Legislature(2003 - 2004)
04/24/2003 08:01 PM Senate 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
MINUTES
SENATE FINANCE COMMITTEE
April 24, 2003
8:01 PM
TAPES
SFC-03 # 63, Side A
SFC 03 # 63, Side B
SFC 03 # 64, Side A
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately 8:01 PM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Robin Taylor
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: KAREN REHFELD, Director, Division of Education
Support Services, Department of Education and Early Development
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
HB 75-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 76-APPROP:MENTAL HEALTH BUDGET
The Committee considered amendments. The bill was held in Committee
AT EASE 8:01 PM / 8:02 PM
CS FOR SS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76(FIN)
"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."
Amendments were offered to committee substitute's SCS CS SS HB 75,
23-GH1002\X and SCS CS SS HB 76, 23-GH1004\U, which were adopted as
working drafts at the previous hearing.
Statewide Amendments
Statewide #1: This amendment incorporates the Governor's requested
increases of for all covered employees' health benefits of $75 per
month for each covered employee into Section 1 of the committee
substitute. The amounts and funding sources for each department are
as follows.
Department of Administration
General funds $210,400
Federal funds 3,600
Other funds 306,700
Total Funds $520,700
Department of Community and Economic Development
General funds $50,500
Federal funds 10,200
Other funds 237,200
Total Funds $297,900
Department of Corrections
General funds $1,232,900
Federal funds 1,100
Other funds 9,500
Total Funds $1,243,500
Department of Education and Early Development
General funds $153,900
Federal funds 89,400
Other funds 46,800
Total Funds $290,100
Department of Environmental Conservation
General funds $101,100
Federal funds 102,400
Other funds 195,100
Total Funds $398,600
Office of the Governor
Total Funds $0
Department of Health and Social Services
General funds $1,570,700
Federal funds 653,000
Other funds 413,700
Total Funds $2,637,400
Department of Labor and Workforce Development
General funds $74,400
Federal funds 510,200
Other funds 229,000
Total Funds $813,600
Department of Law
General funds $117,900
Federal funds 3,800
Other funds 62,700
Total Funds $184,400
Department of Military and Veterans Affairs
General funds $41,600
Federal funds 116,800
Other funds 60,000
Total Funds $218,400
Department of Natural Resources
General funds $332,200
Federal funds 60,400
Other funds 269,300
Total Funds $661,900
Department of Public Safety
General funds $576,200
Federal funds 19,000
Other funds 59,100
Total Funds $654,300
Department of Revenue
General funds $73,600
Federal funds 172,200
Other funds 105,500
Total Funds $351,300
Department of Transportation and Public Facilities
General funds $488,600
Federal funds 10,100
Other funds 2,180,800
Total Funds $2,679,500
Alaska Court System
Total Funds $0
Legislature
Total Funds $0
Co-Chair Green moved for adoption, noting it inserts funding for
health benefits expenses into the Language section of the bill. She
reminded that the matter had been discussed in Committee
previously.
Without objection the amendment was ADOPTED.
Language Section
LANG #1: This amendment changes subsection (d) of Section 11.
ALASKA PERMANENT FUND CORPORATION., on page 51, line 31 and page 52
lines 1 and 2 to read as follows.
(d) The income earned during the fiscal year 2004 on
revenue from the sources set out in AS 37.13.145(d) is
appropriated to the principal of the Alaska permanent fund.
Accompanying explanatory language reads as follows.
The revenue the state receives under AS 37.13.010 does not
earn any interest. The Department of Natural Resources holds
money in a "liability fund" until it reaches $3,000,000, when
they transfer the money to the APFC [Alaska Permanent Fund
Corporation]. While the money is held in the liability fund it
DOES NOT earn interest, or any type of income, that is
included in the transfer to APFC.
Subsection (d) may have been intended at one time to deal with
the Beaufort Sea Lease escrow while money remained in limbo
until the lawsuit was decided. That suit was settled in June
2000. If the budget bill language did relate to the Beaufort
Sea Lease, the narrative is no longer needed.
AS 37.13.145(d) addresses the Amerada Hess case, which also
requires that money be held in escrow. AS 37.13.145(d) states
that income related to the case shall be annually appropriated
to the principal of the Permanent Fund, but such language has
been omitted from appropriation bills in recent years.
Co-Chair Green moved for adoption.
Senator Hoffman requested an explanation.
Co-Chair Green stated this amendment would rephrase the language in
Section 11(d) "to more accurately reflect the transfer of funds".
She recalled budget legislation of previous sessions included
"interest earned", although she pointed out "income earned" was
more appropriate.
Senator Hoffman asked the reference to AS 37.13.145(d).
Co-Chair Green read the paragraph into the record.
Senator Taylor understood those monies were appropriated in prior
years regardless of the absence of the language shown in this
amendment.
Co-Chair Green agreed.
There was no objection and the amendment was ADOPTED.
LANG #2: This amendment deletes subsections (c),(n),(o),(p),(q),
and (r), and inserts two new subsections to Section 32. STATE DEBT
AND OTHER OBLIGATIONS., on page 60 to read as follows.
Deleted subsections:
(c) The sum of $6,995,900 is appropriated from the
general fund to the Alaska debt retirement fund (AS
37.15.011).
(n) The sum of $300,000 is appropriated from Alaska
accelerated transportation projects fund bond proceeds to the
Alaska debt retirement fund (AS 37.15.011) for the fiscal year
ending June 30, 2004, for payment of debt service and trustee
fees on outstanding state guaranteed transportation revenue
anticipation bonds.
(o) The sum of $1,700,000 is appropriated from federal
receipts to the Alaska debt retirement fund (AS 37.15.011) for
the fiscal year ending June 30, 2004, for payment of debt
service and trustee fees on outstanding state guaranteed
transportation revenue anticipation bonds.
(p) The sum of $2,000,000 is appropriated from the Alaska
debt retirement fund (AS 37.15.011) to the state bond
committee for the fiscal year ending June 30, 2004, for
payment of debt service and trustee fees on outstanding state
guaranteed transportation revenue anticipation bonds.
(q) The sum of $3,211,600 is appropriated from the Alaska
debt retirement fund (AS 37.15.011) to the state bond
committee for the fiscal year ending June 30, 2004, for
payment of debt service and trustee fees on outstanding
general obligation bonds for state transportation projects.
(r) The sum of $6,693,500 is appropriated from the Alaska
debt retirement fund (AS 37.15.011) to the state bond
committee for the fiscal year ending June 30, 2004, for
payment of debt service and trustee fees on outstanding
general obligation bonds for the cost of design, construction,
and major maintenance of educational and museum facilities.
Inserted subsections:
(m) The sum of $4,194,493 is appropriated to the state
bond committee from State of Alaska general obligation bonds,
Series 2003B bond issue premium held in the Alaska debt
service fund for the fiscal year ending June 30, 2004, for
payment of debt service, accrued interest, and trustee fees on
outstanding State of Alaska general obligation bonds, Series
2003B.
(n) The sum of $15,192,594 is appropriated to the state
bond committee from State of Alaska general obligation bonds,
Series 2003A bond issuance premium held in the Alaska debt
service fund for the fiscal year ending June 30, 2004, for
payment of debt service, accrued interest, and trustee fees on
outstanding State of Alaska general obligation bonds, Series
2003A bond.
Co-Chair Green moved for adoption and explained this amendment
would "change the way the debt service interest and trustee fees on
GO [general obligation] bonds are paid, negating the need for
general funds". She furthered that with the sale of a greater
number of bonds in the current year, along with a higher interest
rate, earnings were realized, thus allowing the fees and interest
expenses to be paid in this manner.
Senator Taylor noted this amend would actually utilize "a premium
that was received by the State; additional income we weren't
counting on in the issuance of those bonds that the people voted
for last fall have now been issued and sold." He pointed out the
State is restricted on the use of these funds and that this
amendment would appropriate the funds to pay off the interest and
bond payment debt, not only for this year, but also for next year,
thus explaining the appropriation for FY 05 included in the
amendment
Co-Chair Green clarified that "a like amount [would be] available
to pay that off next year."
The amendment was ADOPTED without objection.
LANG #3: This amendment increases the amount of the appropriation
from the general fund to the Alaska debt retirement fund and
subsequently increases the amount of the appropriation from the
Alaska debt retirement fund to the Department of Education and
Early Development in Section 32. STATE DEBT AND OTHER OBLIGATIONS.
The amended language reads as follows.
(c) The sum of $13,298,300 is appropriated from the
general fund to the Alaska debt retirement fund (AS
37.15.011).
…
(f) The sum of $66,024,100 is appropriated to the
Department of Education and Early Development for state aid
for costs of school construction under AS 14.11.100 from the
following sources:
Alaska debt retirement fund (AS 37.15.011) $37,424,100
School fund (AS 43.50.140) 28,600,000
Accompanying explanatory language reads as follows.
This amendment adds $6,602,400 general funds to the debt
retirement fund. The additional funds are appropriated to the
Department of Education and Early Development for school debt
reimbursement.
The amendment funds the school debt reimbursement program at
the 70% level approved by the legislature last year. The
Governor's bill and this committee substitute reduce the
funding level by 10%, so that state reimbursement of municipal
school debt is 63% of municipal costs.
Senator B. Stevens moved for adoption and explained that this
amendment would "bring the school debt reimbursement back to the
seventy-percent level from the previous 63-percent level, adding
$6,602,400 general funds."
Co-Chair Green commented that the Members heard from many school
districts requesting the Legislature provide funding to provide the
full 70 percent State reimbursement.
There was no objection and the amendment was ADOPTED.
LANG #4: This amendment inserts a new subsection (b) to Section 29
on page 58, lines 17 - 19 to read as follows.
Sec. 27. POWER COST EQUALIZATION. (a) The sum of
$12,524,400 is appropriated from the power cost equalization
endowment fund (AS 42.45.070) to the power cost equalization
and rural electric capitalization fund (AS 42.45.100).
(b) The sum of $2,500,000 of Investment Loss Trust Funds
is appropriated to the power cost equalization and rural
electric capitalization fund (AS 42.45.100).
This amendment also deletes subsection (l), appropriating $775,000
from miscellaneous earnings from earnings on unreserved investment
earnings of the Alaska Municipal Bond Bank to the Alaska debt
retirement fund, in Section 32. STATE DEBT AND OTHER OBLIGATIONS.
on page 61, lines 29 and 30.
Accompanying explanatory language reads as follows.
A premium generated by the recent sale of bonds eliminates the
need to capitalize the Alaska Debt Retirement Fund with
Investment Loss Trust Funds.
Co-Chair Wilken moved for adoption and explained it would transfer
Investment Loss Trust Funds (ILTF) to the debt retirement fund and
utilize $2.5 million from the debt retirement fund to offset the
anticipated short-fall of the Power Cost Equalization (PCE)
requirement for FY 04. He predicted adoption of this amendment
would fully fund the PCE program at $15.7 million.
AT EASE 8:08 PM / 8:10 PM
Co-Chair Wilken moved to amend the amendment to reduce the
appropriation in Section 27(b). The amended language reads as
follows.
(b) The sum of $1,700,000 of Investment Loss Trust Funds
is appropriated to the power cost equalization and rural
electric capitalization fund (AS 42.45.100).
Senator Hoffman requested data reflecting this new information.
Co-Chair Green indicated the amendment to the amendment reflects
updated information, which would be provided to Members.
Without objection the amendment was AMENDED and ADOPTED.
LANG #5: This amendment inserts new bill sections on page 63,
following line 31, and page 64, following line 21, to read as
follows.
Sec. 36. OFFICE OF VICTIMS' RIGHTS; INMATE HEALTH CARE.
(a) The unexpended and unobligated balance, not to exceed
$50,100, of the appropriation of "PFD Appropriations in lieu
of Dividends to Criminals" funds (state budget system fund
number 1171) made by sec. 1, ch. 94, SLA 2002, page 40, line
32 (Legislative Council) is reappropriated to the Legislative
Council for operation of the Office of Victims' Rights for the
fiscal year ending June 30, 2004.
(b) The unexpended and unobligated balance, remaining
after the appropriation made by (a) of this section, of the
appropriation of "PFD Appropriation in lieu of Dividends to
Criminals" funds (state budget system fund number 1171) made
by sec. 1, ch. 94, SLA 2002, page 40, line 32 (Legislative
Council) is reappropriated to the Department of Corrections
for inmate health care for the fiscal year ending June 30,
2004.
…
Sec. 39. Section 36 of this Act takes effect June 30,
2003.
This amendment also deletes $51,100 general funds from the Budget
and Audit Committee Budget Request Unit (BRU), Committee Expenses
component and Legislative Council BRU, Council and Subcommittees
component on page 35, lines 10 and 17. [Breakdown of this reduction
is not specified in the amendment.
Co-Chair Green moved for adoption and explained this amendment
would utilize $50,000 scheduled to lapse in FY 03 of Permanent Fund
Dividend (PFD) funds that were "withheld from felons". She informed
that these funds would be appropriated to the Office of Victim's
Rights for FY 04 operations with the exception of approximately
$8,500, which would be reappropriated to Inmate Health Care within
the Department of Corrections. She stated, "The lapse allows us to
reduce $50,100 general funds in the Office of Victim's Rights."
Senator Taylor spoke as the Chair of the Legislative Counsel in
appreciation that these funds "are going towards those restricted
items that they can only be used for, which is inmate health or
assistance to victims."
There was no objection and the amendment was ADOPTED.
Department of Administration
ADMIN #1: This amendment adds $39,400 Mental Health Trust Authority
Authorized Receipts (MHTAAR) for the Legal and Advocacy Services
BRU, Public Defender Agency component on page 4, line 13.
Accompanying explanatory language reads as follows.
In subcommittee, the Mental Health Trust Authority requested a
reduction in MHTAAR receipt authority within the Public
Defender Agency. In further discussions with the Department of
Administration and the Trust, the correct amount of MHTAAR
funds necessary to fund the existing Public Defender Position
for the Mental Health Court was determined and this additional
amount will fully fund the position.
Senator Bunde moved for adoption and explained that the Mental
Health Trust Authority requested fully funding the public defender
position of the mental health court.
Co-Chair Green reiterated this amendment was submitted at the
request of the Mental Health Trust Authority.
The amendment was ADOPTED without objection.
Department of Community and Economic Development
CED #1: This amendment adds $50,000 other funds to the Community
Assistance & Economic Development BRU, Community Advocacy component
on page 5, line 4. Accompanying explanatory language reads as
follows.
This amendment adds $50,000 in receipt supported services to
the Community Development Quota program. All of the CDQ groups
have agreed to this fee.
Co-Chair Wilken moved for adoption and commented this program has
been "wildly successful". He stated this amendment reflects a need
of the program to receive $50,000 receipt supported services.
Without objection the amendment was ADOPTED.
CED #2: This amendment adds $3,213,800 Science & Technology
Endowment Fund funds to the State Revenue Sharing BRU and component
on page 5, line 7.
Senator Hoffman moved for adoption.
Co-Chair Wilken objected.
Senator Hoffman spoke to the amendment, saying it would "bring the
State Revenue Sharing program and the Safe Communities program back
to the fully funding." He relayed the Governor's recommendation of
a 25 percent reduction, although Senator Hoffman surmised the
adoption of this amendment would prevent the "passing on [of a] tax
burden to the local governments at this time." He understood
municipalities were "experiencing many, if not more of the
financial problems that the State of Alaska is presently dealing
with." He noted funding to the programs has been declining
"steadily over the years".
Co-Chair Wilken commented, "my government along with governments
across the State share in the burden of declining State revenues.
This is an attempt on behalf of the Governor, and supported by this
budget, to ask the communities to tighten their belts a bit. This
line item in the budget does that. While it's difficult for all of
us to accept, the pure facts are is that it's something we have to
have the local people deal with to help us balance our budget." He
also pointed out that the Science & Technology Endowment Fund has
been utilized to fund other items within this budget legislation
"that we feel to be more worthy of that funding", therefore the
funding source is not available.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Education and Early Development
DEED #1: This amendment deletes the language in Section 14 and
inserts new language on page 52, following line 27 to read as
follows.
Sec. 14. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT.
(a) Contingent upon the passage by the Twenty-Third Alaska
State Legislature during 2003 and the enactment into law of a
bill increasing the base student allocation under AS
14.17.470, the sum of $32,150,600 is appropriated to the
Department of Education and Early Development for the fiscal
year ending June 30, 2004, for additional funding of state aid
to public schools (commonly referred to as the foundation
program) to fund the increase in the base student allocation
from the following sources in the amounts described:
(1) the unexpended and unobligated general fund
balance of that portion of the appropriation made by sec. 1,
ch. 94, SLA 2002, page 11, line 17, that is allocated on line
18 (foundation program - $677,319,400);
(2) the general fund in the amount equal to the
difference between $32,150,600 and the amount appropriated
under (1) of this subsection.
(b) If a bill is passed by the Twenty-Third Alaska State
Legislature during 2003 and is enacted into law increasing the
base student allocation under AS14.17.470 to an amount less
than $4,169, then that portion of the appropriation made by
(a) of this section that is necessary to fund the increase in
the base student allocation is appropriated to the Department
of Education and Early Development for the fiscal year ending
June 30, 2004, for additional funding of state aid to public
schools (commonly referred to as the foundation program) to
fund the increase in the base student allocation and the
remaining balance of the appropriation of $32,150,600 made by
(a) of this section is reappropriated to the Department of
Education and Early Development for the fiscal year ending
June 30, 2004, for payment as learning opportunity grants to
school districts based on the school district's adjusted
average daily membership to pay for instructional programs
intended to improve student performance. Learning opportunity
grants provide the opportunity to move schools toward
standards-based education, including vocational education
programs. The funding is available to pay for costs associated
with improving student performance by developing standards-
based programs, including implementation of standards,
aligning student assessment to standards, staff development,
adopting instructional models based on basic skills,
performance tasks, and projects, and adopting a standards-
based reporting system. Accomplishing this goal may include
acquisition of textbooks and other educational materials.
(c) If a bill is not passed by the Twenty-Third Alaska
State Legislature during 2003 and enacted into law to increase
the base student allocation under AS 14.17.470, then the
unexpended and unobligated general fund balance of that
portion of the appropriation made by sec. 1, ch. 94 SLA 2002,
page 11, line 17, that is allocated on line 18 (foundation
program - $677,319,400) is reappropriated to the Department of
Education and Early Development for the fiscal year ending
June 30, 2004, for payment as learning opportunity grants to
school districts based on the school district's adjusted
average daily membership to pay for instructional programs
intended to improve student performance. Learning opportunity
grants provide the opportunity to move schools toward
standards-based education, including implementation of
standards, aligning student assessment to standards, staff
development, adopting instructional models based on basic
skills, performance tasks, and projects, and adopting a
standards-based reporting system. Accomplishing this goal may
include acquisition of textbooks and other educational
materials.
(d) If a bill is not passed by the Twenty-Third Alaska
State Legislature during 2003 and enacted into law to increase
the base student allocation under AS 14.17.470, then, an
amount equal to the difference between $32,150,600 and the
amount appropriated under (c) of this section is appropriated
from the general fund to the Department of Education and Early
Development for the fiscal year ending June 30, 2004, for
payment as learning opportunity grants to school districts
based on the school district's adjusted average daily
membership to pay for instructional programs intended to
improve student performance. Learning opportunity grants
provide the opportunity to move schools toward standards-based
education, including vocational education program. The funding
is available to pay for costs associated with improving
student performance by developing standards-based programs,
including implementation of standards, aligning student
assessment to standards, staff development, adopting
instructional models based on basic skills, performance tasks,
and projects and adopting a standards-based reporting system.
Accomplishing this goal may include acquisition of textbooks
and other educational materials.
This amendment also provides that subsections (a)(1) and (c) take
effect June 30, 2003.
Co-Chair Wilken moved for adoption and explained this amendment
incorporates the existing Learning Opportunity Grants (LOG)
utilized for the past three years and the one-time LOG grant of the
previous year into the "student dollar." He stated this would
increase the student dollar from $4,010 to $4,169, utilizing
general funds and an $8.9 million lapse in the FY 03 foundation
funding formula appropriation. He informed that statutory changes
are required to enable the provisions of this amendment. He
announced the Committee would consider legislation to increase the
student dollar amount accordingly; however, should this legislation
fail, contingency language is included in this amendment to
appropriate the same amount through the foundation funding formula.
Senator Hoffman asked if the total increase in student dollars
would be $32.15 million.
Co-Chair Wilken affirmed.
Senator Taylor clarified this includes the aforementioned lapse.
There was no objection and the amendment was ADOPTED.
DEED #2: This amendment inserts a new subsection to Section 14.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT., on page 53,
following line 21 to read as follows.
(c) Contingent upon the passage by the First Regular
Session of the Twenty-Third Alaska State Legislature and the
enactment into law of a bill that establishes a program for
state funding for operation of student transportation systems
by public schools based on a per student allocation,
(1) the sum of $53,933,800 is appropriated from the
general fund to the Department of Education and Early
Development for pupil transportation for the fiscal year
ending June 30, 2004; and
(2) the appropriation made by sec. 1 of this Act to
the Department of Education and Early Development for pupil
transportation for the fiscal year ending June 30, 2004, is
repealed.
Senator Taylor moved for adoption and explained this amendment
would restore the funding level to the FY 03 expenditure amount for
pupil transportation of public schools. He qualified this does not
include any increases that could occur for school districts
currently under contract.
Co-Chair Green furthered that legislation is under consideration
that addresses pupil transportation in a "different way".
Senator Hoffman clarified that although this amendment references
$53.9 million, the actual increment is $10.7 million.
Senator Taylor affirmed and reiterated the matter of pupil
transportation is addressed in this budget as well as other
legislation. He informed that the other bill would have a zero
fiscal note if this amendment to the FY 04 operating budget
legislation were adopted, and a fiscal note of $10.7 million if
this amendment were not adopted.
There was no objection and the amendment was ADOPTED.
DEED #3: This amendment adds $1,340,900 general funds to the K-12
Support BRU, Foundation Program component on page 9, line 24.
Co-Chair Green moved for adoption and explained this is a
correction to the committee substitute, as an amount was
inadvertently "deleted twice".
Without objection the amendment was ADOPTED.
DEED #4: This amendment adds the Alyeska Central School BRU and
component and appropriates $3,838,900 Inter-Agency Receipts (I/A
Receipts) and $43,000 general funds. Accompanying explanatory
language reads as follows.
Restore funding and positions (21 PFT [permanent full time]/26
PPT [permanent part time] / 1 Temp) for Alyeska Central
School, excluding summer school. The general funding increase
is for the salary adjustments.
Co-Chair Green moved for adoption and explained this amendment
would provide for the cancellation of the summer school program and
allocates inter-agency receipts and general funds to the Alyeska
Central School.
Co-Chair Green offered a friendly amendment to the amendment to add
$250,000 Receipt Supported Services to the Alyeska Central School
BRU and component. She noted these funds are generated from tuition
payments and utilized by school districts to support the Alyeska
Central School.
Senator Hoffman clarified the only change from the current year
would be the suspension of the summer school program.
Co-Chair Green affirmed.
Without objection the AMENDED amendment was ADOPTED.
DEED #5: This amendment adds a new Tuition component to the K-12
Support BRU on page 9, line 23 and appropriates $2,225,000 general
funds. Accompanying explanatory language reads, "Restore funding to
100% of FY 04 need."
Senator Bunde moved for adoption and read the explanatory statement
into the record.
Co-Chair Green furthered this amendment reflects the tuition
payment for students who are wards of the State and require
additional services outside Alaska.
Senator Hoffman was under the impression that funding for this
purpose was included in the foundation funding formula. He
requested the Division of Legislative Finance explain.
KAREN REHFELD, Director, Division of Education Support Services,
Department of Education and Early Development, testified this
tuition expense is in addition to the foundation funding formula
and detailed the calculation of tuition rate for wards of the State
in the amount of local tax effort the school district would have
paid for that student.
There was no objection and the amendment was ADOPTED.
DEED #6: This amendment inserts intent language to the K-12 Support
BRU, Foundation Program component on page 9 line 24 to read as
follows.
It is the intent of the legislature that (1) the Local
Boundary Commission identify opportunities for consolidation
of schools, with emphasis on school districts with fewer than
250 students, through borough incorporation, borough
annexation, and other boundary changes; (2) the Local Boundary
Commission work with the Department of Education and Early
Development to fully examine the public policy advantages of
prospective consolidations identified by the Local Boundary
Commission, including projected cost savings and potential
improvements in educational services made possible through
greater economies of scale; and (3) the Local Boundary
Commission with the Department of Education and Early
Development report their findings to the legislature no later
thrd
than the 30 day of the Second Session of the 23
Legislature.
Co-Chair Wilken moved for adoption and read the intent language
into the record.
Senator Hoffman asked if a list of the district containing 250 or
fewer students was available.
Co-Chair Wilken affirmed and read in ascending order as follows.
Pelican 18
Aleutian Region 46
Tanana 60
Hydaburg 88
Chugiak 95
Skagway 104
Yakutat 122
Pribilof 136
Kake 157
Klawock 158
St. Marys 185
Hoonah 189
Nenana 202
Southeast Islands 207
Chatham 224
Bristol Bay 236
Galena 243
Senator Hoffman asked under what rationale the 250 amount was
derived.
Co-Chair Wilken answered, "just a break point."
The amendment was ADOPTED without objection.
Department of Environmental Conservation
DEC #1: This amendment adds $137,100 Science & Technology Endowment
Fund funds to the Environmental Quality BRU, Laboratory Services
component on page 11, line 20. Accompanying explanatory language
reads as follows.
The State Chemical Laboratory in Juneau is an essential part
of ensuring the state's environmental program funds are well
spent. The lab also provides critical services to private
industry and public health, in addition to making excellent
quality lab facilities available to university researchers,
students and high school science fair participants.
This amendment would restore two of the eight positions slated
for cut - one organic chemist and one inorganic chemist. It
would also allow the state to continue extracting value from
the laboratory lease, which is prepaid and leased through
2006. The lab facility is also a critical portion of seven
ongoing research grants at the University of Alaska and a
vital piece of the university's environmental science program.
As recent experience with Stellar seal lions has shown, good
science is critical to Alaska's economic future.
The state chemistry lab also provides state of the art
facilities to the state's Division of Commercial Fisheries,
NOAA [National Oceanic Atmospheric Administration], and Alaska
high school science fair students, several of whom have gone
on to represent our state at the International Science Fair.
Finally, the state chemistry lab provides services to private
industry in Alaska, certifying private labs and acting as an
independent referee when results from other laboratories don't
agree. Some tests done at the state chemistry lab are done at
no other laboratory in the state. This amendment restores the
absolute bare bones required to maintain the lab's operations
and continue its cooperation with the university and other
agencies.
Senator Olson moved for adoption
Senator Taylor objected.
Senator Olson overviewed the explanatory statement.
Senator Taylor, as chair of the Department of Environmental
Conservation budget subcommittee, remarked that he has "worked
closely" with the commissioner and agreed the laboratory was not
compliant with the core level of services and the mission statement
of the Department. He told of the commitment of Department staff to
"fit within the perimeters of the budget they have been authorized
to request" and the determination that funds would be better spent
on core programs necessary to meet "mission obligations". He
admitted the benefits of a research laboratory for the University
and for high school science fair participants.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Fish and Game
F&G #1: This amendment adds $800,000 Science & Technology Endowment
Fund funds to the Administration and Support BRU, State Subsistence
component on page 13, line 29. Accompanying explanatory language
reads as follows.
Explanation: Restores component to Governor's requested level
The Governor's Budget replaces $1 million in AIDEA [Alaska
Industrial Development and Export Authority] dividend receipts
(one time funds) with $800,000 in GF [general funds], which
was already a $200,000 cut in GF. The Senate subcommittee
reduction will eliminate any effective role for the Division
of Subsistence because it potentially puts in jeopardy the
$2.1 million in federal funds that also supports the
division's work.
Subsistence is, by law the priority use of F&G in Alaska (AS
16.05.258). The Division of Subsistence is the primary State
agency charged with implementing that law (AS 16.05.094) this
reduction will mean most subsistence harvests will no longer
be monitored.
Without information provided by the Division of Subsistence,
the state fish and game boards will have only outdated or
incomplete information: this will increase the likelihood of
the boards either failing to provide reasonable opportunity
for subsistence or conversely, setting conservative management
objectives that unnecessarily restrict other uses.
The Subsistence Division provides an essential liaison
function for all the divisions in the department with the
federal program. Without a strong state participation in duel
management, federal managers may seriously consider of even
adopt ill advised proposals or take unnecessary actions,
further diverging state and federal regulatory regimes. This
will result in more confusion for the public and increase
possibilities for more conflict.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman pointed out the amount requested in this amendment
equals the amount requested by the Governor. He overviewed the
explanatory statement.
Senator Hoffman predicted that current State practices increase the
potential of federal management on State-owned lands in addition to
the federally owned lands currently managed by the federal
government. He expressed, "the current system is not working well."
He reported that the majority of Alaskans support the subsistence
program and prefer State management.
Senator Olson cautioned that in the event of an audit, due to the
absence of adequate data, the federal government would find the
State at fault and would assume federal management of fish and
wildlife resources. He reminded that a primary reason for achieving
statehood was to allow Alaska to manage its resources.
Senator Taylor asserted the subject is of greater complexity and
depth than illustrated in this amendment. He told of the federal
subsistence board increase in the allowable deer harvest per person
on State-owned land on Prince of Wales Island, as well as allowing
the harvesting of does. He stated that research conducted and
presented by the Division of Subsistence was used to argue against
the federal subsistence board's decision to allow doe harvest, but
was "totally disregarded". He gave other examples of instances of
Department of Fish and Game expertise disregarded by the federal
subsistence boards, including a recent ruling allowing certain
residents a bag limit of 20 halibut. He therefore argued against
funding a Division that is not given consideration or credibility
by the boards issuing decisions. He expressed, "I think it's sad
and it's a sad comment that the federal government would interfere
in our management of fish and game in that fashion."
Senator B. Stevens spoke as chair of the Department of Fish and
Game budget subcommittee and informed that the "gap in the
Subsistence Division" reflects a one-time funding source utilized
to fund the Division in FY 03. He noted that the Senate Majority
recommends the Department receive a $2.4 million general fund
decrement in FY 04. In determining the distribution of the
reduction, he relayed that the subcommittee considered allocating
$800,000 general funds to the Division of Subsistence; however,
chose to allocate that amount to the Division of Commercial
Fisheries, based on information submitted by the Department listing
the consequences of a funding reduction to that Division, which he
read as follows.
· We will not be able to monitor fisheries and collect
biological data on the grounds and the Department's
ability to monitor long-term health of the region's
shellfish resource.
· Herring stock assessment program would be reduced to the
Central Region.
· Eliminate biologists
· Eliminate positions, in coordination of planning and
permitting in the Central Region.
· Eliminate control to hire graduate students and retain
fisheries biologists
· Eliminate Crescent Lake Sonar
· Eliminate Bristol Bay smelt programs
· AYK Region - $200,000 reduction
Senator B. Stevens remarked that the subcommittee determined that
the Division of Commercial Fisheries monitors the health of the
stocks, whereas the Division of Subsistence monitors the methods in
which the stocks are harvested. He stated the subcommittee
determined funds would be better spent monitoring the stocks. He
urged Members to oppose the amendment.
Senator Hoffman agreed with Senator B. Stevens' assessment and
assured this amendment would not remove funds from the Commercial
Fisheries component. He spoke of his ten-years serving on the
Department of Fish and Game budget subcommittee, two as chair, and
expressed his full awareness of the importance of the activities of
the Department. He asserted the Department "more than pays its fair
share to the State coffers" and that more should be appropriated to
it to subsequently provide more jobs to Alaskans. He charged, "We
should not be harming one of the golden eggs that we have in the
State." He clarified he supports the appropriation of additional
fund to the Department, rather than the transfer of funds within
the Department.
Senator Hoffman told of questionable federal management decisions
and asserted therefore that State decisions should be science based
and beyond reproach.
Senator Bunde asked if Science & Technology Endowment Fund funds
were available for appropriation.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Health and Social Services
H&SS #1: This amendment adds $44,800,000 general funds to the
Alaska Longevity Programs BRU, Alaska Longevity Programs Management
component on page 14, lines 32 and 33. Accompanying explanatory
language reads, "Restore Longevity Bonus Grants to meet the low
case projection."
This amendment also inserts an OAA-ALB Hold Harmless component to
the Public Assistance BRU on page 18 line 9 and appropriates
$1,459,500 general funds. Accompanying explanatory language reads
as follows.
Reinstate Old Age Assistance-AK Longevity Bonus (OAA-ALB) Hold
Harmless Program in conjunction with the restoration of the
Longevity Bonus Grants.
This amendment also changes the funding source of $1,500,000 from
general funds to receipt supported services in the Alaska Longevity
Bonus Programs BRU, Pioneers' Homes component on page 15, line 3.
Accompanying explanatory language reads, "Reverse the loss of
Longevity Bonus receipts."
Co-Chair Green moved for adoption and explained this amendment is a
restoration of the Longevity Bonus Grant funds and hold harmless
provision, and allocates funds to the Pioneers' Homes.
Senator Hoffman asked for clarification of the differing amounts of
this amendment and the FY 03 management plan.
Co-Chair Green responded the amount of FY 03 was $45 million and
the projection for FY 04 is $44.08 million.
Senator Olson commended Co-Chair Green for sponsoring this
amendment.
Without objection the amendment was ADOPTED.
H&SS #2: This amendment inserts a Human Services Community Matching
Grant BRU and component and appropriates $1,000,000 general funds.
Accompanying explanatory language reads, "This amendment restores
the level of funding to 77% of the FY 03 level."
Co-Chair Green moved for adoption and explained this amendment
would restore approximately three-quarters of funds to the grant
program.
The amendment was ADOPTED without objection.
H&SS #3: This amendment adds $200,000 general funds to the
Children's Services BRU, Infant Learning Program Grants component
on page 16, lines 15 and 16. Accompanying explanatory language
reads, "Restores 80% of the $250,000 decrement to the Infant
Learning Program."
Co-Chair Green moved for adoption and overviewed the explanatory
statement.
There was no objection and the amendment was ADOPTED.
H&SS #4: This amendment deletes "Grants" from the "Community
Developmental Disabilities Grants" component in the Senior and
Disabilities Services BRU on page 19, lines 11 and 12. This
amendment also adds $800,000 General Funds/Mental Health funds to
renamed Community Developmental Disabilities component.
Accompanying explanatory language reads as follows.
This amendment will enable the Department to serve individuals
who may be in crisis and to provide core services to clients
on the Developmental Disabilities wait list.
Note delete "grants" from component name.
Co-Chair Green moved for adoption and commented this relates to the
issue legislators had received the second highest amount of public
comments during the session. She stated this amendment would
restore two-thirds of the funding, with "underutilized funds".
Co-Chair Green noted the removal of "grant", as the term is a
"misnomer".
Senator Hoffman asked if the original amount was $1.2 million.
Co-Chair Green affirmed.
The amendment was ADOPTED without objection.
H&SS #5: This amendment deletes $985,200 Tobacco Use Education and
Cessation funds from the Health Care Services BRU, Medicaid State
Programs component on page 17, line 19 and adds $985,200 Tobacco
Use Education and Cessation funds to the State Health Services BRU,
Tobacco Prevention and Control component on page 19, lines 26 and
27.
Co-Chair Green moved for adoption and characterized this amendment
as a "transaction" and would "bring the amount to the 20 percent"
for Tobacco Prevention and Control, Epidemiology and Community
Health Emergency Medical Services.
Senator Taylor thanked the co-chair for offering this amendment.
Senator Olson noted this does not equal the 20 percent. He
established the 20 percent is reference to 20 percent of tobacco
settlement funds appropriated for smoking cessation and education
purposes.
Co-Chair Green replied that $4,388,100 is 20 percent and listed
$221,300 appropriated to the Community Health Emergency Medical
Services component, $663,800 appropriated to the Epidemiology
component, and $3,643,000 for the Tobacco Prevention and Control
component.
AT EASE 8:50 PM / 8:52 PM
Without objection the amendment was ADOPTED.
H&SS #6: This amendment adds $1,200,000 Science & Technology
Endowment Fund funds to the Senior and Disabilities Services BRU,
Community Development Disability Grants on page 19, lines 11 and
12. Accompanying explanatory language reads as follows.
This budget amendment keeps the $1,200,000 in the Community DD
Grants Program, with the hope to serve the 1,300 people still
on the waitlist.
This amendment also adds $412,500 Science & Technology Endowment
Fund funds to the Senior and Disabilities Services BRU, Home and
Community Based Care component on page 19, lines 8 and 9.
Accompanying explanatory language reads as follows.
This amendment restores funding to the FY 03 management plan.
These funds for the Home and Community based care for senior
and disability services assist our seniors from moving into a
nursing home where costs to the state are substantially
higher. In addition, this is a "Safety Net" program "cited" by
the Governor that supports senior citizens. (ltr dated March
28, 2003 to Senior Alaskans)
This amendment also adds $215,500 Science & Technology Endowment
Fund funds to the Senior and Disabilities Services BRU, Protection,
Community Services, and Administration component on page 19, lines
3 and 4. Accompanying explanatory language reads as follows.
This amendment restores these funds to the FY 03 management
plan. Senior citizens are among our most vulnerable. These
funds assist in their protection against those who take
advantage of them. In addition, this is a "Safety Net" program
"cited" by the Governor that supports senior citizens. (ltr
dated March 28, 2003 to Senior Alaskans)
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson moved to amend the amendment to remove the $1,200,000
appropriation of Science and Technology Endowment Fund funds to the
Community Development Disability Grants component.
The amendment was AMENDED without objection.
Senator Olson read the explanatory language into the record.
SFC 03 # 63, Side B 08:54 PM
Senator Olson continued.
Co-Chair Green maintained her objection to the adoption of the
amendment.
A roll call was taken on the motion to adopt the amendment as
amended.
IN FAVOR: Senator Taylor, Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amended amendment FAILED to be adopted.
H&SS #7: This amendment adds $250,000 Science & Technology
Endowment Fund funds to the Children's Services BRU, Infant
Learning Programs Grants component on page 16, lines 15 and 16.
Accompanying explanatory language reads as follows.
This amendment restores the Infant Learning Program to the
Governor's proposal, which is flat funded at the FY 03
management plan. The reduction would result in elimination of
early intervention services to 58 children around the state.
This amendment also adds $270,600 Science & Technology Endowment
Fund funds to the Children's Services BRU, Family Preservation
component on page 16, line 3. Accompanying explanatory language
reads as follows.
This budget amendment will restore $270,600 in grants to
community organizations in Fairbanks, Anchorage, Nome, Juneau,
and Kotzebue, preventing 134 families from losing support
services.
This amendment also adds $1,500,000 Science & Technology Endowment
Fund funds to the Children's Services BRU, Front Line Social
Workers component on page 15, line 33. Accompanying explanatory
language reads as follows.
This budget amendment will add 25 new front line social
workers to the new Division of Children's Services.
According to a federal audit, Alaska is failing to meet
national standards of care for child abuse and neglect
victims. This failure is directly tied to the caseload for
Alaska's social workers, which greatly exceeds the nationally
recommended standard. In order to meet that standard, Alaska
would need over 70 new social workers.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson moved to amend the amendment to delete the $250,000
in Science & Technology Endowment Fund funds appropriated to the
Infant Learning Program component.
The amendment was AMENDED without objection.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion to adopt the amendment as
amended.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amended amendment FAILED to be adopted.
H&SS #8: This amendment inserts a Court Order and Reunification
Efforts component to the Children's Services component on page 15,
line 28 and adds $500,000 Science & Technology Endowment Fund
funds. Accompanying explanatory language reads as follows.
This restores funds to the FY 03 management plan. The
department of Health and Social Services cannot predict with
any accuracy how many court order reunifications they receive
each year. This is the amount that has been historically
funded and should continue to be. In agreement with statements
made by the co-chair of Senate Finance regarding "truth in
budgeting" and in keeping next year's supplemental budget
smaller, this program should continue to be funded in the
operating budget.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson read the explanatory statement into the record.
Co-Chair Green reiterated the number of cases could not be
predicted and asserted that additional funding would be made in the
FY 04 supplemental budget if necessary.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
H&SS #9: This amendment adds $637,000 Science & Technology
Endowment Fund funds to the Behavioral Health BRU, Services to the
Chronically Mentally Ill component on page 15, lines 21 and 22.
Accompanying explanatory language reads as follows.
This budget amendment restores funding for the SEAL Grants
Program. The Alaska Mental Health Board has put restoration of
the SEAL Grants Program at the top of its priority list. SEAL
supports non-traditional programs that focus on self-
sufficiency and recovery, steering people away from expensive
institutional care toward community-based outpatient services,
and ultimately, self-care services.
This amendment also inserts a Human Services Community Matching
Grant BRU and component and appropriates $1,300,000 Science &
Technology Endowment Fund funds. Accompanying explanatory language
reads as follows.
This budget amendment restores the program. These funds are
used as grants to Anchorage and Fairbanks for services which
include, substance abuse treatment, mental health services,
food and shelter for the low income population, sexual assault
and domestic violence treatment, runaway shelters, health
services for the low income population, housing and
rehabilitation for the physically and mentally ill.
This amendment also adds $100,000 Science & Technology Endowment
Fund funds to the State Health Services BRU, Community Health
Grants component on page 19, line 21. Accompanying explanatory
language reads as follows.
This amendment restores funding to the FY 03 management plan.
These grants fund local community mental health programs,
services include evaluation and diagnosis; brief strategic
individual and family psychotherapy; psychiatric and nursing
services; and case consultant.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson moved to amend the amendment to delete insertion of
the Human Services Community Matching Grant BRU and component and
the subsequent $1,300,000 appropriation of Science & Technology
Endowment Fund funds.
The amendment was AMENDED without objection.
Senator Olson read the explanatory statements into the record.
Co-Chair Green noted that any appropriation of Science and
Technology Endowment funds would require an increased withdraw from
the Constitutional Budget Reserve (CBR) Fund, as the Endowment
funds have already been incorporated into the proposed budget.
Senator Taylor furthered that this legislation deposits all Science
and Technology Endowment funds into the general fund, and
therefore, the Endowment would no longer exist upon passage of this
budget.
Senator Hoffman pointed out that other adopted amendments have
resulted in a required increase from the CBR. He therefore
discounted the argument against adoption of this amendment. He
clarified that he supports the passage of the additional funding
appropriated by the adopted amendments.
A roll call was taken on the motion to adopt the amendment as
amended.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amended amendment FAILED to be adopted.
Department of Labor and Workforce Development
DLWD #1: This amendment adds $467,800 Investment Loss Trust Funding
[ILTF] to the Vocational Rehabilitation BRU, Independent Living
Rehabilitation component on page 21, lines 32 and 33. Accompanying
explanatory language reads as follows.
$9.9 million of debt retirement funding has been freed up due
to a premium that was generated by the recent sale of the
education and transportation general obligation bonds and the
state guaranteed transportation revenue anticipation bonds.
This amendment uses freed up ILTF that was in the Debt
Retirement Fund.
Senator Bunde moved for adoption and pointed out adoption of this
amendment would provide approximately 75 percent of the funding
amount requested. He noted the Department has successfully
endeavored to secure additional funding to fully fund the program.
Senator Taylor thanked Senator Bunde and the commissioner for their
efforts to secure this funding.
Co-Chair Wilken understood the Department secured $100,000 and
asked if this would meet the funding request of $618,000.
Senator Bunde informed of $300,000 of "carry over" funds that could
be reappropriated to the program.
The amendment was ADOPTED without objection.
DLWD #2: This amendment adds $464,000 Science & Technology
Endowment Fund funds to the Vocational Rehabilitation BRU,
Independent Living Rehabilitation component on page 21, lines 32
and 33. Accompanying explanatory language reads as follows.
Restores funding to the FY 03 management plan. The Independent
Living program helps Alaskans to remain in their own homes and
continue to be an active and vital citizen in the communities.
Program support comes through staff, transportation and
equipment. Funds that help people live independently in the
community saves money for the state as nursing homes and
institutions cost much more.
Senator Hoffman stated this amendment would be NOT OFFERED based on
action taken on DLWD #1.
Senator Hoffman noted this matter had generated significant public
comment and that funding the program would save general funds in
the long term. He explained the cost effectiveness of housing these
participants in independent living situations compared to
institutions. He also remarked on the higher quality of life
afforded in independent living.
Co-Chair Green expressed a need to review the program in the
following year to identify whether it should be combined with the
assisted living program.
DLWD #3: This amendment adds $167,100 Science & Technology
Endowment Fund funds to the Business Partnership BRU, Adult Basis
Education component on page 21, line 20. Accompanying explanatory
language reads as follows.
This amendment restores funding for Adult Basic Education to
the FY 03 level. ABE provides rudimentary education including
basic reading, mathematics, and English language classes.
People without these most basic skills are far more likely to
be unemployed. Their children are far less likely to succeed
in school, and are themselves at increased risk of needing
public services later in life. Parents who learn to read and
speak English through ABE classes are better able to provide
for their families.
The investment Alaska makes in educating adults without these
basic skills puts off in reduced welfare, Medicaid, and other
expenses. It also broadens the skill base of Alaska's
workforce, creating a more attractive environment for economic
development.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman characterized this as a "critical" amendment for
adult education. He pointed out that in FY 02, 29 percent of high
school diplomas received were from general equivalency diploma
(GED) programs. He furthered that 58,000, or 13 percent, of
Alaskans are without a high school diplomas and that one-third of
GED graduates have advanced to college. He spoke of the quality of
life of high school graduates and the cost savings measure for the
State. He noted that funding has been increased for general
education.
Co-Chair Green maintained her objection. She suggested that several
alternatives exist to allow adults to receive a completed
education. She predicted this reduction in funding would not
significantly decrease services.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
DLWD #4: This amendment inserts an Employment Security BRU,
transfers the Kotzebue Technical Center Operations Grant component
from the Business Partnership BRU and adds $300,000 Science &
Technology Endowment Fund funds.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson pointed out the proposed budget reduces funding to
the Alaska Technical Center by approximately 27 percent and would
significantly impact the Center's ability to operate vocational and
technical training programs. He listed the core training programs
as including building industrial technology, computer and
information technology, health occupation, industrial mining
technology, and office occupation programs. He stressed that a
reduction of "this magnitude" would require the Center to eliminate
personnel. He informed that the Kotzebue has been selected as one
community for creation and expansion of the nursing training center
and would utilize the Center to provide this training. He warned
that without this funding, the Center would be unable to provide
such training.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green.
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Revenue
REV #1: This amendment inserts an Alaska Gas Authority BRU and
Alaska Natural Gas Development Authority component and appropriates
$150,000 general funds. Accompanying explanatory language reads,
"Add initial funding for operation of the Authority."
Senator Taylor moved for adoption and reminded that the Authority
was created through the ballot initiative process and approved by
voters during the previous general election. He informed the intent
of the Authority is to facilitate the construction of a natural
gasoline pipeline from the North Slope to Valdez. He understood
other appropriation legislation is pending, but surmised this
amendment would ensure funding to allow the "initial plan" for the
Authority.
Senator Hoffman moved to amend the amendment to increase the
appropriation to $1,150,000 general funds.
Co-Chair Green objected.
Senator Hoffman pointed out the voters approved the ballot
initiative by 62 percent. He stated the Authority would utilize the
funds to "develop plans and issue bonds to bring to market at an
estimated cost of $12.4 million." He asserted that all potential
revenue sources must be investigated.
Senator Bunde offered a friendly amendment to change the funding
source to earnings of the permanent fund.
Senator Hoffman did not oppose the friendly amendment.
Co-Chair Green objected to the motion.
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be amended.
There was no objection to the adoption of the amendment and the
amendment was ADOPTED.
Department of Transportation and Public Facilities
DOT #1: This amendment deletes $60,300 general funds from the
Highways and Aviation BRU, Central Regional Highways and Aviation
component on page 32, lines 17 and 18 and adds $60,300 general
funds to the Traffic Signal Management BRU and component on page
31, line 33. Accompanying explanatory language reads as follows.
Provide services for traffic signal system timing and
maintenance of the Traffic Signal System. Respond to timing
requests from the public and public safety agencies, and
review/inspect intersection designs and construction. Supports
operation and maintenance responsibilities at minimum level
under the State of Alaska TORA agreement.
Senator Bunde moved for adoption and explained this amendment
represents a cooperative agreement between the Department of
Transportation and Public Facilities, the Department of Public
Safety and the Municipality of Anchorage. He stated that the
municipal government maintains a number of traffic signals located
within Anchorage and this amendment would provide reimbursement for
incurred expenses.
The amendment was ADOPTED without objection.
DOT #2: This amendment deletes $123,100 general funds from the
Administration and Support BRU, Commissioner's Office component on
page 30, line 8 and adds $123,100 general funds to the Marine
Highway System BRU, Marine Vessel Operations component on page 33,
line 16. Accompanying explanatory language reads as follows.
This amendment restores funding transferred out of marine
highway operations to the Commissioner's Office to increase
overhead with the creation of a third deputy commissioner. At
the end of last year the Department was operating with only
one deputy commissioner.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Taylor, Senator Bunde, Senator B. Stevens, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
DOT #3: This amendment adds $50,000 general funds to the
Administration and Support BRU, Statewide Administrative Services
component on page 30, lines 16 and 17. Accompanying explanatory
language reads as follows.
Restores an accounting position to the Capital Improvements
Project Section. Without this position, the production phase
for final review and closure of all federally funded projects
will be delayed by approximately 35%. This slow-down will
occur in production of the third party billing system
invoicing process and transmission of weekly and biweekly
billings of all capital improvement projects. The billing
process is the sole form of obtaining reimbursement from the
Federal Highway Administration and the Federal Aviation
Administration.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statement into the record.
Senator Hoffman added that adoption of this amendment would be a
"worthy investment" that "makes very good business sense."
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
University of Alaska
UNIV #1: This amendment adds $4,448,200 general funds to the
University of Alaska BRU, Budget Reductions/Additions Systemwide on
page 33, lines 27 and 28. Accompanying explanatory language reads,
"Add general funds to the University to maintain a solid
foundation."
Senator B. Stevens moved for adoption
Senator Taylor objected for the purpose of discussion.
Senator B. Stevens explained this amendment would increase the
general fund appropriation by $4,448,200 to the University of
Alaska.
Senator Hoffman moved to amend the amendment to add an additional
$3.4 million general funds, saying this would actually increase the
total general fund appropriation to the amount requested by the
Governor. He spoke of the implications of not fully funding the
University.
Co-Chair Green objected.
Senator B. Stevens clarified the original amendment would increase
general funding by $6.9 million over the amount approved by the
House of Representatives.
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be amended.
Senator Taylor commented that the Committee has "achieved some
level of compromise" in increasing funding for the University.
However, he contended that all but three other State agencies would
receive budget reductions, including funding for K-12 education. He
remarked, "Understanding that we should never destroy the possible
by trying to achieve the perfect, I'm willing to vote and allow
that to go forward in the hopes that the conference committee will
yet resolve that number" in either increasing funding for K-12
education or reducing the University appropriation to provide
equity.
Senator Taylor removed his objection to the adoption of the
amendment.
The amendment was ADOPTED without objection.
UNIV #2: This amendment deletes subsection (c) from Section 32.
STATE DEBT AND OTHER OBLIGATIONS., on page 60, lines 22 and 23. The
deleted language reads as follows.
(c) The sum of $6,995,900 is appropriated from the
general fund to the Alaska Debt Retirement Fund (AS
37.15.011).
This amendment also adds $7,852,200 general funds to the University
of Alaska BRU, Statewide Budget Reductions/Additions Systemwide on
page 33, lines 27 and 28. Accompanying explanatory language reads
as follows.
Governor Murkowski's budget request added $10,305,000 general
fund dollars to the University of Alaska's budget. The Senate
budget currently underfunds this request by $7,852,200.
This amendment recognizes the savings in the Alaska Debt
Retirement Fund and uses $6,995,900 to partially fund the
governor's FY 04 request for the University of Alaska. An
additional $856,300 from the general fund totals $7,852,200
and, therefore, providing the necessary funds to total the
governor's request at $10,305,000.
This amendment was NOT OFFERED.
UNIV #3: This amendment inserts and "University of Anchorage Center
for Information Technology" component in the University of Alaska
BRU and appropriates adds $200,000 Science & Technology Endowment
Fund funds. Accompanying explanatory language reads as follows.
This funding restores this program at UAA. The Center was
created in 1991 to create an infrastructure for exchange of
information on technology developments. This appropriation is
the minimum required to place staff, develop curriculum, and
create new programs for staff development.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
UNIV #4: This amendment deletes subsection (c) from Section 32.
STATE DEBT AND OTHER OBLIGATIONS., on page 60, lines 22 and 23. The
deleted language reads as follows.
(c) The sum of $6,995,900 is appropriated from the
general fund to the Alaska Debt Retirement Fund (AS
37.15.011).
This amendment also adds $6,995,900 general funds to the University
of Alaska BRU, Statewide Budget Reductions/Additions Systemwide on
page 33, lines 27 and 28. Accompanying explanatory language reads
as follows.
This amendment recognizes the savings in the Alaska Debt
Retirement Fund and uses $6,995,900 to partially fund the
governor's FY 04 request for the University of Alaska.
This amendment was NOT OFFERED.
UNIV #5: This amendment deletes $7,852,200 general funds and
inserts $7,852,200 Receipt Supported Services funds to the
University of Alaska BRU. Accompanying explanatory language reads
as follows.
This amendment fully funds the governor's request for the
university. This cut represents $7.9 million less the amount
needed to meet the minimum FY 02 fixed costs. These fixed
costs include negotiated pay increases and other costs that
are not optional and costs that must be covered to avoid cuts
in service that damage Alaskans' educational opportunities.
The University of Alaska has been revitalized in recent years,
and is meeting the needs of Alaska's growing industries with
new partnerships and expanded educational offerings. State
funds spent on the university leverage a tremendous number of
federal, tuition, and foundation dollars, and make the UA
system an economic engine in itself, as well as one of the
driving forces in diversifying Alaska's economy. The
Governor's proposed increase for the University also
recognized that the University is essential to the economic
growth and the vitality of the state.
In the last four years UA's state appropriations approved were
for new and expanded program activities, while also covering
fixed costs increases to maintain existing programs. If the
proposed cut is upheld, it will wipe out all of the program
advances made over the past four years, such as in nursing,
allied health, logistics, information technology, engineering,
workforce education and teacher preparation.
This amendment was NOT OFFERED.
UNIV #6: This amendment adds $2,547,700 general funds to the
University of Alaska BRU, Statewide Budget Reductions/Additions -
Systemwide component on page 33, lines 27 and 28. Accompanying
explanatory language reads as follows.
This amendment adds an additional funding $2,547,700 to the
University of Alaska's budget. This amount along with the
previously adopted $4,448,200 totals $6,995,900.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected.
Co-Chair Wilken referenced Senator Taylor's comments to UNIV #1
regarding increased funding for the University despite budget
reductions made elsewhere. Co-Chair Wilken warned the Committee
could "fall into a trap when we compare agencies, one against the
other." He acknowledged that although the University mission is
"aligned" with K-12 education, the missions differ significantly.
He reminded that the University has "promised" economic development
within the University and has "delivered economic development". He
pointed out that the Legislature has appropriated over $40 million
additional general funds over the past four years, with which the
University has utilized to leverage over $200 million.
Co-Chair Wilken appreciated Senator B. Stevens's efforts to
increase funding through UNIV #1. Co-Chair Wilken reminded that the
University Board of Regents requested $13.9 million and the
Governor reduced the amount to $10.3 million to "highlight"
economic development activities the University could bring to the
State. However, he noted that the House of Representatives
"unwisely" further reduced the amount, which Senator B. Stevens
partially restored in the budget subcommittee and with the
sponsorship of UNIV #1.
Co-Chair Wilken stated the adoption of UNIV #6 would bring the
total general fund appropriation to the University to $9.5 million.
He characterized this funding amount as "a balance understanding
the budget climate we're in" that also "recognizes the economic
development… obligations the University has, both in contracts and
… programs that are indeed benefiting the people of Alaska."
A roll call was taken on the motion.
IN FAVOR: Senator Bunde, Senator Hoffman, Senator Olson, and Co-
Chair Wilken
OPPOSED: Senator Taylor, Senator B. Stevens and Co-Chair Green
The motion PASSED (4-3)
The amendment was ADOPTED.
AT EASE 9:30 PM / 9:32 PM
Language Section (continued)
LANG #6: This amendment deletes Section 24 on page 56, line 26
through page 57, line 29, which reads as follows.
Sec. 24. NATIONAL PETROLEUM RESERVE - ALASKA. (a) After the
Department of Community and Economic Development enters into
agreements for capital project grants under AS 37.05.530 (c)
from funds dispersed to the state by the federal government
under 42 U.S.C. 6508 (P.L. 96-514) between September 1, 2002,
and August 31, 2003, the amount equal to 25 percent of the
funds dispersed to the state by the federal government under
42 U.S.C. 6508 between September 1, 2002, and August 31, 2003,
is appropriated from the National Petroleum Reserve - Alaska
special revenue fund (AS 37.05.530) to the principal of the
Alaska permanent fund. If the amount remaining in the National
Petroleum Reserve - Alaska special revenue fund (AS 37.05.530)
after the capital project grants authorized under AS 37.05.530
(c) are made is less than 25 percent of the funds dispersed to
the state by the federal government under 42 U.S.C. 6508
between September 1, 2002, and August 31, 2003, then the
amount appropriated by this subsection from the National
Petroleum Reserve - Alaska special revenue fund to the
principal of the Alaska permanent fund is the balance of the
funds dispersed to the state under 42 U.S.C. 6508 between
September 1, 2002, and August 31, 2003.
(b) After the appropriation made by (a) of this section
and after the capital project grants authorized under AS
37.05.530(c) are made, the amount equal to 0.5 percent of the
amount remaining after the capital project grants authorized
under AS 37.05.530(c) are made from funds dispersed to the
state by the federal government under 42 U.S.C. 6508 between
September 1, 2002, and August 31, 2003, is appropriated from
the National Petroleum Reserve - Alaska special revenue fund
(AS 37.05.530) to the public school trust fund (AS 37.14.110).
If the amount remaining in the National Petroleum Reserve -
Alaska special revenue fund (AS 37.05.530) after the
appropriation made by (a) of this section and after the
capital project grants authorized under AS 37.05.530(c) are
made is less than 0.5 percent of the amount remaining after
the capital project grants authorized under AS 37.05.530(c)
are made from funds dispersed to the state by the federal
government under 42 U.S.C. 6508 between September 1, 2002, and
August 31, 2003, then the amount appropriated by this
subsection to the public school trust fund (AS 37.14.110) is
the balance remaining in the National Petroleum Reserve -
Alaska special revenue fund (AS 37.05.530).
(c) After the appropriations made by (a) and (b) of this
section and after the capital project grants authorized under
AS 37.05.530(c) are made, the amount remaining from funds
dispersed to the state by the federal government under 42
U.S.C. 6508 between September 1, 2002, and August 31, 2003, is
appropriated from the National Petroleum Reserve - Alaska
special revenue fund (AS 37.05.530) to the power cost
equalization and rural electric capitalization fund (AS
42.45.100).
This amendment also deletes Section 27 on page 58, lines 17 - 19,
which reads as follows.
Sec. 27. POWER COST EQUALIZATION. The sum of $12,524,400
is appropriated from the power cost equalization endowment
fund (AS 42.45.070) to the power cost equalization and rural
electric capitalization fund (AS 42.45.100).
This amendment also inserts a new bill section on page 58,
following line 16 to read as follows.
Sec. 26. POWER COST EQUALIZATION. The amount necessary to
provide the sum appropriated to the power cost equalization
and rural electric capitalization fund (AS 42.45.100) by sec.
1 of this Act, after other appropriations made to that fund
during the fiscal year ending June 30, 2004, are taken into
account, is appropriated from the power cost equalization
endowment fund (AS 42.45.070) to the power cost equalization
and rural electric capitalization fund. However, in accordance
with AS 42.45.085(a), the amount appropriated by this section
may not exceed seven percent of the market value of the power
cost equalization endowment fund, determined by the
commissioner of revenue to be $12,620,334.26, minus amounts
appropriated during the fiscal year ending June 30, 2004, for
reimbursement of the costs set out in AS 42.45.085(a)(2) and
(3).
This amendment was NOT OFFERED.
LANG #7: This amendment inserts a new subsection (b) in Section 27.
POWER COST EQUALIZATION., on page 58, following line 19 to read as
follows.
(b) The sum of $2,590,000 is appropriated from the
general fund to the power cost equalization and rural electric
capitalization fund (AS 42.45.100).
This amendment was NOT OFFERED.
LANG #8: This amendment increases the appropriation amounts in
subsections (c) and (f) of Sec. 32. STATE DEBT AND OTHER
OBLIGATIONS., on page 61, lines 22 and 23, and page 61, lines 2 -
6. The amended language reads as follows.
(c) The sum of $13,298,300 is appropriated from the
general fund to the Alaska debt retirement fund (AS
37.15.011).
…
(f) The sum of $66,024,100 is appropriated to the
Department of Education and Early Development for state aid
for costs of school construction under AS 14.11.100 form the
following sources:
Alaska debt retirement fund (AS 37.15.011) $37,424,100
School fund (AS 43.50.140) 28,600,000
Accompanying explanatory language reads as follows.
This amendment adds $6,602,400 general funds to the debt
retirement fund. The additional funds are appropriated to the
Department of Education and Early Development for school debt
reimbursement.
The amendment funds the school debt reimbursement program at
the 70% level approved by the legislature last year. The
Governor's bill and this committee substitute reduce the
funding level by 10%, so that state reimbursement of municipal
school debt is 63% of municipal costs.
This amendment was NOT OFFERED.
LANG #9: This amendment deletes the language of Section 4 on page
4, lines 1 - 3, which reads as follows.
Sec. 4. LEGISLATIVE INTENT. It is the intent of the
legislature that the amounts appropriated by this Act are the
full amounts that will be appropriated for those purposes for
the fiscal year ending June 30, 2004.
Accompanying explanatory language reads as follows.
Section 4 states the amounts appropriated in this Act are the
full amounts that will be appropriated, we know that in many
cases the amount allocated is not the full amount, example:
court reunification and rising fuel costs. Also what happens
if one of the Governor's pieces of legislation does not pass?
This language is not necessary.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman overviewed the explanatory statement.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Taylor, Senator Bunde, Senator B. Stevens, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
LANG #10: This amendment deletes the language of Section 5 on page
49, lines 4-6, which reads as follows.
Sec. 5. COSTS OF JOB RECLASSIFICATIONS. The money
appropriated in this Act includes the amount necessary to pay
the costs of personal services due to reclassification of job
classes during the fiscal year ending June 30, 2004.
Accompanying explanatory language reads as follows.
With a new administration in place and so many transfers
between departments some reclassifications will be made with
these transfers. By deleting this section if some unexpected
reclassifications do occur the department can come forward
with a supplemental request.
As written the language states that money appropriated in this
bill includes the amount necessary to pay for the cost of job
reclassification. If these budgets are as tight as reported
there isn't money there to pay for reclassification and there
will be no supplemental funding.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
LANG #11: This amendment increases the appropriation for payment of
debt service on outstanding debt authorized by ch. 115, ALA 2002 to
the Department of Community and Economic Development, Alaska Energy
Authority, for the Cordova Electric Cooperative (Power Creek
Hydropower Station) from $959,376 to $2,837,000 in subsection
(s)(7) of Section 32. STATE DEBT AND OTHER OBLIGATIONS. [funding
source of the increase is not specified, although initial
appropriation is general funds.]
Accompanying explanatory language reads as follows.
Last year, the legislature passed HB 528 that authorized
funding statewide energy projects. $12 million was included to
reimburse Cordova Electric Cooperative (CEC) for debt payments
on their principal for the Power Creek Hydroelectric project,
the main power source for Cordova. This allocation was to
reimburse for expenses paid by CEC beginning in 1999.
$959,376 is included in HB 75, which equals the debt payment
for July 1, 2002-June 30, 2003 only. An additional amount of
$1,877,546 (for a total of $2,837 million) needs to be added
to also cover the debt reimbursement payments for CEC from
1999-2001.
Cordova is burdened with some of the highest electric rates in
Prince William Sound, currently @23.9 cents/kwh. These high
rates have negatively impacted Cordova's fragile economy,
particularly the fish processing industry, which, in
combination with commercial fishing, acts as an economic
engine in that area.
The reimbursement of CEC's debt reduction is the number one
priority of the City of Cordova. In addition, Cordova is one
of the largest recipients in the Power Cost Equalization (PCE)
program. When final reimbursement payments are made to CEC,
the City will be able to withdraw from this valuable state
program, allowing an average of $600,000 yearly to be used for
another community.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statement into the record.
Senator Taylor asked if this item would more appropriately be
contained in the FY 04 Capital Budget rather than the operating
budget.
Co-Chair Green agreed.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Corrections
CORR #1: This amendment deletes $44,700 general funds from the
Administration & Operations BRU, Office of the Commissioner
component on page 7, line 23. This amendment also adds $44,700
general funds for the Administration & Operations BRU, Community
Jails component on page 8, line 28. Accompanying explanatory
language reads as follows.
Since January 1995, community jails have only received an
increase of $424,400 despite an approximate 10.5% consumer
price increase during this period (1995-2000). During this
same time period prisoner populations have increased with many
jails at bed capacity. At the same time all other costs for
running and maintaining a jail have increased, especially in
rural Alaska. The 15 community jails are located in Bristol
Bay Borough, Cordova, Craig, Dillingham, Haines, Homer,
Kodiak, Kotzebue, North Slope Borough, Petersburg, Seward,
Sitka, Unalaska, Valdez and Wrangell. By transferring funds
from the Commissioner's Office, added this year to grow
departmental overhead, we can maintain the existing funding
level for community jails.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson read the explanatory statement into the record.
Co-Chair Green informed this item is funded at the amount requested
by the Governor, and that the budget subcommittee was assured the
program could adequately operate with the given appropriation.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Education and Early Development (continued)
DEED #7: This amendment adds $4,338,900 general funds for the
Alyeska Central School BRU and component on page 10, line 28.
Accompanying explanatory language reads as follows.
This amendment maintains funding for Alyeska Central School,
but eliminates the $1.17 million in formula funding provided
to the ACS summer school. ACS has served Alaska students since
the 1930s and is the only accredited correspondence program in
the State, and more importantly is the only correspondence
program with a curriculum designed and written by Alaskans,
tied directly to the Alaska Standards tested by the High
School Graduation Qualifying Examination.
By restoring funding for ACS, the State saves the increased
costs that would otherwise have been incurred in FY 04 when
some ACS students opted for higher cost bricks-and-mortar
schools. The net savings to the formula will likely be
somewhat less than the $1.17 million shown, since eliminating
the summer scull program will cause some students to need an
extra year of school.
ACS provides an educational choice to families that no
district-run correspondence program provides. Its teachers
also satisfy the "highly qualified" requirements of the
federal No Child Left Behind Act, which will allow ACS to
partner with small and single-site school districts and reduce
the accommodations Alaska must request from the federal
government.
This amendment was NOT OFFERED.
DEED #8: This amendment adds $10,745,600 general funds for the
Pupil Transportation BRU and component on page 10, line 9.
Accompanying explanatory language reads as follows.
The proposed level of pupil transportation funding is 80% of
the FY 03 level. This amendment brings the pupil
transportation BRU to the level needed to get Alaska children
safely to and from school without short-sheeting classroom
funding.
In recent years Alaska school districts have taken major steps
to increase the efficiency of pupil transportation. All school
bus contracts have been brought on the same renewal schedule,
which brought significant bidding efficiencies and savings to
the system. Rejecting this amendment ignores districts'
efforts to realize savings and efficiencies, applying the same
hefty cut to all. Before changing the basis for reimbursement
under this program the legislature ought to afford school
districts the opportunity to adjust transportation contracts
and budgets accordingly by at least providing a transition
year.
This amendment was NOT OFFERED.
DEED #9: This amendment adds $234,500 general funds to the Alaska
Library and Museums BRU, Library Operations component on page 10,
line 28. Accompanying explanatory language reads as follows.
This funding restores the significant reduction in personal
services to a very small component within this agency. If this
reduction remains in place it will impact the State Library's
ability to provide quality delivery of services at a time when
there is increasing demand for accountability through missions
and measures. The state Libraries needs the human resources to
make it happen
This amendment also inserts a new "Library Operations Sled"
component in the Alaska Library and Museums BRU on page 10, line 27
and appropriates $30,000 general funds. Accompanying explanatory
language reads as follows.
Restores basic funding. $30,000 is the total funding for SLED.
Without that $30,000 the University and the State Library will
have to seek alternative funding to keep SLED alive.
Sled:
Is an information delivery service
Is a public service providing easy and equitable
access to electronic information
Is a catalyst for making information about Alaska
available online
Supports Alaska's right to information
And offers Internet resource access
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman read the explanatory statements into the record.
Senator Taylor moved to divide the question. The $234,500
appropriation to the Library Operations component became DEED #9A
and the $30,000 appropriation to the Library Operations Sled
component became DEED #9B.
Senator Taylor noted that $2,547,000 additional funds were
appropriated to the University in a previous amendment and surmised
the University "could afford to pay for additional library
services."
Co-Chair Green maintained her objection to both portions of the
amendment.
A roll call was taken on the motion to adopt DEED #9A.
IN FAVOR: Senator Taylor, Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-5)
The A division of the amendment FAILED to be adopted.
A roll call was taken on the motion to adopt DEED #9B.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The B division of the amendment FAILED to be adopted.
DEED #10: This amendment adds a Community Schools component and
$500,000 general fund appropriation to the K-12 Support BRU on page
9. Accompanying explanatory language reads as follows.
This amendment restores the seed money the State provides for
community schools programs statewide. With the small grants
provided by the State, school districts leverage tremendous
amounts of community donations, in both dollars and hours of
volunteer time. These donations are the basis for Alaska's
extremely successful community schools program.
Community schools provide enhances educational opportunities
to youth and lifelong learning opportunities to adults. They
also ensure maximum utilization of the school physical plant,
deriving increased return from these public investments, and
increasing community involvement in our children's education.
This amendment was NOT OFFERED.
Department of Health and Social Services (continued)
H&SS #10: This amendment adds $47,519,300 general funds to the
Longevity Bonus Grants BRU and component on page 15, line 16.
Accompanying explanatory language reads as follows.
This amendment restores the Longevity Bonus Program.
No new seniors have joined the Longevity Bonus Program since
1997 and the cost drops significantly each year. We made a
commitment to Alaska's seniors to phase out the program,
rather than eliminate it, and many people rely upon it in
their retirement. Many seniors would not be able to continue
to live in Alaska without the Longevity Bonus, and if we lose
them, we lose their bonus dollars, Social Security income,
retirement checks, investment earnings - money that flows into
local economies.
Income aside, the State made a promise to its senior citizens
that we should not break. This budget amendment restores
funding for the Longevity Bonus Grants.
This amendment was NOT OFFERED.
H&SS #11: This amendment adds $2,204,400 Tobacco
Education/Cessation funds to the State Health Services BRU, Tobacco
Prevention and Control component on page 20, lines 15 and 16.
Accompanying explanatory language reads as follows.
This amendment restores this component to the Governor's
proposal of up to 20% of tobacco settlement money received by
the State. This level of spending is in accordance with intent
language passed by the Legislature.
With funding provided in FY 03, the Tobacco Prevention and
Control Program successfully developed and implemented proven
cost-effective tobacco control measures with partners and
community-based organizations statewide. Sustained funding is
important to enable these new programs to reach their full
potential.
The Tobacco Prevention and Control Program identified a
critical need to develop community-based programs to reach the
State's populations with disproportionately high use of
tobacco. Alaska Native and rural communities are at especially
high risk of tobacco related disease. Cuts to the Program's
budget would force the suspension of at least 50 percent of
grants specifically earmarked for Alaska Native communities,
rural communities and minority groups that have not previously
been reached with prevention programs.
This amendment was NOT OFFERED.
H&SS #12: This amendment inserts a "Behavioral Health Grant
Substance Abuse Treatment for Rural Juveniles and Prevention &
Treatment for Family Preservation" component in the Behavioral
Health BRU on page 15, line 4 and appropriates $3,500,000 Alcohol
Funds. Accompanying explanatory language reads as follows.
This amendment restores funding for Substance Abuse Treatment
for Rural Juveniles and Prevention & Treatment for Family
Preservation at the Governor's proposal. The demand for
substance abuse treatment for adolescents exceeds the existing
capacity. Research has shown that when young people are
screened and treated for alcohol and substance abuse early,
they have a significantly increased likelihood of achieving
and maintaining a clean and sober life.
Many individuals, including a significant number of women, are
waiting for treatment as a condition for reunification with
their children. In 2002, 57% of women waiting for treatment
services had children in out-of-home placement. Limiting
treatment availability for people with children in out-of-home
placement has a high cost to the family, the community, and
the state.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson read the explanatory statement into the record.
SFC 03 # 64, Side A
Senator Olson continued.
Co-Chair Green corrected that this item is an expansion, rather
than a continuation of services.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Taylor, Senator Bunde, Senator B. Stevens, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
H&SS #13: This amendment was divided and renamed CORR #2 and CORR
#3 listed below.
Department of Corrections (continued)
CORR #2: This amendment inserts a new "Behavioral Health Grants
Community Re-entry Outpatient Services" component in the Behavioral
Health BRU in the Department of Health and Social Services, on page
15, line 4 and appropriates $1,225,000 Alcohol Funds. Accompanying
explanatory language reads as follows.
This amendment would add outpatient treatment services for
inmate re-entry into their home community under Corrections
community supervision. Current community treatment capacity is
grossly insufficient and a large percentage of criminal
offenders are returning to their home communities unable to
enter the treatment they are court ordered to do.
According to the Department of Corrections, 7,682 offenders
(2003) are court ordered, parole board ordered, or otherwise
recommended for treatment. To date, 700 offenders are involved
in treatment in the community, 1,050 have completed community
treatment over the course of their supervision. 105 inmates
are on the waitlists for ISAT [Inmate Substance Abuse
Treatment] treatment statewide and number for those not served
or on a waitlist is unknown. The numbers reflected above would
indicate thousands of offenders going without treatment.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson read the explanatory statements of both this
amendment and CORR #2 into the record.
Senator Olson recalled the intent of the increased alcohol tax
adopted the previous legislation session was to fund substance
abuse treatment services. He cited a study "Economic Costs of
Alcohol and Other Drug Abuse in Alaska" issued by the McDowell
Group, which found that substance abuse is involved in 85 percent
of all incarcerations in Alaska and estimates the cost of substance
abuse to be $614 million annually, with 45 percent incurred as a
direct cost to the State. He attributed the remaining 55 percent of
the cost of abuse to "negative impacts on Alaska's economy due to
the lack of productivity and traffic accidents."
Senator Olson stated that the majority of the revenue generated
from the increased alcohol tax has been appropriated to "supplant
general fund dollars and not to increase support for combating
alcohol and drug abuse." He expressed a moral obligation to "use
this money in the way it was intended."
Senator Olson quoted former Representative Lisa Murkowski in
speaking to the legislation she sponsored to increase the tax, as
an "important part of the Republican Majority's efforts to address
the problem of alcohol and alcohol abuse in Alaska and help provide
revenue needed for expanded treatments."
Co-Chair Green pointed out the Department operates community-based
programs for inmate reentry to society and no that funding
reductions have been made to those programs.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
AT EASE 9:48 AM / 9:49 AM
CORR #3: This amendment inserts a "Behavioral Health Grants Inmate
Substance Abuse Treatment (ISAT) Programs" component in the
Behavioral Health BRU in the Department of Health and Social
Services on page 15, line 4 and adds $1,163,200 Alcohol Funds.
Accompanying explanatory language reads as follows.
This amendment restores the funding cut from the Department of
Corrections for Inmate Substance Abuse Treatment programs. In
2001, 79% of Alaska's newly incarcerated inmates were
activities abusing or dependent on a substance in the year on
incarceration. The availability of alcohol treatment, both in
the prison system and in the community for adult offenders,
already does not match the current need where a large number
of offenders are left on a waiting list or unserved.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson surmised that with increased funding for substance
abuse treatment programs would result in a "strong resurgence of
people that would be able to stay out of prison and not become
incarcerated." He spoke to the significant prison population.
Co-Chair Green commented, "The Department is focusing on its core
mission. These services listed are services that can be obtained
once a person reenters society or even as a condition of their
parole."
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Health and Social Services (continued)
H&SS #14: This amendment adds $326,000 Alcohol Fund to the
Administrative Services BRU, Office of Program Review component on
page 20, line 3. Accompanying explanatory language reads as
follows.
This amendment funds phase one of a two-year project designed
to develop a research project that will provide the state and
the public with information on the effectiveness and outcomes
of chemical dependency treatment services in the state. This
project is an evaluation of treatment services in Alaska.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Taylor, Senator Bunde, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Education and Early Development (continued)
DEED #11: This amendment changes the appropriation amounts
contained in DEED #1 adopted earlier in the hearing, which deleted
the language in Section 14 and inserted a new bill section on page
52, following line 27. The amended language incorporating both
amendments reads as follows.
Sec. 14. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT.
(a) Contingent upon the passage by the Twenty-Third Alaska
State Legislature during 2003 and the enactment into law of a
bill increasing the base student allocation under AS
14.17.470, the sum of $60,569,900 is appropriated to the
Department of Education and Early Development for the fiscal
year ending June 30, 2004, for additional funding of state aid
to public schools (commonly referred to as the foundation
program) to fund the increase in the base student allocation
from the following sources in the amounts described:
(1) the unexpended and unobligated general fund
balance of that portion of the appropriation made by sec. 1,
ch. 94, SLA 2002, page 11, line 17, that is allocated on line
18 (foundation program - $677,319,400);
(2) the general fund in the amount equal to the
difference between $32,150,600 and the amount appropriated
under (1) of this subsection.
(b) If a bill is passed by the Twenty-Third Alaska State
Legislature during 2003 and is enacted into law increasing the
base student allocation under AS14.17.470 to an amount less
than $4,270, then that portion of the appropriation made by
(a) of this section that is necessary to fund the increase in
the base student allocation is appropriated to the Department
of Education and Early Development for the fiscal year ending
June 30, 2004, for additional funding of state aid to public
schools (commonly referred to as the foundation program) to
fund the increase in the base student allocation and the
remaining balance of the appropriation of $60,569,900 made by
(a) of this section is reappropriated to the Department of
Education and Early Development for the fiscal year ending
June 30, 2004, for payment as learning opportunity grants to
school districts based on the school district's adjusted
average daily membership to pay for instructional programs
intended to improve student performance. Learning opportunity
grants provide the opportunity to move schools toward
standards-based education, including vocational education
programs. The funding is available to pay for costs associated
with improving student performance by developing standards-
based programs, including implementation of standards,
aligning student assessment to standards, staff development,
adopting instructional models based on basic skills,
performance tasks, and projects, and adopting a standards-
based reporting system. Accomplishing this goal may include
acquisition of textbooks and other educational materials.
(c) If a bill is not passed by the Twenty-Third Alaska
State Legislature during 2003 and enacted into law to increase
the base student allocation under AS 14.17.470, then the
unexpended and unobligated general fund balance of that
portion of the appropriation made by sec. 1, ch. 94 SLA 2002,
page 11, line 17, that is allocated on line 18 (foundation
program - $677,319,400) is reappropriated to the Department of
Education and Early Development for the fiscal year ending
June 30, 2004, for payment as learning opportunity grants to
school districts based on the school district's adjusted
average daily membership to pay for instructional programs
intended to improve student performance. Learning opportunity
grants provide the opportunity to move schools toward
standards-based education, including implementation of
standards, aligning student assessment to standards, staff
development, adopting instructional models based on basic
skills, performance tasks, and projects, and adopting a
standards-based reporting system. Accomplishing this goal may
include acquisition of textbooks and other educational
materials.
(d) If a bill is not passed by the Twenty-Third Alaska
State Legislature during 2003 and enacted into law to increase
the base student allocation under AS 14.17.470, then, an
amount equal to the difference between $60,569,900 and the
amount appropriated under (c) of this section is appropriated
from the general fund to the Department of Education and Early
Development for the fiscal year ending June 30, 2004, for
payment as learning opportunity grants to school districts
based on the school district's adjusted average daily
membership to pay for instructional programs intended to
improve student performance. Learning opportunity grants
provide the opportunity to move schools toward standards-based
education, including vocational education program. The funding
is available to pay for costs associated with improving
student performance by developing standards-based programs,
including implementation of standards, aligning student
assessment to standards, staff development, adopting
instructional models based on basic skills, performance tasks,
and projects and adopting a standards-based reporting system.
Accomplishing this goal may include acquisition of textbooks
and other educational materials.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman updated figures included in this amendment to align
with other adopted amendments.
Senator Hoffman stated this amendment would provide the funding
level endorsed by the National Education Association (NEA) - Alaska
and supported by several "businessmen". He indicated that the
foundation funding formula has not "kept pace" with inflation.
Senator Bunde moved to amend the amendment to change the funding
source of all foundation formula allocations to the earnings
reserve of the permanent fund.
Senator Taylor objected.
Senator Olson asked the reason for the amendment to the amendment.
Senator Bunde opined, "If you have that level of enthusiasm to
provide this funding, you should be able to walk the walk as well
as talk the talk."
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Hoffman and Senator Bunde
OPPOSED: Senator Olson, Senator B. Stevens, Senator Taylor, Co-
Chair Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be amended.
Senator Taylor reiterated his earlier comments regarding the
funding increase to the University of Alaska. He pointed out that
with adoption of this amendment, K-12 education would receive three
percent less of an increase than the increase appropriated to the
University.
Co-Chair Wilken stated that he would reluctantly oppose the
amendment, although he applauded the Committee's efforts to restore
funding for K-12 education given the current economic conditions of
the State.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Taylor and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Bunde, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
Co-Chair Green remarked that she was "Very concerned that we have
broke the bank here tonight and I regret that. We'll get our way
through it and figure out how we now go about funding this issue."
Senator Bunde interjected that he was "pleased" with Co-Chair
Green's comments, expressing concern that members of the public
would surmise, "this Committee has figured out how to spin flax
into gold." He cautioned against taking "any solace that the fiscal
gap has gotten any smaller or that the incredible economic
devastation that faces this State has gotten any further away with
anything we've done tonight."
Senator Taylor thanked co-chair for the "gentle and patient manner"
in conducting the operating budget hearings, as well as the quality
of the Senate Finance Committee staff. However, he indicated he was
"disappointed with the results."
Co-Chair Green stated the goal was to maintain a level of funding
less than the amount expended the previous fiscal year and also
allow flexibility to focus on priorities and ensure accountability.
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 10:04 PM
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