Legislature(2013 - 2014)CAPITOL 106

03/26/2013 01:00 PM House MILITARY & VETERANS' AFFAIRS


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01:22:53 PM Start
01:23:32 PM HB180
02:03:48 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 1:15 p.m. Today --
-- Location Change from Room 120 --
*+ HB 180 MILITARY YOUTH ACADEMY TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
   HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS                                                                  
                         March 26, 2013                                                                                         
                           1:22 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Pete Higgins                                                                                                     
Representative Shelley Hughes                                                                                                   
Representative Lora Reinbold                                                                                                    
Representative Dan Saddler                                                                                                      
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 180                                                                                                              
"An Act relating to the Alaska Challenge Youth Academy; and                                                                     
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 180 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 180                                                                                                                  
SHORT TITLE: MILITARY YOUTH ACADEMY                                                                                             
SPONSOR(s): REPRESENTATIVE(s) T.WILSON                                                                                          
                                                                                                                                
03/20/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/20/13       (H)       MLV                                                                                                    
03/26/13       (H)       MLV AT 1:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE TAMMIE WILSON                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 180.                                                                          
                                                                                                                                
MCHUGH PIERRE, Deputy Commissioner                                                                                              
Office of the Commissioner/Adjutant General                                                                                     
Department of Military & Veterans' Affairs (DMVA)                                                                               
Joint Base Elmendorf-Richardson, Alaska                                                                                         
POSITION STATEMENT:  Testified in  support of HB 180 and answered                                                             
questions.                                                                                                                      
                                                                                                                                
MAJOR GENERAL THOMAS KATKUS, Commissioner/Adjutant General                                                                      
Department of Military and Veterans' Affairs (DMVA)                                                                             
Joint Base Elmendorf-Richardson, Alaska                                                                                         
POSITION STATEMENT: Testified  in support of HB  180 and answered                                                             
questions.                                                                                                                      
                                                                                                                                
CLYDE T. (TOM) BURTON, Division Director                                                                                        
Alaska Military Youth Academy                                                                                                   
Department of Military & Veterans' Affairs (DMVA)                                                                               
Joint Base Elmendorf-Richardson, Alaska                                                                                         
POSITION STATEMENT:  Testified in  support of HB 180 and answered                                                           
questions.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:22:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NEAL  FOSTER  called the  House  Special  Committee  on                                                             
Military  and Veterans'  Affairs meeting  to order  at 1:22  p.m.                                                               
Representatives  LeDoux,  Gruenberg, Saddler,  Reinbold,  Hughes,                                                               
and Foster  were present  at the call  to order.   Representative                                                               
Higgins arrived as the meeting was in progress.                                                                                 
                                                                                                                                
                 HB 180-MILITARY YOUTH ACADEMY                                                                              
                                                                                                                                
1:23:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced  that the only order  of business would                                                               
be HOUSE BILL  NO. 180, "An Act relating to  the Alaska Challenge                                                               
Youth Academy; and providing for an effective date."                                                                            
                                                                                                                                
1:23:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TAMMIE   WILSON,   Alaska   State   Legislature,                                                               
paraphrased  from the  sponsor  statement,  which read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The   Alaska   Military    Youth   Academy   has   seen                                                                    
     unparalleled  success   in  serving   Alaska's  at-risk                                                                    
     youth.    A  military-style 24-hour  school,  the  AMYA                                                                    
     serves only  high school drop-outs between  the ages of                                                                    
     16 and 19.                                                                                                                 
                                                                                                                                
     In  almost   20  years  of  operation,   the  AMYA  has                                                                    
     graduated  more than  4,000 cadets.   Like  any program                                                                    
     the AMYA started out small  and has grown to graduating                                                                    
     about 300 cadets each year.                                                                                                
                                                                                                                                
     The funding  formula that currently serves  the AMYA is                                                                    
     outdated  and must  be  changed.   It  was designed  to                                                                    
     protect  a  fledgling  program  from  the  budget  cuts                                                                    
     associated  with $9-barrel  oil prices.   The  AMYA has                                                                    
     weathered the  storm and proven itself  as a successful                                                                    
     program that can stand on its own merits.                                                                                  
                                                                                                                                
     With this proven  track record, it is time  to move the                                                                    
     Academy to  a direct appropriation based  on the number                                                                    
     of cadets that graduate.                                                                                                   
                                                                                                                                
1:25:40 PM                                                                                                                    
                                                                                                                                
MCHUGH    PIERRE,   Deputy    Commissioner,    Office   of    the                                                               
Commissioner/Adjutant   General,   Department   of   Military   &                                                               
Veterans' Affairs (DMVA), expressed DMVA's  support of HB 180 and                                                               
stated that  this step is  necessary to  take the program  to the                                                               
next level of excellence.                                                                                                       
                                                                                                                                
1:26:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER opened public testimony.                                                                                        
                                                                                                                                
1:26:56 PM                                                                                                                    
                                                                                                                                
MAJOR   GENERAL  THOMAS   KATKUS,  Commissioner/Adjutant,   DMVA,                                                               
informed  the   committee  the  Alaska  Military   Youth  Academy                                                               
("Academy")  reaches  about  300  youth   per  year  out  of  the                                                               
approximately  3,000 at-risk  youth who  drop out  of the  school                                                               
systems.    This   is  a  very  effective   program  with  proven                                                               
statistics showing a 20-year record of  success.  He said at this                                                               
point the Academy is seeking to  close the gap between the number                                                               
of students  who enroll  and who graduate.   To  accomplish this,                                                               
the  funding formula  should be  driven  by results-based  direct                                                               
appropriation with  the objective to graduate  the maximum number                                                               
of  students possible.   Major  General Katkus  said the  current                                                               
formula is misguided.                                                                                                           
                                                                                                                                
1:28:49 PM                                                                                                                    
                                                                                                                                
CLYDE T.  (TOM) BURTON, Division Director,  Alaska Military Youth                                                               
Academy, DMVA, explained that the focus  of the Academy is on the                                                               
quality  of its  service to  students, parents,  communities, and                                                               
the state.   He said the Academy provides direct  support for key                                                               
programs such as  the Choose Respect campaign,  and students come                                                               
for many reasons, only one of  which is academic.  Most important                                                               
is to provide students with  an opportunity to change their lives                                                               
and proceed to  a successful future.  The mission  of the Academy                                                               
is to improve the situation of the youth in Alaska.                                                                             
                                                                                                                                
1:29:50 PM                                                                                                                    
                                                                                                                                
[CO-CHAIR FOSTER passed the gavel to CO-CHAIR LEDOUX.]                                                                          
                                                                                                                                
REPRESENTATIVE HUGHES  stated her support  for the program.   She                                                               
asked whether the legislation will  allow the Academy to grow and                                                               
reach more than 10 percent of at-risk students.                                                                                 
                                                                                                                                
MR.   BURTON  said   the  Academy   has  the   ability  to   grow                                                               
incrementally;  ultimately, structural  limits  will be  reached,                                                               
but at this  time, the camp is "sized correctly."   At 10 percent                                                               
of Alaska's drop-out  population, the Academy has had  more of an                                                               
impact than has any other state.   Although the exact estimate is                                                               
unknown, he  opined the Academy  can raise its effective  rate to                                                               
15 percent or 20 percent.                                                                                                       
                                                                                                                                
REPRESENTATIVE  HUGHES asked  whether  students  are ever  turned                                                               
away.                                                                                                                           
                                                                                                                                
MR. BURTON said  the Academy does not turn anyone  away, which is                                                               
different from  other programs which  "screen for success."   The                                                               
Academy's  philosophy is  to  provide all  that  is possible  for                                                               
students in eight  core components that include  life skills, job                                                               
skills,  academics, and  physical fitness,  in order  to build  a                                                               
sound body and mind.                                                                                                            
                                                                                                                                
MAJOR GENERAL  KATKUS added that  the National Guard  is involved                                                               
in this program because 20 years  ago the number of at-risk youth                                                               
and  drop-outs  was  seen  as  a security  risk  to  the  nation.                                                               
Therefore, the  U.S. Department of Defense  (USDOD) put resources                                                               
towards   addressing   that   problem.       Through   a   direct                                                               
appropriation,  communities  and   government  will  also  become                                                               
involved, and the program could  expand with more recruitment and                                                               
a different emphasis.   He advised that a new  system of funding,                                                               
in response  to DMVA's justification  for funds  and articulation                                                               
of goals and  objectives, is the correct way to  secure the right                                                               
amount  of support  and  funding,  instead of  by  a formula  "on                                                               
autopilot."                                                                                                                     
                                                                                                                                
1:34:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES asked whether  a direct appropriation would                                                               
result in benefits such as additional access to federal funding.                                                                
                                                                                                                                
MAJOR  GENERAL KATKUS  said  currently,  receiving federal  funds                                                               
offsets state  funds, thus  if federal  funds are  received state                                                               
monies have  to be  returned to the  Department of  Education and                                                               
Early  Development (EED).   This  happens  late in  the year  and                                                               
there  is no  incentive  to  seek additional  funding.   Under  a                                                               
direct  appropriation,  DMVA  can  seek  additional  funding  and                                                               
grants to grow the program without being penalized.                                                                             
                                                                                                                                
MR. BURTON  agreed.  For  example, an increase in  the graduation                                                               
rate led  to increased federal funds,  but the funds went  to EED                                                               
and were not a net gain to the Academy.                                                                                         
                                                                                                                                
1:36:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  for the  proportion of  federal to                                                               
state funds allotted to the Academy.                                                                                            
                                                                                                                                
MAJOR  GENERAL  KATKUS  said  Alaska  provides  approximately  70                                                               
percent  and the  federal  government  provides approximately  30                                                               
percent, which is "reversed" when compared to other states.                                                                     
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether  DMVA  is concerned  about                                                               
abandoning  a fixed,  reliable, formula  in the  face of  looming                                                               
state and federal budget challenges.                                                                                            
                                                                                                                                
MAJOR GENERAL  KATKUS opined all  funding sources  whether fixed,                                                               
formula, or  direct appropriation, are  not secure at  this time.                                                               
However,  the best  way to  face  funding challenges  is for  the                                                               
leadership of  the Academy to  articulate its needs.   In further                                                               
response to  Representative Saddler, he  said it is  possible the                                                               
Academy will  receive more  funding through  direct appropriation                                                               
because  it   supports  many  of  the   governor's  programs  and                                                               
additional  investments  in  the   program  will  result  in  big                                                               
payoffs.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SADDLER expressed his support for the program.                                                                   
                                                                                                                                
1:39:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  noted HB  180 changes  the name  of the                                                               
Academy to the  Alaska Military Youth Academy.  He  said there is                                                               
a technical issue  in that the bill will not  just affect funding                                                               
but will  involve the  establishment of the  Academy.   He opined                                                               
the "catch  line" should "be  amended to reflect what's  going on                                                               
in the bill."                                                                                                                   
                                                                                                                                
MAJOR GENERAL KATKUS deferred to the sponsor.                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  after   further  reflection  on  this                                                               
issue, asked  the committee to  disregard his  comments regarding                                                               
the "catch line" because the entire statute is being repealed.                                                                  
                                                                                                                                
1:42:16 PM                                                                                                                    
                                                                                                                                
[CO-CHAIR LEDOUX passed the gavel to CO-CHAIR FOSTER.]                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG  then  pointed  out  that  repealing  a                                                               
statute  in the  middle of  the  fiscal year  and establishing  a                                                               
different regime  - with  an effective  date of  January 1  - may                                                               
cause a problem for continued funding.                                                                                          
                                                                                                                                
MR. PIERRE  said he and  the sponsor worked carefully  to address                                                               
the funding  transition from one  year to the next.   Legislative                                                               
Legal Services,  Legislative Affairs  Agency, and  the Department                                                               
of Law  determined the  January 1  date was  appropriate, because                                                               
there was no rush to make the  change.  Instead, the goal was how                                                               
to best move the Academy  division forward, thus the Base Student                                                               
Allocation (BSA) formula funding will  continue in July, and this                                                               
fall  the new  budget process  will begin  with a  "general match                                                               
plan" and justification  for a direct appropriation  that will go                                                               
into effect July  1, 2014, Fiscal Year 2015 (FY  15).  In further                                                               
response  to Representative  Gruenberg,  he  explained that  DMVA                                                               
will receive funds in July 2013, for the next year.                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG asked about  the impact on the Academy's                                                               
ability to receive federal funds during the federal fiscal year.                                                                
                                                                                                                                
MR. PIERRE  assured the  committee there will  not be  a negative                                                               
impact due to  the timing, but the Academy will  be in a position                                                               
to receive federal funds if they become available.                                                                              
                                                                                                                                
1:46:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  that  according  to  documents                                                               
provided  in the  committee  packet, the  Academy  was formed  in                                                               
1994, but AS 14.30.740 was not  enacted until 2002.  He asked for                                                               
the statutory framework that was utilized between 1994 and 2002.                                                                
                                                                                                                                
MR. PIERRE said funding was  through direct appropriation.  There                                                               
was match  funding, but  the fledgling program  at that  time was                                                               
unable to produce satisfactory  results; however, the environment                                                               
and needs  of the Academy  have changed and  direct appropriation                                                               
is needed now.                                                                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked whether  there was  regulation or                                                               
statutory authority prior to 2002.                                                                                              
                                                                                                                                
REPRESENTATIVE T. WILSON acknowledged  the legislature was giving                                                               
money  to  the  Academy  without  authority,  which  led  to  its                                                               
placement in statute.  One  additional reason for this change, in                                                               
addition to the fact the Academy  is successful, is to ensure the                                                               
Academy has  the funds it  truly needs rather than  estimates for                                                               
each year.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG surmised the  Academy began in 1994 with                                                               
no authority,  the funding  program was put  in statute  in 2002,                                                               
and now the  Academy is established in  Section 2 of HB  180.  He                                                               
expressed  his strong  support of  the program  and suggested  it                                                               
should be established permanently in  law by an amendment to page                                                               
2, line [4],  that replaces the word "may" with  the word "shall"                                                               
in the bill.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T.  WILSON said  her  understanding  is that  the                                                               
Academy  has  already  been established.    Furthermore,  because                                                               
there  is a  companion bill,  she  is more  comfortable with  the                                                               
language as written.                                                                                                            
                                                                                                                                
1:50:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG    cautioned   that    without   other                                                               
legislation, a future administration could abolish the Academy.                                                                 
                                                                                                                                
REPRESENTATIVE  T.  WILSON  maintained  her  preference  for  the                                                               
language in the bill.                                                                                                           
                                                                                                                                
REPRESENTATIVE  SADDLER  asked for  the  reason  behind the  name                                                               
change.                                                                                                                         
                                                                                                                                
MR.  PIERRE responded  that the  sponsor and  leadership at  DMVA                                                               
sought  to establish  the name  throughout statute  and that  the                                                               
Academy is commonly known as the Alaska Military Youth Academy.                                                                 
                                                                                                                                
REPRESENTATIVE SADDLER has  heard the Academy referred  to as the                                                               
Youth Corps.                                                                                                                    
                                                                                                                                
MR. PIERRE  noted DMVA  seeks to avoid  confusion with  Job Corps                                                               
and Youth Academy or the Academy is distinct from that.                                                                         
                                                                                                                                
REPRESENTATIVE  HUGHES  inquired  as  to the  amount  of  funding                                                               
acquired by the Academy this year.                                                                                              
                                                                                                                                
MR.  PIERRE estimated  total  funding for  the  Academy was  $9.3                                                               
million.                                                                                                                        
                                                                                                                                
REPRESENTATIVE HUGHES pointed out that  if HB 180 passes, funding                                                               
for  the Academy  will be  reduced from  the EED  budget and  she                                                               
stressed that  should not be  construed as  a cut to  funding for                                                               
education.                                                                                                                      
                                                                                                                                
REPRESENTATIVE T. WILSON will ask EED to reflect that change.                                                                   
                                                                                                                                
MR. PIERRE clarified the amount is roughly $6 million.                                                                          
                                                                                                                                
1:55:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  stated  that she  has  heard  wonderful                                                               
testimony regarding the Academy.                                                                                                
                                                                                                                                
REPRESENTATIVE  HIGGINS  recalled  meeting with  Mr.  Pierre  and                                                               
appreciated his confidence in the program.    He has known youths                                                               
who have done well at the Academy.                                                                                              
                                                                                                                                
MR. PIERRE attributed  the Academy's success and that  of DMVA to                                                               
the leadership of General Katkus and the governor.                                                                              
                                                                                                                                
1:57:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  asked  how  many graduates  go  into  the                                                               
military or on to college.                                                                                                      
                                                                                                                                
MR.  BURTON  said  after  the   most  recent  graduation  of  144                                                               
students, 33 went into the  military.  The Academy reaches almost                                                               
100  percent  placement, which  means  graduates  return to  high                                                               
school,  go on  to college,  find a  full-time job,  or join  the                                                               
military.   Other successes are  in physical fitness  and respect                                                               
for family.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  T. WILSON  added  that students  return to  their                                                               
community with a support team to follow their progress.                                                                         
                                                                                                                                
2:01:08 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:01 p.m. to 2:02 p.m.                                                                       
                                                                                                                                
2:03:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER, after ascertaining no one else wished to                                                                       
testify, closed public testimony.                                                                                               
                                                                                                                                
2:03:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to report  HB 180 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 180 was reported  from the                                                               
House Special Committee on Military and Veterans' Affairs.                                                                      
2:03:48 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Military and Veterans' Affairs meeting was                                                                 
adjourned at 2:03 p.m.                                                                                                          

Document Name Date/Time Subjects
HB 180A.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB180 Sectional Analysis.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB180-DMVA-AMYA-03-22-13.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB180-EED-K12-3-21-13.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB 180-Amendment 1.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB 180 Sponsor Statement - for merge.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB 180 Support Letter 2.pdf HMLV 3/26/2013 1:00:00 PM
HB 180
HB 180 Support Letter.pdf HMLV 3/26/2013 1:00:00 PM
HB 180