01/31/2001 09:04 AM Senate FIN

                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                         January 31, 2001                                                                                     
                              9:04 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-01 # 5, SIDE A                                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete  Kelly convened the meeting at approximately  9:04 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Dave Donley, Co-Chair                                                                                                   
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Loren Leman                                                                                                             
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
Senator Alan Austerman                                                                                                          
Senator Olson                                                                                                                   
Senator Hoffman                                                                                                                 
Senator Ward                                                                                                                    
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SJR  6-EDUCATION BLOCK GRANTS                                                                                                   
                                                                                                                                
The  Committee   amended  the  resolution   and  reported   it  from                                                            
Committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
     SENATE JOINT RESOLUTION NO. 6                                                                                              
     Urging the Congress of the United States to provide federal                                                                
     education funds as a block grant to the state.                                                                             
                                                                                                                                
                                                                                                                                
Co-Chair Donley  stated that this resolution is virtually  identical                                                            
to one passed by the twenty-first  legislature. He explained that it                                                            
calls on the U.S.  Congress to initiate a system of  block grants of                                                            
federal  education funding  for the  various states.  He noted  that                                                            
this  proposal is  similar  to the  "very successful"  program  with                                                            
welfare reform.  He emphasized that  the federal block grants  would                                                            
save administrative  costs on the  federal, state and local  levels.                                                            
Those savings,  he stressed, could  be "put into the classrooms  for                                                            
the benefit of our children's  education rather than being burned up                                                            
in paperwork and bureaucracy,  which is very expensive." He detailed                                                            
the multitude  of federal  programs governing  education, each  with                                                            
extensive  reporting requirements.  All  of this,  he stated,  takes                                                            
staff  to   administer.  He  added   that  this  is  a  frustration                                                             
experienced  by both  the state  Department of  Education and  Early                                                            
Development and the local school districts.                                                                                     
                                                                                                                                
Co-Chair  Donley   shared  that  this  resolution   assists  in  the                                                            
legislature's  effort for  a smaller, smarter  state government  and                                                            
better efficiency  in delivering  educational  products.  He  opined                                                            
that this  resolution  follows the  "philosophy that  the state  and                                                            
local  school districts  can  do a  better  job of  determining  the                                                            
education for our children  and utilizing that money, than people in                                                            
Washington D.C."                                                                                                                
                                                                                                                                
Co-Chair Donley  pointed out that the U.S. House of  Representatives                                                            
passed a block  grant proposal two years prior, but  that it did not                                                            
pass the U.S.  Senate. He added that this issue was  also an element                                                            
of President  George W.  Bush's campaign  platform. Co-Chair  Donley                                                            
predicted that the president  would therefore defer more judgment to                                                            
the states on the utilization of education dollars.                                                                             
                                                                                                                                
Co-Chair Donley  stressed the importance of passing  this resolution                                                            
again in the current year,  due to the newly organized Congress, new                                                            
president and new Alaska State Legislature, as well.                                                                            
                                                                                                                                
Amendment #1:   This conceptual amendment changes  "President-elect"                                                            
to "President"  and "Secretary of Education-designee"  to "Secretary                                                            
of Education"  to reflect the swearing-in of George  W. Bush as U.S.                                                            
President  and  confirmation  of  Rod Paige  as  U.S.  Secretary  of                                                            
Education. These are technical changes.                                                                                         
                                                                                                                                
Co-Chair  Donley moved  for adoption,  pointing out  that since  the                                                            
resolution  was drafted,  these  officials  have been  sworn in  and                                                            
confirmed.                                                                                                                      
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Senator Green asked if  this resolution should be sent to additional                                                            
parties  other   than  those  included   in  the  language   of  the                                                            
resolution.                                                                                                                     
                                                                                                                                
Co-Chair   Donley   suggested   the  National   Council   of   State                                                            
Legislatures and  others. He stated the he would send  a copy of the                                                            
resolution to these organizations informally.                                                                                   
                                                                                                                                
Co-Chair  Donley offered a  motion to report  from Committee  SJR 6,                                                            
22-LS0360\C,  as  amended  with a  Senate  Finance  Committee,  zero                                                            
fiscal note.                                                                                                                    
                                                                                                                                
Without objection, the bill MOVED from Committee.                                                                               
                                                                                                                                
Co-Chair  Donley spoke  to a  memo he  sent to  budget subcommittee                                                             
chairs  regarding  the  scheduling  of  subcommittee   meetings.  He                                                            
emphasized  the importance of addressing  the missions and  measures                                                            
of the departments and developing targets for state programs.                                                                   
                                                                                                                                
Senator Green  commented that she  was encouraged with the  prospect                                                            
that  this resolution  could,  in  fact,  affect change.  She  noted                                                            
education  and  health  and  social  services  as  areas  where  the                                                            
legislature could have "a voice".                                                                                               
                                                                                                                                
Co-Chair Kelly agreed.                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Kelly adjourned the meeting at 9:13 AM.