Legislature(2009 - 2010)
04/03/2009 01:04 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB88 | |
| SB161 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
April 3, 2009
1:04 p.m.
1:04:51 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 1:04 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Jay Livey, Staff, Senator Lyman Hoffman; JoEllen Hanrahan,
Senior Policy Analyst, Office of Budget and Management,
Office of the Governor; Larry Persily, Staff, House Finance
Committee; Guy Bell, Assistant Commissioner and Director,
Division of Administrative Services, Department of Labor and
Workforce Development; Eric Swanson, Director, Division of
Administrative Services, Department of Administration;
Amanda Ryder, Director, Division of Administrative Services,
Department of Commerce, Community and Economic Development;
Les Morse, Deputy Commissioner, Office of the Commissioner,
Department of Education and Early Development.
PRESENT VIA TELECONFERENCE
None.
SUMMARY
SB 88 POWER COST EQUALIZATION
SB 88 was REPORTED out of Committee with a "do
pass" recommendation and with attached new fiscal
note by the Department of Commerce, Community and
Economic Development.
SB 161 APPROPS: NON-TRANSPORTATION STIMULUS
SB 161 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 88
"An Act repealing certain provisions relating to
modifying the factors that apply to calculate the
amount of power cost equalization; providing for an
effective date by repealing the effective date of sec.
3, ch. 2, 4SSLA 2008; and providing for an effective
date."
1:05:40 PM
Co-Chair Stedman gave an overview of history of the
legislation.
JAY LIVEY, STAFF, SENATOR LYMAN HOFFMAN, provided an
overview of the provisions of the Power Cost Equalization
(PCE) program. The program makes electricity affordable to
Alaskans. The law stipulates that up to 500 kWh per month is
eligible for PCE assistance. The program is administered by
both the Alaska Energy Authority (AEA) and the Regulatory
Commission of Alaska (RCA); RCA takes information from
utilities companies and establishes the PCE rate according
to statute.
Mr. Livey explained that the bottom of the rate range is
established by averaging the cost of electricity in Juneau,
Anchorage, and Fairbanks; the top of the range is
established in statute. The assistance provided by PCE is 95
percent. During the special session, a law was passed that
established the top rate at $1.00 per kWh for one year. If
SB 88 did not pass, the one-year change would revert back to
the statutory top rate of $0.52 per kWh and lower rate of
12.3 cents/kWh. Citizens in villages would pay full cost for
kWh above $0.52. The current rate in many villages is
approximately $0.65 to $0.75. Therefore, PCE would make a
significant difference in energy bills for rural Alaskans.
If SB 88 passes, the upper rate of $1.00/kWh would become
permanent and provide more dependable assistance in rural
Alaska.
1:10:06 PM
Co-Chair Stedman noted that the program applied to the first
500 kWh, the usage amount for basic electric needs such as
lights and electric appliances, and only a little bit of
heating cost. Mr. Livey agreed.
Co-Chair Hoffman MOVED to report SB 88 out of Committee with
individual recommendations and the accompanying fiscal note.
SB 88 was REPORTED out of Committee with a "do pass"
recommendation and with attached new fiscal note by the
Department of Commerce, Community and Economic Development.
SENATE BILL NO. 161
"An Act making supplemental appropriations and capital
appropriations; amending appropriations; and providing
for an effective date."
Co-Chair Stedman introduced SB 161 as appropriating non-
transportation federal stimulus funds.
1:11:58 PM
JOELLEN HANRAHAN, SENIOR POLICY ANALYST, OFFICE OF BUDGET
AND MANAGEMENT, OFFICE OF THE GOVERNOR, noted that the
legislation included operating items that could increase the
operating budget.
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT (DLWD)
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT (DLWD), spoke to DLWD items in the legislation.
Item 19 Employment Training Services
These funds will be used to hire an additional 8 full
time, front-line service delivery staff to assist with
the increased volume of labor exchange customers and
unemployment insurance claimants. Six Employment
Security Specialist II positions (qualified in case
management) will provide job search assistance, labor
market information, case management, and other
reemployment services in the job centers. Two Community
Development Specialist positions will provide career
support and training services to unemployment insurance
claimants who need training to upgrade skills in order
to obtain employment. Funding will also be used to
support salary and benefit costs of existing staff,
travel for trainers, enhancements to the Alaska Labor
Exchange System (ALEXsys) and equipment replacement and
upgrade to support the federal Stimulus effort. These
efforts include continuing to provide front-line
employment and reemployment services, and career
support and training services, to an increased volume
of labor exchange customers. The outcome will be to
increase the number of customers receiving staff
assisted services by approximately 2,250.
$4,304,700
Mr. Bell added that the department intended to delete the
eight positions once the stimulus funds are depleted.
Co-Chair Stedman discussed the number of full-time state
employees and emphasized the importance of keeping track of
the new positions. Mr. Bell reiterated the department's
intent to delete the positions once the funds were gone. He
added that the department had gone from 241 to 220 full-time
positions in the division. The division, which is largely
federally funded, tends to shrink when the economy is good.
Service levels increase when more people are looking for
work.
1:16:37 PM
Co-Chair Stedman asked for more information regarding the
vacant positions. Mr. Bell stated that the department
preferred to reduce through attrition, though one year it
had to lay off 20 individuals in addition to attrition
reductions.
LARRY PERSILY, STAFF, HOUSE FINANCE COMMITTEE, stated that
the House Finance Committee (HFIN) had no problems with the
item. The committee considered the eight positions necessary
because of rising unemployment. He emphasized that the
positions were fully covered by the stimulus funds.
Mr. Bell continued with the next item.
Item 20 Employment Training Services
Funding will support additional training and employment
opportunities for unemployed low-income seniors.
Grantees will expand the number of Senior Community
Service Employment Program (SCSEP) participants
assigned to community service work, especially in those
growth industries emphasized in the Recovery Act (e.g.,
health care, child care, education, green jobs, energy
efficiency and environmental services) and in expanded
public service activities that utilize Recovery Act
funds. The funds will be used to provide high quality
job training, on-the-job training and employment
assistance to an estimated 80 low income older workers
and will assist employers that are faced with the
challenges of today's workplace.
$507,300
Mr. Bell detailed that the program was for individuals over
55 years of age who meet criteria such as being low-income.
The intention of the funding is that the workers would
transition from subsidized employment to non-subsidized
employment. The program requires a ten percent state match;
existing funds have been identified in the state training
and employment program for the match.
1:18:57 PM
Mr. Bell presented the next item.
Item 21 Unemployment Insurance
Funds will be used to upgrade computers on the
department's annual replacement schedule, UI tax and
benefit program enhancements, software and associated
data processing costs, and office equipment. The funds
will support a UI claim center phone call routing
software package along with licensing and installation
charges. They will also purchase a Tax auditing
software package; web based Quality Control audit
software; software to record and retrieve claim center
calls for staff performance review; software for
managing UI workflow and documentation processes; and
computer enhancements to existing Employment Security
Division on-line systems integration.
$1,115,700
Mr. Bell stated that the department intended to use the
funds for short-term improvements or improvements to
technology to increase the efficiency of unemployment
insurance (UI) services.
Co-Chair Stedman queried the item's relationship to SB 170,
another piece of legislation that modifies the UI statutes.
Mr. Bell answered that the funding in item 21 is not
connected with the funding that would be available if SB 170
were enacted.
Mr. Persily noted that HFIN had no problems with the item
and saw it as a good one-time use of the federal stimulus
money.
1:20:25 PM
Mr. Bell continued with the next item.
Item 22 Business Services
Additional funding will be utilized to increase
workforce development training opportunities in the
Workforce Investment Act programs for Adult $1,679.5,
Dislocated Worker $3,546.4, and Youth $3,936.1. It will
be used for personal services to support existing staff
engaged in Stimulus related activities, travel to
monitor grantees, commodities and contractual services
for normal office and staff related costs, and
contractual services and grant funds to provide
training. It is estimated to provide training
opportunities to an additional 729 Adult, 733
Dislocated Worker and 1,681 Youth participants.
$9,161,900
Mr. Bell explained that the basic purpose of the item is to
offer training opportunities to unemployed and under-
employed Alaskans and to enhance their skills and make them
more marketable. The youth funding in particular would focus
on summer job opportunities for low-income, at-risk youth;
adult funds would target low-income adults. The funding is
available for a period of two years; DLWD intends to offer
short-duration training that would make people more
employable after the program.
Co-Chair Stedman affirmed that the program would return to
existing levels after the two years. Mr. Bell noted that the
department receives influxes of federal programming for
different short-term purposes, such as when the falling
prices of salmon resulted in an increase of unemployed
fishermen. The department is accustomed to responding to
such circumstances and then returning to the status quo.
Mr. Persily reported that HFIN had spent a fair amount of
time discussing the youth summer employment program, and was
satisfied that the program would make good use of the one-
time boost in funding.
Mr. Bell continued with the next item.
Item 23 Client Services
Funding will provide vocational rehabilitation services
and grants to disabled individuals. These services
include assessment for determining eligibility for
services, job development, orientation and mobility
services, and supported employment services.
$1,800,000
Mr. Bell explained that the Division of Vocational
Rehabilitation will focus on enhancing job preparedness for
disabled individuals and would also improve technology used
by both staff and customers.
Mr. Persily noted that no state match was required with the
item.
1:24:07 PM
Mr. Bell discussed the next item.
Item 24 Employment and Training Services
The ARRA [American Recovery and Reinvestment Act]
reauthorized and permanently expanded the Trade
Adjustment Assistance program. Eligibility was expanded
to include workers in the services sector. The funds
will be utilized to support salary and benefit costs of
existing staff to provide employment and case
management services to increased participants to
include comprehensive and specialized assessment of
skill levels and service needs; development of an
individual employment plan; information on how to apply
for financial aid; information on training available in
local and regional areas; short-term prevocational
services; individual career counseling; employment
statistics information; and information relating to
local occupations that are in demand and the earnings
potential of such occupations. In addition, the Trade
Adjustment Assistance database will need to be upgraded
as mandated by new federal regulations. The estimated
outcome is 115 participants will utilize Trade
Adjustment Assistance program benefits such as job
search activities, relocation benefits, training,
health care tax credits and trade readjustment
allowance benefits.
$350,000
Mr. Bell pointed out that there was no state match
requirement. The program was expanded in the stimulus act to
provide assistance to people who are unemployed because of
competition created by foreign trade. The program was
expanded to include the service sector as well to allow
communities to apply for funding. He noted that the
department is waiting for more guidance related to the
program.
Mr. Persily reported that HFIN had no issues with the
appropriation and noted that the program was an existing
one.
1:25:44 PM
Mr. Bell turned to the department's last item.
Item 25 Independent Living Rehabilitation
These funds will be granted to the four Centers for
Independent Living (CILs) to support activities that
lead to competitive employment, independent living and
business ownership by Alaskans with disabilities.
Activities include providing home accessibility
modifications, adaptive equipment and/or services that
allow people to remain in their homes and communities.
Funds will also be used to expand independent living
services statewide, including rural and remote areas of
the state, by encouraging partnerships, collaborative
efforts, training and outreach.
The funds will also support operations of the State
Independent Living Council (SILC), examining the State
Plan for Independent Living resource plan to determine
if it needs to be updated.
$246,200
Mr. Bell detailed that the purpose of the program was to
assist individuals with severe disabilities to live
independently. The department administers grants with
multiple entities in Alaska that provide the services.
Mr. Persily reported that HFIN had learned a lot more about
labor programs.
Mr. Bell directed attention to another item not on the list
related to SB 170. He explained an ARRA provision that gives
incentive to modernize UI systems. States need to meet
various conditions to receive the funds. The total amount
available to Alaska would be $15.6 million. If the
conditions of the provision were met, the funds would be
deposited in the Alaska UI trust. The Department of Law has
determined that one statutory change would need to be made
to Alaska law in order to pursue the funding, to add an
alternate base period in qualifying individuals for UI.
Co-Chair Stedman asked if DLWD supported SB 170. Mr. Bell
stated that the department did not have a position on the
bill.
1:28:11 PM
Co-Chair Stedman asked if the department would have a
position. Mr. Bell replied that he would get back to the
committee.
Senator Huggins asked if SB 170 would cost employers more
money. Mr. Bell reported that the department had calculated
that there would be a relative increase to employers, but
the analysis was not complete.
Mr. Persily added that there would be a cost to employers of
approximately $10 per worker if the legislature were to take
the take the entire $15.6 million and appropriate it out
immediately to improvements in the unemployment and job
center programs. Rates would still go down, but would go
down less. Keeping the funds in the trust where they would
earn interest would negate the need for employer taxes to
unemployment. The HFIN CS to HB 199 (the equivalent to SB
170) did not make appropriations; with passage of the
legislation, the $15 million will flow directly into the
trust and start earning money. At a later date, the
legislature could appropriate out of the fund. In the
meantime, the fund would be protected.
1:30:41 PM
Ms. Hanrahan warned the committee that the operating budget
increase would be sizeable, at least $15 million, but that
services would be expanded. The number of people receiving
unemployment would be increased. She pointed out that the
services would end abruptly when the money is gone in two
years. Funding for the trade adjustment program is scheduled
to end in two years, although the law will not change.
Co-Chair Stedman concurred with concern about operating
budget increases.
1:32:34 PM
DEPARTMENT OF ADMINISTRATION
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, described the department's
first item.
Item 1 Premium Assistance for COBRA Benefits
This provides for a federally funded subsidy for COBRA
health insurance coverage to assistance eligible
individuals (AEIs). AEI is defined as an individual who
is involuntarily terminated from employment between
September 1, 2008 and December 31, 2009, who elects to
receive COBRA coverage and pays 35% of the premium due
as of March 1, 2009. The employer pays the remaining
65% of the premium and is reimbursed by the federal
government by withholding premiums paid from payroll
taxes reported on the quarterly 941 employer tax form.
$1,489,000
Mr. Swanson added that the program provides for a maximum
coverage period of nine months, has specific beginning and
ending dates, and would not continue after September 2010.
The $1,489,000 is the department's estimate of costs.
Co-Chair Stedman queried the mailing of information
regarding the item. Mr. Swanson was not aware of a mailing
and offered to get information.
Mr. Persily noted HFIN's understanding that under the
stimulus act, the federal government would subsidize 65
percent of the COBRA premium for laid-off workers, and that
the employer would initially pay the money to the insurance
company, but immediately take a credit against payroll
taxes. The net effect would be no cost to the state for the
program. In addition, the program is federally required.
Mr. Swanson reported that the department concurred with
HFIN's conclusions.
Mr. Swanson turned to item 2, $149,000 for the Crime Victim
Compensation Grant. The funding has been allocated to the
state through ARRA and offers compensation to victims and
survivors of criminal violence. He commented that the
funding cannot be used to supplant existing funding. The
grant is available for use until September 2012.
Mr. Persily reported that HFIN had no issue with the item.
1:35:55 PM
Senator Huggins confirmed that state money cannot be
supplanted with federal money. He emphasized the importance
that the ARRA funds are to stimulate and not supplant the
budget.
1:37:00 PM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
AMANDA RYDER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
turned attention to first item.
Item 3 Alaska State Community Services Commission
Funding will provide grants to existing AmeriCorps
grantees for performing volunteer programs.
$1,500,000
Ms. Ryder explained that the grants would be awarded to non-
profits to promote volunteer programs meeting critical
community needs in education, public safety, health, and the
environment. The grants could be used for activities like
tutoring, mentoring youth, and assisting crime victims.
Co-Chair Stedman asked what would happen after the $1.5
million was expended. Ms. Ryder assured the committee that
the non-profits are aware of the one-time nature of the
funding. She gave the example of a summer program that the
Sitka School District would provide.
Mr. Persily said HFIN had no issues with the item.
1:39:11 PM
Senator Huggins asked for the grant number for AmeriCorps
program. Ms. Ryder replied that the existing program is for
approximately $3 million in the operating budget; there are
five sub-grantees. Only two sub-grantees are applying for a
portion of the $1.5 million; the other three decided not to
apply. She noted that there may be other opportunities to
apply for the funds at a later date.
Senator Huggins expressed concern that people were not aware
of opportunities to apply. He questioned whether Alaskans
would benefit from the clearinghouse nature of the funding.
Ms. Ryder assured him that the five sub-grantees were very
knowledgeable of the process, but have chosen not to apply
for various reasons.
1:41:39 PM
Item 32 Community Development Block Grant Program
This program provides grants (not to exceed $850,000)
to municipalities for planning activities,
infrastructure projects, and economic development
activities which benefit low- to moderate-income
individuals.
$679,900
Ms. Ryder explained that the grants would be for
municipalities to create suitable and affordable housing as
well as economic opportunities for qualifying individuals.
The program is an existing capital program to which funds
were added.
Mr. Persily said that HFIN had no issues with the item.
Item 33 Community Services Block Grant Program
The CSBG program is designed to provide a range of
services which assist low-income people to attain
skills, knowledge and motivation necessary to achieve
self-sufficiency. The program may also provide low-
income people immediate life necessities such as food,
shelter, medicine, etc. As authorized by federal Public
Law 97-35, the U.S. Department of Health and Human
Services (H&HS) has designated 950 Community Action
Agencies (CAAs) -- all of whom may then receive federal
funding that passes through their appropriate state
agency. Within Alaska the federal H&HS has designated
only one CAA. That entity is the non-profit corporation
Rural Alaska Community Action Program, referred to as
RurAL CAP.
$3,960,000
Ms. Ryder detailed that the funds used by RurAL CAP would
provide energy burden reduction and Alaska foreclosure
prevention. The energy burden reduction would be for
weatherization in 25 rural communities that are not
currently receiving weatherization funds. The foreclosure
prevention funds will be used for financial counseling to
traditional homeowners in Anchorage, Palmer, Wasilla, Kenai,
Soldotna, and Homer. The goal is also to offer at-home
credit counseling services to more than 1,000 Alaskans.
Co-Chair Stedman asked about funds to Southeast Alaska. Ms.
Ryder replied that she would ask RurAL CAP how they planned
to use the funds.
Mr. Persily reported that HFIN had discussed the plan with
RurAL CAP and felt the money would be used well.
1:44:16 PM
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
LES MORSE, DEPUTY COMMISSIONER, OFFICE OF THE COMMISSIONER,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (DEED),
informed the committee that the first four items were
current formula fund programs. The stimulus law does not
change the programs, but provides additional funding.
Item 4 Student and School Achievement
ESEA [Elementary and Secondary Education Act] Title I-A
Grants to LEAs and School Improvement Grants will help
school districts mitigate the effect of the reduction
in local revenues and State support for education by
distributing funding to schools and school districts
with a high percentage of students from low-income
families, and by providing funding for academic
assessment, LEA and school improvement.
$40,000,000
Mr. Morse explained that Title I-A dollars are intended to
improve academic achievement for low-income students. The
funds are given to local school districts.
Item 5 Student and School Achievement
ESEA Title II-D Education Technology Grants will
improve student achievement through the use of
technology in elementary and secondary schools.
$3,210,000
Mr. Morse detailed that Title II-D provides information
technology dollars to improve student achievement.
Item 6 Student and School Achievement
McKinney Vento Homeless Assistance Grants to ensure
that homeless children, including preschoolers and
youth, have equal access to free and appropriate
education.
$328,000
Mr. Morse added that the assistance can be used to ensure
that students who move to different homeless shelters are
able to stay in one school and get tutorial assistance.
Item 7 Student and School Achievement
IDEA [Individual Disabilities Education Act] Part B
(611 and 619) Grants to States, Preschool Grants to
provide services to students with disabilities ages
three through twenty-one who are enrolled in special
education programs. The state will receive the
allocation as a grant and pass-through to LEAs based on
the number of children with disabilities who are
receiving special education and related services.
Funding will also be provided for services to children
with disabilities ages three through five (and
optionally to two-year olds who turn three during the
school year). The state will receive the allocation as
a grant and pass-through to LEAs based on population,
including consideration for the number of children
living in poverty.
$34,300,000
Co-Chair Stedman asked what would happen when the money was
expended. Mr. Morse replied that the programs would go back
to their previous levels, although there are reporting
requirements.
1:48:42 PM
Senator Thomas supported the grants for homeless kids and
noted problems in keeping consistent school records. He
asked if the grants would be used to keep records. Mr. Morse
responded that the intent is to keep disruption to a minimum
for homeless students, so keeping records would be
appropriate use of the money.
Mr. Persily stated that HFIN had discussed whether the state
could mandate by statute how the districts could use the
money. The U.S. Department of Education has said that the
states may not impose direction on school districts. The
House Finance Committee put intent language in the CS
advising districts to look for one-time expenditures with
long-term gains, and not to expect the money to be replaced
with general funds in the future.
1:50:51 PM
In response to a question by Senator Huggins, Mr. Morse
explained that none of the items on the list were in the
governor's proposal for stimulus funds.
Senator Huggins asked how DEED communicates the one-time
nature of the funds to the school districts. Mr. Morse
replied that the districts are asked to sign off on clear
assurances. The U.S. Department of Education used language
that clearly described the one-time nature of the funding.
School districts use grants frequently and understand the
nature of the grants.
Senator Huggins wondered why the state would not want to
receive the stimulus money for education. Ms. Hanrahan
thought it was very important to accept the money. She
emphasized that the services would abruptly end in two years
unless the general fund was used to fund them. She wanted
the public to understand that the money will delay but not
prevent layoffs in the school systems. She stressed the need
for public discussion and legislative oversight. The state
has little control over how the districts spend the funds,
although the state will be held fully accountable.
1:55:40 PM
Senator Huggins asked if the administration could adequately
communicate the concerns to local school districts. Ms.
Hanrahan replied that the communication process had already
begun. The federal OMB office has realized the importance of
the issue and recommended ladder assurances. She stressed
the importance of close scrutiny.
Senator Huggins opined that other states had started the
process with worse financial situations. He thought the
committee understood both the importance of keeping the
operating budget reasonable and the importance of bridge
funding. He thought people competent enough to understand
the meaning of one-time funding. He asked if other states
were wrestling with similar questions. Ms. Hanrahan thought
other states had similar issues. She noted national
conferences looking at ways to minimize risk.
1:58:28 PM
Co-Chair Stedman clarified the amount of the energy dividend
as $1,200.
Mr. Persily noted that the state receives approximately $2.5
billion per year in federal money that is already in the
budget; there are accountability, controls, and auditing on
that money. The House Finance Committee did not think taking
the stimulus funds would cause the school districts undue
trouble. Intent language was placed in the HFIN CS requiring
school districts that receive stimulus money to submit a
letter to DEED signed by the school superintendent and
school board president acknowledging the one-time and
temporary nature of the funds.
Mr. Persily added that certain stimulus funds not expended
will be returned for use by other states. The measure
applies to fiscal stabilization funds (item 8),
transportation dollars, the special education funds, and
some of the unemployment funds.
Co-Chair Hoffman wondered if unaccepted weatherization funds
would be returned. Ms. Hanrahan reported that the energy
money would not necessarily be re-allocated to another
state, according to the attorney general's office. She did
not know if the case was the same for the education money.
Co-Chair Hoffman asked whether other states could use
rejected funds in the same category. Mr. Morse opined that
there would be deadlines for accepting or obligating
stimulus funds, at which point the funds would be
redistributed to other states.
Co-Chair Hoffman queried the process by which the funds were
re-distributed to other states. Mr. Persily replied that the
formula used for the awarded funds would be used for re-
distribution.
2:03:34 PM
Ms. Hanrahan offered to follow up with more information
regarding re-distribution.
Item 8 Student and School Achievement
State Stabilization Funds (base) will be distributed by
the department to LEAs based on their relative share of
funding under Title I-A grants for 2009. LEAs may use
the funds for activities authorized by ESEA, IDEA,
Adult Family Literacy Act, Carl D. Perkins Career and
Technology Act, or for the repair, modernization or
renovation of public school facilities that is
consistent with State law.
$93,043,200
Mr. Morse explained that there were two parts to the fund.
One part is included in the budget item; the other part not
included for $20.7 million was included in the governor's
original request. Item 8 was originally designed to make
sure the state fully restores the level of state support to
school districts and institutions of higher education to
meet the higher of the contributions to the systems in FY08
and FY09. If there is a gap in the funding and money
remains, then the remainder of the dollars would be
distributed to school districts according to the formula
used for Title I funds. For example, if a district gets 19
percent of the state's Title I funds, it would get 19
percent of the $93 million.
Mr. Morse added that school districts are given wide
latitude regarding how the funds are used. He listed
examples, including repair, modernization, and renovation of
public school facilities.
2:06:55 PM
Mr. Persily added that DEED had issued 100 pages of
guidelines for application for the state stabilization
funds, including that school districts can also use the
funds for construction. The Secretary of the U.S. Department
of Education confirmed that states cannot take just part B.
States must take both or neither.
Item 9 Child Nutrition
Temporary Emergency Food Assistance Program will
provide funding for the emergency food assistance
program, allocated as a grant to the State distributing
agency who then distributes to public or private
nonprofit organizations that provide food and nutrition
assistance to the needy.
$100,000
Mr. Persily noted a conflict of interest because he served
on the board of directors of the Food Bank of Alaska. He
also reported that HFIN had put the item in the CS.
2:09:07 PM
Item 10 Child Nutrition
National School Lunch Program Grants provides funding
to the state for National School Lunch Program
equipment assistance in proportion to the State's
administrative expense allocation. In turn, the state
will provide competitive grants to school food
authorities based on the need for equipment assistance
in participating schools. Priority given to schools in
which at least 50% of the students are eligible for
free or reduced priced meals.
$286,000
2:10:00 PM
Item 11 Alaska State Council on the Arts
National Endowment for the Arts Funding to provide an
additional distribution to State Art Agencies. The Arts
Council submitted an application for the additional
funds by the March 13, 2009 deadline.
$300,000
Mr. Morse detailed that the funds would go for grants to
nonprofits, art organizations, or salaries to artist
contracts. The art would be distributed through the council.
He noted that the council is aware of the one-time nature of
the funding.
SB 161 was HEARD and HELD in Committee for further
consideration.
2:10:54 PM
ADJOURNMENT
The meeting was adjourned at 2:10 PM.
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