                    
Seaton advised  that the commissioner  was online  to answer                                                                    
questions. He asked him to respond.                                                                                             
                                                                                                                                
1:44:32 PM                                                                                                                    
                                                                                                                                
COMMISSIONER DEAN  WILLIAMS, DEPARTMENT OF  CORRECTIONS (via                                                                    
teleconference), had heard the intent  language in the prior                                                                    
year and relayed  that the amendment was a  priority for him                                                                    
as  well. He  pointed  out  there were  2  things about  the                                                                    
disproportion   of   minority    confinement.   First,   the                                                                    
department  encountered  people that  came  to  DOC or  were                                                                    
referred. However,  it was  not up to  DOC to  determine who                                                                    
was incarcerated and who was  not. The amount of control the                                                                    
commissioner  had  as  to  who  was  incarcerated  was  very                                                                    
limited. He noted some of the  changes he was trying to make                                                                    
within  the department  having to  do  with pre-release  and                                                                    
re-entry.  He had  paid close  attention to  the issue  of a                                                                    
disproportion of  minority confinement and deeply  cared. He                                                                    
could have  an effect  on incorporating  culturally relative                                                                    
programs to reduce recidivism among Alaska Natives.                                                                             
                                                                                                                                
Representative   Wilson  restated   her   question  to   the                                                                    
commissioner.  She  wanted  to understand  the  percentages.                                                                    
Commissioner Williams  thought he  would be able  to provide                                                                    
her the information within 1-2 days.                                                                                            
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DOC 4 was ADOPTED.                                                                        
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DOC 5                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Population Management                                                                                                      
     Electronic Monitoring                                                                                                      
     H DOC  5 - Add  Intent to Expand  Electronic Monitoring                                                                    
     to Bethel                                                                                                                  
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Commissioner  of  the  Department of  Corrections  will                                                                    
     prioritize expanding the  Electronic Monitoring program                                                                    
     to Bethel.                                                                                                                 
                                                                                                                                
     Explanation: Expanding electronic  monitoring in Bethel                                                                    
     will help reduce adverse impacts  of conviction to low-                                                                    
     risk individuals by allowing  them to stay connected to                                                                    
     healthy  social and  work  networks  in the  community,                                                                    
     reducing  the  risk   of  recidivism  that  accompanies                                                                    
     separation from work  and family. Currently, electronic                                                                    
     monitoring is offered  in Anchorage, Fairbanks, Juneau,                                                                    
     Kenai, Ketchikan,  and Palmer.  There are  Regional and                                                                    
     Community jail operated  electronic monitoring programs                                                                    
     in Barrow,  Kodiak, and  Sitka. So  far this  year, the                                                                    
     total   average  number   of   inmates  on   electronic                                                                    
     monitoring  in Alaska  is 205.  Anchorage accounts  for                                                                    
     116,  Fairbanks  has  39, Palmer  has  28,  Juneau  has                                                                    
     averaged  11  and  Kenai  is  at  7.  All  others  have                                                                    
     averaged less than 1.                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki  indicated the amendment  dealt with                                                                    
intent  language  to   prioritize  expansion  of  electronic                                                                    
monitoring  to  the  Bethel  Region.  Currently,  electronic                                                                    
monitoring  was  offered  in Anchorage,  Fairbanks,  Juneau,                                                                    
Kenai, Ketchikan, Palmer, Barrow,  Kodiak, and Sitka through                                                                    
the community  jail system. The subcommittee  thought Bethel                                                                    
was the next largest place  and would help to reduce adverse                                                                    
impacts. It was  also much more affordable to  keep a person                                                                    
on electronic monitoring than it was to keep them in jail.                                                                      
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DOC 5 was ADOPTED.                                                                        
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DOC 3                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Facility-Capital Improvement Unit                                                                                          
     Facility-Capital Improvement Unit                                                                                          
     H DOC 3 - Create  New Facility-Capital Improvement Unit                                                                    
     Appropriation and Transfer  Allocation Funding and PCNs                                                                    
     to New Appropriation                                                                                                       
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Move the  Facility-Capital Improvement  Unit allocation                                                                    
     to  a new  Facility Capital  Improvement appropriation.                                                                    
     This  amendment  funds  the   FY  19  request  for  the                                                                    
     Facility-Capital   Improvement    unit.   However,   by                                                                    
     creating a separate appropriation,  it insures that the                                                                    
     funding may  be expended only for  facility maintenance                                                                    
     and repairs.                                                                                                               
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki  reported  that the  amendment  had                                                                    
passed  unanimously  in   subcommittee.  The  Department  of                                                                    
Environmental  Conservation  (DEC)  was   one  of  the  only                                                                    
budgets he  handled that had a  capital improvement request.                                                                    
The amount of  the request was $1  million. The subcommittee                                                                    
added language  to ensure that facility  capital improvement                                                                    
money was  only used  for facilities  and not  moved between                                                                    
allocations.                                                                                                                    
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DOC 3 was ADOPTED.                                                                        
                                                                                                                                
^DEPARTMENT OF ENVIRONMENTAL CONSERVATION AMENDMENTS                                                                          
                                                                                                                                
1:48:46 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster provided his subcommittee report:                                                                               
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of  Environmental   Conservation  held   4                                                                    
     meetings with  the Department during the  review of the                                                                    
     FY19 budget request.                                                                                                       
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the Department of  Environmental Conservation submits a                                                                    
     recommended operating  budget for  FY2019 to  the House                                                                    
     Finance Committee as follows:                                                                                              
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $15,190.0                                                                                 
     Designated General Funds (DGF) $24,511.3                                                                                   
     Other Funds $17,418.7                                                                                                      
     Federal Funds $23,070.6                                                                                                    
     Total $80,190.6                                                                                                            
                                                                                                                                
     The  Unrestricted General  Fund  (UGF) difference  from                                                                    
     the  FY2015   Management  Plan  to  the   FY2019  House                                                                    
     Subcommittee  budget recommendation  is a  reduction of                                                                    
     $7,052.0,  a 31.7  percent  decrease. The  Subcommittee                                                                    
     recommendation   reflects    a   total    decrease   in                                                                    
     Unrestricted  General Funds  of $107.9,  a 0.7  percent                                                                    
     reduction from the FY2018 Management Plan.                                                                                 
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 485                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary 1                                                                                                                
     Total 486                                                                                                                  
                                                                                                                                
     There were  no Governor  amendments for  the Department                                                                    
     of Environmental Conservation.                                                                                             
                                                                                                                                
     The  Department  of Environmental  Conservation  Budget                                                                    
     House Finance Subcommittee did  not have any amendments                                                                    
     for the Department of Environmental Conservation.                                                                          
                                                                                                                                
Co-Chair Foster thanked the department, Mr. Painter, and                                                                        
the subcommittee members.                                                                                                       
                                                                                                                                
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                     
                                                                                                                                
1:51:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara read the subcommittee report for the                                                                            
Department of Health and Social Services:                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Health  and   Social  Services  held  8                                                                    
     meetings  with  the  Department during  the  review  of                                                                    
     their FY19 budget request.                                                                                                 
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Health  and  Social Services  recommends                                                                    
     that the House Finance  Committee accept the Department                                                                    
     of  Health and  Social Services'  FY19 budget  with the                                                                    
     following amendment recommendations:                                                                                       
                                                                                                                                
     The numbers-only budget with amendment recommendations                                                                     
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $1,147,735.9                                                                              
     Designated General Funds (DGF) $81,019.1                                                                                   
     Other Funds $122,145.7                                                                                                     
     Federal Funds $1,885,967.0                                                                                                 
     Total $3,236,867.7                                                                                                         
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget is  a  reduction  of $103,643.3,  a                                                                    
     decrease of                                                                                                                
     8.3 percent.                                                                                                               
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY19                                                                    
     Governor's   Adjusted   Budget   to  the   FY19   House                                                                    
     Subcommittee                                                                                                               
     Recommended  budget  is  a  decrease  of  $17,372.8,  a                                                                    
     decrease of 1.5 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 3,417                                                                                                  
     Permanent Part-time 44                                                                                                     
     Temporary 76                                                                                                               
     Total 3,537                                                                                                                
                                                                                                                                
Representative   Wilson   asked   why  the   FY   19   House                                                                    
Subcommittee budget  was being  used rather  than the  FY 19                                                                    
governor's   adjusted  budget.   The   committee  had   been                                                                    
consistent up until the DHSS  report. She wondered about the                                                                    
reason  for the  change. Vice-Chair  Gara responded  that he                                                                    
had  not been  reading the  other subcommittee  reports when                                                                    
they  were writing  them. He  thought people  would want  to                                                                    
know the long-term budget change.  He did not go through the                                                                    
governor's amendments that were adopted.                                                                                        
                                                                                                                                
Co-Chair Seaton  asked if they  would be in  the amendments.                                                                    
Vice-Chair  Gara  replied  that  there were  a  few  of  the                                                                    
governor's  amendments that  were adopted  and one  that was                                                                    
rewritten. Co-Chair  Seaton asked  if Vice-Chair  Gara would                                                                    
be   moving  the   amendments.  Vice-Chair   Gara  responded                                                                    
affirmatively.  Co-Chair Seaton  indicated that  the changes                                                                    
would  be   discussed  at  the  time   the  amendments  were                                                                    
discussed.                                                                                                                      
                                                                                                                                
Representative  Pruitt  noticed   a  substantial  change  in                                                                    
looking  at  the details.  He  was  also curious  about  the                                                                    
change.                                                                                                                         
                                                                                                                                
Vice-Chair   Gara   continued    his   subcommittee   report                                                                    
presentation:                                                                                                                   
                                                                                                                                
     The subcommittee  discussed a variety of  issues during                                                                    
     the  meetings, including  one  amendment proposal  that                                                                    
     was ultimately withdrawn.                                                                                                  
                                                                                                                                
     This amendment  proposal would  have transferred  up to                                                                    
     $1.5 million from the Recidivism  Reduction Fund to the                                                                    
     Alcohol and  Other Drug  Prevention and  Treatment Fund                                                                    
     to  give the  state time  to determine  how to  address                                                                    
     future  projected shortfalls  in the  Alcohol Fund.  In                                                                    
     the  past few  fiscal  years,  appropriations from  the                                                                    
     Alcohol  Fund have  exceeded revenue  to the  fund. The                                                                    
     excess  appropriations have  been  covered  by a  carry                                                                    
     forward balance.  At current appropriation  levels, the                                                                    
     carry forward balance will be  exhausted in FY 20. This                                                                    
     issue   will   need   to   be   addressed   by   future                                                                    
     legislatures.                                                                                                              
                                                                                                                                
    The subcommittee made no statutory recommendations.                                                                         
                                                                                                                                
Co-Chair Seaton interrupted Vice-Chair Gara to take an at                                                                       
ease.                                                                                                                           
                                                                                                                                
1:57:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:58:19 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton relayed that the amendments would be                                                                            
offered in the order in which they were listed.                                                                                 
                                                                                                                                
Vice-Chair Gara MOVED to ADOPT Amendment H HSS 1 and H HSS                                                                      
10 (copy on file):                                                                                                              
                                                                                                                                
     Behavioral Health                                                                                                          
     Designated Evaluation and Treatment                                                                                        
     H  HSS  1 -  3-year  State  Matching Funds  to  Support                                                                    
     Hospital-based Mental Health Care (FY 19 - FY 21)                                                                          
     Offered by Representative Gara                                                                                             
                                                                                                                                
     In  recent years,  Alaska has  not claimed  all of  the                                                                    
     federal Disproportionate Share  Hospitals (DSH) funding                                                                    
     to  which it  is entitled  due  to a  lack of  matching                                                                    
     funds and federal receipt  authority. With a commitment                                                                    
     of   $1.9  million   in  Alaska   Comprehensive  Health                                                                    
     Insurance (ACHI)  funds in  FY 19,  the State  would be                                                                    
     able to leverage an additional  $1.9 million of federal                                                                    
     DSH funds.                                                                                                                 
                                                                                                                                
     Currently,  there   is  a  major  gap   in  the  Alaska                                                                    
     Psychiatric   Institute's   (API)  ability   to   admit                                                                    
     patients,  due  to its  limited  capacity  of 80  beds.                                                                    
     Although  API is  claiming all  of the  DSH funding  to                                                                    
     which   it,  as   Alaska's   only  public   psychiatric                                                                    
     hospital, is currently entitled,  the State could claim                                                                    
     a  portion of  its unused  DSH funds  to support  other                                                                    
     hospitals  and  community  behavioral  health  programs                                                                    
     that are  especially impacted by the  lack of treatment                                                                    
     beds at API.                                                                                                               
                                                                                                                                
     Specifically, these additional  funds would enhance the                                                                    
     capacities  of the  State's  three existing  DSH-funded                                                                    
     hospital-based  mental  health treatment  programs  and                                                                    
     provide  new financial  support to  approximately three                                                                    
     other hospitals impacted by the  lack of treatment beds                                                                    
     at API.                                                                                                                    
                                                                                                                                
     These hospitals  have been working hard  to provide and                                                                    
     maintain safe environments for  patients who are court-                                                                    
     ordered to psychiatric evaluation  and treatment at API                                                                    
     (or  one of  the  other two  Designated Evaluation  and                                                                    
     Treatment hospitals). Many of  these patients are being                                                                    
     held for days and  sometimes longer in their hospitals'                                                                    
     emergency departments awaiting transfer to API.                                                                            
                                                                                                                                
     Services  provided would  depend on  what the  hospital                                                                    
     and,  in some  cases,  the  local community  behavioral                                                                    
     health  center  determines  makes the  most  sense  for                                                                    
     their   hospital/community,   ranging  from   physician                                                                    
     (including  psychiatric)  and   social  work  services,                                                                    
     additional security guards and  substance use or mental                                                                    
     health   services    (assessments,   evaluations),   to                                                                    
     discharge  planning and  converting emergency  rooms to                                                                    
     safe  rooms, etc.,  all geared  towards providing  more                                                                    
     appropriate   services  for   the   mentally  ill   and                                                                    
     relieving  the   stress  and  pressures   on  emergency                                                                    
     departments.                                                                                                               
                                                                                                                                
     While  two  other   existing  hospitals  have  approved                                                                    
     Certificates  of Need  to  expand  services to  provide                                                                    
     treatment  for   people  who  would  qualify   for  API                                                                    
     admission, these new services  will not be online until                                                                    
     early   2019  and   2020,   and   ultimately  are   not                                                                    
     anticipated  to meet  the existing  need. Further,  the                                                                    
     Department of  Health &  Social Services  has submitted                                                                    
     the  Section  1115  Behavioral Health  Medicaid  Waiver                                                                    
     application to  the Centers  for Medicare  and Medicaid                                                                    
     Services  (CMS)  which  will help  increase  access  to                                                                    
     community-based  behavioral  health  services.  Service                                                                    
     implementation  will take  multiple years  and although                                                                    
     it is  anticipated to begin  in 2020, it will  be based                                                                    
     on negotiations with and approval by CMS.                                                                                  
                                                                                                                                
     This  enhanced DSH  funding approach  would enable  the                                                                    
     State  to help  address  a demonstrated  crisis in  the                                                                    
     provision  of adequate  and appropriate  hospital-level                                                                    
     care for Alaskans experiencing a mental health crisis.                                                                     
                                                                                                                                
     Without additional resources there  will continue to be                                                                    
     expensive uncompensated care  at medical facilities for                                                                    
     patients they hold, waiting for API admission.                                                                             
                                                                                                                                
     Medicaid Services                                                                                                          
     Health Care Medicaid Services                                                                                              
     H HSS  10 -  3-year Federal Funding  Paired with  GF in                                                                    
     DBH  to  Support   Hospital-based  Mental  Health  Care                                                                    
     (FY19-FY21) Offered by Representative Gara                                                                                 
                                                                                                                                
     In  recent years,  Alaska has  not claimed  all of  the                                                                    
     federal DSH  funding to which  it is entitled due  to a                                                                    
     lack of  matching funds and federal  receipt authority.                                                                    
     With   a  commitment   of   $1.9   million  in   Alaska                                                                    
     Comprehensive   Health   Insurance  (ACHI)   funds   in                                                                    
     SFY2019,  the  State  would  be  able  to  leverage  an                                                                    
     additional $1.9 million of federal DSH funds.                                                                              
                                                                                                                                
     Currently,  there   is  a  major  gap   in  the  Alaska                                                                    
     Psychiatric   Institute's   (API)  ability   to   admit                                                                    
     patients,  due  to its  limited  capacity  of 80  beds.                                                                    
     Although  API is  claiming all  of the  DSH funding  to                                                                    
     which   it,  as   Alaska's   only  public   psychiatric                                                                    
     hospital, is currently entitled,  the State could claim                                                                    
     a  portion of  its unused  DSH funds  to support  other                                                                    
     hospitals  and  community  behavioral  health  programs                                                                    
     that are  especially impacted by the  lack of treatment                                                                    
     beds at API.                                                                                                               
                                                                                                                                
     Specifically, these additional  funds would enhance the                                                                    
     capacities  of the  State's  three existing  DSH-funded                                                                    
     hospital-based  mental  health treatment  programs  and                                                                    
     provide  new financial  support to  approximately three                                                                    
     other hospitals impacted by the  lack of treatment beds                                                                    
     at API.                                                                                                                    
                                                                                                                                
     These hospitals  have been working hard  to provide and                                                                    
     maintain safe environments for  patients who are court-                                                                    
     ordered to psychiatric evaluation  and treatment at API                                                                    
     (or  one of  the  other two  Designated Evaluation  and                                                                    
     Treatment hospitals). Many of  these patients are being                                                                    
     held for days and  sometimes longer in their hospitals'                                                                    
     emergency departments awaiting transfer to API.                                                                            
                                                                                                                                
     Services  provided would  depend on  what the  hospital                                                                    
     and,  in some  cases,  the  local community  behavioral                                                                    
     health  center  determines  makes the  most  sense  for                                                                    
     their   hospital/community,   ranging  from   physician                                                                    
     (including  psychiatric)  and   social  work  services,                                                                    
     additional security guards and  substance use or mental                                                                    
     health   services    (assessments,   evaluations),   to                                                                    
     discharge  planning and  converting emergency  rooms to                                                                    
     safe  rooms, etc.,  all geared  towards providing  more                                                                    
     appropriate   services  for   the   mentally  ill   and                                                                    
     relieving  the   stress  and  pressures   on  emergency                                                                    
     departments.                                                                                                               
                                                                                                                                
     While  two  other   existing  hospitals  have  approved                                                                    
     Certificates  of Need  to  expand  services to  provide                                                                    
     treatment  for   people  who  would  qualify   for  API                                                                    
     admission, these new services  will not be online until                                                                    
     early   2019  and   2020,   and   ultimately  are   not                                                                    
     anticipated  to meet  the existing  need. Further,  the                                                                    
     Department of  Health &  Social Services  has submitted                                                                    
     the  Section  1115  Behavioral Health  Medicaid  Waiver                                                                    
     application to  the Centers  for Medicare  and Medicaid                                                                    
     Services  (CMS)  which  will help  increase  access  to                                                                    
     community-based  behavioral  health  services.  Service                                                                    
     implementation  will take  multiple years  and although                                                                    
     it is  anticipated to begin  in 2020, it will  be based                                                                    
     on negotiations with and approval by CMS.                                                                                  
                                                                                                                                
     This  enhanced DSH  funding approach  would enable  the                                                                    
     State  to help  address  a demonstrated  crisis in  the                                                                    
     provision  of adequate  and appropriate  hospital-level                                                                    
     care for Alaskans experiencing a mental health crisis.                                                                     
                                                                                                                                
     Without additional resources there  will continue to be                                                                    
     expensive uncompensated care  at medical facilities for                                                                    
     patients they hold, waiting for API admission.                                                                             
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair Gara spoke to both  amendments. He explained that                                                                    
the  state   had  inadequate  capacity  at   API.  What  was                                                                    
recommended  to  be a  140-patient  unit  was an  80-patient                                                                    
unit.  Approximately 10  patients would  not be  able to  be                                                                    
served during  retrofits over  the following  1 year  to 1.5                                                                    
years. Alaska  Psychiatric Unit would be  a 70-patient unit.                                                                    
He added  that about  10-15 beds would  be used  by patients                                                                    
going through  the criminal justice system  - forensic beds.                                                                    
Accounting for  those beds, there would  be approximately 55                                                                    
beds  available to  patients.  He  indicated that  hospitals                                                                    
were ending  up housing psychiatric patients.  At the Mat-Su                                                                    
Regional  Medical  Center  over 18,000  patient  hours  were                                                                    
spent in emergency  rooms - mostly emergency  rooms and some                                                                    
in  other rooms.  He suggested  that  most of  the care  was                                                                    
uncompensated.  The patients  needed  care at  a place  like                                                                    
API.                                                                                                                            
                                                                                                                                
Vice-Chair Gara  continued that the  state had a  rebate for                                                                    
Alaska  Comprehensive Health  Insurance Association  (ACHIA)                                                                    
payments.  He  relayed that  $25  million  was rebated  from                                                                    
Premera and  $60 million came  from the  federal government.                                                                    
The state was matching $1.9  million in returned ACHIA funds                                                                    
with $1.9  million in  general funds for  3 years  to bridge                                                                    
between what the state currently had and a fix in 3 years.                                                                      
                                                                                                                                
Co-Chair Seaton  clarified that Vice-Chair Gara  was talking                                                                    
about  amendments H  HSS 1  and  H HSS  10. Vice-Chair  Gara                                                                    
confirmed he was discussing Amendment  H HSS 1 and H HSS 10.                                                                    
He corrected himself. He relayed  that the ACHIA funds would                                                                    
match federal  DSH funds.  Currently, API  was using  all of                                                                    
the federal DSH  funds it could in-house.  He explained that                                                                    
DSH  funds  could also  be  used  to help  hospitals  expand                                                                    
services, protect patients, and  protect workers. He relayed                                                                    
an example  where one of  the emergency room doctors  at the                                                                    
Mat-Su Regional Medical Center indicated  she had to protect                                                                    
her  stroke patients  from someone  having  a mental  health                                                                    
episode.  Funds   would  be  granted  to   rural  and  urban                                                                    
hospitals  to  try to  address  security  concerns and  help                                                                    
patients waiting  to be linked with  community services they                                                                    
needed. He  thought the unanticipated rebate  of ACHIA funds                                                                    
could be very helpful  in leveraging unleveraged federal DSH                                                                    
funds.                                                                                                                          
                                                                                                                                
2:02:39 PM                                                                                                                    
                                                                                                                                
Representative Tilton had some  questions for the department                                                                    
about the DSH funding. She  wanted to understand how the DSH                                                                    
funds came in  from the federal government.  She wondered if                                                                    
they came in as a lump  sum granted out or whether they were                                                                    
given to different hospitals based  on the amount of service                                                                    
they provided. She asked for clarification.                                                                                     
                                                                                                                                
Vice-Chair Gara was certain they  were not contingent on the                                                                    
amount of services the hospitals  provided because the state                                                                    
had $10 million and was  not giving those funds to hospitals                                                                    
currently.                                                                                                                      
                                                                                                                                
SHAWNDA   O'BRIEN,  ASSISTANT   COMMISSIONER,  FINANCE   AND                                                                    
MANAGEMENT  SERVICES,   DEPARTMENT  OF  HEALTH   AND  SOCIAL                                                                    
SERVICES, explained that the state  would receive the funds,                                                                    
similar to  how it received  other federal funds.  They were                                                                    
not awarded  in a  block grant  fashion. Instead,  the state                                                                    
would receive them  to distribute to the  hospitals based on                                                                    
the needs of the hospitals  and spending. The matching funds                                                                    
would allow  the department  to take in  more funds  than it                                                                    
currently received.                                                                                                             
                                                                                                                                
Representative Tilton asked if it  was a one-to-one match to                                                                    
receive  the  DSH  funds.  Ms.   O'Brien  responded  in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative Tilton asked if the  funds came in as a block                                                                    
grant to  the state. Ms.  O'Brien responded that it  was not                                                                    
received similar  to a  grant. It  was not  a set  amount of                                                                    
funds received and then dispersed.  It was received based on                                                                    
what the state spent or what was available to spend.                                                                            
                                                                                                                                
Representative Tilton  asked if  the information  about what                                                                    
was needed to be spent  came from the hospitals. Ms. O'Brien                                                                    
responded, "That's correct."                                                                                                    
                                                                                                                                
Representative Tilton clarified that  the hospitals sent the                                                                    
department information based on  the number of patients they                                                                    
treated that would  qualify under the program.  In turn, the                                                                    
department  would reimburse  the  hospital  through the  DSH                                                                    
funds. Ms.  O'Brien responded  that it  would be  similar to                                                                    
what  Representative Tilton  suggested. She  elaborated that                                                                    
things  such  as  uncompensated care  would  be  reimbursed.                                                                    
There were criteria  that would apply, although  she was not                                                                    
an expert on the subject.                                                                                                       
                                                                                                                                
Representative   Tilton  was   wondering   because  in   the                                                                    
amendment the legislature would  be getting $1.9 million for                                                                    
3 years.  She thought the  state had the ability  to receive                                                                    
$10  million. She  noted Vice-Chair  Gara had  mentioned API                                                                    
had reached  its capacity. She  asked if there was  a dollar                                                                    
amount that each hospital could receive.                                                                                        
                                                                                                                                
Ms. O'Brien believed the amount  being requested in matching                                                                    
funds to  the federal  funds was an  amount the  state could                                                                    
reasonable disperse  to certain  hospitals. There  were some                                                                    
capacity issues that could be  taken into consideration. The                                                                    
department would  not want  to have  matching funds  for the                                                                    
full $10 million that it was  not able to utilize. It was an                                                                    
amount  the department  thought was  reasonable for  what it                                                                    
needed to accomplish.                                                                                                           
                                                                                                                                
Representative Tilton commented that  it was based on usage.                                                                    
She was  wondering about the  3-year time period.  She asked                                                                    
if it  was because of  the way  it was distributed  based on                                                                    
need  and  usage.  Ms.  O'Brien  responded  that  it  was  a                                                                    
conversation  the   department  had  with  a   requestor  to                                                                    
determine  what was  reasonable, what  the department  could                                                                    
accomplish,   and   what   the  needs   might   be   without                                                                    
overestimating costs.                                                                                                           
                                                                                                                                
2:07:06 PM                                                                                                                    
                                                                                                                                
Representative  Tilton asked  if it  would be  reasonable to                                                                    
ask for  a report  from the  department that  would indicate                                                                    
how much each hospital received,  and the number of patients                                                                    
the funds applied to. She  was hoping for better information                                                                    
in the future  regarding API. Ms. O'Brien  believed it would                                                                    
be possible to  generate such a report. She  was unclear how                                                                    
the department reported  the information currently. However,                                                                    
she  did not  see  any  reason why  something  could not  be                                                                    
prepared.                                                                                                                       
                                                                                                                                
Representative  Wilson  asked  about the  notion  of  3-year                                                                    
funding without  intent language.  They were dealing  with a                                                                    
1-year operating  budget. She thought the  request should be                                                                    
in  the capital  budget. Vice-Chair  Gara responded  that it                                                                    
was an "INK t - temporary increment.                                                                                            
                                                                                                                                
Representative  Wilson  understood  a  temporary  increment.                                                                    
However, in  the following  year, she  wondered if  there be                                                                    
language  regarding  2  additional  years.  Vice-Chair  Gara                                                                    
responded that  in the  following 2  years the  budget would                                                                    
include the  funds. He offered  that the governor  would not                                                                    
necessarily have to follow what  the legislature passed. The                                                                    
intention and how  it worked in the budget  previously, a 3-                                                                    
year project  through the operating  budget, showed up  as a                                                                    
temporary  increment.  The  numbers should  show  up  unless                                                                    
someone deleted them. Future policy makers could do so.                                                                         
                                                                                                                                
Representative Wilson  was not  aware the  legislature could                                                                    
designate  the  number of  years.  She  asked if  the  funds                                                                    
helped API because after 3  years they would have more rooms                                                                    
available. She  asked for  clarification and  commented that                                                                    
it  sounded like  none of  the money  would go  to API.  Ms.                                                                    
O'Brien  responded that  Representative Wilson  was correct.                                                                    
The  department  believed  that  in  the  following  several                                                                    
years, through  other ongoing efforts,  it would be  able to                                                                    
address many of the issues  it faced presently including not                                                                    
having enough beds or capacity.                                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being  NO OBJECTION, Amendment H  HSS 01 and H  HSS 10                                                                    
were adopted.                                                                                                                   
                                                                                                                                
2:10:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara MOVED  to  ADOPT Amendment  GA  4 (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Children's Services                                                                                                        
     Children's Services Management                                                                                             
     GA 4 2/14 Establish Children's Services Safety Officer                                                                     
                                                                                                                                
     Recently the  Office of  Children's Services  (OCS) has                                                                    
     received  an  increase  in  threats  to  employees  and                                                                    
     Occupational  Safety and  Health Administration  (OSHA)                                                                    
     complaints. OCS  Management and Human Resources  do all                                                                    
     they can  to address obvious safety  issues and respond                                                                    
     to  OSHA complaints  as they  arise, but  neither group                                                                    
     has the  resources to proactively address  the issue or                                                                    
     the requisite expertise to  implement best practices. A                                                                    
     dedicated, full-time  safety officer  who is  an expert                                                                    
     in workplace  safety can help us  eliminate or mitigate                                                                    
     risks in a  cost-effective manner. He or  she can: Work                                                                    
     with each of OCS'  approximately 25 office locations to                                                                    
     ensure safety plans  are up to date and  that all staff                                                                    
     are aware  of what to do  in the event of  an emergency                                                                    
     in each specific office.                                                                                                   
                                                                                                                                
     Develop  and deliver  initial hire  safety training  to                                                                    
     all new employees.  Provide periodic refresher training                                                                    
     to existing employees.                                                                                                     
                                                                                                                                
     Investigate formal  and informal safety  complaints and                                                                    
     represent the division in administrative proceedings.                                                                      
                                                                                                                                
     Provide  litigation support  to the  Department of  Law                                                                    
     when OCS is sued for workplace safety issues.                                                                              
                                                                                                                                
     Participate  in  Labor-Management  Committee  meetings.                                                                    
     These  meetings  give  front-line employees  and  their                                                                    
     union  representatives a  voice in  OCS safety  issues.                                                                    
     Giving them  such a voice  can help  management address                                                                    
     safety issues  at the lowest  (and lowest  cost) levels                                                                    
     possible. They  also give employees outlets  for safety                                                                    
     concerns,  which  can  result in  fewer  costly  formal                                                                    
     complaints to agencies like OSHA and AKOSH.                                                                                
                                                                                                                                
     Identify cost  effective solutions to  safety problems.                                                                    
     For   instance,   inexpensive   technology   and   free                                                                    
     administrative  fixes can  often solve  safety problems                                                                    
     that  would  otherwise necessitate  building  remodels.                                                                    
     Experienced safety  professionals can  readily identify                                                                    
     such low or no-cost fixes.                                                                                                 
                                                                                                                                
     Partner  with outside  agencies to  ensure our  workers                                                                    
     have adequate  resources in the most  remote locations.                                                                    
     For instance,  the position can  liaise with  local law                                                                    
     enforcement  agencies  and  Tribes  to  make  sure  our                                                                    
     workers  have adequate  resources and  safety plans  in                                                                    
     rural communities  with no SOA offices.  Currently, our                                                                    
     employees  may be  stuck with  nowhere to  seek shelter                                                                    
     and safety in  the event of a violent threat  in such a                                                                    
     village.                                                                                                                   
                                                                                                                                
     Coordinate  with other  SOA  Departments  who may  have                                                                    
     resources in  remote locations such as  office space to                                                                    
     sleep  in or  vehicles to  borrow. One  of our  current                                                                    
     problems  involves  employees  being stuck  outside  in                                                                    
     sub-zero   temperatures   when   rides   from   non-SOA                                                                    
     personnel fall through.                                                                                                    
                                                                                                                                
     Coordinate    with    Human   Resources    to    ensure                                                                    
     accountability with regard to workplace safety.                                                                            
                                                                                                                                
     Be a  culture-change champion. It's all  too often that                                                                    
     we hear senior  personnel say "this is  what you signed                                                                    
     up for" when  confronted by an employee  about a safety                                                                    
     threat.  This  is  likely  the  biggest  barrier  to  a                                                                    
     culture of  workplace safety at  OCS. This  position is                                                                    
     our most effective option to tear down that barrier.                                                                       
                                                                                                                                
     FY2019 Governor: $11,710.5                                                                                                 
     FY2019 Total Amendments: $158.6                                                                                            
     FY2019 Total: $11,869.1                                                                                                    
                                                                                                                                
Representative Tilton OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Tilton thought  Vice-Chair Gara had mentioned                                                                    
earlier that  the amendment had  been passed  unanimously in                                                                    
subcommittee, and it  had not. She reported that  it was not                                                                    
passed unanimously.                                                                                                             
                                                                                                                                
Vice-Chair   Gara   apologized   for  being   incorrect   on                                                                    
Representative Tilton's  point. He explained  the amendment.                                                                    
He  reported that  there had  been an  increasing number  of                                                                    
threats to staff at the  Office of Children's Services (OCS)                                                                    
including murder  and arson threats.  The funding  would pay                                                                    
for one statewide  safety officer to work with  OCS staff to                                                                    
help them  protect themselves and  to improve safety  in the                                                                    
workplace.                                                                                                                      
                                                                                                                                
Representative Tilton  recalled the  subcommittee addressing                                                                    
this amendment  and thought the  position could  be absorbed                                                                    
within  the department.  Vice-Chair Gara  responded that  in                                                                    
the last  5 years  there was an  increasing number  of youth                                                                    
that were in  OCS that paralleled a  federal trend. Indiana,                                                                    
for example, had its largest  number of youth in foster care                                                                    
which  was  attributed  to  the  national  heroin  epidemic.                                                                    
Alaska had  its largest number  of youth in foster  care. He                                                                    
argued that  the Office of  Childrens Services had  too high                                                                    
of a  caseload to  delete a  case worker to  pay for  an OCS                                                                    
safety  officer. He  suggested the  office would  be trading                                                                    
from one inadequate area to another inadequate area.                                                                            
                                                                                                                                
Representative Wilson  did not believe anyone  was asking to                                                                    
delete a  position. Her understanding  was that  each office                                                                    
was  very different  and that  there were  certain kinds  of                                                                    
protocols within  the office.  She argued  that she  was not                                                                    
looking to delete or add a position.                                                                                            
                                                                                                                                
Vice-Chair  Gara relayed  that there  would be  an amendment                                                                    
for  2 specific  officers -  contract officers  at different                                                                    
facilities  that  did  not  have  protective  officers.  The                                                                    
person in  the position  would work  on best  practices with                                                                    
the  agency to  protect  all workers  across  the state.  He                                                                    
relayed  that OCS  had made  a compelling  case for  the one                                                                    
officer position to  work with all case  workers. The person                                                                    
would address  practices going  into violent  situations and                                                                    
would  also  address  some Occupational  Safety  and  Health                                                                    
Administration (OSHA) complaints against  OCS because of the                                                                    
dangers being faced by workers.                                                                                                 
                                                                                                                                
Co-Chair Seaton  asked if Representative  Tilton's objection                                                                    
was  to the  position or  the additional  cost. He  asked if                                                                    
someone from  the department was  available to  comment. Ms.                                                                    
O'Brien  responded  that  the department  had  explored  the                                                                    
possibility  of using  an  existing  position internally  to                                                                    
satisfy  the need  the department  felt  was necessary.  She                                                                    
continued  that due  to the  serious nature  of some  of the                                                                    
complaints and a current law  suit the department faced, she                                                                    
felt  it  was  necessary  to   request  a  new  position  to                                                                    
specifically address the issue across the division.                                                                             
                                                                                                                                
2:15:59 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked if the department  had training                                                                    
currently for workers about what  to expect and when to call                                                                    
on  public   safety  for  assistance   when  going   into  a                                                                    
potentially dangerous  situation. She asked  what additional                                                                    
training would be offered with an additional position.                                                                          
                                                                                                                                
Ms. O'Brien  replied that the department  received penalties                                                                    
from  the  Occupational  Safety  and  Health  Administration                                                                    
(OSHA).  The Occupational  Safety and  Health Administration                                                                    
provided  recommendations and  the department  paid a  fine.                                                                    
The specific  position would provide more  in-depth training                                                                    
than the  ordinary training provided.  The specific  need in                                                                    
OCS was due to a rising  increase in assaults to staff. They                                                                    
were not necessarily taking place  in people's homes or away                                                                    
from  the office;  they were  occurring inside  the offices.                                                                    
The person  in the position  would be dedicated  to focusing                                                                    
on  systemwide issues  and working  more closely  with staff                                                                    
and supervisors  in a capacity the  department currently did                                                                    
not have.                                                                                                                       
                                                                                                                                
Representative Tilton MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Guttenberg, Kawasaki,  Ortiz, Gara, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson                                                                                       
                                                                                                                                
The MOTION to adopt Amendment GA 4 PASSED (7/4).                                                                                
                                                                                                                                
Vice-Chair  Gara MOVED  to  ADOPT Amendment  GA  5 (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Children's Services                                                                                                        
     Front Line Social Workers                                                                                                  
     GA 5 2/14 Security Guards for Kenai and Fairbanks                                                                          
                                                                                                                                
     Security  guards  are  needed at  Kenai  and  Fairbanks                                                                    
     field offices  to respond  to child  protection workers                                                                    
     concern for  safety. Recent  threats and  incidents has                                                                    
     led to  a growing concern for  workers safety. Security                                                                    
     guards  will   be  used  to  prevent   crime,  maintain                                                                    
     security,  assist  clients   and  employees,  and  lead                                                                    
     safety meetings and drills.                                                                                                
                                                                                                                                
     Currently, the Office  of Children's Services maintains                                                                    
     security  guards  in  Anchorage, Wasilla,  and  Juneau.                                                                    
     There  are no  guards in  Fairbanks and  Kenai at  this                                                                    
     time.                                                                                                                      
                                                                                                                                
     The Office of Children's  Services has been involved in                                                                    
     an  active Occupational  Safety and  Health Association                                                                    
     (OSHA) complaint as it relates  to worker safety in one                                                                    
     of  these  offices.  These  efforts  for  the  security                                                                    
     guards are a part of  our efforts to better comply with                                                                    
     OSHA standards for worker safety.                                                                                          
                                                                                                                                
     FY2019 Governor: $62,834.6                                                                                                 
     FY2019 Total Amendments: $201.0                                                                                            
     FY2019 Total: $63,035.6                                                                                                    
                                                                                                                                
Representative Tilton OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair Gara  indicated that the amendment  came with the                                                                    
governor's  amended  budget.  There  were  2  major  offices                                                                    
without security guards, Fairbanks  and Kenai. The amendment                                                                    
would add  contract security guards to  both locations where                                                                    
there had been  recent threats. He remarked  that there were                                                                    
some  smaller rural  offices that  would  not have  security                                                                    
guards.                                                                                                                         
                                                                                                                                
Representative  Tilton spoke  to her  objection. She  agreed                                                                    
that  security  was  important  to  everyone.  However,  she                                                                    
wondered   if  the   department   had   looked  into   other                                                                    
opportunities  such  as a  contract  in  which security  was                                                                    
shared  for buildings.  She suggested  the department  could                                                                    
absorb the cost.                                                                                                                
                                                                                                                                
Representative Wilson  asked whether the positions  would be                                                                    
full time or part time.                                                                                                         
                                                                                                                                
2:20:42 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  believed the  positions were  full-time. He                                                                    
asked  for confirmation  from  the  department. Ms.  O'Brien                                                                    
responded  that  the services  would  be  offered through  a                                                                    
contract  and the  need would  be  full-time. The  positions                                                                    
would require a  person to be present in  the offices during                                                                    
business hours.                                                                                                                 
                                                                                                                                
Co-Chair Seaton clarified that no  new state employees would                                                                    
be brought online.                                                                                                              
                                                                                                                                
Representative  Wilson  was  concerned  because  the  report                                                                    
indicated  part-time rather  than full-time.  She asked  how                                                                    
much  the  state  paid  the security  guards  in  the  state                                                                    
building  in Fairbanks.  Ms. O'Brien  was not  aware of  the                                                                    
amount.                                                                                                                         
                                                                                                                                
Representative  Wilson was  curious to  know. She  was aware                                                                    
there were security guards hired  in the state building. She                                                                    
thought $100,000 per person was high.                                                                                           
                                                                                                                                
Representative Tilton MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Guttenberg, Kawasaki, Ortiz,  Gara, Grenn, Foster,                                                                    
Seaton                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson                                                                                       
                                                                                                                                
The MOTION to adopt Amendment GA 5 PASSED (7/4).                                                                                
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 2  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Assistance                                                                                                          
     Senior Benefits Payment Program                                                                                            
     H HSS 2 - Defer Funding for the Senior Benefits                                                                            
     Payment Program to the Fiscal Note for HB 236/SB 170                                                                       
     Offered by Representative Gara                                                                                             
                                                                                                                                
     Funding to extend the Senior Benefits Payment Program                                                                      
     (estimated at $19.986.1 UGF) is expected to be                                                                             
     provided  but  requires  passage   of  HB  236/SB  170.                                                                    
     Therefore,  funding is  deferred  to  the fiscal  notes                                                                    
     associated with the legislation.  These funds cannot be                                                                    
     provided  in the  operating budget  until a  new Senior                                                                    
     Benefits bill  has passed both  houses, as  the current                                                                    
     statute expires  this year. A reauthorization  bill has                                                                    
     already passed the House.                                                                                                  
                                                                                                                                
Representative Tilton OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair Gara  reviewed the  amendment. He  explained that                                                                    
the  House  already   passed  senior  benefits  legislation.                                                                    
Current  law expired  on June  30,  2018. He  had hoped  the                                                                    
Senate  would pass  the same  legislation. However,  without                                                                    
the  passage of  legislation  there would  not  be a  senior                                                                    
benefits program the following  year. If legislation passed,                                                                    
the funds would be provided with  the bill and with a fiscal                                                                    
note that  would go into  the budget. The  legislature could                                                                    
not spend the funding without an appropriation.                                                                                 
                                                                                                                                
Representative Tilton WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, H HSS 2 was ADOPTED.                                                                                  
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 3  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Assistance                                                                                                          
     Senior Benefits Payment Program                                                                                            
     H HSS  3 - Extend  the Senior Benefits  Payment Program                                                                    
     Offered by Representative Gara                                                                                             
                                                                                                                                
     Wordage: It is  the intent of the  legislature to fully                                                                    
     fund   the  Senior   Benefits   Payment  Program   upon                                                                    
     reauthorization during the 2018 legislative session.                                                                       
                                                                                                                                
     Explanation:   Extend  the   Senior  Benefits   Payment                                                                    
     Program                                                                                                                    
                                                                                                                                
There being NO OBJECTION, H HSS 3 was ADOPTED.                                                                                  
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 4  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Assistance                                                                                                          
     Energy Assistance Program                                                                                                  
     H HSS 4 - Delete Excess Federal Receipt Authority                                                                          
     Offered by Representative Gara                                                                                             
                                                                                                                                
     Delete excess receipt authority.                                                                                           
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair  Gara relayed  that another  amendment asked  the                                                                    
department if it  had any empty authority funds  that it had                                                                    
received from  the federal  government in  the past.  He had                                                                    
identified excess  federal receipt  authority in  the amount                                                                    
of  $2.5 million  which  sat  in the  budget  but was  never                                                                    
received by the  state. The department agreed  that it would                                                                    
not receive the funds. The amendment deleted $2.5 million                                                                       
of empty authority in the budget.                                                                                               
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H HSS 4 was ADOPTED.                                                                        
                                                                                                                                
2:25:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 5  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Assistance                                                                                                          
     Public Assistance Field Services                                                                                           
     H  HSS  5  -  Address   Backlog  of  Public  Assistance                                                                    
     Applications  and Unmanageable  Caseloads (FY  19 -  FY                                                                    
     21)                                                                                                                        
     Offered by Representative Gara                                                                                             
                                                                                                                                
     This amendment  replaces the Governor's amendment  GA 6                                                                    
     2/14  to  add  funding  and   41  PFT  to  address  the                                                                    
     department's  application backlog,  which has  steadily                                                                    
     increased   since  FY   14.  It   now  exceeds   20,000                                                                    
     applications from Alaskans  for Public Assistance. This                                                                    
     temporary increment  (FY 19  - FY  21) will  remove the                                                                    
     funding from  the base  budget in FY  22 and  allow the                                                                    
     legislature  to  evaluate   the  effectiveness  of  the                                                                    
     increment.                                                                                                                 
                                                                                                                                
     Testimony indicates  new staff require close  to a year                                                                    
     of  training  to   independently  process  applications                                                                    
     properly.  The  current  effort to  use  funds  to  pay                                                                    
     overtime  to  relatively  low-paid state  employees  is                                                                    
     leading  to  a 40  percent  burn-out  rate for  benefit                                                                    
     workers within the first year, which wastes state                                                                          
     money.                                                                                                                     
                                                                                                                                
Representative Tilton OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair Gara  relayed that Amendment  H HSS 5  replaced a                                                                    
governor's  amended  proposal   in  the  governor's  amended                                                                    
budget. There was a substantial  backlog in Public Benefits.                                                                    
People were  waiting an average  of 40 days for  food stamps                                                                    
from the  time they  submitted their application.  There was                                                                    
an average  wait time  of 213 day  to receive  Medicaid. The                                                                    
newer applications were being  processed faster. Some of the                                                                    
older  applications were  more than  3 years  old. The  long                                                                    
waits were due, in part, to  a computer system issue, and in                                                                    
part,  to  a  staffing  issue. The  department  tried  using                                                                    
position funds for overtime pay  for low paid workers making                                                                    
Rage  12-14  salaries.  The   department  found  that  these                                                                    
workers burned out at exceptional  rates. Roughly 35 percent                                                                    
of these workers burned out within 1 year of employment.                                                                        
                                                                                                                                
Vice-Chair  Gara continued  that the  department warned  the                                                                    
legislature  in the  previous year  of the  backlog and  the                                                                    
need to  address it. The  governor had submitted  a proposal                                                                    
for about $2.2 million in  state funds to match $2.2 million                                                                    
in federal funds  to deal with the backlog  into the future.                                                                    
The subcommittee  felt that  unless the  recession continued                                                                    
the department could  clear the backlog in 3  years based on                                                                    
the  testimony  it  heard.   The  subcommittee  reduced  the                                                                    
governor's proposal to place the  funding into the permanent                                                                    
base  and to  put it  in a  3-year temporary  increment. The                                                                    
department  was hopeful  it could  reduce and  eliminate the                                                                    
bulk of the  backlog within 3 years.  Currently, over 15,000                                                                    
applications  for  food  stamps, medical  care,  or  housing                                                                    
benefits needed  to be processed.  He noted that  the Public                                                                    
Benefits  section received  about  $6 million  less than  it                                                                    
received in 2015. The division  was not adequately funded to                                                                    
be able to process the  backlogged applications for food and                                                                    
health care benefits.                                                                                                           
                                                                                                                                
2:28:05 PM                                                                                                                    
                                                                                                                                
Representative Tilton  relayed that  the Division  of Public                                                                    
Assistance  was authorized  287  eligibility technicians  in                                                                    
FY 18. Of  those technicians, 89  positions had  been vacant                                                                    
over  the   prior  12  months.  Currently,   there  were  44                                                                    
positions vacant as  of January 15, 2018. She  had been told                                                                    
by the department that there  were 24 positions available in                                                                    
the subcommittee  process. The division had  also been given                                                                    
$500,000  to address  their backlog  in FY  18. They  worked                                                                    
8,874 hours of overtime that  cost $348,000. The backlog was                                                                    
declining before the  use of overtime and  was continuing to                                                                    
decline  with  the status  quo.  She  reported that  of  the                                                                    
positions  they had  advertised, they  only had  2 positions                                                                    
advertised  on Workplace  Alaska and  most of  the positions                                                                    
had been vacant for over 6 months.                                                                                              
                                                                                                                                
Representative Tilton  suggested that when the  division did                                                                    
its  training it  was done  on a  quarterly basis  and could                                                                    
take  up to  a  year  to fully  train  a person.  Statistics                                                                    
showed that the  number of people applying  for benefits was                                                                    
starting to  decline. She felt  there was really no  plan in                                                                    
place to  clear the backlog. She  wanted to see a  plan. The                                                                    
money  had  been  put  forward  without  having  a  plan  or                                                                    
reducing  the backlog.  She thought  it was  like doing  the                                                                    
same  thing  over and  over  again  and expecting  different                                                                    
results.                                                                                                                        
                                                                                                                                
Vice-Chair  Gara responded  that  the  department asked  for                                                                    
transfer authority of  $500,000 in the prior  year that they                                                                    
were not  able to use.  He relayed  that the reason  for the                                                                    
vacant positions  was because workers were  burning out. The                                                                    
number  of  Medicaid  applications  was  going  up  and  the                                                                    
backlog was currently  over 15,000. He reported  that in the                                                                    
prior year  the number was  19,000 and the year  before that                                                                    
was 17,000. He  argued that until there  were enough people,                                                                    
the  3-year increment  would help  get people  the food  and                                                                    
health care they needed.                                                                                                        
                                                                                                                                
Representative Wilson asked how much  of the backlog was due                                                                    
to  applications processed  yearly. She  wondered if  it was                                                                    
the renewal process  or new applications that  the state was                                                                    
behind in processing.                                                                                                           
                                                                                                                                
Vice-Chair Gara  answered that there  was a backlog  in both                                                                    
renewal  and new  applications. It  took about  40 days  for                                                                    
food  stamps   or  the  Supplemental   Nutrition  Assistance                                                                    
Program   (SNAP)  applications   to  be   processed.  Income                                                                    
eligibility verification  had to be completed.  New Medicaid                                                                    
applications  took an  average  of about  231 days.  Someone                                                                    
that walked in with  a perfectly completed application would                                                                    
get  their  application  processed  timelier.  However,  the                                                                    
backlog was  killing the department and  keeping people from                                                                    
receiving  benefits. The  renewal backlog  for Medicaid  was                                                                    
about 65  days. For  new and existing  Medicaid applications                                                                    
the  timeframe was  about  231 days.  He  reported that  the                                                                    
renewal applications for  SNAP took about 43.4  days and the                                                                    
existing  and  new  applications  took about  38.3  days  to                                                                    
process. He  thought an  impact could  be made  with renewal                                                                    
every  2 years.  However,  there might  be complaints  about                                                                    
people receiving benefits  from two years prior  who were no                                                                    
longer eligible to receive them.                                                                                                
                                                                                                                                
2:34:04 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked if applications for  the Senior                                                                    
Benefit Program contributed to  the backlog. Vice-Chair Gara                                                                    
responded that  the Senior Benefit  Program was not  part of                                                                    
the  backlog.   The  backlog   consisted  of   Adult  Public                                                                    
Assistance, Medicaid, Adult Temporary Assistance, and SNAP.                                                                     
                                                                                                                                
Co-Chair Seaton asked if the  Senior Benefits Program had an                                                                    
asset test and  an income test. He asked  if Snap, Medicaid,                                                                    
and  others had  both  an  asset test  and  an income  test.                                                                    
Vice-Chair Gara responded that Senior  Benefits did not have                                                                    
an asset  test. He was not  sure if the others  had an asset                                                                    
test.                                                                                                                           
                                                                                                                                
Representative  Wilson  was  trying to  figure  out  whether                                                                    
things  being   more  computerized  was  the   problem.  The                                                                    
applicant  had to  provide proof.  She  wondered about  time                                                                    
saving  measures   with  a  computerized   application.  She                                                                    
wondered if the computer problem had been solved.                                                                               
                                                                                                                                
Co-Chair  Seaton commented  that the  committee was  getting                                                                    
into the weeds regarding how the agency worked.                                                                                 
                                                                                                                                
Representative Wilson  agreed but the  issue had to  do with                                                                    
hiring 41  new people. She  thought if the real  problem had                                                                    
to do  with the computer  system having an issue,  it should                                                                    
be  addressed.   She  questioned  being  able   to  hire  an                                                                    
additional  41  people when  40  positions  stood open.  She                                                                    
suggested  the  state would  be  looking  to hire  about  80                                                                    
people. She  wondered how adding more  positions would solve                                                                    
the  problem.   Co-Chair  Seaton  relayed  that   it  was  a                                                                    
governor's  amendment that  was  revised to  be a  temporary                                                                    
allocation rather than part of the base.                                                                                        
                                                                                                                                
Ms. O'Brien  asked if  Representative Wilson's  question was                                                                    
whether the department could  process applications faster or                                                                    
more efficiently  through a computerized system  rather than                                                                    
through hard copy  applications. Representative Wilson noted                                                                    
there had been a comment  made about a computer problem that                                                                    
started the problems.  If there was a  computer problem, had                                                                    
it been solved.                                                                                                                 
                                                                                                                                
Ms.  O'Brien  responded  that  several  different  types  of                                                                    
programs  were  being   addressed  through  the  application                                                                    
process. The  Medicaid application,  some of which  could be                                                                    
submitted electronically  through the  federally facilitated                                                                    
market  place, and  the  applications for  the  rest of  the                                                                    
programs could  be received  in paper  form. Medicaid  had a                                                                    
different  eligibility criterion  depending on  the type  of                                                                    
Medicaid a person  was applying or eligible  for. The amount                                                                    
of work that went into  determining eligibility did not only                                                                    
require looking  at what information was  received, but also                                                                    
required   verification   of   its  accuracy.   There   were                                                                    
interviews  that   the  division   employees  set   up  with                                                                    
applicants.  Often times  applicants had  to meet  in person                                                                    
with  the  eligibility  workers.   New  workers  were  under                                                                    
supervision  with their  work being  verified and  validated                                                                    
outside the process in addition  to the regular ongoing day-                                                                    
to-day  activities. The  Medicaid computer  system, Alaska's                                                                    
Resource  for Integrated  Eligibility Services  (ARIES), was                                                                    
currently functional. She reported  some difficulties in the                                                                    
implementation of the system.  The department employees were                                                                    
working out  of 2 separate  systems including ARIES  and the                                                                    
Eligibility  Information System  (EIS) to  manage the  other                                                                    
programs.   Until  the   department  was   able  to   finish                                                                    
developing the system,  which was currently in  the midst of                                                                    
a  procurement process,  the  department  would continue  to                                                                    
work out  of 2  systems. It  was causing  some of  the extra                                                                    
workload for staff.                                                                                                             
                                                                                                                                
Representative Tilton  understood that  some of  the backlog                                                                    
was for  new applications, but  for the most part  they were                                                                    
processed  within  about  7  days  as long  as  all  of  the                                                                    
requirements were met.  She thought some of  the backlog had                                                                    
to do  with incomplete applications.  She asked how  much of                                                                    
the backlog fell into that category.                                                                                            
                                                                                                                                
Ms. O'Brien  thought the director  of Public  Assistance was                                                                    
working on the data. She  responded that about 54 percent of                                                                    
applications received  were rejected for eligibility  of the                                                                    
benefit. In addition to receiving  the applications, not all                                                                    
of the applicants ended up being recipients.                                                                                    
                                                                                                                                
2:40:44 PM                                                                                                                    
                                                                                                                                
Representative  Tilton asked  about the  number of  Alaskans                                                                    
receiving  Public Assistance.  She thought  the subcommittee                                                                    
was  told  that the  numbers  had  decreased. She  had  some                                                                    
statistics  showing the  number of  people receiving  Public                                                                    
Assistance  in October  2017 was  225,134. In  December 2017                                                                    
the number decreased to 223,074,  a decrease of 2,060 people                                                                    
using Medicaid.                                                                                                                 
                                                                                                                                
Ms.  O'Brien  responded  that  sometimes  the  point-in-time                                                                    
information  was deceiving.  She  relayed  that the  numbers                                                                    
would change depending  on where the department  was at with                                                                    
applications. The  numbers would change due  to the backlog.                                                                    
Retroactive  eligibility  would   change  the  numbers.  She                                                                    
thought that if Representative  Tilton looked at the numbers                                                                    
for  December  in the  present  day,  they might  look  much                                                                    
different  because of  the  retroactivity.  Also, she  noted                                                                    
that  point-in-time  information  did not  account  for  the                                                                    
duplication of eligible persons.  A person could be eligible                                                                    
and then  recertified and  considered eligible  again. Often                                                                    
times when  looking at  point-in-time information,  it might                                                                    
skew how  things were  viewed. She  thought looking  at past                                                                    
years or unduplicated information  provided a better picture                                                                    
of the total population being served.                                                                                           
                                                                                                                                
Vice-Chair  Gara  had  annual numbers  from  the  department                                                                    
indicated that  Medicaid numbers were going  up. The numbers                                                                    
rose in 2016,  2017, 2018, and was projected  to increase in                                                                    
2019. He noted  that when an economy was  in recession there                                                                    
would be  more people on Medicaid.  It was a measure  of how                                                                    
the  economy  was  doing.  In terms  of  the  positions  the                                                                    
governor proposed,  he suggested  that the case  loads would                                                                    
return to the levels the eligibility workers had in 2015.                                                                       
                                                                                                                                
Representative Tilton MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:  Kawasaki,   Ortiz,   Gara,  Guttenberg,   Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson, Grenn                                                                                
                                                                                                                                
The MOTION to adopt H HSS 5 PASSED (6/5).                                                                                       
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 6  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Assistance                                                                                                          
     Women, Infants and Children                                                                                                
     H HSS  6 - Delete  Excess Statutory  Designated Program                                                                    
     Receipt and Federal Authority                                                                                              
     Offered by Representative Gara                                                                                             
                                                                                                                                
     Delete excess receipt authority                                                                                            
                                                                                                                                
There being NO OBJECTION, Amendment H HHS 6 was ADOPTED.                                                                        
                                                                                                                                
2:44:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 7  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Departmental Support Services                                                                                              
     Commissioner's Office                                                                                                      
     H  HSS  7  -  Delete  Dept-level  Conditional  Language                                                                    
     Allowing    Transfer    of    $25    Million    Between                                                                    
     Appropriations  in  HB  285 Offered  by  Representative                                                                    
     Gara                                                                                                                       
                                                                                                                                
     Wordage:  Delete Department  Level Conditional  Wordage                                                                    
     in the Mental Health Budget HB 285:                                                                                        
     "At  the   discretion  of   the  Commissioner   of  the                                                                    
     Department  of  Health  and   Social  Services,  up  to                                                                    
     $25,000,000    may   be    transferred   between    all                                                                    
     appropriations in  the Department of Health  and Social                                                                    
     Services."                                                                                                                 
                                                                                                                                
     Explanation: This language is  already in the operating                                                                    
     budget,  HB  286.  To  avoid  any  confusion  that  the                                                                    
     Department  has  $50  million ($25  million  twice)  in                                                                    
     authority  to  transfer   between  appropriations,  the                                                                    
     subcommittee   recommends  deleting   this  duplicative                                                                    
     authority from the Mental Health Budget.                                                                                   
                                                                                                                                
Representative Tilton OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair   Gara  relayed   that  DHSS   was  the   largest                                                                    
department  in the  state. When  Sean Parnell  was governor,                                                                    
the legislature gave  $50 million to the  department to move                                                                    
between  the  divisions.  He explained  that  there  were  a                                                                    
number  of benefits  that people  were statutorily  entitled                                                                    
to. It was  unknown in any year how many  people would apply                                                                    
for any  one benefit. The  amendment deleted $25  million of                                                                    
the  transfer  authority  that  was  in  the  mental  health                                                                    
budget. He  thought the  intention was  that $25  million of                                                                    
transfer authority. It  showed up in both  the mental health                                                                    
budget and in the operating budget.                                                                                             
                                                                                                                                
Representative Tilton WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative Wilson  asked if  it had to  do with  the $17                                                                    
million  Vice-Chair  Gara  was  going  to  bring  up  in  an                                                                    
amendment.  Vice-Chair Gara  responded in  the negative.  He                                                                    
clarified  that the  intention of  the  subcommittee was  to                                                                    
retain  $25   million  of  transfer  authority   within  the                                                                    
operating  budget,  but not  an  additional  $25 million  of                                                                    
transfer  authority within  the  mental  health budget.  The                                                                    
portion in the mental health budget was being deleted.                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H HSS 7 was ADOPTED.                                                                        
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 8  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Departmental Support Services                                                                                              
     Commissioner's Office                                                                                                      
     H HSS 8 - Reduce Excess Receipt Authority                                                                                  
     Offered by Representative Gara                                                                                             
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     department review  fund sources in all  allocations and                                                                    
     reduce  excess receipt  authority where  the department                                                                    
     believes the collection of receipts is not achievable.                                                                     
                                                                                                                                
     Explanation: Reduce excess receipt authority.                                                                              
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair  Gara   read  the  amendment  (see   above).  The                                                                    
department  would  be working  on  their  review during  the                                                                    
interim.                                                                                                                        
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H HSS 8 was ADOPTED.                                                                        
                                                                                                                                
Vice-Chair Gara  MOVED to ADOPT  Amendment H HSS 9  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Medicaid Services                                                                                                          
     Behavioral Health Medicaid Services                                                                                        
     H HSS 9 - One-Time Funding for Study on Improving                                                                          
     Alaska's Capacity to Treat Defendants with Acute                                                                           
    Mental Health Needs Offered by Representative Gara                                                                          
                                                                                                                                
     Funds will match existing MHTAAR to conduct a study to                                                                     
     determine whether Alaska needs a forensic hospital or                                                                      
     facilities apart from API for forensic services.                                                                           
                                                                                                                                
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Vice-Chair  Gara   conveyed  that  the   amendment  involved                                                                    
matching  funds that  the CEO  of the  Alaska Mental  Health                                                                    
Trust  Authority was  recommending to  his board.  The money                                                                    
was  Mental  Health   Trust  Authority  Authorized  Receipts                                                                    
(MHTARR)  to  match general  fund  money  in the  amount  of                                                                    
$159,000.  The state  was not  adequately prepared  to treat                                                                    
people with  psychiatric conditions. The  Alaska Psychiatric                                                                    
Institute was  not large enough.  There was one  study being                                                                    
conducted about  how to expand  API. However, the  study did                                                                    
not  account for  the people  at API  that were  involved in                                                                    
criminal  issues  -  forensic  patients. The  study  in  the                                                                    
amendment would  look for  capacity outside  of API  to move                                                                    
the  forensic patients  separating them  from patients  that                                                                    
had not committed  crimes. The study would  also address the                                                                    
lack of spaces necessary for those needing services.                                                                            
                                                                                                                                
Co-Chair Seaton  invited Mr.  Teal to  the table  to explain                                                                    
the amendment further.                                                                                                          
                                                                                                                                
2:49:32 PM                                                                                                                    
                                                                                                                                
DAVID TEAL, DIRECTOR,  LEGISLATIVE FINANCE DIVISION, relayed                                                                    
that  the subcommittee  report contained  Amendment H  HSS 9                                                                    
which added  $159,000 of general  funds mental  health money                                                                    
to the medical services  appropriation. The intent of adding                                                                    
the  money was  to match  the $159,000  of GF  mental health                                                                    
money that  was already in  the appropriation to  complete a                                                                    
study. However,  the MHTARR money  in Medicaid  services was                                                                    
not  intended  for  a  study.  It  was  intended  for  other                                                                    
services. During  the subcommittee hearings, the  AMHTA CEO,                                                                    
Mike Abbott, testified  that he was supportive  of using the                                                                    
$159,000 for  the study and  expected the trustees  would be                                                                    
as  well.   He  continued  that  the   subcommittee  or  the                                                                    
legislature  was not  getting  out in  front  of the  board,                                                                    
rather, the board  would not be meeting  until after session                                                                    
was  adjourned.  They  could not  formally  agree  but  have                                                                    
informally noted  they supported the study.  His problem was                                                                    
that  as  a  change  was made  from  providing  services  to                                                                    
performing a  study, it meant  that both  allocations should                                                                    
be moved  from the Medicaid appropriation  to the behavioral                                                                    
health   appropriation    under   the    behavioral   health                                                                    
administration component. There was  not an amendment moving                                                                    
the money to  the proper appropriation. It could  be done in                                                                    
the  current amendment  or  in round  two  of the  amendment                                                                    
process.  Either way,  he opined  that the  money should  be                                                                    
placed  where it  belonged rather  than  where it  currently                                                                    
resided.                                                                                                                        
                                                                                                                                
2:51:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:52:18 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton asked  Mr. Teal to explain  what was needed.                                                                    
Mr. Teal suggested that assuming  the committee approved the                                                                    
amendment  and  wanted  the study  performed,  there  was  a                                                                    
concern  that the  money  was  in the  wrong  place. If  the                                                                    
committee  voted on  the amendment  and assuming  it passed,                                                                    
then the committee  could either make a  verbal amendment or                                                                    
wait for round two to introduce a more formal amendment.                                                                        
                                                                                                                                
Representative Wilson suggested $159,000  was already in the                                                                    
budget and was  intended to help people. If  the funding was                                                                    
removed and  inserted somewhere else, she  wondered if there                                                                    
would be  a hole in the  budget. Mr. Teal responded  that it                                                                    
would remove funding for other services.                                                                                        
                                                                                                                                
Vice-Chair Gara  noted that the  AMHTA CEO relayed  that the                                                                    
$159,000 was originally going to  be used for administration                                                                    
but felt  the funds  would better serve  their beneficiaries                                                                    
by using  them for  a study  on how  to address  people with                                                                    
psychiatric conditions.  The trust authority did  not expect                                                                    
a decline in services.                                                                                                          
                                                                                                                                
Co-Chair Seaton  asked if Vice-Chair  Gara wanted to  make a                                                                    
conceptual amendment  to Amendment H  HSS 9. He  thought the                                                                    
funds  should be  in behavioral  health administration.  Mr.                                                                    
Teal agreed. However, the current  amendment would only move                                                                    
$159,000 of  mental health monies.  Both fund  sources would                                                                    
need  to be  moved to  the behavioral  health appropriation.                                                                    
Co-Chair  Seaton  thought  the  amendment  was  complex.  He                                                                    
wanted  to have  the  amendment withdrawn  and offered  with                                                                    
correct language in the second round of amendments.                                                                             
                                                                                                                                
Vice-Chair Gara WITHDREW Amendment H HSS 9.                                                                                     
                                                                                                                                
Vice-Chair Gara relayed that Amendment  H HSS 10 had already                                                                    
been adopted  and there were  no other amendments.  He noted                                                                    
that the  only other  thing that was  not discussed  was the                                                                    
reduction of $17 million from  the budget. He explained that                                                                    
it was due to the  senior benefit funds, nearly $19 million,                                                                    
which had to  be adopted by the Senate in  a senior benefits                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative  Wilson  thanked   Vice-Chair  Gara  for  the                                                                    
information.                                                                                                                    
                                                                                                                                
Representative  Pruitt commented  that  the information  was                                                                    
important  to be  aware of.  Once $19  million was  added it                                                                    
would reflect an  increase to the budget.  He clarified that                                                                    
it would  be an  increase. Representative Wilson  added, "Of                                                                    
1.5 percent."                                                                                                                   
                                                                                                                                
Co-Chair  Seaton invited  Representative Grenn  to give  the                                                                    
subcommittee report for the Department of Law.                                                                                  
                                                                                                                                
^DEPARTMENT OF LAW                                                                                                            
                                                                                                                                
2:57:23 PM                                                                                                                    
                                                                                                                                
Representative Grenn read the subcommittee report:                                                                              
                                                                                                                                
     Subcommittee Meetings:                                                                                                     
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of   Law  held  three  meetings   with  the                                                                    
     Department  during  the  review  of the  FY  19  budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Law  recommends that  the House  Finance                                                                    
     Committee accept  the Governor's  FY 19  amended budget                                                                    
     for  the   Department  of  Law  and   the  subcommittee                                                                    
     amendment proposals.                                                                                                       
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $50,646.3                                                                                 
     Designated General Funds (DGF) $2,870.2                                                                                    
     Other Funds $31,309.2                                                                                                      
     Federal Funds $1,492.4                                                                                                     
     Total $86,318.1                                                                                                            
                                                                                                                                
     The Unrestricted  General Fund  difference from  the FY                                                                    
     15  Management Plan  to the  FY  19 House  Subcommittee                                                                    
     budget  recommendation is  a reduction  of $8,629.0,  a                                                                    
     14.6 percent decrease. From the  FY 18 Management Plan,                                                                    
     the House Subcommittee  recommendation reflects a total                                                                    
     increase in Unrestricted General  Funds of $1,486.7 a 3                                                                    
     percent increase.                                                                                                          
                                                                                                                                
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 501                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary 0                                                                                                                
     Total 501                                                                                                                  
                                                                                                                                
Representative Grenn  relayed that the subcommittee  made no                                                                    
statutory   recommendations    and   made    two   amendment                                                                    
recommendations. He concluded his  report for the Department                                                                    
of Law.                                                                                                                         
                                                                                                                                
2:59:01 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT Amendment H LAW 1 (copy                                                                     
on file):                                                                                                                       
                                                                                                                                
     Criminal Division                                                                                                          
     Third Judicial District: Anchorage                                                                                         
     H LAW 1  - Fully fund one prosecutor  position added in                                                                    
     FY 18 (Position was partially funded in FY 18)                                                                             
     Offered by Representative Grenn                                                                                            
                                                                                                                                
     Due to  budget cuts,  the Department of  Law's Criminal                                                                    
     division  has  had  a decreased  ability  to  prosecute                                                                    
     cases. There  was an effort  to add two  prosecutors in                                                                    
     FY 18,  this addition  adds the  funds needed  to fully                                                                    
     support  the  addition  of   two  prosecutors  and  the                                                                    
     support staff needed for the criminal division to                                                                          
     increase its ability to effectively prosecute more                                                                         
     cases.                                                                                                                     
                                                                                                                                
Representative Pruitt OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Grenn read the amendment (see above).                                                                            
                                                                                                                                
Representative  Pruitt wanted  to  know  the initial  change                                                                    
from the Governor's  Amended budget to the  FY 18 management                                                                    
plan regarding the criminal division and the prosecutors.                                                                       
                                                                                                                                
Representative Grenn  called on  the department  to testify.                                                                    
He thought  Representative Pruitt's question had  to do with                                                                    
the  safety  action plan  that  the  governor was  proposing                                                                    
within the Department of Law.                                                                                                   
                                                                                                                                
DAN SPENCER,  DIRECTOR, ADMINISTRATIVE  SERVICES, DEPARTMENT                                                                    
OF  LAW,   asked  Representative   Pruitt  to   clarify  his                                                                    
question.                                                                                                                       
                                                                                                                                
Representative Pruitt repeated his  question. He thought the                                                                    
intent was to increase the  number of prosecutors and staff.                                                                    
He asked  about the difference between  the budget versions.                                                                    
He wondered about the $81,000 and its impact.                                                                                   
                                                                                                                                
Mr. Spencer  provided some  background information  from the                                                                    
budget  process  in  the  prior   year.  The  House  Finance                                                                    
Committee  adopted  an  increase   of  $325,000  to  fund  2                                                                    
additional   prosecutors.   It   did  not   add   additional                                                                    
positions.  The  conference  committee  reduced  the  amount                                                                    
under  the assumption  that the  department  could not  fill                                                                    
both positions  for the entire  year which was  correct. The                                                                    
amendment would  restore the  funding that  had been  cut by                                                                    
the  conference   committee  in   the  previous   year.  The                                                                    
department was  using existing positions,  one of  which had                                                                    
already  been filled.  The department  was currently  in the                                                                    
process  of  filling  the second  position  which  would  be                                                                    
filled and fully funding through FY 19.                                                                                         
                                                                                                                                
Representative  Wilson asked  what the  department did  with                                                                    
the extra money. It sounded  like the department had funding                                                                    
for  1.5 people.  Mr. Spencer  indicated the  department was                                                                    
trying to hire the position currently.                                                                                          
                                                                                                                                
Representative  Wilson asked  about the  short funding.  She                                                                    
suggested  the department  started with  $325,000 which  was                                                                    
reduced  by  $81,000. The  department  was  asking that  the                                                                    
$81,000 be restored. Mr. Spencer  responded that the funding                                                                    
was given in FY 18.  The funding being requested would apply                                                                    
in FY 19.                                                                                                                       
                                                                                                                                
Representative Wilson suggested two  positions were added in                                                                    
the prior year but only one  of them was filled. Mr. Spencer                                                                    
relayed  that no  positions were  added. The  department was                                                                    
using existing unfilled positions.                                                                                              
                                                                                                                                
Co-Chair Seaton  clarified that the positions  were existing                                                                    
and unfilled.  Mr. Spenser responded, "That's  correct." One                                                                    
of the positions was coming from another division.                                                                              
                                                                                                                                
Representative Pruitt WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Pruitt, Thompson,  Gara, Grenn, Guttenberg,                                                                    
Kawasaki, Foster, Seaton                                                                                                        
OPPOSED: Tilton, Wilson                                                                                                         
                                                                                                                                
The MOTION TO ADOPT Amendment H LAW 1 PASSED (9/2).                                                                             
                                                                                                                                
3:04:59 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment H LAW 2 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Civil Division                                                                                                             
     Commercial and Fair Business                                                                                               
     H LAW  2 - Increment to  add one attorney to  the Civil                                                                    
     Division, Commercial and Fair Business section.                                                                            
     Offered by Representative Grenn                                                                                            
                                                                                                                                
     This amendment  adds one attorney position  with $187.0                                                                    
     UGF  funding to  the  Consumer  Protections (CP)  unit.                                                                    
     This unit,  currently staffed with only  two attorneys,                                                                    
     pursues   violations  of   state  consumer   protection                                                                    
     statutes.  Beyond protecting  the  public from  illegal                                                                    
     actions, the  unit recovers money from  settlements and                                                                    
     other  legal  matters.   An  additional  attorney  will                                                                    
     increase   the  unit's   ability  to   pursue  consumer                                                                    
     protections and may even pay  for itself as a result of                                                                    
     increased recoveries.                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Grenn read the amendment (see above).                                                                            
                                                                                                                                
Representative Grenn reported that the amendment passed 5/2                                                                     
in the subcommittee.                                                                                                            
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Gara, Grenn, Guttenberg, Kawasaki,                                                                          
Ortiz, Seaton, Foster                                                                                                           
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
The MOTION to adopt Amendment H LAW 2 PASSED (8/3).                                                                             
                                                                                                                                
Co-Chair Seaton conveyed that the committee would be taking                                                                     
a 5-minute break.                                                                                                               
                                                                                                                                
3:07:18 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:15:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                  
                                                                                                                                
3:16:00 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki read the subcommittee report:                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Military  and Veterans'  Affairs held  4                                                                    
     meetings with the Department  of Military and Veterans'                                                                    
     Affairs during the review of the FY19 budget request.                                                                      
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Military    and   Veterans'   Affairs                                                                    
     recommends that the House  Finance Committee accept the                                                                    
     Governor's  FY19 Budget  and  3 subcommittee  amendment                                                                    
     proposals:                                                                                                                 
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $16,653.6                                                                                 
     Designated General Funds (DGF) 28.4                                                                                        
     Other Funds 10,195.4                                                                                                       
     Federal Funds 30,691.5                                                                                                     
     Total $57,568.9                                                                                                            
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget  is  a  reduction  of  $7,536.0,  a                                                                    
     decrease of 31.2 percent.                                                                                                  
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY18                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget  is  an   increase  of  $304.2,  an                                                                    
     increase of 1.9 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 277                                                                                                    
     Permanent Part-time 2                                                                                                      
     Temporary 0                                                                                                                
     Total 279                                                                                                                  
                                                                                                                                
     The  Governor did  not submit  any amendments  for this                                                                    
     agency.                                                                                                                    
                                                                                                                                
Representative  Kawasaki concluded  his  report by  thanking                                                                    
the Department  of Military and Veterans  Affairs including,                                                                    
Commissioner  Laurie Hummel,  Deputy Commissioner  Bob Dole,                                                                    
Brian Duffy,  and Ron Clark.  He also thanked  Lacey Sanders                                                                    
from the Legislative Finance Division.                                                                                          
                                                                                                                                
Representative  Wilson  asked  about the  $304,000  increase                                                                    
between FY  18 and FY 19.  Representative Kawasaki responded                                                                    
that  there  was a  special  assistant  position within  the                                                                    
agency for $164,000. There were  also positions that changed                                                                    
because  of the  C-17 changes.  There was  maintenance money                                                                    
added to the budget.                                                                                                            
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  MVA 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Military and Veterans' Affairs                                                                                             
     Office of the Commissioner                                                                                                 
                                                                                                                                
     H MVA 1 - Decrement  funding to Expand the Alaska State                                                                    
     Defense Force for Rural Engagement                                                                                         
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     This amendment  deletes $210.9 UGF from  the Governor's                                                                    
     FY 19  request for  the expansion  of the  Alaska State                                                                    
     Defense  Force.  Because  of   the  limited  amount  of                                                                    
     revenue  for FY  19  and the  state's uncertain  fiscal                                                                    
     future,  the legislature  does not  wish  to use  state                                                                    
     funds to expand the Alaska  State Defense Force at this                                                                    
     time.                                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki  reported  that the  committee  had                                                                    
seen the  amendment several times  in the prior 2  years. It                                                                    
would  expand the  Alaska State  Defense  Force. During  the                                                                    
state's uncertain fiscal times  the subcommittee felt it was                                                                    
unwise to  forward the  amendment. It  did not  preclude the                                                                    
Alaska  State Defense  Force from  requesting  funds in  the                                                                    
future. They would continue on  with status quo funding. The                                                                    
amendment passed 6/1 in the subcommittee.                                                                                       
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Co-Chair Foster supported the program.                                                                                          
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:  Wilson,   Gara,   Grenn,  Guttenberg,   Kawasaki,                                                                    
Ortiz, Pruitt, Tilton, Seaton                                                                                                   
OPPOSED:  Foster                                                                                                                
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H MVA 1 PASSED (9/1).                                                                             
                                                                                                                                
3:21:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:22:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  MVA 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Military and Veterans' Affairs                                                                                             
     Veterans' Services                                                                                                         
     H MVA  2 -  Reduce UGF  that is  replaced by  a Federal                                                                    
     Grant Offered by Representative Kawasaki                                                                                   
                                                                                                                                
     The  Department  of   Military  and  Veterans'  Affairs                                                                    
     received   an   increase   to   their   federal   State                                                                    
     Administrative Agency grant award  to pay for a program                                                                    
     manager   position  and   its  associated   costs.  The                                                                    
     position  was previously  paid for  with  UGF and  that                                                                    
     funding was  maintained in the Veterans'  Services base                                                                    
     budget. This  amendment deletes $100.0  of UGF  for the                                                                    
     costs  that  are  now  being  covered  through  federal                                                                    
     grants.                                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki explained  that during the testimony                                                                    
and analysis on the budget  the subcommittee found that DMVA                                                                    
had received  an increment to a  state administrative agency                                                                    
grant award  in the amount  of about $100,000 for  a program                                                                    
manager and  associated costs including the  4-person office                                                                    
of  Veteran's  Affairs.  Since the  department  received  an                                                                    
agency  grant  increment,  the subcommittee  felt  that  the                                                                    
undesignated general  fund support  could be  removed. Since                                                                    
that  time,  the  subcommittees received  additional  detail                                                                    
including  the  fact  that  the  average  veteran's  service                                                                    
officer  workload was  increasing  about  3700 veterans  per                                                                    
year. The numbers  were expected to increase  further in the                                                                    
following  year.  In  addition,   the  grant  increase  only                                                                    
covered the cost incurred for  the federal fiscal year which                                                                    
ended on September 30, 2018.  Presently, he recommended that                                                                    
members vote against Amendment H MVA 2.                                                                                         
                                                                                                                                
Representative   Wilson  suggested   that  the   grants  for                                                                    
veterans'  service  offices   came  from  several  different                                                                    
agencies. She  asked if the  grant would only apply  for the                                                                    
next  couple  of  months  into   the  state's  fiscal  year.                                                                    
Representative  Kawasaki responded  in the  affirmative. The                                                                    
amendment  passed 4/3  in  subcommittee.  He reiterated  his                                                                    
opposition to the amendment.                                                                                                    
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: None                                                                                                                  
OPPOSED:  Gara, Grenn, Guttenberg,  Kawasaki, Ortiz, Pruitt,                                                                    
Tilton, Wilson, Foster, Seaton                                                                                                  
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H MVA 2 FAILED (0/10).                                                                            
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  MVA 3                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Aerospace Corporation                                                                                               
     H MVA  3 - Legislative  Intent for Receiving  a Options                                                                    
     for  a Return  of Investment  for the  Alaska Aerospace                                                                    
     Corporation Offered by Representative Kawasaki                                                                             
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Department of  Military and  Veterans' Affairs  and the                                                                    
     Alaska   Aerospace  Corporation   develop  options   to                                                                    
     realize  a return  from the  State's investment  in the                                                                    
     Alaska Aerospace  Corporation and the  associated State                                                                    
     assets.  The  Department   of  Military  and  Veterans'                                                                    
     Affairs  shall  submit  a preliminary  summary  of  the                                                                    
     options  and  any  relevant statute  revisions  to  the                                                                    
     House  and   Senate  Finance  Committees  and   to  the                                                                    
     Legislative Finance Division by  September 30, 2018 and                                                                    
     a final summary being  submitted to the same committees                                                                    
     by December 1, 2018.                                                                                                       
                                                                                                                                
     Explanation: The state is  experiencing a fiscal crisis                                                                    
     and should  begin to realize returns  on its investment                                                                    
     in the Alaska Aerospace Corporation.                                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki explained  that  the amendment  was                                                                    
intent language  for the  Alaska Aerospace  Corporation. The                                                                    
language would request that  the corporation develop options                                                                    
to return state investment in  the from of dividends or some                                                                    
other  sort  of  asset.  The   Department  of  Military  and                                                                    
Veterans  Affairs mentioned  that  at a  recent meeting  the                                                                    
Alaska  Aerospace  Development  Corporation had  started  to                                                                    
develop  options   and  was  moving  towards   the  idea  of                                                                    
investments.  Investments  and   future  earnings  would  be                                                                    
deposited into  the general fund.  He thought  the amendment                                                                    
was in  line with  what DMVA was  already doing.  The intent                                                                    
language passed 6/1 in the subcommittee process.                                                                                
                                                                                                                                
Representative Wilson  asked whether DMVA would  keep track.                                                                    
She  also asked  about  a  repayment figure.  Representative                                                                    
Kawasaki  responded that  the state  had  invested over  $80                                                                    
million  from   the  inception   of  the   Alaska  Aerospace                                                                    
Corporation.  The  figure   included  several  general  fund                                                                    
increments added into the budget between 2010-2013.                                                                             
                                                                                                                                
3:27:09 PM                                                                                                                    
                                                                                                                                
Representative Wilson asked how much  had been paid back to-                                                                    
date. Representative  Kawasaki responded  that they  did not                                                                    
have statutory authority  to pay any dividends  back. In the                                                                    
previous session, the subcommittee  had recommended that the                                                                    
legislature  create statutes  to allow  them to  do so.  The                                                                    
board seemed  to be pursuing  the issue as a  board mandate.                                                                    
He thought they would require statutory changes in the end.                                                                     
                                                                                                                                
Representative  Wilson asked  if they  could still  pay back                                                                    
the general  fund without having  to pay  it in the  form of                                                                    
dividends.  Representative Kawasaki  thought  the board  was                                                                    
currently  discussing paying  back  into  the general  fund.                                                                    
They  would  need  further  statutory  changes.  They  would                                                                    
submit statute  revisions necessary for them  to comply with                                                                    
providing   dividends  similar   to   the  Alaska   Railroad                                                                    
Corporation or other public corporations  or entities in the                                                                    
state.                                                                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, H MVA 3 was ADOPTED.                                                                                  
                                                                                                                                
^DEPARTMENT OF NATURAL RESOURCES                                                                                              
                                                                                                                                
3:28:51 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg read the  report of the Department                                                                    
of Natural Resources:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Natural Resources  held ten meetings with                                                                    
     the  department during  the review  of the  FY19 budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the  Department of  Natural  Resources recommends  that                                                                    
     the House  Finance Committee  accept the  Department of                                                                    
     Natural  Resources  FY19  Amended Budget  with  further                                                                    
     amendment(s):                                                                                                              
                                                                                                                                
     The budget with amendment totals:                                                                                          
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $57,683.3                                                                                 
     Designated General Funds (DGF) $32,793.3                                                                                   
     Other Funds $35,775.5                                                                                                      
     Federal Funds $16,644.3                                                                                                    
     Total $142,896.4                                                                                                           
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended budget  is a reduction of  $28.972 million,                                                                    
     a decrease of 33.4 percent.                                                                                                
                                                                                                                                
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 625                                                                                                    
     Permanent Part-time 215                                                                                                    
     Temporary 62                                                                                                               
     Total 902                                                                                                                  
                                                                                                                                
     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:                                                                                                    
                                                                                                                                
          1. An amendment proposal  was discussed that would                                                                    
          have  reduced  funding  for  oil   &  Gas  in  the                                                                    
          allocation  to match  FY17  actual spending  under                                                                    
          1108, adjusted for inflation of 2.2 percent.                                                                          
                                                                                                                                
          2.  An  amendment  proposal  was  viewed  but  not                                                                    
          discussed   that   would   have   increased   Fire                                                                    
          Preparedness  by  $700,000   Funds  to  cover  the                                                                    
          increased  costs  of  aviation contracts  for  air                                                                    
          tankers and  helicopters necessary to  be prepared                                                                    
          to fight fires.                                                                                                       
                                                                                                                                
Representative Guttenberg MOVED to ADOPT Amendment GA 7                                                                         
(copy on file):                                                                                                                 
                                                                                                                                
     Administration & Support Services                                                                                          
     Office of Project Management & Permitting                                                                                  
     GA 7 2/14 Alaska Geospatial Council                                                                                        
                                                                                                                                
     The  Alaska Geospatial  Council  (AGC) was  established                                                                    
     through  a Memorandum  of Agreement  between six  state                                                                    
     departments and  the University of Alaska  and endorsed                                                                    
     by  Governor  Walker in  July  2015.  Since that  date,                                                                    
     additional  members   have  been  annexed   to  include                                                                    
     federal  and   local  governments  and   Alaska  Native                                                                    
     representation.   The  AGC   is  led   by  the   Alaska                                                                    
     Department  of Natural  Resources, and  its purpose  is                                                                    
     to:                                                                                                                        
     -   Modernize   Alaska's    geospatial   holdings   and                                                                    
     infrastructure;                                                                                                            
     -  Eliminate  redundant  expenditures  and  unnecessary                                                                    
     staff activity across all SOA business units;                                                                              
     -  Foster data  sharing  while  making geospatial  data                                                                    
     broadly available, and;                                                                                                    
     - Implement the Alaska Geospatial Strategic Plan.                                                                          
                                                                                                                                
     The  Alaska Geospatial  Council  has been  funded by  a                                                                    
     capital project  that will exhaust  all funds  by March                                                                    
     2019.  This increment  will allow  the council  and its                                                                    
     services to continue through the  end of FY Senator 19.                                                                    
     If  this program  ends the  state and  the public  will                                                                    
     lose   access  to   a   large   amount  of   geospatial                                                                    
     information.  This information  is used  by pilots  for                                                                    
     updated elevation  data (safety), updating  flood plain                                                                    
     information (safety), marketing  Alaska's resource, and                                                                    
     other   governmental,   recreational   and   industrial                                                                    
     applications.                                                                                                              
                                                                                                                                
     This  increment  will   primarily  maintain  access  to                                                                    
     statewide satellite imagery, which  is one of the seven                                                                    
     core  data layers  the AGC  provides access  to. During                                                                    
     the  first five  months  of the  current contract  with                                                                    
     GeoNorth  there have  been an  average  of 2.5  million                                                                    
     digital data  requests a month from  1,500 unique users                                                                    
     who downloaded an average of  127 GB of data per month.                                                                    
     This is  a heavily used dataset  and maintaining access                                                                    
     to it is crucial.                                                                                                          
                                                                                                                                
     This   increment  will   fund   four   months  of   the                                                                    
     coordinator's   salary   for  the   Alaska   Geographic                                                                    
     Information  Officer, the  principal representative  of                                                                    
     the   Alaska    Geospatial   Council,    and   continue                                                                    
     contractual services for the distribution of satellite                                                                     
     imagery for the unfunded portion of FY 19.                                                                                 
                                                                                                                                
     As capital funds will run out halfway through FY 19,                                                                       
     an increment estimated to be $400.0 will be considered                                                                     
     to maintain these efforts in the FY 20 budget.                                                                             
                                                                                                                                
     FY 19 Governor: $6,299.8                                                                                                   
     FY 19 Total Amendments: $100.0                                                                                             
     FY 19 Total: $6,399.8                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Guttenberg read the amendment (see above).                                                                       
                                                                                                                                
Representative  Wilson asked  about a  user fee,  being that                                                                    
the  area   was  heavily  used.   Representative  Guttenberg                                                                    
responded that the question was  raised in committee. Anyone                                                                    
had access  to the information.  It was not  restricted. The                                                                    
state was unaware of who was  using it or how much was being                                                                    
used. It was simply available to the public.                                                                                    
                                                                                                                                
Representative  Wilson asked  if  they could  charge a  user                                                                    
fee. Representative Guttenberg deferred to the department.                                                                      
                                                                                                                                
3:34:31 PM                                                                                                                    
                                                                                                                                
STEVE  MASTERMAN,   DIRECTOR,  GEOLOGICAL   AND  GEOPHYSICAL                                                                    
SURVEYS  (via teleconference),  responded that  the division                                                                    
was  actively looking  at the  issue  in discussions  around                                                                    
this  increment with  the Office  of  Management and  Budget                                                                    
(OMB). They  asked DNR  to begin the  process of  becoming a                                                                    
revenue  generating  source  of  state  government  in  some                                                                    
fashion. The  department was beginning the  task of becoming                                                                    
revenue  generating.   He  thought  they  would   be  making                                                                    
progress within the following couple of years.                                                                                  
                                                                                                                                
Representative   Wilson   remarked   that  she   hoped   the                                                                    
department could do it before the following year.                                                                               
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Guttenberg, Kawasaki,  Ortiz, Gara, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment GA 7 PASSED (7/3).                                                                                
                                                                                                                                
Representative Guttenberg MOVED to ADOPT Amendment H DNR 1                                                                      
(copy on file):                                                                                                                 
                                                                                                                                
     Administration & Support Services                                                                                          
     Office of Project Management & Permitting                                                                                  
     H DNR 1 - Reduce Compensatory Mitigation Program                                                                           
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     As of 2/15/18, the department  had spent $26,136 of the                                                                    
     $200,000  appropriated in  the FY  18 operating  budget                                                                    
     for  compensatory mitigation  program in  OPMP, leaving                                                                    
     an unspent amount of $173,864.                                                                                             
                                                                                                                                
     DNR   estimates  spending   another   $50,000  of   the                                                                    
     appropriation before the end  of FY 18 and acknowledges                                                                    
     that  they do  not need  $200,000 for  the compensatory                                                                    
     mitigation program in FY 19.                                                                                               
                                                                                                                                
     This  amendment reduces  the  base  budget amount  from                                                                    
     $200,000 to $100,000.                                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Guttenberg presented the amendment (see                                                                          
above).                                                                                                                         
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DNR 1 was ADOPTED.                                                                        
                                                                                                                                
3:37:07 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg MOVED to ADOPT Amendment H DNR 2                                                                      
(copy on file):                                                                                                                 
                                                                                                                                
     Administration & Support Services                                                                                          
     Mental Health Trust Lands Administration                                                                                   
     H  DNR 2  - Increase  Mental Health  Trust Land  Office                                                                    
     Budget Offered by Representative Guttenberg                                                                                
                                                                                                                                
     The Mental Health Trust requested  a $355.2 increase to                                                                    
     the Land Office  budget in FY 19 from the  FY 18 level,                                                                    
     which was not included in the Governor's budget. This                                                                      
     amendment grants that increase, less $29.0 that was                                                                        
     for merit increases.                                                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Guttenberg   reviewed  the   amendment  (see                                                                    
above).                                                                                                                         
                                                                                                                                
Co-Chair Seaton clarified that the  legislature had tried to                                                                    
reduce merit increases throughout the budget.                                                                                   
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DNR 2 was ADOPTED.                                                                        
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H DNR 3                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Fire Suppression, Land & Water Resources                                                                                   
     Mining, Land & Water H DNR 3 - Restore Northern Region                                                                     
     Permits Position.                                                                                                          
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     Add back $107.0 and 1  PFT position for Northern Region                                                                    
     Permits  and  Easements,  which  were  deleted  in  the                                                                    
     Governor's budget. Retaining  this position will reduce                                                                    
     the backlog of permits.                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Guttenberg read  the amendment  (see above).                                                                    
He had received  emails from someone with  a long-term lease                                                                    
who had been paying year-to-year  lease fees. They had tried                                                                    
to purchase the property they  were on. When the constituent                                                                    
had  contacted the  department  to  facilitate the  transfer                                                                    
into the  private sector,  he was told  that there  were 100                                                                    
people  in  the  backlog.  The  position  was  part  of  the                                                                    
operation  that they  were deleting  within the  department.                                                                    
There was a  backlog of people trying to  obtain permits and                                                                    
land  transfers  into  private ownership.  The  subcommittee                                                                    
thought that  it was part  of the state's core  mission. The                                                                    
amendment would restore a position being deleted.                                                                               
                                                                                                                                
Representative Wilson asked why the governor removed it.                                                                        
                                                                                                                                
3:40:33 PM                                                                                                                    
                                                                                                                                
BRENT GOODRUM, DEPARTMENT OF  NATURAL RESOURCES, DIVISION OF                                                                    
MINING,  LAND, AND  WATER,  ANCHORAGE (via  teleconference),                                                                    
responded  that there  were many  difficult decisions  to be                                                                    
made.   The  division   had   considered  eliminating   this                                                                    
particular position.  He reported  that there were  over 100                                                                    
permit and easement applications for  the use of state lands                                                                    
in  the  Northern  regional  office  to  be  processed.  The                                                                    
reinstatement of  the position  would allow the  division to                                                                    
process  40  authorizations per  year  helping  to grow  the                                                                    
economy.   He   anticipated   positive  results   from   the                                                                    
reinstatement of the position.                                                                                                  
                                                                                                                                
Representative Wilson  asked why  the governor  proposed the                                                                    
position's  deletion.  She  wondered  if  the  position  was                                                                    
currently filled.  Mr. Goodrum  responded that  the position                                                                    
was currently  vacant. It  had been  filled in  the previous                                                                    
fiscal year.  He reported that it  was a time in  which many                                                                    
difficult   decisions  had   to   be  made.   Representative                                                                    
Guttenberg was offering a way  to help maintain and continue                                                                    
to reduce permit backlog.                                                                                                       
                                                                                                                                
Representative  Wilson asked  when the  position was  filled                                                                    
last. Mr. Brent  responded that it had been  vacated about 8                                                                    
months.                                                                                                                         
                                                                                                                                
Representative  Wilson assumed  he  was  having a  difficult                                                                    
time filling  the position. She  asked why the  position had                                                                    
not  been filled.  Mr. Brent  replied that  agencies had  to                                                                    
manage  vacancy  backlog.  The department's  budget  process                                                                    
began  in  July  and  August  and  the  position  was  being                                                                    
considered  for  reduction.  Until the  budget  process  was                                                                    
completed,  it  was  not  prudent to  hire  someone  into  a                                                                    
position potentially being cut.                                                                                                 
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Guttenberg, Kawasaki, Ortiz, Gara, Grenn, Foster                                                                      
Seaton                                                                                                                          
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED (7/3). Amendment H DNR 3 was ADOPTED.                                                                         
                                                                                                                                
3:44:45 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H DNR 4                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Parks & Outdoor Recreation                                                                                                 
     Parks Management & Access                                                                                                  
     H  DNR  4  -  Add  Grants  Administrator  for  Pittman-                                                                    
     Robertson Fund (IncT FY19-21)                                                                                              
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     The  amount of  federal  Pittman-Robertson funding  has                                                                    
     increased significantly, and the  Division of Parks and                                                                    
     Outdoor Recreation has  become increasingly involved in                                                                    
     finding  and  administering   eligible  projects.  This                                                                    
     amendment  adds a  non-permanent Grant  Administrator I                                                                    
     position,  to   be  funded  with  Vehicle   Rental  Tax                                                                    
     receipts  and  Pittman-Robertson   funds  (through  the                                                                    
     Department of Fish and Game).                                                                                              
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Guttenberg read the amendment (see above).                                                                       
                                                                                                                                
Co-Chair  Seaton  clarified  that  the  grant  administrator                                                                    
position   would   coordinate    between   non-profits   and                                                                    
municipalities,  entities  that   could  potentially  supply                                                                    
match funding for federal receipts of a 3:1 match.                                                                              
Representative Wilson  asked about the internal  agency (IA)                                                                    
receipts from  the Department of  Fish and Game  and whether                                                                    
they were  Pittman-Robertson funds or general  fund dollars.                                                                    
She  also wondered  why vehicle  tax money  was being  used.                                                                    
Representative Guttenberg  deferred to the  department about                                                                    
specifics. He had  asked if the funds  were available, which                                                                    
was confirmed.                                                                                                                  
                                                                                                                                
Co-Chair Seaton clarified that it  was a 3:1 match including                                                                    
the  administrative position.  The  position  was paid  with                                                                    
one-quarter   state  funding   and  three-quarters   federal                                                                    
Pittman-Robertson funding.                                                                                                      
                                                                                                                                
3:47:33 PM                                                                                                                    
                                                                                                                                
FABIENNE PETER-CONTESSE, DIRECTOR  OF ADMINISTRATIVE SUPPORT                                                                    
SERVICES,  DEPARTMENT OF  NATURAL RESOURCES,  confirmed that                                                                    
funding  from  DFG  would consist  of  75  percent  Pittman-                                                                    
Robertson funds and 25 percent  vehicle rental tax receipts.                                                                    
The vehicle  rental tax receipts  were determined to  be the                                                                    
appropriate  match  by   the  Legislative  Finance  Division                                                                    
(LFD).  She indicated  Alexie  Painter was  in  the room  if                                                                    
members had specific questions about the fund source.                                                                           
                                                                                                                                
Representative  Wilson  asked  about  rental  cars  as  they                                                                    
related to parks and recreation.                                                                                                
                                                                                                                                
3:48:39 PM                                                                                                                    
                                                                                                                                
ALEXEI  PAINTER,  ANALYST,   LEGISLATIVE  FINANCE  DIVISION,                                                                    
explained that vehicle rental taxes  were currently spent in                                                                    
multiple   departments    including   the    Department   of                                                                    
Transportation and  Public Facilities (DOT),  the Department                                                                    
of  Commerce, Community  and  Economic Development  (DCCED),                                                                    
and  the  Department  of  Natural  Resources  (DNR)  in  the                                                                    
Division of  Parks and Recreation. Historically,  when there                                                                    
had been increases in vehicle  rental tax receipts including                                                                    
in  FY 17,  the  money  would be  distributed  to all  three                                                                    
departments.  There was  concern  that the  increment was  a                                                                    
one-time  increase in  FY 17  and  that it  might not  last.                                                                    
Rather  than  distributing  it, about  $3  million  remained                                                                    
available for  use. Funding the  position was  determined to                                                                    
be a reasonable use of surplus funds.                                                                                           
                                                                                                                                
Representative  Wilson did  not  think it  was a  reasonable                                                                    
idea to  use the funds. The  money was available, so  it was                                                                    
being  used. Mr.  Painter responded  that the  split between                                                                    
the  departments was  not  even. He  could  not explain  the                                                                    
methodology used  to determine  the split, a  previous House                                                                    
Finance  Chairman  designed  the   split.  He  believed  the                                                                    
statute designated the fund for  tourism and other purposes.                                                                    
He thought  Representative Grenn  was the expert  because of                                                                    
his pending legislation.                                                                                                        
                                                                                                                                
Representative Wilson  asked if Mr. Painter  was comfortable                                                                    
with  the time  span of  3 years.  Mr. Painter  replied that                                                                    
part  of  the  increase   was  temporary.  There  were  some                                                                    
payments  bundled into  1  year. It  was  expected that  the                                                                    
funds  would   not  last.  There  was   about  $1.6  million                                                                    
collected  in FY  16 that  was used  in the  capital budget.                                                                    
That amount  was likely sustainable going  forward. He added                                                                    
that $21,000 would not make a large dent in the fund.                                                                           
                                                                                                                                
Representative  Wilson would  be maintaining  her objection.                                                                    
She  indicated  that the  position  was  a 3-year  temporary                                                                    
position, which she thought would  be difficult to fill. She                                                                    
was unsure about using vehicle  tax money for the amendment.                                                                    
She  thought the  position should  be a  permanent full-time                                                                    
position.                                                                                                                       
                                                                                                                                
Co-Chair Seaton  added that the Pittman-Robertson  funds had                                                                    
to  be used  on hunter  or wildlife  viewing. He  elaborated                                                                    
that  wildlife viewing  would  satisfy  the tourism  related                                                                    
requirement  necessary to  use the  vehicle tax  funding. It                                                                    
made  sense because  the state  was anticipating  20 percent                                                                    
more visitors in Alaska.                                                                                                        
                                                                                                                                
Representative  Wilson asked  how the  state was  paying the                                                                    
person.  The person  would not  be doing  the viewing,  they                                                                    
would  be  writing  a  grant.  As  she  understood,  the  IA                                                                    
receipts  including  the  Pittman-Robertson  funds  and  the                                                                    
vehicle tax.  Co-Chair Seaton  responded that  it was  not a                                                                    
grant  writer, but  a grant  administrator for  the projects                                                                    
that  included trails  and  wildlife  viewing. The  position                                                                    
would be eligible for a 75 percent federal match.                                                                               
                                                                                                                                
3:53:16 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  understood that the  original vehicle                                                                    
rental tax  was supposed to  be used for  tourism marketing.                                                                    
He relayed  that when the  legislature increased the  fees a                                                                    
couple  of years  prior,  the  intent was  to  use the  fees                                                                    
collected for  matching Pittman-Robertson funds.  He thought                                                                    
the amendment spoke to how  the state's budget was difficult                                                                    
to understand  and track. Instead  of the  legislature using                                                                    
the  funds  for the  intended  purposes,  the amendment  was                                                                    
changing how the funds would  be used. He wondered where the                                                                    
receipts from licenses and tag fees were being spent.                                                                           
                                                                                                                                
Ms. Peter-Contesse  responded that  she could not  speak for                                                                    
the Department  of Fish and  Game budget. However,  the fish                                                                    
and  game which  benefited  from the  license increases  had                                                                    
sideboards that other types of  match did not. For instance,                                                                    
fish and game  funds had to be used  specifically for hunter                                                                    
or  angler access.  The  reason DNR  was  involved with  the                                                                    
issue was because if it could  find other types of match not                                                                    
related to  fish and game,  the department could  expand the                                                                    
use  of  Pittman-Robertson funds  to  things  such as  trail                                                                    
access for wildlife  viewing. The idea was to  get access to                                                                    
the  3:1  match instead  of  using  specific fish  and  game                                                                    
funds. The proposal was for DNR  to work in concert with DFG                                                                    
to maximize the use of federal dollars.                                                                                         
                                                                                                                                
3:56:07 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt asked  if the  legislature needed  to                                                                    
change statute in order to  remove DFG fund sideboards which                                                                    
would allow the  department to use the funds  for things the                                                                    
state parks wanted such as wildlife viewing.                                                                                    
                                                                                                                                
Ms. Peter-Contesse  thought there was a  federal requirement                                                                    
in  the  Pittman-Robertson   and  Dingle-Johnson  acts  that                                                                    
required a  fish and game fund  not to be used  for anything                                                                    
besides hunter  and angler access.  However, she was  not an                                                                    
expert  on  fish  and  game   funds.  She  believed  if  the                                                                    
legislature tried  to change statute diverting  those funds,                                                                    
the state  would risk  losing Pittman-Robertson  and Dingle-                                                                    
Johnson funding.                                                                                                                
                                                                                                                                
Representative Pruitt  commented that  when he  had directed                                                                    
his questions to DFG they  had not responded clearly. He was                                                                    
confused about the sideboards and  the use of Dingle-Johnson                                                                    
funds. He suggested  the state was using  vehicle rental tax                                                                    
receipts  to match  Dingle-Johnson funds.  He asked  why the                                                                    
state  was using  tourism  rental tax  money  for a  purpose                                                                    
other than what  those monies were intended  for. He thought                                                                    
the  legislature  would  need  to  provide  answers  to  the                                                                    
public.                                                                                                                         
                                                                                                                                
Ms.  Peter-Contesse  responded  that  in  order  to  have  a                                                                    
Pittman-Robertson  program through  the federal  government,                                                                    
there had to be a fish and  game fund that could not be used                                                                    
outside  of   hunter  access.   There  were   certain  other                                                                    
sideboards which  DFG could  speak to.  If Pittman-Robertson                                                                    
funds were matched with general  funds or vehicle rental tax                                                                    
funds (any funds  outside of fish and game  funds), it would                                                                    
expand the  use of  those Pittman-Robertson funds.  In other                                                                    
words,  the funds  could  be  used for  a  broader scope  of                                                                    
projects. Whether  or not  the match  came from  vehicle tax                                                                    
receipts,  the   amendment  would  allow  DNR   to  work  in                                                                    
collaboration with  DFG, to look for  non-profits, and match                                                                    
opportunities  for  some  of   the  available  dollars.  She                                                                    
relayed  that DFG  would likely  be focused  on using  their                                                                    
fish and game funds to match the federal government funds.                                                                      
                                                                                                                                
Mr. Painter  added that there was  insufficient DFG revenues                                                                    
to  match  all of  the  Pittman-Robertson  monies that  were                                                                    
coming in.  The amount of the  increase in Pittman-Robertson                                                                    
funds over  the past  several years had  been so  great that                                                                    
the  state  had  actually  reverted  some  of  those  funds.                                                                    
Finding  additional   sources  of  match  would   allow  the                                                                    
legislature to expend  more of the funds.  The intention was                                                                    
not to  displace fish and  game funds, it was  to supplement                                                                    
them.  The  state could  not  completely  match all  of  the                                                                    
Pittman-Robertson funds  using just  the fish and  game fund                                                                    
without draining the fund completely.                                                                                           
                                                                                                                                
Representative Pruitt  remarked that it took  LFD to finally                                                                    
properly address his question.                                                                                                  
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kawasaki, Ortiz, Gara, Guttenberg, Seaton, Foster                                                                     
OPPOSED: Pruitt, Tilton, Wilson, Grenn                                                                                          
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendment H DNR 4 PASSED (6/4).                                                                             
                                                                                                                                
^DEPARTMENT OF PUBLIC SAFETY                                                                                                  
                                                                                                                                
4:02:22 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki read  the  subcommittee report  for                                                                    
the Department of Public Safety:                                                                                                
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Public  Safety held  five meetings  with                                                                    
     the  Department during  the review  of the  FY19 budget                                                                    
     request.                                                                                                                   
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Public Safety recommends that  the House                                                                    
     Finance  Committee  accept  the  Department  of  Public                                                                    
     Safety's  FY19  budget  with  the  following  amendment                                                                    
     recommendations.                                                                                                           
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $161,792.7                                                                                
     Designated General Funds (DGF) 8,282.4                                                                                     
     Other Funds 11,217.0                                                                                                       
     Federal Funds 16,487.6                                                                                                     
     Total $197,779.7                                                                                                           
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget  is  a  reduction  of  $9,617.9,  a                                                                    
     decrease of 5.6 percent.                                                                                                   
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY18                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended  budget  is  an increase  of  $2,243.5,  an                                                                    
     increase of 1.4 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 804                                                                                                    
     Permanent Part-time 18                                                                                                     
     Temporary 11                                                                                                               
     Total 833                                                                                                                  
                                                                                                                                
     The  Governor did  not submit  any amendments  for this                                                                    
     agency.                                                                                                                    
                                                                                                                                
     The subcommittee  discussed a variety of  issues during                                                                    
     the  meetings,  including  one amendment  proposal  the                                                                    
     subcommittee failed to pass:                                                                                               
                                                                                                                                
     1.   An  amendment proposal  was  discussed that  would                                                                    
     have  deleted $1,000.0  UGF from  the Grants,  Benefits                                                                    
     line of the Village  Public Safety Officer Program. The                                                                    
     subcommittee  voted  down this  proposal  2  yeas to  8                                                                    
     nays.                                                                                                                      
                                                                                                                                
     The Department voiced  concern that while approximately                                                                    
     $2,300.0 UGF of unexpended  VPSO funds in FY2017 lapsed                                                                    
     back  to the  General Fund,  having funds  available to                                                                    
     hire  unfilled positions  is still  necessary. (Members                                                                    
     were  reminded  the   FY2018  Enacted  budget  included                                                                    
     intent language  that any  unexpended VPSO  funds would                                                                    
     lapse back  to the  General Fund.) The  Department said                                                                    
     approximately  half of  the  requests  to expend  funds                                                                    
     were accepted from VPSO contractors.                                                                                       
                                                                                                                                
     Some subcommittee  members noted that the  VPSO Program                                                                    
     lacks  resources,   filled  positions  and   could  use                                                                    
     funding to help recruit.  A member voiced optimism that                                                                    
     if the funds are left  available for the Department and                                                                    
     VPSO contractors, they can hire more VPSOs.                                                                                
                                                                                                                                
     A member  felt that funds were  left unexpended because                                                                    
     of the  overly restrictive environment  of distributing                                                                    
     the funds from DPS  to VPSO contractors. Another member                                                                    
     voiced concern that  any failure in the  program is not                                                                    
     just because  of funds. This discussion  lent itself to                                                                    
     the subsequent statutory  recommendation to revisit the                                                                    
     VPSO statutes.                                                                                                             
                                                                                                                                
     The  following  statutory  recommendations  are  shared                                                                    
     with    the    House     Finance    Committee.    These                                                                    
     recommendations  will  be  submitted  to  the  relevant                                                                    
     policy committees for consideration.                                                                                       
                                                                                                                                
     1.   House   State  Affairs   Committee      Amend   AS                                                                    
     18.70.080  to  authorize  the  Commissioner  of  Public                                                                    
     Safety  to  establish  by   regulation  a  schedule  of                                                                    
     reasonable   fees   for   services  provided   by   the                                                                    
     Department  of Public  Safety under  AS 18.70.050.  The                                                                    
     fee  established  for  a service  may  not  exceed  the                                                                    
     actual cost of providing  the service. The commissioner                                                                    
     may define  or establish the "actual  cost of providing                                                                    
     a  service" by  regulation.  The  Department of  Public                                                                    
     Safety shall  charge and  collect the  fees established                                                                    
     under  this   subsection.  The  department   may  waive                                                                    
     collection of a  fee upon a finding  that collection is                                                                    
     not economically feasible or in the public interest.                                                                       
                                                                                                                                
     As heard  in subcommittee  on February 6,  the Division                                                                    
     of Fire  & Life Safety  cannot charge fees  for regular                                                                    
     building  inspections     only  for  plan  reviews,  as                                                                    
     authorized  under   AS  18.70.080(b).   Currently,  the                                                                    
     Designated  General Funds  are raised  by charging  for                                                                    
     plan  reviews, but  the funds  are used  for conducting                                                                    
     regular building inspections.                                                                                              
                                                                                                                                
     The Department stated that because  of the current lack                                                                    
     of authority  to charge  fees for  regular inspections,                                                                    
     the  Division  is  unlikely  to  raise  the  additional                                                                    
     $125.0 of  GF/Program Receipts  (DGF) requested  in the                                                                    
     Governor's FY19 budget.                                                                                                    
                                                                                                                                
     By giving  the Department authority to  charge fees for                                                                    
     regular  inspections,   with  a  waiver   available  to                                                                    
     entities  such as  nonprofits  or childcare  facilities                                                                    
     that cannot  bear the  cost of  an inspection  fee, the                                                                    
     Division of  Fire & Life  Safety may be better  able to                                                                    
     recoup some of the cost of regular inspections.                                                                            
                                                                                                                                
     In  subcommittee  on  February   20,  the  House  State                                                                    
     Affairs   Committee   Chair   expressed   interest   in                                                                    
     introducing this  proposal, which was agreed  upon with                                                                    
     the  House  Community   &  Regional  Affairs  Committee                                                                    
     Chair.                                                                                                                     
                                                                                                                                
     2.   House Community & Regional  Affairs Committee   In                                                                    
     coordination   with  Village   Public  Safety   Officer                                                                    
     Program grantees  and the Department of  Public Safety,                                                                    
     the  subcommittee recommends  the Legislature  revisits                                                                    
     the  VPSO Program  statutes, AS  18.65.670, to  enhance                                                                    
     the  mission of  the  VPSO Program  to preserve  public                                                                    
    peace, protect life and property in rural villages.                                                                         
                                                                                                                                
     The  VPSO Program  statutes have  not  been updated  in                                                                    
     nearly  40  years,  except to  authorize  firearms  for                                                                    
     Village  Public Safety  Officers. Over  the years,  the                                                                    
     legislature  has provided  direction to  the Department                                                                    
     of Public Safety through budget intent language.                                                                           
                                                                                                                                
     Revisiting the statutory language  may not only improve                                                                    
     communication  between the  Legislature, Department  of                                                                    
     Public Safety  and the VPSO Grantees,  but also enhance                                                                    
     the function  of this vitally important  public service                                                                    
     in rural communities.                                                                                                      
                                                                                                                                
Representative   Kawasaki  reported   that  both   statutory                                                                    
language  amendments were  received without  any objections.                                                                    
The  governor did  not  submit any  amendments  for DPS.  He                                                                    
thanked  DPS including  Commissioner Monegan,  Kelly Howell,                                                                    
and Allison Hanzawa. He also thanked Amanda Ryder from LFD.                                                                     
                                                                                                                                
Representative Kawasaki MOVED to ADOPT Amendment H DPS 1                                                                        
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska Bureau of Highway Patrol                                                                                            
                                                                                                                                
     H DPS 1 - Dec to Align FY19 Budgeted                                                                                       
     Consulting  Services and  Software Funding  with FY  16                                                                    
     and FY 17 Actual Expenditures                                                                                              
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Actual  expenditures  in  the Services  line  item  for                                                                    
     Consulting Services  and Software  were $21.3 in  FY 16                                                                    
     and  $3.6  in  FY   17.  This  amendment  reduces  this                                                                    
     allocation by $100.0  to an FY 19  budget request level                                                                    
     of $44.2  which exceeds  expenditures that  occurred in                                                                    
     FY 16 and FY 17.                                                                                                           
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki  reported  that the  amendment  was                                                                    
offered  by  Representative  Wilson and  dealt  with  actual                                                                    
expenditures  used for  consulting  services  in a  previous                                                                    
year.  The department  stated on  record that  they did  not                                                                    
have a problem with the  amendment. The amendment was passed                                                                    
without objection.                                                                                                              
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DPS 1 was ADOPTED.                                                                        
                                                                                                                                
4:07:48 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DPS 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Prisoner Transportation                                                                                                    
                                                                                                                                
     H DPS 2  - Decrement Funding to  Reflect Downward Trend                                                                    
     in Actual Expenditures Between FY 13 and FY 17                                                                             
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Between FY 13 and  FY 17, actual expenditures decreased                                                                    
     by  41 percent  (from  $3.1 million  to $1.8  million).                                                                    
     Given  the  trend, the  FY  18  budget  and the  FY  19                                                                    
     Governor's  Request  appear   to  be  overfunded.  This                                                                    
     amendment removes "excess" funding in this allocation.                                                                     
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki reported  that  the amendment  came                                                                    
from the fiscal analyst  that found that actual expenditures                                                                    
for prisoner transportation had  decreased between FY 13 and                                                                    
FY  17. The  average savings  from year-to-year  was between                                                                    
$400,000  and $500,000.  The amendment  was  a decrement  of                                                                    
$400,000 in what was perceived  to be excess funding for the                                                                    
allocation. It passed 8:1 in the subcommittee.                                                                                  
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DPS 2 was ADOPTED.                                                                        
                                                                                                                                
Representative Kawasaki MOVED to ADOPT Amendment H DPS 3, H                                                                     
DPS 4, H DPS 5, H DPS 6, and H DPS 7 (copies on file):                                                                          
                                                                                                                                
H DPS 3:                                                                                                                        
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska State Trooper Detachments                                                                                           
                                                                                                                                
     H  DPS 3  - Transfer  Funding from  AST Detachments  to                                                                    
     VPSO Program to Increase VPSO  Travel Linked to H DPS 6                                                                    
     -  Transfer  Funding  from   AST  Detachments  to  VPSO                                                                    
     Program to Increase VPSO Travel TrIn 345860                                                                                
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  Governor's FY19  budget  increases AST  Detachment                                                                    
     travel  by $2  million UGF  to improve  law enforcement                                                                    
     access   to    rural   communities.    This   amendment                                                                    
     appropriates a  portion ($585.0) of the  request to the                                                                    
     Village Public Safety                                                                                                      
     Officer  Program  to  increase  VPSO  travel  to  rural                                                                    
     communities.  The  585.0  amount  reflects  the  actual                                                                    
     expenditure for total grantee travel in FY17.                                                                              
                                                                                                                                
H DPS 4:                                                                                                                        
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska State Trooper Detachments                                                                                           
                                                                                                                                
     H DPS 4 - Align  AST Travel Line with FY14-FY17 Average                                                                    
     Actual Travel Expenditures                                                                                                 
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  Governor's proposed  FY19  request  in the  travel                                                                    
     line is  $3,376.2, an increase  of $2,000.0  from FY18.                                                                    
     Between FY14 and FY17,  the average actual expenditures                                                                    
     were $2,018.0 for AST Detachments.                                                                                         
                                                                                                                                
     To meet  the need for  increased AST presence  in rural                                                                    
     areas  of  the  state  while  balancing  the  continued                                                                    
     constraints on expenditures,  this amendment aligns the                                                                    
     Governor's requested  travel increment with  the 4-year                                                                    
    average (FY14-FY17) of actual travel expenditures.                                                                          
                                                                                                                                
     Although  this decrement  removes $773.2  UGF from  the                                                                    
     Governor's   FY19  request,   if   approved,  the   AST                                                                    
     Detachment's travel line will  still increase by $641.8                                                                    
     UGF from FY18                                                                                                              
                                                                                                                                
H DPS 5:                                                                                                                        
                                                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska State Trooper Detachments                                                                                           
                                                                                                                                
     H  DPS 5  - AST  Detachments  Wordage Requiring  Travel                                                                    
     Expenditures of $641.8 to Rural Communities                                                                                
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage:   Of   the   amount   appropriated   in   this                                                                    
     allocation,  $641,800 must  be expended  in the  travel                                                                    
     line  to  improve  law   enforcement  access  to  rural                                                                    
     communities.                                                                                                               
                                                                                                                                
     Explanation:  The  amount   reflected  in  the  wordage                                                                    
     requires that the  FY19 increase in the  travel line be                                                                    
     expended for AST travel to rural communities.                                                                              
                                                                                                                                
H DPS 6:                                                                                                                        
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
                                                                                                                                
     H  DPS 6  - Transfer  Funding from  AST Detachments  to                                                                    
     VPSO Program to Increase VPSO  Travel Linked to H DPS 3                                                                    
     -  Transfer  Funding  from   AST  Detachments  to  VPSO                                                                    
     Program to Increase VPSO Travel TrOut 345859                                                                               
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  Governor's FY19  budget  increases AST  Detachment                                                                    
     travel  by $2  million UGF  to improve  law enforcement                                                                    
     access   to    rural   communities.    This   amendment                                                                    
     appropriates a  portion ($585.0) of the  request to the                                                                    
     Village Public Safety Officer  Program to increase VPSO                                                                    
     travel to rural communities.  The 585.0 amount reflects                                                                    
     the  actual expenditure  for  total  grantee travel  in                                                                    
     FY17.                                                                                                                      
                                                                                                                                
H DPS 7:                                                                                                                        
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
                                                                                                                                
     H DPS  7 - VPSO Intent  that $585.0 be used  for Travel                                                                    
     to Rural Communities                                                                                                       
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage:  It  is  the intent  of  the  legislature  the                                                                    
     amount  of $585,000  be provided  to VPSO  grantees for                                                                    
     the purpose of travel to  rural communities. It is also                                                                    
     the intent  of the  legislature the  Department support                                                                    
     VPSO  contractors'  efforts  to provide  public  safety                                                                    
     services  to the  maximum  geographic area  surrounding                                                                    
     their duty station.                                                                                                        
                                                                                                                                
     Explanation: The  provision of public safety  in remote                                                                    
     rural   Alaska  comes   with   challenges  related   to                                                                    
     distance.  Intending the  amount of  $585,000 for  VPSO                                                                    
     contractors  to  be expended  for  VPSOs  to cover  the                                                                    
     maximum  geographic  area  practicable  clarifies  that                                                                    
     some VPSO  expenditures will  be used  be for  fuel and                                                                    
     travel. VPSO rovers and travel  from village to village                                                                    
     provides   a  significantly   broader  reach   for  the                                                                    
     Department.                                                                                                                
                                                                                                                                
Representative Kawasaki  relayed that these  amendments were                                                                    
all   related   to  an   amendment   that   was  passed   in                                                                    
subcommittee.                                                                                                                   
                                                                                                                                
Representative  Wilson   OBJECTED  for  discussion   on  the                                                                    
combined amendments.                                                                                                            
                                                                                                                                
Representative Kawasaki  explained that the  amendments were                                                                    
funds  transferred in  and transferred  out for  the Village                                                                    
Public  Safety  Officer  Program (VPSO),  the  Alaska  State                                                                    
Trooper  (AST)  travel  line  for  detachments,  and  intent                                                                    
language to ensure  that the VPSO funding  that was included                                                                    
as  part of  the  travel decrement  remained  with the  VPSO                                                                    
program  for  travel.  His  explanation  applied  to  all  4                                                                    
amendments.  In  his research  he  found  that part  of  the                                                                    
governor's Public Safety Action  Plan was to increase travel                                                                    
to improve law enforcement  access to rural communities. The                                                                    
governor requested $2 million.  He had reviewed the history.                                                                    
He reported  that in  the previous couple  of years  the AST                                                                    
detachment allocation travel line was  $1.9 million in FY 13                                                                    
and $2.6 million  in FY 14, and $2.2 million  in FY 15. $1.5                                                                    
million in  FY 16, and $1.8  million in FY 17.  In the prior                                                                    
year the  actual was $1.376 million.  The governor's request                                                                    
of the $2 million increment would  have put the amount up to                                                                    
$3.376  million, a  historical high.  He commented  that the                                                                    
percentage  of   travel  in  the  overall   budget  for  AST                                                                    
detachment  was  typically between  3.27  percent  in FY  09                                                                    
actuals  and  3.62   percent  in  FY  14   actuals.  If  the                                                                    
legislature were  to accept  the entire  $2 million  for AST                                                                    
travel  in  the  detachment section,  the  percentage  would                                                                    
increase  to  4.6.  Instead,  the  subcommittee  decided  to                                                                    
advance  $641,000  to   significantly  increase  the  travel                                                                    
amount.                                                                                                                         
                                                                                                                                
Representative Kawasaki  continued that  the second  part of                                                                    
the amendment dealt with moving  $585,000 to the VPSO grants                                                                    
and benefits  line. The  subcommittee included  language for                                                                    
the   VPSO  program   to   be  able   use   the  money   for                                                                    
transportation to remote villages.  There was a decrement of                                                                    
about  $773,000. The  Alaska  State  Troopers would  receive                                                                    
$642,00 of the $2 million for detachment traveling.                                                                             
                                                                                                                                
4:12:21 PM                                                                                                                    
                                                                                                                                
Representative  Ortiz  asked  for  the  net  impact  of  the                                                                    
decrements    and   increments.    Representative   Kawasaki                                                                    
responded  that the  governor in  the  Public Safety  Action                                                                    
Plan  had   requested  $2  million  to   improve  rural  law                                                                    
enforcement which  appeared in the AST  detachments line for                                                                    
travel.  The  subcommittee  allocated  $642,000  of  the  $2                                                                    
million  request. It  also allocated  $585,000  to the  VPSO                                                                    
budget with  the anticipation that  the money would  be used                                                                    
for  travel  to  remote Alaska.  Finally,  the  subcommittee                                                                    
removed $773,000 from the original $2 million request.                                                                          
                                                                                                                                
Representative Wilson wanted to  verify the amendments being                                                                    
discussed.  Representative  Kawasaki  replied  that  he  was                                                                    
discussing Amendments  H DPS 3  through H DPS 7.  The reason                                                                    
why  it  looked  odd  was  because there  had  to  be  money                                                                    
transferred in and  money transferred out as  well as intent                                                                    
language.                                                                                                                       
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
Co-Chair Foster OBJECTED.                                                                                                       
                                                                                                                                
Co-Chair  Foster  was  objecting  because  people  in  rural                                                                    
Alaska always  wanted to see public  safety was strengthened                                                                    
to  the  greatest extent  possible.  He  supported the  full                                                                    
funding of the governor's request.                                                                                              
                                                                                                                                
Co-Chair Foster MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Pruitt,  Tilton, Wilson,  Grenn, Kawasaki,  Ortiz,                                                                    
Seaton                                                                                                                          
OPPOSED: Gara, Guttenberg, Foster                                                                                               
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt Amendments H  DPS 3, H DPS 4, H DPS 5, H                                                                    
DPS 6, and H DPS 7 PASSED (7/3).                                                                                                
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DPS 8                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
                                                                                                                                
     H DPS 8 - Maintain VPSO Rural Firefighter Specialist                                                                       
     Training in Sitka                                                                                                          
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is the intent of the legislature that the                                                                      
     VPSO Rural Firefighter Specialist Training remain in                                                                       
     Sitka.                                                                                                                     
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki explained  the amendment  contained                                                                    
intent  language stating  that  the  VPSO rural  firefighter                                                                    
specialist  training  would  remain   in  Sitka.  There  was                                                                    
intense debate over  the hour spent in  subcommittee on this                                                                    
one  language  amendment.   He  reported  receiving  further                                                                    
information  from  the  department  and  a  memo  that  just                                                                    
reached  people's desk  in the  current  day regarding  cost                                                                    
comparisons  in   shifting  the  firefighter   training  and                                                                    
Emergency  Trauma Technician  (ETT) training  from Sitka  to                                                                    
Palmer.                                                                                                                         
                                                                                                                                
Co-Chair Seaton  asked Representative Kawasaki  to summarize                                                                    
the memo  since members  did not have  it in  their packets.                                                                    
Representative  Kawasaki reported  that the  previous year's                                                                    
actuals to  train 10 VPSOs  at the firefighter  training and                                                                    
12  VPSO  at  the  ETT  training in  Sitka  cost  the  state                                                                    
$52,722. The total cost to  train 13 VPSOs in both trainings                                                                    
in  Palmer was  estimated  to be  $56,862. The  subcommittee                                                                    
concluded  that there  was not  a  savings or  a major  cost                                                                    
difference.  However,  having  it in  Sitka  was  beneficial                                                                    
because the  fire department  in Sitka  volunteered training                                                                    
services.                                                                                                                       
                                                                                                                                
Representative  Pruitt asked  if  transportation costs  were                                                                    
included. He also asked the length of the training.                                                                             
                                                                                                                                
4:18:46 PM                                                                                                                    
                                                                                                                                
KELLY   HOWELL,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  PUBLIC SAFETY,  answered that  the                                                                    
Rural  Fire  Protection  Specialist Training  in  Sitka  was                                                                    
2 weeks long.                                                                                                                   
                                                                                                                                
Representative  Pruitt  asked about  the  cost  per day  and                                                                    
whether  it included  transportation.  Ms.  Howell had  just                                                                    
received  the information  while sitting  in committee.  She                                                                    
had not  had a  chance to  review it.  She believed  that it                                                                    
included the  cost of travel  for instructors to  Sitka. The                                                                    
travel  to get  VPSO to  the training  had already  occurred                                                                    
because  the  two-week   Rural  Fire  Protection  Specialist                                                                    
Training was  added onto the basic  law enforcement training                                                                    
that they attend.                                                                                                               
                                                                                                                                
Representative Wilson  wanted to hear from  the commissioner                                                                    
about why  DPS thought  it was more  beneficial to  have the                                                                    
training in  Palmer. He had  indicated in  subcommittee that                                                                    
it  was not  just about  money, but  about the  relationship                                                                    
between rural firefighters and VPSOs.                                                                                           
                                                                                                                                
4:20:35 PM                                                                                                                    
                                                                                                                                
WALT  MONEGAN, COMMISSIONER,  DEPARTMENT  OF PUBLIC  SAFETY,                                                                    
conveyed  that the  department  felt there  was  a value  to                                                                    
bringing the  training to Palmer. The  department brought in                                                                    
rural  firefighters from  outlying areas.  They got  to work                                                                    
side-by-side with  VPSOs in the  training in  Palmer, unlike                                                                    
when the VPSOs  received their training in  Sitka. The value                                                                    
was learning,  understanding, and  working in  a cooperative                                                                    
manner and developing relationships.                                                                                            
                                                                                                                                
Representative Wilson responded that  the money was almost a                                                                    
wash  because  the  VPSOs  were  already  at  the  location,                                                                    
although they  would fly  out of  Anchorage. She  thought it                                                                    
was  important in  developing relationships  to do  so in  a                                                                    
non-emergent  situation.  She  suggested that  she  was  not                                                                    
looking to move  the program away from Sitka,  just the two-                                                                    
week training because other people  would be going to Palmer                                                                    
for   training.  She   thought  relationship   building  was                                                                    
important and could only be obtained in Palmer.                                                                                 
                                                                                                                                
Co-Chair  Seaton   asked  for  the  vote   in  subcommittee.                                                                    
Representative Kawasaki reported  that the subcommittee vote                                                                    
was 5/4.                                                                                                                        
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg, Kawasaki, Ortiz, Foster, Seaton                                                                     
OPPOSED: Tilton, Wilson, Grenn, Pruitt                                                                                          
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION to adopt H DPS 8 PASSED (6/4).                                                                                       
                                                                                                                                
Representative  Kawasaki MOVED  to ADOPT  Amendment H  DPS 9                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Village Public Safety Officer Program                                                                                      
                                                                                                                                
     H DPS  9 - Disperse  funding for VPSO Program  to grant                                                                    
     recipients                                                                                                                 
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Department disperse funding meant  for the VPSO Program                                                                    
     to VPSO grant recipients.  VPSO grantees are encouraged                                                                    
     to  use the  funding for  recruitment and  retention of                                                                    
     VPSOs,  however  they  may  use  the  funds  for  other                                                                    
     purposes  within  their  mission, such  as  operational                                                                    
     costs  to better  utilize filled  positions or  housing                                                                    
     multiple VPSOs in  a single community, if  judged to be                                                                    
     more beneficial to public safety.                                                                                          
                                                                                                                                
     Explanation:  The  VPSO  program   is  vital  to  rural                                                                    
     communities. This  program should  be fully  funded and                                                                    
     the  efforts to  meet recruitment  and retention  goals                                                                    
     should be supported.                                                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Kawasaki  explained   that  the   amendment                                                                    
contained intent language dealing  with the VPSO program and                                                                    
that the  department should disperse  the funding  meant for                                                                    
the  VPSO  program  to grant  recipients.  The  subcommittee                                                                    
heard that in the following  year the program anticipated $1                                                                    
million back from the VPSO  program. The discussion had been                                                                    
that there were  several requests that had  been denied over                                                                    
the prior year. The amendment passed 8/1 in subcommittee.                                                                       
                                                                                                                                
Representative  Wilson  commented  that the  department  was                                                                    
carefully  looking after  the money.  The way  the amendment                                                                    
was  written   it  appeared  the  VPSO   program  was  doing                                                                    
something wrong.  However, she opined  that it was  not. She                                                                    
thought  the  amendment clarified  how  the  money would  be                                                                    
spent.                                                                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DPS 9 was ADOPTED.                                                                        
                                                                                                                                
4:24:45 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  MOVED to  ADOPT Amendment H  DPS 10                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Support                                                                                                          
     Commissioner's Office                                                                                                      
                                                                                                                                
     H DPS  10 - Dec to  Align the FY19 Budget  for Printing                                                                    
     Charges & Training Materials with  FY16 and FY17 Actual                                                                    
     Expenditures                                                                                                               
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Actual  expenditures  in  the Services  line  item  for                                                                    
     Other   Services   (printing   charges   for   training                                                                    
     materials)  were $10.0  in FY  16 and  $32.0 in  FY 17.                                                                    
     This amendment reduces this allocation  by $100.0 to an                                                                    
     FY  19  budget request  of  $75.0  which is  twice  the                                                                    
     amount of FY 2017 actual expenditures                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Kawasaki explained  that  the amendment  was                                                                    
offered  by   Representative  Wilson  in   the  subcommittee                                                                    
process. She had  scrubbed the budget and  found that actual                                                                    
expenditures  in the  service line  item for  other services                                                                    
printing charges.  She requested an average  time period and                                                                    
asked  to  reduce  the  item   by  $100,000.  There  was  no                                                                    
objection from the department, and  the amendment was passed                                                                    
without objection by the subcommittee.                                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DPS 10 was ADOPTED.                                                                       
                                                                                                                                
Representative Kawasaki  MOVED to ADOPT Amendment  H DPS 11,                                                                    
H DPS 12, and H DPS 13 (copies on file):                                                                                        
                                                                                                                                
H DPS 11:                                                                                                                       
                                                                                                                                
     Statewide Support                                                                                                          
     Alaska Wing Civil Air Patrol                                                                                               
                                                                                                                                
     H  DPS 11  -  Alaska Wing  Civil  Air Patrol  Decrement                                                                    
     (Replaced with IncOTI)                                                                                                     
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Although  the increment  provides two-thirds  the level                                                                    
     of funding  in FY19  that the Governor  requested, this                                                                    
     amendment  adds intent  language that  the Alaska  Wing                                                                    
     Civil  Air Patrol  find  non-state  funding sources  to                                                                    
     support  its  operations.  In anticipation  of  support                                                                    
     from non-state  funding sources  in FY20,  the one-time                                                                    
     increment  will remove  all UGF  funding from  the base                                                                    
     budget in FY20.                                                                                                            
                                                                                                                                
H DPS 12:                                                                                                                       
                                                                                                                                
     H DPS  12 -  Replace 2/3 of  FY19 Funding  Request with                                                                    
     IncOTI (Non-State Funding Should Be Used in FY20)                                                                          
     Offered by Representative Kawasaki                                                                                         
     Although  the increment  provides two-thirds  the level                                                                    
     of funding  in FY19  that the Governor  requested, this                                                                    
     amendment adds intent language that the Alaska                                                                             
                                                                                                                                
H DPS 13:                                                                                                                       
                                                                                                                                
     H  DPS 13  - AK  Civil  Air Patrol  Intent to  Actively                                                                    
     Search for Non-State Funding                                                                                               
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Alaska Wing  Civil Air Patrol actively  search for non-                                                                    
     state funding to support its operations.                                                                                   
                                                                                                                                
     Explanation:  Although  the   increment  provides  two-                                                                    
     thirds the level  of funding in FY19  that the Governor                                                                    
     requested,  this amendment  adds  intent language  that                                                                    
     the  Alaska Wing  Civil Air  Patrol  to find  non-state                                                                    
     funding   sources  to   support   its  operations.   In                                                                    
     anticipation of support  from non-state funding sources                                                                    
     in  FY20, the  one-time increment  will remove  all UGF                                                                    
     funding from the base budget in FY20.                                                                                      
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Kawasaki   reviewed  the   amendments.   He                                                                    
reported that  the amendments were  offered from  the member                                                                    
from  Sitka. In  researching the  amendments, he  found that                                                                    
very few funds were non-state  funding sources. He wanted to                                                                    
light a fire  under the Alaska wing of the  Civil Air Patrol                                                                    
to find other sources of  revenue. The amendment that passed                                                                    
8/1  reduced the  amount  of state  support  for the  Alaska                                                                    
Civil  Air Patrol  in a  one-time increment.  Hopefully they                                                                    
would be  able to find  some funds outside of  state funding                                                                    
sources.                                                                                                                        
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being  NO OBJECTION,  Amendments H DPS  11, H  DPS 12,                                                                    
and H DPS 13 were ADOPTED.                                                                                                      
                                                                                                                                
4:27:15 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  MOVED to  ADOPT Amendment H  DPS 14                                                                    
and H DPS 15 (copies on file):                                                                                                  
                                                                                                                                
     Statewide Support                                                                                                          
     Criminal Justice Information Systems Program                                                                               
                                                                                                                                
     H DPS  14 - Add  Temporary Funding for 3  PFT Positions                                                                    
     for NIBRS Data Entry (FY19-FY21)                                                                                           
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  department requested  $595.0 and  6 PFT  positions                                                                    
     for a new  unit to review law  enforcement case reports                                                                    
     in  the Alaska  Records  Management  System (ARMS)  for                                                                    
     completeness, and work to ensure  that data can be used                                                                    
     for enhanced  crime statistical  reporting by  all ARMS                                                                    
     users.  The  data  will be  reported  in  the  National                                                                    
     Incident  Based Reporting  System (NIBRS)  format which                                                                    
     will   allow  for   more   timely   and  robust   crime                                                                    
     statistical  information  for  better  agency-to-agency                                                                    
     and state-to-state crime statistics reporting.                                                                             
                                                                                                                                
     While  the subcommittee  recognizes  that creating  new                                                                    
     systems is  labor intensive,  adding six  new positions                                                                    
     to the  base budget  with no  further scrutiny  did not                                                                    
     seem to be prudent.                                                                                                        
                                                                                                                                
     This  amendment adds  the funding  level and  positions                                                                    
     requested  by the  Governor, however,  the funding  and                                                                    
     positions will  be removed from the  FY22 budget unless                                                                    
     the  department  provides justification  for  continued                                                                    
     funding.                                                                                                                   
                                                                                                                                
                                                                                                                                
     H DPS  15 -  Replace Base Funding  for 3PFT  NIBRS Data                                                                    
     Entry Positions with IncT Funding                                                                                          
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     The  department requested  $595.0 and  6 PFT  positions                                                                    
     for a new  unit to review law  enforcement case reports                                                                    
     in  the Alaska  Records  Management  System (ARMS)  for                                                                    
     completeness, and work to ensure  that data can be used                                                                    
     for enhanced  crime statistical  reporting by  all ARMS                                                                    
     users.  The  data  will be  reported  in  the  National                                                                    
     Incident  Based Reporting  System (NIBRS)  format which                                                                    
     will   allow  for   more   timely   and  robust   crime                                                                    
     statistical  information  for  better  agency-to-agency                                                                    
     and state-to-state crime statistics reporting.                                                                             
                                                                                                                                
     While  the subcommittee  recognizes  that creating  new                                                                    
     systems is  labor intensive,  adding six  new positions                                                                    
     to the  base budget  with no  further scrutiny  did not                                                                    
     seem to be prudent.                                                                                                        
     This  amendment adds  the funding  level and  positions                                                                    
     requested  by the  Governor, however,  the funding  and                                                                    
     positions will  be removed from the  FY22 budget unless                                                                    
     the  department  provides justification  for  continued                                                                    
     funding.                                                                                                                   
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki explained both amendments.                                                                              
                                                                                                                                
Representative Wilson was concerned  with adding people to a                                                                    
system that  they had  not started yet.  She thought  it was                                                                    
premature. Representative Kawasaki  countered that there had                                                                    
been  some  discussion  in committee  on  the  topic,  which                                                                    
resulted in the number of  positions being reduced from 6 to                                                                    
3. The  reason why he  thought the positions  were necessary                                                                    
was to get things up  and running. Currently, the department                                                                    
was  using  4  permanent  full-time  positions  to  help  in                                                                    
getting  the records  system updated  to the  point that  it                                                                    
could be  consolidated into the new  national incident-based                                                                    
reporting system, necessary in 2021.                                                                                            
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Grenn, Guttenberg,  Kawasaki, Ortiz, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Tilton, Wilson, Pruitt                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION  PASSED (7/3). Amendments H  DPS 14 and H  DPS 15                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
4:30:48 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  MOVED to  ADOPT Amendment H  DPS 16                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Statewide Support                                                                                                          
     Laboratory Services                                                                                                        
                                                                                                                                
     H DPS 16 - Intent that the Crime Lab Actively Seek                                                                         
     Rental Arrangements from Federal, Municipal and other                                                                      
     State Agencies                                                                                                             
                                                                                                                                
     Offered by Representative Kawasaki                                                                                         
                                                                                                                                
     Wordage: It is  the intent of the  legislature that the                                                                    
     Department of Public  Safety actively seek arrangements                                                                    
     to rent space in  the Alaska Scientific Crime Detection                                                                    
     Laboratory  to  municipalities, federal  agencies,  and                                                                    
     other state agencies.                                                                                                      
                                                                                                                                
     Explanation:  The  Alaska  Scientific  Crime  Detection                                                                    
     Laboratory was  designed to handle capacity  beyond the                                                                    
     laboratory's current needs.  This amendment directs the                                                                    
     Department   of   Public   Safety  to   actively   seek                                                                    
     municipalities,  federal  agencies,   and  other  state                                                                    
     agencies  to  rent  the   underutilized  space  to  the                                                                    
     highest  cost  benefit  ratio  possible,  so  that  the                                                                    
     laboratory operates in a more cost-effective manner.                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Kawasaki read from the amendment (see                                                                            
above). He reported that the amendment passed without                                                                           
objection in the subcommittee process.                                                                                          
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H DPS 16 was ADOPTED.                                                                       
                                                                                                                                
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                           
                                                                                                                                
4:32:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster read the subcommittee report for the                                                                            
Department of Transportation and Public Facilities:                                                                             
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Transportation  and  Public  Facilities                                                                    
     held 5  meetings with the Department  of Transportation                                                                    
     and  Public Facilities  during the  review of  the FY19                                                                    
     budget request.                                                                                                            
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the Department of  Transportation submits a recommended                                                                    
     operating  budget  for  FY2019  to  the  House  Finance                                                                    
     Committee as follows:                                                                                                      
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $178,621.5                                                                                
     Designated General Funds (DGF) $97,972.1                                                                                   
     Other Funds $306,846.7                                                                                                     
     Federal Funds $2,118.2                                                                                                     
     Total $585,558.5                                                                                                           
                                                                                                                                
     The  Unrestricted General  Fund  (UGF) difference  from                                                                    
     the  FY2015   Management  Plan  to  the   FY2019  House                                                                    
     Subcommittee  budget recommendation  is a  reduction of                                                                    
     $99,983.1, a 35.9 percent decrease.                                                                                        
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 2,912                                                                                                  
     Permanent Part-time 337                                                                                                    
     Temporary 130                                                                                                              
     Total 3,379                                                                                                                
                                                                                                                                
     There were  no Governor  amendments for  the Department                                                                    
     of Transportation and Public Facilities.                                                                                   
                                                                                                                                
     The House  Finance Subcommittee  for the  Department of                                                                    
     Transportation   and   Public   Facilities   recommends                                                                    
     funding the  Alaska Marine Highway  System (AMHS)  at a                                                                    
     level  that provides  predictability  and stability  in                                                                    
     their service levels.                                                                                                      
                                                                                                                                
     1. In  addition to  the Governor's request;  the Alaska                                                                    
     Marine  Highway Fund  should  be  capitalized with  $35                                                                    
     million.                                                                                                                   
     a. This funding  should be available for  the AMHS peak                                                                    
     performance months of May through September;                                                                               
     b.  Ensuring funding  through  peak performance  months                                                                    
     provides  reliable scheduling,  resulting in  increased                                                                    
     ridership and therefore increased cost recovery.                                                                           
                                                                                                                                
4:36:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT Amendment H DOT 1 and                                                                            
H DOT 2 (copied on file):                                                                                                       
                                                                                                                                
H DOT 1:                                                                                                                        
                                                                                                                                
     Highways,  Aviation  and Facilities  Southcoast  Region                                                                    
     Highways and Aviation                                                                                                      
                                                                                                                                
     H DOT 1 - Add  Base Increment Transferring Adak Airport                                                                    
     Operating Costs from Capital to Operating Budget                                                                           
                                                                                                                                
     Offered by Representative Foster                                                                                           
                                                                                                                                
     If Alaska  is to  continue operating the  Adak airport,                                                                    
     necessary funds  need to be  included in  the operating                                                                    
     budget.  There is  $52.0  remaining  of the  investment                                                                    
     earnings on the original $10 million as a one-time                                                                         
     increment.                                                                                                                 
                                                                                                                                
H DOT 2:                                                                                                                        
                                                                                                                                
     H DOT 2 - Add One-time Increment Transferring Adak                                                                         
     Airport Operating Costs from Capital to Operating                                                                          
     Budget                                                                                                                     
                                                                                                                                
     Offered by Representative Foster                                                                                           
                                                                                                                                
     If Alaska  is to  continue operating the  Adak airport,                                                                    
     necessary funds  need to be  included in  the operating                                                                    
     budget.  There is  $52.0  remaining  of the  investment                                                                    
     earnings on the original $10 million.                                                                                      
                                                                                                                                
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair  Foster   explained  that  both   amendments  added                                                                    
increments transferring Adak Airport  costs to the operating                                                                    
budget. The first amendment was  an increment of $690,000 in                                                                    
UGF,  fund  source 1004  UGF.  The  second amendment  was  a                                                                    
one-time  increment of  $52,000  for federal  funds, with  a                                                                    
fund source of  1190 Adak Air. The two  amendments moved the                                                                    
operational  costs  of  Adak   Airport  into  the  operating                                                                    
budget.  Prior, all  operational  costs for  the airport  at                                                                    
Adak  have been  in  the capital  budget.  The increment  of                                                                    
$52,000 was  the remaining total of  the investment earnings                                                                    
of the  original $10 million  that Alaska had  received when                                                                    
the US  Navy withdrew from  the Adak Airport. The  state had                                                                    
slowly used  up the  available funds  and would  exhaust the                                                                    
account  in the  current year.  Therefore, the  Adak Airport                                                                    
needed to be moved from  the capital budget to the operating                                                                    
budget like all the other rural airports throughout Alaska.                                                                     
                                                                                                                                
Representative  Wilson  asked  if  the  state  received  any                                                                    
federal  funding for  the Adak  Airport or  if landing  fees                                                                    
were paid  by users. Co-Chair  Foster responded that  he was                                                                    
not aware of any.                                                                                                               
                                                                                                                                
4:38:22 PM                                                                                                                    
                                                                                                                                
AMANDA  HOLLAND, ACTING  DEPUTY COMMISSIONER,  DEPARTMENT OF                                                                    
TRANSPORTATION  AND  PUBLIC  FACILITIES, answered  that  the                                                                    
Adak Airport  had been funded  through receipts from  the US                                                                    
Department of Defense. The state's  rural airport system had                                                                    
some funding outside  of UGF. There were  some rural airport                                                                    
leasing receipt monies.                                                                                                         
                                                                                                                                
Representative  Wilson  asked  who  used  the  airport.  Ms.                                                                    
Holland  replied that  the airport  was  used by  residents,                                                                    
Alaskans, and  tourist. It was  a popular stop  for hunters.                                                                    
There  were  also  some   commercial  businesses  using  the                                                                    
airport. Co-Chair  Foster added  that there were  no landing                                                                    
fees and the population was about 200 people.                                                                                   
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Grenn, Guttenberg, Ortiz, Foster, Seaton                                                                        
OPPOSED: Wilson, Pruitt, Tilton                                                                                                 
                                                                                                                                
Representative  Kawasaki  and Representative  Thompson  were                                                                    
absent from the vote.                                                                                                           
                                                                                                                                
The MOTION  to adopt Amendments H  DOT 1 and H  DOT 2 PASSED                                                                    
(6/3).                                                                                                                          
                                                                                                                                
^UNIVERSITY OF ALASKA                                                                                                         
                                                                                                                                
4:41:02 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  read the subcommittee  report for                                                                    
the University of Alaska:                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     University  of   Alaska  held   6  meetings   with  the                                                                    
     University  of Alaska  during the  review  of the  FY19                                                                    
     budget request.                                                                                                            
                                                                                                                                
     The Chair of the  House Finance Budget Subcommittee for                                                                    
     the  University of  Alaska  recommends  that the  House                                                                    
     Finance  Committee accept  the  University of  Alaska's                                                                    
     FY19 Amended Budget as follows:                                                                                            
                                                                                                                                
     Fund Source (dollars are in thousands):                                                                                    
     Unrestricted General Funds (UGF)   336,033.5                                                                               
     Designated General Funds (DGF)     331,131.2                                                                               
     Other Funds    86,530.4                                                                                                    
     Federal Funds 143,852.7                                                                                                    
     Total     897,547.8                                                                                                        
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY15                                                                    
     Management   Plan  to   the  FY19   House  Subcommittee                                                                    
     Recommended budget is a reduction  of $34.56 million, a                                                                    
     decrease of 9.3 percent.                                                                                                   
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY18                                                                    
     Management Plan to the FY19  University of Alaska House                                                                    
     Finance  Subcommittee   recommended  $19   million,  an                                                                    
     increase of 6.0 percent.                                                                                                   
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 3,993                                                                                                  
     Permanent Part-time 189                                                                                                    
     Temporary 0                                                                                                                
     Total     4,182                                                                                                            
                                                                                                                                
     The   following  statutory   recommendation  are   also                                                                    
     submitted to the House Finance Committee:                                                                                  
                                                                                                                                
     1.   Amend  AS  14.42.033 (a)  to  read  (a) Except  as                                                                    
     provided  under  (b) and  (c)  of  this section,  as  a                                                                    
     condition  of  participating  in  a  medical  education                                                                    
     program  under  AS  14.42.033,  a  program  participant                                                                    
     shall agree to either return  to the state and actively                                                                    
     engage  in  professional   medical  practice  or  repay                                                                    
     financial support  provided by  the state on  behalf of                                                                    
     the program  participant. The  financial support  to be                                                                    
     repaid is equal to the  full [50 percent of the] amount                                                                    
     paid for each  program participant by the  state to the                                                                    
     contracting  postsecondary institution,  plus interest.                                                                    
     The  rate of  interest  is equal  to  the 12th  Federal                                                                    
     Reserve District discount rate in  effect on March 1 of                                                                    
     the  year in  which the  financial support  is provided                                                                    
     plus  two  percentage  points. Interest  imposed  under                                                                    
     this  subsection  begins  to  accrue  when  the  person                                                                    
     terminates   studies   under  the   medical   education                                                                    
     program.  Accrued  interest  shall   be  added  to  the                                                                    
     principal balance  of the  repayment obligation  at the                                                                    
     time the  borrower is  obligated to  commence repayment                                                                    
     and at the end of a deferment period.                                                                                      
                                                                                                                                
Representative Wilson queried the amount of the UGF budget                                                                      
for   the  University   of  Alaska   in   the  prior   year.                                                                    
Representative Guttenberg replied that it was $317 million.                                                                     
                                                                                                                                
Representative Guttenberg MOVED to ADOPT Amendment H UOA 1                                                                      
(copy on file):                                                                                                                 
                                                                                                                                
     Budget Reductions/Additions - Systemwide                                                                                   
                                                                                                                                
     H UOA 1 - University of Alaska Increment                                                                                   
                                                                                                                                
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     The   FY19   Governor's   Operating  Budget   for   the                                                                    
     University of  Alaska is $317  million, while  the FY19                                                                    
     Board of  Regent's budget request totals  $341 million.                                                                    
     This  will  add $19  million  to  partially bridge  the                                                                    
     budget shortfall.                                                                                                          
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Guttenberg  explained that the  University of                                                                    
Alaska  budget was  like  no other.  The  Board of  Regents'                                                                    
budget  that   was  adopted  was  a   public  document.  The                                                                    
legislature  was able  to see  every increment  and how  the                                                                    
campuses  and programs  were managed.  The legislature  only                                                                    
got to  see department budgets  after they went  through the                                                                    
Office  of  Management and  Budget.  He  suggested that  the                                                                    
University's  budget was  more transparent  than any  of the                                                                    
other departments. Over  the past 10 years, the  cuts to the                                                                    
UA  budget  had been  devastating.  The  University lost  50                                                                    
programs  and student  enrollment decreased.  The University                                                                    
had brought  in about  $1 billion  in research  revenue over                                                                    
the  same period.  The University  requested an  increase of                                                                    
$24 million.  The amendment started  out at $24  million and                                                                    
was reduced  to reflect  the fact that  the state  could not                                                                    
afford it.  He continued  that the  return on  investment in                                                                    
Alaska was  significant. The committee  could only  agree on                                                                    
$19 million.                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  asked  if  Representative  Guttenberg  was                                                                    
addressing  Amendment  H  UOA 1.  Representative  Guttenberg                                                                    
responded in the affirmative.                                                                                                   
                                                                                                                                
4:45:37 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:46:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Seaton   explained  that  there  was   a  two-page                                                                    
subcommittee  narrative report.  The back  page was  labeled                                                                    
differently. He indicated the  committee should be referring                                                                    
to  the   agency  transaction  detail  sheet   in  the  2018                                                                    
Legislative  Operating  Budget   House  Subcommittee  Amends                                                                    
column.  The  time stamp  on  the  bottom  of the  page  was                                                                    
2018-02-22 18:14:20.  Amendment H  UOA 1 was  not as  it was                                                                    
presented  in  the  narrative   report.  The  committee  was                                                                    
considering  them as  they appeared  on the  spreadsheet. He                                                                    
asked  Representative  Guttenberg  to review  his  amendment                                                                    
again. Representative Guttenberg  relayed that the amendment                                                                    
reflected an increase of $19 million over the prior year.                                                                       
                                                                                                                                
Representative Wilson  reported that  the governor  kept the                                                                    
University whole  by not  proposing any  cuts. She  was also                                                                    
concerned that enrollment was down  but was not convinced it                                                                    
was due to reductions. She  opined that it was a competitive                                                                    
market.  She understood  why the  regents wanted  additional                                                                    
money.  However,   the  state  could  not   afford  it.  She                                                                    
appreciated the discussions and  thought the state needed to                                                                    
become more competitive.                                                                                                        
                                                                                                                                
Vice-Chair  Gara  commented  that the  University  had  been                                                                    
slashed  over  the  past  several years  in  excess  of  $50                                                                    
million  not  accounting   for  inflation.  Professors  were                                                                    
leaving,  and  students  were  choosing  to  attend  college                                                                    
elsewhere.  He thought  the state  needed  to reverse  those                                                                    
trends. He appreciated the amendment.                                                                                           
                                                                                                                                
4:49:54 PM                                                                                                                    
                                                                                                                                
Representative Thompson  stated that the  University's Board                                                                    
of  Regents requested  $341  million to  stay  whole and  to                                                                    
advance their new  plans to make the  University better. The                                                                    
University's numbers  showed that  a budget of  $317 million                                                                    
requested  by   the  governor,  with  inflation   and  other                                                                    
automatic  increases, would  fall short  by $9  million. The                                                                    
University  had already  lost 5000  students. He  speculated                                                                    
that  students   witnessed  programs  being  cut   and  were                                                                    
reluctant  to  attend  for  fear  of  other  programs  being                                                                    
deleted. He  thought the idea  of students going  outside of                                                                    
the state  for their education was  devastating. He believed                                                                    
the state's future  was dependent upon its  young people. He                                                                    
would   be  supporting   the   amendment.  Previously,   the                                                                    
University's budget was $375  million. The current amendment                                                                    
was a good and necessary compromise.                                                                                            
                                                                                                                                
Representative  Grenn agreed  with Representative  Thompson.                                                                    
He thought  it was  a good compromise.  He thought  a strong                                                                    
university system was needed for the economy.                                                                                   
                                                                                                                                
Representative Ortiz  concurred with  the prior  2 speakers.                                                                    
He agreed with  the representative from North  Pole that the                                                                    
University needed  to stay competitive.  He asserted  that a                                                                    
university that  was cutting its  programs and  reducing its                                                                    
offerings  was  not  competitive. He  provided  examples  of                                                                    
incentives  to attract  students. He  reported hearing  that                                                                    
less  students  were staying  in  Alaska  to attend  college                                                                    
because   the   University   of  Alaska   system   was   not                                                                    
competitive.  He would  be supporting  the  amendment as  an                                                                    
economic  investment in  Alaska's education  system and  its                                                                    
youth.                                                                                                                          
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN   FAVOR:  Gara,   Grenn,  Guttenberg,   Kawasaki,  Ortiz,                                                                    
Thompson, Foster, Seaton                                                                                                        
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
The MOTION Amendment H UOA 1 PASSED (8/3).                                                                                      
                                                                                                                                
4:54:05 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H UOA 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Anchorage Campus                                                                                                           
     H UOA  2 -  Add funding to  maintain operations  of the                                                                    
     Alaska Justice Information Center (AJiC)                                                                                   
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     These  funds, in  conjunction  with  the Alaska  Mental                                                                    
     Health  Trust's $225.0  MHTAAR,  are  required for  the                                                                    
     operations  of the  Alaska  Justice Information  Center                                                                    
     whose mission  is to "compile,  analyze, and  report on                                                                    
     criminal   justice    topics   to    policymakers   and                                                                    
     practitioners  in  order   to  improve  public  safety,                                                                    
     increase  criminal justice  system accountability,  and                                                                    
     to reduce recidivism."                                                                                                     
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Guttenberg  explained   the  amendment.  The                                                                    
amount was left  out of the original budget.  It used Mental                                                                    
Health  Trust  Authority  Authorized  Receipts  (MHTAAR)  to                                                                    
match funds for the Alaska Justice Information Center.                                                                          
                                                                                                                                
Representative  Wilson asked  if  it was  a required  match.                                                                    
Representative  Guttenberg  responded  that it  brought  the                                                                    
state back to what it did the previous year.                                                                                    
                                                                                                                                
Representative Wilson restated  her question. Representative                                                                    
Guttenberg  responded  that it  was  a  part of  the  Alaska                                                                    
Mental Health  Trust Authority to be  providing the service.                                                                    
It had been something done in  the previous year, but it had                                                                    
been left out of the budget.                                                                                                    
                                                                                                                                
Representative Thompson  was unclear about the  comment made                                                                    
by  the bill  sponsor  regarding  compiling, analyzing,  and                                                                    
reporting  on  criminal  justice  topics. He  asked  if  the                                                                    
legislature had received a report  regarding the prior year.                                                                    
He  was  confused.  Representative Guttenberg  believed  the                                                                    
amount  was  the  ongoing operations  costs  of  the  Alaska                                                                    
Justice  Information  System.  He encouraged  Mr.  Baker  to                                                                    
further elaborate.                                                                                                              
                                                                                                                                
Co-Chair  Seaton  asked for  the  subcommittee  vote on  the                                                                    
amendment.  Representative  Guttenberg  responded,  "Without                                                                    
objection."                                                                                                                     
                                                                                                                                
4:56:26 PM                                                                                                                    
                                                                                                                                
MILES BAKER,  DIRECTOR, GOVERNMENT RELATIONS,  UNIVERSITY OF                                                                    
ALASKA,  relayed  that it  was  an  item  that came  to  the                                                                    
University through the mental  health budget. The University                                                                    
did not  have a say about  what was submitted by  the Alaska                                                                    
Mental  Health Trust  Authority (AMHTA)  board. The  item in                                                                    
the amendment  was an investment  made in the  previous year                                                                    
that  included  $225,000 from  the  AMHTA  receipts. It  had                                                                    
$150,000  in a  general fund  match for  the Alaska  Justice                                                                    
Information Center for  work they were doing  related to the                                                                    
crime bill. It was  the University's understanding that when                                                                    
the bill came over, it was  intended to be a continuation of                                                                    
that  funding. However,  the $150,000  general fund  portion                                                                    
did not  make it into the  budget. He thought it  had been a                                                                    
technical   error.  It   had  been   pointed   out  in   the                                                                    
subcommittee that  the AMHTA  board identified  the mistake.                                                                    
He talked with OMB and had  the amount submitted as a budget                                                                    
increment. It  would continue to  work with flat  funding as                                                                    
it had in the prior year.                                                                                                       
                                                                                                                                
Representative Wilson  asked if the  cost of the  report was                                                                    
$300,000 total.  Mr. Baker did  not feel qualified  to speak                                                                    
to  the work  being done  for the  increment. He  could only                                                                    
speak  to  what  happened  in the  budget  process.  He  was                                                                    
unfamiliar with  what the Alaska Justice  Information Center                                                                    
was  doing regarding  the  increment. Representative  Wilson                                                                    
commented that it was only $300,000.                                                                                            
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn Guttenberg, Kawasaki, Ortiz, Gara, Seaton                                                                       
Foster                                                                                                                          
OPPOSED: Pruitt, Thompson, Tilton, Wilson                                                                                       
                                                                                                                                
The MOTION to adopt Amendment H UOA 2 PASSED (7/4).                                                                             
                                                                                                                                
Representative Guttenberg  indicted he  had one  other item.                                                                    
He  pointed  to  page  2   of  the  report  narrative  which                                                                    
contained  a statutory  recommendation. It  was not  part of                                                                    
the budget  process. The committee  adopted it and  moved it                                                                    
along.  He explained  that for  students  that received  the                                                                    
Alaska WWAMI Regional  Medical Education Program Scholarship                                                                    
but  did not  return, they  would  have to  pay 100  percent                                                                    
rather  than 50  percent. As  a statutory  recommendation it                                                                    
was up  to anyone who  wanted to adopt it  and to make  it a                                                                    
bill. He thought someone had done so.                                                                                           
                                                                                                                                
5:00:28 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:00:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster  invited  Co-Chair Seaton  to  present  his                                                                    
finance subcommittee report for the legislature.                                                                                
                                                                                                                                
^LEGISLATURE                                                                                                                  
                                                                                                                                
5:00:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton read  the finance  subcommittee report  for                                                                    
the Legislature:                                                                                                                
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature held  four meetings with the  agency during                                                                    
     the review of the FY19 budget request.                                                                                     
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature   recommends   that   the   House   Finance                                                                    
     Committee  accept the  Legislature's  FY19 budget  with                                                                    
     the following amendment recommendations:                                                                                   
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $64,550.0                                                                                 
     Designated General Funds (DGF) 321.0                                                                                       
     Other Funds 832.6                                                                                                          
     Federal Funds -0-                                                                                                          
     Total $65,703.7                                                                                                            
                                                                                                                                
     The  UGF difference  from FY15  Management Plan  to the                                                                    
     FY19  House   Subcommittee  Recommended  budget   is  a                                                                    
     reduction of $12,354.2, a decrease of 16.1 percent.                                                                        
                                                                                                                                
     The  UGF difference  from FY18  Management Plan  to the                                                                    
     FY19  House  Subcommittee   Recommended  budget  is  an                                                                    
     increase of $962.9, an increase of 1.5 percent.                                                                            
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 234                                                                                                    
     Permanent Part-time 399                                                                                                    
     Temporary 6                                                                                                                
     Total 549                                                                                                                  
                                                                                                                                
     The  Governor did  not submit  any amendments  for this                                                                    
     agency and the subcommittee  did not make any statutory                                                                    
     recommendations.                                                                                                           
                                                                                                                                
    The subcommittee made no statutory recommendations.                                                                         
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 1 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Budget and Audit Committee                                                                                                 
     Legislative Finance                                                                                                        
     H  LEG  1  -  Reduce   the  House  Finance  portion  of                                                                    
     Legislative Finance's budget                                                                                               
     Offered by Representative Seaton                                                                                           
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton reported that the amendment reduced the                                                                         
House Finance Committee travel budget by $25,000.                                                                               
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 1 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 2 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Council                                                                                                        
     Administrative Services                                                                                                    
     H  LEG 2  -  Add  6 temporary  PCNs  to match  personal                                                                    
     services expenditure report                                                                                                
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     This is a technical  correction. The six temporary PCNs                                                                    
     were included in the Personal  Services budget but were                                                                    
     not   noted  in   the   allocation   report  when   the                                                                    
     Legislative Affairs  Agency switched to the  new budget                                                                    
     system in FY18. This  corrects that oversight. There is                                                                    
     no increase in the budget.                                                                                                 
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 2 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 3 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Council                                                                                                        
     Council and Subcommittees                                                                                                  
     H  LEG 3  - Transfer  $27.9 from  Services to  Personal                                                                    
     Services for Senate Spec Comm of the Arctic                                                                                
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     This  is a  technical correction.  When Senate  Finance                                                                    
     eliminated the Senate Special  Committee on the Arctic,                                                                    
     the funding  of $27,900  was removed from  the Personal                                                                    
     Services  line; however,  the $27,900  was budgeted  in                                                                    
     the Services line. There is no change to the budget.                                                                       
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 3 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 4 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Council                                                                                                        
     Council and Subcommittees                                                                                                  
     H  LEG 4  -  Eliminate funding  for  the House  Special                                                                    
     Committee  on Arctic  Policy, Economic  Development and                                                                    
     Tourism                                                                                                                    
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     This  amendment eliminates  the  funding  to the  House                                                                    
     Special   Committee   on    Arctic   Policy,   Economic                                                                    
     Development and  Tourism. In  recent years,  funding to                                                                    
     standing,  special   and  joint  committees   has  been                                                                    
     greatly reduced and, in  many instances, eliminated. In                                                                    
     2017,  AET's  funding  was   reduced  from  $27,850  to                                                                    
     $10,000. This  amendment would eliminate  the remaining                                                                    
     funds.                                                                                                                     
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 4 was ADOPTED.                                                                        
                                                                                                                                
5:05:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 5 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Council                                                                                                        
     Legislature State Facilities Rent                                                                                          
     H LEG  5 - Annual  CPI-U Increase for  Statewide Leases                                                                    
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     The Legislature  State Facilities Rent  allocation pays                                                                    
     for leases and some  operating expenses associated with                                                                    
     space rented  by the  Legislature statewide.  There are                                                                    
     22 Legislative  Information Office (LIO)  sites outside                                                                    
     of Juneau. Many  of these sites also  have office space                                                                    
     for  Legislator interim  offices. There  are two  sites                                                                    
     for  Legislator  interim  offices  which  are  not  co-                                                                    
     mingled with an LIO (North Pole and Eagle River).                                                                          
                                                                                                                                
     An  increment   of  $47,600  is   needed  to   pay  for                                                                    
     contractually  obligated   CPI-U  increases   for  most                                                                    
     statewide  leases. There  are no  contingency funds  in                                                                    
     this allocation.  The full amount  is required  to meet                                                                    
    the Legislature's contractual obligations in FY19.                                                                          
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative  Wilson wanted  to understand  the amendment.                                                                    
She  asked  if  the   two  offices  were  paid  differently.                                                                    
Co-Chair  Seaton responded  that there  were 2  offices that                                                                    
were  not connected  with a  legislative information  office                                                                    
(LIO).  The  amendment  ensured   that  the  consumer  price                                                                    
increases in the contract were  funded, as there was not any                                                                    
contingency language outside of the LIO contracts.                                                                              
                                                                                                                                
Representative Wilson relayed that  a couple of years prior,                                                                    
she had  looked at the  leases when Fairbanks was  going out                                                                    
for  its  lease  again  and whether  it  was  economical  to                                                                    
combine  the North  Pole office  with the  Fairbanks office.                                                                    
She  found that  it would  have  actually cost  more to  the                                                                    
state to combine  them. There was no space  in the Fairbanks                                                                    
office. A  different location  would have  had to  be leased                                                                    
costing more.  She wanted people  to understand that  it was                                                                    
not an additional cost.                                                                                                         
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 5 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton  MOVED to ADOPT  Amendment H LEG 6  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Legislative Operating Budget                                                                                               
     Legislature State Facilities Rent                                                                                          
     H LEG  6 - Transfer  $126.0 from Personal  Services (H)                                                                    
     to  Services  (H)  for   Legal  and  Research  Services                                                                    
     Transfer Authority                                                                                                         
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     Speaker  of the  House  Edgmon approved  a transfer  of                                                                    
     $126,000  from House  Operating to  Legal and  Research                                                                    
     Services.  In   the  Governor's   FY  19   budget,  OMB                                                                    
     inadvertently  reflected  the  transfer  out  from  the                                                                    
     Services line  instead of from Personal  Services. This                                                                    
     corrects  the line  items. There  is no  change to  the                                                                    
     budget.                                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 6 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 7 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Operating Budget                                                                                               
     H LEG 7 - Transfer  $63.0 from Personal Services (H) to                                                                    
     Services  (H)  for  Administrative  Services  Authority                                                                    
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     Speaker  of the  House  Edgmon approved  a transfer  of                                                                    
     $63,000   from   House  Operating   to   Administrative                                                                    
     Services.   In   the   Governor's  FY19   budget,   OMB                                                                    
     inadvertently  reflected  the  transfer  out  from  the                                                                    
     Services line  instead of from Personal  Services. This                                                                    
     corrects  the line  items. There  is no  change to  the                                                                    
     budget.                                                                                                                    
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 7 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Seaton MOVED to ADOPT Amendment H LEG 8 (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
     Legislative Operating Budget                                                                                               
     Session Expenses                                                                                                           
     H LEG 8 - Reduce the House Operating Budget                                                                                
     Offered by Representative Seaton                                                                                           
                                                                                                                                
Representative Wilson OBJECTED                                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 8 was ADOPTED.                                                                        
                                                                                                                                
5:09:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  MOVED to ADOPT  Amendment H LEG 9  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Legislative Operating Budget                                                                                               
     Session Expenses                                                                                                           
     H LEG 9 - Replace UGF with Interagency Receipts to                                                                         
     account for full statute set revenue                                                                                       
     Offered by Representative Seaton                                                                                           
                                                                                                                                
     In FY19,  there will be  a full set of  Alaska Statutes                                                                    
     produced,  as opposed  to just  the  supplement set  in                                                                    
     FY18. This  brings an  anticipated increase  in revenue                                                                    
     in Interagency  Receipts and a  corresponding reduction                                                                    
     in the Unrestricted General Fund                                                                                           
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Seaton read the amendment (see above).                                                                                 
                                                                                                                                
Representative Wilson  did not understand where  the savings                                                                    
was  on  the inter-agency  receipts  in  making the  statute                                                                    
books. Co-Chair Seaton replied  that the legislature printed                                                                    
all  of  the statute  books  which  were bought  by  several                                                                    
agencies becoming inter-agency receipts instead of UGF.                                                                         
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment H LEG 9 was ADOPTED.                                                                        
                                                                                                                                
Co-Chair  Seaton stated  for the  record  that although  the                                                                    
numbers  had  been reviewed,  there  had  been some  numbers                                                                    
misspoken.  The numbers  printed  in  the meeting  documents                                                                    
were the numbers  that would be used rather  than any verbal                                                                    
errors. He returned  to a question that  Vice-Chair Gara had                                                                    
asked that he would quickly answer.                                                                                             
                                                                                                                                
Vice-Chair   Gara  mentioned   that  Representative   Pruitt                                                                    
correctly  noted  that  in the  DHSS  report  the  committee                                                                    
compared  FY   15  to  FY   19  governor's  budget   to  the                                                                    
subcommittee's numbers.  The fiscal year 18  numbers were on                                                                    
page 5  of the multi-year  allocation. He conveyed  that the                                                                    
big  change   in  the  department  concerned   Medicaid.  He                                                                    
reported the FY 18 supplemental  amount of about $91 million                                                                    
and the department anticipated an  additional $27 million in                                                                    
FY 19.  He thought  there was a  difference of  $118 million                                                                    
from what legislators left session  knowing about. The other                                                                    
two large changes were taking  out money for senior benefits                                                                    
until a  bill was  passed. He  hoped the  legislation passed                                                                    
soon.  The only  other thing  not addressed  in subcommittee                                                                    
had to do with a  $6 million reduction for behavioral health                                                                    
because  the department  was shifting  more towards  federal                                                                    
funding. He relayed that although  there had been about $100                                                                    
million decrease since FY 15  in the department, the numbers                                                                    
for  the  FY  18  management  plan  in  UGF  totaled  $1.047                                                                    
billion.  The  governor's  increase reflected  the  Medicaid                                                                    
increase   which   went   up    to   $1.165   billion.   The                                                                    
subcommittee's decrease  reflected the delay in  putting the                                                                    
Senior Benefits  Program money in  the budget. It  was about                                                                    
$17  million  lower  than the  governor's  budget  plus  the                                                                    
amendments that were passed.                                                                                                    
                                                                                                                                
Co-Chair  Seaton  thanked   the  agencies,  the  Legislative                                                                    
Finance Division,  and the staff that  had worked diligently                                                                    
on the budget.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following day.                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:14:58 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:14 p.m.                                                                                          

Document Name Date/Time Subjects
HB 286 - HB 285 Subcommittee Reports and Amendments DLAW DMVA DNR DPS.pdf HFIN 2/26/2018 1:30:00 PM
HB 285
HB 286
HB 286 - HB 285 Subcommittee Reports and Amendments DOc DEC DHSS.pdf HFIN 2/26/2018 1:30:00 PM
HB 285
HB 286
HB 286 - HB 285 Subcommittee Reports and Amendments DOT UA LEG.pdf HFIN 2/26/2018 1:30:00 PM
HB 285
HB 286
HB 286 RE_ 2018 DOC HFIN Alaska Native Population.pdf HFIN 2/26/2018 1:30:00 PM
HB 286