Legislature(1993 - 1994)
03/15/1993 01:32 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 15, 1993
1:32 P.M.
TAPE HFC 93 - 46, Side 2, #000 - end.
TAPE HFC 93 - 47, Side 1, #000 - end.
TAPE HFC 93 - 47, Side 2, #000 - #535.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:32 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Therriault
Representative Parnell Representative Martin
Representative Navarre
Representative Hoffman and Representative Grussendorf were
not present for the meeting.
ALSO PRESENT
Paul Fuhs, Commissioner, Department of Commerce and Economic
Development; Representative Con Bunde; Representative John
Davies; George Smith, Deputy Director, Libraries, Archives,
& Museums, Department of Education; Wendy Redman, Vice
President for University Relations, University of Alaska;
Dr. Jerome Komisar, President, University of Alaska; Gary
Bader, Director, Division of Administrative Services,
Department of Education; Marsha Hubbard, Director of Budget,
University of Alaska.
SUMMARY INFORMATION
HB 55 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
HB 56 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
1
SUBCOMMITTEE CLOSEOUTS: Commerce & Economic
Development
University of Alaska
Education
Incorporated Subcommittee recommendations for the
Department of Commerce and Economic Development,
the University of Alaska and the Department of
Education into HB 55.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
The Department of Commerce and Economic Development
Subcommittee was Chaired by Representative MacLean with
members Representative Hudson, Representative Sanders,
Representative Menard and Representative Nordlund.
Co-Chair MacLean noted the Subcommittee attempted to
encourage the Department of Commerce and Economic
Development (DCED) to emphasize support for economic
development within the State.
Co-Chair MacLean provided the Committee with handouts.
[Attachments #1 - #3]. She referenced Attachment #1,
Transaction Summary for Governor to House.
* Measurement Standards received a $56 thousand
dollar reduction. They were asking for a $350
thousand dollar increment to increase monitoring
at the State's weigh stations. The reduction to
the increment will eliminate a vacant weigh
station supervisor position.
* The Subcommittee reduced the $211.2 thousand
dollars increment request to the Office of
International Trade. The Department will have the
option to allocate this reduction to the area of
least importance.
* The Economic Development component received a
reduction of $160 thousand dollars. The
Subcommittee reduced the increment request for
"Making the Case" by $63 thousand dollars. The
reduction leaves a balance of $390 thousand
dollars which includes $250 thousand dollars in
the base budget and a $140 thousand dollar
increment.
* The Subcommittee also eliminated $97 thousand
dollars for regional marketing grants. She
stated, the regional marketing grants for the
ARDOR's are a capital item and should be funded
from the capital budget. The purpose of the grant
2
money was to help the ARDOR's leverage investment
opportunities and market capital projects in those
regions.
* Tourism Development component received a reduction
of $132.8 thousand dollars. The Subcommittee's
intention was to eliminate the Deputy Director
position. Funding was also eliminated for the
State's participation in the Taejon Exposition in
Korea.
* The Alaska Tourism Marketing Council received a
reduction of $257.2 thousand dollars. The
Subcommittee proposed increasing industry support
for marketing tourism from twenty percent in the
governor's proposal to twenty-two percent creating
a general fund savings of $172.6 thousand dollars.
Representative Brown asked further clarification of the
reduction impact to regional marketing grants and the ARDOR
program.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, stated the reduction would not impact the ARDOR
funding formula. This proposition is a special program to
help marketing on a regional basis. It would be moved to
the Economic Development Matching Grant Program.
Representative Brown asked how much money to date has been
spent on the Korean Exposition. Commissioner Fuhs offered
to provide that information.
Co-Chair MacLean MOVED to incorporate the Department of
Commerce and Economic Subcommittee recommendations into HB
55. There being NO OBJECTION, they were incorporated.
UNIVERSITY OF ALASKA
The University of Alaska Subcommittee was Chaired by
Representative Martin with members Representative Bunde,
Representative Gail Phillips, Representative Davies and
Representative Ulmer.
Representative Martin provided the Committee with handouts.
[Attachments #4 - #7]. He addressed Attachment #4,
University of Alaska, House Finance Subcommittee
Recommendations which listed direct action taken by the
Subcommittee. He pointed out that the University budget is
the fourth highest budget component in the State.
Initially, the University requested $20 million dollars
general funds. The Governor cut the request to $5 million
3
dollars unallocated general funds. The Subcommittee
determined priorities for the requested funds. The
Subcommittee was requested to cut the $5 million dollar
Governor's recommendation to $2.5 million dollars.
* Compensation component request was zeroed out.
* Fixes Costs increments:
Anchorage $1.031 million
dollars
Homer $4.0 thousand
dollars
Kodiak $5.5 thousand
dollars
Kenai $41.6 thousand
dollars
Mat-Su $12.2 thousand
dollars
PWSCC $51.8 thousand
dollars
Bristol Bay $5.7 thousand
dollars
Chukchi $10 thousand
dollars
Cooperative Extensions $3.4 thousand
dollars
Fairbanks $1.775 million
dollars
Fairbanks Research $19.3 thousand
dollars
Interior $9.1 thousand
dollars
Kuskokwin $22.8 thousand
dollars
Northwest $9 thousand
dollars
Rural College $7.5 thousand
dollars
Juneau $248 thousand
dollars
Ketchikan $36.5 thousand
dollars
Sitka $86 thousand
dollars
* The building maintenance component will receive a
$500 thousand dollars increase from non general
funds.
* The Basic Support for Instruction - Anchorage
received $998.9 thousand dollars from tuition and
fees. Student Assessment - Juneau receives $108
4
thousand dollars from tuition and fees.
* Category #5 maximizes student fee increases for
the following campuses.
Social Science Faculty - Kodiak $25.7
Humanities Faculty - Kenai $63.6
Social Science Faculty - Mat-Su $79.7
Undergraduate Programs - Fairbanks $40.3
Initiatives for Enrollment &
Distance Delivery - Juneau $92.7
Initiatives for Enrollment - Ket. $7.5
* Component #6, Tuition and Other Non-general Fund
Authority increment non-general federal grant for
$6.265 million dollars.
* The Alaska Geography Textbook - Fairbanks
increment for $125 thousand dollars.
REPRESENTATIVE JOHN DAVIES disagreed with the priorities
established by the University Subcommittee. He thought
zeroing out the Compensation component was a mistake. He
stated quality teaching requires reasonable compensation
interest. The University faculty and administrators have
not received a step increase in the last eight years.
Representative Davies pointed out that compensation was the
regions number one priority. He reiterated, the
Subcommittee recommended that it not be funded.
The University has currently reallocated funding to meet the
fixed cost increases. He noted that the University has
attempted to re-examine the administrative structure and
reduce those costs before the budget came to the Governor.
Maintenance has not been adequately funded for a number of
years.
Representative Davies drew a parallel between the K-12 costs
and the University revenue increment budget. From 1975 to
present, the average annual increments to the budgets have
been ten percent. The average annual enrollment increase
over this time period to the lower levels was 1.8%, while
the University level was over 5%. Over fifty per cent of
the budget is non-general fund sources.
Representative Martin responded to Representative Davies
testimony. He noted that the students will be paying
twenty-three percent of the incremental cost. He added that
this years funding is the same as it was in 1984. He felt
that the outline campus administration costs were
unreasonable. Representative Martin suggested switching
some funds from the University budget to the Science and
5
Technology Fund from general funds.
REPRESENTATIVE CON BUNDE elaborated that the University of
Alaska is competitive in salaries offered to professionals.
He added that each region has not adequately addressed the
building maintenance. Monies have been allocated to that
component in the past which has been spend elsewhere.
(Tape Change, HFC 93-47, Side 1).
Representative Therriault questioned the lack of funding for
the maintenance component. Representative Martin
acknowledged that campus buildings are deteriorating. He
suggested that the maintenance budget be meet through the
capital budget.
Representative Brown asked how many appropriations would be
made through the proposed budget. Representative Martin
stated that the Subcommittee recommends $2.5 million
appropriated funds. He noted that there are twenty-two
units with varying allocations.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, stated the Subcommittee's intent was
to provide a single appropriation with new money placed into
fixed costs.
Representative Brown pointed out that if the funds are not
appropriated, there will be no assurance that the funds are
received. She asked if $3 million dollars from the Science
and Technology Fund were appropriated as a funding source.
Representative Martin stated this would be an extension of
last year's appropriation from the Agricultural Fund. Co-
Chair Larson advised that last year there was a statute
passed to provide funding out of the Science and Technology
Fund for the organized research in the Aerospace
Corporation.
Representative Brown understood that funding was a one year
allocation and further funding would require an additional
authorization in statute.
MARSHA HUBBARD, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA,
stated that the University was granted $3 million dollars
and was told that this would be a permanent source of
funding. Representative Brown felt the decision should be
reconsidered.
Representative Brown asked where "other funds" originated
from. Ms. Hubbard noted the restricted funding categories
are:
6
* Money received from other state agencies;
* Money received from local government;
* Corporate gifts;
* Corporate grants;
* Private individuals.
Representative Brown inquired if funds from other
individuals would be considered "interagency" receipts. Ms.
Hubbard replied those which come from other individuals
would be "intragency" receipts and are general funds.
Representative Brown asked for further clarification of
increases to campuses compared between the proposed
Governor's budget and the Subcommittee's recommendations.
Ms. Hubbard explained the standard BRU's have a FY 94
adjusted base and contain no new money, yet do include
transfers. The only new money in the budget has a component
for each administrative unit. The same process was used by
the Governor and the Subcommittee. Representative Brown
discussed the increment to the Fairbanks campus.
Ms. Hubbard explained the transfer of funds from the
Vocational Technology regional budget. Representative
Navarre asked why the funds were transferred. Ms. Hubbard
stated that Voc Tech was issued statewide and the University
transferred it to the regions. For two years, the
Legislature has approved it as a regional budget and the
Board has now requested that Voc Tech budget be shown by
campus.
Representative Brown asked the impact on student services
should the proposed Subcommittee's recommended budget is
adopted.
DR. JEROME KOMISAR, PRESIDENT, UNIVERSITY OF ALASKA,
addressed the compensation to PERS, TERS and health care
costs which create a $4 million dollar increased cost to the
University. Given the structure of the budget, there will
be less services and a cut back in the academic programs.
The students are concerned that they will be paying more and
receiving less. He stated he preferred to receive a single
appropriation and then allocate those resources to the
various campuses.
Representative Brown asked if the State was contractually
committed to raises for University employees. Dr. Komisar
said contractually their is no commitment to the faculty.
The compensation increase for fringe benefits is an
automatic process. He added, the Board does have a policy
which anticipates a three percent increase to all employees
this coming year. The impact of the $2.5 million dollars
would mean a reduction of two hundred thirty adjunct
contracts which supply over ten thousand credit hours and a
7
twenty-eight person reduction to the permanent faculty.
There would be a reduction of one hundred temporary staff.
Co-Chair Larson recommended extending classes to a weekend
schedule. He noted that the University has taken greater
than normal general fund reductions over the years. Dr.
Komisar pointed out a major reason for students not being
able to attend classes is space limitations. The two blocks
to hiring more faculty which are finances and lack of people
of to assume the obligations. Academic planning is being
considered although it is difficult with limited funds.
Representative Davies explained that the constitution
provides for a Board of Regents to provide oversight
responsibilities for the University.
Representative Bunde suggested that the "traditional"
student does not want to go to school in the evening or on
the weekends. He added, according to a study, it is also
difficult to get the "traditional" faculty member to teach
at those times.
Representative Navarre explained the history of multiple
appropriations versus the single appropriation. He pointed
out that the regions were not able to make changes at their
discretion with multiple appropriations at which point the
Legislature chose the single appropriation.
Representative Martin MOVED to incorporate the University of
Alaska Subcommittee recommendations be incorporated into HB
55. Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Parnell, Therriault, MacLean,
Larson.
OPPOSED: Navarre, Brown.
The MOTION FAILED (5 - 2).
(Tape Change, HFC 47, Side 2).
DEPARTMENT OF EDUCATION
The Department of Education Subcommittee was Chaired by
Representative Larson with members Representative James,
Representative Bunde, Representative Willis and
Representative Bettye Davis.
Co-Chair Larson provided the Committee with handouts.
[Attachments #8 - #11]. He referenced Attachment #9,
Transaction Summary for Governor to House. The Department
8
of Education Subcommittee used the Governor's proposed FY 94
budget as the base with a two percent reduction scenario
creating a $639.8 thousand dollars reduction. The first
page (K-12) Support and the School Debt Reimbursement of the
transaction summary is comprised of decrements removed from
the operating budget and placed into HB 45.
The Subcommittee recommendations are as follows:
* District Support Services decrement which replaces
general funds with PL81-874 funding of $65
thousand dollars.
* Data Management which will increase the vacancy to
three percent OMB maximum and will provide a $9.6
decrement.
* Community Schools will be moved to HB 45 at the
$600 thousand dollars level.
* Basic Ed and Instructional Improvements given an
unallocated general fund reduction of $50 thousand
dollars.
* Education Special Projects received a total
component reduction of $124.1 thousand dollars by
reducing programs five percent and reducing the
Correct Teen Parent I/A receipts.
* The Child Nutrition pass through funds in HB 45 of
$18,100 thousand dollars.
* The Adult Basic Education 1% reduction ABE to the
grants for $17.4 thousand dollars.
* The Rural School Vocational Education Programs
received a five percent reduction for a total of
$9.5 thousand dollars.
* Executive Administration - Administrative Services
received a two percent unallocated reduction for
$33.8 thousand dollars.
* The Commissions and Board - Professional Teaching
Practice component received a reduction of $12
thousand dollars.
* The Alaska Council on the Arts component received
a decrement of $28 thousand dollars for travel,
publications and grants.
* The Kotzebue Technical Operations Grant received a
9
five percent reduction for operations of $42.4
thousand dollars.
* The Alaska Vocational Technical Center - AVTEC
Operations received an unallocated reduction of
1.3% for a total reduction of $48.4 thousand
dollars.
* Mt Edgecumbe Boarding School - Residential Program
received an unallocated reduction of 1% for a
total reduction of $22.2 thousand dollars.
* Vocational Rehabilitation - Client Services
received an unallocated reduction of $100 thousand
dollars.
* Independent Living Rehabilitation interpreter
referral services reduction of $32.5 thousand
dollars.
* Americans with Disabilities reduced increment for
ADA program of $50 thousand dollars.
* The Alaska State Library - Library Operations
received a reduction of $37.5 thousand dollars to
public library matching grants.
* The Alaska State Museums - Specific Cultural
Programs received a grants reduction for five
percent for a total reduction of $6.3 thousand
dollars.
* The Alaska Postsecondary Education - WICHE Student
Exchange Program decrement of the number of new
students for a total reduction of $86.7 thousand
dollars.
* Federal Student Aid reduction grant funding
decrement of $32 thousand dollars for the Student
Incentive Grants.
Co-Chair Larson noted that the Subcommittee questions
dollars spent in the WAMI program. Representative
Therriault asked for more information regarding the
increased PL81-874 funds. Co-Chair Larson stated it would
mean more money coming from the federal government.
Representative Brown asked if Independent Living component
currently had authority to receive fees. She questioned if
program receipts should be decreased.
GARY BADER, DIRECTOR ADMINISTRATIVE SERVICES, DEPARTMENT OF
10
EDUCATION, replied the service providers will access the
fee, although there has been no requirement to increase the
program receipt authorization. When interpreter services
are required, a State agency must be asked to pay the fee.
Currently, the Division of Voc Rehab actually pays them to
provide the service.
Representative Brown asked the program impact to Client
Services with the $50 thousand dollars reduction. Mr. Bader
stated overall, that budget component would increase because
of federal receipts.
Representative Brown asked about the RSA receipts for the FY
93 Americans with Disabilities Act. Mr. Bader stated that
amount was $225 thousand dollars which would be reduced to
$210 thousand dollars. Representative Brown inquired what
the source of program receipts would be. Mr. Bader offered
to provide that information. Representative Brown asked how
the Department of Transportation and Public Facilities
(DOTPF) would be affected by this component. Mr. Bader
replied each Department has a coordinator for Americans with
Disabilities and DOTPF would be responsible for their own
program.
Co-Chair MacLean pointed out the substantial increase to the
student loan operations. She noted that there has been no
improvement in that area over the years.
Co-Chair Larson noted the Department of Education
Subcommittee did not offer any increments although in HB
135, Section 14, there is a request for $6.427 million
dollars for the public school foundation programs; Section
15 is a request for $98.5 thousand dollars for the WAMI
operating costs.
Co-Chair Larson MOVED to incorporate the Department of
Education Subcommittee recommendations into HB 55. There
being NO OBJECTIONS, it was incorporated. Representative
Brown noted for the record that some of the proposed cuts
will have significant impacts.
UNIVERSITY OF ALASKA
Representative Martin MOVED TO RESCIND action on the
University of Alaska Subcommittee's recommendations. There
being NO OBJECTION, it was rescinded.
Representative Martin MOVED the Department of Education
Subcommittee's recommendations be incorporated into HB 55.
Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
11
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Larson, MacLean.
OPPOSED: Navarre, Brown.
The MOTION PASSED (6-2).
The Department of Education Subcommittee recommendations
were incorporated into HB 55.
ADJOURNMENT
The meeting adjourned at 3:35 P.M.
HOUSE FINANCE COMMITTEE
March 15, 1993
1:32 P.M.
TAPE HFC 93 - 46, Side 2, #000 - end.
TAPE HFC 93 - 47, Side 1, #000 - end.
TAPE HFC 93 - 47, Side 2, #000 - #535.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:32 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Therriault
Representative Parnell Representative Martin
Representative Navarre
Representative Hoffman and Representative Grussendorf were
not present for the meeting.
ALSO PRESENT
Paul Fuhs, Commissioner, Department of Commerce and Economic
Development; Representative Con Bunde; Representative John
Davies; George Smith, Deputy Director, Libraries, Archives,
& Museums, Department of Education; Wendy Redman, Vice
President for University Relations, University of Alaska;
Dr. Jerome Komisar, President, University of Alaska; Gary
Bader, Director, Division of Administrative Services,
Department of Education; Marsha Hubbard, Director of Budget,
12
University of Alaska.
SUMMARY INFORMATION
HB 55 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
HB 56 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
SUBCOMMITTEE CLOSEOUTS: Commerce & Economic
Development
University of Alaska
Education
Incorporated Subcommittee recommendations for the
Department of Commerce and Economic Development,
the University of Alaska and the Department of
Education into HB 55.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
The Department of Commerce and Economic Development
Subcommittee was Chaired by Representative MacLean with
members Representative Hudson, Representative Sanders,
Representative Menard and Representative Nordlund.
Co-Chair MacLean noted the Subcommittee attempted to
encourage the Department of Commerce and Economic
Development (DCED) to emphasize support for economic
development within the State.
Co-Chair MacLean provided the Committee with handouts.
[Attachments #1 - #3]. She referenced Attachment #1,
Transaction Summary for Governor to House.
* Measurement Standards received a $56 thousand
dollar reduction. They were asking for a $350
thousand dollar increment to increase monitoring
at the State's weigh stations. The reduction to
the increment will eliminate a vacant weigh
station supervisor position.
* The Subcommittee reduced the $211.2 thousand
dollars increment request to the Office of
International Trade. The Department will have the
option to allocate this reduction to the area of
13
least importance.
* The Economic Development component received a
reduction of $160 thousand dollars. The
Subcommittee reduced the increment request for
"Making the Case" by $63 thousand dollars. The
reduction leaves a balance of $390 thousand
dollars which includes $250 thousand dollars in
the base budget and a $140 thousand dollar
increment.
* The Subcommittee also eliminated $97 thousand
dollars for regional marketing grants. She
stated, the regional marketing grants for the
ARDOR's are a capital item and should be funded
from the capital budget. The purpose of the grant
money was to help the ARDOR's leverage investment
opportunities and market capital projects in those
regions.
* Tourism Development component received a reduction
of $132.8 thousand dollars. The Subcommittee's
intention was to eliminate the Deputy Director
position. Funding was also eliminated for the
State's participation in the Taejon Exposition in
Korea.
* The Alaska Tourism Marketing Council received a
reduction of $257.2 thousand dollars. The
Subcommittee proposed increasing industry support
for marketing tourism from twenty percent in the
governor's proposal to twenty-two percent creating
a general fund savings of $172.6 thousand dollars.
Representative Brown asked further clarification of the
reduction impact to regional marketing grants and the ARDOR
program.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, stated the reduction would not impact the ARDOR
funding formula. This proposition is a special program to
help marketing on a regional basis. It would be moved to
the Economic Development Matching Grant Program.
Representative Brown asked how much money to date has been
spent on the Korean Exposition. Commissioner Fuhs offered
to provide that information.
Co-Chair MacLean MOVED to incorporate the Department of
Commerce and Economic Subcommittee recommendations into HB
55. There being NO OBJECTION, they were incorporated.
14
UNIVERSITY OF ALASKA
The University of Alaska Subcommittee was Chaired by
Representative Martin with members Representative Bunde,
Representative Gail Phillips, Representative Davies and
Representative Ulmer.
Representative Martin provided the Committee with handouts.
[Attachments #4 - #7]. He addressed Attachment #4,
University of Alaska, House Finance Subcommittee
Recommendations which listed direct action taken by the
Subcommittee. He pointed out that the University budget is
the fourth highest budget component in the State.
Initially, the University requested $20 million dollars
general funds. The Governor cut the request to $5 million
dollars unallocated general funds. The Subcommittee
determined priorities for the requested funds. The
Subcommittee was requested to cut the $5 million dollar
Governor's recommendation to $2.5 million dollars.
* Compensation component request was zeroed out.
* Fixes Costs increments:
Anchorage $1.031 million
dollars
Homer $4.0 thousand
dollars
Kodiak $5.5 thousand
dollars
Kenai $41.6 thousand
dollars
Mat-Su $12.2 thousand
dollars
PWSCC $51.8 thousand
dollars
Bristol Bay $5.7 thousand
dollars
Chukchi $10 thousand
dollars
Cooperative Extensions $3.4 thousand
dollars
Fairbanks $1.775 million
dollars
Fairbanks Research $19.3 thousand
dollars
Interior $9.1 thousand
dollars
Kuskokwin $22.8 thousand
dollars
Northwest $9 thousand
dollars
15
Rural College $7.5 thousand
dollars
Juneau $248 thousand
dollars
Ketchikan $36.5 thousand
dollars
Sitka $86 thousand
dollars
* The building maintenance component will receive a
$500 thousand dollars increase from non general
funds.
* The Basic Support for Instruction - Anchorage
received $998.9 thousand dollars from tuition and
fees. Student Assessment - Juneau receives $108
thousand dollars from tuition and fees.
* Category #5 maximizes student fee increases for
the following campuses.
Social Science Faculty - Kodiak $25.7
Humanities Faculty - Kenai $63.6
Social Science Faculty - Mat-Su $79.7
Undergraduate Programs - Fairbanks $40.3
Initiatives for Enrollment &
Distance Delivery - Juneau $92.7
Initiatives for Enrollment - Ket. $7.5
* Component #6, Tuition and Other Non-general Fund
Authority increment non-general federal grant for
$6.265 million dollars.
* The Alaska Geography Textbook - Fairbanks
increment for $125 thousand dollars.
REPRESENTATIVE JOHN DAVIES disagreed with the priorities
established by the University Subcommittee. He thought
zeroing out the Compensation component was a mistake. He
stated quality teaching requires reasonable compensation
interest. The University faculty and administrators have
not received a step increase in the last eight years.
Representative Davies pointed out that compensation was the
regions number one priority. He reiterated, the
Subcommittee recommended that it not be funded.
The University has currently reallocated funding to meet the
fixed cost increases. He noted that the University has
attempted to re-examine the administrative structure and
reduce those costs before the budget came to the Governor.
Maintenance has not been adequately funded for a number of
years.
16
Representative Davies drew a parallel between the K-12 costs
and the University revenue increment budget. From 1975 to
present, the average annual increments to the budgets have
been ten percent. The average annual enrollment increase
over this time period to the lower levels was 1.8%, while
the University level was over 5%. Over fifty per cent of
the budget is non-general fund sources.
Representative Martin responded to Representative Davies
testimony. He noted that the students will be paying
twenty-three percent of the incremental cost. He added that
this years funding is the same as it was in 1984. He felt
that the outline campus administration costs were
unreasonable. Representative Martin suggested switching
some funds from the University budget to the Science and
Technology Fund from general funds.
REPRESENTATIVE CON BUNDE elaborated that the University of
Alaska is competitive in salaries offered to professionals.
He added that each region has not adequately addressed the
building maintenance. Monies have been allocated to that
component in the past which has been spend elsewhere.
(Tape Change, HFC 93-47, Side 1).
Representative Therriault questioned the lack of funding for
the maintenance component. Representative Martin
acknowledged that campus buildings are deteriorating. He
suggested that the maintenance budget be meet through the
capital budget.
Representative Brown asked how many appropriations would be
made through the proposed budget. Representative Martin
stated that the Subcommittee recommends $2.5 million
appropriated funds. He noted that there are twenty-two
units with varying allocations.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, stated the Subcommittee's intent was
to provide a single appropriation with new money placed into
fixed costs.
Representative Brown pointed out that if the funds are not
appropriated, there will be no assurance that the funds are
received. She asked if $3 million dollars from the Science
and Technology Fund were appropriated as a funding source.
Representative Martin stated this would be an extension of
last year's appropriation from the Agricultural Fund. Co-
Chair Larson advised that last year there was a statute
passed to provide funding out of the Science and Technology
Fund for the organized research in the Aerospace
17
Corporation.
Representative Brown understood that funding was a one year
allocation and further funding would require an additional
authorization in statute.
MARSHA HUBBARD, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA,
stated that the University was granted $3 million dollars
and was told that this would be a permanent source of
funding. Representative Brown felt the decision should be
reconsidered.
Representative Brown asked where "other funds" originated
from. Ms. Hubbard noted the restricted funding categories
are:
* Money received from other state agencies;
* Money received from local government;
* Corporate gifts;
* Corporate grants;
* Private individuals.
Representative Brown inquired if funds from other
individuals would be considered "interagency" receipts. Ms.
Hubbard replied those which come from other individuals
would be "intragency" receipts and are general funds.
Representative Brown asked for further clarification of
increases to campuses compared between the proposed
Governor's budget and the Subcommittee's recommendations.
Ms. Hubbard explained the standard BRU's have a FY 94
adjusted base and contain no new money, yet do include
transfers. The only new money in the budget has a component
for each administrative unit. The same process was used by
the Governor and the Subcommittee. Representative Brown
discussed the increment to the Fairbanks campus.
Ms. Hubbard explained the transfer of funds from the
Vocational Technology regional budget. Representative
Navarre asked why the funds were transferred. Ms. Hubbard
stated that Voc Tech was issued statewide and the University
transferred it to the regions. For two years, the
Legislature has approved it as a regional budget and the
Board has now requested that Voc Tech budget be shown by
campus.
Representative Brown asked the impact on student services
should the proposed Subcommittee's recommended budget is
adopted.
DR. JEROME KOMISAR, PRESIDENT, UNIVERSITY OF ALASKA,
addressed the compensation to PERS, TERS and health care
costs which create a $4 million dollar increased cost to the
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University. Given the structure of the budget, there will
be less services and a cut back in the academic programs.
The students are concerned that they will be paying more and
receiving less. He stated he preferred to receive a single
appropriation and then allocate those resources to the
various campuses.
Representative Brown asked if the State was contractually
committed to raises for University employees. Dr. Komisar
said contractually their is no commitment to the faculty.
The compensation increase for fringe benefits is an
automatic process. He added, the Board does have a policy
which anticipates a three percent increase to all employees
this coming year. The impact of the $2.5 million dollars
would mean a reduction of two hundred thirty adjunct
contracts which supply over ten thousand credit hours and a
twenty-eight person reduction to the permanent faculty.
There would be a reduction of one hundred temporary staff.
Co-Chair Larson recommended extending classes to a weekend
schedule. He noted that the University has taken greater
than normal general fund reductions over the years. Dr.
Komisar pointed out a major reason for students not being
able to attend classes is space limitations. The two blocks
to hiring more faculty which are finances and lack of people
of to assume the obligations. Academic planning is being
considered although it is difficult with limited funds.
Representative Davies explained that the constitution
provides for a Board of Regents to provide oversight
responsibilities for the University.
Representative Bunde suggested that the "traditional"
student does not want to go to school in the evening or on
the weekends. He added, according to a study, it is also
difficult to get the "traditional" faculty member to teach
at those times.
Representative Navarre explained the history of multiple
appropriations versus the single appropriation. He pointed
out that the regions were not able to make changes at their
discretion with multiple appropriations at which point the
Legislature chose the single appropriation.
Representative Martin MOVED to incorporate the University of
Alaska Subcommittee recommendations be incorporated into HB
55. Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Parnell, Therriault, MacLean,
Larson.
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OPPOSED: Navarre, Brown.
The MOTION FAILED (5 - 2).
(Tape Change, HFC 47, Side 2).
DEPARTMENT OF EDUCATION
The Department of Education Subcommittee was Chaired by
Representative Larson with members Representative James,
Representative Bunde, Representative Willis and
Representative Bettye Davis.
Co-Chair Larson provided the Committee with handouts.
[Attachments #8 - #11]. He referenced Attachment #9,
Transaction Summary for Governor to House. The Department
of Education Subcommittee used the Governor's proposed FY 94
budget as the base with a two percent reduction scenario
creating a $639.8 thousand dollars reduction. The first
page (K-12) Support and the School Debt Reimbursement of the
transaction summary is comprised of decrements removed from
the operating budget and placed into HB 45.
The Subcommittee recommendations are as follows:
* District Support Services decrement which replaces
general funds with PL81-874 funding of $65
thousand dollars.
* Data Management which will increase the vacancy to
three percent OMB maximum and will provide a $9.6
decrement.
* Community Schools will be moved to HB 45 at the
$600 thousand dollars level.
* Basic Ed and Instructional Improvements given an
unallocated general fund reduction of $50 thousand
dollars.
* Education Special Projects received a total
component reduction of $124.1 thousand dollars by
reducing programs five percent and reducing the
Correct Teen Parent I/A receipts.
* The Child Nutrition pass through funds in HB 45 of
$18,100 thousand dollars.
* The Adult Basic Education 1% reduction ABE to the
grants for $17.4 thousand dollars.
* The Rural School Vocational Education Programs
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received a five percent reduction for a total of
$9.5 thousand dollars.
* Executive Administration - Administrative Services
received a two percent unallocated reduction for
$33.8 thousand dollars.
* The Commissions and Board - Professional Teaching
Practice component received a reduction of $12
thousand dollars.
* The Alaska Council on the Arts component received
a decrement of $28 thousand dollars for travel,
publications and grants.
* The Kotzebue Technical Operations Grant received a
five percent reduction for operations of $42.4
thousand dollars.
* The Alaska Vocational Technical Center - AVTEC
Operations received an unallocated reduction of
1.3% for a total reduction of $48.4 thousand
dollars.
* Mt Edgecumbe Boarding School - Residential Program
received an unallocated reduction of 1% for a
total reduction of $22.2 thousand dollars.
* Vocational Rehabilitation - Client Services
received an unallocated reduction of $100 thousand
dollars.
* Independent Living Rehabilitation interpreter
referral services reduction of $32.5 thousand
dollars.
* Americans with Disabilities reduced increment for
ADA program of $50 thousand dollars.
* The Alaska State Library - Library Operations
received a reduction of $37.5 thousand dollars to
public library matching grants.
* The Alaska State Museums - Specific Cultural
Programs received a grants reduction for five
percent for a total reduction of $6.3 thousand
dollars.
* The Alaska Postsecondary Education - WICHE Student
Exchange Program decrement of the number of new
students for a total reduction of $86.7 thousand
dollars.
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* Federal Student Aid reduction grant funding
decrement of $32 thousand dollars for the Student
Incentive Grants.
Co-Chair Larson noted that the Subcommittee questions
dollars spent in the WAMI program. Representative
Therriault asked for more information regarding the
increased PL81-874 funds. Co-Chair Larson stated it would
mean more money coming from the federal government.
Representative Brown asked if Independent Living component
currently had authority to receive fees. She questioned if
program receipts should be decreased.
GARY BADER, DIRECTOR ADMINISTRATIVE SERVICES, DEPARTMENT OF
EDUCATION, replied the service providers will access the
fee, although there has been no requirement to increase the
program receipt authorization. When interpreter services
are required, a State agency must be asked to pay the fee.
Currently, the Division of Voc Rehab actually pays them to
provide the service.
Representative Brown asked the program impact to Client
Services with the $50 thousand dollars reduction. Mr. Bader
stated overall, that budget component would increase because
of federal receipts.
Representative Brown asked about the RSA receipts for the FY
93 Americans with Disabilities Act. Mr. Bader stated that
amount was $225 thousand dollars which would be reduced to
$210 thousand dollars. Representative Brown inquired what
the source of program receipts would be. Mr. Bader offered
to provide that information. Representative Brown asked how
the Department of Transportation and Public Facilities
(DOTPF) would be affected by this component. Mr. Bader
replied each Department has a coordinator for Americans with
Disabilities and DOTPF would be responsible for their own
program.
Co-Chair MacLean pointed out the substantial increase to the
student loan operations. She noted that there has been no
improvement in that area over the years.
Co-Chair Larson noted the Department of Education
Subcommittee did not offer any increments although in HB
135, Section 14, there is a request for $6.427 million
dollars for the public school foundation programs; Section
15 is a request for $98.5 thousand dollars for the WAMI
operating costs.
Co-Chair Larson MOVED to incorporate the Department of
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Education Subcommittee recommendations into HB 55. There
being NO OBJECTIONS, it was incorporated. Representative
Brown noted for the record that some of the proposed cuts
will have significant impacts.
UNIVERSITY OF ALASKA
Representative Martin MOVED TO RESCIND action on the
University of Alaska Subcommittee's recommendations. There
being NO OBJECTION, it was rescinded.
Representative Martin MOVED the Department of Education
Subcommittee's recommendations be incorporated into HB 55.
Representative Navarre OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Larson, MacLean.
OPPOSED: Navarre, Brown.
The MOTION PASSED (6-2).
The Department of Education Subcommittee recommendations
were incorporated into HB 55.
ADJOURNMENT
The meeting adjourned at 3:35 P.M.
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