Legislature(2001 - 2002)
03/11/2001 12:28 PM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 11, 2001
12:28 P.M.
TAPE HFC 01 - 49, Side A
TAPE HFC 01 - 49, Side B
TAPE HFC 01 - 50, Side A
TAPE HFC 01 - 50, Side B
TAPE HFC 01 - 51, Side A
TAPE HFC 01 - 51, Side B
TAPE HFC 01 - 52, Side A
TAPE HFC 01 - 52, Side B
TAPE HFC 01 - 53, Side A
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 12:28 P.M.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Representative Ethan Berkowitz; David Teal, Director,
Legislative Finance Division; Karen Rehfeld, Director,
Division of Education Support Services, Department of
Education and Early Development; Janet Clarke, Director,
Division of Administrative Services, Department of Health
and Social Services; Eddy Jeans, Manager, School Finance
Section, Department of Education and Early Development;
Annalee McConnell, Director, Office of Management and
Budget, Office of the Governor; Remond Henderson, Director,
Division of Administrative Services, Department of Labor and
Workforce Development; Ron Hull, Acting Director, Division
of Employment Securities, Department of Labor and Workforce
Development; Authur Mason, Staff, Representative Cissna; Pat
Galvin, Director, Division of Governmental Coordination,
Office of the Governor; David Teal, Director, Legislative
Finance Division; Beth Nordlund, Special Assistant,
Department of Education & Early Development; Denny Dewitt,
Staff, Representative Eldon Mulder.
PRESENT VIA TELECONFERENCE
None
SUMMARY
HB 103 An Act making appropriations for the operating and
loan program expenses of state government, for
certain programs, and to capitalize funds; 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.
CS HB 103 (FIN) was reported out of Committee with
a "do pass" recommendation.
HB 104 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.
CS HB 104 (FIN) was reported out of Committee with
a "do pass" recommendation.
hb104
HOUSE BILL NO. 103
An Act making appropriations for the operating and loan
program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date.
HOUSE BILL NO. 104
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.
DEPARTMENT OF EDUCATION
Co-Chair Mulder MOVED to ADOPT DEED-#1.
ADD:
Department Department Education & Early Development
BRU Early Development
Component Head Start Grants
FUND SOURCE AMOUNT
ILTF $100,000
Co-Chair Mulder explained that the amendment would provide
increased funding for Head Start Programs. The money will
act as match funding in order to bring in $500,000 in
federal funds.
Representative Davies interjected that Head Start has been
one of the most studied education programs and has proven to
be a highly effective program. He hoped that the State
would continue to fund the Head Start Program and capture
all federal funding available to that program.
There being NO OBJECTION, DEED-#1 was adopted.
Co-Chair Mulder AMENDED and MOVED to ADOPT Amendment DEED-2.
ADD:
Department Education & Early Development
BRU Teaching and Learning Support
Component Education Special Projects
FUND SOURCE AMOUNT
General Fund Match $20.0
Co-Chair Mulder explained that the proposed amendment would
restore $20.0 to the Americorp Program.
There being NO OBJECTION, DEED-#2 was adopted.
Co-Chair Mulder AMENDED and MOVED to ADOPT Amendment DEED-
#3.
ADD:
Department Education & Early Development
BRU Pupil Transportation
Component Pupil Transportation
FUND SOURCE AMOUNT
AHFC Dividend $1,000.0
Co-Chair Mulder explained that the proposed amendment would
increase pupil transportation funding. In response to
concerns voiced by Representative Croft, Co-Chair Mulder
explained that the attempt was to keep the amount of growth
to a minimum, recognizing that pupil transportation is a
long-term cost. He noted that they recognize that this is
an early point in the budget process and that the dividend
at this point is a "place" holder.
Representative Davies noted that there is an additional $1.4
million required to cover the expected pupil transportation
funding. He stated that to fully cover those costs, it will
end up coming out of the classroom or some other
administrative part of the education budget.
Co-Chair Mulder stated that the local school districts will
have to come up with the extra funds. He emphasized that
this year, there is $5 million additional dollars. Last
year, there was a one-time fund source of $4 million
dollars. He believed that the State is making significant
progress. Most of the pupil transportation costs are
related to the five-year contracts. The State has not
realized savings from kids taking the bus. The Department
has aligned their contracts in the Anchorage area with four
or five contract bids.
Representative Davies understood that through that
alignment, the rate of growth had been reduced.
Representative Croft interjected that he did have an
amendment to fully fund pupil transportation. He commented
that he would modify his amendment to reflect action of the
Committee on the proposed amendment.
There being NO OBJECTION, DEED-#3 was adopted.
Representative Davies MOVED to ADOPT DEED-#4. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Executive Administration
Component Commissioner's Office
FUND SOURCE AMOUNT
General Fund $33.5
I/A Receipts $31.4
Representative Davies explained that the amendment would
restore the reduction made in Subcommittee to eliminate the
part-time Special Assistant in the Commissioner's Office.
Co-Chair Mulder commented that the Subcommittee has been
trying to create efficiencies within the Department. He
advised that position has been eliminated for three years.
He noted that the position does not "go away" even if it is
not funded.
Representative Davies argued that the Legislature has been
encouraging efficiencies for five years. The Department has
been cutting into "bare bones" ability to execute timely
work.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT DEED-#5. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Teaching & Learning Support
Component Quality Schools
FUND SOURCE AMOUNT
General Funds $2,000.0
Representative Davies explained that the amendment includes
funding requested by the Governor's Education Funding Task
Force for incentives for high performing schools.
Representative J. Davies spoke to the Task Force, which was
a bipartisan task force, well balanced with participants
from the PTA and broad ranging task force. They looked at
the recommendations from the entire State. It was their
opinion in making the transition to the high stake exist
exams and increased accountability that the State will need
incremental funding. The amendment provides "carrots" for
those schools that have shown significant performance.
Co-Chair Mulder countered that the issue did not come before
the Subcommittee. He was not convinced that the system
would change. The Department has not yet submitted a
proposal of how to change the current challenges.
Representative J. Davies stated that was the point of the
educational summit that happened last year to address the
exit exam. They considered on a district-by-district basis
what the results were. He emphasized that a great deal of
work had been done on that concern. Following that, the
Task Force recommended changes. Those changes cannot be
made without additional resources. There must be transition
money. He noted that he was surprised that the Subcommittee
had not received a presentation by the Task Force. He
recommended that the Legislature should provide a forum for
the work produced by the Task Force.
Representative Croft interjected that the State can no
longer afford to be in status quo with education. He
stressed that this is important public policy issue. Vice-
Chair Bunde agreed that the State does not want to continue
with the status quo situation, however, did not believe that
the amendment was necessary.
Representative Harris recommended that the amendment be
included in some of the education legislation that is
currently floating around the Legislature.
Representative Davies advised that the report had been
available since February 1st. The Task Force provided a
serious attempt to deal with an imminent statewide problem,
identifying problems with education. He asked where the
Legislature would identify the fundamental problem.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
Representative Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Davies MOVED to ADOPT DEED-#6. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Teaching & Learning Support
Component Quality Schools
FUND SOURCE AMOUNT
General Funds $2,000.0
Representative Davies noted that the amendment includes
funding requested by the Governor's Education Funding Task
Force for the Center for School Excellence.
He noted that unless the law is changed, beginning in 2002,
students must pass a competency exam to receive a diploma in
Alaska. In order to be legally defensible, the State must
demonstrate that intervention activities have been provided
for those students at risk of not receiving a diploma.
Representative Davies noted that there are two issues:
· The test and
· The tools needed to pass the test.
Representative J. Davies commented that the test would be
challenged if the State's education system is not improved.
Vice-Chair Bunde noted that Legislative Legal Services have
indicated that the Alaska State exit tests are currently,
legally defensible. Representative J. Davies stated that
there are two issues, one being the test and one being the
educational effort put forward by the State to help pass
that test.
Co-Chair Mulder reminded members of changes made in SB 36,
and the foundation formula $4 million dollars addition.
Last year, $6 million dollars a year was added for learning
opportunity grants. He surmised that the State has made a
substantial contribution to these concerns.
TAPE HFC 01 - 49, Side B
Representative Davies reminded members of last year's
reduction in funds. He mentioned the fixed costs of each
school district. He stressed that the school districts have
had to make difficult decisions to accommodate these costs.
He emphasized that the Task Force were not "casual
observers". They made recommendations that the funding was
needed. Co-Chair Mulder countered that Representative J.
Davies was placing the Task Force at a level of legitimacy
that he did not agree with.
Representative Croft reaffirmed that the House Finance
Committee was the place where a discussion on education
should occur. If money was going to be placed into the
education budget, the House Finance Committee is the place
where it should happen.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT DEED-#7. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Alyeska Central School
Component Alyeska Central School
FUND SOURCE AMOUNT
$1,000.0 General Funds
Representative Davies noted that the amendment includes
funding requested by the Governor's Education Funding Task
force for distance delivered core courses based on State
standards to be offered to high schools with fewer than 50
students.
Co-Chair Mulder countered that there is merit to the focus,
however, he did not know how it could be effectively
administered or applied. He observed that he was not
comfortable that it could be a service that would be
utilized by the rural schools.
Representative Davies emphasized there if there were not an
opportunity for the Task Force to have a hearing, there will
not be any input regarding these concerns. He recommended
that the work of that group be recognized. Co-Chair Mulder
commented that the discussion would happen, however, he did
not know if the Committee would agree with the outcome of
that work.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Williams,
Mulder
Representative Whitaker and Vice-Chair Bunde were not
present for the vote.
The MOTION FAILED (3-6).
Representative Davies MOVED to ADOPT Amendment DEED-#8. Co-
Chair Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Early Development
Component Childcare Assistance and Licensing
FUND SOURCE AMOUNT
General Fund $427.6
Representative J. Davies noted that the Subcommittee had
reduced the funding for the childcare subsidy program. The
reduction represents the state general fund portion of the
FY02 budget request, which also included $3 million dollars
from welfare reform savings. If the level of funding
proposed is not sufficient to provide childcare subsidies to
eligible families, the Department will seek supplemental
funding in FY02.
Co-Chair Mulder advised that the childcare wait list has
been effectively eliminated. He stated that it is not a
mandated function that the State provides any level of
funding to that component. He noted that extra funds had
been added to that component last year.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Williams,
Mulder
Vice-Chair Bunde and Representative Whitaker were not
present for the vote.
The MOTION FAILED (3-6).
Representative Davies MOVED to ADOPT DEED-#9. Co-Chair
Mulder asked if Representative Davies wanted to change the
BRU and Component. Representative Davies understood that
this was for early involvement. Representative J. Davies
stated that he did not want to make those changes as these
concerns address parent involvement and early childhood
issues.
ADD:
Department Education and Early Development
BRU TLS
Component Special Programs
FUND SOURCE AMOUNT
General Fund $1,000.0
Representative Davies explained that this increment would
fund a new program of professional development, parent
education, and training opportunities to support parent
involvement with their children's literacy development,
education, and over all health and development
BETH NORDLUND, SPECIAL ASSISTANT, DEPARTMENT OF EDUCATION &
EARLY DEVELOPMENT, explained that the Subcommittee had moved
some things from Early Development to Teaching and Learning
Support (TLS).
Representative J. Davies noted that the Department objected
to making the changes from Early Development to TLS. He
emphasized that this is very much an early development
issue. The point is to support parents that have very young
children to learn more about issues of literacy development.
Co-Chair Mulder explained why these early programs had been
shifted to TLS.
Representative Davies restated the amendment with the
changes as noted. He MOVED the amended amendment. Co-Chair
Mulder OBJECTED.
Co-Chair Mulder stated that the Department did receive a
grant for $2.5 million dollars for a program called Even
Start, which could accomplish those goals with that funding.
He opposed paying parents to get involved in their
children's education.
Representative Davies argued that the reality is that there
are many kids for which it is a miracle if they are able to
show up at all. The more help that these children receive
at a young age the better off they will be.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Moses, Davies
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to AMEND DEED-#10, indicating
$15.0 thousand dollars. Representative Croft MOVED to adopt
DEED-#10. Co-Chair Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Early Development
Component Special Programs
FUNDING SOURCE AMOUNT
General Funds $15.0
Representative Croft noted that the amendment would restore
the personal services reduction.
Representative Croft commented that the Subcommittee's
decrement in general fund, impacts the ability of the Alaska
State Community Service Commission to meet their match for
administrative funds for the federally funded community
service/volunteerism program.
Approximately $2 million federal grant fund dollars are
available to Alaska for the program with a very small
administrative match. The reduction would impact the
commission's ability to administer funds and meet the
Federal program requirements.
Vice-Chair Bunde commented that the program would be able to
adequately move forward with the additional funds provided
in the previous amendment.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT DEED-#11. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Teaching & Learning Support
Component Quality Schools
FUND SOURCE AMOUNT
General Fund $74.3
Representative Davies stated that the amendment would fund a
full time Education Specialist to administer to the
Statewide Correspondence Program.
EDDY JEANS, SCHOOL FINANCE MANAGER, DEPARTMENT OF EDUCATION
& EARLY DEVELOPMENT, explained that there has been an
increase in statewide correspondence programs being offered
by school districts. The Department does not have the staff
to oversee and monitor the need of regulations developed for
the program.
Representative J. Davies asked if General Education Diploma
(GED) students would utilize the services outlined in the
amendment. Mr. Jeans stated they would not.
Co-Chair Mulder voiced opposition to the amendment and
commented that it was a situation of "loving something to
death".
Representative Davies noted that the students are "dragging
their feet" and there is no one in the Department to address
the problem. Co-Chair Mulder disagreed. Representative
Davies emphasized that it is difficult for kids to access
services without the proper staff. Co-Chair Mulder
commented that it is a question of how much regulation and
oversight should be put on the entity.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Harris, Hudson, Lancaster, Whitaker, Bunde,
Williams, Mulder
Representative Foster was not present for the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT DEED-#12. Co-Chair
Mulder OBJECTED.
ADD:
Department Education & Early Development
BRU Teaching & Learning Support
Component Quality Schools
FUND SOURCE AMOUNT
General Funds $730.0
Representative Croft stated that the amendment includes
funding requested by the Governor's Education Funding Task
Force for an increase in the Department's capacity to gather
and report data for schools and to provide support to
schools in the collection and reporting of information.
Mr. Jeans added that the amendment was recommended from the
Governor's Statewide Task Force. He noted that the
information would be used to identify student's performance.
Co-Chair Mulder did not agree with placing that amount of
money would change the current problems that students have
in passing the test. He believed that sufficient funding has
been added to address that concern.
Representative Davies interjected that the nature of
education is changing. The amendment would provide two
technical positions that would provide analysis of the data.
If the exit exam were to be administered, the funding from
the amendment would provide a tremendous amount of
information available for educational concerns.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,
OFFICE OF THE GOVERNOR, spoke to the benefits, which the
data could provide. She insisted that it is essential that
the issues be analyzed and that these tools are available.
TAPE HFC 01 - 50, Side A
Ms. McConnell responded that the information has been
available and pointed out that the Task Force would be in
Juneau on the 19th of March.
Representative Croft questioned if the bar is at the right
height. He emphasized that this is the time to understand
the data.
Representative Davies stressed that setting the cut score is
a major issue.
Mr. Jeans noted that book marking would be an on-going
expense because the test will have to be re-evaluated. Co-
Chair Mulder concluded that Representative Davies' concerns
were addressed in the base. Representative Davies responded
that the department is requesting additional assistance.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment DEED-13:
Add:
BRU Teaching & Learning Support
Component Quality Schools
General Funds $2,000.0
Assistance for Low Performing Schools.
This amendment includes funding requested by the
Governor's Education Funding Task Force for Assistance
for Low Performing Schools.
** Unless changed, beginning in 2002 students must pass
a competency exam to receive a diploma in Alaska. In
order to be legally defensible, the state must
demonstrate that intervention activities have been
provided for those students at risk of not receiving a
diploma.
Co-Chair Mulder emphasized that the formula has been funded
to the statutorily required limit. He noted that enrollment
has had a moderate reduction. Property tax assessment
increases and federal impact aid have increased, decreasing
state support. He acknowledged that the state's contribution
has been reduced. He observed that the task force
recommended $34 million dollars in additional contribution.
He observed that it would take a head tax of $250 dollars
per working person to pay for the initiative.
Representative Davies pointed out that students would be
denied diplomas in the next year. He questioned what would
be done to help low performance schools. He stressed that a
plan should be in place. He pointed out that some
communities are up against the property tax cap and cannot
offset the decrease in [state funding]. He maintained that
there are good schools in the state of Alaska. The state is
above the national average. He stressed that the paradigm
for education has shifted.
Vice-Chair Bunde observed that 10 percent of the students do
not currently receive diplomas.
Representative Davies responded that there would be a
substantial change in procedures [by implementation of the
exit exam], in that students that would otherwise receive
diplomas would be denied.
Co-Chair Mulder stressed that the change is outcome based
and felt that the change was positive. Representative Davies
responded that the program is complex and emphasized that
there are no simple conclusions.
Representative Hudson asked why the formula is not being
addressed to give schools additional funding if that is what
is needed. He questioned how funds would be directed to
address the concerns identified in the amendments.
Representative Davies agreed that the formula should be
addressed and possibly modified. He discussed
recommendations of the Governor's Task Force on Education.
The Task Force concluded that schools that were designated,
as low performing would access the funds based on a plan
developed by the Department of Education and Early
Development. The funds would be distributed in awards from
$10 - $100 thousand dollars depending on the size and type
of school. The appropriation of $2 million dollars in grants
would be decreased as performance increases.
Representative Croft argued that the funds would be targeted
to schools that need them most. He pointed out that
legislators wrote the formula and implied that they could
change the formula. He maintained that $14 million dollars
of the cost of education is being shifted from the state to
local governments through the shift in federal impact aid,
addressed in SB 36. He discussed the performance of one of
the schools in his district (North Star). He pointed out
that the amendment only proposes an additional $2 million
dollars. A $250 dollar tax per working person would fund all
of the Task Force proposals, which would cost $34 million
dollars.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Lancaster, Whitaker, Mulder
Representatives Hudson and Williams were absent from the
vote.
The MOTION FAILED (3-6).
Representative Croft MOVED to ADOPT Amendment DEED-14:
Add:
BRU Early Development
Component Head Start
General Funds 562.4
This adds in General funds that would support Alaska's
Head Start grantees in applying for and receiving a
projected $3,312.0 available in federal program
expansion funds. These federal funds are provided
directly to the Head Start Grantees and require a 20%
match.
These new federal expansion funds will be used to
expand services to approximately 325 children in 6-8
communities.
Absence of increased state funds will require grantees
to locate local sources to meet the match requirements.
Representative Croft observed that the amendment was reduced
by $100 thousand dollars previously appropriated by the
Committee. He noted that 11 different studies over the last
15 years have shown that Head Start helps children and
results in substantial savings.
Vice-Chair Bunde acknowledged the benefit of early
educational programs. He noted that local grantees would be
required to come up with the match and felt that it was
appropriate for local communities to put forward the
contributions.
Co-Chair Mulder suggested that local communities could step
up to the plate.
Representative Davies pointed out that it is a statewide
issue. Anchorage has the biggest number of children that
would be served by the program. He observed that only 25
percent of the federal funding is being captured due to a
lack of match.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Mulder
Representative Williams was absent from the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment DEED-15:
Add:
Education Support Services
District Support Services
$350.0 General fund
District Cost Factor Study. This amendment includes
funding requested by the Governor's Education Funding
Task Force for a District Cost Factor (DCF) Study.
According to the Department, without these funds, the
Department will be unable to comply with the statutory
requirement to recommend updates to DCFs on a biennial
basis.
Representative Croft spoke in support of the amendment. He
referred to the Task Force Recommendations. He stressed the
need to assure that the cost factors used in the foundation
formula are reasonable. He maintained that the cost factors
methodology was flawed.
Co-Chair Mulder acknowledged that the request was
meritorious. He pointed out that it is a one time cost and
suggested that it could be addressed in the capital budget.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment DEED-16:
Add:
Pupil Transportation
$1,467,00 General fund
This amendment will provide full funding for the
projected Pupil Transportation costs for FY02.
The Subcommittee funded Pupil Transportation at 95%. If
full funding is not received, the Department will be
back with a Supplemental next year.
Representative Croft spoke in support of the amendment. He
explained that increases in pupil transportation costs were
the result of a single contract. Multiple bids were issued
and the cost rate growth has slowed from 12 percent to 2-3
percent. He emphasized the direct impact to schools.
Co-Chair Mulder stated that pupil transportation was funded
at the 95 percentile. He thought that there would be
additional focus on full funding, but did not think that the
state could afford more at the current moment.
Representative Whitaker spoke in support of the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Hudson, Lancaster, Whitaker, Moses
OPPOSED: Bunde, Foster, Harris, Williams, Mulder
The MOTION PASSED (6-5).
RECESSED
The Committee recessed at 3:01 p.m.
RECONVENED
Reconvened at 3:18 p.m.
Co-Chair Williams MOVED to Rescind the Committee's action in
adopting Amendment DEED-16. Representative Croft OBJECTED.
Representative Davies spoke against the motion.
Representative Croft referred to the open meeting guidelines
and noted that some of the majority members met after the
previous vote.
Representative Whitaker observed that no vote was taken
during the meeting and stated that discussion centered on
strategy regarding the education budget. Representative
Hudson noted that strategy issues could be discussed during
closed-door meetings. Representative Harris agreed that
members could iron out differences during closed-door
meetings. Representative Lancaster agreed that no votes were
taken and a majority was not present at the meeting.
Discussion ensued regarding caucus decisions and open
meetings.
A roll call vote was taken on the motion.
IN FAVOR: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
OPPOSED: Croft, Davies, Moses
The MOTION PASSED (8-3).
The main motion was before the committee. Representative
Croft argued in support of Amendment DEED-16.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
DEPARTMENT OF LABOR
Representative Davies MOVED to ADOPT Amendment LAB-1: ~
ADD
BRU: Employment Security
Component: Job Training Programs
Fund Source Amount
Technical Vocational Education Program Funds $4,553.8
The Employment Security Division (ESD), Job Training
Programs component, requests a FY2002 budget increase
of $4,553.8 from fund code 1151 for the Technical
Vocational Education Program (TVEP). This request was
inadvertently excluded from ESD's original FY2002
budget submission.
The Technical Vocational Education Program was created
July 1, 2000 by state legislation SB289 (AS 23.15
article 7). The Alaska Human Resource Investment
Council (AHRIC), housed in the Department of Labor and
Workforce Development, was provided oversight, grant
administration and regulatory powers over this program.
A new TVEP fund account was established and one tenth
of one percent from the employee's Unemployment
Insurance (UI) tax deposited in the UI trust fund was
transferred to the TVEP program. Under the AHRIC's
guidance, the program provides vocational training in
one or more program elements, including industry
specific training, on-the-job training and
institutional or classroom training.
The majority of funds will go to vocational programs as
identified by the AHRIC, with a focus on training
programs and services in high wage and high demand
occupation areas. It is anticipated that approximately
1,500 participants will be served with these funds
through grantees and contractors.
Representative Davies spoke in support of the amendment. He
noted that the request was inadvertently excluded from the
department's submission.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
spoke in support of the request. The funding is the result
of legislation passed in the previous year (SB 289:
Vocational Education). One tenth of one percent of
unemployment insurance benefits is directed to the program
for vocational education. The request should have been
included in the department's budget submission.
RON HULL, ACTING DIRECTOR, DIVISION OF EMPLOYMENT
SECURITIES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
discussed the program. He explained that the Council will
identify the high wage, high demand occupations that would
require training for Alaskans to fill.
Co-Chair Mulder noted that funds were given to the
University of Alaska, Kotzebue Technical Center and Alaska
Vocational Technical Center. He spoke in support of
continuing the program for another year.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT Amendment LAB-2:
Vocational Rehabilitation
Independent Living Rehabilitation
Add 90.0 GF
Without this increment outreach services for people
with disabilities will not be able to expand to rural
areas.
Representative Davies spoke in support of the amendment. The
appropriation would allow an increase of outreach services
for persons with disabilities into rural areas of the state.
Representative Hudson explained that the request was
seriously considered. An excess of $600 thousand dollars
were approved for other programs for the department's
highest priorities. It was not one of the department's
highest priorities.
Representative Davies stressed that the program should be
expanded to serve rural Alaska.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment LAB-3:
Office of the Commissioner
Commissioner's office
Add: 10.0 GF
This increment of $10.0 of general fund money will
restore the reduction made in House Finance Budget sub-
committee.
Representative Croft stressed that there is very little
general fund money in the Department of Labor's budget. Most
of the Occupational Safety and Health Administration (OSHA)
programs are federally funded.
Representative Hudson explained that $10 thousand dollars
was taken from the Commissioner's Office to fund an
additional hearing officer (at $93 thousand dollar). The
hearing officer was added in order to reduce the backlog of
injured worker cases. The deputy commission position was
vacant. The Subcommittee felt that the position could be
filled at a lower grade.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Moses
OPPOSED: Bunde, Davies, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (2-9).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Harris MOVED to ADOPT Amendment HSS-1:
DELETE
Medical Assistance
Medicaid Services
3,720,500 GENERAL FUND
ADD
Medical Assistance
Medicaid Services
Tobacco Settlement 3,720,500
Purpose: Appropriately accounts for Tobacco settlement
funds to the Medicaid program
Representative Harris explained that the amendment would
change the fund source. These funds would replace general
funds.
Representative Croft questioned why the funds aren't being
used for tobacco cessation programs.
Representative Harris noted that there are $1.4 million
dollars for tobacco cessation.
Co-Chair Mulder noted that many of the affects of tobacco
are supported within the Medicaid component. Representative
Davies responded that prevention would provide a substantial
savings. Only $1.4 million of the $20 million received by
the state is going for cessation programs. He estimated that
$8 million dollars is needed to be effective.
Representative Harris observed that it is a complicated
issue.
Representative Croft MOVED to AMEND the amendment by
retaining the general fund appropriation in Medicaid
Services and adding $3,720,500 dollars to State Health
Services for Tobacco Prevention and Control. He noted that
tobacco cessation programs would then be funded at $5.1
million dollars.
Co-Chair Mulder spoke against the amendment to the
amendment. He pointed out that the tobacco funds are
considered as general funds and would count against the cap.
Representative Harris pointed out that some of the freed
general fund money would go to provide increases to nurses'
salaries in other places in the budget.
TAPE HFC 01 - 51, Side A
A roll call vote was taken on the motion of the amendment to
the amendment.
IN FAVOR: Davies, Bunde, Croft
OPPOSED: Foster, Hudson, Lancaster, Whitaker,
Williams, Mulder
Representative Moses and Representative Harris were not
present for the vote.
The MOTION FAILED (3-6).
A roll call vote was taken on the motion to adopt HSS-#1.
IN FAVOR: Foster, Harris, Lancaster, Whitaker, Bunde,
Williams, Mulder
OPPOSED: Davies, Croft
Representative Moses and Representative Hudson were not
present for the vote.
The MOTION PASSED (7-2).
Representative Harris MOVED to ADOPT Replacement HSS-#2.
Representative Croft OBJECTED for an explanation from the
Department.
DELETE:
Department Department of Health & Social Services
BRU Public Assistance Administration
Component Public Assistance Administration
FUND SOURCE AMOUNT
Federal Receipts $35.0
BRU Fraud Investigations
Component Fraud Investigations
FUND SOURCE AMOUNT
General Funds $165.0
ADD:
Department Department of Health & Social Services
BRU Fraud Investigations
Component Fraud Investigations
FUND SOURCE AMOUNT
Federal Receipts $35.0
BRU Public Assistance Administration
Component Public Assistance Field Services
FUND SOURCE AMOUNT
General Fund $165.0
Representative Harris testified that the amendment would
provide one additional fraud investigator in FY02 budget by
allocating a portion of the Field Services budget to Fraud
Investigation. He added that the Department did support the
amendment.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to the
number of fraud investigators needed and acknowledged that
an additional fraud person could be used but was concerned
with the transfer from field services. She commented that
the amendment provides a "reasonable" alternative to the
Department's needs.
Representative Croft WITHDREW his OBJECTION to HSS-#2.
There being NO further OBJECTION, HSS-#2 was adopted.
Representative Harris MOVED to ADOPT Amendment HSS-3.
Representative Croft OBJECTED.
DELETE:
Department Department of Health & Social Services
BRU Balloon Project
Component Balloon Project
FUND SOURCE AMOUNT
General Fund $1,386.6
ADD:
Department Department of Health & Social Services
BRU Balloon Project
Component Balloon Project
FUND SOURCE AMOUNT
Federal Funds (TANF) $1,386.6
ADD:
Department Department of Health & Social Services
BRU Administrative Services
Component Unallocated
FUND SOURCE AMOUNT
$600,000 General Fund/Mental Health
$500,000 General Fund
Representative Harris explained that the purpose of the
amendment would replace general funds with TANF funds and
would then redistribute the general funds to other
activities. The balloon project is being extended one year
beyond its original agreed date and that it is not intended
to be a permanent activity, thus, the use of a temporary
fund source would be appropriate.
Representative Davies asked if TANF funds were available.
Co-Chair Mulder clarified that these funds were known to be
a one-time approach. Representative J. Davies asked if the
program would be able to carry out its initial mission in
the two-year framework. Co-Chair Mulder stated that it was
never the intention that the program would be longer than a
two-year funding.
Ms. Clarke identified that the balloon project was started
as a temporary solution. She admitted that the outgrowth of
the project has been successful within all the departments
working together for these kids. The number of adoptions
taking place in the State has doubled. Foster care rates
are lower than they have been for the first time in four
years. The Department claims that the program is working
and wants to keep the project going so that those children
in foster care can hopefully get permanent homes. She added
that the TANF funds are an appropriate fund source to use
for the project.
Co-Chair Mulder asked what the Governor's proposed number
and spending for TANF funds was and how they compared to the
number contained within the FY02 proposed budget. Ms.
Clarke did not know.
Representative Davies advised that the Balloon Project saved
the Foster Care Program $750 thousand dollars.
There being NO OBJECTION, HSS-#3 was adopted.
Representative Croft MOVED to ADOPT HSS-#4. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Public Assistance
Component Adult Public Assistance
FUND SOURCE AMOUNT
General Fund $1,205.1
I/A Receipts $ 85.0
Representative Croft commented that the Department had
predicted a 4.7% growth rate, while the Subcommittee
accepted a growth rate of less than 2% for FY01. He
commented that Public Assistance (APA) is a formula-based
program and that the Department would have to request a
supplemental budget request next session if it is under-
funded.
Representative Croft stressed that APA provides cash
assistance to needy aged, blind, and disabled adults who
meet certain income and resource requirements. People
served are over 65 years old or have severe or long-term
disabilities.
Representative Harris responded that the Subcommittee
anticipates less of a growth rate than the Department does.
Representative Croft noted that the concern is a caseload
driven deal. In response to Co-Chair Mulder, Ms. Clarke
clarified that the Legislature has always funded Adult
Public Assistance.
Representative Croft WITHDREW HSS-#4.
Representative Croft MOVED to ADOPT HSS-#5. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Medical Assistance
Component Catastrophic & Chronic Illness Assist.
FUND SOURCE AMOUNT
General Fund $734.4
Representative Croft explained that the amendment would
restore utilization growth to 10% ($430.0 general funds) and
would restore the Subcommittee reduction in payments to
hospitals by $304.4 general funds. He noted that the
reduction taken by the Subcommittee applies to hospital
payments. It would be particularly difficult for the
smaller hospital facilities to absorb the cut.
Ms. Clarke added that the program serves the very poorest of
poor. They have to have less than $300 dollars of income
per month, $500 dollars in assets and a life threatening
illness. The highest use of the funds is for prescription
drugs. Hospitals will have to continue to serve these
individuals if they come in their door without payment.
Representative Harris countered that there were difficult
decisions that had to be made within the budget. One of the
directives given to the Department was that prescriptions
services not be reduced. He added that there would be no
hospital that will turn down these people.
Representative Croft pointed out that the Legislature was
directing the Department to cut some of the payments that
they make to hospitals. He stressed that this is an
unfunded mandate and that it is clear who will be
responsible for paying the costs to the private hospitals.
He commented that this is bad policy.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams
Co-Chair Mulder was not present for the vote.
The MOTION FAILED (3-7).
Representative Davies MOVED to ADOPT HSS-#6. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Public Assistance Administration
Component Public Assistance Field Services
FUND SOURCE AMOUNT
General Fund $200.0
Representative Davies stated that the amendment would
restore a decrement made by the Subcommittee, which would
impact the fee agent services. Currently, the entire budget
for fee agents is $200.0, of which 90% is funded through
federal and general fund match sources; only $21.0 is
general fund. The Subcommittee action would have the
unintended impact of cutting four existing APA caseworkers
that collectively manage an average monthly caseload of
1,200.
Representative Harris indicated that the funding had been
added back through passage of HSS-#2.
Ms. Clarke explained that there had been a cut to the base
budget. She stressed that this would be a "serious" cut to
the program. Ms. Clarke elaborated on the work accomplished
by the program. She noted that the concern had not been
addressed in HSS-#2.
Representative Harris stood correct, however, noted that the
Subcommittee had taken a reduction, noting that the
Department was receiving $25 million dollars overall. The
money was needed in other places in that budget.
Representative Davies countered that of the $25 million
dollars was mostly federal money. Without the general
funds, these cases cannot be addressed. Representative
Harris countered that half of the money was general fund
money. Ms. Clarke reported that the general fund match
dollars were not reduced.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Harris, Hudson, Lancaster, Whitaker, Bunde,
Williams
Representative Foster and Co-Chair Mulder were not present
for the vote.
The MOTION FAILED (3-6).
Representative Davies MOVED to ADOPT HSS-#7. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Purchased Services
Component Foster Care Special Need
FUND SOURCE AMOUNT
General Fund $150.0
Representative Davies explained that the amendment would
fund the increment for the Citizen Review and Participation
in Six-Month Review Conference.
He added that since the closure of the Foster Care Review
Board, an increase required that the Division has absorbed
reviews. The Division's goal is to have at least one
community member participate in every federally required
six-month review conference.
Representative Harris suggested that this was not a high
priority of the Department. Representative Davies asked
what the choices made by the Subcommittee had been based
upon. He asked what is the best thing the State can do for
all those children in foster care.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Harris, Hudson, Lancaster, Whitaker, Bunde,
Williams
Co-Chair Mulder and Representative Foster were not present
for the vote.
The MOTION FAILED (3-6).
Representative Croft MOVED to ADOPT HSS-#8. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Purchased Services
Component Subsidized Adoptions and Guardianship
FUND SOURCE AMOUNT
General Fund $1,069.9
Representative Croft explained that the Subcommittee failed
to fully fund the program. Due to the progress of the
Balloon Project, adoptions have significantly increased.
The Department anticipates the number of children in this
program to increase by 14% to 1,518 in FY01, with an
additional 14% growth to 1,730 in FY02 (up from FY'00 level
of 1,332 and FY'99 level of 1,169).
Representative Harris commented that the Subcommittee
attempted to capture all possible federal dollars. He
recommended that if the program was short-funded, that
concern could be addressed through the supplemental.
Representative Croft strongly urged that this is a
worthwhile group of people to spend money on and that if the
budget is not funded, the cost to the State will be much
greater "down the road".
TAPE HFC 01 - 51, Side B
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams
Co-Chair Mulder was not present for the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT HSS-#9. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Front Line Social Workers
Component Front Line Social Workers
FUND SOURCE AMOUNT
General Fund $450.0
Representative Croft explained that the amendment would fund
the increment for case-note transcription services for
social workers statewide.
Representative Croft noted that a pilot project had been
initiated last year and the preliminary results indicate
that social workers using the transcription services spent a
weekly average of 7.5 hours less on completing paperwork.
Utah implemented the service and has seen an immediate
decrease in the amount of time spent on clerical
documentation.
He added that implementation of the service would allow
social workers to spend more time in the field and would
improve casework management because of the rapid turnaround
in entering casework documentation in the files. Basically,
social workers call a toll free number and dictate their
case documentation at any time from a touch-tone phone.
Dictation is digitally recorded, transcribed, and
electronically transmitted to the agency's office in less
than two business
Representative Harris commented that the request was not a
high priority and therefore was not funded.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative Davies MOVED to ADOPT HSS-#10.
Representative Harris OBJECTED.
ADD:
Department Department of Health and Social Services
BRU Front Line Social Workers
Component Front Line Social Workers
FUND SOURCE AMOUNT
General Fund $200.0
Representative Davies explained that the amendment would
fund the increment for implementation of the risk and safety
assessment tool, which was a recommendation of the 1998
Legislative Audit report on social workers.
Representative Harris interjected that it had been a
difficult decision to make, however, the Subcommittee
submitted that this was not the highest priority and that it
did not fit within the budget caps.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
RECESSED
The Committee recessed at 4:45 P.M.
RECONVENED
The Committee reconvened at 4:55 P.M.
Representative Croft MOVED to ADOPT HSS-#11. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Juvenile Justice
Component Mclaughlin Youth Center
FUND SOURCE AMOUNT
General Fund/Mental Health $292.5
Representative Croft noted that the amendment would provide
services for youth offenders with substance abuse and/or co-
occurring substance abuse and mental illness in order to
reduce unnecessary and inappropriate detentions. The
addition would increases effectiveness of multiple agencies
serving the youth through improving interagency coordination
and collaboration between:
· Division of Juvenile Justice;
· Division of Mental Health and Developmental
Disabilities; and
· Division of Alcohol and Drug Abuse.
Additionally, the amendment would provide transitional
services targeted for youth leaving secure juvenile
institutions because they require more intensive services,
such as transitional housing and treatment services.
Representative Harris commented that he had contacted the
Mental Health Trust Board to determine their priorities. He
commented that this proposed project was not a top priority
for that Board. The Subcommittee did not include the
component in the funding list. Co-Chair Mulder noted that
when there is a priority for that Board and it is not funded
through the operating budget, the Board usually provides the
necessary funding.
Representative Croft commented that there are a certain
amount of mental health concerns addressed in the operating
budget and that was the arrangement with the Mental Health
Board that the Legislature would continue an effort. Co-
Chair Mulder argued that there had not been a systematic
approach used to date.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT HSS-#12. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU McLaughlin Youth Center
Component Juvenile Justice
FUND SOURCE AMOUNT
General Fund/Mental Health $213.5
Representative Croft commented that the Project is meant to
divert alcohol, drug dependent and mentally ill juvenile
offenders from being inappropriately and/or repeatedly
detained due to lack of services addressing the contributing
causes of drug and alcohol dependency and mental illness.
The request would be consistent with the Alaska Mental
Health Board's emphasis on reducing the criminalization of
mental illness.
Co-Chair Mulder commented that this would be a worthwhile
goal, which is not necessarily refined yet.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT HSS-#13.
Representative Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Johnson Youth Center
Component Juvenile Justice
FUND SOURCE AMOUNT
General Fund $37.0
Representative Davies noted that the amendment would restore
$37 thousand dollars for opening the facility in Ketchikan.
The savings was estimated at $13 thousand dollars.
Restoring the $37 thousand dollars would reflect the more
accurate savings amount.
Representative Harris replied that the Department has the
ability to save more money than they believe they do. He
stated that the Department would probably be able to reach
their goal.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft, Hudson
OPPOSED: Foster, Harris, Lancaster, Whitaker, Bunde,
Williams, Mulder
The MOTION FAILED (4-7).
Representative Croft MOVED to ADOPT HSS-#14. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU Juvenile Justice
Component Probation Services
FUND SOURCE AMOUNT
General Fund $564.5
Representative Croft explained that in 1998, the Alaska
Legislature enacted changes to delinquency statutes that
shifted emphasis to greater offender accountability and
services to victims. The primary agent policing offender
accountability and insuring victim services are probation
officers. The request would add juvenile probation
officers/victim services to reduce highest caseloads in
Anchorage, Bethel, Dillingham, Kenai, Ketchikan, Kodiak and
Valdez, to accomplish greater juvenile accountability and
victim services.
Representative Harris countered that the program would be
adding nine new employees. He added that the State of
Alaska cannot afford the extra program proposal.
Representative Croft stressed that juvenile probations
services needs more assistance.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies asked if HSS-#15 would be covered
under HSS-#3. Ms. Clarke acknowledged that HSS-#3 would
address concerns indicated in HSS-#15.
Representative Davies WITHDREW HSS-#15.
Representative Croft MOVED to ADOPT HSS-#16. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU State Health Services
Component Nursing
FUND SOURCE AMOUNT
General Fund $852.2
Representative Croft explained that the amendment increment
for the "Back to Basics" initiative had been funded at 30%
of the requested level. The communicable disease problems
addressed in the Back to Basics programs such as TB, HIV,
Hepatitis, sexually transmitted diseases (STD), and loss in
immunization coverage, remain threats to the public's
health. Without full funding, some areas will continue to
experience disease problems, which could have been
identified, treated, and controlled with adequate nursing
personnel. He emphasized that the original proposal for
eleven nurses and four support staff was modest in terms of
the work needed to be accomplished. Current resources are
inadequate to meet the demand. He emphasized that this is
an increasing population. Representative Croft stressed
that the nursing component should be funded to help prevent
and contain infectious disease in the State. He warned of
the increase in TB cases throughout the State.
Co-Chair Mulder noted that currently the State spends $25
million dollars on public health. He suggested that these
issue should be under control with that size subsidy.
Representative Croft countered that with the process of
budget cutting over the past few years, the agency is as
lean as it can be, which erodes their ability to respond to
new situations.
Representative Harris advised that the nurse's component is
funded at $15 million dollars. He pointed out that there
were incremental increases.
Ms. Clarke stated that there are significant funds in the
Division of Public Health budget. Many of those are federal
funds and have other strings attached. She stressed that
the Division will continue to address epidemics but what
will happen is that other basic programs will suffer. She
reminded the Committee that the Back to Basis initiatives
addresses multiple concerns, not just TB. Ms. Clarke
emphasized that within the Division, not everything can be
accomplished.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies WITHDREW HSS-#17.
Representative Davies MOVED to ADOPT HSS-#18.
Representative Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU State Health Services
Component Epidemiology
FUND SOURCE AMOUNT
General Fund $439.0
Representative J. Davies noted that the Back to Basics
initiative was only funded at 30% of the requested level.
The communicable disease problems addressed in the Back to
Basics programs such as TB, HIV, Hepatitis, sexually
transmitted diseases, and loss in immunization coverage
remain threats to the public's health. Without full funding
the increment would mean that some areas would continue to
experience disease problems that could have been identified,
treated and controlled with adequate epidemiological
personnel. He stressed that TB, Hepatitis A, B and C as
well as several sexually transmitted diseases are on the
rise throughout the State.
Representative J. Davies noted that just this week, the
Centers for Disease Control and Prevention released national
data on the incidence of tuberculosis in the US. Alaska led
the Nation with the highest rate of increase of 77% for
2000. There are about 700 Alaskans who have been recently
infected with tuberculosis. Measles has also reappeared.
Current resources are inadequate to do the epidemiological
and laboratory fieldwork that is needed to keep these
diseases under control. A tuberculosis outbreak alone would
require countless hours of data tracking and follow up work.
Fully funding the increment would help control infectious
disease in Alaska.
Representative Harris countered that one-third of the
requests were funded. He noted that the Subcommittee went
after as much federal money as possible.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT HSS-#19. Representative
Harris OBJECTED.
ADD:
Department Department of Health & Social Services
BRU State Health Services
Component Infant Learning Program
FUND SOURCE AMOUNT
General Fund/Mental Health $700.0
Representative Croft noted the funding source change for the
Infant Learning Program/Early Intervention Services from I/A
to GF/MH.
Representative Croft stated that in FY 2001, the Legislature
added $700.0 in I/A receipts to the Infant Learning Program
and the Early Intervention Services in anticipation that a
federal grant for Fetal Alcohol Syndrome effect could be
used to provide services to the 300-waitlisted children. It
was discovered that using federal funds in that manner is
not allowed under that grant.
TAPE HFC 01 - 52, Side A
Representative Croft stressed that if services are delayed 6
months to a year that the advantage of early services would
be lost and the child might not be properly categorized as
an infant by the time services are provided. He observed
that the waitlist was continued last year due to an
inability to access federal Fetal Alcohol Syndrome funds.
Representative Harris acknowledged the need and commented
that he was committed to looking at the program during the
interim.
Representative Davies stressed that failure to fund the
request would result in a cut to the program due to the loss
of FAS money. He asked that a serious look be taken at this
concern.
Ms. Clark clarified that FAS funds came from a grant
provided by Senator Stevens. It was an increment last year.
The House funded the request in FY01 through general funds.
The Senate replaced the general funds with FAS funds. The
FAS grants cannot be used for this purpose.
Co-Chair Mulder encouraged the Subcommittee chair,
Representative Harris, to review the request during the
interim.
Representative Davies reminded members how critical the
first three years are. Concerns will have to be addressed
more extensively later on, if they are not addressed in the
early stages of infancy.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Moses, Croft
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
Vice-Chair Bunde was absent from the vote.
The MOTION FAILED (3-7).
RECESSED
The Committee recessed at 5:40 P.M.
RECONVENED
The Committee reconvened at 6:42 P.M.
Representative Croft WITHDREW Amendment HSS-20.
Representative Harris OBJECTED.
Add:
Public Health Laboratories
State Health Services
$235,0 GENERAL FUND
Representative Davies MOVED to ADOPT Amendment HSS-21:
Representative Harris OBJECTED.
Add:
State Health Services
Tobacco Prevention and Control
1,600.0 GF
Smoking is the leading cause of preventable death in
Alaska, as in the U.S. as a whole. Tobacco is
responsible for one out five deaths in smoking
accounted for 19.8% of all deaths in Alaska. Alaska has
one of the highest smoking rates in the prevalence of
26.1%.
This amendment would increase current level of $1.4
million to $8.1 million, the recommended minimum
funding level endorsed by the Alaska Tobacco Control
Alliance for a comprehensive tobacco control program.
Representative Davies stated that the general funds could be
read as tobacco funds.
Representative Harris OBJECTED.
Representative Davies spoke in support of the request.
Representative Harris felt that there is probably close to
$8 million dollars spread through the operating budget for
tobacco related programs.
Co-Chair Mulder acknowledged the benefit of prevention, but
emphasized that it is ultimately a personal choice. He
acknowledged the costs of tobacco to the state [in terms of
health related services], but did not feel that youth
consumption would be affected by additional funds.
Representative Davies reiterated that the cost to the state
is the reason why more funds should be spent. He noted that
the state supports reducing alcohol consumption during
pregnancy because it saves future state funds. He stressed
that it is the same issue.
A roll call vote was taken on the motion.
IN FAVOR: Bunde, Croft, Davies, Moses
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
The MOTION FAILED (4-7).
Representative Hudson stated that he would like to see
information regarding the reduction of smoking related to
the increased cost of tobacco.
Representative Davies MOVED to ADOPT Amendment HSS-22:
Representative Harris OBJECTED.
Add:
Alcohol Safety Action Program
Alcohol and Drug Abuse Services
$1,366.1 G.F
Short Summary:
Alcohol Safety Action Program (ASAP) provides a
standardized statewide network of substance abuse
screening and case management of civil and criminal
cases. ASAP operates as a neutral link between the
justice and health care delivery system. This program
gets offenders into needed rehabilitation services.
Many rural ASAP offices have been closed and this
increment would reopen offices in five communities
including Bethel and Barrow and will increase funding
at ten other locations. This is a much-needed service
in rural Alaska.
Representative Davies spoke in support of the request and
noted that it would fund the Alcohol Safety Action Program.
He stressed that the program enforces sentencing of DWI's.
He observed that alcohol is one of the most serious problems
facing the state.
Representative Harris observed that the amendment would add
eight positions around the state and additional grant
funding. He noted that the subcommittee added approximately
$1 million dollars into this component. He added that the
subcommittee could not find further funding for the
component.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT Amendment HSS-23:
Representative Harris OBJECTED.
Add:
Alcohol and Drug Abuse Grants
Alcohol and Drug Abuse Services
$1,500.0 GENERAL FUND
Under federal law, known as the Synar Amendment, States
receiving a Substance Abuse and Mental Health Services
Administration Block grant must meet predetermined
targets for enforcing sales of tobacco to minors. The
federal mandate for the reporting period federal fiscal
year (FFY) 2000 could not exceed 20%. During this
period Alaska's non-compliance rate was 34%. This means
that minors participating in compliance checks were
successful in buying cigarettes 34% of the time. As a
result, the State of Alaska has recently been found in
non-compliance with Synar and stands to lose up to $1.5
million in federal substance abuse treatment funds. A
Congressional proposal has been approved, which allows
for new State tobacco funding as an alternative
"penalty
Representative Davies spoke in support of the amendment.
Ms. Clark explained that Congress has allowed a reduced
penalty provision. The state of Alaska's could avoid the
penalty if the state's enforcement were increased by $471
thousand dollars. Legislation would have to accompany the
funding.
Representative Harris noted that he is working on
legislation. He stated that the legislation could take care
of the funding.
Ms. Clark clarified that Congress provided that if the rate
of tobacco sales to minor were out of compliance that
alcohol block grants would be penalized. The problem is that
the $1.5 million dollar penalty [to the state's block grant]
will continue if the compliance rate is not brought under
control.
Representative Harris noted that the department has
attempted to bring their compliance numbers under control.
He maintained that enforcement needs to be improved and
fines enforced on business that do not observe the statutes.
Representative Davies pointed out that there are not enough
troopers to enforce the statutes.
Representative Davies WITHDREW Amendment HSS-23.
Representative Davies MOVED to ADOPT Amendment HSS-24:
Representative Harris OBJECTED.
Add:
Alcohol/Drug Abuse Services
Alcohol/Drug Abuse Grants
$2,000.0 GENERAL FUND
Short Summary:
The intent of this increment is to eliminate the
waitlist for substance abuse treatment by increasing
outpatient and residential treatment capacity with a
specific emphasis on individuals involved in the
criminal justice system. The current need and demand
for treatment far exceeds the current treatment
capacity. Approximately $800,000 will be used to
increase outpatient treatment capacity by adding 18
outpatient counselors within grantee agencies and
approx. 1,200.00 would increase residential treatment
capacity by fully funding 54 treatment beds.
Representative Davies noted that there is a waitlist for
treatment beds. There are only 10 treatment beds in
Fairbanks and 14 in Anchorage. He stressed that the
treatment capacity does not exist to support increased
enforcement.
Representative Harris acknowledged the need. He observed
that there is $20 million dollars in the budget for drug and
alcohol abuse grants. He stressed that it is a major
increment and could not be funded.
Co-Chair Mulder questioned if the beds were income eligible.
Ms. Clark clarified that there is a sliding fee scale and a
match requirement.
Representative Davies maintained that the status quo is not
good enough and reiterated that there is a substantial
waitlist.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Mulder
Co-Chair Williams was absent from the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment HSS-25:
Representative Harris OBJECTED.
Add:
Alcohol and Drug Abuse Services
Alcohol/Drug Abuse Grants
$1,010.5 GE
Short Summary:
The demand for alcohol treatment for youth currently
exceeds the availability. Youth residential treatment
is available only in Anchorage, Fairbanks and Sitka and
all providers have wait lists. Note there are no
facilities in rural Alaska. In 1999, more than 2,200
citations were issued for minors under the age of 18
consuming alcohol according to court records. We need
to help these youth before the problems are compounded.
This funding will be utilized to provide grant funding
for approximately 22 youth outpatient and continuing
care counselors statewide. This is a much needed
expansion and can be viewed as a preventive health care
move.
Representative Croft emphasized that the same arguments
apply as to the previous amendment, but that there is a
greater chance of influencing juveniles.
Representative Harris acknowledged that greater intervention
for juveniles would be beneficial, but emphasized that the
request could not be funded.
In response to a question by Vice-Chair Bunde, Ms. Clark
clarified that there is not a juvenile ASAP program. She
observed that treatment does work. There is a waiting list
of 80 for adult out patient treatment in Anchorage. She
thought that this number had grown. She stressed the affect
of juvenile alcoholism on families. Treatment works for
about half of the publicly funded cases. Persons referred
through ASAP have higher success rates (up to 3/4).
Representative Croft spoke in support of the amendment. He
pointed out that the best way to be involved in treatment is
to be in treatment.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment HSS-26:
Representative Harris OBJECTED.
Add:
CAASA Grants
Alcohol and Drug Abuse Services
$426.0 General fund
Short Summary:
The existing ASAP program does not serve minors. There
is no mechanism to currently screen or assess juveniles
for alcohol dependency. Early intervention of juveniles
with alcohol problems would likely reduce future
demands on the criminal justice system. In Alaska
between 1991 and 1998 there was a 60% increase in
alcohol-related injuries for youth. The money will be
used to provide screening, assessments and monitoring
of court ordered sanctions of minors cited for
consuming or possessing alcohol in 6 to 8 communities
through grants with community based agencies. Funding
is also requested for a PFT juvenile Probation Officer
to administer the program.
TAPE HFC 01 - 52, Side B
Representative Croft spoke in support of the amendment.
Representative Harris noted that the request was heavily
debated in the Subcommittee, but was not included in the
scarce resources.
Ms. Clark noted that a study found that 3/4 of DWI's and 50%
of drug or alcohol cases referred did not commit a second
time. Co-Chair Mulder concluded that ASAP is an effective
treatment program.
Representative Croft observed that screening is not funded
because there is no treatment and that treatment is not
funded because there is no screening.
Ms. Clark pointed out that there is no consequence for
juveniles.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Davies MOVED to ADOPT Amendment HSS-27:
Representative Harris OBJECTED.
Add:
Rural Services Grants
Alcohol and Drug Abuse Services
$750.0 GENERAL FUND
Program will provide assessment and referral services
at the local level for individuals needing care
provided through hub communities. They provide
continued support and aftercare to individuals who
return to the community after treatment. The existing
program has been successful since it trains local
people who can combine their cultural knowledge with
alcohol and mental health counseling and intervention
skills. Fourteen sub-regional or regional organizations
currently participate in the rural Human Services
Program through grants from the Division of Alcohol and
Drug Abuse. This proposal will fund the salaries,
training and supervision, clinical space and support
for ten additional workers. Today there are 98 human
service workers in 75 communities. The expansion would
increase the workers from 98 to 108 and expand the
program from 75 to 85 communities.
Representative Davies spoke in support of the amendment. He
emphasized that the program is successful because it
concentrates on training local people who can combine their
local cultural knowledge with alcohol and mental health
counseling and intervention skills. He pointed out that a
high percentage of those incarcerated in Alaska are Alaskan
Native and a high percentage of those (approximately 90
percent) are there for alcohol abuse.
Representative Harris observed that this grant program is
funded at $2.6 million dollars. He acknowledged that the
program works, but the increment was denied.
Representative Davies stated that a modest increase in
alcohol sales tax would fund many of the requests denied by
the Committee.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft WITHDREW Amendment HSS-28 (as it was
included in a previous amendment):
Add:
API
Institutions and Administration
609.9 GF/MH
Representative Croft MOVED to ADOPT Amendment HSS-29:
Representative Harris OBJECTED.
Medicaid Assistance
Delete intent language: "No money appropriated in this
appropriation may be expended for an abortion that is
not a mandatory service required under AS
47.07.030(a)."
Representative Croft spoke in support of the amendment. He
spoke to the legal issue. He observed that 12 states have
reached similar conclusions to the Supreme Court's
interpretation of the Constitution on the conditioning of
money, which would wave a person's constitutional right.
States can chose to not appropriate funds but they cannot
condition the funds. He referred to the state of
California's Supreme Court decision. All states with an
explicit right to privacy have come to the same conclusion.
He referred to the Massachusetts' Supreme Court's ruling.
Co-Chair Mulder agreed that it is a constitutional issue,
but emphasized that the legislature is the appropriating
arm. He pointed out that the alternative is to not provide
any funding.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Mulder
Co-Chair Williams was absent from the meeting.
The MOTION FAILED (3-7).
Representative Davies MOVED to ADOPT Amendment HSS-30:
Medicaid Assistance
Delete intent language: "No money appropriated in this
appropriation may be expended for an abortion that is
not a mandatory service required under AS
47.07.030(a)."
Administrative Services
Delete intent language: "No money appropriated in this
appropriation may be expended for an abortion that is
not a mandatory service required under AS
47.07.030(a)."
Representative Davies spoke in support of the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Mulder
Co-Chair Williams was absent from the meeting.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment HSS-31:
ADD
Front Line Social Workers
Front Line Social Workers
General Funds $228.00
Explanation
Fund pilot project to evaluate effectiveness of
"intensive family preservation" services in Alaska.
As of Jan. 1, DFYS had 1,929 children in its custody
living in foster homes, relative homes, and group homes
and assorted other placements, an increase of nearly 40
percent from five years ago.
This pilot project applies "intensive family
preservation services" to families in crisis in
attempts to change abusive or neglectful behavior
likely to result in child placement. Consequently,
children will be able to remain safely in their homes
and communities, instead of being placed in costly
foster care and/or state institutions.
The pilot project hires a team of 2.5 therapists and a
.5 supervisor that sees 50 families for one year
($4,565 per family). Families in crisis are targeted
and a well-prepared caseworker is sent into their home
15 to 20 hours a week. Effectiveness requires keeping
caseloads very low, no more than two or three families
at once and providing families with someone to call 24
hours a day. Crisis family service is ended after four
to six weeks, once the immediate situation is calmed
and the family is linked to longer-term help.
Based on Washington State's Homebuilder's project and
now adopted in over 30 states, "family preservations
services" have demonstrated prevention of inappropriate
and costly placements of children into state custody
and care. This has reduced costs to the state's
juvenile justice, child welfare and mental health
systems.
AUTHUR MASON, STAFF, REPRESENTATIVE CISSNA spoke in support
of the amendment. He noted that the amendment recognizes the
importance of the family structure. Many of the nearly 2,000
Alaskan children in out-of-home placement are from homes
that are unsafe. There are many other children being removed
from their families because of a lack of services. Family
preservation services are a cost effective alternative to
institutional foster care. In the state of Washington, costs
for family treatment were shown to be half the cost of
caring for a child in the foster care system.
He noted that the amendment would establish a competitive
grant fund for 2.5 therapists and 1 half time supervisor.
Service costs for a family's 4 - 6 week intervention is
$4,565 dollars. He maintained that the state would save
money through the program.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
Representatives Bunde and Hudson were absent from the vote.
The MOTION FAILED (3-6).
Representative Mulder MOVED to ADOPT Amendment UA-1:
ADD
Agency University of Alaska
BRU University of Alaska
Component Budget Reductions/Additions - System
Fund Source Amount
ACPE Div $2,000.0
Purpose: Increase University funding with portion of
the ACPE dividend.
Co-Chair Mulder noted that the amendment would add $2
million dollars in additional funds to the University of
Alaska from the Alaska Postsecondary Education Commission's
dividend.
There being NO OBJECTION, it was so ordered.
Representative Davies MOVED to ADOPT Amendment UA-2:
Add:
Statewide Programs and Services
Budget Reductions/Additions - Statewide
$7,490.8 GF
Representative Davies spoke in support of the amendment. He
noted that the amendment would fully fund the university's
request. He noted that President Hamilton concluded that the
University of Alaska "hit the wall" in FY96. He stressed
that the state needs to make an investment in training
workers and developing new jobs through the university. The
university leads the charge on research and development. He
emphasized the value placed on the university by the state's
founders.
Representative Whitaker spoke in support. Representative
Harris expressed support but emphasized that other funding
mechanisms would be sought.
Co-Chair Mulder acknowledged the plea for the University of
Alaska, but emphasized the budget restraints. He noted that
the additional funding for the University is not universally
supported. He stated that he would continue to look for
additional funding.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
The MOTION FAILED (3-8).
RECESS
The Committee recessed at 7:55 P.M.
RECONVENED
The Committee reconvened at 8:20 P.M.
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
Representative Foster MOVED to ADOPT Amendment DOT-#3:
Replace intent language for the Marine Highway System
to read:
The Department is projecting the depletion of the fund
prior to the end of the FY02 fiscal year and
anticipates that there may be a need to reduce services
if that amount is not funded. It is the intent of the
Legislature that the Department should take measures to
reduce operating costs and increase revenues. If those
measures do not allow for the projected 293 to 298
weeks of service, the Department should request a
supplemental appropriation.
Explanation:
The expected depletion of the fund is not due to
higher fuel prices in fiscal year 2002 adopted. No
Objection.
There being NO OBJECTION, it was so ordered.
LEGISLATURE
Representative Moses MOVED to ADOPT the amended Amendment
LEG-1.
Delete:
Legislature
Legislative Council $45.0
Add:
Department of Fish and Game
Administration and Support
Boards of Fisheries and Game
Advisory Committees $45.0 general fund
Representative Harris OBJECTED.
Representative Moses noted that the request would restore
funding to the boards and allow additional meeting days and
travel.
TAPE HFC 01 - 53, Side A
A roll call vote was taken on the motion.
IN FAVOR: Moses, Croft, Davies
OPPOSED: Harris, Hudson, Lancaster, Whitaker, Bunde,
Foster, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment LEG-2. Co-
Chair Mulder OBJECTED.
Legislative Operating Budget
Delete: 1,500.0 GF
Legislative Council
Delete: 500.0 CF
Representative Croft observed that other departments have
been asked to find efficiencies. The Legislature's carry-
forward is $3 million dollars for FY 02. The amendment would
reduce the carry-forward by $2 million dollars.
Representative Croft MOVED to amend by adding $2 million
dollars to the University of Alaska's budget. There being NO
OBJECTION, it was so ordered.
Representative Croft commented that whatever happens to the
rest of the departments should also occur in the
Legislature's budget.
Co-Chair Mulder spoke against the amendment. He observed
that there has been an attempt to take legislators and
legislative committees to rural Alaska. He pointed out that
this is expensive, but emphasized the need to unite the
state.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Croft, Davies
OPPOSED: Harris, Hudson, Lancaster, Whitaker, Bunde,
Foster, Williams, Mulder
The MOTION FAILED (3-8).
OFFICE OF THE GOVERNOR
Representative Davies MOVED to ADOPT Amendment GOV-1. Co-
Chair Mulder OBJECTED.
Add:
Office of the Governor
Governmental Coordination
$4,500.0 Federal funds
Representative Davies explained that Congress recently
appropriated funds for Coastal Impact Assistance (CARA) to
oil producing states, including Alaska. Alaska's share is
$12,850.0 of which 35% or $4,500.0 is directed to county-
equivalent coastal political subdivisions (i.e., boroughs
and Coastal Resource Service Areas) based on a formula
contained in the bill.
Co-Chair Mulder clarified that he did not oppose CARA, but
questioned what exactly the funds are appropriating. He
thought it would be appropriate to come back to the
Legislative Budget and Audit Committee for future
authorization. The funds do not have to be appropriated in
the next fiscal year. He felt that the process was
cumbersome.
PATRICK GALVIN, DIRECTOR, GOVERNMENTAL CORDINATION, Office
of the Governor provided information on the request. He
stated that the $4.5 million dollar request constitutes the
local portion of the CARA funds for FY02. The state
anticipates a total appropriation of $12.8 million dollars.
Federal statute requires that 35 percent go to local
boroughs and Coastal Resource Service Areas. The local
portion would be appropriated to the state as one pass
through grant. The State has no say on what those funds are
spent on as long as they meet federal requirements. The
state has begun to solicit plans from local entities. The
state would place the local plans and passed them on to the
National Oceanic and Atmospheric Administration (NOAA) for
approval. He added that the money would be distributed
according to a federal formula. It is anticipated that some
boroughs will receive a sizeable appropriation based on
population.
Representative Hudson concluded that the state's function is
receivership for distribution with no determination on how
funds are used.
Mr. Galvin explained that the federal formula establishes
the appropriation and provides a list of how the money can
be spent. As long as the projects fall within the list of
allowable projects there is no direction from the state.
The National Oceanic and Atmospheric Administration's
responsibility is to approve the state plan as submitted.
Co-Chair Mulder expressed his hope that NOAA's review would
not be a rubber stamp.
Representative Davies questioned the decision to withhold
authorization. Co-Chair Mulder suggested that the projects
could come before the Legislative Budget and Audit Committee
when the plan is developed.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Davies
OPPOSED: Croft, Harris, Hudson, Lancaster, Whitaker, Bunde,
Foster, Williams, Mulder
The MOTION FAILED (2-8).
Representative Croft WITHDREW Amendment GOV-2:
Add:
Office of the Governor
Governmental Coordination
$66.6 General funds
LANGUAGE SECTION
Co-Chair Williams MOVED to ADOPT Amendment LANG-1:
DIVE FISHERY MANAGEMENT ASSESSMENT. The dive fishery
management assessment collected under AS 43.76.150 -
43.76.210 in fiscal year 2001 and deposited into the
state treasury under AS 43.76.190(d) is appropriated
from the state treasury to the Department of Fish and
Game for disbursement under AS 43.76.200 in fiscal year
2002 of the amount collected in each administrative
area to the qualified regional dive fishery development
association operating within the administrative area in
which the assessment was collected. For purposes of the
state accounting system, the amount appropriated in
this section may be treated as an appropriation made
under the fund source code for receipt-supported
services.
Vice-Chair Bunde clarified that the Department of Fish and
Game doesn't object to the amendment. Co-Chair Williams
noted that the Southeast divers also support the
legislation. There being NO OBJECTION, it was so ordered.
Representative Davies MOVED to ADOPT Amendment LANG-2:
Amend Section 10:
* Sec. 10. FEDERAL AND OTHER PROGRAM RECEIPTS. (a)
Federal receipts, designated program receipts as
defined in AS 37.05. 146(b)(3), program receipts
defined in AS 44.21.045(b)~ receipts of commercial
fisheries test fishing operations under AS
37.05.146(b)(4)(U), corporate receipts of the Alaska
Aerospace Development Corporation, and program receipts
of the Alaska Science and Technology Foundation that
exceed the amounts appropriated by this Act are
appropriated conditioned on compliance with the program
review provisions of AS 37.07.080(h).
(b) if federal or other program receipts as
defined in AS 37.05.146 and in AS 44.21.045(b) exceed
the estimates appropriated by this Act, the
appropriations from state funds for the affected
program may be reduced by the excess if the reductions
are consistent with applicable federal statutes.
(c) If federal or other program receipts as
defined in AS 37.05.146 and in AS 44.21.045(b) fall
short of the estimates appropriated by this Act, the
affected appropriation is reduced by the amount of the
shortfall in receipts.
Explanation:
This amendment would include Information Services Funds
in the types of funds the Legislative Budget and Audit
Committee (LB&A) would be able to review.
The Department of Administration is currently
evaluating responses to the Request for Proposals for
telecommunications services. These are very complex
proposals and it now appears that the evaluation
process won't be complete until at least June. As a
result, the department is unable to predict what impact
an award might have on the Information Technology Group
(1TG) budget.
One possibility is that payment for some
telecommunications costs which departments currently
pay vendors for directly, such as cellular phone
charges, might be sent through 1TG so the state would
have one consolidated payment to a vendor.
While such a movement of funds between state agencies
could normally be dealt over the short term as
unbudgeted inter-agency receipts, that is not the case
with funds transferred to 1TG. AS 44.21.045(b) makes it
clear that this kind of movement of funds would be
subject to review by LB&A.
The department does not know if it would actually need
to present a proposal to LB&A and would likely not do
so unless it is confronted with a situation where cash-
flow constraints become and issue. However, it would be
prudent to leave this avenue open should it become.
Mr. Spencer explained that the amendment would add
Information Services Fund funds to the list of funds that
can go before the Legislative Budget and Audit Committee for
a Revised Program - Legislative (RPL) during the interim. He
clarified that there are proposals for telecommunication
Request for Proposals (RFP) to partnership with private
industry. If intent to award were issued discussions would
begin with vendors to provide services. Funds in individual
budgets that do not go through the Department of
Administration, Information Technology Group (ITG) (cell
phones, pagers, or long distance charges not on the state
network) may want to be consolidated in order for the state
to make one payment. The department needs authorization to
accept these funds during the interim.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION thought
that the authority to approach the Legislative Budget and
Audit Committee existed through their enabling statues in
Title 44. He felt that the amendment would be duplicative.
Mr. Spencer stressed that the amendment would clarify their
ability to request authorization from the Legislative Budget
and Audit Committee.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment LANG-3:
Add a new section to read:
Sec._____. FEDERAL MEDICAL ASSISTANCE PERCENTAGE. If
the estimated federal receipts for medical assistance
appropriated in sec. 1 of this Act are below 59.8
percent for Medicaid services during the fiscal year
ending June 30, 2002, the amount of the shortfall in
federal receipts is appropriated from the general fund
to the Department of Health and Social Services for
Medicaid services.
Explanation:
This section provides general funds to replace lost
federal funds if the federal participation rate for
Medicaid (FMAP) service falls below 59.8% during
FY2002. While the current rate is 60.16% for federal
FY2001, the state FY2002 budget was based on 59.8%.
Under current federal statutes Alaska's FMAP rate will
drop to 57.38%, a reduction of 2.42% or a loss of
approximately $10 million GF from what is currently
budgeted. This drop will occur if Congress does not
extend the one-year negotiated rate to future years and
will go into effect October 1, 2001.
Representative Croft explained that the amendment provides
insurance if the state fails to receive an extension on its
Medicaid percentages from Congress.
Co-Chair Mulder observed that the amendment is an open-ended
appropriation. He felt that the congressional action would
occur.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
Representative Croft MOVED to ADOPT Amendment LANG-4:
Co-Chair Mulder OBJECTED.
Add new section:
"Sec. -. LONGEVITY BONUS GRANT PROGRAM. If the amount
appropriated in section 1 of this Act for the longevity
bonus grant program (AS 47.45) is not sufficient to
fully fund that program for the fiscal year ending June
30, 2002, the amount of the shortfall is appropriated
from the general fund to the Department of
Administration."
Representative Croft spoke in support of Amendment Lang-4.
Co-Chair Mulder pointed out that the program has always been
funded and indicated that it would receive a supplemental
appropriation if needed.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Bunde, Foster, Harris, Hudson, Lancaster,
Whitaker, Williams, Mulder
The MOTION FAILED (3-8).
TECHNICAL AMENDMENTS
Co-Chair Mulder MOVED to ADOPT Amendment TECH-1:
Delete page 9 lines 7 - 17;
Page 9 line 20 - 10 line 14; and
Page 10 line 17 - page 11 line 5.
Purpose: This eliminates the Capital appropriations
from HB 104, which represent last year's capital
appropriation with the exception of the appropriation
for the Urban Transition Housing Facility (Anchor Arms
Project), which is a FY 02 request.
Information on technical change by the Legislative
Finance Division:
Intent language on page 3, lines 3 through 8 of CS HB
104(FIN) should be identical to the intent language on
page 7, lines 9 through 13 of CS FIB 103(FIN). The
language is attached to the Inmate Health Care
allocation within the Administration and Operations
appropriation in the Department of Corrections. The
language in FIB 103 was revised to refer to the
legislature rather than to the House Finance
subcommittee. The delivered version of NB 104 was run
before the revisions were made.
Versions of FIB 104 will print correctly in the future,
but I believe the committee should be informed of the
correction. Whether to address the revision through a
formal amendment or inform the committee of a technical
correction is your decision.
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER explained
that capital and operational expenses are both contained in
the mental health bill [HB104]. The amendment strips the
previous years capital projects and inserts one current
capital request as a placeholder, which protects the title
of the bill.
Representative Davies questioned why all the requests were
not included. Mr. Dewitt explained that last year's capital
projects are currently included in HB 104.
Ms. McConnell clarified that the projects submitted in HB
104 are the current year's [FY02] mental health request.
Co-Chair Mulder noted that the intent is to combine the
capital and mental health projects into one bill in an
effort to work with the Alaska Mental Health Trust
Authority.
There being NO OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to allow the Legislative Finance
Division to make technical corrections and conforming
changes to HB 103 an HB 104. There being NO OBJECTION, it
was so ordered.
DEPARTMENT OF ADMINISTRATION
Representative Lancaster MOVED to ADOPT Amendment ADIM-14:
ADD
Department of Administration
Senior Services
Protection, Community Services and Administration.
$200.0 thousand dollars
Representative Lancaster explained that the amendment would
adjust the general fund support for general relief grants.
This would allow a small increase to about 150 clients. Co-
Chair Mulder explained that a federal grant was received
that could be used for Senior Citizens. The additional
general funds with the federal funds will address the
request contained in Amendment HSS-6.
There being NO OBJECTION, it was so ordered.
Vice-Chair Bunde MOVED to ADOPT the proposed committee
substitutes for HB 103 (22-LS0410\L, 3/3/01) and HB 104 (22-
LS0411\C, 3/1/01).
There being NO OBJECTION, it was so ordered.
DEPARTMENT OF PUBLIC SAFETY
Representative Croft MOVED to ADOPT Amendment PS-13:
ADD
Department of Public Safety
Village Public Safety Officers
Contracts $576.0
Representative Croft spoke in support. He noted that the
proposal would fund 10 new village public safety officers.
Vice-Chair Bunde argued against the amendment. He noted that
a federal grant will provide additional officers and
recommended that the state continue to pursue federal
support.
Representative Davies spoke in support. He pointed out that
the federal funds only apply to dry villages. The need is
more substantial, in some instances, in the wet villages.
Many villages will not be covered.
Vice-Chair Bunde argued that the intent is to encourage dry
villages. Representative Davies responded by pointing out
that it is still legal to buy alcohol in the state of Alaska
and noted that state troopers are not taken away from
Anchorage or Fairbanks because they sell alcohol.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Foster, Moses
OPPOSED: Bunde, Harris, Hudson, Lancaster, Whitaker,
Williams, Mulder
The MOTION FAILED (4-7).
Co-Chair Williams MOVED to report CSHB 103 (FIN) out of
Committee. There being NO OBJECTION, it was so ordered.
CS HB 103 (FIN) was reported out of Committee with a "do
pass" recommendation.
Co-Chair Williams MOVED to report CSHB 104 (FIN) out of
Committee. There being NO OBJECTION, it was so ordered.
CS HB 104 (FIN) was reported out of Committee with a "do
pass" recommendation.
ADJOURNMENT
The meeting was adjourned at 9:35 p.m.
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